CannaRoyalty signed a multimillion-dollar deal to acquire FloraCal Farms, a move that expands the Ontario-based firm’s California portfolio.
- Total purchase price of Sonoma County-based FloraCal includes 1.3 million Canadian dollars ($1 million) in cash and 3.5 million shares of CannaRoyalty.
- CannaRoyalty will provide an additional CA$3.8 million in cash and 3.5 million more CannaRoyalty shares over three years, based on performance milestones built into the deal. Those milestones include a commitment by FloraCal to fully expand into its 42,000-square-foot facility and meet certain product thresholds and cost controls.
The deal follows CannaRoyalty’s acquisitions in March of three California businesses: RVR, a large-scale medical and recreational marijuana distributor; Alta Supply, a small MMJ distributor; and Kaya Management, an edibles and vaporizer maker.
Marketed as a grower of ultra-premium flower product, FloraCal posted $6.4 million in revenue in 2017.
CannaRoyalty is among a growing number of larger, publicly traded Canadian firms that are increasing their stake in the California market, where there are no residency requirements for ownership of cannabis businesses.
CannaRoyalty trades on the Canadian Securities Exchange under the ticker symbol CRZ and on over-the-counter markets as CNNRF.