Positive Outlook from my point of view. Really like a number of aspects of today's News Release.
Particularly the US $.06 per GLH share valuation.
I do believe the future looks pretty good.
Pursuant to the terms of the Asset Purchase Agreement, Golden Leaf purchased substantially all of the assets of Tozmoz, including the facility located in Clackamas, which serves as the headquarters for multiple extraction options as stated above, for consideration of US$2.8 million consisting of cash and advances totaling US$675,000, an earnout of up to US$400,000 and GLH stock (29,166,667 shares at US$.06 per share).
GLH has previously made certain payments to Tozmoz so that only approximately US$227,000 of cash will be due at closing.
The earnout of US$400,000 may be paid to Tozmoz quarterly beginning in July 2020, based upon 30% of up to US$1.2 million of third-party revenue generated from the assets acquired by GLH.
Since its founding, Tozmoz generated revenue by toll-processing for clients including GLH.
The attractive gross margins on the GLH business will now be earned by GLH.
In addition, Tozmoz will continue to serve, and is growing revenue from, third-party white-label processing.