Nabis Holdings Inc., a Canadian investment company with specialty investments in assets across the cannabis industry, announced June 12 that it has signed a definitive agreement to acquire 100-percent ownership of Desert’s Finest, a dispensary in Desert Hot Springs, Calif.
The 6,000-square-foot dispensary holds a state-issued cannabis retail license and sells a wide range of products, including flower, vapes and edibles. Desert’s Finest has the potential for license expansion, which would add production and cultivation activities on the same property, according to a press release.
Desert’s Finest is located in the heart of downtown Desert Hot Springs, less than two hours east of Los Angeles and north of San Diego. It is also located near the annual Coachella Music Festival and is less than one hour from Joshua Tree National Park. It has more than 37,000 registered patients and exceeded $5.7 million in sales over the past 12 months, according to the press release.
“Launching in a new state is always exciting, but we are particularly thrilled to have now laid a footprint in California, the largest cannabis market in the U.S.,” Nabis CEO and Director Shay Shnet told Cannabis Business Times. “This will be the first of many Nabis locations with our unique brand of top-notch production and exceptional products, and [we] look forward to announcing more in the near future.”
Per the agreement, Nabis Holdings will acquire 100-percent ownership of Desert’s Finest for total consideration of $5.6 million, which will be paid by $1.9 million in cash and $3.8 million of Nabis’ common stock, according to the press release.
Earlier this month, in another move toward business growth, Nabis announced its acquisition of a 49-percent ownership stake in Cannova Medical, an Israel-based company that has developed an alternative solution for cannabis consumption using an organic sublingual strip.
“While we remain focused on our strategic plan for rapid expansion into limited-license states, we also pay close attention to companies that have the potential to disrupt the legal cannabis space,” Shnet said in a public statement at that time. “With the acquisition of Cannova’s unique technology, we will be well positioned to capitalize on the growth in popularity of consumable cannabis."