“Our listing on the Canadian Securities Exchange represents a significant milestone in the journey of building Green Growth Brands,” said Peter Horvath, CEO of GGB’s operating entity. “The transition to a publicly-traded company will benefit our current investors, give new investors chance to join us and provide the Company with the currency to facilitate our aggressive growth plan.”
“Our team has run multi-billion dollar businesses, operating as number ones in their respective categories, competing for customers in saturated mature markets. We’re eager to do it again in the burgeoning North American cannabis industry,” continued Horvath.
- GGB’s operations are led by renowned retailer Peter Horvath, former executive at a number of national brands, including Victoria’s Secret, American Eagle Outfitters, DSW and Limited Brands.
- Mr. Horvath has put together a team of retail experts with significant expertise in building successful international brands.
- The company is targeting rapid expansion throughout North America and is actively pursuing opportunities in a number of states and provinces.
- GGB has developed a line of innovative, CBD-based health and beauty products, leveraging the GGB management team’s significant experience in the health and beauty products industry.
- On July 27, 2018, Green Growth Brands Ltd. announced a business combination with Xanthic Biopharma Inc., developer of a proprietary process to make THC and CBD, the two key active ingredients in cannabis, water soluble.
- On September 4, 2018, GGB completed the acquisition of Nevada Organic Remedies, a medical and retail marijuana company based in Las Vegas. GGB is in the process of seeking approval for as many as eight additional locations in Nevada with the intent of having the largest footprint in the state.
- On September 25, 2018, GGB announced a convertible debenture financing of over C$86 million. Significant investor demand led this offering to be oversubscribed on its initial target of C$55 million. The convertible debt was converted into GGB equity upon completion of its previously announced business combination.
- On November 5, 2018, GGB announced a subsequent equity raise of C$55 million, to bring total funds raised to over C$140 million. The transaction raised approximately C$30.5 million, and the subscriber has exercised an additional C$24.5 million of common share purchase warrants (payable within 30 days). In both rounds the Company was able to attract top tier strategic investors.
“We are focused on North American expansion and in preparation we visited 100 of the best cannabis stores in the market,” noted Mr. Horvath. “What we found was that every single store was underperforming against its potential. The assortments are confusing, the price points are confusing and the rules of engagement are confusing. We will put the consumer at the centre of our model. Brands have to be mirrors, reflecting customers and individuality.”
“While many in our industry talk about national brands, our research has found that only a small percentage of consumers actually trust those brands,” continued Horvath. “What they do want is localization and authenticity, and that is what we’ll deliver, as we build our stores and complete deals with large retail partners.”
The Canadian Securities Exchange provides companies, including early-stage growth companies and those competing in the cannabis industry, a modern and efficient alternative way of accessing the Canadian capital markets.