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Be the first with the news that moves the market- Nutritional High (CSE:EAT) has signed a binding agreement to acquire Colorado-based Palo Verde LLC
- Palo Verde is a manufacturer of cannabis-based vape and edible products for both recreational and medicinal markets
- Consideration for the acquisition has not been disclosed, but is expected to include the assumption of debt and a nominal cash amount
- While Nutritional High saw a spike in sales during March, continued social distancing measures have resulted in a recent drop
- Nutritional High (EAT) is currently up 25 per cent, with shares trading at 2.5 cents and a market cap of C$9.74 million
Nutritional High (CSE:EAT) has signed a binding agreement to acquire Colorado-based Palo Verde LLC.
Under its award-winning FLÏ brand, Palo Verde manufactures a range of cannabis-based vape and edible products. These include vape cartridges, syringes, chocolate edibles and infused pre-rolls for both the recreational and medicinal markets.
Recent regulatory and legislative changes now allow publicly-traded companies to directly own licensed cannabis businesses in Colorado, subject to approval from the Colorado Marijuana Enforcement Division (MED) and local licensing authorities.
As such, the acquisition agreement was signed on May 15, 2020, and submitted to the MED for review.
While no consideration for the acquisition was disclosed in today’s announcement, it’s expected that the deal will include the assumption of debt and a nominal cash amount.
Nutritional High said that further details will be provided following approval from the MED and closing of the transaction.
John Durfy, CEO of Nutritional High, said the acquisition of Palo Verde represents a significant milestone in the roll-out of the company’s branded manufacturing strategy.
“We look forward to working with the team at Palo Verde to grow the business in Colorado and leverage their experience in other markets where we operate,” he said.
Nutritional High’s designation as an essential service has allowed it to maintain a relatively normal level of operation throughout the ongoing COVID-19 pandemic.
However, while sales saw a spike during March, retail activity has dropped off since then as a result of continued social distancing measures.
The company also noted that no product shortages have been reported to date, and that management continues to closely monitor the state of Nutritional High’s supply chain.
Nutritional High (EAT) is currently up 25 per cent, with shares trading for 2.5 cents at 2:08pm EDT.
