MariMed, Inc. (CSE: MRMD) (OTCQX: MRMD) announced it is buying the operating assets of troubled medical dispensary Ermont, Inc. located in Quincy, MA. Ermont is presently in receivership with a court-appointed receiver Opus Consulting Partners LLC. Opus and MariMed negotiated this transaction with court approval. Boston Business Journal reported in June 2021 that Ermont was being sued for $21.8 million by Teneo Funds SPVi. Tilt Holdings (OTC: TLLTF) sold the debt to Teneo for $1.25 million in 2021, plus a portion of future collections. Tilt Holdings acquired the debt in 2018 and then extended a line of credit to Ermont.
“We are thrilled to announce this pending and accretive transaction. The proceeds for this acquisition come from our recently announced credit facility with Chicago Atlantic, the purpose of which is to accelerate our growth plan with transactions like this,” said Jon Levine, MariMed’s Interim Chief Executive Officer. “Massachusetts is a fantastic market and maximizing our footprint there has long been one of our top strategic priorities, and this agreement gets us significantly closer to that goal.”
Plans For Adult-use
The acquisition includes two Host Community Agreements with the city of Quincy, one of which is to conduct adult-use cannabis sales. MariMed is applying with the CCC for approval of adult sales and plans to expand the existing medical dispensary to accommodate the increased traffic. Additionally, the company said it plans to repurpose the cultivation facility for its pheno-hunting activities. The statement said it would allow MariMed to move pheno-hunting out of New Bedford and use the freed space for much-needed additional capacity of their award-winning Nature’s Heritage flower. The acquisition, which is subject to approval by the Massachusetts Cannabis Control Commission (“CCC”), will provide the Company with its third dispensary in Massachusetts, substantially completing its buildout to the maximum allowable by state regulations.
Schwazze (NEO: SHWZ) (OTCQX: SHWZ) announced it was buying Cannabis Care Wellness Centers, LLC and Green Medicals Wellness Center #5, LLC also known as Smokey’s. The deal is valued at $7.5 million and will be paid as $3.75 million cash and $3.75 million in stock at closing. The acquisition is expected to close in the second quarter of 2023 upon receiving licensing approvals.
“We are excited to bring our Star Buds operations to Garden City and Fort Collins. Bringing our operating playbook to two key cities in northern Colorado allows us to deliver our brands, product assortment and our dedicated service to customers in new neighborhoods as we continue to go deep in the state,” said Nirup Krishnamurthy, President of Schwazze.
This acquisition continues Schwazze’s deliberate expansion in Colorado and, upon closing, will bring the company’s total number of Colorado dispensaries to 27. The company also has stores in New Mexico. Last week, Schwazze opened an R.Greenleaf Paseo store in New Mexico. This brings R.Greenleaf’s total number of New Mexico retail dispensaries to 17.