Item 9 Labs Corp. (OTCQX:INLB) has signed an asset purchase agreement with The Herbal Cure, a medicinal and recreational dispensary and cultivator operating in Denver, Colorado.
The Herbal Cure, founded in 2010, generated revenues of $5.4 million in 2021. Located in the desirable and central neighborhood of Washington Park in Denver, the 1,500 square-foot medicinal and recreational dispensary will be the company's future flagship location for the brand. Item 9 Labs anticipates the dispensary to be transitioned over to its cannabis dispensary franchise brand, Unity Rd., within six months of closing the acquisition, which is currently awaiting regulatory approval by Colorado's Marijuana Enforcement Division and the City of Denver.
The acquisition includes the current 5,000 square-foot facility, which has 3,500 square feet of space for on-site cultivation operations, corporate offices, team training and more. On the cultivation side, the APA also consists of a 3,000 square-foot medicinal and recreational cultivation.
"With The Herbal Cure dispensary ideally located in South Denver, we anticipate seeing accelerated brand penetration in the market thanks to heightened exposure amongst daily commuters as well as high traffic from tourism, especially during the summer months," said the company's VP of mergers and acquisitions Mark Busch.
"This flagship location is a tremendous value-add for the Unity Rd. brand as we develop in the Colorado market and is a premier avenue for our plan to bring our Item 9 Labs products to the state," Busch added.
In addition to Colorado, Item 9 Labs Corp. is actively seeking acquisitions of cannabis dispensaries in key markets in Arizona, Michigan and Oklahoma to convert into the Unity Rd. brand. Currently, the dispensary franchise has multiple agreements signed with nearly 20 entrepreneurial groups who are in various stages of development nationwide. It offers entrepreneurs the tools, resources, systems and training needed to successfully run a cannabis dispensary in their market, meanwhile maintaining full ownership of their business and dispensary license.
Mike Weinberger chief franchise officer of Item 9 Labs, will be one of the speakers at the Benzinga Cannabis Capital Conference in Miami. There’s still time to sign up for the event that will host many top names in the cannabis industry. Click here for more info.
