Nabis Holdings Inc (CSE:NAB) (OTC:NABIF) continues to be on a roll, as the cannabis investment company revealed it has entered the key US market of the state of Arizona with another acquisition.
The firm is set to buy 100% of a Medical Marijuana firm, which operates a dispensary in Phoenix specializing in top-tier flower, vape pens, edibles and CBD products, for a total consideration of US$ $15 million (C$19.65 million).
Sales at the business being acquired were US$7.4 million in 2017 and US$8.7million in 2018, Vancouver-based Nabis said.
Arizona continues to be a priority market for Nabis as the state is one of the strongest limited-license, medical cannabis markets in the USA.
The group noted that the deal expands its position in operating licensing rights to include a total of 10 locations for retail, cultivation and processing facilities in four states across the USA.
"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," said Shay Shnet, Nabis' CEO.
"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."
Established distribution network
The asset has an established distribution network serving more than 50% of dispensaries in Arizona. It will be rebranded as Nabis after the transaction closes.
The transaction also includes a cannabis infused edibles brand that is available in over 65 licensed retailers across the state. The dispensary is licensed to operate in the city of Phoenix (Maricopa County), which serves more than 132,000 unique patients, according to the Arizona department of health services.
The Arizona Medical Marijuana Act took effect on April 14, 2011, making it the 14th state to adopt a Medical Marijuana law. As of June this year, according to official data, the state had 210,430 registered card holders eligible to consume medical grade cannabis products.
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