SOL Global Investments Corp. Enters into $150 Million Acquisition of MCP Wellness, Inc.
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.
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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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SOL Global Investments Corp. Enters into $150 Million Acquisition of MCP Wellness, Inc.
