Canadian marijuana cultivator Flower One Holdings agreed to purchase a Nevada cannabis cultivation business for $27 million, expanding the Toronto-based company’s footprint in the Silver State’s rapidly growing MJ industry.
With the purchase of 100% of Las Vegas-based NLV Organics, Flower One (Canadian Securities Exchange: FONE) gains a 25,000-square-foot cultivation and production facility in North Las Vegas, including nine grow rooms capable of harvesting 4,500 plants in one cycle, according to a news release.
Flower One will pay NLV Organics a combination of cash, a vendor note and shares of Flower One stock.
Here’s what you need to know:
- The deal gives Flower One five additional cannabis business licenses in Nevada, bringing its total to nine permits for both recreational and medical marijuana cultivation and production. NLV Organics also has a pending distribution license.
- NLV Organics claims to have business relationships with roughly 30 retail stores in Nevada.
- Flower One also purchased NLV Organics’ full genetic inventory and access to more than 50 strains, which the company says will be essential to onboarding plants into its more than 400,000-square-foot cultivation facility.
- The deal is the latest in a string of acquisitions of U.S. marijuana companies by Canadian businesses.