(Globe Newswire) Vancouver — LEEF Brands Inc., a vertical cannabis operator, is pleased to announce the successful closing of the acquisition of the Salisbury Canyon Ranch LLC., a 1,900-acre ranch located in Santa Barbara County.
Additionally, as previously announced on June 1, 2023, the company has sold a 60 per cent interest in the Ranch for $7.0 Million through an interest-free loan agreement, of which the proceeds will be used to finance the buildout and operation of one of the largest biomass cultivation sites in California. LEEF will remain the 100% owner of the state cannabis licenses and shall exclusively occupy and manage the Ranch and the cultivation operation.
“This is a monumental milestone for LEEF as the acquisition and buildout of the Ranch will enable us to fully execute our vision of building one of the largest biomass cultivation sites in California. The buildout marks a tremendous opportunity for LEEF and lays the foundation for future expansion. As a customer-service-focused company, we believe that controlling our supply chain will allow us to improve upon quality and consistency, create superior products and provide exceptional service to our clients. I would also be remiss if I didn’t mention the recent federal contemplation of rescheduling cannabis to Schedule 3. The elimination of the 280E tax on our business and on our customer’s business would have dramatic and immediate positive implications for an industry that has been plagued by high taxes, high cost of capital, lack of investment capital and lack of access to traditional financial services,” said Micah Anderson, CEO of LEEF Brands.
Kevin Wilson, Chief Financial Officer added, “Our team has devoted substantial resources to identifying areas in which we can garner operational efficiencies and increase profitability. For LEEF, our intention is to slowly build out a secure supply chain that will be strategically planted to support our specific manufacturing capabilities.”
Under the terms of the Transaction, the Company has acquired the Ranch for a purchase price of $5.48 Million with $1.1 Million due at closing. The Company separately entered into a five-year promissory note agreement with Salisbury Canyon Ranch LLC. to vendor finance $4.2 Million on which interest only payments will be made for a period of 24 months at an interest rate of 4 per cent per annum.