Oregon-based cannabis oil company Golden Leaf Holdings paid $1.925 million to acquire cultivation and extraction licenses from NevWa, a Nevada company that does business as Grassroots.
NevWa's cultivation and extraction license, based out of Sparks, Nevada, allows for the distribution and sale of products across the state of Nevada, including in Las Vegas and Reno.
Golden Leaf Holdings’ move comes as Nevada is preparing to introduce recreational marijuana into a state that already has a medical cannabis market.
A preliminary framework for Nevada’s adult-use market is expected in July. The state will start accepting license applications by January 2018, though existing medical marijuana businesses will have first crack at the rec market.
“The level of tourism in the state, combined with the reciprocity provision in the state’s cannabis laws, positions Nevada to become one of the largest and most dynamic markets in the country,” Golden Leaf CEO Don Robinson said.
Medical marijuana is currently legal in Nevada, and the state's recreational market is scheduled to launch in July 2017.
Nevada's medical market also enables reciprocity for patients, whereby patients from other states can legally use their medical marijuana cards in Nevada, opening the medical market to the state's more than 40 million yearly visitors.
Pursuant to the Transaction, NevWa will receive from GLH US$1.925 million. The Transaction is subject to certain conditions, including receipt of all regulatory and stock exchange approvals and all other necessary third party consents and approvals.
AC Group Financial Inc. (AC Group) acted as advisor to the Company on this acquisition, as well as the three acquisitions previously announced in recent weeks.