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Ventura Cannabis (VCAN) Gets Conditional Regulatory Approval to Close Amberlight Acquisition
LOS ANGELES, May 06, 2019 (GLOBE NEWSWIRE) — Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis”, “VCAN”, or the “Company”) is pleased to announce it has received conditional regulatory approval to close its acquisition of Amberlight, a Portland, Oregon dispensary which will serve as a template for the California dispensaries the Company has under contract or application. Amberlight is expected to generate $900,000 in annual revenue. The acquisitions revenues and profits are expected to be reflected in the quarter ending August 30, 2019 and are projected to be $225,000 for the quarter according to management estimates. At closing, Ventura will pay $403,000 in cash to the owner-operator of the dispensary. The owner-operator will continue to operate the business with certain incentives to increase sales and profits.
For more on Amberlight and its sophisticated retail experience, see www.venturacanna.com/amberlight
On May 1st, 2019, the management team outlined its three most pressing milestones:
- Securing, through acquisition or application, three types of state and city-issued licenses: a manufacturing license, a distribution license and a cultivation license in California.
- Closing the previously announced acquisitions, as well as other agreements with revenue-generating companies that have dispensing and delivery licenses, totaling estimated additional $2.1 million per year in annual cannabis revenues.* – Partially Completed
- Divesting the two inpatient (detox) addiction treatment centers while retaining the rights to supply cannabis to patients in order to generate additional cash to invest in cannabis assets.
*Closing of binding purchase agreements is dependent upon regulatory approvals and lease and other satisfactions.
“We are finally starting to see the regulatory process completed on the deals we signed early in the year,” said Jacob Gamble, CEO of Ventura Cannabis. “Amberlight is a special deal for us. It has several important attributes that make it important as the first acquisition. First, it comes with a very talented team that we are pulling into our strategy to be a vertically integrated, branded products company. Second, it comes with a template we can replicate in California for the dispensaries we start de novo from approved applications. Third, it was a very good value for the talent, profits and revenues we expect to see from this company. The cash portion of this deal was only $470,000 and we are getting a growing company with special talent and an enormous amount of data from existing customers in our segments.
Since our conference call last week, we have started making progress on our stated milestones to build value for our shareholders,” Continued Mr. Gamble. “We have started closing our binding acquisition agreements which are key to recognizing revenue and gaining shelf space for our soon-to-be-revealed products.”
For more information contact:
Ventura Cannabis and Wellness Corp.
CEO and Executive Director
Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The forward-looking information included are made as of the date of this release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations. For additional information about forward looking statements and the risks of investing, please refer to the page on our website with the conference call transcript.