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Grown Rogue, an Oregon-based craft marijuana cultivator, increased its stake in its Michigan operation, Golden Harvests, from 52.2% to 80% through two transactions.
The approximate value of both transactions is $2.8 million, with $200,000 paid in cash and $2.6 million in four-year sellers’ notes, according to a news release.
Canopy Management, which is 87% indirectly owned by Grown Rogue, has a 60% interest in Golden Harvests.
Grown Rogue bought the remaining minority interest in Canopy for $800,000 with a 20% cash down payment and monthly payments over the course of four years at an interest rate of 5.2% per year.
The transaction means Golden Harvests’ valuation is $10 million, according to the release.
Payments are expected to come from cash on hand and from operations.
Grown Rogue retains the option to acquire the remaining 20% of Golden Harvests at a fair market valuation.
Grown Rogue CEO Obie Strickler thanked Golden Harvests Chief Executive Dave Pleitner.
“We cannot stress enough the importance of having a boots-on-the-ground partner with real skin in the business to drive success at the local level,” Strickler said in a statement.
