Canadian cannabis grower The Green Organic Dutchman has agreed to buy a Polish hemp company for $15.5 million.
Green Organic Dutchman (TGOD) will pay $7.75 million in cash and the rest in stocks for 100% of HemPoland, a privately held company based in Elblag, Poland.
The deal brings TGOD the CBD brand CannabiGold, as well as roughly 1,250 acres for hemp cultivation in Poland. HemPoland has about 60 employees.
“Gaining market share with CBD products now, in the EU, with over 700 locations allows TGOD to establish immediate brand awareness across all verticals including infused beverages,” Green Organic Dutchman CEO Brian Athaide said in a statement.
CannabiGold CBD is distributed in Poland, Austria, Netherlands, Germany, United Kingdom, Italy, Switzerland, Portugal, Ireland, Czech Republic, Slovenia, Lithuania and Estonia.
The deal includes performance incentives for HemPoland of up to $12 million for delivery of $32 million of EBITDA (earnings before interest, tax, depreciation and amortization) in fiscal year 2021.
The company also plans to spend $10.3 million “for rapid European expansion” through research and development.
Green Organic Dutchman is based in Ontario and trades on the Toronto Stock Exchange as TGOD.
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