Multistate operator to acquire California cannabis extraction firm for $120 million

Canada-based Icanic Brands, which offers its cannabis products in California and Nevada, entered into a definitive agreement to acquire a California extraction company for $120 million.

The extraction company, Leef Holdings, is a leading producer and distributor of CBD concentrates in California. The company also has an edibles production line.

Under the terms of the agreement, Icanic will acquire all of Leef’s stock for at least $120 million or more based on two times Leef’s revenue for a 12-month period ended Sept. 30, 2021, according to a news release.

The acquisition is expected to be completed before March 31, depending on approvals by regulators and Leef shareholders.

Leef is building out a 45,000-square-foot processing facility and recently received a permit for a 186.7-acre cultivation site in California, according to the release.

The company owns and operates Leef Organics, Heady and Paleo Paw brands and has an option to purchase the Real Deal Resin brand.

Icanic’s brand portfolio includes GanjaGold and Taylor’s.

The Vancouver, British Columbia-based company trades on the Canadian Securities Exchange under ICAN, and on the U.S. over-the-counter markets as ICNAF.