DENVER--(BUSINESS WIRE)--MJardin Group (“MJardin” or the “Company”), a 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 (4,500 kilograms) 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.
About MJardin Group
MJardin Group is a highly specialized professional management company that develops partnerships with licensed operators. MJardin provides its partners turnkey cannabis cultivation, processing and retail solutions including licensure support, facility design, systems implementation, facility ramp-up and the day-to-day operational management required in a large-scale, professionally managed cannabis facility. MJardin is headquartered in Denver, Colorado with an additional office in Toronto, Ontario. For more information, please visit www.MJardin.com
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "expects", "anticipates", "believes", "plans", "projections", "outlook", "intends", "may", "could", "would", "might", "will" and similar expressions or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, expectations related to the Acquisition and the Company's future expansion and growth strategies. Forward looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving cannabis; income tax and regulatory matters; the ability of MJardin to implement its business strategies; the obtaining of any regulatory approvals; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. By their very nature, forward looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward looking statements will not prove to be accurate. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.