Slang Worldwide (SLNG.C) closed its acquisition of Colorado-based cannabis cultivator Pleasant Valley Ranch for a mix of cash and 500,000 shares for an undisclosed dollar amount, according to a press release.
Pleasant Valley’s numbers include a capacity for 3,600 plants and approximately 4,800 pounds per year with projections to double that in 2021. They’ve also been a supplier for raw materials for Slang’s concentrate and edibles products in Colorado, and by acquiring and consolidating this asset, they’ve reduced the cost of those materials, which should translate directly to the company’s bottom line.
“The closing of Pleasant Valley represents another major step forward as we advance Slang’s position as a main provider of well-known brands in the U.S. and is another important accomplishment in our strategy to consolidate key supply chain assets in core markets. We already have a strong presence in Colorado, with our O.pen product ranked as the No. 1 vape cartridge in the state. This acquisition will support even further growth of our market-leading brand portfolio in the state of Colorado as we continue to leverage strong partnerships to achieve national prominence with our brands,” said Chris Driessen, Slang Worldwide’s president and chief executive officer.
Located in Carbondale, Colorado, Pleasant Valley’s specialty is in high quality, organically grown cannabis strains that can survive and thrive in high-altitude, mountainous conditions. The company has 1,600 square feet of greenhouse cultivation space and a five-acre outdoor facility at a total elevation of 7,500 feet.
The Colorado market drew in total retail sales over USD$1.7 billion in 2019, and grew by 22% within the first seven months of 2020 compared with the same time period from the previous year, according to BDS Analytics. The rising demand has brought the retail market price for flower in the state over $1,300 a pound, according to the Colorado Department of Revenue, which is more than a 30% increase over the previous year.
On the social side, Slang has committed themselves to developing partnerships with local institutions to enhance the social equity and environmental sustainability components of their footprint in Colorado, thus tethering themselves to the values of both Colorado and its cannabis industry.