FOR IMMEDIATE RELEASE:
Atlas Global Brands Signs LOI with a Licensed Cannabis Producer
VANCOUVER, BRITISH COLUMBIA, CHATHAM, ONTARIO and TEL-AVIV, ISRAEL, Jan. 12, 2023 (GLOBE NEWSWIRE) —
- Company adds new state-of-the-art facilities and cultivation processes to increase annual production capacity
Atlas Global Brands Inc. (CSE: ATL), (formerly Silver Phoenix Resources Inc. “Silver Phoenix”) (CSE: SP), a global cannabis company with expertise across the cannabis value chain, announces that it has entered into a binding letter of intent (“LOI”) pursuant to which the Company will acquire all of the outstanding securities of a privately-owned licensed cannabis producer (the “Licensed Producer”), based in Ontario with facilities and cultivation processes that are GACP and CUMCS certified to add an additional 3,500 KGs in annual production capacity (the “Proposed Transaction”).
The Proposed Transaction will be structured as a share exchange pursuant to which the vendors will be issued 10,000,000 common shares in Atlas at a deemed price of $1.00 per common share. The final structure of the Proposed Transaction will be determined by the parties following receipt of tax, corporate and securities law advice.
The privately held Licensed Producer uses an innovative genetic selection program to search for outstanding phenotypes, enhancing its ability to achieve the full genetic potential of its cultivars. This genetic selection program generates hundreds of candidates of a particular strain, then uses data to identify the seedlings with the strongest lab-tested levels of both THC and terpenes, and the most desirable traits for its indoor growing environment. With the addition of a nursery operation, the Licensed Producer has access to hundreds of genetics from around the world.
“In a highly competitive space that demands the best quality at the best prices, we are excited to add this low-cost indoor Licensed Producer to our platform, further strengthening our ability to fulfill demand by thoughtful expansion of production capacity,” said Sheldon Croome, Interim CEO of Atlas Global. “This transaction demonstrates our commitment to investing in our core business, as we position Atlas as a global growth and innovation platform. We will continue to identify other strategic and accretive acquisitions that will accelerate our global growth, scale and reach.”
Leveraging the existing GACP and CUMCS certifications, alongside a genetic selection program, Atlas expects to be able to rapidly commercialize an enhanced brand portfolio, drive international growth, and deliver accretive margin expansion by capitalizing on its strategy to maximize value in delivering quality products to global markets through its vertically integrated supply chain.
The parties intend to enter into a definitive agreement in respect of the transaction (the “Definitive Agreement”) by February 1, 2023, or such other date as may be agreed to by the Vendors and the Company.
The Proposed Transaction is subject to receipt of all necessary regulatory approvals, including, as applicable, approval of the CSE, completion of due diligence reasonable or customary in a transaction of a similar nature, and entering into a definitive agreement, among other conditions. The Proposed Transaction would be an arms-length transaction for the Company and would not constitute a fundamental change or result in a change of control of the Company, within the meaning of the policies of the CSE. The Proposed Transaction is expected to close early in Q1 2023. Upon entering into the Definitive Agreement, the Company intends to issue a further press release which will disclose the finalized terms of the transaction.
About Atlas Global
Atlas Global is a global cannabis company operating in Canada and Israel with expertise across the cannabis value chain: cultivation, manufacturing, scalability, marketing, distribution and pharmacy. Atlas currently serves eight countries: Australia, Canada, Denmark, Germany, Israel, Norway, Spain, and the United Kingdom. In addition to a differentiated product mix, geographic dispersion of brands demonstrates additional diversification. Atlas currently operates two fully accredited and licensed cannabis facilities, including one EU-GMP facility.
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