Business
General Cannabis Announces Entry into Term Sheet For Strategic Acquisition of Leading Denver Vertically Integrated Cultivator and Retailer
General Cannabis Announces Entry into Term Sheet For Strategic Acquisition of Leading Denver Vertically Integrated Cultivator and Retailer.
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[{"type":"text","content":"\nDENVER, Aug. 09, 2019 (GLOBE NEWSWIRE) -- General Cannabis Corp (OTCQX: CANN) (the “Company”), the comprehensive national resource to the regulated cannabis industry, today announced that it has entered into a non-binding term sheet to acquire substantially all of the assets of a licensed recreational cannabis cultivator and retailer in Denver, Colorado (the “Business”).  The seller of the Business operates two indoor cultivation facilities and a retail cannabis dispensary in central Denver to manage the Business.  The Business has been rated one of the best dispensaries in Denver by High Times magazine, and is the holder of a library of world-class cannabis genetics.\n This potential transaction follows the Company’s recent announcements of its entry into non-binding term sheets to acquire other licensed cannabis entities in Colorado. The Company is taking these actions based on the signing of Colorado House Bill 1090 (“HB-1090”), a recently approved law allowing public companies to own Colorado-licensed cannabis companies.  Once the regulations surrounding the implementation of the law are finalized, the Company plans to enter into a binding transaction for the Business. It is anticipated that General Cannabis will pay consideration consisting of sixty percent cash and 40% in shares of the Company’s common stock for virtually all of the tangible and intangible assets of the Business.  The number of common shares issued at closing will be determined based on the 30-day volume weighted average price. The term sheet also provides that the Company will enter into a five-year lease for the retail and cultivation co-located facility with options for renewal and purchase. “We are pleased to announce our plans to acquire a third licensed Colorado cannabis operator,” said Michael Feinsod, Executive Chairman and Chief Executive Officer of General Cannabis.  “This planned acquisition would expand our business to central Denver. The Business we plan to acquire would provide another strong piece to our expansion strategy.  This facility would pair us with a premier retailer and expand our customer base, allowing us to leverage our skill set as HB-1090 is implemented.  We look forward to completing the transaction and integrating this faci...