The first two weeks have been a very busy period for the management team of Golden Leaf Holdings Ltd (OTCMKTS:GLDFF). Early in the month, the company announced the acquisition of a city regulatory license for its extraction facility in Portland, Oregon. Issued by the City of Portland, the license gives Golden Leaf the opportunity to operate extraction equipment in the city as well as the distribution of the resulting products.
In the same two-week period, the company made public the agreement with Tahoe Hydroponics Company ltd that allowed the company to take over the assets of Tahoe. As per the press release, Golden Leaf would become the sole operator of the cultivation equipment that was under Tahoe in Nevada. This will also include the extensive distribution network that Tahoe has created over the long time it has operated in the region.
Premier vertically integrated provider
According to the press release, Tahoe is one of the foremost cultivators in the region and the company has built a “successful cash-flow positive business” hence the acquisition has been billed to raise the stature of Golden leaf in the industry.
Commenting on the transaction, William Simpson, CEO of Golden Leaf, acknowledged the fact that Tahoe is an “ultra-premium, award-winning cultivator that is extremely adept at producing world-class cannabis with strong brand recognition.” The CEO opined that this property combined with the high level of revenue earning and generation of cash flow by the company will be crucial to Golden Leaf specifically towards achieving the company’s objective of becoming a “premier vertically integrated seed-to-sale cannabis provider.”
The CEO also noted that the transaction brings together two strong companies that have proved their mettle in the budding industry and expressed his hope that the result will be a “formidable player in the burgeoning North American cannabis market.”
Extraction in Portland
Upon receipt of the license to operate in Portland, the press release revealed that the company’s production team began work immediately. The company needs the extraction equipment to be u and running in good time so that the “strong estimates of expected equipment performance” can be realized within a short time.