Schwazze has signed definitive documents to acquire certain assets of Sucellus, LLC, pursuant to which the Company will manage Everest Apothecary, Inc., a New Mexico not-for-profit corporation ("Everest"). The proposed transaction includes retail dispensaries, cultivation, and manufacturing facilities.
The consideration for the proposed acquisition is US$38M and will be paid in a combination of cash, a four-year seller note, and Company common stock. The acquisition is expected to close in the second quarter of 2023 upon receipt of approval from the New Mexico Regulation and Licensing Department.
Established in 2016, Everest is a New Mexico-based licensed medical and recreational cannabis provider that consists of 14 dispensaries, one cultivation facility, and one manufacturing plant. The dispensaries are located in Albuquerque, Santa Fe, Las Cruces, Los Lunas, Sunland Park, Belen, and Texico. Everest's approximately 16,000 square feet of cultivation and 8,500 square foot manufacturing facility are located in Albuquerque.
This acquisition increases the Company's retail consumer base and furthers Schwazze's growth efforts in the New Mexico market, which upon transaction closing will bring the Company's total number of New Mexico dispensaries to 32, with over 450 Schwazze employees.
"This planned acquisition shows our commitment to the Company's super-regional cannabis growth strategy to go deep in select markets," said Nirup Krishnamurthy, President of Schwazze. "The Everest brand is a perfect complement to our existing retail brand in New Mexico, R. Greenleaf. Each serves a unique demographic, and we will continue to operate both retail banners in the state. By utilizing Schwazze's operating playbook, we fully intend to support the Everest team and its customers by delivering outstanding service, great selection, and quality products throughout the state of New Mexico."
Since April 2020, Schwazze has acquired, opened, or announced the planned acquisition of 60 cannabis retail dispensaries (bannered as Star Buds, Emerald Fields, R. Greenleaf, Standing Akimbo, and Everest) as well as eight cultivation facilities and three manufacturing plants across Colorado and New Mexico. In May 2021, Schwazze announced its Biosciences division, and in August 2021, it commenced home delivery services in Colorado.
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