DionyMed Brands Inc (OTCMKTS:DYMEF) Finalizes Its Acquisition Of Cannabis Campus In Los Angeles

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.


DionyMed Brands Inc (OTCMKTS:DYMEF) And Alumina Partners Secure CAD$32 Million Investment Deal

DionyMed Brands Inc (OTCMKTS:DYMEF) announced a month ago that it secured an investment deal with Alumina Partners, through which it will receive CAD$32 million to expand its cannabis portfolio.

DionyMed will receive the CAD$32 million over a 2-year duration and this will allow the company to expand its cannabis products into new markets where it anticipates significant returns. The investment agreement dictates that DionyMed will sell some of its shares through a private placement basis and they will be sold in tranches.

Each unit will comprise of one of a subordinate voting share, as well as half a unit of a Voting Share purchase warrant. Each warrant will be sold at half the value of the Subordinate Voting Share market price on the Canadian Securities Exchange. The company will accelerate the warrants expiry date if the Subordinate Voting Shares equate to or surpass 100% of the warrant exercise price of their 10-day volume weight average price.

The total number of Subordinate Voting Shares that Alumina owned at the time of the purchase surpassed 9.99% of the outstanding Subordinate Voting Shares of DionyMed. The agreement requires that five business days should pass before the unit issuance comes to a close. Additionally, the pricing will feature a 15% to 20% discount that will be based on the market price.

“This Agreement provides DionyMed with additional capital to accelerate our cannabis brands distribution and delivery platform,” stated DionyMed CEO Edward Fields.

DionyMed’s current efforts are aimed at getting a better foothold of the market

The CEO also noted that the company is on a mission to expand its Direct-To-Consumer footprint in California by venturing into new markets such as Los Angeles and Sacramento. The company’s goal is to make cannabis available across the largest market.

Alumina’s managing member Adi Nahmani noted that his company is excited to support DionyMed through its aggressive push towards expanding its brands. He also believes that DionyMed has the operational know-how and competitive advantages that can put it ahead of the competition. The cannabis industry is rapidly growing and this means that companies are currently trying to get an edge that will allow them to leverage the most out of the industry.

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