• The Challenges

  • The Challenges

CEO, Ed Schmults, New to Company
Only a couple weeks after starting new role as CEO, Ed Schmults faced critical strategic decisions and pressure to execute the a transaction

Bidders Applying High Pressure
Timing factors acute due to buyers’ urgency

Extremely Complex Deal Structure
Ultimately, the CEO and Urbn Leaf decided to pursue a three-way merger involving a public company which added layers of complications and costs. PGP filled gaps in our clients legal and financial planning and analysis resources throughout the assignment.

  • The Solutions

  • The Solutions

Maximize Potential Buyers’ Universe
As M&A advisor, PGP managed a targeted auction that included a combination of both strategic buyers and financial sponsors to drive a competitive process

Rapid Development of Proposals
Analyzed and negotiated numerous indications of interest, as well as evaluated potential buyers, in a short amount of time. Within four weeks of starting the project, PGP generated six additional bonafide term sheets

Tight Collaboration with Management and Stakeholders
Ensured largest stakeholders, including senior management and secured lenders, were able to achieve sometimes opposing objectives and were satisfied with transaction outcomes

The Results

The three-way merger formed the largest and most developed vertically integrated cannabis platform in California

▪ Strong Combination – Urbn Leaf combined with Harborside, a vertically-integrated cannabis enterprise, and Loudpack, a leading manufacturer, cultivator, and distributor of brands, to form StateHouse Holdings, which has become the most prominent publicly-traded California cannabis platform and led by CEO Ed Schmults

▪ Additive Deal from Day One – Concurrent with the combination, the parties entered into a $77 million non-dilutive debt financing from a new investor

▪ Long-term Interests – PGP aligned interest with the client and took a portion of its compensation in stock to participate in long-term outcome


M&A Advisory

PGP acted as financial advisor to Urbn Leaf on its 3-way merger with Harborside Inc. and Loudpack to form StateHouse Holdings