General Cannabis executed a definitive purchase agreement to acquire Cannasseur, located in Pueblo West, Colorado. Cannasseur, a vertically integrated company that commenced operations in 2013, operates:
- A recreational retail dispensary;
- A 12,000 square foot light deprivation greenhouse; and
- A manufacturing facility, that produces Dabtek, a product line of infused concentrates
"The acquisition of Cannasseur is integral to our growth strategy of acquiring and operating cultivation, manufacturing and retail assets," said General Cannabis CEO Steve Gutterman. "Further, it enables us to provide products and services to customers who depend on cannabis-based products for medicinal support."
General Cannabis anticipates that with some modernization and process improvements to the existing cultivation center, it can significantly increase production at Cannasseur in its first full year of ownership. The company anticipates that once the acquisition and integration is complete, Cannasseur should generate over approximately $4 million of incremental annual revenue.
"The acquisition agreement provides that General Cannabis will acquire Cannasseur for $2.35 million of General Cannabis common equity, priced at the time of closing, subject to a floor of $0.45 per share and a ceiling of $0.55 per share," the team with the company explains. "This all-stock transaction represents the successful execution of many months of work. The acquisition is subject to standard closing conditions, including approvals by Colorado state and local regulators. With this acquisition, General Cannabis will continue to capitalize on Colorado's new regulation that allows public companies to own and operate licensed cannabis assets."
Said Gutterman, "We expect the Cannasseur acquisition to represent an excellent example of our strategy to find attractive assets and utilize our in-house capabilities to improve performance and financial results. We will continue to look for similar opportunities that meet our acquisition criteria."
For more information:
General Cannabis
+1.303.759.1300
[email protected]
generalcann.com