Foley Hoag LLP represented High Fidelity, Inc. (Hi-Fi), Vermont’s largest medical cannabis company, in its pending sale to cannabis consumer packaged goods and brands company SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) in a transaction potentially worth up to approximately $25 million. The transaction includes $3 million in cash and $12 million in SLANG shares at closing. At the 18-month anniversary of the closing of the merger, SLANG will pay a further $250,000 worth of shares and $2 million in cash. In addition, SLANG shares worth as much as $8 million may be issued if certain undisclosed performance milestones are met, bringing the potential price tag of the transaction to more than $25 million. The sale broadens SLANG’s core market footprint to include Vermont, adding to its existing core markets of Colorado and Oregon. It also provides SLANG with two of the five medical cannabis licenses in Vermont as well as four operational dispensaries, with the ability to add two new retail dispensaries upon receipt of licenses.
Hi-Fi is one of Vermont’s premier vertically integrated cannabis companies, founded in 2012 in Burlington, the state’s largest urban and cultural center. The company owns two of the five medical cannabis licenses in Vermont, and services approximately 70 percent of registered patients. Hi-Fi also operates statewide home delivery services and wholesale distribution of its own branded products as well as SLANG branded products. Hi-Fi has had a long-standing mutually beneficial relationship with SLANG as a licensed manufacturer and distributor of leading vape brand, O.pen, in Vermont since 2015.
Foley Hoag partner Erica Rice represented Hi-Fi in the transaction.