Toronto, Ontario--(Newsfile Corp. - May 4, 2020) - SLANG Worldwide Inc. (CNSX: SLNG) (FSE: 84S) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods company with a diversified portfolio of popular brands, today announced that it has completed the acquisition (the "Acquisition") of Cultivate Brands Corp. ("Cultivate").
As SLANG previously announced in its news release issued March 3, 2020, Cultivate is a privately-owned company with a portfolio of brands and other intellectual property which are complementary to SLANG's portfolio. Its assets include extraction equipment and other machinery which SLANG intends to use within its network, cash of approximately CAD $4 million, and a strategic investment in a company within the cannabis industry supply chain. Cultivate is not currently consuming any cash in its operations and its liabilities and commitments are not material.
The Acquisition was completed by way of three-cornered amalgamation pursuant to which 1241306 B.C. Ltd., a wholly-owned subsidiary of SLANG, amalgamated with Cultivate to form a newly amalgamated company ("Amalco") which shall operate under the name "Cultivate Brands Corp." as a wholly-owned subsidiary of the Company. Pursuant to the Acquisition, SLANG has issued 25,996,722 common shares ("SLANG Shares") to shareholders of Cultivate (the "Cultivate Shareholders") in exchange for all the issued and outstanding shares of Cultivate. In addition, SLANG has issued an aggregate of 1,418,181 SLANG Shares to certain officers of Cultivate as a change of control payment pursuant to the terms of existing agreements and has assumed options to purchase 122,000 SLANG Shares at an exercise price of $0.41.
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 Frankfurt Stock Exchange under the trading symbol 84S. For more information, please visit www.slangww.com.
For further information:
SLANG Media Inquiries: Media@SLANGWorldwide.co
SLANG Investor Inquiries: Investors@SLANGworldwide.co
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 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, risks related to the COVID-19 global pandemic, 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, 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, 2018 and nine months ended September 30, 2019, 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.