MED (Marijuana Enforcement Division) in the State of Colorado gave a nod to General Cannabis Corp (OTCMKTS:CANN) to takeover Cannasseur, which holds licenses in the state for the recreational dispensary. The deal is valued at $2.35 million. Cannasseur also holds a license for 12,000 Sq. Ft. GH (greenhouse) cultivation facility. It also holds a license for an oil extraction facility. The takeover would augment the revenues of more than $4 million annually and cash flow of General Cannabis.
CEO of General Cannabis, Steve Gutterman, said it is part of the company’s roll-up strategy in Colorado. General Cannabis acquired SevenFive Farm early this month. With the takeover of Cannasseur, General Cannabis became one of the largest publicly traded cannabis companies in terms of revenues.
Operates SevenFive Farm
General Cannabis is already operating SevenFive Farm and NBC (Next Big Corp), a cannabis consulting company. NBC got expertise in design, construction, application, and operating the cultivation facilities.
17,000 Sq. Ft. light deprivation cultivation facility – SevenFive farm is located in Boulder, Colorado. General Cannabis will use its operational experience to roll-up licensed cannabis facilities across Colorado.
Executive Chairman, Michael Feinsod said the company will continue the roll-up strategy in the state. It targets profitable businesses to boost growth going forward. He further said the takeover of Cannasseur allows the company to become a vertically integrated company and improve synergies across its cultivation assets.
Receives $3 million capital
General Cannabis mobilized funds of $3 million towards the growth capital from Shore Ventures III, LP, and Hershey Strategic Capital LP. The company will use the funds for its expansion strategies.
Steve said the equity investment is a testament to its strategy, experienced team, and marketing potential and its capability to improve shareholder value.
General Cannabis early this year signed an accord to take over Halsa Holdings. The takeover helps the company clinch assets in mature markets and create value for the shareholders. After this takeover, General Cannabis will get the rights to take over three CA-based cannabis dispensaries that will generate around $12 million. Chris Colon, Chief of Halsa, will become the president of General Cannabis. He will report to Steve.