Toronto, Ontario--(Newsfile Corp. - October 1, 2020) - SLANG Worldwide Inc. (CNSX: SLNG), (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today announced that it has completed its previously announced acquisition (the "Transaction") of LBA Global Corporation ("LBA") and its Lunchbox Alchemy ("Lunchbox") brand portfolio and subsidiary Lunchbox Distribution.
The Transaction is expected to bolster SLANG's position in Oregon by adding a complementary portfolio of top-selling products along with robust cannabis extraction, manufacturing and distribution capabilities. The establishment of an integrated operation is expected to generate increased revenues and gross profit in Oregon, which the Company considers to be a core market.
"LBA satisfies several key strategic objectives for us, beyond the addition of some great brands to our portfolio," said SLANG President & CEO Chris Driessen. "Our strategy in core markets like Oregon is to consolidate our supply chain and establish a fully integrated, wholesale operation to capture greater unit economics. With this acquisition, we now have an experienced team on the ground, an advanced manufacturing facility and a thriving distribution business, all of which will serve as a platform for long-term growth."
Founded in 2014, LBA is the owner of the award-winning Lunchbox Alchemy portfolio of cannabis brands, which has been recognized for its innovations in cannabis-infused edibles and concentrate production. Today, LBA owns and manufactures gummies and hard candies that have consistently ranked among the top sellers in their respective categories in Oregon over the past several years, according to BDSA. LBA also owns a CBD-infused product line that is currently available in more than 500 retail stores in 45 states across the U.S.
SLANG intends to leverage LBA's infrastructure, experience and industry relationships to enhance its capabilities and market position in Oregon. Lunchbox Distribution is one of the largest cannabis distributors in the state and distributes Lunchbox products along with other selected third-party brands to 382 dispensaries across Oregon, representing approximately 62% dispensary penetration.
"We are very excited to become part of the SLANG team. After working closely together over the past year, we are more confident than ever in the strategic fit and the path forward," said LBA CEO Eric Plantenberg. "Our local infrastructure and customer relationships plus SLANG's national footprint and proven experience growing brands is a winning combination that will add value for both companies."
Under the terms of the Transaction, SLANG issued 23,913,043 restricted voting shares to the former owners of privately-held LBA in exchange for all equity interest in LBA and its subsidiaries.
The Oregon market generated total retail sales in excess of $800 million USD in 2019, and grew by 39% in the first seven months of 2020 compared to the same period last year, according to BDSA. With the addition of Lunchbox to its existing brands such as O.penVAPE and Bakked, SLANG-branded products have recently ranked among the top 10 sellers in the edibles and vape categories. The Company has also entered the flower category in Oregon through a strategic partnership with Cookies.
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About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a global leader in the cannabis CPG sector with a diversified portfolio of popular brands distributed across the United States. The Company specializes in acquiring and developing market-proven regional brands as well as launching innovative new brands to seize global market opportunities. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG and on the OTCQB under the symbol SLGWF. For more information, please visit www.slangww.com.
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this news release include, but are not limited to, statements regarding the Company's prospects in Oregon.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to the COVID-19 global pandemic, changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's final long form prospectus dated January 17, 2019 and "Risks and Uncertainties" in the management discussion and analysis for the year ended December 31, 2019 and six months ended June 30, 2020, each as filed on SEDAR at www.sedar.com. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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