General Cannabis Corp. (OTCQX: CANN) entered into a non-binding term sheet to acquire substantially all of the assets of a licensed recreational cannabis retailer in Boulder, Colorado. This comes two months after the company said it was buying a Denver-based dispensary. In August, General Cannabis made its move saying it was taking these actions based on the signing of Colorado House Bill 1090, a recently approved law allowing public companies to own Colorado-licensed cannabis companies.
The company’s statement said that it will pay half of the deal in cash and half in common stock. Once the regulations surrounding the implementation of the law are finalized, the Company plans to enter into binding transactions for the licensed cannabis entities, including the business.
“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 expand our retail business to Boulder. The Business we plan to acquire would provide another strong piece to our expansion strategy. This facility would pair us with a premier retailer and expand our customer base, allowing us to leverage our skill set as HB-1090 is implemented. We look forward to completing the transaction and integrating this facility, and its employee team, into the General Cannabis family. This acquisition would bring our anticipated cultivation space to approximately 45,000 square feet, our anticipated owned dispensaries to three, and one infused products manufacturer license within the state of Colorado.
“We have been working hard looking for suitable acquisition candidates. We approach the possibilities created under HB-1090 with a methodical and detailed plan for expansion into Colorado licensed assets,” said Hunter Garth, Vice President for Corporate Development. “This potential acquisition is another carefully selected asset to add to our distribution portfolio. We plan to continue to acquire additional licensed cannabis assets within Colorado and other regulated markets. Our strong corporate platform can create a synergistic opportunity for Colorado operators looking to grow with us.”
Garth continued “We have built a strong corporate culture in Colorado that focuses on profitable growth while supporting the growth of our employees. We continue to actively seek acquisition candidates in Colorado and other states with regulated marijuana systems. General Cannabis’ ‘Succeed Here’ platform has proved to be an excellent way for entrepreneurs to grow their cannabis-related business in a multi-faceted challenging environment.”