Following its Oct. 9, 2018 acquisition of NLV Organics, Flower One Holdings Inc. began trading on the Canadian Stock Exchange on Oct. 10 under the stock symbol “FONE.”
“There have been a series of successive and very significant milestones achieved in a very short timeframe, but today’s commencement of trading on the CSE is a pivotal moment for Flower One,” president and CEO Ken Villazor said in a press release. “Over the past 10 months, Flower One has demonstrated to its shareholders the Company’s ability to execute on our overall business plan.”
With the acquisition of NLV Organics and related parties (NLVO), Flower One now owns nine licenses in Nevada.
“This transaction is more than an acquisition, it is a true partnership that strengthens Flower One’s business model and our ability to tightly execute market entry in Nevada,” Villazor said in an Oct. 9 press release. “We have worked closely with NLVO’s founders and management for several months. The collaboration and knowledge transfer between our organizations has been exceptional and, for Flower One, has validated how accretive this acquisition will be for our company and our shareholders.”
NLVO is a fully operational, 25,000-square-foot cultivation and production facility located in North Las Vegas. It is fully licensed to grow and process cannabis for both the medical and recreational markets in Nevada. NLVO has nine grow rooms capable of cultivating a total of 4,500 plants per cycle.
Flower One continues to advance its overall business plan with a focus on the Nevada marijuana market. Medical marijuana use in Nevada was made legal on Nov. 7, 2000. Cannabis in Nevada became legal for recreational use effective Jan. 1, 2017. According to state officials, Nevada’s fast-growing marijuana industry had revenue in the fiscal year ending June 30 totaling $529.9 million overall, including $424.9 million for recreational use alone.
As consideration for the purchase of the NLVO property and business, Flower One, through its wholly owned subsidiaries, will pay NLVO a total consideration of $27.2 million consisting of $4.6 million cash, a vendor note of $14.5 million and 4 million common shares of Flower One at a price of $2 per share, valued at $8 million.
The purchased assets will include a 100% interest in a property in North Las Vegas, Nevada, and all of the business’ tangible and intangible assets, including, the business name(s), product brands, inventory, biological assets, five Nevada cannabis licenses, intellectual property and assignable supply contracts associated with the current business of NLVO.
The acquisition of the NVLO business and property is subject approvals including, but not limited to, approval by the Canadian Securities Exchange, the shareholders of NLVO, and approvals from the State of Nevada and City of North Las Vegas. The transaction is expected to close prior to the end of the year.