Item 9 Labs Corp. INLB has secured the necessary financing to complete the previously announced acquisition of Sessions Cannabis. The total cash purchase price of the transaction is $12.8 million, which is being fully funded through an acquisition line of credit with a 5-year term from a commercial lender.
“Our highly anticipated acquisition of Sessions is on track to close in March. We have completed the due diligence process, received all required approvals, and now, secured the financing to bring this transformative acquisition across the finish line and create the largest international cannabis retail franchiser and publicly traded cannabis franchise company in North America,” stated CEO of Item 9 Labs Mike Weinberger.
Sessions currently generates more than CA$80 million in annual systemwide sales with over 45 locations open throughout Ontario, up from 40 earlier in 2022, and is continuing to grow rapidly. The franchise network consists of 15-plus franchisees, with over 10 who are multi-unit owner-operators.
The franchise business model will become fundamental to accommodate the shifts in the Canadian cannabis landscape and allow the future joint company to aid both existing independent dispensaries and prospective franchisees as part of its international growth strategy. By joining the greater combined North American franchise network of more than 50 dispensaries, they gain the ongoing, dedicated support and buying power needed to excel in highly competitive markets.
The closing of the acquisition is subject to customary closing conditions, details of which can be found in the company's 8-K filing on May 24, 2022.
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