DionyMed Brands To Buy Los Angeles Cannabis Operations From MMAC

DionyMed Brands Inc HMDEF, a multi-state cannabis brands platform, signed a binding term sheet to acquire select assets from MM Esperanza 2 LLC, doing business as MMAC.

What Happened

The acquisition includes MMAC's 1.83 acre cannabis campus in Los Angeles, which includes a dispensary storefront, a distribution facility and manufacturing hub, and a direct-to-consumer fulfillment center.

DionyMed Brands will pay $19 million in the transaction that includes all property, leaseholds, equipment, and licenses. The value of the transaction includes $13 million in cash, subject to financing, and $6 million in stock.

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Why It's Important

Acquiring the Los Angeles assets from MMAC will allow DionyMed Brands to improve its operations in Southern California. Together with the company's footprint in Northern California, DionyMed's DYME brands portfolio will better serve one of the largest cannabis markets in the world.

The acquisition of MMAC's Los Angeles assets is subject to a number of conditions, including the execution and delivery of definitive documentation, completion of due diligence on MMAC and the approval of the companies' boards, shareholders, regulators, and third-parties.

Separately, DionyMed Brands on Monday announced its stock had been approved to be quoted on the OTCQB Venture Market.

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