In order to cash in on potential marijuana-infused beverage market, West Vancouver-headquartered Hill Street Beverages is all set to acquire Saskatchewan-based OneLeaf Holding Corp., the parent organization of OneLeaf Cannabis corp, for $16 million.
The deal is expected to close as soon as OneLeaf gets hold of a standard cultivation and processing license from Health Canada – probably in the next four months.
In case you aren’t already aware, Hill Street is in the business of producing non-alcoholic beer and wine.
With the acquisition, Hill Street will get access to OneLeaf’s 48,200 sqft world-class facility, where the former will grow, extract, infuse and bottle – all under one roof. Furthermore, the latter boasts a catalog of over 700 distinct cannabis cultivars.
“We anticipate that OneLeaf’s elite genetics, which include numerous cultivars not legally available anywhere else, will go perfectly with our beverages to provide unique attributes and experiences for our consumers,” Hill Street CEO and chairman Terry Donnelly said to a leading news agency.
The CEO further added that all current employees of OneLeaf will be brought on board. In fact, to hit their ambitious production targets, the company will hire dozens more once the acquisition is complete. “To be precise, we need at least 20 people to cultivate the cannabis, while 30-45 people work on the beverage side of the operation.”
The proximity of OneLeaf’s facility to the global transportation hub was among the most significant factors behind this deal, said Donnelly.
The federal government has set October 17 as the date when the rules governing legalized edibles go into effect.
Donnelly is quite positive that his company’s products will hit the shelves by February 2020.
Notably, the deal will be an all share transaction.