PORTLAND: Golden Leaf Holdings acquired 80 percent ownership in Fifth & Root, Inc., a nationally recognized CBD skincare brand based in California.
Fifth & Root is available online at www.fifthandroot.com, and in major retailers including Ulta Beauty, Nordstrom, Anthropologie and Urban Outfitters.
“The acquisition of these distribution channels greatly increases the Company’s visibility and reach, and continues to advance our “Crawl, Walk, Run” strategic approach. As we look forward to the eventual federal legalization of cannabis, Fifth & Root’s commerce platform and partnerships will position the Company favorably to capitalize on the evolving marketplace. Fifth & Root, a leader in CBD beauty, offers an exceptional line of clean and innovative products. We’re thrilled to add them to Golden Leaf Holdings’ portfolio of products and look forward to growing this brand within the burgeoning CBD skincare space,” stated Jeff Yapp, GLH’s CEO.
Fifth & Root Founder and Abstrax CEO Max Koby said, “Golden Leaf Holdings has a long-standing business relationship with Abstrax and has proven they have a skilled management team, who have executed well and effectively expanded their product offerings and markets with a focus on quality. As Golden Leaf continues to expand their footprint, we hope that this new partnership will allow them to provide innovative CBD products nationwide through the largest and best beauty retail partners in the country, to consumers looking for clean beauty products that harness the power of botanicals.”
“We wanted to capture the vibe of the innovative and experiential formulas in the branding and packaging,” said Leilah Mundt, Founder of beauty branding and sales agency, Crème Collective.
“The formulas are bright and alive with sophisticated terpene blends that smell incredible, as well as being a proven delivery system for the active ingredients. Our goal was to mirror this in all brand touchpoints.”
The Company will pay total consideration valued at up to US$1,687,500, consisting of a US$250,000 cash payment paid at closing, and up to 30,666,666 common shares of the Company representing eighty percent ownership.
Ninety percent of the consideration shares were issued at closing and ten percent of the GLH Shares will be issued if certain post-closing targets are met by Fifth & Root. The Company used funds on hand to fund the cash portion of the purchase price.
Based on favorable terms in Fifth & Root’s manufacturing and sales contracts the Company anticipates this business unit will remain working capital neutral as sales grow.
Golden Leaf owns and operates Oregon-based Chalice Farms, a health- and wellness-driven, vertically integrated cannabis business with seven dispensaries in the Portland metropolitan area.