The Green Organic Dutchman (TGOD) wants a piece of the lucrative U.S. marijuana market and is acquiring Galaxie Brands Corp. for C$21M in stock, plus an additional C$15 million in shares if financial milestones are achieved by December 31st, 2022.
Ontario-based The Green Organic Dutchman reached a definitive agreement to acquire Galaxie, a licensed producer specializing in marijuana pre-roll manufacturing, edibles, vapes and oils.
Green Organic Dutchman said in a news release that the deal will provide exposure to the edibles category via Galaxie’s exclusive joint venture in Canada with Wyld, a cannabis edibles maker based in Oregon.
The company also said that the acquisition will combine its organic cultivation capabilities with Galaxie’s “product development expertise and formulation lab capabilities” to expand its product portfolio.
The company’s portfolio will expand from 157 to 215 listings across Canada, the release wrote.
Galaxie’s “strategic U.S. partnerships and existing industry relationships” are expected to accelerate the company’s entry into the American market.
As part of the deal, the current CEO of Galaxie, Angus Footman, will join TGOD’s board as chair.
Galaxie President Olivier Dufourmantelle will also join TGOD’s board, in addition to taking up the position of president of U.S. operations.
TGOD’s current chair, Jeff Scott, will remain on the board as an independent director.
“The acquisition of Galaxie will allow TGOD to expand by increasing scale, innovation, and operating capabilities, with the addition of exciting brands in Canada,” TGOD Chief Executive Officer Sean Bovingdon said in a statement.
“We believe our complementary brands and consumer bases will result in stronger revenues and overall financial performance for TGOD, while preparing for a future expansion to the U.S.”
The acquisition is scheduled to close around Nov. 15, 2021.