C21 Investments Inc. (CSE: CXXI) today announced that it has received approval from the Nevada Department of Taxation for the transfer of the licenses of Silver State Relief and Silver State Cultivation. Together these businesses are an established and profitable, vertically integrated cannabis cultivation, processing and retailing operation with trailing 12-month revenue of US$24.5 million. The formal closing and transfer procedures are scheduled to be completed on Tuesday, January 15.
“Completion next week will represent C21’s largest acquisition and is aligned with our long-term growth objectives,” Robert Cheney, President and CEO, C21 Investments. “The Silver State businesses will immediately contribute solid revenue and earnings and we anticipate two more announced acquisitions to close before the end of the month.”
C21 Investments is acquiring the operations of the 155,000 square-foot fully licensed cultivation and processing facility and the 8,000-square foot retail dispensary, located in Sparks, Nevada. The retail dispensary is a “cannabis superstore”, with 21 points of sale that serves over 36,000 customers per month. The Sparks dispensary is one of the top three revenue producing dispensaries in Nevada for the past 36 months in a row.
C21 Investments will also acquire on closing a second 6,000 square foot dispensary located in Fernley, Nevada. The Fernley dispensary is located in an area experiencing rapid economic growth and housing/business development. Fernley is expected to go into operation in the next four weeks. The opening of the second dispensary location offers significant revenue and earnings growth potential to the existing business.
The Silver State transactions are part of a larger plan by C21 Investments to expand significantly in the cultivation, processing and wholesale and retail distribution of branded products throughout the State of Nevada.
“The Silver State operations are a very well managed business led by well-known Nevada entrepreneur Sonny Newman,” added Mr. Cheney, “and it has strong potential for significant expansion on all levels.”
“The Silver State brands and products are a strong complement to C21’s existing business,” said Sonny Newman, founder and sole owner of Silver State. “With C21Investments, we look forward to expanding our reach within Nevada and nationwide.”
Certain statements contained in this news release may constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “plan”, “expect”, “may”, “will”, “intend”, “should”, and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward looking statements in this news release include: (i) the expected use of the net proceeds from the Offering; (ii) the closing of other acquisitions based on definitive agreements; and (iii) the impact of the acquisitions on the Company’s ability to compete and grow revenue and EBITDA.
The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by C21 Investments. Although C21 Investments believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because C21 Investments can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, C21 Investments’ inability to finance and complete previously announced acquisitions or, if completed, to upgrade and expand the acquired business as planned, competitive factors in the industries in which C21 Investments operates, prevailing economic and regulatory conditions, and other factors, many of which are beyond the control of C21 Investments.
The forward-looking statements contained in this news release represent C21 Investments’ expectations as of the date hereof, and are subject to change after such date. C21 Investments disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
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