SLANG Worldwide Inc. (OTCQB: SLGWF) has teamed up with cannabis-focused private equity firm Merida Capital Holdings to speed up Slang’s expansion in both new and existing markets. In addition to the partnership, Slang said that Merida led a non-brokered private placement of up to C$10 million to fund further growth. The stock was rising over 6% to lately sell at 32 cents.
“Integrating our brands in emerging markets through strategic partnership is core to our growth strategy. This alliance with Merida allows for us to enter two new emerging markets in Virginia and Missouri, expand our sales in Michigan and bring in growth capital,” said Chris Driessen, CEO of SLANG.
The company said in a statement that the partnership will leverage Merida’s portfolio to expand SLANG’s branded products into Missouri and Virginia, while also accelerating the companies retail distribution in Michigan. Under the terms of the agreement, Merida said it will be granted options to acquire common shares of SLANG and may earn additional compensation for achieving certain milestones, including sales targets, and initiatives to promote the commercialization of SLANG products across the entire Merida ecosystem, which also includes various licensed businesses in West Virginia, California, Maryland, Pennsylvania, and investments in various cannabis oriented finished goods, technology, and supply chain companies. SLANG’s proprietary brands include O.pen, Bakked, District, Pressies, Lunchbox Alchemy, and Firefly.
The company has been on somewhat of a buying binge. A few weeks ago, Slang said it had entered into a definitive agreement and plan of merger with Allied Concessions Group Inc. (ACG), a manufacturing and distribution business based in Colorado. ACG is an Infused Product Manufacturer (MIP) that produces O.pen, Bakked and Pressies branded cannabis products in Colorado. ACG is comprised of two different manufacturing and distribution facilities that extract both hydrocarbon and CO2 oil for all SLANG branded products in Colorado. At the end of December 2020, the company closed on its acquisition of Colorado-licensed cannabis cultivator Pleasant Valley Ranch, LLC as it made another move to own its supply chain.
Merida’s Managing Partner Mitch Baruchowitz said, “Merida is excited to welcome SLANG to our ecosystem of 50+ cannabis companies, and tap their brand expertise to expand the product offerings of our licensed medical operators in Virginia, Missouri, as well as 3Fifteen Michigan which currently boasts a leading retail footprint in the state. Our investment and partnership should remove friction from SLANG’s state by state expansion and help drive acceleration of their national brand presence.”
“Forming this strategic partnership with one of the pre-eminent cannabis investors in the U.S. is a testament to the strength of our business and the growing demand for our cannabis products. By establishing such a valuable strategic collaboration and attracting high-quality institutional investment, at sector-leading terms, we are well-positioned to fund our expansion and bring our products to new customers,” said Peter Miller, Co-Founder and Executive Chairman of SLANG.