Icanic Brands, a multi-state brand operator, said it has signed a non-binding Letter of Interest (LOI) to acquire DNA Organics (Lifted), a California-based cultivator and manufacturer, in an all-stock transaction.
Lifted is a vertically integrated California cannabis company specializing in cultivation and solventless manufacturing using sustainable, organic practices with a focus on achieving economies of scale through adoption and adaptation of existing commercial agriculture and manufacturing solutions. Lifted was founded in 2012 after the passage of California Proposition 215 and has over 10 years of successful cannabis cultivation and manufacturing operations making Lifted uniquely positioned to capitalize on California’s legalization of recreational cannabis.
Icanic said it intends to:
- Use Lifted Organics’ raw inputs to power Icanic’s existing extraction lines
- Integrate raw inputs from Lifted Organics into Icanic’s higher margin branded portfolio
- Strengthen business-to-business relationships through the ability to offer Icanic’s partners additional supply chain
- Consolidate operating expenses onto Icanic’s existing team to improve efficiencies
“We are very excited to welcome the Lifted Organics team to our family. With the addition of the 20 acres to our supply chain, it will allow Icanic to expedite our dedication to providing industry best gross margins on our internal brand portfolio while being able to offer a more robust solution to our brand manufacturing partners who are some of the largest companies in the state,” said Brandon Kou, CEO of Icanic Brands. “This accretive acquisition should significantly reduce COGS with the addition of an industry leader within the cultivation supply chain and provide a platform to continue to grow our robust and dynamic genetics portfolio. Lifted Organics is the latest example of how we are able to grow through our merger & acquisition process and provide significant value to our shareholders.”