Toronto, Ontario--(Newsfile Corp. - September 3, 2020) - SLANG Worldwide Inc. (CNSX: SLNG) ("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 acquired the licensed cannabis producer and distributor, Peoria Partners LLC ("Peoria"). Peoria is the state-licensed manufacturer and distributor of SLANG's District Edibles brand in Colorado. The Company intends to continue to use Peoria's Denver facilities for the manufacture of District Edibles and for the distribution of the full suite of SLANG-branded products within Colorado.
"This is one of the planned acquisitions that allow us to consolidate our supply chain in Colorado," said SLANG President & CEO Chris Driessen. "Owning a licensed cannabis facility capable of manufacturing and distributing cannabis-infused SLANG products immediately opens up new opportunities for us, including the ability to capture greater top-line revenue and more favorable unit economics."
The purchase of Peoria marks a significant milestone in SLANG's strategy of consolidating its supply chain in Colorado. The Company announced last month that the Colorado Department of Revenue's Marijuana Enforcement Division had approved its application for suitability. That approval allows the Company to own "plant-touching" operations such as manufacturing and distribution facilities. The Company is working to complete other proposed acquisitions in Colorado.
The Company anticipates that consolidation of its Colorado supply chain will deliver several benefits, including increased revenue and gross profit per unit sold, greater control over production and distribution planning, improved efficiency across the organization and a strengthening of its leadership position in the state.
As previously disclosed in the Company's financial filings, the Company entered into an agreement with Peoria and its unitholders in February 2020 to acquire Peoria for non-material cash consideration.
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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. 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 potential consolidation of entities in the Company's Colorado supply chain and the expected benefits of such consolidation.
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.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.