COLUMBUS, Ohio – Cannabis producer Green Growth Brands, Inc. (CSE: GGB) (OTCQB: GGBXF), announced on Monday that it would sell its CBD brands and business to cannabis branding firm BRN Group Inc., in a “’stalking horse’ asset purchase agreement (the ‘Stalking Horse Agreement’) in respect of the CBD Transaction pursuant to which the Purchaser will acquire all of the assets and assume the current liabilities and certain other obligations of the CBD Business,” according to a press release.
“While we are excited by the consumer demand signals we saw in the CBD business during the quarter ending December 28, 2019, and we remain confident in its future potential, the CBD business remains in its nascency,” GGB Chief Executive Officer Peter Horvath said in the release.
“With high-potential in the future comes material overhead costs and other obligations in the near term. These near-term overhead costs and other obligations, together with constraints on liquidity, have posed significant challenges that have hindered us from growing the CBD business to its full potential,” Horvath added.
BRN Group Inc. was launched in 2019 by Dia Simms, the former president of Combs Enterprises, founded by hip hop mogul Sean ‘Puffy’ Combs. She was integral in developing popular alcohol brands Ciroc Vodka and DeLeon Tequila and brings considerable experience in luxury branding to the CBD product market.
Though there has been no indication that Combs is involved with BRN Group in its latest venture to acquire Green Growth’s CBD businesses, in 2019, when BRN launched, Combs spoke to Yahoo Finance Canada and said, “I am extremely proud of the work that Dia has done for Combs Enterprises, and wish her the best as she launches BRN Group and changes the cannabis game. I am confident our paths will be crossing again very soon.”
At the time, online news site Cheddar interviewed Simms, who indicated several cannabis and CBD brands that stood out in terms of branding, including Lowell Herb Co., Green Thumb Industries’ Beboe, and Green Growth Brands’ Seventh Sense CBD products.