Golden Leaf Holdings announces it has entered into letter of intent to acquire retail chain

PORTLAND, Ore., February 26, 2021 (GLOBE NEWSWIRE) – via InvestorWire – Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) (“Golden Leaf”, “GLH” or the “Company”), a leading consumer-focused cannabis company specializing in retail, production, processing , wholesale and distribution, today announced that it has signed a non-binding letter of intent to acquire a multi-store chain in northwest Oregon. These stores are expected to generate at least $ 10 million in annual revenue (based on unaudited January 2021 results) and have a net operating margin of 11% (unaudited) over the course of fiscal year 2020 (under US GAAP).

“We will announce more details of this transaction upon signing a definitive purchase agreement,” commented John Varghese, executive chairman of Golden Leaf.

The Company currently expects that the consideration for the acquisition will be a combination of cash, common shares and a promissory note. The Company plans to use the funds raised from its current private placement transaction to fund the cash portion of the purchase price of these stores. Closing would be subject to the signing of a definitive purchase agreement and the satisfaction of all conditions hereunder, including applicable regulatory approvals. If a definitive purchase contract is concluded, the Company expects that closing can take place within eight weeks of such execution.

“The acquisition of this chain of stores will be transformative for GLH, as it will further strengthen us as a market leader in Oregon. The company expects this transaction to be profitable at closing as we will realize tremendous synergy with our efforts and current footprint and the introduction of our market leading Chalice branded products, ”said CEO Jeff Yapp.

About Golden Leaf Holdings

Golden Leaf Holdings is a leading consumer-focused cannabis company specializing in production, processing, wholesaling, distribution and retailing, with seven dispensaries in Portland, Oregon. The Company is committed to developing a dynamic portfolio built around the recognized brands of Chalice Farms, with a focus on health and wellness. Markets served include Oregon, California, Nevada and Washington. Visit www.glhmonthly.com for regular updates.

Investor Relations:

Jean Varghese
Executive chairman
Golden Leaf Holdings Ltd.
971-371-2685
[email protected]

Neither the Canadian Securities Exchange nor its regulatory services provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

Disclaimer: This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information includes, without limitation, statements regarding the following: that the Company will enter into a definitive agreement for the acquisition; that the Company will successfully complete the acquisition; that the acquisition will strengthen the strategic plans of the Company; that the acquisition will generate synergies with the Company’s existing operations; that the acquisition will be accretive; how the Company will finance the acquisition; and that the acquired stores will continue to generate at least the revenue and margin that they currently generate. Forward-looking information also includes statements regarding the Company’s future business operations, the opinions or beliefs of management and future business objectives. Generally, forward-looking information can be identified by the use of forward-looking terms such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “expected”. , “Estimates”, “anticipates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of these words and expressions or statements that certain actions, events or results “Could”, “could”, “could”, “could”, “” could “or” will be taken “,” occur “or” be reached “. Forward-looking information is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by this forward-looking information. These risks include, but are not limited to, an inability to negotiate a definitive, mutually acceptable purchase contract or to settle the amount and nature of the purchase consideration; failure to obtain necessary regulatory approvals or to comply with the conditions of closing; the exercise by the counterparties of termination rights; or unforeseen difficulties in integrating operations. These risks also include general business, economic and competitive uncertainties; regulatory risks; market risks; risks inherent in manufacturing and retail operations, such as unforeseen costs and production stoppages; difficulties in maintaining brand loyalty; and other risks of the cannabis industry. Although the Company has attempted to identify important factors which could cause actual results to differ materially from those contained in forward-looking information, other factors may cause results to be unanticipated, estimated or predicted. . There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking information. Forward-looking information is provided herein for the purpose of presenting information about management’s current expectations regarding the future, and readers are cautioned that such information may not be appropriate for other purposes. The Company does not undertake to update forward-looking information, except in accordance with applicable securities laws. This press release does not constitute an offer to sell any securities in the United States, and such securities may not be offered or sold in the United States without registration or exemption from registration.

Business communication :

Investor Brand Network (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
[email protected]

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