Body and Mind have commenced cultivation operations in West Memphis, Arkansas near the border with Tennessee. The Body and Mind branded dispensary was the 22nd dispensary to open in the state out of a total of up to 40 licensed dispensaries approved in Arkansas. The cultivation facility was built out in 2020 and has recently received all approvals required to commence cultivation.
Arkansas is a limited license medical state with a population of over three million (2019 US Census). The state has currently approved 38 dispensaries with a total of 32 dispensaries currently open and six anticipated to open in 2021. In 2020 a ballot initiative was launched to qualify adult use-use measures, however, the campaign fell short on signatures stemming from challenges around the COVID-19 pandemic.
"We have been planning cultivation operations with licensee Comprehensive Care Group since building out the facility in West Memphis last year, and we're looking forward to bringing our years of medical cultivation and operational experience to the Arkansas market," stated Michael Mills, CEO of Body and Mind. "The cultivation operations in Arkansas will provide patients with new strains and allow increased margin as the Company expands cannabis offerings and enhances our supply chain."
The Company is also pleased to announce that it has entered into a capital markets advisory agreement with Sophic Capital Inc., a comprehensive capital markets advisory firm focused on growth companies. The agreement with Sophic is effective for a twelve-month term and Sophic is entitled to receive 250,000 stock options and a monthly fee of US$8,000. The stock options vest in four equal installments over a period of twelve months and have an exercise price of CAD$0.65 per share for a period of three years from the date of grant.
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