Nabis Holdings Provides Shareholder Update on Acquisition of Desert’s Finest Dispensary in Desert Hot Springs, California
01 Octubre 2019 - 06:33AM
Nabis Holdings Inc. (CSE:NAB) (OTC: NABIF)
(FRA:A2PL) (“NabisTM” or the “Company”), a leading Canadian
investment company with specialty investments in assets across
multiple divisions of the cannabis sector, today is providing
shareholders with an update on the amended terms of the acquisition
of 100% ownership of Desert’s Finest, a currently-operating, 6,000
square foot dispensary located in Desert Hot Springs, CA,
previously announced on June 12, 2019.
“With the best interest of our shareholders in mind, we are
pleased to have amended the terms of our Desert’s Finest
acquisition updating the common stock consideration to a
Convertible Note,” said Shay Shnet, CEO & Director of Nabis.
“We remain excited about the acquisition of Desert’s Finest as it
will notably be our entrant into the state of California, the
largest and most dominant cannabis market in the U.S.. The Desert’s
Finest dispensary is currently generating meaningful sales, driven
in part by its convenient location near Palm Springs and an
extensive list of registered patients. Once part of the Nabis
portfolio, we will continue to grow this location adding in our BIS
products for sale.”
Nabis has improved the terms of the acquisition in an amended
agreement. The Company now will acquire 100% ownership of Desert’s
Finest for a total consideration of USD $5.6 million (CAD $7.5
million) composed of USD $1.9 million in cash and $3.8 million in
the principal amount of a Convertible Note (the “Note”).
Desert’s Finest has more than 40,000 registered patients and
sales exceeded USD $5.7 million in 2018 and 47% gross profit
margin. The dispensary is on track to deliver similar results for
2019. Desert’s Finest currently sells a wide assortment of products
including flower, vape, and edibles, available in a variety of
price ranges. Nabis’ BIS brand products will be added to the
dispensary’s product mix in early 2020.
The dispensary, which is licensed by the State of California for
the sale of cannabis products, includes the potential for license
expansion to add production and cultivation activities on the
property subject to the future submission of the license.
Amended Terms
The Note has a 12-month term at a 6% rate of interest with a
forced conversion if, during any 10-Day VWAP period, the
volume-weighted average price of a share is at least C$0.70, along
with agreed upon market cap of C$35,000,000 and daily trading
volume average of C$100,000. Following such a period Nabis shall
issue to sellers such number of whole shares of NAB Common Stock
equal to the quotient resulting from dividing the outstanding
principal amount of the Note, together with any Accrued Interest on
the Note as of the forced conversion date by the lower of C$0.60;
and the 10 Day VWAP.
If, on the one year anniversary of the Company’s average market
capitalization on the Canadian Securities Exchange is at least
C$10,000,000 and the NAB common stock’s daily average trading
volume is C$100,000; the Company shall issue such number of whole
shares of NAB Common Stock equal to the quotient resulting from
dividing any remaining outstanding principal amount of the Note,
together with any Accrued Interest on the Note as of the outside
conversation date by the conversion price.
Kronos Capital Partners acted as financial advisor to Desert’s
Finest on the proposed transaction.
About Nabis Holdings Inc.Nabis
Holdings is a Canadian investment issuer that invests in high
quality cash flowing assets across multiple industries, including
real property, securities, cryptocurrency, and all aspects of the
U.S. and international cannabis sector. Led by two of the
co-founders of MPX Bioceutical, one of the largest takeovers in the
U.S. Cannabis space to date, the company has a proven track record
in emerging markets to create significant shareholder value. The
Company is focused on investing across the entire vertically
integrated aspects of the space with a focus on revenue generation,
EBITDA and growth.
For more information, please visit
https://www.nabisholdings.com/.
Forward-Looking StatementsAll
statements, other than statements of historical fact, included
herein are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
The risks are without limitations: that the acquisitions will be
completed by the Company or completed upon the terms disclosed; the
price for cannabis and related products will remain consistent and
the consumer demand remains strong; availability of financing to
the Company to develop the retail locations; retention of key
employees and management; changes in State and/or municipal
regulations of retail operations and changes in government
regulations generally. Important factors that could cause actual
results to differ materially from the Company’s expectations are
disclosed in the Company’s documents filed from time to time with
the Canadian Securities Exchange, the British Columbia Securities
Commission, the Ontario Securities Commission and the Alberta
Securities Commission.
The CSE does not accept responsibility
for the adequacy or accuracy of this release.
For inquiries, please
contact:
Investor Contact:Allison
SossKCSA Strategic Communications PH:
212-896-1267Nabis@kcsa.com
Company Contact:Shay Shnet, CEO
and DirectorPH: 905-581-5521 x107info@nabisholdings.com
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