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Slang Worldwide To Acquire Cannabis Cultivator Pleasant Valley Ranch

Slang Worldwide Inc., a Canada-based cannabis consumer packaged goods company, said it has agreed to acquire Colorado-licensed cannabis cultivator Pleasant Valley Ranch, LLC. The acquisition is part of Slang's strategy of consolidating its supply chain in Colorado.

Slang said it will acquire Pleasant Valley for consideration comprised of a non-material amount of cash and common shares of the company. The acquisition will be completed by way of three-cornered amalgamation and is expected to close in the fourth quarter of 2020.

Slang expects the ownership of a cultivation operation will provide it greater assurance of a supply of raw materials in the growing Colorado market, while also enabling it to reduce its input costs and improve gross margins.

Pleasant Valley is a privately-owned company located in Carbondale, Colorado, specializing in organically grown cannabis strains that thrive in high altitude, mountainous environments.

Pleasant Valley has 1,600 square feet of greenhouse cultivation area, and a five-acre outdoor facility at an elevation of about 7,500 feet that produces naturally cultivated product using snowmelt water. It currently has a capacity of 3,600 plants and produces about 4,800 pounds annually, and is projected to double its capacity by 2021.

Slang noted that Pleasant Valley has been a key supplier of raw materials for Slang-branded concentrate and edibles products in Colorado.

After the approval of its application for suitability by the Colorado Department of Revenue's Marijuana Enforcement Division or MED in August 2020, Slang acquired Denver-based licensed cannabis producer and distributor, Peoria Partners LLC.

The MED approval is a required step for Slang to own "plant-touching" operations such as manufacturing and distribution facilities in the state. It also cleared the way for the company to complete pending acquisitions.

Slang said it is evaluating other potential acquisitions and opportunities in Colorado. The company's branded products are being sold in Colorado since 2012.

The Colorado market generated total retail sales in excess of $1.7 billion in 2019, and grew by 22 percent in the first seven months of 2020 compared to the same period last year, according to BDS Analytics.

According to the Colorado Department of Revenue, the retail market price of flower in the state has recently exceeded $1,300 per pound, an increase of more than 30 percent from a year earlier.

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