Golden Leaf Holdings Ltd. and Tahoe Hydroponics Co. LLC terminated their merger agreement due regulatory challenges in Nevada, among other issues.
Under the terminated deal, the Toronto-based Golden Leaf, a provider of cannabis oil and flower products, would have acquired Tahoe Hydroponics, along with its related company 11T Inc., for about C$33 million.
The transaction, which was to fully close before the end of 2018, was expected to provide Golden Leaf a premium cultivation operation as well as retail locations in Nevada and California.
Golden Leaf President and CEO Bill Kulczycki said the company kept running into challenges and further delays in obtaining regulatory approvals in Nevada. He added that committing Golden Leaf's available capital without a retail footprint would not produce the desired shareholder return.
The company had also backed out of a merger with Irvine, Calif.-based cannabis producer Terra Tech Corp. in December 2018.