Golden Leaf Holdings Announces Termination of Agreement to Acquire the Assets of Tahoe Hydroponics
4:59 pm ET January 16, 2019 (Globe Newswire) Print
Golden Leaf Holdings Ltd. ("Golden Leaf" or the "Company") (CSE:GLH) (OTCQB:GLDFF), a cannabis company with cultivation, production and retail operations built around recognized brands, today announced that the Company and Tahoe Hydroponics Company ("Tahoe") have mutually agreed to terminate the definitive agreement ("Agreement") for the Company to acquire the assets of both Tahoe and its related company, 11T, Inc., a California corporation. The agreement was originally announced on August 13, 2018.
Bill Kulczycki, President and CEO of Golden Leaf said "Concurrent with the start of my tenure at GLH, we kept running into challenges and further delays in obtaining regulatory approvals in Nevada. These delays and related impacts affected the return profile and value proposition of the acquisition for GLH. Both parties decided that committing the Company's available capital without a retail footprint changed the risk-return analysis enough that the desired shareholder return would not be achieved. While both parties are disappointed with this outcome, we are parting ways with mutual respect intact."
Bill also added "As the new President and CEO of Golden Leaf, I want to ensure that the Company strategically invests its available capital to achieve sustainable positive cash flow and growth. We are currently looking at opportunities that fit our strategic vision in an appropriate order of priority, balanced between assessments of risk and cash flow returns that drive shareholder value creation. My immediate focus for Golden Leaf is one of disciplined growth with the goal of achieving profitability in the near term."
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About Golden Leaf Holdings
Golden Leaf Holdings Ltd. is a Canadian company with operations in multiple jurisdictions including Oregon, Nevada, and Canada, with cultivation, production and retail operations built around recognized brands. Golden Leaf distributes its products through its branded Chalice Farms retail dispensaries, as well as through third-party dispensaries. Golden Leaf's cannabis retail operations and products are designed with the customer in mind, focused on superlative in-store experience and quality products. Visit goldenleafholdings.com to learn more.
