Icanic Brands Company, Inc. (CSE:ICAN) (OTCQB: ICNAF), a multistate cannabis operator in California and Nevada, announced it has entered into a definitive agreement to acquire California extraction company LEEF Holdings for $120 million.
LEEF, one of the largest cannabis extraction companies in California, is also a leading provider of bulk concentrates and is led by an expert group of legacy operators with decades of experience in organic soil-based farming and sophisticated extraction practices.
“Today represents a huge milestone for Icanic. Our ability to come together as one with an amazing company like LEEF will only further enhance our position in the market," said Brandon Kou, CEO of Icanic Brands. "Micah and the rest of the team have done an amazing job building one of the leaders in the California market and we couldn’t be prouder to call them our partners.”
Micah Anderson, CEO of LEEF, is equally excited about taking LEEF into the next stage of its development.
“We look forward to continuing to build significant shareholder value for many years to come. It’s because of the relentless hard work of LEEF’s employees that we have found ourselves at what I believe is the starting point to the next chapter. I have been in the cannabis industry for many years and, along with the other founding partners of LEEF, have devoted our entire lives to building our company,” Anderson said.
Headquartered in Willits, California, LEEF’s manufacturing capabilities include a 12,000-square-foot, state of the art extraction and manufacturing facility with up to 45 tons of biomass throughput per month and up to 3,000 liters of distillate extraction capability per month.
The Merger Terms: Under the terms of the agreement, Icanic will acquire all of Leef’s stock for at least $120 million or more based on two times Leef’s revenue for a 12-month period ended Sept. 30, 2021, according to a news release.
The acquisition is anticipated to be completed during the first quarter of 2022, subject to customary closing conditions, regulations and approval of LEEF shareholders.
Financial And Legal Advisors: McMillan LLP is acting as legal counsel to Icanic Brands. Bayline Capital Partners is acting as financial advisor and Cassels Brock & Blackwell LLP and Jackson Tidus is acting as legal counsel to LEEF.
