Jamaica's Kaya Group cannabis company to be bought by US-based Silo Wellness for $31.9M
Silo Wellness (SILFF) has announced plans to acquire all outstanding securities of NUGL Inc./Kaya Group (NUGL) in a deal valued at $31.9 million (CA$43.3 million).
This move closely follows Cybin Inc.’s (CYBN) recent bid to acquire Small Pharma (DMTTF) and is in line with Silo and NUGL’s recent collaboration.
Crunching the numbers: Market capitalization and trading halts
The acquisition’s value represents the combined market capitalization of both firms. As of the latest reports, shares of NUGL are priced at $0.0344, while Silo’s shares stand at $0.0147.
Trading for both companies has been halted .
Business synergies: Wellness retreats meet cannabis commerce
Established in 2018 in Oregon, Silo Wellness specializes in psilocybin wellness retreats, with existing operations in Jamaica and upcoming ventures in the United States.
The firm gained public attention when it was featured in a CNN documentary by Anderson Cooper.
In contrast, Jamaica-based Kaya Group operates three Herb House retail locations, a wellness center, and reportedly Jamaica’s first legal medical marijuana dispensary.
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In addition to its cannabis operations, Kaya Group also cultivates, processes, and distributes psilocybin mushrooms within Jamaica’s legal industry.
The NUGL factor: A platform for cannabis businesses
NUGL, on the other hand, functions as a networking and advertising platform designed for cannabis companies. The platform enables businesses to broaden their consumer reach through targeted marketing.
