SOL Global Investments Corp. (OTCQB: SOLCF) announced that it has entered into a binding agreement to fully acquire MCP Wellness, Inc. from Merida Capital Partners. The total price for the acquisition purchase is at $150 million and positions SOL Global prominently within the Michigan cannabis market. MCP Wellness will be acquired, after all regulatory approvals and customary closing conditions, with a $35 million cash payment and $115 million in equity consideration in CannCure. Upon completion of the acquisition, Merida Capital will own an estimated 42% of CannCure.
MCP Wellness has three fully licensed cannabis provisioning centers in Michigan, with a 4th center scheduled to open in the city of Ann Arbor in May, a license to process cannabis, and rights to acquire two cannabis cultivation licenses in the state of Michigan.
It is expected by both entities, SOL Global and Merida Capital, that MCP Wellness will generate revenue above $61 million for 2019 and more than double that with a projected revenue excess of $121 million and more in 2020.
3 Boys Farms, LLC, one out of Florida’s original 14 cannabis operation and vertically integrated medical cannabis treatment center license holders, is owned by SOL Global through SOL Global’s wholly-owned subsidiary, CannCure Investments Inc. (CannCure). It has been made clear by SOL Global that it intends to combine 3 Boys Farms and CannCure to create a new multi-state operator (MSO).
Mitch Baruchowitz, managing partner of Merida Capital Partners, stated: “Over the past several years, Michigan has become one of the country’s largest medical cannabis markets, projected at nearly US$900 million for 2019, according to New Frontier Data. With adult use coming in 2020, Merida is excited by the opportunity to combine one of Michigan’s leading retail operations with a Florida operator while aggressively pursuing additional acquisition targets across several states that will help create a more diversified company.”
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