PORTLAND, Ore., April 21, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Chalice Brands Ltd., a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, has announced the signing of definitive agreements and services agreements to acquire two retail stores located in Bend and Corvallis, Ore., from Miracle Greens, Inc and two outdoor cultivation assets in Grants Pass, Ore., from Totem Farms, LLC for total consideration of US$2.63 million. The closing of the transaction is subject to approval by the Oregon Liquor and Cannabis Commission (OLCC) and the satisfaction of other closing conditions.
“We are very excited to be able to serve the Bend and Corvallis communities as Chalice’s retail footprint expands to a total of 18 stores owned and managed in Oregon. This transaction is crucial to support our scale and strengthen our vertically integrated operations as we continue to elevate our brand presence on the west coast. Our team is energized to provide best-in-class product offerings and retail experiences as we execute on our collective vision of providing consumers with the next generation of plant-based medicines. We look forward to further capitalizing on significant expansion opportunities in the market as the pathway to full U.S. federal legalization gains momentum,” said Jeff Yapp, president and chief executive officer of Chalice Brands.
- Under the terms of the agreements, Chalice will acquire 100% of the assets of two retail dispensaries from Miracle Greens located in Bend and Corvallis, Ore., and two outdoor cultivation assets from Totem Farms located in Grants Pass, Ore., for total consideration of US$2.63 million. Totem Farms, LLC’s, assets are being purchased for US$563,587 and Miracle Greens Inc.’s assets are being purchased for US$2,063,999.
- The purchase price will be paid 50% in cash due at closing, US$1,313,793, and the balance equally split between equity and a promissory note to be paid over 54 months at 8% interest (US$656,896.50 respectively) with each being prorated based on the purchase price of the entity’s assets.
- Upon signing, Chalice contracts to operate the Miracle Greens retail stores including staffing, pricing, and procurement, and the Totem Farms cultivation assets pending regulatory approval.
- Miracle Greens retail stores are expected to carry Chalice Brands products immediately upon commencement of services agreements, providing the opportunity to broaden the quantities and varieties of flower available to the existing footprint.
- Cultivation assets located in Grants Pass, Ore., will expand the quantities and varieties of flower available to the existing Chalice footprint and more than doubles our capacity by adding approximately 3,000 lbs. of additional capacity to current greenhouse grow, located at Bald Peak, which has approximately 2,500 lbs. annual capacity.
“I am thrilled to have Totem Farms become part of Chalice Brands. Totem gives us our first two premier outdoor grows in Southern Oregon, one of the best locations for growing in the country,” commented Meghan Miller, chief operating officer of Chalice Brands.
“We are pleased to have completed the accretive transaction of Totem Farms and Miracle Greens to expand Chalice’s retail presence and cultivation capacity to bolster our market share in the Oregon cannabis market. Our growth strategy through opportunistic consolidation will provide accelerated revenue contribution and improve margins to drive shareholder value. The company will remain disciplined with our capital allocation strategy to support our long-term vision as a premier multi-state operator,” noted John Varghese, executive chairman of Chalice Brands.