Leading private multi-state operators MINT Cannabis
(“MINT”) and Shango (“SHANGO”) announced today that
they have, through a joint venture (the “MINT SHANGO JV”),
entered into a definitive agreement to acquire all membership
interests in The Cannabist Company Holdings Inc.’s (“The
Cannabist Company”) (Cboe CA: CBST) (OTCQX: CBSTF) (FSE: 3LP)
Florida subsidiary. This acquisition of a dominant operational
Florida vertical is anticipated to provide immediate scale for the
MINT SHANGO JV in this state through 14 dispensary locations, two
cultivation and manufacturing facilities, all inventory, and its
MMTC license (the “MINT/SHANGO Transaction”) for total
consideration of $5M. As part of the MINT/SHANGO Transaction, the
MINT/SHANGO JV will retain its existing indoor cultivation
facility, and The Cannabist Company has separately divested its
Lakeland facility. Additionally, the MINT SHANGO JV has also
entered into an agreement to transfer to The Cannabist Company all
of the outstanding equity interests in its existing MMTC license
holder which they plan to divest upon close.
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MINT and SHANGO are looking forward to launching their inaugural
joint venture in the highly populated state of Florida, expanding
their respective multi-state footprints. The MINT SHANGO JV expects
to deploy the collective strengths of each operator to provide a
leading consumer experience. MINT intends to focus its retail
prowess on driving operational excellence in the 14 Cannabist
dispensaries, while furthering its organic expansion efforts by
securing prime real estate locations in underserved cities across
Florida. MINT brings best-in-class retail expertise from its
Arizona headquarters to the Florida market. Post-closing, the
Cannabist dispensaries are anticipated to be rebranded and operated
under the banner “MINT Dispensary.” During the next 18 months, the
MINT SHANGO JV has plans to scale its Florida operations to 35
MINT-branded dispensaries.
These 14 retail locations will be augmented by SHANGO’s full
range of award-winning products and genetics, which have earned a
positive reputation in multiple states. With Florida’s requirement
for vertical operations, SHANGO is licensed to create a full range
of award-winning cannabis products, including flower, extracts,
concentrates and cannabis-infused edibles. SHANGO’s proprietary
cultivation method begins with superior genetics, and as a
recognized leader in the cannabis marketplace and industry, SHANGO
sets the highest standard for product quality and consistency.
SHANGO will bring its innovative products, unique strains, and
formats with hundreds of SKUs to these dispensaries across Florida.
SHANGO will help scale the two cultivation and processing
facilities acquired, in addition to one operational legacy indoor
cultivation and another indoor cultivation facility in development.
As a multi-state retail and cultivation operator, SHANGO strives to
set the standard for high-end products to provide consumers with a
great cannabis experience each and every time.
The MINT/SHANGO Transaction is subject to regulatory review and
approval before it can be finalized. CLD Advisory is acting as
financial advisor to the MINT SHANGO JV. ATB Capital Markets is
acting as financial advisor to The Cannabist Company.
MINT’s Chief Executive Officer Eivan Shahara stated: “We are
thrilled to join forces with the SHANGO team to bring a premier
consumer experience to the state of Florida. In particular,
(pending regulatory approval and closing), we look forward to
welcoming The Cannabist Company’s Florida family of employees into
our fold. From there, we will continue our Florida expansion
through organic growth.” SHANGO’s Chief Executive Officer Brandon
Rexroad added: “Florida has always been a prime target for our
teams due to the unparalleled market dynamics and potential for
depth in this state. We believe The Cannabist Company’s assets are
strongly situated in key cities across Florida, providing us with a
tremendous opportunity for vertical expansion of cultivation,
processing, and dispensing to serve its loyal patient base.”
Florida is a compelling limited-license state, which currently
hosts the largest medical cannabis program in the United States –
in 2023 alone, Florida exceeded $2B in legal cannabis sales. As of
January 2024, Florida had 871,459 registered active medical
cannabis patients (~5% of the adult population). This November
2024, Florida will vote on marijuana legalization, allowing Florida
residents to determine the market conversion to include adult-use
sales. Should adult-use cannabis be approved this fall, it is
expected to result in significant growth to Florida’s current
cannabis market, with some experts forecasting sales to range from
$5B to more than $6B.
