Cannabis oil solutions company Golden Leaf Holdings (GLH) announced today that it has signed a letter of intent (LOI) with BlackShire Capital Corp., a cannabis-based private equity firm, to start a franchise model in the cannabis industry.
“BlackShire Capital has been invested in the legal cannabis space for several years. In Golden Leaf and Chalice Farms we have found a proven and progressive partner that believes in a premium customer experience,” said BlackShire Chairman and CEO, Kevin Reed, in a statement. “We look forward to working with our partner on a definitive agreement that takes this exceptional brand to markets in Canada, the U.S. and the world.”
Dubbed Chalice Farms, the franchise would operate in U.S., Canadian, and international markets. Gold Leaf and BlackShire are currently negotiating the final terms to form a management company. Jointly owned, the company would own the franchise and be responsible for running its day to day operations. Terms currently being considered include BlackShire providing $10 million CAD in initial funding for operations in the Canadian market and an additional $15 million CAD for U.S. Operations. Future funding would be borne by both Golden Leaf and BlackShire, in proportion to their equity stake in the management company.
“Signing the LOI validates our strategic franchising initiative and allows us to advance this potential franchising and management partnership with BlackShire Capital towards definitive agreements,” commented Golden Leaf CEO, William Simpson. “Franchising Chalice Farms represents an attractive vehicle to execute on our growth strategy of replicating the Chalice Farms operating model in new territories, which we plan to begin in Canada where and when permitted, and which we envision extending to additional permitted U.S. markets, beyond our current Portland, Oregon footprint. In our view, Golden Leaf remains uniquely positioned to expand its retail brand-focused model and to build sustainable, long-term shareholder value.”
Golden Leaf has operations in multiple jurisdictions including Oregon, Nevada, and Canada is one of the largest cannabis oil and solution providers in North America. The company cultivates, extracts and manufactures and distributes its products through its branded Chalice Farm retail dispensaries, as well as through third-party dispensaries.