Cannabis One announced it will acquire Nevada-based cultivation, manufacturing, and brand house Evergreen Organix for $24.6 million once approval is received from the Nevada State regulators.
The strategy of this acquisition is to give Cannabis One a significant brand presence in the medicinal and recreational Nevada marketplace. Evergreen Organix has projected its retail penetration level for its brands at approximately 93 percent in licensed dispensary locations.
Cannabis One will acquire its cannabis cultivation and manufacturing licenses, flower brand Fleur, Evergreen Organix, and EG.O. Evergreen Organix has established relationships with manufacturing and distribution companies for production in Washington, Nevada, Colorado, California, Montana, and Oregon.
“Building on the momentum of our recent announcements related to the acquisition of the Honu and Fat Face Farms brands, Cannabis One is now excited to bring the Evergreen Organix family under the CBIS banner,” said Jeffery Mascio, CEO of Cannabis One. “With the addition of these popular Nevada marques to our growing portfolio of ‘Best-of-Breed’ brands, and the expansion of Cannabis One’s cultivation and manufacturing reach into the state of Nevada, CBIS continues to demonstrate its ability to execute on its stated strategy – Acquire popular brands in vibrant markets and leverage that consumer enthusiasm into multi-state retail and manufacturing expansion.”
Jerry Velarde, President of Evergreen Organix, will be joining the Cannabis One team as Chief Marketing Officer. “Evergreen Organix believes CBIS represents an exceptional value proposition and a valued industry partner through which to launch the next phase of our progressive state-legal expansion program,” he said. “Having already established a reputation centered around brand quality and consistency in the minds of cannabis consumers, we are now excited to jointly announce the contribution of our Evergreen Organix suite of brands, which includes the substantial cultivation and manufacturing infrastructure we have been building since 2015 in the Nevada marketplace, to Cannabis One’s growing House of Brands.”
While more prominent companies are absorbing smaller companies, new and expanding cannabis businesses in Nevada have filed suit about the next round of licenses awarded in the state.
Judge Elizabeth Gonzalez announced she would hear arguments on May 24 on a bid by dozens of companies to freeze new licenses awarded for the cannabis sales market. The judge explained that she could not officially consolidate seven lawsuits filed in Clark County District Court, and she has no jurisdiction over two lawsuits filed in Washoe and Lyon counties.
“I have invited participation in the preliminary injunction hearing of all interested parties in order to avoid potentially conflicting rulings,” Gonzalez said.
Companies filing the lawsuits have accused state tax officials of failing to disclose how they chose who were awarded licenses in December 2018 from 462 applicants for 61 new cannabis dispensary and production licenses.
Gonzalez was assigned the case filed by MM Development Co. and LivFree Wellness, seeking judicial review of state Department of Taxation rules. She also was assigned the lawsuit filed by Serenity Wellness Center challenging the constitutionality of what the company calls an “arbitrary and capricious” state process for licensing cannabis sales, cultivation, and production.
Banking is another factor for cannabis businesses located in Nevada and around the country. US Senator Jacky Rosen (D-Nev) met with cannabis business representatives in Las Vegas on April 22 about banking and financial services. Since the sales of cannabis remain prohibited under federal law, cannabis businesses are forced to become a cash business only adding to challenges of the cannabis industry.
