iAnthus Capital Holdings Inc. (CSE:IAN)(OTC:ITHUF)(FRA:21A) just announced that the New York State Department of Health has approved the company's proposed acquisition of Valley Agriceuticals, LLC. The Department of Health also announced that Valley Agriceuticals has been granted a "Registered Organization" license under the medical marijuana program of the State of New York.
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As per the license, Valley Agriceuticals has been granted approval for cannabis cultivation and manufacturing operations at its Wallkill, NY facility. In addition, the company has been granted dispensary locations in Brooklyn (Kings County), Dutchess County, Oneida County and Suffolk County.
iAnthus recently agreed to acquire 100% of Gloucester Street Capital, LLC and its wholly owned subsidiaries, Valley Agriceuticals and Valley Agriceuticals Real Estate, LLC for $17.3 million in a combination of cash and stock. $2.3 million is payable in cash with the remainder being payable in a combination of common shares and Class A restricted voting convertible shares. Upon the completion of certain milestones, up to 5 million more iAnthus shares may be issued to shareholders of Valley Agriceuticals. The deal is expected to close during the third quarter of 2017 pending the requisite approvals and completion of definitive documentation.
In addition to acquiring the company and its license to cultivate, manufacture and operate dispenseries, the proposed acquisition includes a 6,500-square foot custom-built cultivation and processing facility and 136 acres of land that is currently zoned for cannabis cultivation.
Related: iAnthus Capital to Acquire New York MMJ License Holder
iAnthus Capital's CEO, Hadley Ford
"Today marks a big step for the iAnthus and Valley Agriceuticals teams, receiving the state's blessing for the acquisition, in addition to the granting of the license and dispensary locations to the Valley Agriceuticals team. The team is already making progress in securing prime real estate in each of the dynamic markets in which it has been granted licenses. The Brooklyn and Suffolk County dispensaries in particular provide Valley Agriceuticals with direct exposure to large patient bases."
Valley Agriceuticals' President, Erik Holling
"On behalf of the Valley Agriceuticals team, we are excited to be given the opportunity to join New York's medical cannabis program. Our team looks forward to ensuring that New York's medical cannabis patients have access to the best medicines possible to take full advantage of the health benefits of medical cannabis."
Learn more about iAnthus Capital by visiting the company's marijuana stock profile in our global marijuana stock database. Be sure to check out more marijuana news regarding the state of New York by checking out our New York state news page.
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