The Parent Company to Acquire Coastal, Expanding its Retail Network to Eleven Operating Stores and Six Delivery Depots – UpperMichigansSource.com
Acquisition Expands the Company’s Reach to Over 80% of California’s Population with the Second Largest Retail Dispensary and Delivery Hub Network in the State
SAN JOSE, Calif., Oct. 4, 2021 /PRNewswire/ – TPCO Holding Corp. (“The Parent Company” or the “Company”) (NEO: GRAM.U) (OTCQX: GRAMF), today announced that it has signed definitive agreements to acquire 100% of the equity of Coastal Holding Company, LLC (“Coastal”), a California retail dispensary and delivery operator for $16.2 million in cash with contingent consideration of up to $40 million in equity of The Parent Company upon completion of milestone events and a $9 million option to acquire the remaining equity of a southern California dispensary that Coastal currently holds a minority interest in, as described in more detail below (the “Agreements”). Completion of the transactions contemplated by the Agreements remains subject to regulatory approvals, including approval of the NEO Exchange, and are expected to close in 2022.
The Parent Company (CNW Group/The Parent Company)
Founded in 2018 in Santa Barbara, Coastal is a retail dispensary license holder and operator with six retail licensed locations with five locations currently operating and two delivery depots. Coastal’s operating dispensaries are located in Santa Barbara, Pasadena, West Los Angeles, Stockton and Vallejo.