Slang Worldwide (SLNG.C) completed its acquisition of LBA Global Corp, its Lunchbox Distribution subsidiary, and its Lunchbox Alchemy brand portfolio today.
The acquisition is anticipated to raise Slang’s presence in Oregon by adding a portfolio of top selling products as well as capabilities and networks for cannabis extraction, manufacturing and distribution. The integrated operation is expected to increase revenue and gross profits for the company in Oregon, which they believe to be a core market.
“LBA satisfies several key strategic objectives for us, beyond the addition of some great brands to our portfolio. Our strategy in core markets like Oregon is to consolidate our supply chain and establish a fully integrated, wholesale operation to capture greater unit economics. With this acquisition, we now have an experienced team on the ground, an advanced manufacturing facility and a thriving distribution business, all of which will serve as a platform for long-term growth.” Oregon’s Lunchbox Alchemy, known for its Squib, Tangos and Betties edible products, joins the Slang Worldwide portfolio of leading cannabis brands,” said Chris Driessen, Slang president and chief executive officer.
The LBA owns the award-winning Lunchbox Alchemy cannabis brand portfolio, which includes cannabis-infused edibles and concentrate production. Today, they manufacture and own gummies and hard candies that have ranked among the top sellers in their categories in Oregon over the past several years. They also own a CBD-infused line of products available in over 500 retail stores in 45 states of the United States.
“Our local infrastructure and customer relationships plus Slang’s national footprint and proven experience growing brands is a winning combination that will add value for both companies,” said Eric Platenberg, LBA’s CEO.
Slang will use LBA’s existing infrastructure, experience and relationships within the industry to enhance both its capabilities and market position in Oregon. Lunchbox Distribution is one of the largest distributors in the state, and spreads Lunchbox products and other selected third party brands to 382 dispensaries across Oregon, representing 62% dispensary penetration.
Under the terms of the transaction, Slang issued 23,913,043 restricted voting shares to the former owners of privately held LBA in exchange for all equity interest in LBA and its subsidiaries.