SLANG Worldwide Enters Vermont Market Through Closing of High Fidelity Acquisition
SLANG Worldwide Inc. (CNSX: SLNG) (OTCMKTS: SLGWF), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today announced that it has closed its previously announced acquisition (the “HI-FI Acquisition“) of High Fidelity, Inc. (“HI-FI“), Vermont’s largest medical cannabis company.
The integration of HI-FI into our nationwide platform will allow us to expand our operational footprint and add Vermont to our existing core markets of Colorado and Oregon. Hi-Fi’s vertically integrated business model enhances our capacity and operational capabilities through its cultivation, production, and retail, including home delivery services, adding significant value to our full portfolio of assets. For Vermont, this partnership will bring revenue to the local and state economy while also providing quality jobs with competitive salaries and benefit packages. We are fully committed to nurturing Vermont’s value-driven culture as well as the High Fidelity team’s core values, standing by the principles of quality, collaboration and best consumer and employee experience.Chris Driessen, Chief Executive Officer of SLANG
Key Transaction Benefits:
- HI-FI generated positive adjusted EBITDA in fiscal year June 2021, and on this basis, is expected to be accretive to SLANG’s earnings in calendar 2021 and onward. HI-FI’s trailing twelve month revenue is $6.9 million USD and trailing twelve month adjusted EBITDA is $1.1 million1
- Broadens SLANG’s core market footprint, adding Vermont to its existing core markets of Colorado and Oregon
- Expands SLANG’s operational footprint with the addition of Vermont’s leading vertically integrated cannabis company, which includes a 28,000-square-foot cultivation, production, lab, and retail distribution facility, with a planned 50,000-square-foot expansion expected to be completed in 2022
- Adds two of the five medical cannabis licenses in Vermont with four fully operational dispensaries, including in the Burlington area, with ability to add two new retail dispensaries upon receipt of licenses
- Strengthens SLANG’s experienced leadership with the integration of engaged local management teams including a proven and profitable operator with an eight-year history
Key Vermont Market Benefits:
- Helps build infrastructure to meet market demand in the state, providing fresh capital investment to the area
- Provides new job opportunities with competitive wages and benefit packages
- SLANG’s 2200-outlet retail pipeline provides immediate opportunity for Vermont-branded product distribution to a larger US market
- Creates strong partnership in supporting the social justice initiatives in Vermont’s cannabis laws
- Adds leadership and expertise to support innovation, best manufacturing practices and compliance
About High Fidelity
HI-FI is Vermont’s premier vertically integrated cannabis company, founded in 2012 in Burlington. The Company owns two of the five medical cannabis licenses in Vermont and services approximately 70 percent of registered patients2. In June 2021, both licenses commenced operating under a new brand name, CeresMED. In the upcoming licensing process for adult use, current medical license holders will have early access to the market alongside Vermont’s craft growers, giving them a significant opportunity to build consumer loyalty. In addition to the four dispensaries, HI-FI operates statewide home delivery services and wholesale distribution of its own branded products as well as SLANG branded products. Furthermore, HI-FI is awaiting approval of a social equity application for a retail medical cannabis license in New Jersey.
HI-FI also owns and operates Ceres Natural Remedies, Vermont’s original CBD store. Since 2016, Ceres has grown to include three retail stores and a portfolio of Ceres branded products with distribution in over 1,200 retail locations, which will expand the SLANG network to over 3,400 total points of retail distribution.
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