VANCOUVER, British Columbia, March 17, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Nabis Holdings Inc., a Canadian investment company with specialty investments in assets across multiple divisions of the cannabis sector, has announced that it has terminated the agreement to acquire Desert’s Finest dispensary located in Desert Hot Springs, Calif. The acquisition was initially announced on June 12, 2019 with revised terms announced Oct. 1, 2019.
Per the terms of the amended agreement, Nabis was to acquire 100% ownership of Desert’s Finest for total consideration of US$5.6 million comprised of US$1.9 million in cash and US$3.7 million in a one-year convertible note. Desert’s Finest operates a 6,000-square-foot dispensary located in Desert Hot Springs, Calif.
“Given the downturn in the cannabis industry, capital markets are no longer helping fuel growth, resulting in the company narrowing their focus on acquiring assets that fit into our vertically integrated strategy. Although the Desert’s Finest acquisition was a great opportunity for us to enter the California cannabis market, acquiring a stand-alone dispensary no longer fits into our strategic plan,” said Shay Shnet, CEO of Nabis Holdings Inc.
Mark Krytiuk, COO of Nabis Holdings Inc., added, “The company remains focused on improving operations and profitability at the recently acquired Emerald Dispensary in Phoenix as well as the Infusion Edibles line of medicated products. We are continuing to make progress on building out the 'Camp Verde' facility in Arizona, a 44,000-square-foot cultivation, production and fulfillment facility that has also secured all available hemp license classifications."