DionyMed Brands Inc., a multi-state cannabis brand and distribution platform, today announced it has completed its previously announced acquisition of HomeTown Heart, expanding the Company’s direct-to-consumer delivery platform in California.
The purchase price of US$18 Million is comprised of approximately US$6 Million paid 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.
Edward Fields, CEO of DionyMed, commented, “We are extremely excited to have completed this strategic acquisition in conjunction with the recent news that California regulations are expected to expand direct-to-consumer delivery to all of California, the world’s largest cannabis market. HomeTown Heart’s non-retail storefront delivery dispensary complements our existing e-commerce platform, Chill, and increases our operational footprint. We look forward to entering 2019 with an expanded team that has the capabilities to drive our growing portfolio of premium cannabis brands throughout California.”
Jeff Morgen, CEO of HomeTown Heart, commented, “The acquisition of HomeTown Heart by DionyMed is well timed as California’s final draft regulations are expected to enable direct-to-consumer cannabis deliveries statewide. This is a significant milestone for the largest cannabis market in the world supporting consumers in the municipalities that have banned physical storefronts.”
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HomeTown Heart, based in Oakland, California, is a “direct to consumer”, non-retail storefront delivery dispensary serving the San Francisco Bay Area. It 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.
Date: December 17, 2018
Source: MarketWatch
