SOL Global Investments Corp. has entered into letters of intent to acquire ECD, which operates as Northern Emeralds, a cannabis cultivation, processing and distribution company headquartered in Humboldt County, California, as well as six licensed dispensary companies in California that will subsequently operate under the nationally recognized “One Plant” brand. SOL Global intends to open One Plant-branded dispensaries throughout California (a total of 20 operating and licensed dispensary companies), Florida, and Michigan.
According to the company, SOL Global intends to establish a new separate cannabis multi-state operator (“MSO”) by combining its proposed acquisitions of Northern Emeralds and the six (6) One Plant California dispensaries with its previously announced proposed acquisition of Michigan-based MCP Wellness and the Company’s existing Florida-based cannabis company, 3 Boys Farms. If the proposed acquisitions are completed, SOL Global intends to pursue a “going public transaction” of the MSO by way of an initial public offering, reverse takeover, plan of arrangement or other similar transaction that will result in the listing of the shares of the MSO on a recognized Canadian stock exchange.
If completed, the two acquisitions will expand the Company’s footprint to include robust vertically integrated operations in 3 of the top 10 cannabis markets by revenue in the U.S., as forecasted by ArcView market research.
Spending on legal cannabis in California reached a total of $2.5 billion in 2018 and is expected to grow to as much as $5.6 billion by 2022, according to leading cannabis research firm ArcView. ArcView also predicts that spending on legal cannabis in Florida and Michigan could reach $1.6 billion and $1.4 billion, respectively, by 2022.