One of Green Growth Brands (CSE: GGB) subsidiaries, GGB Beauty, announced today it was forming an agreement with the personal brand of professional American golf player Greg Norman. The arrangement would see the development of a new line of cannabidiol (CBD) infused care products for adults, and would also tie in other companies such as Tilray Inc (NASDAQ: TLRY), which would supply the CBD ingredients to be used in this product line.
“As part of our stated strategy, we will continue to offer the largest assortment of high-quality CBD-infused personal care products in the industry. This agreement allows us to work with a world-renowned athlete and entrepreneur in Greg Norman while partnering with Authentic Brands Group, who have been the visionaries behind some of the world’s most iconic and celebrated brands,” said GGB CEO Peter Horvath. “We will also be taking advantage of the relationship between ABG and Tilray to ensure the safety and reliability of our new product line.”
This announcement marks the latest in a series of news announcements from GGB in terms of creating new partnerships. While most investors are aware of the all-stock hostile takeover bid of Aphria Inc (TSE: APHA)(NYSE: APHA), GGB has also been working on a variety of different agreements, including a recent distribution contract with DSW Inc. While these agreements can be seen as part of a general growth strategy in and off themselves, they can also be seen as steps to gradually increase the companies share price to the C$7 needed for their takeover bid.
“I played professional golf for 40 years, hitting more than five million golf balls that have caused significant wear and tear on my body,” added Greg Norman, World Golf Hall-of-Fame member. “Having been through it all, on the golf course and in business, I am thrilled to partner with GGB Beauty to distribute Greg Norman® CBD products throughout the country. GGB Beauty was an obvious choice as a partner, as the organization is laser-focused on providing high-quality products and the consummate retail experience for their customers across the United States.”
In response to the announcement, GGB’s stock price increased 7.3 percent today, settling at C$5.85 per share. This is approaching the stocks all-time high of C$6.2, a figure that is still significantly below the $7 needed for their proposed takeover bid and will likely require a good deal of momentum to break through any bearish resistance from traders.
Green Thumb Industries Company Profile
Green Thumb Industries (GTI), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals.
The company also owns and operates a rapidly growing national chain of retail cannabis stores called RISE™. Headquartered in Chicago, Illinois, GTI has nine manufacturing facilities and licenses for 72 retail locations across nine highly regulated U.S. markets. Established in 2014, GTI employs approximately 500 people and serves thousands of patients and customers each year. GTI was named a Best Workplace 2018 by Crain’s Chicago Business. – Green Thumb Industries
Authentic Brands Group Profile
Authentic Brands Group (ABG) is a brand development, marketing, and entertainment company, which owns a portfolio of global entertainment and lifestyle brands. Headquartered in New York City, ABG manages, elevates, and builds the long-term value of more than 50 consumer brands and properties by partnering with best-in-class manufacturers, wholesalers, and retailers. Its brands have a global retail footprint in more than 100,000 points of sale across the luxury, specialty, department store, mid-tier, mass, and e-commerce channels and more than 4,600 branded freestanding stores and shop-in-shops around the world. – Authentic Brands