Item 9 Labs Corp (OTCQX: INLB), a vertically integrated cannabis dispensary franchisor and operator that produces premium and award-winning products, has continued its merging and acquisitions spree in 2022. After acquiring ONE Cannabis Group (“OCG Inc.”), the parent company of the U.S. cannabis dispensary franchise, Unity Rd., in March 2021, the vertically integrated cannabis company has announced that it has signed a definitive agreement to acquire Sessions Cannabis (“Sessions''), one of Canada’s retail franchisors.
CEO of Item 9 Labs Corp. Andrew Bowden said, “This is a transformative acquisition that fast-tracks our entry into the Canadian market and brings tremendous value to our shareholders. With an exponential increase in store count across North America, this acquisition would transition us from a multi-state operator to an international cannabis company and the largest global cannabis franchisor.” He said, “The potential to accelerate growth through both fascinating and additional opportunistic acquisitions is immense. This is simply the first step to deeper market penetration, both in Ontario and other provinces.”
Item 9 merger and acquisition activities in 2022 have seen them acquire a dispensary license and storefront in North Denver, Colorado. They have recently signed an Asset Purchase Agreement (APA) for a medicinal and recreational dispensary and cultivator, The Herbal Cure, located in Denver.
This agreement that Item 9 Labs Corp. signed with sessions is evidence of the tremendous growth of the Canadian cannabis market over the years. Canada is the world’s second-largest cannabis market. This market brought in CA$3.9 billion in cannabis sales in 2021 and is expected to bring in CA$4.7 billion in 2022 and CA$6.3 billion in 2026. Ontario is the country’s largest cannabis market, boasting of CA$1.47 billion in 2021 sales.
“We are serious about accelerating our growth and opening the doors for more prospective entrepreneurs to enter the complex cannabis space, which is reflected in our merger and acquisition activity.” Said the president of Mergers and Acquisition, Mark Busch. “Acquiring one of Canada’s largest cannabis retailers is a great milestone for our team and demonstrates our ability to close large transactions.”
The closing of this acquisition is subject to customary closing conditions, and the details can be found in the company’s 8K filing on May 24, 2022.
Featured Image: Twenty20 @skliarovakristina
