Green Growth Brands to combine with MXY Holdings in $310M transaction
Green Growth Brands announced that it has entered into a securities acquisition and contribution agreement, dated as of July 8, 2019, with, among others, MXY Holdings under which a new Ontario limited partnership, of which GGB will be the general partner, will acquire the operating companies of GGB and the issued and outstanding units of Moxie, an arm's length third party, in an all-equity interest transaction. As part of the Transaction, GGB will also be directly acquiring shares of MXY C, and MXY , Delaware entities within the Moxie structure, and interests in two entities, PurePenn LLC and Pure CA, LLC, with which Moxie has current acquisition agreements. The equity purchase price of the Transaction is $310M, and will be satisfied through the issuance of either GGB Common Shares or Exchangeable LP Units. The combination of Moxie and GGB would create one of the first cannabis companies to provide consumers a comprehensive product offering, including both CBD and tetrahydrocannabinol product lines and distribution that runs from mainstream retail to cannabis dispensaries, all led by management with decades of expertise and credibility.