- Chalice Brands Ltd. (CHAL) has signed an amending agreement to acquire four retail stores from Acreage Holdings for US$6.5 million
- It will acquire the locations through a combined payment of an initial US$250,000 and an additional US$100,000 in cash at closing
- The company will pay the remaining balance of US$5.85 million over a three-year secured promissory note with a yearly interest rate of 12 per cent
- This acquisition brings Chalice’s retail locations in Oregon to a total of 18 storefronts
- Chalice Brands Ltd. (CHAL) is unchanged trading at $0.22 per share as of 2:09 p.m. ET
Chalice Brands (CHAL), has signed an amending agreement to acquire four retail stores from Acreage Holdings Inc. for US$6.5 million
Chalice Brands stated it will acquire the branded Cannabliss & Co. locations through an initial payment of US$250,000 and an additional US$100,000 cash payment at closing.
The company will pay the remaining balance of US$5.85 million through a three-year secured promissory note with a yearly interest rate of 12 per cent.
Chalice Brands will make the payment tranches as follows:
- US$1 million on January 1, 2024
- US$1 million on January 1, 2025
- Pay all reaming amounts owed to Acreage under this note, if any, on January 1, 2026
This acquisition brings Chalice’s retail count in Oregon to 18 storefronts.
“Amending the original transaction allows us to better match the considerations to be paid with the expected cashflows of Cannabliss… an important step as we continue to increase our presence in Oregon and refine the performance of Cannabliss’ stores under the guidance of our leadership team,” Jeff Yapp, President and CEO of Chalice Brands, said.
The closing for the amended transaction is still subject to approval by the Oregon Liquor and Cannabis Commission, which is expected in the next month, among other conditions.
“As stores struggle to stand out in today’s increasingly competitive market, bringing Chalice Farms’ quality standards to more dispensaries makes the industry as a whole, better and more established… we increase the visibility of our commitment to the plant, planet, and people,” Meghan Miller, COO of Chalice Brands, said.
Chalice Brands Ltd. (CHAL) is unchanged trading at $0.22 per share as of 2:09 p.m. ET.