The acquisition will enable DionyMed to broaden its business operations in Southern California to serve the entire state, according to the company.
DionyMed said it will pay MMAC $13.07 million in cash and issue $6 million in DionyMed Series A multiple voting shares.
DionyMed said it signed an agreement with Innovative Industrial Properties, Inc. (NYSE: IIPR) to buy the Los Angeles cannabis campus for $13 million, with a long-term lease back of 15 years and two optional five-year extensions.
Both deals are expected to close before July 23, according to DionyMed.
Innovative Industrial Properties is set to provide DionyMed with $2 million for property renovations.
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“Our ability to effectively deliver and distribute today’s most in-demand cannabis products in California, the world’s largest cannabis market, has been one of our key differentiators in this explosive growth industry," DionyMed CEO Edward Fields said in a statement.
"As we have expanded beyond our established operational base in Northern California, our new Los Angeles cannabis campus of 1.83 acres gives DYME the scale and expansion capacity to satisfy the rapidly growing demand for safe, high quality cannabis brands California consumers deserve throughout the entire state.”
Dionymed's stock is down 54% over the last 12 months. The stock was trading higher by 3.54% at $1.29 at the time of publication Friday.
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