LEEF Brands Climbs On HIMALAYA
Cannabis company LEEF Brands (LEEF.CN) on Thursday said it entered into an agreement to acquire Standard Holdings, Inc., the parent company of HIMALAYA VAPOR, a California-based cannabis concentrates brand."The acquisition strengthens LEEF's vertical integration strategy by pairing one of California's most efficient cultivation and extraction platforms with a top-tier consumer brand," said the company.LEEF said it will acquire HIMALAYA for around 13.688 million common shares of the company, which includes management incentive shares, and will issue warrants with an aggregate value of US$100,000 priced at C$0.25 per share, representing total consideration of approximately US$2.5 million.It added that, by integrating HIMALAYA into its platform, LEEF expects to immediately improve unit economics by lowering input costs and generate "meaningful" free cash flow from HIMALAYA during its first year of combined operations.Micah Anderson, Chief Executive Officer of LEEF Brands, said: "This is exactly the type of acquisition we are focused on: a premium, authentic brand with strong customer loyalty that we can scale more efficiently through our vertically integrated infrastructure. Having worked with the HIMALAYA team for over five years, we have strong conviction in both the brand and its leadership, which further reinforces our confidence in this partnership. By leveraging low-cost inputs from Salisbury Canyon Ranch, we believe we can significantly improve margins while expanding distribution across California and into new markets over time."Price: $0.22, Change: $+0.01, Percent Change: +4.88%