The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (US:TGODF) has announced this week that the company has signed an agreement to acquire 100% of the issued and outstanding shares of privately-held HemPoland in a transaction split between cash and shares.
HemPoland was the first company in Poland to gain the proper licenses to allow the cultivation of hemp for the purpose of extracting cannabinoids such as Cannabidiol (CBD). The price of the acquisition is reportedly to be worth $20 million dollars, with US$7.75 million in cash and 1,968,323 in restricted TGOD shares going to HemPoland. HemPoland will also receive a cash influx of CAD$13.5 million for the expansion of the company’s operations once the acquisition is finalized.
The HempPoland brand manufacturers organic hemp based products containing CBD under the brand name Cannabigold. The company utilizes state-of-the-art hemp oil extraction technologies, owns the proper licensing to conduct business in on the European continent and contains the proper distribution channels to sell their branded product line to customers.
This year, The Organic Green Dutchman has started to target companies with the proper infrastructure to expand their operations into the international markets. HempPoland’s organic hemp CBD product line falls in line with the
company’s goal to capture revenue in a
number of different cannabinoid based markets across the globe.
“Gaining market share with CBD products now, in the EU, with over 700 locations allows TGOD to establish immediate brand awareness across all verticals including infused beverages. This is an accretive acquisition and gateway to Europe’s 750 million people accelerating our plan of becoming the world’s largest organic cannabis brand,” said Brian Athaide, CEO of TGOD, in the press release.