C21 Investments Inc. (CSE: CXXI) (FSE: C6QP) today announced that it has entered into definitive agreements for the June 28, 2018 announced acquisition of 100% of Megawood Enterprises Inc. (“Pure Green”), which is the owner of the Pure Green Dispensary in Portland, Oregon. Pure Green is a 3,000 square foot retail dispensary and has been operating since January 2014 as a local retailer for both medical and recreational products.
“The co-founders of Pure Green, Meghan and Matt Walstatter, will continue to work with the C21 team on the expansion of the company’s retail network throughout Oregon,” said Robert Cheney, President & CEO, C21 Investments. “Pure Green has an enviable reputation and we want to replicate its success throughout our operations.”
“We’ve seen a lot of changes in the cannabis industry and Matt and I believe joining the C21 Investments team will elevate our brand and further our capabilities,” said Meghan Walstatter. “We want to continue to provide Oregon’s medical patients and recreational customers with affordable, quality cannabis. The resources of C21 Investments will allow us to bring our community-oriented approach to customer service and strong emphasis on product knowledge to an ever-expanding audience.”
“Pure Green understands the Oregon canna-businesses, and we knew it was time to become part of something larger and C21 Investments is the perfect fit,” said Matt Walsatter. “We’re impressed by the dynamic combination of brands and personalities that comprise the C21 Investments family.”
Terms of Pure Green Acquisition
The Pure Green acquisition is subject to prior approval of the Oregon Liquor Control Commission (“OLCC”) which is expected to be received in approximately three months, with closing to occur following receipt of approval.
C21 will acquire 100% of Pure Green, inclusive of all its brands and the retail location at 3738 NE Sandy Blvd, Portland, Oregon. The purchase price for Pure Green is USD$825,000, payable in cash and a non-interest bearing convertible promissory note. The vendors can elect to receive up to USD$650,000 in cash upon closing. The balance of the price will be paid by issuance of a non-interest-bearing Convertible Note which will be convertible into common shares of C21 calculated at a value of US$5.00 per common share.
C21 Investments’ strategy is to acquire existing and successful cannabis operations with experienced management teams in place. C21 Investments’ focus is to expand into jurisdictions where it can wholly own indoor/outdoor cultivation operations, processing/extraction facilities, bakeries, branded products, and retail dispensaries with a large distribution network.
About Pure Green
Pure Green is one of Portland’s original licensed cannabis retailers and was founded by Matt and Meghan Walstatter, who have been public policy advocates for legalized cannabis for the past two decades. The dispensary is located in the Hollywood Neighbourhood, on Portland’s “Green Mile” and in a building that once housed Portland’s first post-prohibition liquor store.
Grön Chocolate Update
C21 Investments and Grön Chocolate, LLC and Grön Confections, LLC have mutually agreed not to proceed with the transaction announced August 13th, 2018. C21 Investments is in discussions with parties for manufacturing and branding opportunities globally for processed edible CBD and THC products. Potential partners with a scalable international presence in branded consumer goods will become the C21 Investments focus in the near term.