Green Growth Brands Inc. today announced that it has entered into an agreement through which the Company will gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG) (“Simon”). Pursuant to the arrangement, GGB will further expand its chain of CBD-infused personal care product shops under the Seventh Sense Botanical Therapy (“Seventh Sense”) brand and other GGB brands. The Seventh Sense brand offers high quality CBD-infused products at affordable prices.
“Our partnership with Simon allows GGB to launch our brands and CBD products in premier shopping destinations across the U.S.,” said Peter Horvath, CEO of GGB. “Our management team has had decades of experience working closely with developers and operating premium retail stores in their properties. We know this arrangement gives us access to the best locations, foot traffic, and consumers. We look forward to introducing our remarkable retail experience and line of CBD products to Simon shoppers in the near future.”
Simon is the largest shopping mall operator in the United States1, and its high-profile properties include Roosevelt Field in metro New York; The Galleria in Houston, TX; and Woodbury Common Premium Outlets in Central Valley, NY. The expansive nature of the relationship with Simon makes it the first of its kind in the CBD industry and will give GGB access to entire markets of new customers at many of the nation’s most productive retail locations.
“We are constantly on the lookout for cutting-edge new concepts, like the GGB shops,” said John Rulli, President of Simon Malls. “We are committed to adding new and dynamic retailers and uses to our shopping destinations, and the GGB shopping experience is exactly the type of innovation our customers want and expect from us. We’re excited to work on the GGB launch, and look forward to a long and deepening relationship as we build this network together.”
The first shop is expected to open in March, 2019 at Castleton Square Mall in Indianapolis, Indiana. The remaining shops will be opened over the course of 2019.
In conjunction with the Simon transaction, the Company, through its wholly owned subsidiary GGB Kiosks LLC, has entered into a consulting agreement (the “Consulting Agreement”) for services rendered with Simon Canada Management Ltd. (“Simon Canada”). In exchange for the services rendered under the Consulting Agreement, which relate to GGB’s shop expansion strategy, the Company has issued to Simon Canada USD$2,232,824.42 (CAN$2,925,000) in GGB common shares and 1,000,000 common share purchase warrants of GGB with an exercise price of USD$4.47 (CAN$5.85), with both the common shares and the common share purchase warrants reflecting the GGB share price as of close of trading on February 7, 2019. The common shares are subject to a lock up agreement for a period of 12 months from the effective date.
GGB also announces that it has entered into an Advisory Services Agreement (the “Advisory Agreement”) with J. Salter Ltd., d.b.a. Authentic Retail Concepts, Ltd. (“ARC”), for a variety of consulting services that leverage a network of strategic relationships, including Simon Property Group. As compensation for the services under the Advisory Agreement, GGB has issued to ARC USD$2,232,824.42 (CAN$2,925,000) in GGB common shares reflecting the GGB share price of USD$4.47 (CAN$5.85) as of the close of trading on February 7, 2019. The shares are subject to a lock up agreement for a period of 12 months from the effective date.