DionyMed Brands Inc. (“DionyMed” or “Company”) (CSE: DYME) (OTCQB: DYMEF), a multi-state cannabis brands platform, today confirmed the official close of its previously announced acquisition of select assets from MM Esperanza 2 LLC, doing business as “MMAC,” and MMAC’s 1.83 acre Los Angeles cannabis campus, including retail, distribution, manufacturing and cultivation licenses, for the purchase price of US$13,067,000 in cash and US$6 million in DionyMed Series A Multiple Voting Shares to MMAC.
In conjunction with the close of the MMAC transaction, DionyMed has completed its sale-leaseback agreement with Innovative Industrial Properties, Inc. (NYSE: IIPR, “IIPR”), to purchase the Los Angeles cannabis campus for US$13 million and to enter into a long-term lease back of 15 years with two optional 5-year extensions. IIPR is also providing DionyMed up to US$2 million of capital to make improvements at the property.
The Los Angeles cannabis campus provides DionyMed:
- A market leading, Southern California direct-to-consumer fulfillment center capable of supporting up to 600 cannabis delivery drivers
- A dispensary storefront, distribution facility and manufacturing hub
- Premium indoor cultivation
- All property, leaseholds, equipment and licenses
DionyMed paid MMAC US$13,067,000 in cash and issued 55,374 (US$6 million) in DionyMed Series A Multiple Voting Shares. The shares issued to MMAC will be subject to a 120-day holding period and DionyMed has the right, but not the obligation, to repurchase the shares over the next 12 months for a 10% premium over the share price at closing of the transaction with MMAC.
Edward Fields, CEO of DionyMed, commented, “This acquisition strategically positions DionyMed as a leader in California’s cannabis market. By incorporating MMAC’s Southern California direct-to-consumer fulfillment center, distribution facility, manufacturing hub, cultivation facility and dispensary storefront, with our existing operational base in Northern California, DionyMed is positioned for long-term growth to serve the largest cannabis market in the country.”
To be added to the DionyMed e-mail distribution list, please e-mail DionyMed@kcsa.com with DionyMed in the subject line.
Date: July 29, 2019
Source: DionyMed
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