SOL Global Investments Corp. (CSE:SOL) (OTCPK:SOLCF) ) has invested $6.5 million in its portfolio company CannCure Investments Inc. The move is intended to fuel the growth of its position throughout the cannabis markets of Florida, Michigan, and California.
“SOL’s $6.5 million investment into CannCure is to continue strengthening our foundation and positioning the company as a leader in the dominant markets of Florida, Michigan, and California,” said Andy DeFrancesco, SOL Global’s Chairman, and Chief Investment Officer. “CannCure’s expansion is an integral part of SOL Global’s overall strategy and our goal to dominate all aspects of the legal cannabis, hemp and CBD markets here in North America and Europe.”
CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms, a Florida cannabis company with a state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment. The investment brings SOL Global’s ownership of CannCure to 97.8%.
CannCure said it will use the investment to complete the agreements it has in place for acquiring MCP Wellness, giving the company the rights to two Michigan cannabis cultivation licenses, a Michigan cannabis processing license, and three fully licensed cannabis provisioning centers in Michigan. It would also complete the Northern Emeralds deal and the Three Habitat Holdings acquisition.
Once these acquisitions are complete, Canncure will combine them into one multistate operator that will have operations in three of the top 10 state cannabis markets by revenue, with vertically integrated operations across all three states and approximately 46 retail locations in operation by the end of 2020.
In a statement, the company said that when CannCure completes the acquisitions in California and Michigan, as well as paying $80 million to the former owners of CannCure, SOL Global expects to own approximately 20.5% of the resulting business.