Chalice Brands Ltd CHALF

Tahoe acquisition is outstanding - highlights outstanding

[unclebobie]

Transaction Highlights

• Bolstered Production & Distribution in Nevada – With a fully-built ~21,600 ft² facility in Carson City already producing ~4,000 pounds per annum, Tahoe brings material cultivation capacity to Golden Leaf’s Nevada operations. With Golden Leaf currently buying wholesale flower to manufacture its oils and edibles in Nevada, Tahoe provides immediate ability to capture the incremental cultivation margin and extend the combined Company’s seed-to-store value chain. In addition, Tahoe has built an extensive distribution platform representing 56% penetration across all state adult-use dispensaries, which can be leveraged for Golden Leaf products.
   
• Expansion into California – Tahoe provides an immediate foothold in the state of California with a ~28,800 ft² cultivation facility under development in Sacramento. With production anticipated to start in Q1 2019, the combined company is well positioned to expand on its seed-to-sale vision. With California expected to be the largest US cannabis market, Tahoe provides a strong entry point for Golden Leaf. 
   
• Expanded Genetics and Brand Portfolio – The Tahoe brand is synonymous with ultra-premium cannabis underpinned by a proven track record of developing top-tier strains and genetics. For the past two years in a row they were awarded the Jack Herer Cup, winning best in class across Sativa, Indica and hybrid classes. The strategic combination of Tahoe’s awarding-winning cannabis strains with Golden Leaf’s award-winning oils and edibles provides a unique opportunity to cross-sell products while cross-building brand equity. 
   
• Continued Acquisition of Synergistic Players – The acquisition of Tahoe highlights Golden Leaf’s continued ability to identify “bolt-on” acquisitions of value-add cannabis companies. Tahoe provides a strong strategic fit by strengthening Golden Leaf’s upstream operations in Nevada and significantly enhancing their distribution, in addition to bringing exposure to a major new market, California.
   
• Complementary Management Team – Golden Leaf will benefit from Tahoe’s highly-experienced management team which has built a successful business with a strong reputation for quality in Nevada. The Tahoe management team will play a meaningful role within the combined company going forward.