The drama surrounding Aphria Inc (NYSE: APHA)(CSE: APHA) is perhaps one of the most closely watched developments in the cannabis sector today. Green Growth Brands Inc (CSNX: GGB), the company that proposed a hostile takeover of Aphria after reports from short-sellers ravaged its stock price, saw it’s share prices hit a record high today when the company announced a partnership with major shoe retailer DSW Inc (NYSE: DSW). This development helps push the stock closer to the minimum valuation needed for GGB to proceed with it’s planned hostile takeover of Aphria.
Although one wouldn’t expect a shoe retailer to be a choice for cannabis companies to expand, GGB announced that they came into an agreement with DSW to sell hemp-derived CBD personal care products at certain retail stores in the U.S. Among products like muscle balms, body lotions, and body washes, CBD-infused foot creams will also be sold across 96 DSW stores. This agreement came as a result of a successful test phase back last Autumn, where GGB sold products in 10 DSW stores, with 74.4 percent of products getting sold during the time frame.
“DSW is the number one full line adult footwear specialty retailer in North America. They have revolutionized shopping for shoes and accessories and we are thrilled they chose to partner with our company, allowing us to introduce a new product category to their customers,” said GGB CEO Peter Horvath. “The Agreement, and the deepening relationship with DSW, is the first step in our strategy to expand sales of personal care CBD products through external partnerships, in mall kiosks, and through a growing number of stores and online.”
In response to the news, GGB stock rose 10 percent to a high of $5.89, which is 19 percent below the C$7 valuation that the company based it’s initial $2.1 billion takeover offer for Aphria. “It is not a question of if Green Growth reaches C$7 per share, but when,” added Horvath.
“We have seen recent shifts in consumer behavior accelerate changes in the retail industry,” commented DSW CEO Roger Rawlins. “North America’s widespread adoption of the use of CBD products I one of the best examples of these shifts, and we could not be more excited about our partnership with Green Growth Brands and the introduction of their products to our customers.” DSW stores carrying these products are only located in states that have legalized cannabis for recreational use.
Green Growth Brands Company Profile
Green Growth brands expects to dominate the cannabis and CBD market with a portfolio of emotion-driven brands that people love. Led by renowned retailer Peter Horvath, the GGB team is full of retail renegades with decades of experience building successful brands. –Green Growth Brands
DSW Inc Company Profile
DSW Inc. is one of North America’s largest designers, producers and retailers of footwear and accessories.
The company operates a portfolio of retail concepts in nearly 1,000 locations under the DSW Designer Shoe Warehouse®, Shoe Company®, Shoe Warehouse® and Town Shoes® brands and operates leased locations in the U.S. through its Affiliated Business Group. DSW Inc. designs and produces footwear and accessories through Camuto Group, a leading manufacturer selling in more than 5,400 doors worldwide.
The Camuto Group owns licensing rights for the Jessica Simpson® footwear business, and footwear and handbag licenses for Lucky Brand® and Max Studio®. In partnership with a joint venture with Authentic Brands Group, DSW Inc. also owns a stake in Vince Camuto®, Louise et Cie®, Sole Society®, CC Corso Como®, Enzo Angiolini® and others. – DSW