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Nabis Holdings Shifts Gears, Cancels Deal For Desert's Finest Dispensary

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Nabis Holdings Shifts Gears, Cancels Deal For Desert's Finest Dispensary

Cannabis-oriented investment company Nabis Holdings Inc. (OTC: NABIF)(CSE:NAB) is nixing a dispensary deal.

The Toronto-based firm said Tuesday it has cancelled an agreement to acquire Desert’s Finest dispensary in California. The dispensary is located in Desert Hot Springs, and covers a 6,000-square-foot space.

Per the amended agreement that was first announced in June, and then changed in October, the company was supposed to obtain 100% ownership of Desert’s Finest for $5.6 million, consisting of $1.9 million in cash and $3.7 million in convertible notes with a one-year term.

“Given the downturn in the Cannabis industry, capital markets are no longer helping fuel growth, resulting in the Company narrowing their focus on acquiring assets that fit into our vertically integrated strategy,” Shay Shnet, CEO of Nabis said in a statement. “Although the Desert’s Finest acquisition was a great opportunity for us to enter the California Cannabis market, acquiring a stand-alone dispensary no longer fits into our strategic plan.”

Nabis COO Mark Krytiuk added that the company remains focused on improving operations and profitability for the Infusion Edibles line of medicated products, as well as the Emerald Dispensary in Phoenix, which Nabis purchased in October.

"We are continuing to make progress on building out the Camp Verde facility in Arizona, a 44,000-square-foot cultivation, production and fulfillment facility that has also secured all available hemp license classifications,” Krytiuk said.

Related Links:

Nabis Holdings Announces MOU With Israeli-Based Pharmaceutical Panaxia

Nabis Posts Q4 Financial Results

 

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