North America's premier "House of Brands" cannabis company Cannabis One Holdings Inc. (CSE:CBIS) (OTC:CAAOF) announced today that it has closed a non-brokered private placement.
The company has offered 2,287,500 subordinate voting units priced at $0.40 CAD each, as well as 136,499 super voting units priced at $4.00 CAD each. The total gross proceeds of the offering amount to around $1.46 million CAD.
In addition to the initial proceeds, the offering could generate more capital for Cannabis One within the next two years. Each sub voting unit entitles the holder to one sub share of the company as well as the right to purchase a second sub share at a value of $0.60. Likewise, each super-voting unit provides one super-voting share in the company and entitles the holder to purchase a second super-voting share at $6.00. Super-voting shares can be converted into ten voting shares.
All entitlements must be exercised within the first 24 months from the date of issuance. There is, of course, a four-month and one-day hold period on all securities offered through the private placement, in accordance with applicable securities laws.
Much of the offering was subscribed to by existing shareholders of CBIS. The company has said it intends to use the proceeds it has generated from the offering to fund general working capital. The proceeds will also help the company close a number of upcoming acquisitions and fund the expansion of its Colorado and Washington operations.
Cannabis One Holdings Has an Unparalleled Portfolio
Cannabis One's motto is "If we brand it, they will come." The company fulfills this motto by dedicating itself to the accumulation and optimization of popular cannabis brands all over North America.
In order to become a "globally-recognized House of Brands," the company must consistently add to its portfolio through strategic, data-driven acquisitions. These acquisitions keep Cannabis One ahead of other aggregate companies in the cannabis space.
In April, it finalized a deal to acquire the business and operating assets of Colorado-based JBC Enterprises, also known as Fat Face Farms. Fat Face is a well-recognized cannabis cultivator, and its master grower, Josh Monroe, has also been added to the CBIS management team.
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By the end of April, the company was already making its next major acquisition. On April 22, it acquired leading Nevada-based cultivation, manufacturing, and brand house Evergreen Organix. This deal added Evergreen Organix's award-winning, cannabis-infused product brands to the Cannabis One portfolio.
In July, Cannabis One continued its expansionist strategy by acquiring all issued and outstanding securities of Green Lady IP Inc. Based in the state of Washington, Green Lady operates three dispensaries that collectively earn about $9 million a year. The closing of this deal extends CBIS's cultivation and dispensary network across the American west coast.
"The Joint" is Changing the Way We Perceive Dispensaries
Cannabis One Holdings doesn't just acquire and hold onto high performing brands. It leverages the data and experience gathered from its portfolio of product lines and dispensaries to redefine the cannabis consumer's customer experience.
The company's state of the art flagship dispensary, The Joint, is located in the heart of Denver. It is an award-winning cannabis storefront that has been Leafly's number one dispensary in the city for the last three years running.
The Joint is not only popular, it's incredibly economical. The location generates an industry-leading $7,083 per square foot, meaning its layout, product offerings, and data-driven sales can be used to optimize the rest of Cannabis One's retail locations.
In addition, while The Joint is currently changing the way Colorado citizens buy their cannabis, it will soon do the same to cannabis consumers across all state-legal jurisdictions. Cannabis One plans on expanding The Joint's retail footprint to 200 locations over the next three years.
With new capital in hand and additional acquisitions planned for the future, Cannabis One Holdings will likely continue growing at the same pace that it has been. It will be interesting to discover which brands CBIS seeks out next and to see how the company optimizes its network for revenue and shareholder value in the coming years.
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