DionyMed Brands Inc (OTCMKTS:DYMEF) recently announced that it finalized the acquisition of a Los Angeles-based cannabis campus that occupies 1.83 acres of land.
The cannabis industry brand announced that it had entered a deal to acquire some of MM Esperanza 2 LLC’s industrial properties just a few days ago. The Los Angeles Campus acquisition includes cultivation, manufacturing, distribution and retail licenses. DionyMed agreed to acquire the facility through a cash and stake deal through which it will pay $13.07 million cash and Series A shares valued at $6 million.
The deal between the two companies also includes a 15-year long-term leaseback agreement and two options for five-year extensions. DionyMed will also receive about $2 million from MMAC which will be used to renovate the newly acquired Los Angeles-based facility.
“This acquisition strategically positions DionyMed as a leader in California’s cannabis market,” stated DionyMed CEO, Edward Fields.
DionyMed to expand its capacity through the Los Angeles campus acquisition
Fields also noted that the assets in the Los Angeles facility will be tied into DionyMed’s operations located in Northern California. The acquisition will contribute greatly to the company’s long-term growth pursuits. It will also give DionyMed more capacity to provide better services in California which is the biggest cannabis market in the U.S.
Fields also pointed out that the newly acquired 1.83-acre facility in Los Angeles also adds to DionyMed’s expansion activities in Northern California. He also revealed that it will grant the company the expansion capacity and scale that it needs to adequately serve the exponentially growing demand for safe cannabis products and of high quality.
DionyMed’s acquisition of MMAC’s Los Angeles Campus is also expected to contribute to more growth for the company and also allow it to secure a bigger share of the market. This means the acquisition will also place DionyMed in a better position to compete with other cannabis firms that operate not only in California but also in the overall U.S market. The California market is also a strategic target in terms of pursuing growth given the high number of cannabis users that reside in the state.