Diego Pellicer Worldwide, Inc. Signs Agreement to Acquire Hemp Choice Distribution, LLC

Rhea-AI Summary

Diego Pellicer Worldwide (OTC Market: DPWW) has announced a definitive agreement to acquire Hemp Choice Distribution, LLC for $4.4 million in cash and stock. The deal includes an initial payment of $250,000, with the remainder in common and preferred stock. This acquisition aims to enhance DPWW's portfolio in the rapidly growing hemp and CBD market. The transaction is expected to close within three months, with management optimistic about future synergies and market expansion opportunities.

Positive

• Acquisition expands DPWW's presence in the growing hemp and CBD market.
• Strategic move anticipated to drive future revenue growth.
• Hemp Choice's established distribution network enhances DPWW's capabilities.

Negative

• Potential dilution of existing shareholders due to stock component of the deal.
• Integration challenges may arise during the acquisition process.

Diego Pellicer expands into the hemp and CBD marketplace with the $4.4 million cash and stock deal

RENO, Nev., Feb. 15, 2022 (GLOBE NEWSWIRE) -- Diego Pellicer Worldwide, Inc. (OTC Market: DPWW), a premium cannabis company, today announced that is has signed a definitive agreement to acquire Hemp Choice Distribution, LLC, a leading provider of full spectrum hemp and CBD. The $4.4 million dollar cash and stock deal includes an initial payment of $250,000 to the owners of Hemp Choice with the balance paid in common and preferred stock. DPWW management anticipates the transaction to close within three months. To view the 8-K, visit https://sec.report/Document/0001753926-22-000199/ 

“With the acquisition of Hemp Choice, Diego Pellicer Worldwide is advancing the company’s long-term business goals. We’re expanding into a rapidly growing product category,” said Nello Gonfiantini III, Chief Executive Officer, Diego Pellicer Worldwide, Inc. “Hemp Choice is a premium provider of hemp and CBD. We welcome them as a wholly owned subsidiary.”

Hemp Choice is a leading distributor and provider of the highest-quality CBD and hemp. The company works with growers, processors, manufacturers and retailers to provide hemp and CBD for use in a wide variety of commercial and industrial products. CBD and other cannabinoids such as CBG, CBC and CBDA in oil and water soluble form, are nonpsychoactive.

“I look forward to working with Diego as we expand business opportunities in the cannabis space of hemp and CBD – one of the fastest growing segments in this marketplace,” said Gabriela Vergara, CEO and founder, Hemp Choice Distribution, LLC.

Diego Pellicer Worldwide, Inc. is a premium cannabis company. The company actively seeks strategic acquisitions, partnerships and collaborations in cannabis, hemp and CBD companies. To learn more about how to become a Diego Pellicer partner or investor visit www.Diego-Pellicer.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this press release may be construed as "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 (the "Act"). All statements that are not historical facts are “forward looking statements.” The words "estimate," "project," "intends," "expects," "anticipates," "believes" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Act. These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements. Investors should consider this cautionary statement and furthermore, no assurance can be made that the transaction described in this press release will be consummated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

FAQ

What are the details of Diego Pellicer's acquisition of Hemp Choice Distribution?

Diego Pellicer is acquiring Hemp Choice Distribution for $4.4 million, including an initial payment of $250,000 and the remainder in stock.

When is the acquisition of Hemp Choice expected to close?

The acquisition is anticipated to close within three months from the announcement date.

How does the acquisition impact Diego Pellicer's business strategy?

This acquisition aligns with Diego Pellicer's strategy to expand in the hemp and CBD market, tapping into a rapidly growing segment.

What is the expected outcome of the acquisition for DPWW shareholders?

Shareholders may benefit from expanded market opportunities, but potential dilution from the transaction's stock component is a concern.