48North Cannabis Corp. (TSXV: NRTH) and 2588708 Ontario Inc., also known as Good & Green, announced that the two companies have entered into a definitive agreement for 48North to acquire all issued and outstanding shares of Good & Green for $18,000,000 in 48North common shares. The specific agreement between the two companies is a 100% acquisition of Good & Green common shares for $18,000,000 in 48North common shares with a mutual break fee of $750,000. The acquisition is expected to close on or before November 30th of 2018.
48North’s assets will now include a second producer that is licensed under the Cannabis Act and is now positioned to be one of the largest producers of cannabis with the lowest cost per gram of dried cannabis, cannabis oil, and other products such as cosmetics, beverages, and edibles.
Alison Gordon, Chief Executive Officer of 48North, said, “We are excited to acquire Good & Green, a company that shares our corporate values, strong management, and commitment to financial discipline”. Alison also said that the two licensed facilities puts the company in an optimal position to produce cannabis on a large-scale with low-cost production for the continued demand of cannabis after Canada legalized recreational cannabis on October 17th.
The total production of cannabis in 2019 by 48North is now expected to be a minimum of 45,000kgs with the addition of Good & Green’s 46,000 sq. ft. facility in Ontario and a 100-acre farm that is also located in Ontario.