Body and Mind gives update on divestment of Nevada cultivation and processing

Body and Mind has provided an update on the divestment of the Company's cultivation and processing operations in Nevada.

"We are excited to start the new year with the Lynwood, Illinois dispensary almost complete and an estimated opening date in late January for this well-located retail asset," stated Michael Mills, CEO of Body and Mind. "As we continue to prioritize our resources against our most attractive opportunities, we are also working through the assignment of the previously announced divestment of our Nevada operations with a reduced purchase price."

Sale of Nevada Medical Group
The Nevada cultivation and production divestment was initially entered into on January 31, 2024 by way of a membership interest purchase agreement between DEP Nevada, Inc. and Vegas Brazil LLC whereby DEP shall sell all of the issued and outstanding membership interests in Nevada Medical Group. The purchase price for the Interests to be paid by the Buyer to DEP was $2 million The Buyer agreed to assume all operational costs during the transition period as well as the assumption of long-term leases.

Vegas Brazil LLC has elected to assign all of its rights and obligations under the MIPA to Fox Farms LLC with a first amendment to the MIPA including fully removing the Buyer/Assignor from the MIPA and all schedules and exhibits, modification of the purchase price from $2,000,000 to $400,000, of which $200,000 has been paid as a deposit by the Assignee to DEP. A further $200,000 shall be delivered by the Assignee to DEP as a promissory note. The Assignee is to repay the Loan in twelve (12) equal payments starting on the first day of the calendar month immediately following the closing, and the Note shall bear interest at a rate per annum equal to the most recent applicable federal rate as of the closing date of the MIPA, as amended.