Green Growth Brands, Inc. (OTC: GGBXF) will enter the medical marijuana market in Florida through the acquisition of Spring Oaks Greenhouses.
Green Growth Brands will pay a consideration of around $54.65 million for all outstanding shares of Spring Oaks. The transaction will involve $26.15 million in cash, the issuance of $17.10 million worth of stock, and a convertible secured promissory note of $11.40 million.
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Why It's Important
Spring Oaks Greenhouses has a medical marijuana dispensary license and an authorization to operate as a medical marijuana treatment center in Florida. The dispensary license allows it to start production, processing and selling medical cannabis and cannabis products.
Spring Oaks has the right to open up to 35 dispensaries across the state, with a potential to increase this number to 40 once the Florida medical marijuana program surpasses 300,000 patients.
Green Growth Brands CEO Peter Horvath said in a statement that entering the Florida medical marijuana market through the acquisition of Spring Oaks will be a great expansion to the company's operations in Nevada and Massachusetts and its nation-wide CBD business.
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