Green Growth Brands (OTCQB: GGBXF) announced that it has entered a definitive agreement to fully acquire Spring Oaks Greenhouses, Inc. for an approximate $54,650,000. Green Growth has effectively entered into the Florida medical cannabis market with this acquisition. Spring Oaks has a medical cannabis dispensary license as well as the authorization necessary to operate a medical cannabis treatment center in Florida. One medical cannabis dispensary license for Florida allows for up to 35 medical cannabis dispensaries and an additional 5 more dispensaries after the total medical cannabis program patient count reaches and exceeds over 300,000 patients.
Peter Horvath, Chief Executive Officer of Green Growth Brands, stated: “Entering Florida through the Spring Oaks acquisition will be a great addition to our existing MSO presence in Nevada and Massachusetts, as well as to our CBD business that already has a national presence. We admire several of the existing operators in the state and Florida is a special market, with favorable financials implications for the best operators. We look forward to quickly scaling our operations in the state and bringing our expertise to every patient.
The acquisition is expected to be completed by sometime in August of this year after it receives the necessary approval by regulatory agencies, meets customary closing conditions, and after a level of satisfaction is met with the due diligence performed by Green Growth Brands on Spring Oaks. A closing fee from Green Growth to the tune of $500,000 will be paid to Jeremy Giles for services rendered that resulted in the acquisition of Spring Oaks.
As a part of this acquisition announcement, Green Growth announced that it has mutually agreed with the involved parties to not move forward on a previously announced acquisition of ZLJT LLC and Arizona Natural Pain Solutions (Desert Rose). As per the definitive acquisition agreement terms, no entity is responsible to pay any amount for the termination of the agreement.
“Desert Rose is a well-run operation. However, we have made the strategic decision to turn our focus to Florida, where we believe we can grow our presence and brand recognition across the state at scale, said Horvath.
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