Item 9 Labs Corp., an Arizona-based company that invests in marijuana-related businesses, signed an agreement to acquire Wild Card Cannabis, which includes Sessions Cannabis.
Sessions Cannabis is one of the largest franchise marijuana companies in Canada.
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The total purchase price is $12.8 million (16.4 million Canadian dollars) in cash plus potential earnout payments, according to a regulatory filing.
Two earnout payments, the first due 12 months after the closing date and the second after 24 months, could add a total of $8.2 million in stock to the deal.
Among the conditions to close the deal is Item 9 Labs receiving financing.
Sessions has 43 stores in Ontario – the largest cannabis market in Canada – with annual sales exceeding CA$70 million from 18 franchisees, the companies said in a news release.
Most franchisees are multi-unit owners.
Ontario had 1,468 licensed cannabis stores open for business as of May
Read full article on Marijuana Business Daily
