News: SLANG Acquisition of Peoria Partners LLC SLANG Worldwide Establishes Colorado Distribution Business with Acquisition of Peoria Partners LLC
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.