DionyMed Brands Inc., a multi-state cannabis brand and distribution platform, today announced it has exercised its option to acquire HomeTown Heart, a “direct to consumer”, non-retail storefront delivery dispensary serving the San Francisco Bay Area. Total consideration of the acquisition is US$6 Million cash upon closing of the transaction and a performance based earn-out of up to US$12 Million, to be paid in a combination of cash and stock.
HomeTown Heart, based in Oakland, California, has completed more than 800,000 online and mobile orders since its inception in 2015, and today completes over 1,500 deliveries daily in the Bay Area alone. HomeTown Heart will provide delivery fulfillment services for DionyMed’s “Chill” direct-to-consumer e-commerce brand and other partners throughout the Bay Area.
Edward Fields, CEO of DionyMed, commented, “The acquisition of Hometown Heart offers the opportunity to expand our reach in California by enhancing our direct-to-consumer fulfillment services. Along with the expansion in functionality of our Chill direct-to-consumer e-commerce platform, Hometown Heart will support our growing portfolio of premium cannabis brands.”
“We are committed to building our top and bottom-line growth for our shareholders and will continue to seek strategic acquisitions that enhance our market position as a cannabis brands, distribution, and direct-to-consumer platform” concluded Mr. Fields.
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Date: December 10, 2018
Source: MarketWatch