DionyMed Brands Inc., a multi-state cannabis brands platform, announced today it has signed a binding term sheet with MM Esperanza 2 LLC, doing business as “MMAC,” to acquire select MMAC assets, including the 1.83 acre Los Angeles cannabis campus that includes a dispensary storefront, distribution facility, manufacturing hub and direct-to-consumer fulfillment center. The acquisition includes all property, leaseholds, equipment and licenses for a purchase price of $19,000,000 and enhances DionyMed’s brands distribution and direct-to-consumer footprint in Southern California.
Completion of the Acquisition is subject to several conditions, including, but not limited to, the execution and delivery of definitive documentation mutually agreeable to the parties, completion of due diligence on MMAC to the Company’s sole satisfaction and receipt of all board, shareholder, regulatory and third-party approvals for the Acquisition.
Located in the heart of Los Angeles, MMAC’s 1.83 acre campus serves the Southern California cannabis market with a well-established retail storefront, a distribution, manufacturing, and direct-to-consumer fulfillment center supporting all of Los Angeles County. Under the terms of the agreement, DionyMed will pay MMAC $13,000,000 in cash and $6,000,000 in DionyMed Common Shares.
Edward Fields, CEO of DionyMed, commented, “This acquisition accelerates the DYME brands portfolio in the world’s largest cannabis market – California. Together, with our existing Northern California footprint, this market leading cannabis campus supports our vision for bringing safe, trusted cannabis brands to consumers throughout the entire state.”
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Cameron Smith, COO of MMAC, commented, “Now that we’ve established our Los Angeles platform, the sale of the property provides MMAC additional working capital to quickly expand its footprint beyond the Los Angeles area. Further, by partnering with DionyMed, one of the top operators in the cannabis industry, we can utilize their efficient direct-to-consumer cannabis platform to drive increased awareness of our brands.”
Date: March 25, 2019
Source: AP News