Acquired Sales To Buy Savage Enterprises For $44M, Looks To Enter California Via Purchase Of Premier Greens, MKRC Holdings

Acquired Sales Corp. AQSP disclosed Wednesday it intends to purchase all of the ownership interests in the Irvine, California-based Savage Enterprises for $44 million, in a stock and cash deal.

Savage Acquisition

The sum includes $15.84 million in cash and some 8,691,358 shares of Acquired Sales' unregistered common stock.

"After extensive discussions and analysis, we concluded that the best route to build the cannabis industry leader is for us to partner with Nick Warrender, Jake and Gerry Jacobs, Lifted Made and AQSP," said Matt Winters, co-founder, co-owner, president and CFO of Savage.

Savage was established in 2014 by Winters and Christopher G. Wheeler, the company's co-founder, co-owner and CEO. The company owns award-winning delta-8-THC and delta-10-THC brand Delta Effex, CBD brand Savage CBD, e-liquid brand Vape 100 as well as premium kratom and kava-based products brand Zen Panda. Its unaudited revenue succeeded $13 million year-to-date.

"Based upon Savage Enterprises' unaudited year to date financial performance, and barring significant changes in the industry, we conservatively expect Savage to generate over $7 million in post-closing annual pre-tax net income for AQSP, which would be immediately accretive to AQSP's earnings per share," Wheeler explained.

California Expansion

Simultaneously, the Jacksonville, Florida-based company said it's looking to enter the California marijuana market through the acquisition of Premier Greens LLC and increasing Savage's stake in MKRC Holdings, LLC from 46% to 100% for $2 million in cash.

Premier Greens holds five conditional use permits from the City of Palm Springs for the cultivation, manufacturing, dispensing, delivery and distribution of marijuana. It also in the second of three phases to receive permits for growing, selling and delivering marijuana.

MKRC Holdings owns a 5,560 square foot building that the company intends to use for growing, selling and transporting cannabis.

Acquired Sales expects to close transactions upon satisfying all conditions, including finalization of a capital raise of at least $30 million, and obtaining all necessary approvals, to name a few.

In its latest earnings report, the company disclosed that Lifted Made's rapid sales growth is evident in the last two quarters, alongside a 53% sequential increase in revenue during the first quarter of 2021. Acquired Sales bought Warrender Enterprise Inc, a maker of hemp and hemp-derived products, which is doing business as Lifted Made, last year.

Nicholas S. Warrender, co-founder, vice chairman of COO of Acquired Sales and CEO of Lifted Made, is excited to partner with both Wheeler and Winters, who will continue to serve as the CEO and CFO, respectively, of Savage, Premier Greens and MKRC, while also serving as the co-founder and chief sales officer and as the co-founder and chief risk officer, respectively, of Acquired Sales.

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