Nabis Holdings Acquires Arizona Pharmacy for $15 Million to Expand Medical Cannabis Operations

On August 13, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Canadian investment firm Nabis Holdings announced it had signed a definitive agreement to acquire a pharmacy based in Phoenix, Arizona, and a cannabis brand with licensed retail operations in 65 markets across the United States, for $15 million.

The transaction consideration includes $7 million in cash, $2 million in common stock of Nabis Holdings, and a $6 million investment deferred for 12 months. The price of Nabis Holdings’ common stock will be determined based on the 10-day volume-weighted average price (VWAP) trailing the closing of the transaction.

Following this acquisition, Arizona Pharmacies will be renamed Nabis. Nabis Holdings will significantly enhance its influence in the medical cannabis sector. To date, Nabis Holdings has acquired cannabis cultivation, processing, and sales operations spanning four states and ten regions across the United States.

On April 14, 2011, Arizona passed the Medical Marijuana Act, becoming the fourteenth U.S. state to enact medical marijuana legislation. According to the monthly report issued by the Arizona Department of Health Services in June 2019, there were 210,000 registered cardholders in the state eligible to consume medical-grade cannabis products as of that date.

Phoenix, Arizona Pharmacy has been in operation since 2015. Engaging in wholesale business, the pharmacy features its own branded products and a robust distribution network, serving over 50% of pharmacies in Arizona and 130,000 patients. The pharmacy’s operations also include the sale of premium flowers, canned concentrated foods, and medical cannabis products.

Nabis Holdings is a Canadian investment firm focused on acquiring high-quality assets across multiple sectors, including real estate, securities, cryptocurrencies, and the medical cannabis industry. Under the leadership of its two co-founders, the company has become one of the largest investors in the U.S. medical cannabis sector to date, creating significant value in emerging markets.

Shay Shnet, CEO and Director of Nabis Holdings, stated: “This priority market in Arizona is projected to experience substantial growth next year. We are pleased to sign this agreement for the strategic acquisition of vertically integrated assets in Arizona. Entering the Arizona market marks a significant milestone for Nabis Holdings, enabling us to leverage first-mover advantage in one of the most robust medical cannabis markets in the United States.”

Shay Shnet also stated, “Nabis Holdings’ top priority is to bring expertise and high-quality products to Arizona. We believe that by combining Arizona’s existing assets with our production and distribution expansion initiatives, Nabis Holdings can fully leverage the advantages of the Arizona cannabis market and achieve significant growth in company performance. We are continuously seeking opportunities to expand our business in Arizona and other regions across the United States.”

(Compiled by Hu Yifan)