Staff
The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF) is buying Galaxie Brands Corporation in a deal valued at C$21 million. the deal is expected to close near November 15. Galaxie is a licensed producer focused on product innovation, branding, and manufacturing 2.0 products. The company creates and produces a range of products including premium cannabis edibles, infused pre-rolls, flavored and full melt vapes, oils, and solventless products. It also provides manufacturing and product development services to partners across Canada.
TGOD said the acquisition will give the company improved regional distribution across Canada, providing product expansion capabilities into British Columbia for TGOD’s products and Highly Dutch brands. On the other side, Galaxie’s Cruuzy brand will get better access into Quebec, which is made for emerging cannabis enthusiasts.
The combined entity will leverage TGOD’s unique quality organic platform and cultivation capabilities and Galaxie’s differentiated infused pre-rolls and full melt vapes. The product portfolio will expand from 157 to 215 listings across Canada and key product innovations will be deployed across all brands.
“We are excited to continue to execute on our growth plans. The acquisition of Galaxie will allow TGOD to expand by increasing scale, innovation, and operating capabilities, with the addition of exciting brands in Canada. We believe our complementary brands and consumer bases will result in stronger revenues and overall financial performance for TGOD, while preparing for a future expansion to the U.S.” said Sean Bovingdon, CEO and interim CFO of TGOD. “We look forward to leveraging Galaxie’s multiple strategic partnerships and welcome Galaxie’s talent to the TGOD team,” added Bovingdon.
“We are thrilled to join the TGOD team. We believe this transaction will accelerate our growth plans and expand our product portfolios and operations. Beyond complementary brands and products, we share with the TGOD team a focus on environmental stewardship, social responsibility, and sound governance. Olivier Dufourmantelle and I are proud of the strong team we have assembled at Galaxie, and we look forward to help bring value for the combined entity,” commented Footman.
Transaction Details
TGOD said it will also assume $1.3 million of existing shareholder loans of Galaxie, which are non-interest bearing until at least January 31, 2022. The vendors of the Galaxie Shares are also entitled to earn up to C$15 million in additional shares of TGOD, subject to the achievement of certain financial milestones by December 31, 2022.
