Grown Rogue grows its ownership of Michigan’s Golden Harvest
Grown Rogue sees a lot of promise in Michigan, the second largest market in the U.S.
Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) has increased ownership in its Michigan operations of Golden Harvests. The move bumped Grown Rogue’s interest in Golden Harvests from 52.2% to 80% in two transactions valued at $2.8 million. The deal consisted of $200,000 paid in cash and $2.6 million paid through 4-year sellers’ notes. The deal values Golden Harvests at $10 million.
“We are excited to announce that we increased our ownership in Golden Harvests to 80%,” said Obie Strickler, CEO of Grown Rogue. “Michigan is such an important asset to our Company because it was the first market we proved we could migrate our operational excellence from Oregon to additional markets. Michigan has been a tremendous market for us, and we are thrilled to own a larger piece of this strong business. Michigan still has approximately 25,000 sq ft of facility that can be built out and we are in discussions to expand and optimize the additional capacity.”
Canopy Management, LLC holds a 60% interest in Golden Harvests and Canopy is 87% indirectly owned by the company. Grown Rogue bought the total remaining minority interest in Canopy for $0.8M, which includes a 20% down payment in cash and monthly payments for 4 years with an interest rate of 5.2% per annum.
The remaining 20% in Golden Harvests is owned by Dave Pleitner, an insider of the company, and certain company directors own 8% of the interest in Canopy.
Golden Harvests controls its Michigan operations, operating out of an 80,000 sq ft facility which has approximately 15,000 sq ft of flowering bench space.
Illinois
In March Grown Rogue announced an acquisition to expand into Illinois. Green Market Report wrote, that the company formed a joint venture, named Rogue EBC, LLC, to focus on cultivating and manufacturing cannabis products to meet growing demand in Illinois, marking Grown Rogue’s expansion beyond New Jersey. Rogue EBC acquired CannEquality, LLC, which holds a craft grower’s license from the Illinois Department of Agriculture.
