Debra BorchardtFebruary 11, 2019
Green Growth Brands Inc. or GGB (OTCQB: GGBXF) entered into an agreement to gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG). GGB will expand its chain of CBD-infused personal care product shops under the Seventh Sense Botanical Therapy.
Simon is the biggest mall operator in the country with high-profile properties including Roosevelt Field in metro New York; The Galleria in Houston, TX; and Woodbury Common Premium Outlets in Central Valley, NY. While there are certainly numerous CBD shops, this is the first company to look at establishing a huge chain right off the bat.
“We are constantly on the lookout for cutting-edge new concepts, like the GGB shops,” said John Rulli, President of Simon Malls. “We are committed to adding new and dynamic retailers and uses to our shopping destinations, and the GGB shopping experience is exactly the type of innovation our customers want and expect from us. We’re excited to work on the GGB launch, and look forward to a long and deepening relationship as we build this network together.”
The first shop is expected to open in March 2019 at Castleton Square Mall in Indianapolis, Indiana. The remaining shops will be opened over the course of 2019.
“Our partnership with Simon allows GGB to launch our brands and CBD products in premier shopping destinations across the U.S.,” said Peter Horvath, CEO of GGB. “Our management team has had decades of experience working closely with developers and operating premium retail stores in their properties. We know this arrangement gives us access to the best locations, foot traffic, and consumers.”
GGB said that along with this agreement it has entered into a consulting agreement for services with Simon Canada Management Ltd. through its wholly owned subsidiary GGB Kiosks LLC. In exchange for the services rendered GGB has issued to Simon Canada $2,232,824.42 in GGB common shares and 1,000,000 common share purchase warrants of GGB with an exercise price of $4.47.
GGB also said that it entered into an Advisory Services Agreement with J. Salter Ltd., d.b.a. Authentic Retail Concepts, Ltd., for a variety of consulting services that leverage a network of strategic relationships, including Simon Property Group. As compensation for the services under the Advisory Agreement, GGB has issued to ARC $2,232,824.42 in GGB common shares reflecting the GGB share price of USD$4.47.
