BRN maintains interest in Green Growth’s CBD business, but transaction likely stalled

The BRN Group, a New York-based branding company, says it is still interested in buying the CBD business of Green Growth Brands, an Ohio-based retailer that announced plans in late February to sell most of its interest in a line of mall kiosks selling hemp-derived CBD products.

However, the potential sale of the business might be delayed given the impact of COVID-19 on the retail sector, BRN CEO Dia Simms told Hemp Industry Daily in a statement.

“Our focus has not changed,” Simms added. “We remain big believers in the CBD business.”

Green Growth Brands, which said Feb. 25 it would enter into a one-month “stalking horse” agreement to sell 80% of the CBD business, now wants to focus on its marijuana operations in Florida, Massachusetts and Nevada.

Such an arrangement meant the company was free to pursue alternative buyers for the business. Green Growth Brands would have owed BRN a $750,000 payment if it chose another buyer during the 30-day period.

Green Growth Brands did not immediately respond to questions about whether it had been able to attract alternative offers for the CBD business.

The company has also said delays in the sale of the business are likely because of the coronavirus crisis.

Green Growth Brands’ CEO, Peter Horvath, stepped down on March 19.

The company trades on the Canadian Securities Exchange under the ticker symbol GGB.

Nick Thomas can be reached at [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *