• 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

Transaction

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

Related Projects

Jack Nicklaus, Chairman of Golden Bear International, Inc. began looking for ways to diversify his family’s wealth, achieve estate planning goals and institutionalize his family’s business
Jack Nicklaus, Chairman of Golden Bear International, Inc. began looking for ways to diversify his family’s wealth, achieve estate planning goals and institutionalize his family’s business
Gallery

Jack Nicklaus, Chairman of Golden Bear International, Inc. began looking for ways to diversify his family’s wealth, achieve estate planning goals and institutionalize his family’s business

November 2nd, 2023
In February 2018, PGP advised and co-invested alongside Wynnchurch Capital in its acquisition of Heartland Automotive, the largest Jiffy Lube franchisee in the U.S., in partnership with Mid-Atlantic Lubes, Inc.
In February 2018, PGP advised and co-invested alongside Wynnchurch Capital in its acquisition of Heartland Automotive, the largest Jiffy Lube franchisee in the U.S., in partnership with Mid-Atlantic Lubes, Inc.
Gallery

In February 2018, PGP advised and co-invested alongside Wynnchurch Capital in its acquisition of Heartland Automotive, the largest Jiffy Lube franchisee in the U.S., in partnership with Mid-Atlantic Lubes, Inc.

November 1st, 2023
After EarthLink, Inc. (“ELNK”) and SK Telecom of Korea (“SKT”) began talks about forming a joint venture to enter into the U.S. wireless service provider market, ELNK recognized the need for an advisor that understood cross-cultural business practices and negotiations
After EarthLink, Inc. (“ELNK”) and SK Telecom of Korea (“SKT”) began talks about forming a joint venture to enter into the U.S. wireless service provider market, ELNK recognized the need for an advisor that understood cross-cultural business practices and negotiations
Gallery

After EarthLink, Inc. (“ELNK”) and SK Telecom of Korea (“SKT”) began talks about forming a joint venture to enter into the U.S. wireless service provider market, ELNK recognized the need for an advisor that understood cross-cultural business practices and negotiations

October 31st, 2023