Icanic Brands, a Canadian firm that offers marijuana products in California and Nevada, is acquiring a California extraction company for $120 million.
The extraction company, Leef Holdings, extracts and distributes CBD concentrates in Willits, California. The company also has an edibles production line.
Under the terms of the definitive agreement, Icanic will acquire all of Leef’s stock for at least $120 million or more based on two times Leef’s revenue for a 12-month period ended Sept. 30, 2021.
The acquisition is expected to be completed before March 31, depending on approvals by regulators and Leef shareholders.
Leef is building out a 45,000-square-foot processing facility and recently received a permit for a 186.7-acre cultivation site in California, the companies said in the acquisition announcement.
Leef owns and operates Leef Organics, Heady and Paleo Paw brands and has an option to purchase the Real Deal Resin brand.
Icanic’s brand portfolio includes GanjaGold and Taylor’s.
The Vancouver, British Columbia-based company trades on the Canadian Securities Exchange under ICAN, and on the U.S. over-the-counter markets as ICNAF.