National cannabis holding company IONIC Brands (CSE: IONC) (OTC: ZRRRF), formerly Zara Resources Inc., this morning announced the completion of the acquisition of Vegas Valley Growers North (“VVG”). The total purchase price of the acquisition is $8,870,000, comprised of a cash payment of $7,620,000 and 2,814,180 common shares of the company, subject to approval by the Board of Directors and the CSE. Located in Las Vegas, Nevada, VVG is a vertically integrated, cash flow positive opportunity with a projected 2019 revenue of $6.6 million, expected gross profits of $3.1 million and EBITDA of $2.0 million. The acquisition of VVG includes the lease for a 1,700 square foot production facility on 3.42 acres of land and four state licenses in hand for cultivation and manufacturing for both medical and recreational cannabis, which are being processed and are anticipated to be granted in Q2 2019. VVG is presently building a 60,000 square foot manufacturing facility that is expected to be completed in Q3 2019 and an additional 80,000 square foot facility is planned for Q4 2019. IONIC Brands expects to increase sales of IONIC branded products by leveraging off VVG’s existing distribution pipeline and introduce several IONIC product SKUs to this distribution channel. “The Nevada cannabis market is one of the cornerstone markets in the U.S. for building cannabis brands. With over 42 million visitors to Las Vegas per year, the VVG acquisition will provide our Ionic(TM) vape and Zoots(TM) edibles brands valuable exposure to national and international cannabis consumers,” IONIC Brands Chairman and CEO John Gorst stated in the news release.
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About IONIC Brands Corp.
IONIC Brands is a national cannabis holding company based in Washington and led by a team of successful entrepreneurs. The company is focused on building a multistate, consumer-focused cannabis concentrate brand portfolio focusing on the premium and luxury segments. The cornerstone brand of the portfolio, IONIC, is an accomplished No. 1 vaporizer brand in Washington that has aggressively expanded throughout the West Coast of the United States and is currently operating in Washington, Oregon and California. IONIC Brands’ strategy is to be the leader of the highest-value segments of the cannabis market and expand nationally. For more information, visit the company’s website at www.IONIC.social.
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