Mr. Shay Shnet reports
NABIS HOLDINGS SIGNS DEFINITIVE AGREEMENT TO ACQUIRE DESERT'S FINEST DISPENSARY IN DESERT HOT SPRINGS, CALIFORNIA
Nabis Holdings Inc. has signed a definitive agreement to acquire 100-per-cent ownership of
Desert's Finest, a 6,000-square-foot dispensary located in Desert Hot Springs, Calif. The dispensary, which is licensed by the State of California for the sale of cannabis products, includes the potential for licence expansion to add production and cultivation activities on the property subject to future submission of the licence.
Desert's Finest is located in the heart of downtown Desert Hot Springs, Calif., near Palm Springs, Calif., less than two hours east of Los Angeles and north of San Diego. The currently operating dispensary has more than 37,000 registered patients and exceeded $5.7-million (U.S.) in sales over the previous 12 months with 47-per-cent gross profit margin. Desert's Finest sells a wide assortment of products including flower, vape and edibles, available at a variety of price ranges. In addition, the dispensary is strategically located near the annual Coachella Music Festival, and less than one hour from Joshua Tree National Park.
"As we continue national expansion of the Nabis footprint, we are pleased to announce our first acquisition in the state of California, one of the dominant cannabis markets in the United States," said Shay Shnet, chief executive officer and director of Nabis. "Desert's Finest has successfully generated material revenue driven in part by their convenient dispensary location in the Palm Springs region and extensive list of registered patients. We look forward to adding Desert Hot Springs to the Nabis portfolio and the loyal customer base to the Nabis brand."
Nabis will acquire 100-per-cent ownership of Desert's Finest for total consideration of $5.6-million (U.S.) ($7.5-million) composed of $1.9-million (U.S.) in cash and $3.8-million of Nabis's common stock. The Nabis common stock will be determined by the 10-day trailing volume-weighted average price upon transaction closing.
Closing the acquisition remains subject to certain customary closing conditions, including obtaining all necessary approvals.
About Nabis Holdings Inc.
Nabis Holdings is a Canadian investment issuer that invests in high-quality cash flowing assets across multiple industries, including real property, securities, cryptocurrency and all aspects of the U.S. and international cannabis sector. Led by two of the co-founders of MPX Bioceutical, one of the largest takeovers in the U.S. cannabis space to date, the company has a proven record in emerging markets to create significant shareholder value. The company is focused on investing across the entire vertically integrated aspects of the space with a focus on revenue generation, EBITDA (earnings before interest, taxes, depreciation and amortization) and growth.
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