General Cannabis Signs Purchase Agreement to Acquire SevenFive Farm
DENVER, Jan. 27, 2020 (GLOBE NEWSWIRE) -- General Cannabis Corp (OTCQX: CANN), a company with deep domain expertise in providing services to the cannabis industry, today announced that it has signed a purchase agreement to acquire SevenFive Farm, a cultivation facility in Boulder, CO. The pending acquisition will now be submitted to the Colorado state regulators (the MED) for approval; the acquisition will close when this approval process is complete. The company originally announced the Letter of Intent for this acquisition in August 2019.
SevenFive Farm is a 17,000 square feet light deprivation greenhouse cultivation facility that has operated in Boulder county for over 4 years. General Cannabis expects to improve production in the facility to approximately 300 lbs of flower per month. The cannabis cultivated at SevenFive will initially be sold on the wholesale market and, as the company adds retail operations, used to partially supply the Company’s dispensaries.
Said Steve Gutterman, CEO of General Cannabis, “This acquisition represents another step in executing on our Cannabis 3.0 strategy. We are acquiring a proven, successful facility. We will deploy Next Big Crop, our cultivation consulting business, to improve production over existing levels. And we will use the production from the facility to supply dispensaries as we add them.”
The Company expects that once the acquisition has been completed and integration has concluded, SevenFive Farm will generate over $5 million in annual revenue and over $3 million in positive contribution towards corporate EBITDA. Said Gutterman, “Our goal is to acquire profitable, successful assets and then enable our seasoned management team to apply proven management practices to improve performance even further. SevenFive fits perfectly into this model.”
Terms of the acquisition were not disclosed.
About General Cannabis Corp General Cannabis Corp is the comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. The company is a trusted partner to the cultivation, production and retail sides of the cannabis business. It achieves this through a combination of strong operating divisions, capital investments and real estate. As a synergistic holding company, the company’s divisions are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed. The company’s website address is www.generalcann.com.
Forward-looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include the following statements: the acquisition will both increase revenue and serve as an important foundational element of General Cannabis’ growth strategy; General Cannabis anticipates improving production and operations in the facility to approximately 300 pounds of flower per month; the cannabis cultivated at SevenFive will initially be sold on the wholesale market and, as General Cannabis adds retail operations, will be used to partially supply other dispensaries owned and operated by General Cannabis; General Cannabis can immediately add additional value through its cultivation consulting business, Next Big Crop, to improve production quantity and quality over existing levels; as General Cannabis adds dispensaries it intends to utilize the productive from this facility to supply those as well; the expectation that once the acquisition has been completed and integration has concluded, SevenFive Farm will generate over $5 million in annual revenue and have a positive contribution towards the Company’s EBITDA. Any statements that are not statements of historical fact, such as the statements described above, should be considered forward-looking statements. Some of these statements may be identified by the use of the words “may,” “will,” “believes,” “plans,” “anticipates,” “expects” and similar expressions. General Cannabis has based these forward-looking statements on current expectations and projections about future events as of the date of this press release. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including that the pending acquisition may not be consummated and including those factors described from time to time in General Cannabis’s most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q under the heading “Risk Factors” and in subsequent filings with the Securities and Exchange Commission. General Cannabis undertakes no duty to update any forward-looking statements made herein.
Contact: Steve Gutterman, CEO firstname.lastname@example.org