Mile High has a diversified roster of clients, providing security services to hospitality companies, such as hotels, and of course to licensed cannabis retailers and cultivators in Colorado. During the seven months ended July 31, 2017, Mile High had revenues of approximately $570,000. The purchase price consists of the issuance of 224,359 shares of CANN common stock under the asset purchase agreement. Based on the share price at the time of writing this article, CANN purchased Mile High for just over $400,000. The purchase price is subject to adjustment if less than 90% of certain Mile High customer contracts are assigned to General Cannabis. In addition to the acquisition, the owner of Mile High, Tim Moore, will become an employee of General Cannabis.
Michael Feinsod, Chairman of the Board of General Cannabis, commented, “This expansion of our security division is consistent with General Cannabis’ strategy of acquiring well run companies with strong management teams. Our acquisition of Mile High not only expands and helps to solidify our leadership in Colorado cannabis security, but also broadens our client base to other industries. We continue to actively seek complementary acquisitions.”