SACRAMENTO, Calif.--(BUSINESS WIRE)--Today, MWG Holdings Group, Inc. (“MWG” or “Company”), an executive management and holding company, announced the closing of its Series B Preferred Private Placement (“Private Placement”) for aggregate gross proceeds of USD$10.8 million.
Proceeds from this Private Placement will be invested towards further strengthening the Company’s cannabis retail expansion and vertical integration, including the execution and integration of strategic acquisitions and new license applications, as well as increasing cultivation capacity in support of its retail stores.
MWG’s wholly-owned subsidiaries currently operate 15 cannabis retail operations in California and New Mexico, including its award-winning Perfect Union-branded stores, with definitive and immediate plans to open or acquire multiple new California storefronts in the first half of 2021.
“The closing of our Series B round accelerates Perfect Union’s trajectory towards becoming a leading vertically-integrated cannabis retailer in California,” said MWG Executive Chairman Chris Running. “We believe our management team’s ability to execute at such a high level and fast pace under challenging conditions while generating 84% YOY same-store sales growth and positive EBITDA is exemplary, and we intend to maintain this intensity as we solidify our leadership in the world’s largest regulated cannabis market.”
“Perfect Union’s ability to successfully expand in 2020 into five additional new cannabis retail locations during a global pandemic demonstrates the company’s culture of excellence, loyal customer base, passionate staff and seasoned leadership,” said MWG and Perfect Union CEO David Spradlin. “We are well-positioned to launch or acquire and rebrand up to 12 new California storefronts in 2021, providing new communities with our quality cannabis products, one-on-one service and good-paying jobs with benefits and career opportunities.”
About MWG and Perfect Union
MWG is an executive management and holding company based in Sacramento, California. The Company’s affiliated entities operate ten dispensaries in California and a 30,000 sq. ft. premium indoor cultivation and distribution facility, as well as an exclusive manufacturing partnership with a top concentrate brand. MWG was also recently approved by the City of Colfax, CA to develop and build a 20,000 sq. ft. indoor greenhouse cultivation that is expected to be operational in 2021. The Company also operates five dispensaries and an indoor cultivation in New Mexico and a cultivation and manufacturing facility in Rhode Island.
MWG’s retail brand, Perfect Union, experienced tremendous growth in 2020, which included launching or acquiring five new California retail storefronts (Seaside, Riverbank, Morro Bay, Turlock and Weed) and anticipates opening or acquiring and re-branding up to 12 new stores in 2021. MWG’s affiliate plans to launch an edible product line in Q2 2021, starting with gummies.
MWG owns or controls a significant majority of its supply chain, including cultivation, manufacturing and distribution. MWG’s strong asset base combined with a seasoned management team of highly skilled industry and retail professionals establishes a strong foundation from which the Company will continue to strategically expand its retail footprint and brand portfolio.
This release is not intended to be and should not be construed as an offer to sell, or a solicitation of an offer to buy any securities of MWG Holdings Group, Inc. This release contains "forward-looking statements”. Forward-looking statements are all statements other than historical facts and can be identified by words like "may," "will," "likely," "should," "expect," "anticipate," "future," "plan," "believe," "intend," "goal," "seek," "estimate," "project," "continue," and similar expressions. Forward-looking statements are not assurances of future performance and are based only on current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual results and financial condition may differ materially and adversely from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The forward-looking statements included in this letter are made only as of the date, and we undertake no obligation to update or revise any forward-looking statements.