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Cannabis One set to buy US cannabis assets after entering agreement with Itachi Advisory Group

Itachi will work together with the firm on the purchase and sale of the assets from each of the sellers identified
Businessman signing a deal
The firm has entered into a letter agreement with Itachi

Cannabis One Holdings Inc (CSE:CBIS) (OTCMKTS:CAAOF) is set to buy a suite of US assets related to cannabis retail, cultivation, and manufacturing after it struck an agreement with Colorado-based cannabis industry consulting firm Itachi.

Itachi will work together with the firm on the purchase and sale of the assets from each of the sellers identified, which will include leasehold rights, intellectual property (IP), and tangible and intangible assets.

READ: Cannabis One to acquire Nevada-based Evergreen Organix

"We believe that Neil Demers and his team at Itachi have identified a host of attractive assets for Cannabis One to consider and we look forward to evaluating each opportunity independently, on its merits, but with the express intention of moving towards a definitive agreement with each party as quickly as may be practicable," said Jeffery Mascio, CEO of Cannabis One.

Benefits of a definitive deal includes the addition of certain assets associated with seven cannabis retail locations, which Itachi anticipates will collectively generate an estimated US$43,512,000 million in annualized revenue through fiscal 2019, the Vancouver-based Cannabis One said.

It is also set to provide a substantial growth catalyst for the expansion of Cannabis One's consumer-centric retail concept brand, The JointTM.

The deal will also represent the addition of certain assets associated with seven cannabis cultivation operations, which Itachi anticipates will collectively generate an estimated US$10.2 million in annualized system-wide brand revenue through fiscal 2019, Cannabis One said.

There is also an anticipated annual production of around 10,200 pounds, and through which Cannabis One reckons it can achieve an estimated EBITDA (underlying earnings) margin of 15% – 20%.

Adding to footprint

Meanwhile, the addition of certain assets associated with a medical and recreational cannabis manufacturing facility, will contribute a combined 18,000 sq ft in consolidated footprint, the firm said .

The firm anticipates this will provide expanded and accelerated throughput of Cannabis One's suite of portfolio brands, which will include: INDVR, INDVR Fire, INDVR Strains, Fat Face Farms, Honu, Evergreen Organix, EG.O, and Fleur.

This will be in addition to products developed through its licensing and manufacturing relationship with Cheech's Private Stash.

Shares added 0.91% in Toronto to $4.44.

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