MJardin announced a binding letter of intent to acquire GrowForce, a vertically integrated international cannabis platform headquartered in Toronto. Under the terms of the LOI, MJardin would acquire 100% of the outstanding shares of GrowForce in an all share transaction, representing equity consideration to GrowForce shareholders of approximately C$278 million.
MJardin is scheduled to commence trading today on the Canadian Securities Exchange under the ticker symbol “MJAR.”
“The combination of MJardin and GrowForce provides the foundation to create a preeminent global cannabis management platform with what we believe is unparalleled experience in cannabis cultivation, processing, distribution and retail,” said Rishi Gautam, Chairman & Chief Executive Officer of MJardin Group. “We are excited to bring both companies together under one comprehensive platform as we enter the public markets, further invest in our business and execute on our growth strategy. We believe that MJardin is well-capitalized and uniquely positioned to pursue strategic expansion and M&A opportunities across legal cannabis markets in the U.S., Canada and other international markets.”
Upon closing of the merger, MJardin will have 49 facilities operating or under development across North America, cultivating approximately 87,000 kg of finished product per annum and managing 23 cultivation facilities, two outdoor grows, five extraction facilities and 19 retail dispensaries across four U.S. states and four Canadian provinces. GrowForce’s facilities outside of the U.S. will continue to deploy MJardin’s cannabis management system as part of the combined company’s service offerings.
Combined management team
The company’s new executive leadership will be led by a combined team of industry veterans from both MJardin and GrowForce:
- Rishi Gautam, Chairman & Chief Executive Officer
- Chris Seto, Chief Financial Officer
- Frank Knuettel II, Chief Strategy Officer
- Jorge Boone, Chief Operating Officer
- Max Nardulli, President, International Operations
- Jeannette Harkin, SVP, Chief of Staff
- John F. Kennedy, SVP, Marketing and Innovation
“We are very supportive of this strategic transaction and believe it will create additional synergies and opportunities for MJardin in Canada and internationally,” said David Sharpe, Chief Executive Officer of Bridging Finance. “Our strategic partnership with MJardin includes new economic development opportunities including opportunities to invest in cannabis-related job and wealth creation for First Nations communities across Canada.”
MJardin’s comprehensive cannabis management platform includes proprietary software and staff training systems designed to optimize and de-risk commercial cannabis operations for cultivation, processing and retail facilities. The company operates in 13 U.S. states and more recently in Canada and Australia, having designed and planned more than 100 legal cannabis facilities since inception with 30+ licensed facilities currently under management.