Canada-Based PeakBirch Acquires Stul Ltd, Plans To Ramp Up Cannabis Sales In U.K. Market

Cannabis-focused multi-brand management company PeakBirch Logic Inc. PKB KYH KTNNF has closed the acquisition of London-based Stul Ltd.

The Vancouver-based company revealed Thursday it has purchased all Stul's assets as well as its issued and outstanding shares for 250,000 GBP ($347,047).

Transaction Details: PeakBirch Logic agreed to issue some 10,810,625 of its common shares at CA$0,04 ($0.03) per share in exchange. 

The company issued its 8,648,023 common shares to Stul's sole shareholder on closing.

The issuance of the remaining 2,162,600 common shares is subject to Peakbirch confirming that Stul's working capital is at least GBP350,000. If the particular milestone hasn't been met, the purchase price and the number of shares the company agreed to issue will reduce on a dollar-for-dollar basis.

What It Means For PeakBirch: The acquisition brought Hot Box Herb, a leading brick and mortar cannabis accessory shop Based in Chelmsford, Essex, and an e-commerce website under PeakBirch's helm. The store is expected to allow PeakBirch's to establish a foothold in the U.K market.

"This acquisition is the first stepping stone we felt we needed to take to establish a foothold in the U.K. using the Hot Box Herb brand," Marc Mulvaney, CEO of PeakBirch, said. "We are very excited to be welcoming our new experienced team members to the PeakBirch family."

In addition, Hot Box Herb is the owner and producer of New Era Wellness, its proprietary organic branded CBD product line that includes topicals, edibles and cannabis flower.

PeakBirch also obtained 350 000 GBP in working capital through the deal, including roughly 150 000 GBP in inventory, including shisha, tobacco and pipes, cannabis accessories, high-end designer bongs and CBD.

The company also took over New Era, New Era Wellness, Used Filter and Hot Box trademarks, as well as Stul's portfolio of websites and domains, including "www.hotboxherb.com."

What's Next: The company intends to create a glass brand for the so-called business-to-consumer (B2C) and business-to-business (B2B) resale, as well as bolster CBD sales by utilizing pop-up shops and set up in local markets.

In addition, it plans to boost online and store sales via marketing initiatives and brand awareness campaigns. It will also set up a drop shipping program for other businesses within the country.

Photo: Courtesy of Peakbirch Logic Inc.