MJardin Group notable leader in North American cannabis facility management, today announced that the Company has completed a strategic acquisition with F&L Investments LLC, the sole member of GreenMart of Nevada LLC, a state-of-the-art licensed cannabis cultivation entity based in Las Vegas (the “Acquisition”). The Acquisition represents MJardin’s inaugural flagship asset in Nevada for a combined consideration of cash and stock of approximately $22 million.
In connection with the Acquisition, MJardin has acquired a four-acre site containing two existing cultivation facilities, located in northeastern Las Vegas. One facility is currently operational and the second is expected to be operational by January 2019. At full capacity the two facilities can produce over 10,000 pounds of finished flower product annually through MJardin’s turnkey cannabis management system.
MJardin has plans to develop on-site extraction and packaging capabilities for innovative brands and product sets for the Nevada market. The Company is also negotiating supply agreements with various dispensary clients and will continue to pursue strategic opportunities in Nevada and other states.
“Our strategic transaction expands MJardin’s exposure to the promising Nevada market, which attracts nearly 43 million visitors annually,” said Joann Bailey, President of MJardin. “While MJardin has maintained service agreements in Nevada for years, this transaction provides us with a flagship location whereby we own the physical asset and can significantly expand its capabilities through MJardin’s proven cannabis management team.”
A highly-experienced cannabis company, MJardin-managed facilities have collectively produced and sold more than 100,000 kg of cannabis to date. The Company has a proven track record of operational excellence in 13 U.S. states, Canada and Australia, having designed and planned more than 100 legal cannabis facilities since inception with 30+ licensed facilities currently under management.
The Acquisition is comprised of a number of components, including a membership interest purchase agreement which is subject to a number of closing conditions including the receipt of regulatory approval by the Nevada Department of Taxation, and if applicable, other municipal authorities. There can be no assurance that the Department or the applicable municipal authorities will approve the contemplated investment. If certain regulatory approvals are not obtained, MJardin and F&L Investments have the right to terminate the Acquisition.