Acreage Holdings Enters Nevada Industry With Acquisition of Vertically Integrated Deep Roots Healthcare

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Deep Roots Operations:

Deep Roots’ vertically integrated operations include things like cultivation, manufacturing &amp processing, a wholesale and distribution small business, and seven retail dispensary licenses. A description of the operations follows:

Cultivation: 18,000 SF of indoor flowering canopy for higher finish flower housed in a 40,000 SF creating in Mesquite, NV.

Manufacturing &amp Processing: Housed in the identical 40,000 SF creating in Mesquite, Deep Roots has a manufacturing facility and a butane extraction lab to generate their distillates and edibles.  The facility has ample space to make a Type Factory to expand its personal internal home of brands all through Nevada as properly as other third-celebration brands it has agreements with.

Brands: Deep Roots at present manufactures and produces 4 internally created brands. 

Deep Roots utilizes its name for flower and concentrates and at present produces distillate cartridges, disposable pens, shatter, wax, and distillate for edibles, beneath the Deep Roots brand name. Chillers hard candies has an substantial selection of flavors which includes watermelon, lemon, cinnamon, mango, and pineapple.  They are usually sold in a tube with ten really hard candies, every containing 10mg of THC.Bluebirds – a line of pre-rolled solutions that usually come in packs of 1 or 3, produced from many strains of Deep Roots’ higher-high quality flower.Helix Twist – a line of gummies that come in six flavors which includes Sour Cherry, Important Lime, Blood Orange, Cucumber Serrano, and Ginger Peach.Wholesale and distribution small business: Deep Roots at present sells and distributes its Deep Roots, Chillers, Bluebirds, and Helix Twist branded solutions, and other third-celebration brands, into almost 80% of the retail dispensaries in Nevada, producing it 1 of the most connected wholesale operations in the state.

Retail Dispensary operations: Deep Roots has licenses to operate seven retail dispensaries, 1 of which is at present in operation, one more is beneath building, and 5 more areas that are at present in improvement. Of the 5 remaining licenses to be created, 4 are in the higher Las Vegas location and the fifth is in Reno.

Mesquite: The Deep Roots Harvest dispensary, which is about 7,500 SF is positioned in a 40,000 SF creating on the identical house as its 40,000 SF cultivation and processing facility on a 10.four acre web page.  Mesquite is a picturesque golf and retirement neighborhood with a robust tourism sector.  The closest dispensary to Mesquite is about 80 miles away and maintains quite strict licensing restrictions and no more licenses can be issued till the population increases by additional than 100%.  Offered its restricted competitors location, the Mesquite dispensary enjoys some of the highest annual revenues in the state. West Wendover: A dispensary license to operate in West Wendover, a little town with a quite robust tourism sector with the closest dispensary 120 miles away.  The West Wendover place will be around 10,000 SF and is anticipated to open in late 2019. Deal Terms:  The total deal is valued at $120 million, which includes $100 million in typical units of Higher Street Capital Partners, LLC and $20 million in money.  Higher Street Capital Partners, LLC will problem up to four,761,905 typical units at a deemed worth of $21.00 per unit.  Particular Deep Roots personnel will have a portion of their issued typical units be topic to a lock-up schedule.  The deal is anticipated to close in the second quarter of 2019.

Nevada Mergers and Acquisitions

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