On Thursday, August 16th, 2018, Golden Leaf Holdings Ltd. (OTC:GLDFF) announced that it signed an agreement to acquire a unique ‘combined license’ in the City of San Jose, California. The license and similar assets will be acquired through the purchase of Tahoe Hydroponics Company LLC and 11T Corporation.
In the acquisition, Green Leaf Holdings will also acquire “certain assets from the seller including cash, inventory, equipment and contractual rights for US$7,146,582. This also includes a ~28,800 sq. ft. facility already under construction, in Sacramento.
The ‘combined license’ will include cultivation, production, and retail of marijuana. These special licenses are referred to as “Sweet 16 Licenses” because there are only 16 total in the City of San Jose. This strategic licensing will allow Golden Leaf Holdings to tap into the already booming cannabis market in California.
Green Leaf Holdings already has existing operations in Canada, Oregon, and Nevada where they sell to third-party dispensaries or sell through their branded retail dispensaries, Chalice Farms.
It is apparent that Green Leaf Holdings, and many other cannabis industry players, see a lot of potential still in the California market.
William Simpson, the CEO of Green Leaf Holdings, says their plan to acquire said assets before their move to California is aimed to “swiftly position [them] for this market.”
He also mentioned that by “adding production and retail licenses complements our entry into California in a meaningful way.” Simpson also adds that his team is already diligently working on the intricate production and supply chain necessary to compete in the California cannabis market.
On a positive note, Simpson also adds that they “expect [they] will generate revenues in a relatively short period of time from the date of closing.”