Weekend Unlimited Inc. (“Weekend” or the “Company”) (CSE: YOLO – FSE: 0OS1) through one of its subsidiaries, Weekend Unlimited Washington LLC, announces the signing of an arms-length letter of intent to provide processing and distribution facilities to Boggy Boon branded cannabis company Seven Hills, with an option to acquire Seven Hills.
Under the agreement terms, Weekend will provide a loan of up to $750,000 USD to Seven Hills in three equal tranches over 9 months to upgrade its facilities, and will have the option to acquire 100% of Seven Hills for $1,500,000 USD.
“Boggy Boon branded cannabis is cultivated in a 28,000 sqft. facility located in Wenatchee, Washington where Weekend’s wholly owned subsidiary Orchard Heights Growers is also located. As a result of this arrangement, Boggy Boon will be able to dedicate its operation entirely to cultivation with an anticipated increase efficiency of 40%, with the current year run rate of $2M growing to $2.8M,” explained Paul Chu, Weekend’s President and CEO.
As a result of this alliance, Orchard Heights will have more diverse products to offer its sales channel and will be able to sell Weekend brands to the existing 130 Boggy Boon retail accounts.
“The Washington market is mature and consumers are becoming more loyal to established brands like Boggy Boon. Boggy Boon is ranked in the top 5% of all brands in Washington State and we feel this is an ideal partnership where each entity was looking to develop the infrastructure that the other already has in place. By forming this alliance both will accelerate their market penetration and fully utilize existing infrastructure to grow,” added Paul Chu.
- Boggy Boon is a Tier 3 producer / processor located in Wenatchee
- Boggy Boon built a custom cannabis greenhouse in 2016 for premium production
- By collaborating with Orchard Heights, it is anticipated that Boggy Boon will be able to improve its existing operations and production by 40% and diversify its product offering in Washington state
- Boggy Boon is in the top 5% of all producer / processors
- Weekend’s facility in Wenatchee provides synergy and optimization to not only increase both company’s revenue but also reduce operating expenses, thereby increasing profit margins