Fiore Cannabis has signed a Definitive Agreement to sell a surplus cultivation license for its Apex cannabis cultivation and production facility in Las Vegas, Nevada to Allied Corp for US$1.5 million.
"We are building a great partnership with the team at Allied as we work collaboratively to drive our business plan forward. Selling this surplus license advances us along our strategic path. The funds generated mean we can push forward on our expansion program for our Apex facility in Las Vegas to enhance cultivation capacity and deliver additional cannabis products into the growing and high-margin Nevada market," said Erik Anderson, President, and CEO of Fiore Cannabis.
Calum Hughes, CEO of Allied, said: "We see great opportunity in acquiring this license from Fiore and building out our own facilities to serve local medical markets. We look forward to working with their team and have them assist us in operating the new facility. Fiore is the perfect partner which also sees the potentially massive opportunity that U.S. legalization presents."
A revenue-sharing agreement for incremental sales from the facility has been negotiated between the parties. Fiore will be assisting Allied with the genetics and selection of cannabis strains for their new operation as well as consulting on the marketing of eventual cannabis products through Fiore's already established medical and retail partnerships.
Fiore is preparing to apply the proceeds from this sale to its expansion program for its own Apex facility which sits on a seven-acre parcel of land. A significant increase of cultivation and production space from 10,000 square feet to approximately 80,000 square feet is being planned at this time. The Company has developed strong relationships with the Nevada retail market for distribution of additional product as Fiore's award-winning organic cannabis product is in high demand.
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