Canadian Company Buys Out Arizona Dispensary

This past Monday, Nabis Holdings Inc., a Canadian investment company who’s sought out multiple assets within the cannabis industry, has just purchased 100% acquisition of a number of Arizona cannabis brands/companies, including:

  • Arizona-based Emerald Phoenix (medical marijuana dispensary)
  • Infusion Edibles (cannabis-infused edibles brand)

Management at Nabis Holdings Inc. expects this investment to bring in approximately $9 million USD in annual revenue.

Nabis outright purchased these two brands for $15 million USD ($19.65 million CAD).

“The closing marks a critical milestone to our expanding reach in Arizona’s strong limited-license, medical cannabis market. Our team has already begun laying the groundwork in strategizing to build out and optimize these assets with plans to introduce our BIS branded products at Emerald Phoenix and through Infusion Edibles’ established distribution network in Arizona. The previously disclosed US$2M in Nabis share consideration was added to the deferred note, resulting in no share dilution for the US$15M acquisition.”

Shay Shnet, CEO & Director of Nabis

Nabis Holding Inc.’s purchase can be looked at as both good and bad. On the one hand, there’s going to be a lot more variety and, potentially, cheaper options for the consumer. On the other, smaller businesses trying to get into the cannabis industry are going to have a difficult time fighting off big corporations as such.

This is a problem we addressed last week in the the article that discussed between Arizona Dispensary Association (ADA) vs. the AZ Cannabis Chamber of Commerce.

The AZ Cannabis Chamber of Commerce is aware of the impact big businesses already on the market can have on the little guys. Furthermore, they feel this will take away from healthy competition and create a corporatism atmosphere similar to that seen in the food industry.

The purchase of Emerald Phoenix and Infusion Edibles is another aspect of what the AZ Cannabis Chamber of Commerce fears.

In terms of the Arizona cannabis industry, these two companies were huge. Now that an even bigger cannabis investor has stepped in and bought them outright, they have the chance to grow even larger.

And no longer is it a matter of Arizona. Emerald Phoenix and Infusion Edibles now hold the potential to step foot into international territory.

Arizona residents who’re trying to make it in this market may find themselves at a dead-end. The cannabis industry is one of the most difficult businesses to get into as:

  • It’s not federally legalized or state legalized for recreational use.
  • Banks aren’t allowed to invest in cannabis companies.
  • There are a number of fees, permits, and regulations that require large sums of investments to start a business.

As the inevitable Arizona recreational legalization of cannabis continues to come closer, we can only hope initiatives presented by the AZ Cannabis Chamber of Commerce have their influence over the massive market this is bound to become.

Reference Sources

AZMarijuana: Canadian Company Buys Arizona Dispensary and Edibles Brand

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