Green Growth Brands, Inc. (GGB.CN) (GGBXF) has announced that it has executed an arm’s length definitive agreement to acquire all issued and outstanding shares of Spring Oaks Greenhouses (Spring Oaks) for approximately $54.6 million. Spring Oaks is a licensed medical cannabis provider in the state of Florida.

“Entering Florida through the Spring Oaks acquisition will be a great addition to our existing MSO presence in Nevada and Massachusetts , as well as to our CBD business that already has a national presence,” said Green Growth Brands CEO, Peter Horvath . “We admire several of the existing operators in the state and Florida is a special market, with favorable financials implications for the best operators. We look forward to quickly scaling our operations in the state and bringing our expertise to every patient.”

Provided that the acquisition goes through, Green Growth would be able to produce, process, and dispense medical cannabis in Florida. The license, which Spring Oaks recently acquired last April, would also permit the company to open 35 medical cannabis dispensaries. If the state’s patient registry exceeds 300,000 patients, that number would rise to 40 dispensaries.

Under the agreement, Green Growth would pay roughly $26.15 million in cash, another $17.1 million in common shares of the company (at a price of $2.35 per share), and another $11.4 million in the form of a convertible secured promissory note. The note would mature 12 months following the closing date. The acquisition is expected to close sometime around August 2019, pending regulatory approval.

In addition to this agreement, the company also announced that it had terminated its definitive agreement with ZLJT LLC and Arizona Natural Pain Solutions to acquire the dispensary chain, Desert Rose. Horvath noted that while Desert Rose is a well-run operation, the company is making a strategic decision to invest its resources into the Florida market, where they believe they can attain greater success and brand recognition.