Canadian cannabis company C21 Investments Inc. plans to acquire Grön Chocolate LLC and Grön Confections LLC, both of which specialize in premium consumer packaged edible cannabis products.
C21 Investments said in an Aug. 13 press release that it will acquire 100% of Grön Chocolate's membership units under the transaction, which is expected to close by Nov. 1. The company will pay Grön unit holders US$6.8 million plus bonus earnout shares of about US$4.4 million. The acquisition will close with cash immediately upon closing of the transaction, and the company said the acquisition will be accretive to its earnings.
"Edibles are one of the fastest growing segments of the cannabis space," said C21 Investments CEO Robert Cheney. "Grön is a critical addition to C21's growth strategy to acquire operations that can vertically integrate in each state and compete aggressively in the US$11 billion cannabis market in the United States."
Vancouver, British Columbia-based C21 Investments has made six other acquisitions in the past year, including Silver State Relief in Nevada, as well as Phantom Farms, Swell Cos. and Eco Firma Farms in Oregon.