Cannabis Co. C21 Investments Secures Funding For $3.5M Acquisition Of Nevada's Deep Roots Harvest
Portfolio Pulse from Jelena Martinovic
C21 Investments Inc. has completed a non-brokered private placement offering, raising CA$4 million through convertible debenture units to fund the acquisition of Deep Roots Harvest, Inc.'s assets in Nevada for $3.5 million. The proceeds will support the purchase of a retail cannabis dispensary in Southern Reno, Nevada, by C21's subsidiary, Silver State Relief, LLC. The deal includes a $100,000 non-refundable deposit and a $3.4 million payment at closing. Meanwhile, potential cannabis rescheduling discussions by the Nevada Supreme Court and on a federal level could impact the industry.
May 07, 2024 | 4:01 pm
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C21 Investments raises CA$4M for the acquisition of Deep Roots Harvest, aiming to expand its cannabis retail operations in Nevada. The deal and potential regulatory changes could influence the company's market position.
The acquisition of Deep Roots Harvest by C21 Investments represents a significant expansion of its retail footprint in the cannabis industry, particularly in Nevada. The funding through convertible debenture units indicates strong financial planning and investor confidence. Additionally, the potential regulatory changes regarding cannabis classification could either pose risks or offer opportunities for C21, depending on the direction of the legal adjustments. Given these factors, the short-term impact on CXXIF is likely positive, reflecting the growth potential from the acquisition and the broader industry dynamics.
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IMPORTANCE 90
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