C21 Investments Inc. said it is buying Grön Chocolate LLC and Grön Confections LLC, an Oregon company specializing in consumer packaged edible cannabis products.
The sale is expected to close by Nov. 1, Vancouver, B.C.-based C21 said in a press release.
“Edibles are one of the fastest growing segments of the cannabis space,” said Robert Cheney, chief executive officer of C21 Investments. “Grön is a critical addition to C21’s growth strategy to acquire operations that can vertically integrate in each state and compete aggressively in the US$11 billion cannabis market in the United States.”
C21 has also recently acquired other cannabis-related businesses, including dispensaries in Nevada and Oregon and growing operations.
“C21 Investments has agreed to invest new capital to expand Grön’s processing, branded products, wholesale and retail distribution operations,” said Christine Smith, founder and CEO of Grön. “With access to new resources, we can expand the Grön brands into other regulated cannabis markets and compete in the national marketplace with our rapidly growing CBD line.”
C21 will pay Grön unit holders $6.8 million plus the bonus earn-out shares of $4.375 million.
C21 (CXXI) was trading at $1.28 Canadian on Tuesday on the Canadian Securities Exchange