TORONTO, Sept. 17, 2019 /CNW/ - PRESS RELEASE - SLANG Worldwide Inc., a global cannabis consumer packaged goods (CPG) company, has announced it has accepted an investment from Bruce Linton, co-founder of Canopy Growth Corporation. This investment reinforces the existing relationship between SLANG leadership and Linton, as well as the company's vision for the future of SLANG's CPG-based cannabis business model, which offers a highly diversified portfolio of brands with coverage across every major product vertical.
"We are pleased to announce Bruce Linton's investment in SLANG, which represents a vote of confidence in the fundamental strengths of the SLANG business model. His experience in building the world's largest cannabis company, while creating billions of dollars in shareholder value, will be very valuable to our team and shareholders," said SLANG Worldwide CEO Peter Miller.
SLANG Worldwide owns a diverse portfolio of leading branded products and has a presence in 12 states in the U.S., with products available in over 2,600 retail stores. To date, consumers have purchased over $350 million of SLANG products (Gross Merchandise Value).
SLANG's dedicated focus on brands is a differentiated, capital-light model, which management believes is one of the most scalable and capital-efficient strategies in the regulated cannabis industry. As an investor, Linton's support will be instrumental as the company continues to expand its portfolio of branded products, enter new markets and broaden its footprint in existing markets.
"Smart, hard-working and ethical are the core attributes that shine through over the years with the team at SLANG. I appreciate the opportunities they have ahead and am pleased to show my confidence in their ability to execute," stated Linton.
Pursuant to the terms of the investment, Linton has, through an affiliate, purchased 347,222 units of SLANG at a price of $0.72 per Unit. Each unit is comprised of one common share of SLANG and one common share purchase warrant. Each warrant is exercisable at a price of $0.89 and expires on Sept. 17, 2024. All securities issued pursuant to the Investment are subject to a statutory hold period expiring on Jan. 18, 2020. In addition, the purchaser has agreed to a customary lock-up pursuant to which it will not, directly or indirectly, offer, sell, transfer or otherwise dispose or deal with any of the securities of SLANG for a period of one year.
