Call it a case of spending money to make money. Denver-based General Cannabis Corp (OTC:CANN) has entered into a non-binding term sheet to acquire substantially all of the assets of a licensed recreational cannabis retailer in Boulder, Colorado.
The deal means that General will pay 50% in cash, 50% in shares of the Company’s common stock for virtually all of the tangible and intangible assets of the Business.
The state of Colorado recently approved a law enabling public companies to own Colorado-licensed cannabis companies.
Said CEO Michael Feinsod, “We are pleased to announce our plans to acquire a fourth licensed Colorado cannabis operator.
“This planned acquisition would expand our retail business to Boulder. The business we plan to acquire (there’s still a lid on the latter company’s identity) would provide another strong piece to our expansion strategy.”
CANN shares triumphed 11.11 cents, or 18.1%, early Monday afternoon, to 72.5 cents, on volume of 383,000.
