DionyMed Brands Inc
(OTCMKTS:DYMEF) recently announced that it finalized the acquisition of a
Los Angeles-based cannabis campus that occupies 1.83 acres of land.
The cannabis industry brand announced that it had entered a
deal to acquire some of MM Esperanza 2 LLC’s industrial properties just a few
days ago. The Los Angeles Campus acquisition includes cultivation,
manufacturing, distribution and retail licenses. DionyMed agreed to acquire the
facility through a cash and stake deal through which it will pay $13.07 million
cash and Series A shares valued at $6 million.
The deal between the two companies also includes a 15-year
long-term leaseback agreement and two options for five-year extensions. DionyMed
will also receive about $2 million from MMAC which will be used to renovate the
newly acquired Los Angeles-based facility.
“This acquisition strategically positions DionyMed as a leader in California’s cannabis market,” stated DionyMed CEO, Edward Fields.
DionyMed to expand
its capacity through the Los Angeles campus acquisition
Fields also noted that
the assets in the Los Angeles facility will be tied into DionyMed’s operations
located in Northern California. The acquisition will contribute greatly to the
company’s long-term growth pursuits. It will also give DionyMed more capacity
to provide better services in California which is the biggest cannabis market
in the U.S.
Fields also pointed out that the newly acquired 1.83-acre
facility in Los Angeles also adds to DionyMed’s expansion activities in
Northern California. He also revealed that it will grant the company the
expansion capacity and scale that it needs to adequately serve the
exponentially growing demand for safe cannabis products and of high quality.
DionyMed’s acquisition of MMAC’s Los Angeles Campus is also
expected to contribute to more growth for the company and also allow it to
secure a bigger share of the market. This means the acquisition will also place
DionyMed in a better position to compete with other cannabis firms that operate
not only in California but also in the overall U.S market. The California
market is also a strategic target in terms of pursuing growth given the high
number of cannabis users that reside in the state.
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Published at Mon, 29 Jul 2019 12:01:45 +0000