The acquisition will be paid in stock.
The acquisition will be paid in stock.
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The company also announced the appointment of a new CEO, Micah Anderson, in conjunction with the resignation of Brandon Kou.
Icanic Brands Company, Inc. (OTCQB: ICNAF) has acquired all of the common stock of LEEF Holdings, Inc., a California based extractions company in a merger agreement dated January 21, 2022.
“This is an extremely exciting milestone for LEEF and our entire team,” said LEEF CEO Micah Anderson. “We have all worked tirelessly to build LEEF into what it is today and I truly look forward to continuing to build shareholder value with our new partners at Icanic. I believe that our combined company is well-positioned to dominate the California marketplace with our highly sophisticated manufacturing capabilities combined with our ability to continue to build the brands that we currently have and those that we will seek out. Icanic’s business is highly complementary to the rest of our operations, and we are excited to work alongside their experienced management team to build a stronger company together.”
LEEF is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. It is led by a group of legacy operators with decades of experience in organic soil-based farming and sophisticated extraction practices. LEEF’s manufacturing capabilities include a 12,000 square foot extraction and manufacturing facility with significant throughput and distillate extraction capability.
Headquartered in Willits, California, LEEF’s core manufacturing competencies include ethanol extraction (Type 6 manufacturing license), hydrocarbon extraction (Type 7 manufacturing license), and solventless extraction. LEEF has also recently received a 186.7 acre cultivation land use permit, which will make it the owner of one of the largest cannabis cultivation sites in California. The site sits on over 1,900 acres of prime California real estate. Since its inception, LEEF has experienced significant year-over-year growth with strong and consistent gross margins and positive cash flow. From 2019 to the end of 2021, LEEF experienced revenue growth exceeding 100%. With the build-out of the cultivation site, LEEF will be able to provide consistency, quality and quantity to its customers and its’ margins are expected to improve as it gains vertical efficiencies with its in-house supply chain.
“Today is a historic day for Icanic as we officially welcome Micah Anderson and the rest of the Leef Holdings team to our family. Micah has created a truly amazing business and we couldn’t be more excited for this transformational acquisition that now positions the company extremely well to be a market leader in the state of California and beyond” said Brandon Kou, CEO of Icanic Brands. “The significance of this transaction cannot be understated as it finalizes the foundation that we have been building and will now allow the combined entity to take advantage of market opportunities that present themselves over the coming years that should result in some very exciting growth. I want to thank everyone on both teams for their dedication and determination during this process in seeing the transaction to a close.”
Despite numerous other cannabis companies managing to complete their bookkeeping during the pandemic, Icanic Brands (OTC: ICNAF) is now blaming Covid as the reason its financial filings are late. The delay has resulted in a cease trade order by the British Columbia Securities Commission under National Policy 11-207. The financials are related to the fiscal year ending in July 2021 and the quarter ending in October 2021. Icanic has already received one extension from the BC Securities Commission that ended on February 11, 2022.
Management has had its wings clipped for trading and now that extends to all shareholders with the Canadian shares. The OTC shares are continuing to trade.
Icanic said in a statement that it “has been delayed in completing its audited financial statements as a result of Covid-19 related delays in obtaining information with respect to subsidiaries acquired during the current and prior year, as well as a change in auditors from the previous fiscal year. The previous acquisitions and auditor change has required certain expert reports and an increase in the overall scope of the audit, both of which have caused the delay in the Annual Filings. The Company is actively and expeditiously working with its auditors to file the Annual Filings, at which point the Company will seek to have the CTO revoked and trading reinstated on the CSE. The Company also confirms, as of the date of this news release, that there is no other material information concerning the affairs of the Company that has not been generally disclosed.”
No Financials Published In Almost A Year
The last published earnings for the company were almost a year ago when financials for the third quarter ending April 2021 were published. At that time, revenues were just C$3.2 million and the company only had cash of roughly C$2 million. In September 2021, the company said it had sold its interest in a Sacramento, CA Cultivation facility to Crowco Management LLC, a California-based limited liability company, for $2 million.
Since April the company has been making one acquisition after another. The company said it was buying THC Engineering, De Krown Enterprises, Substance LLC and then the biggest deal being LEEF Holdings, which is valued at $120 million.
The company also stated that it is working towards closing the acquisition of LEEF Holdings, Inc., as previously announced on January 25, 2022. LEEF is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. LEEF’s manufacturing capabilities include a 12,000 sq. ft state of the art extraction and manufacturing facility with up to 45 tons of biomass throughput per month and up to 3,000 liters of distillate extraction capability per month.
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