Adding Chai Cannabis continues to increase presence in California retail cannabis market September 18, 2018
Captor Capital Corp. announced today it has completed its previously announced acquisition of a dispensary in Santa Cruz, California, Chai Cannabis Inc. Chai also possesses a license permitting cannabis delivery within the greater Santa Cruz area. Adding this dispensary, one of the most popular in the area, is expected to materially increase total revenues from Captor’s retail cannabis investments.
Chai was acquired for total consideration of USD$6,015,000, of which USD$4,390,950 was payable in cash closing, USD$721,800 of which was in the form of a promissory note and USD$902,250 was paid in shares of Captor. The portion of the consideration paid in Captor shares was converted into approximately C$1,187,722 and 7,662,722 Captor Shares were issued at a deemed issue price of $0.155.
Dispensary renovations are set to begin shortly that will triple Chai’s sales floor space. The newly renovated space will allow Chai to carry a much wider range of flowers, edibles, extracts and other cannabis products. Chai will remain open during the renovations and it is not expected to impact the dispensary’s operations. Manager of Chai, Josh Lechner, has been successfully operating the dispensary since it opened 2014 and will continue on in this role. John McPhail, CEO of I-5 Holdings Ltd said, “We are pleased that Josh Lechner has decided to stay with Chai following the acquisition. We believe he will be a key player in the continuity of Chai’s success as well as driving future growth.”
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.
The Chai brand adds a unique retail experience to the consumer which complements Captor’s premium branded MedMen, stores in West Hollywood and Santa Ana. The acquisition of Chai continues Captor’s business plan to aggressively invest in California’s retail; cannabis industry. “Captor’s investment in this profitable dispensary represents a fantastic growth opportunity,” said Captor’s CEO, John Zorbas. “We believe the Santa Cruz area with more than 4 million tourists visiting each year will become a growing retail cannabis market.”
Date: September 24, 2018
Source: Nasdaq