Cannabis One to Acquire Green Lady IP for $3.05M to Expand Cannabis Operations in Washington State

On July 9, 2019, VCBeat (WeChat Official Account: vcbeat) learned that cannabis supply chain player Cannabis One announced it would acquire Green Lady IP, a Washington-based cannabis dispensary services company, for $3.05 million.

In this acquisition, the total consideration payable by Cannabis One to Green Lady IP amounts to USD 3.05 million, comprising USD 300,000 in cash, Class B super-voting shares of Cannabis One valued at USD 1.35 million, and deferred consideration of USD 1.4 million.

Cannabis One is a cannabis supply chain company headquartered in Denver, Colorado, USA, and listed on the Canadian Securities Exchange. Positioned to disrupt the traditional, vertically integrated seed-sales business model, Cannabis One places particular emphasis on aggregating cannabis brands and aims to generate returns through the reintegration of the supply chain. The company is primarily dedicated to enhancing and promoting prominent U.S. cannabis brands, having gained significant recognition for its earlier promotion of the retail brand Joint TM.

Green Lady IP, the acquiree in this transaction, primarily provides infrastructure services to three pharmacies in Washington State. According to estimates by Green Lady IP’s management, these pharmacies generate annual unaudited revenues exceeding $9 million.

“Given Washington State’s restrictive regulatory environment, most cannabis industry participants, particularly those operating in the public sphere, appear reluctant to consider expanding into this mature Pacific Northwest market,” said Jeffrey Mascio, CEO of Cannabis One. “This is an unfortunate situation for operators in Washington State, as there appear to be many license holders who, in our view, could benefit from certain consolidation.”

Jeffrey Mascio stated, “Cannabis One has developed an innovative and value-added framework that combines our phased infrastructure service projects with options to acquire foundational licensed assets as WSLCB regulations evolve. In accordance with Washington state law, Cannabis One can continue to pursue its exciting expansion plans in the Pacific Northwest.”

(Compiled by: Fan Xin)