CANN) (the “Company” or “General Cannabis”), the comprehensive national resource to the regulated cannabis industry, today announced that it has entered into a non-binding term sheet to acquire substantially all of the assets of a licensed recreational cannabis retailer in Denver, Colorado (the “Business”). The seller of the Business operates a retail cannabis dispensary in Denver.
This potential transaction follows the Company’s recent announcement of its entry into non-binding term sheets to acquire other licensed cannabis entities in Colorado. The Company is taking these actions based on the signing of Colorado House Bill 1090 (“HB-1090”), a recently approved law allowing public companies to own Colorado-licensed cannabis companies. Once the regulations surrounding the implementation of the law are finalized, the Company plans to enter into a binding transaction for the Business.
It is anticipated that General Cannabis will pay consideration consisting of fifty percent cash and fifty percent in shares of the Company’s common stock for substantially all of the tangible and intangible assets of the Business. The term sheet for the Business also provides that the Company will enter into a five-year lease for the retail facility with options for renewal and purchase.
“We are pleased to announce our plans to acquire a fourth licensed Colorado cannabis operator,” said Michael Feinsod, Executive Chairman and Chief Executive Officer of General Cannabis. “This planned acquisition would bring our skillset to North Denver. The Business we plan to acquire is well located and would provide another strong piece to our expansion strategy. This facility would pair us with another operator and expand our customer base, allowing us to leverage our skill set as HB-1090 is implemented. We look forward to integrating this facility, and its team, into the General Cannabis family upon consummation of the transaction. This potential acquisition will bring our anticipated owned dispensaries to three, our anticipated cultivation space to approximately 45,000 square feet, and one infused products manufacturer license within the state of Colorado.”
“Colorado has been the national leader in legalized cannabis sales. With statewide trailing twelve-month retail sales of over $1.5 billion, we believe Colorado cannabis cultivators and retailers are poised to take advantage of this new significant access to the public capital markets,” said Feinsod. “The leading operators in Colorado have achieved success operating at scale and, we believe, are excellent acquisition candidates. We plan to continue to acquire additional licensed cannabis assets within Colorado and other regulated markets. Our strong platform can create a synergistic opportunity for Colorado operators looking to grow with us.”
