Under the accord, Icanic will acquire The Leaf for a price tag based on the dispensary’s trailing twelve months of revenue calculated on the date of closing.
The purchase price will be payable in stock based on the 10-day volume weighted average price of the company’s common shares trading on the Canadian Securities Exchange, Icanic said. Icanic stock was lately trading at C$0.09 down 57% year-to-date.
“The acquisition of The Leaf marks our first step in our corporate strategy of becoming a vertically integrated entity which we plan to achieve by both organic growth and through tactical acquisition,” said Icanic Brands CEO Micah Anderson. “We have built a foundation of significant supply chains, robust and sophisticated manufacturing capabilities, and industry-leading brands and The Leaf marks our continued advancement into furthering our footprint into retail.”
The Coachella Valley dispensary opened in 2019 under the late R.D Hubbard, a former chairman of a local country club.
“I was fortunate to have spent time with the inspirational entrepreneur R.D. Hubbard. Dee (R.D) was a supporter of both myself and LEEF Holdings before his passing in 2020 so it’s an honor to be able to continue in his shared vision of building a high quality cannabis company,” Anderson added.
Hubbard bought the El Paseo property for $1.7 million, the Desert Sun reported at the time of its opening.
“We look forward to partnering with Micah and Icanic Brands to further our goals in the cannabis industry,” said The Leaf’s president Edward Burger.
Icanic said that it will utilize its cultivation, manufacturing and co-packing services to build The Leaf’s house brands.
The company plans to launch a new direct-to-consumer strategy for its brands such as Real Deal Resin, Ganja Gold, Heady and Taylors, offering “the convenience of online ordering with direct to your door delivery and unrivaled unboxing experience.”
“I believe this business combination will enhance our presence and allow The Leaf to continue to grow and serve our customers in the Palm Desert area,” the store’s general manager Paul Cotterell said.