- Golden Leaf Holding has signed a definitive agreement to acquire cannabis extractor, Tozmoz
- The company has been working with Tozmoz for some time, and will integrate its capabilities with its own
- Tozmoz will continue to receive income from third-party white-label processing
- The deal is valued at $3.7 million
- Golden Leaf shares are up 25% to $0.025, with a market cap of $20.4 million
Chalice Farms operator, Golden Leaf Holdings (GLH), has signed a definitive agreement for its wholly owned subsidiary, TZ Acquisition Inc., to acquire cannabis extractor Tozmoz, LLC.
Oregon-based Tozmoz, founded in 2015, is one of the states first Oregon Liquor Control Commission (OLCC) licensed cannabis extractors, and offer a variety of extraction processes; including CO2, hydrocarbon and ethanol.
“We have been working with Tozmoz for years now and this acquisition fits squarely into our product-focused business strategy,” said Golden Leaf Holdings CEO, Jeff Yapp.
“The core of this business is about the highest quality products on the market, like our Elysium Fields line of live resin cartridges and tinctures and our recently launched Chalice Farms RXO lines. This acquisition will allow us to take what we’ve been doing well, and continue to build and further expand our diverse portfolio of products. In our ‘crawl, walk, run’ model of business development, we believe Tozmoz is at the ‘run’ stage.”
According to the agreement, Golden Leaf will purchase Tozmoz for approximately $3.7 million, which will include 29,166,667 shares in Golden Leaf at $0.079 each.
Tozmoz will continue to serve and receive income from third-party white-label processing, with the company’s attractive margins to be earned by Golden Leaf. Tozmoz has also contributed to product development for Golden Leaf in the past, and will integrate with its new owner’s product research and development capabilities.
“Golden Leaf Holdings and Chalice Farms have become part of the fabric of the Oregon cannabis market, and we are excited to continue to innovate with them and provide the market with amazing new products,” said Joel Klobas, co-founder of Tozmoz.
The formal closing of the acquisition is expected soon, although dependent on the change of ownership approval by the OLCC.
Golden Leaf shares are up 25% to $0.025, with a market cap of $20.4 million.