Acquisition Expands SLANG's Industry Leading Brand Portfolio and Manufacturing and Distribution Capabilities in Oregon and California, Further Enhances the Strength of SLANG's Management Team
TORONTO, May 14, 2019 /CNW/ - SLANG Worldwide Inc. (CNSX: SLNG), ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods ("CPG") company with a robust portfolio of renowned brands distributed across 2,600 stores in 11 US states, is pleased to announced that it has entered into an agreement to acquire LBA Global Corporation ("LBA") and its Lunchbox Alchemy ("Lunchbox") brand portfolio and subsidiary Hydra Distribution ("Hydra"). The proposed transaction (the "Transaction") will bolster SLANG's position in the Pacific Northwest by adding a complementary portfolio of top-selling products in Oregon and California and robust supply chain and distribution capabilities.
Highlights Include:
- LBA owns the award-winning Lunchbox Alchemy edible brand which includes an extensive portfolio of leading products. The product line ranks as the 2nd best-selling ingestible brand in Oregon since 2014 (BDS Analytics) with extensive penetration in the California market.
- Lunchbox Alchemy's CBD products are sold in 40 states across the US, accelerating SLANG's Health & Wellness business.
- Hydra actively distributes to more than 400 dispensaries in Oregon, approximately 67% dispensary penetration, and has one of the largest distribution footprints in the state, widening the distribution of SLANG's existing portfolio in this market.
- LBA's leadership team is comprised of successful cannabis industry professionals with a depth of expertise managing high-growth CPG companies, enhancing SLANG's current management team.
- Synergies and new opportunities created through leveraging respective brands and distribution across the US.
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 a variety of ingestibles products (gummies, hard candies, and pastries) that collectively rank as the 2nd best-selling ingestible brand in Oregon since 2014, per BDS Analytics. Lunchbox Alchemy also owns a CBD-infused product line that is currently available in retail stores in 40 states across the US.
SLANG Co-Founder and CEO Peter Miller said, "Lunchbox Alchemy's products have proven themselves in some of the most competitive markets in the US. Their success is based on knowing what consumers want and delivering consistent product quality, diverse portion sizes, formulations and high-quality organic and vegan ingredients. LBA's impressive management team, with their diverse CPG expertise, and the company's extraction, manufacturing facilities and distribution business will bring significant new opportunities for SLANG's branded products in Oregon and California, further establishing SLANG's position as a leading global cannabis CPG company."
Hydra is one of the largest cannabis distributors in Oregon and distributes Lunchbox Alchemy products along with 8 other third-party brands to more than 400 dispensaries across Oregon, representing approximately 67% dispensary penetration in the state. Leveraging this infrastructure, experience and industry relationships will enhance SLANG's position as a leader in branded product sales in the Oregon market, which generated approximately $700 million in retail sales in the past 12 months (BDS Analytics). Lunchbox Alchemy's CBD products, which are available in over 380 retail outlets across 40 US states, will also accelerate the development and distribution of SLANG's Health & Wellness portfolio.
LBA CEO Eric Plantenberg said, "LBA Global is honored to join the SLANG family of brands at this exciting time in the evolution of the cannabis industry. Slang's visionary leaders are highly skilled at curating a network of exceptional brands and deploying strategic initiatives that will create exponential and sustainable growth. We believe our partnership will add long-term value to their portfolio, elevating the standards by which cannabis is extracted, edibles are manufactured, and consumer goods are distributed."
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 global cannabis consumer packaged goods company with a robust portfolio of renowned brands distributed across 2,600 stores in 11 US. 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.slangww.com.
About LBA Global Corporation
Since opening its doors in 2014, LBA Global Corporation through the Lunchbox Alchemy brand has developed edible cannabis products that uphold the integrity of a consistent, efficacious and quality cannabis experience. Lunchbox Alchemy has proudly received multiple cannabis industry awards recognizing achievements for its exceptional products, as well as unique and identifiable brand presence. The Company's cannabis products can be found in licensed dispensaries throughout Oregon and California, and their hemp-derived CBD products are available in many markets throughout the U.S. Hydra, the Company's distribution division, is a leading wholesale distributor of both Lunchbox Alchemy and other cannabis products throughout Oregon.
Forward-Looking Statements
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 personnel managing LBA post-closing of the Transaction, the receipt of regulatory approvals, the distribution and sale of SLANG and LBA products, and the size and growth of the 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
