Schwazze (OTCQX:SHWZ) announced that it has closed the transaction to acquire substantially all the operating assets of Reynold Greenleaf & Associates, LLC, and the equity of Elemental Kitchen & Laboratories, LLC.
As part of the transaction, the company will also have a right to purchase or acquire cannabis licenses held by Medzen Services, Inc., and R. Greenleaf Organics, Inc. , not-for-profit organizations that hold medical cannabis licenses in New Mexico (the assets and licenses described herein are referenced collectively as "Greenleaf").
Total consideration for the acquisition was $42 million with a potential performance based earnout. The consideration consists of $25 million in cash paid at closing and $17 million in a 3-year seller note at 5% interest.
