DionyMed Announces Close of Acquisition with Innovative Industrial Properties for MMAC’s 1.83 acre Los Angeles Campus

TORONTO, July 24, 2019–(BUSINESS WIRE)–DionyMed Brands Inc. (“DionyMed” or “Company”) (CSE: DYME) (OTCQB: DYMEF), a multi-state cannabis brands platform, today confirmed the official close of its previously announced acquisition of select assets from MM Esperanza 2 LLC, doing business as “MMAC,” and MMAC’s 1.83 acre Los Angeles cannabis campus, including retail, distribution, manufacturing and cultivation licenses, for the purchase price of US$13,067,000 in cash and US$6 million in DionyMed Series A Multiple Voting Shares to MMAC.

In conjunction with the close of the MMAC transaction, DionyMed has completed its sale-leaseback agreement with Innovative Industrial Properties, Inc. (NYSE: IIPR, “IIPR”), to purchase the Los Angeles cannabis campus for US$13 million and to enter into a long-term lease back of 15 years with two optional 5-year extensions. IIPR is also providing DionyMed up to US$2 million of capital to make improvements at the property.

The Los Angeles cannabis campus provides DionyMed:

  • A market leading, Southern California direct-to-consumer fulfillment center capable of supporting up to 600 cannabis delivery drivers
  • A dispensary storefront, distribution facility and manufacturing hub
  • Premium indoor cultivation
  • All property, leaseholds, equipment and licenses

DionyMed paid MMAC US$13,067,000 in cash and issued 55,374 (US$6 million) in DionyMed Series A Multiple Voting Shares. The shares issued to MMAC will be subject to a 120-day holding period and DionyMed has the right, but not the obligation, to repurchase the shares over the next 12 months for a 10% premium over the share price at closing of the transaction with MMAC.

This acquisition strategically positions DionyMed as a leader in California’s cannabis market. By incorporating MMAC’s Southern California direct-to-consumer fulfillment center, distribution facility, manufacturing hub, cultivation facility and dispensary storefront, with our existing operational base in Northern California, DionyMed is positioned for long-term growth to serve the largest cannabis market in the country.

Edward Fields, CEO of DionyMed

To be added to the DionyMed e-mail distribution list, please e-mail DionyMed@kcsa.com with DionyMed in the subject line.

About DionyMed

Founded in 2017, DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves cannabis consumers through retail dispensary distribution and direct-to-consumer fulfillment with its growing portfolio of award-winning brands. Learn more at dionymed.com and follow @DYME_Inc on Twitter and LinkedIn.

Original press release

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

Get Our Sunday Newsletter