MJardin Group Expands North With Acquisition of Canada-Based GrowForce

Colorado-based MJardin Group is expanding its Canadian operations with the acquisition of GrowForce, a vertically integrated cannabis platform with majority interest in flagship cannabis facilities and strategic partnerships for turnkey operations, proprietary software,  training and project financing.

MJardin already operates GrowForce's flagship facilities in Canada. 

What Happened

The acquisition of GrowForce is all-stock and valued at around Canadian 278 million, or the U.S. dollar equivalent of $210.70 million.

Each GrowForce shareholder will be entitled to receive 0.375 shares of MJardin for each GrowForce share held. This values GrowForce's stock at $4.50 per share and represents a 41-percent premium to the subscription receipt round that GrowForce closed in July.

Aside from the acquisition, MJardin Group announced that it has commenced trading on the Canadian Securities Exchange.

Why It's Important

After the merger is complete, MJardin will have 49 facilities in North America either full operational or under development.

The facilities have a total capacity of 87,000 kilograms of marijuana.

MJardin will continue to manage 23 cultivation facilities, two outdoor grows, five extraction facilities and 19 dispensaries in four U.S. states and four Canadian provinces. 

The combined company will have a pro forma cash balance of around CAD 65 million.

What's Next

The combined company said it will look at international expansion, particularly in Africa, Europe and Latin America. 

"We believe that MJardin is well-capitalized and uniquely positioned to pursue strategic expansion and M&A opportunities across legal cannabis markets in the U.S., Canada and other international markets," CEO and Chairman Rishi Gautam said in a statement. 

Related Links:  

What To Know About The New Aurora Cannabis Chief Science Officer 

Cannabis Earnings Roundup: Record Sales, But Concerns Remain

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisNewsM&AMarketsCannabis M&AGrowForceMjardin Group
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.