Nabis Holdings Signs Definitive Agreement to Acquire Vertically Integrated Assets in Arizona
August 12 2019 - 7:30AM
Nabis Holdings Inc. (CSE:NAB) (OTC: NABIF) (FRA:
A2PL) (“NabisTM” or the “Company”), a Canadian investment
company with specialty investments in assets across multiple
divisions of the cannabis sector, today announced that it has
entered into a Definitive Agreement for the acquisition of 100% of
the membership units of a licensed medical marijuana business in
the state of Arizona (“The Asset”).
The Asset, licensed under the provisions of the
Arizona Medical Marijuana Act, operates a dispensary in Phoenix,
Arizona. The dispensary in Phoenix has been operating since 2015
with proprietary branded products and wholesale operations,
including an established distribution network serving more than 50%
of the dispensaries in Arizona.
The audited sales for 2017 and 2018 were USD
$7.4 million and $8.7 million respectively. 2019 unaudited
revenue is on pace for sales of USD $9 million. The dispensary
specializes in top-tier flower, vape pens, concentrates, edibles,
tinctures and CBD products. “We’re excited to sign a
Definitive Agreement for this strategic acquisition of vertically
integrated assets in the state of Arizona. Entering Arizona is a
key milestone in our business as we leverage our early-mover
advantage to capitalize on one of the strongest limited-license,
medical cannabis markets in the U.S.,” said Shay Shnet, CEO &
Director of Nabis.
The dispensary will be rebranded as Nabis after
the transaction closes. This transaction also includes a cannabis
infused edibles brand that is available in over 65 licensed
retailers across the state. The Company has a pipeline of new
product innovations that it will continue to roll out through this
distribution network once the transaction closes. The dispensary is
licensed to operate in the city of Phoenix (Maricopa County), which
serves more than 132,000 unique patients, per the Arizona
Department of Health Services.
“Expanding the Nabis footprint, bringing
industry expertise and high-quality products to Arizona is a top
priority for Nabis. We are confident that, given the revenue
generation history of the business’ existing assets, combined with
ongoing initiatives to further expand production and distribution
capabilities, Nabis will be well positioned to capitalize on the
dramatic growth of the cannabis market in Arizona. We remain
focused on identifying opportunities to supplement our operations
in the state of Arizona, as well as other attractive
limited-license states across the country,” concluded Mr.
Shnet.
After passing the Arizona Medical Marijuana Act,
which took effect April 14, 2011, Arizona became the fourteenth
state to adopt a medical marijuana law. As of June 2019, the state
had 210,430 registered card holders eligible to consume medical
grade cannabis products, according to the Arizona Department of
Health Services’ June 2019 Monthly Report.
Nabis will acquire 100% of the membership units
of the Asset for total consideration of USD $15 million (CAD $19.65
million) composed of USD $7 million in cash, $2 million of Nabis’
common stock, and $6 million deferred for 12 months. The
Nabis common stock will be determined by the ten day trailing
volume weighted average price upon transaction closing.
Arizona continues to be a priority market for
Nabis with large scale growth projections next year. This
transaction will expand Nabis’ position on operating licensing
rights to include a total of 10 locations for retail, cultivation
and processing facilities in 4 states across the U.S.
The transaction is subject to customary closing
and acquisition conditions, including obtaining all necessary
approvals.
About Nabis Holdings Inc.Nabis
Holdings is a Canadian investment issuer that invests in high
quality cash flowing assets across multiple industries, including
real property, securities, cryptocurrency, and all aspects of the
U.S. and international cannabis sector. Led by two of the
co-founders of MPX Bioceutical, one of the largest takeovers in the
U.S. Cannabis space to date, the company has a proven track record
in emerging markets to create significant shareholder value. The
Company is focused on investing across the entire vertically
integrated aspects of the space with a focus on revenue generation,
EBITDA and growth.
For more information, please visit
https://www.nabisholdings.com/.
Forward-Looking StatementsAll
statements, other than statements of historical fact, included
herein are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
The risks are without limitations: that the acquisitions will be
completed by the Company or completed upon the terms disclosed; the
price for cannabis and related products will remain consistent and
the consumer demand remains strong; availability of financing to
the Company to develop the retail locations; retention of key
employees and management; changes in State and/or municipal
regulations of retail operations and changes in government
regulations generally. Important factors that could cause actual
results to differ materially from the Company’s expectations are
disclosed in the Company’s documents filed from time to time with
the Canadian Securities Exchange, the British Columbia Securities
Commission, the Ontario Securities Commission and the Alberta
Securities Commission.
The CSE does not accept responsibility
for the adequacy or accuracy of this release.
For inquiries, please
contact:
Investor Contact:Allison
SossKCSA Strategic Communications PH:
212-896-1267Nabis@kcsa.com
Company Contact:Shay Shnet, CEO
and DirectorPH: 905-581-5521 info@nabisholdings.com
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