Highway 33 Capital transacts the first Arizona rural adult use cannabis license

FOR IMMEDIATE RELEASE

Miami, Florida
December 14, 2021

In April the Arizona Department of Health Services awarded 13 new Adult Use cannabis retail licenses across eight rural counties. Cannabis operator John Yasso of 101010 Management was one of over 400 applicants granted a license. Last week in a transaction facilitated by Highway 33 Capital Advisory the license was sold to Dr. Phil Wall a successful Arizona-based entrepreneur.

“The significance of this acquisition,” according to Highway 33 Partner Vincent Dipas, “is that being the first to be sold, this transaction establishes a benchmark for these rural cannabis retail licenses.”

Because there were no comparable transactions, the points of comparison used to establish a benchmark for the negotiations were legacy vertical licenses as well as lease rates for the offsite component of existing vertical licenses. With the consent of the parties and the assistance of the experienced legal counsel Highway recommended, the parties went directly to a purchase agreement.

Highway 33 Capital was chosen by John Yasso and Dr. Wall to help structure the negotiation based on the firm’s experience in Arizona’s cannabis market over the past four years and their ability to attract new qualified buyers. Timing from Highway 33 Capital’s introduction of buyer to seller to a signed purchase agreement was approximately two months. Timing from signed purchase agreement to deal close was a matter of just five weeks.

“Arizona assets and licenses are in high demand,” said Dipas. “Many sellers believe they don’t need to work with a banking advisory firm like Highway 33 Capital. Our strength was to bring a qualified buyer who could close the deal, which he did in record time.”

The firm is now working with Dr. Wall to source debt for his cultivation build out as well as working with Mr. Yasso to sell other assets his group owns in Michigan and Illinois.

For further information contact David Hofer, Highway 33 Managing Partner, at David.hofer@highway33.com

About Highway 33 Capital Advisory

With offices in Miami, Denver, Detroit and San Francisco is a professional advisory firm for Mergers and Acquisitions, buy-side/sell-side agreements, capital formation, value creation, growth and pre-IPO strategies for investors seeking vetted companies in highly regulated markets that as well as cannabis include: biotech, pharma, healthtech, CBD Hemp, and ancillary technologies.