The MINT SHANGO JV supports Florida’s adult-use ballot
initiative and looks forward to a bright future ahead in the
Sunshine State.
For more information about MINT Cannabis, visit:
www.themintcannabis.com For more information about SHANGO, visit:
www.goshango.com
About MINT Cannabis:
Founded in 2016, MINT Cannabis is a leading privately held
multi-state operator, cultivator, processor and retail innovator.
Headquartered in Tempe, Arizona, MINT Cannabis features a
state-of-the-art 12,000-square-foot flagship store, which is the
largest in Arizona and third largest in the nation. Despite
competition, MINT Cannabis has proven itself as a leading cannabis
retailer in Arizona, and continues its multi-state expansion into
Florida, Illinois, Michigan, Missouri, Massachusetts and
Nevada. Today, MINT Cannabis operates 14 dispensaries, with an
additional 14 currently under construction or pending acquisition
(outside of Florida).
MINT Cannabis was named “Most Innovative Medical Cannabis
Dispensary” by the International Commercial Cannabis Awards. Known
for spearheading innovation, MINT Cannabis launched the nation’s
first cannabis kitchen in 2018. MINT Cannabis provides a
consumer-forward innovative experience and strives for operational
excellence in all the communities it services.
For more information about MINT Cannabis, visit:
www.themintcannabis.com
About SHANGO:
SHANGO is a well-established vertically integrated cannabis
brand offering a full range of award-winning products, including
flower, extracts, concentrates and cannabis-infused edibles. The
company has state-of-the-art cultivation, processing and retail
operations in Nevada, Arizona, California, Oregon, Michigan,
Missouri and now Florida. Founded in 2014, the SHANGO brand is a
recognized leader in the cannabis industry, setting the standards
for superior genetics, product quality and consistency, and ethical
business conduct in the cannabis industry.
SHANGO has won numerous awards for its superb flower and
concentrates including first place at The G.O.A.T. Cup for Alien
Banana Candy and first place at the High Times Cannabis Cup for
Alien Cookies Live Rosin and the Watermelon Gummies, to name a
few.
Global Health & Pharma named SHANGO the Best Multi-State
Medical Cannabis Dispensary in the U.S. in its 2020 Healthcare and
Pharmaceutical Awards. Macias Gini & O’Connell named SHANGO to
its 2021 Cannabis 50 list, recognizing companies that are reshaping
and inspiring the continued growth of the cannabis and hemp
industries. SHANGO is committed to cannabis education and is a
fierce advocate of the safe and responsible use of cannabis
products.
For more information about SHANGO, visit: www.goshango.com
Forward-Looking Statements:
This press release contains “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are not representative of historical
facts or information or current condition, but instead represent
only MINT’s and/or SHANGO’s beliefs regarding future events, plans,
strategies, or objectives, many of which, by their nature, are
inherently uncertain and outside of MINT, SHANGO and/or the
MINT/SHANGO JV’s control. Generally, such forward-looking
statements can be identified by the use of forward-looking
terminology such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “future”, “scheduled”, “estimates”,
“forecasts”, “projects,” “intends”, “anticipates” or “does not
anticipate”, or “believes”, or variations of such words and
phrases, or may contain statements that certain actions, events or
results “may”, “could”, “would”, “might” or “will be taken”, “will
continue”, “will occur” or “will be achieved”. Forward-looking
statements involve and are subject to assumptions and known and
unknown risks, uncertainties, and other factors which, may cause
actual events, results, performance, or achievements of MINT,
SHANGO, the MINT SHANGO JV or the MINT/SHANGO Transaction to be
materially different from future events, results, performance, and
achievements expressed or implied by forward-looking statements
herein. The forward-looking statements contained in this press
release are made as of the date of this press release, and neither
MINT nor SHANGO undertake any obligation to update any
forward-looking information or forward-looking statements that are
contained or referenced herein, except as may be required in
accordance with applicable securities laws.
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Kristy Jozwiak KristyJ@dualitypr.com
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