SLANG Worldwide Inc. (CNSX: SLNG) has been on a quest to consolidate its supply chain Colorado and the latest move is the acquisition of Peoria Partners. Peoria is the state-licensed manufacturer and distributor of SLANG’s District Edibles brand in Colorado. Slang said it plans to keep using Peoria’s Denver facilities to make District Edibles and for the distribution of the full suite of SLANG-branded products within Colorado.
“This is one of the planned acquisitions that allow us to consolidate our supply chain in Colorado,” said SLANG President & CEO Chris Driessen. “Owning a licensed cannabis facility capable of manufacturing and distributing cannabis-infused SLANG products immediately opens up new opportunities for us, including the ability to capture greater top-line revenue and more favorable unit economics.”
Earlier this year, Slang had disclosed in a filing that it entered into an agreement with Peoria and its unitholders in February to buy Peoria for non-material cash consideration. The company said that the purchase of Peoria marked a significant milestone in it’s strategy of consolidating its supply chain in Colorado. Just last month that the Colorado Department of Revenue’s Marijuana Enforcement Division had approved its application for suitability. That approval will allow Slang to own “plant-touching” operations such as manufacturing and distribution facilities.
Slang said that the consolidation will deliver several benefits, including increased revenue and gross profit per unit sold, greater control over production and distribution planning, improved efficiency across the organization, and a strengthening of its leadership position in the state.
Other Consolidation Efforts
In addition to Peoria, Slang has said that it also plans to buy Allied Concessions Group Inc., which is a manufacturing and distribution business in Colorado It has also executed definitive agreements relating to its proposed acquisition of an
edibles manufacturing and distribution business belonging to Oregon-based LBA. That deal is expected to close in the second half of the year. The company said it has been working to obtain the state regulatory approvals required to complete all three transactions.