ICNAF - Icanic Completes LEEF Acquisition
Icanic Brands Company, Inc. (OTCQB: ICNAF) has acquired all of the common stock of LEEF Holdings, Inc. , a California based extractions company in a merger agreement dated January 21, 2022.
“This is an extremely exciting milestone for LEEF and our entire team,” said LEEF CEO Micah Anderson. “We have all worked tirelessly to build LEEF into what it is today and I truly look forward to continuing to build shareholder value with our new partners at Icanic . I believe that our combined company is well-positioned to dominate the California marketplace with our highly sophisticated manufacturing capabilities combined with our ability to continue to build the brands that we currently have and those that we will seek out. Icanic’s business is highly complementary to the rest of our operations, and we are excited to work alongside their experienced management team to build a stronger company together.”
LEEF is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. It is led by a group of legacy operators with decades of experience in organic soil-based farming and sophisticated extraction practices. LEEF’s manufacturing capabilities include a 12,000 square foot extraction and manufacturing facility with significant throughput and distillate extraction capability.
Headquartered in Willits, California, LEEF’s core manufacturing competencies include ethanol extraction (Type 6 manufacturing license), hydrocarbon extraction (Type 7 manufacturing license), and solventless extraction. LEEF has also recently received a 186.7 acre cultivation land use permit, which will make it the owner of one of the largest cannabis cultivation sites in California. The site sits on over 1,900 acres of prime California real estate. Since its inception, LEEF has experienced significant year-over-year growth with strong and consistent gross margins and positive cash flow. From 2019 to the end of 2021, LEEF experienced revenue growth exceeding 100%. With the build-out of the cultivation site, LEEF will be able to provide consistency, quality and quantity to its customers and its’ margins are expected to improve as it gains vertical efficiencies with its in-house supply chain.
“Today is a historic day for Icanic as we officially welcome Micah Anderson and the rest of the Leef Holdings team to our family. Micah has created a truly amazing business and we couldn’t be more excited for this transformational acquisition that now positions the company extremely well to be a market leader in the state of California and beyond” said Brandon Kou, CEO of Icanic Brands. “The significance of this transaction cannot be understated as it finalizes the foundation that we have been building and will now allow the combined entity to take advantage of market opportunities that present themselves over the coming years that should result in some very exciting growth. I want to thank everyone on both teams for their dedication and determination during this process in seeing the transaction to a close.”