Cannabis multistate operator iAnthus Capital Holdings is selling two Arizona marijuana stores and a cultivation facility to Sonoran Roots for $36.5 million.
The price will consist of $20 million in cash payable at closing and a $16.65 million secured promissory note issued by Sonoran, according to a Friday news release.
Sonoran, based in Tempe, is acquiring iAnthus’ two adult-use and medical marijuana stores as well as a cultivation and processing facility in Mesa.
New York- and Toronto-headquartered iAnthus said it plans to maintain a presence in Arizona through its stores in Crismon and Mesa.
The deal, expected to close during the first quarter, is part of iAnthus’ efforts to “optimize its portfolio, strengthen its balance sheet, and focus on markets with the greatest growth potential,” the release noted.
The divestiture will enable iAnthus to invest in its growth initiatives in Florida, Maryland, Massachusetts, New Jersey and New York, the company said.
“This transaction aligns with our ‘smart growth, strong margins’ strategy by enabling us to double down on markets where we can deliver the most value to our customers and long-term business interests,” iAnthus CEO Richard Proud said in a statement.
“By streamlining our Arizona operations, we are laying the foundation for a future defined by operational excellence, unmatched customer loyalty and enhanced profitability.”
“This transaction is highly accretive and strategically enhances our market position, increasing our Ponderosa Dispensary footprint to seven retail locations with broad geographical coverage,” said Michael O’Brien, CEO of Sonoran Roots.
“We are excited to continue providing exceptional cannabis products and experiences to customers in these locations.”
Shares of iAnthus trade as IAN on the Canadian Securities Exchange.
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