SLANG Worldwide Inc. completed the acquisition of High Fidelity, Inc.
August 10, 2021
Share
SLANG Worldwide Inc. (CNSX:SLNG) signed a definitive merger agreement to acquire High Fidelity, Inc. for $11.1 million on June 25, 2021. At the closing of the Merger, SLANG will pay $12 million by issuing an aggregate of 31,578,947 restricted voting shares in the capital of SLANG and paying $3 million in cash. At the 18-month anniversary of the closing of the Merger, SLANG will pay $0.25 million by issuing 657,894 SLANG Shares and paying $2 million in cash. Pursuant to the Merger Agreement, SLANG may issue additional SLANG Shares upon the achievement of certain performance milestones. Shayne Lynn, President of High Fidelity, Inc. will join SLANG's leadership team and is expected to join the Company's board of directors upon closing of the Merger. Completion of the Merger remains subject to the satisfaction or waiver of all conditions precedent in the Merger Agreement, including the receipt of the approval of the State of Vermont's Department of Public Safety and any other government authority whose approval is required. Closing of the Merger is expected to occur in Q3 2021. Merger delivers an accretive transaction on prospective Adjusted EBITDA basis. Arnold & Porter Kaye Scholer LLP acted as a legal advisor to SLANG Worldwide Inc., William A. Mason of Gravel and Shea and Erica Rice of Foley Hoag LLP acted as a legal advisor to High Fidelity, Inc.
SLANG Worldwide Inc. (CNSX:SLNG) completed the acquisition of High Fidelity, Inc. on August 11, 2021.
SLANG Worldwide Inc. is a Canada-based cannabis consumer packaged goods company with a portfolio of various brands. The Company owns, licenses and/or markets five brands, which serve three categories: flower, inhalable concentrates and ingestible. Its portfolio consists of three distinct consumer packaged goods (CPG) brands, one retail brand and a product portfolio of 30 stock keeping units (SKUs). The Company brings its products to market through three channels: Core Markets-Colorado and Vermont, Emerging Markets-Strategic Partnerships in nine States and THC Free-Distribution & Ecommerce. Its Core Markets include Colorado and Vermont. Its Emerging Markets include Florida, Maine, New Mexico, Michigan, Pennsylvania, Washington, West Virginia, Maryland and Puerto Rico. Its THC Free includes dry herb vaporizer, the Firefly 2+, line of Alchemy Naturals CBD gummies, as well as batteries and various other product components including packaging and hardware.