Acquisition will strengthen General Cannabis’s management team and add three revenue producing assets
DENVER, Jan. 07, 2020 (GLOBE NEWSWIRE) -- General Cannabis Corp (CANN), a company with deep domain expertise in providing services to the cannabis industry, today announced that it has signed a non-binding term sheet to acquire Hälsa Holdings Inc, a company led by industry experts and created to acquire assets in mature markets. When the acquisition is complete, General Cannabis will acquire contracts to acquire three dispensaries in California, and add a deeply experienced team to its existing executive group. The acquisition is expected to close in Q1 2020, subject to entry into definitive documentation.
Chris Colón leads the Hälsa executive team, and will bring to General Cannabis extensive knowledge and experience in mergers and acquisitions and developing retail and fast casual concepts. Prior to joining Hälsa, Mr. Colón was President of Nectar Cannabis, the largest vertically integrated cannabis company in the state of Oregon with seventeen retail locations and over four hundred employees. Before Nectar, Mr. Colón was an executive at Consumer Capital Partners, an innovative investment and operating company, which created Smashburger, a better burger concept with over 330 locations worldwide.
Said Steve Gutterman, CEO of General Cannabis, “Chris is one of the most respected leaders in cannabis. He has unmatched retail experience. More importantly, his integrity is second to none. I can’t wait for him to work alongside me and the rest of the General Cannabis team as we expand our retail presence.”
When the acquisition of Hälsa is complete, Mr. Colón is expected to become President of General Cannabis, reporting to the CEO. Mr. Colón said, “Along with the rest of the Hälsa team, I couldn’t be more excited to join Steve and the General Cannabis team. The landscape of the cannabis industry has changed rapidly, and we have a massive opportunity in front of us to grow quickly. General Cannabis is well positioned to capitalize on these opportunities.”
Hälsa has entered into Purchase Agreements or Letters of Intent with three retail dispensaries in California that collectively generate revenues of approximately $12 million. General Cannabis will seek to grow revenue at all three locations by refurbishing and expanding operations. Said Mr. Colón, “We have painstakingly picked out marquee assets in California. The assets we have under contract are excellent revenue producing stores with extraordinary possibilities for expansion.”
The acquisition of Hälsa represents a significant step for General Cannabis as it executes on its Cannabis 3.0 strategy. The company plans to grow revenue and profit by:
- Focusing on mature markets. Initially, the company will focus on California and Colorado. Over time, the company will seek to add operations in Oregon and other mature markets as well.
- Acquiring assets in an efficient manner.
- Applying the team’s expertise to improve performance and valuation.
Said Mr. Gutterman, “This is Cannabis 3.0. In it, we have created a second mover advantage by building a fantastic team, cherry picking assets in mature markets and allocating capital efficiently and effectively to produce outsized returns. The acquisition of Hälsa will accelerate our progress and is an important strategic initiative for the company.”
About General Cannabis Corp
General Cannabis Corp is the comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. The company is a trusted partner to the cultivation, production and retail sides of the cannabis business. It achieves this through a combination of strong operating divisions, capital investments and real estate. As a synergistic holding company, the company's divisions are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed. The company's website address is www.generalcann.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements relating to the following: the company’s plans to enter into a binding agreement to acquire Hälsa; the timing, terms and effects of the acquisition of Hälsa, including the company’s plans for Mr. Colón to become President of the company and Hälsa’s acquisition of three dispensaries; the company's "Cannabis 3.0" growth strategy and plans to expand revenues, including through the acquisition of Hälsa. Any statements that are not statements of historical fact, such as the statements described above, should be considered forward-looking statements. Some of these statements may be identified by the use of the words "may," "will," "believes," "plans," "anticipates," "expects" and similar expressions. General Cannabis has based these forward-looking statements on current expectations and projections about future events as of the date of this press release. These forward-looking statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those factors described from time to time in General Cannabis's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q under the heading "Risk Factors" and in subsequent filings with the Securities and Exchange Commission. General Cannabis undertakes no duty to update any forward-looking statements made herein.
Steve Gutterman, CEO