SAN JOSE, Calif., Oct. 4, 2021 /PRESS RELEASE/ - TPCO Holding Corp. today announced that it has signed definitive agreements to acquire 100% of the equity of Coastal Holding Company LLC, a California retail dispensary and delivery operator for $16.2 million in cash with contingent consideration of up to $40 million in equity of The Parent Company upon completion of milestone events and a $9 million option to acquire the remaining equity of a southern California dispensary that Coastal currently holds a minority interest in, as described in more detail below. Completion of the transactions contemplated by the Agreements remains subject to regulatory approvals, including approval of the NEO Exchange, and are expected to close in 2022.
Founded in 2018 in Santa Barbara, Coastal is a retail dispensary license holder and operator with six retail licensed locations with five locations currently operating and two delivery depots. Coastal's operating dispensaries are located in Santa Barbara, Pasadena, West Los Angeles, Stockton and Vallejo. Coastal is also engaged in construction for another retail license location in Northern California and operating delivery depots in Santa Barbara and San Luis Obispo. Coastal serves over 1,000 people per day, in their stores and online at www.coastalcalifornia.com
Upon completion, the acquisition of Coastal will increase The Parent Company's current California retail store and delivery depot footprints to eleven and six, respectively, and positions the Company with the second largest operating retail dispensary and delivery hub in the State with an expanded reach to over 80% of California's population.
"I am thrilled to add Coastal to our expanding retail network," said Troy Datcher, Chief Executive Officer of The Parent Company. "With strategically positioned locations in high-traffic, densely populated regions, Coastal enables us to significantly increase our reach to a broader potential audience of consumers with both in-person retail and delivery options. In just over 4 months, we have more than tripled our operating retail stores in California."
Mr. Datcher added, "As we continue to extend our reach in California, our focus remains on providing our customers with the exceptional product selection and retail experiences they have come to expect from us. I look forward to welcoming and working with the Coastal team and introducing their customers to our convenient in-store, delivery, and mobile app shopping options and full suite of high-quality brands."
