- Fiore Cannabis (FIOR) has signed an LOI to acquire cannabis delivery company California Patients Club for C$1.2 million
- California Patients Club is one of the top cannabis delivery services in California with annual sales of US$2.2 million
- Fiore will fund the acquisition primarily through shares at a valuation to be determined
- The company expects the acquisition to close in 90 days
- Fiore Cannabis has been developing medical and recreational cannabis products since 2014
- Fiore (FIOR) is up by 3.85 per cent and is currently trading at $0.135 per share
Fiore Cannabis (FIOR) has signed an LOI to acquire cannabis delivery company California Patients Club for C$1.2 million.
California Patients Club is one of the top cannabis delivery services in California with annual sales of US$2.2 million and a strategic focus on northern California markets.
Fiore will fund the acquisition primarily through shares at a valuation to be determined. The shares will be locked up for six months and then released in equal parts quarterly over three years.
The acquisition will further integrate and expand Fiore’s offerings in California where it operates the Green Leaf Wellness cannabis retail store in Desert Hot Springs in the Coachella Valley.
The California cannabis market topped US$4.4 billion in sales in 2020 according to Marijuana Business Daily. Markets such as California are also seeing significant increases in demand this year as COVID-19 restrictions continue to be lifted across the U.S.
Fiore expects the acquisition to close in 90 days.
Erik Anderson, President and CEO of Fiore Cannabis, commented,
“There is such energy and excitement in the Coachella Valley for the cannabis industry. Our dispensary there is doing significant business serving recreational and medical customers, primarily in person. With regulations in California supportive of cannabis delivery, we see the opportunity to enter the delivery business, tie it to our growing retail business, and generate additional revenues for the company.”
John Jacobs, owner of California Patients Club, added,
“We have developed a top-tier cannabis delivery and e-commerce business with a solid customer base. We think we have the scale and the ability to grow our business beyond our current markets and aligning with Fiore is going to enable us to do just that. We want to be recognized as the best and most reliable delivery business throughout the state of California and this takes us one step closer to realizing that objective.”
Fiore Cannabis has been developing medical and recreational cannabis products since 2014.
Fiore (FIOR) is up by 3.85 per cent and is currently trading at $0.135 per share as of 9:30 am ET.