![]() Ventura Cannabis has executed a binding asset purchase agreement for Amberlight LLC, a Portland, Ore., cannabis dispensary. The vendor is entitled to payment of 20 per cent of earnings if gross revenue is above $1.5-million (U.S.) and if the business has plus-25-per-cent profit margin during the 12-month term of the employment agreement.Ĭlosing of the acquisition is subject to a number of customary conditions, including receipt of all required regulatory approvals. In connection with the transaction, the vendor has agreed to enter into an employment contract for the 12-month period following closing. The purchase price for the acquisition is (a) $1-million (U.S.) is payable to the vendor on closing (b) four quarterly payments of $225,000 (U.S.) per quarter over the first four quarters following closing, subject to a quarterly clawback of $2 (U.S.) against each dollar of revenue below $1.1-million (U.S.) (annualized) and the business being cash-flow positive (c) a payment of $250,000 (U.S.) 15 months following closing, and (d) a payment of $250,000 (U.S.) 18 months following closing. ![]() Secondly, its delivery endorsement, which also has yet to be leveraged, fits very well with our plans for revenue generation in California." First, its location near the music festivals has great potential and has not been fully explored. "This asset comes with two very exciting attributes. "I am pleased we were able to secure this strategic acquisition," said Jacob Gamble, chief executive officer of Ventura Cannabis. ![]() Based on unaudited financials and due diligence, the business is expected to generate positive cash flow and annual revenues of $1.6-million. Additionally, the business has a medical cannabis endorsement whereby it can sell high-dosage products for medical use only. The business also has the ability to apply for a delivery licence through a grandfather clause, which after closing Ventura Cannabis plans to do. Ventura Cannabis has executed a binding stock purchase agreement to acquire Remedy Inc., a cannabis business in California near Los Angeles and Corona, which are the locations of the current detox centres. The total combined cost, including all fees and expenses, of the transactions, is expected to be an average of less than 1.9 times revenues, inclusive of up to $658,000 (U.S.) in stock, with a portion of the consideration paid over time based upon performance.Ĭathedral City, Calif., dispensary acquisition The combined businesses are expected to generate $2.5-million in annual revenue with positive cash flow. Additionally, Ventura Cannabis announced it secured Craig Lipsay, a senior investment banker and former managing director at Morgan Stanley and Merrill Lynch in New York, to advise its board and management. The second is a cannabis dispensary in Portland, Ore., which will become part of its existing Oregon business. The first, located in Cathedral City, Calif., just outside Los Angeles, is a strategic acquisition that pairs well with the company's detox centres located nearby. has entered into a binding agreement to acquire two cannabis dispensaries. VENTURA CANNABIS TO ACQUIRE CANNABIS DISPENSARIES IN CATHEDRAL CITY, CALIFORNIA, AND PORTLAND, OREGON WITH COMBINED ANNUAL REVENUES OF $2,500,000 Ventura Cannabis to acquire two cannabis dispensaries
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