Vancouver's Next Green Wave Holdings Inc. agreed to acquire California-based cannabis consumer products company SDC Ventures LLC.
The deal, which will be made through Next Green Wave unit Crossgate Capital US Holdings Corp., is worth up to US$20.6 million in cash, shares and performance shares.
The consideration comprises payments of US$600,000 on closing; US$4 million on transfer of rights and titles of assets of SDC; US$750,000 to a maximum of US$6 million on reassignment of each of the eight partnership deals; US$5 million on achieving net sales targets in the first year after closing; and US$5 million for reaching sales targets in the second year after closing.
SDC sells 45 cannabidiol and tetrahydrocannabinol products under eight cannabis brands and operates 700 Zumiez brand stores.
Next Green Wave CEO Leigh Hughes said the deal gives his company an array of brands plus increased distribution with revenues from sales, along with direct-to-consumer reach, relationships and specialty extraction methods.
Hybrid Financial Services of Toronto, Ontario is the investor relations consultant for Next Green Wave.