Ventura Cannabis (VCAN) Gets Conditional Regulatory Approval to Close Kush Rush Acquisition
LOS ANGELES, August 22, 2019 (GLOBAL NEWSWIRE)– Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis”, “VCAN”, or the “Company”) is pleased to announce it has received conditional regulatory approval from the Bureau of Cannabis Control to close its acquisition of Kush Rush, a Sacramento, California dispensary and delivery service which will serve as a template for the California dispensaries the Company has under contract or application. Kush Rush is expected to generate $500,000 in annual revenue, with 15% operational EBITDA margins, for the first full year of acquisition.
The owner‐operator will continue to operate the business with certain incentives to increase sales and profits. The Company will pay $210,140 in cash consideration at closing, representing the entire cash component of the deal, additionally the Company will issue 1,157,459 shares, or $428,260 in value, to the owner-operator, for total consideration of $638,400.
For more on Kush Rush and its advanced delivery service, see www.venturacanna.com
- VCAN has executed binding Purchase Agreements to acquire five dispensaries; with the last three awaiting regulatory approval in California.
- VCAN has executed a binding Purchase Agreement to acquire a vertically integrated cannabis product company awaiting regulatory approval in California.
- VCAN has the balance sheet and cash flow to close these deals that comprise the platform to achieve the previously announced annual targets.
Three ways to increase revenue post closing:
- Increasing the customer base using targeted VCAN products for seniors and professionals.
- Increase customer spending with higher quality, and higher priced VCAN products.
- A growing overall market – increasing the estimated annual revenue for the dispensaries under contract for revenue growth after closing based upon operational improvements and marketing initiatives.
The management will look to improve revenues from the acquisition with similar operational and marketing initiatives as it has implemented with the Amberlight acquisition, which has yielded success since the acquisition in May 2019.
For more information contact:
Ventura Cannabis and Wellness Corp.
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 August 22, 2019, 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.