Business
Body and Mind Announces Agreement to Divest Ohio Dispensary
Transaction Supports Balance Sheet Flexibility & Strategic Growth Initiatives Las Vegas, Nev...
About this update from Body & Mind Inc.
[{"type":"text","content":"Body and Mind Announces Agreement to Divest Ohio DispensaryTransaction Supports Balance Sheet Flexibility & Strategic Growth InitiativesLas Vegas, Nevada and Vancouver, British Columbia--(Newsfile Corp. - July 24, 2023) - Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) (the \"Company\" or \"BaM\"), a multi-state operations-focused cannabis company, is pleased to announce that the Company's wholly owned subsidiary, DEP Nevada, Inc. (\"DEP\") has entered into an equity purchase agreement with FarmaceuticalRX, LLC (the \"Purchaser\"), whereby DEP agrees to sell all of the issued and outstanding interests, equity, or profit interests (the \"Interests\") in NMG OH 1, LLC (\"NMG OH\"), which owns and operates the Body and Mind Ohio dispensary, to the Purchaser.The total consideration for the transaction is US$8.225 million in cash proceeds at closing with an additional US$2.5 million in potential contingent proceeds; please see additional details below.\"Ohio was our first dispensary operation and we've been proud to serve the Elyria community and grow the business significantly\", stated Michael Mills CEO of Body and Mind. \"As the Ohio market develops, there are improved economics for full vertical operations and we elected to capitalize on the opportunity to monetize this asset; we intend to use the proceeds from the sale of NMG OH to improve our balance sheet, focus on developing New Jersey and Illinois, and be positioned with greater flexibility to be opportunistic with our operating capabilities as the cannabis market continues to evolve. I would like to thank our dispensary team who have worked to build high-trust relationships with our patients, and I would also like to express our gratitude to the team at Bengal Capital for their strategic advice and support throughout the transaction and planning process\". \"We constructed and opened the Ohio dispensary soon after the Ohio medical program commenced and developed significant retail capabilities since 2019,\" stated Trip Hoffman, COO of Body and Mind. \"While I have some disappointment divesting the Ohio dispensary and saying goodbye to the team, I'm excited about our current developing opportunities in Illinois and New Jersey and creating flexibility to evaluate new opportunities.\"\"We are thrilled to jumpstart the expansion of our retail platform in Ohio with the acquisit...