GGBXF - Amidst Aphria rejection Green Growth goes shopping
Shortly after Aphria’s outright rejection of their hostile takeover bid, Green Growth Brands (CSE:GGB) (OTCQB:GGBXF) entered into an agreement to gain access to over 100 retail locations in the United States.
The company now has access to prime shopping mall locations owned and operated by the Simon Property Group, Inc. Simon is the largest shopping mall operator in the U.S., running premium properties like The Galleria in Houston and Roosevelt Field in New York City.
Green Growth will expand its line of CBD-infused products into these newly acquired shop spaces. The deal itself is the first of its kind in the CBD industry, providing Green Growth access to whole new markets of customers.
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Expansion into 108 retail locations
Green Growth CEO Peter Horvath said in a press release that the Simon partnership allowed the company to place its CBD products in premier shopping malls across the U.S. Horvath also commented that the Green Growth management team has many years of experience in operating premium retail stores like the 108 they’ve just acquired.
“This arrangement gives us access to the best locations, consumers and foot traffic,” Horvath said.
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Simon President John Rulli said that his company is always looking for cutting-edge concepts, and they found it in the Green Growth partnership.
“This is exactly the type of innovation our customers want and expect from us,” Rulli said. “We’re excited to work on the Green Growth launch, and look forward to a long and deepening relationship as we build this network together.”
The first Seventh Sense shop is open for business
With a hard launch happening in March, Green Growth premiered in a Kentucky mall, kicking off the “one-of-a-kind platform” that Horvath describes as Green Growth’s first step in “executing a dominant retail strategy.”
The first 200-square-foot Seventh Sense CBD shop opened in Lexington, Kentucky’s Fayette Mall.
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The Seventh Sense CBD brand sells CBD-infused personal care products like lotions, bath salts and scrubs, lip balms, and bath bombs. In fact, Green Growth is securing space in many prime shopping malls across the U.S. and intends to enter more partnerships just like the one with Simon.
For its part in the deal, Simon Canada has received $2.2 million in Green Growth common shares with an additional one million common share purchase warrants, both reflecting the February 7 closing price of $4.47. Additionally, Simon is bound by a one-year lock-up agreement with the common shares.
Celebrity endorsements are part of the plan
On the heels of the Simon announcement came the news that subsidiary company Green Growth Beauty will launch a line of personal care products under golfer Greg Norman’s brand.
Market Exclusive first reported that Green Growth signed a licensing agreement with brand development and marketing company Authentic Brands Group to develop Norman’s CBD-infused products, with Tilray (NASDAQ: TLRY) supplying the CBD.
Green Growth sees the market opportunity provided by the recently adopted 2018 farm bill, and Norman’s brand is part of Horvath’s overall strategy to “continue to offer the largest assortment of high-quality CBD-infused personal care products in the industry.”
Norman is certainly not Authentic Brands Group’s only celebrity client; the company also has Muhammad Ali, Marilyn Monroe, Elvis Presley and Shaquille O’Neal on their roster of globally famous fashion and active brands.
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Norman exclaimed that he had hit more than five million golf balls in his 40-year professional career and that he has suffered significant body wear and tear. He is excited to be launching the Green Growth CBD product line later in 2019.