- Arbor Pacific's portfolio of branded consumer products spans the Vaporizer, Flower, and CBD categories
- Avitas and Hellavated brands include three of the top ten best-selling vape products in Washington
- SLANG to distribute new brands across its existing distribution network while adding Washington as the 12th U.S. state in its footprint
TORONTO, April 16, 2019 /CNW/ - SLANG Worldwide Inc. (CNSX: SLNG), ("SLANG" or the "Company"), a global cannabis consumer packaged goods ("CPG") company, announced it has entered into an agreement to acquire Arbor Pacific, Inc. ("Arbor"). Upon completion, the proposed transaction (the "Transaction") will further bolster SLANG's brand portfolio through the acquisition of both the Avitas and Hellavated brands, as well as expand SLANG's distribution footprint into the Washington market.
Founded in 2012, Arbor Pacific, Inc. is a leading producer of branded cannabis products. Arbor's product portfolio includes a mix of branded offerings that span the Vaporizer, Flower, and CBD product categories. Its Avitas and Hellavated brands are among the highest selling cannabis brands in the Pacific Northwest, with multiple products regularly listed among the top 10 best-selling vape SKUs in Washington state, according to Headset. These high-performing brands will complement SLANG's existing portfolio which includes a variety of category-leading products sold in multiple other U.S. states.
Arbor products are currently available in more than 200 dispensaries in its home state of Washington, which is estimated to be the third largest cannabis market in the U.S. with US$1.4 billion of total sales in 2019 (source: Cormark Securities). Arbor products are also distributed in Oregon, Colorado and Alaska, and it expects to enter the Canadian market by the fall of 2019 through a previously announced licensing agreement with 48North Cannabis Corp.
SLANG intends to use Arbor's supply chain platform to further expand the distribution of the Company's brand portfolio into Washington and other key distribution channels in existing markets. With the addition of Washington, SLANG products would be distributed in 12 U.S. states. SLANG will also pursue opportunities to sell Arbor products throughout is existing distribution network.
"We're incredibly excited to welcome the Arbor Pacific team to the SLANG family. Our team has been thoroughly impressed by Arbor's ability to develop brands that uniquely appeal to consumers in the Pacific Northwest, as well as establish a scalable network of manufacturing and distribution assets across the region," said SLANG co-founder and CEO Peter Miller. "SLANG's growth strategy includes adding leading brands to our portfolio and expanding our distribution network; joining forces with Arbor achieves both goals."
Post-transaction, Arbor will continue to be led by co-founder and CEO Adam Smith, who, prior to founding Arbor, served as Vice President of Global Digital Business Operations at Disney's ESPN.
Arbor Pacific CEO Adam Smith said: "SLANG has a solid strategic vision, a brand-first consumer product strategy, and a strong, experienced executive team to turn that vision into reality. By assembling a portfolio of the best brands in the world and a low capital cost expansion model, SLANG reaches customers worldwide with the most accessible and consistently high-quality products. We are excited to join the SLANG team and for the Avitas and Hellavated brands to be added to the amazing product portfolio SLANG has assembled."
Completion of the Transaction is subject to, among other things, the negotiation and execution of a mutually agreeable definitive acquisition agreement and related documents and the satisfaction or waiver of any conditions precedent to the consummation of the Transaction (including the receipt of any requisite regulatory and third-party approvals).
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a leading cannabis-focused consumer packaged goods company. The Company is focused on acquiring and developing market-proven regional brands, as well as creating new brands to meet the needs of cannabis consumers worldwide. SLANG is listed on the Canadian Securities Exchange under the ticker symbol SLNG. For more information, please visit www.slangworldwide.co.
About Arbor Pacific
Arbor Pacific develops and licenses cannabis brands, intellectual property and physical assets to cannabis operators in the United States and Canada. Currently Arbor Pacific brands are manufactured in Washington, Oregon and Colorado. Arbor Pacific's suite of branded products include the best selling vaporizer product lines under the Avitas and Hellavated brand names as well as premium cultivated flower and other manufactured products. Arbor Pacific also manufactures and distributes the Avitas Botanical and Avitas Wellness CBD product lines which are currently available direct to consumers via https://shopavitas.com/ and in select retail stores nationwide. For more information, please visit www.avitasgrown.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 statement in this news release include, but are not limited to, statements regarding the Transaction (including the terms thereof, the entering into of definitive documentation and closing conditions), the receipt of regulatory approvals, the distribution and sale of SLANG and Arbor products and the size and growth of the Washington cannabis market generally.
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, 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, 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.
SOURCE SLANG WORLDWIDE
For further information: Media inquiries: Media@SLANGworldwide.co; Investor inquiries: Kelly Ehler, Chief Financial Officer, Investors@SLANGworldwide.co / 833.752.6499