Toronto-based Slang Worldwide Inc. (OTCQB: SLGWF) has been actively acquiring companies over the past months. Most of the acquisitions have been in Colorado as the company sought to bring in members of its supply chain as part of the larger company. At the close of last week, Slang announced it completed the purchase of Oregon-based LBA Global Corporation and its Lunchbox Alchemy brand portfolio and its subsidiary Lunchbox Distribution.
The company said this will improve its position in Oregon by adding a complementary portfolio of top-selling products, as well as increased cannabis extraction, manufacturing, and distribution capabilities. Oregon, in addition to Colorado, is a core market for SLANG. By establishing an integrated operation, the company hopes to see increased revenues and gross profits. The transaction is all stock and Slang issued 23,913,043 restricted voting shares to the former owners of privately held LBA in exchange for an all-equity interest in LBA and its subsidiaries.
“LBA satisfies several key strategic objectives for us, beyond the addition of some great brands to our portfolio,” said SLANG President & CEO Chris Driessen. “Our strategy in core markets like Oregon is to consolidate our supply chain and establish a fully integrated, wholesale operation to capture greater unit economics. With this acquisition, we now have an experienced team on the ground, an advanced manufacturing facility, and a thriving distribution business, all of which will serve as a platform for long-term growth.”
LBA was founded in 2014 and is the owner of Lunchbox Alchemy portfolio of cannabis brands, which has been recognized for its innovations in cannabis-infused edibles and concentrate production. Today, LBA owns and manufactures gummies and hard candies that have consistently ranked among the top sellers in their respective categories in Oregon over the past several years, according to BDSA. LBA also owns a CBD-infused product line that is currently available in more than 500 retail stores in 45 states across the U.S.
Slang said it intends to leverage LBA’s infrastructure, experience, and industry relationships to enhance its capabilities and market position in Oregon. Lunchbox Distribution is one of the largest cannabis distributors in the state and distributes Lunchbox products along with other selected third-party brands to 382 dispensaries across Oregon, representing approximately 62% dispensary penetration.
“We are very excited to become part of the SLANG team. After working closely together over the past year, we are more confident than ever in the strategic fit and the path forward,” said LBA CEO Eric Plantenberg. “Our local infrastructure and customer relationships plus SLANG’s national footprint and proven experience growing brands is a winning combination that will add value for both companies.”