Mr. Michael Mills reports
BODY AND MIND CLOSES NMG OHIO DISPENSARY AND PROCESSING FACILITY TRANSACTION
Body and Mind Inc. has closed the acquisition of the remaining 70-per-cent interest in NMG Ohio LLC. The transaction included the transfer of a dispensary licence for the Clubhouse dispensary in Elyria, Ohio, to the company's wholly owned subsidiary, NMG OH 1 LLC, which became effective on Sept. 4, 2020. The transaction also included the final award of a production licence, which has now been transferred to the company's wholly owned subsidiary, NMG OH P1. As a result of the closing of this acquisition, the company now indirectly owns 100 per cent of NMG Ohio.
Body and Mind's real estate and development team were instrumental in developing the Ohio dispensary and production licences as the state of Ohio opened for medical cannabis. The Ohio market has experienced significant growth since inception and the Ohio Ballot Board recently approved the language of a ballot initiative effort to legalize cannabis for Ohio adults aged 21 or older as well as possession and home grow language. The Clubhouse dispensary was one of the early dispensaries to open after Ohio commenced sales of medical cannabis and has recently transitioned to a Body and Mind branded dispensary. The new processing facility is located next to the Body and Mind dispensary and has been designed to produce popular Body and Mind concentrates using hydrocarbon extraction as well as edibles and oils. "Our team has years of experience with hydrocarbon extraction products in other markets and we look forward to bringing our award-winning concentrates to the growing Ohio market," stated Michael Mills, chief executive officer of Body and Mind.
Nevada Medical Group LLC (NMG Nevada), a wholly owned subsidiary of the company, which previously held a 30-per-cent interest in NMG Ohio, has now acquired 100-per-cent ownership of NMG Ohio for consideration of $3.15-million (U.S.), which comprised 50 per cent in cash and 50 per cent in shares of common stock of the company as follows.
- Cash payments:
- $1,181,250 (U.S.) was paid on the execution of the membership interest purchase agreement and the related distribution agreement on Jan. 31, 2019;
- $393,750 has been paid pursuant to the definitive agreement on Oct. 21, 2020;
- Common share issuances:
- 2,380,398 common shares at a deemed price of 66 cents per share were issued pursuant to the definitive agreement on the effective date;
- 793,466 common shares at a deemed price of 66 cents per shares were issued on Oct. 21, 2020.
About Body and Mind Inc.
Body and Mind is an operations focused multistate operator investing in high-quality medical and recreational cannabis cultivation, production and retail. The company's wholly owned Nevada subsidiary was awarded one of the first medical marijuana cultivation licences and holds cultivation and production licences. Body and Mind products include dried flower, edibles, oils and extracts as well as GPen Gio cartridges. Body and Mind cannabis strains have won numerous awards, including the 2019 Las Vegas Weekly Bud Bracket, Las Vegas Hempfest Cup 2016, High Times Top Ten, the NorCal Secret Cup and the Emerald Cup.
Body and Mind continues to expand operations in Nevada, California, Arkansas and Ohio and is dedicated to increasing shareholder value by focusing resources on improving operational efficiencies, facility expansions, state licensing opportunities, as well as mergers and acquisitions.
We seek Safe Harbor.
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