Ethos Cannabis To Acquire 4Front Dispensaries In Maryland, Pennsylvania
The $18-million sale was first announced by 4Front last week, but the buyer wasn't disclosed at the time.
Ethos, a multi-state operator with a presence in Arizona, Florida, Pennsylvania and Massachusetts, will take over one operational Mission-branded dispensary location in Allentown, Pennsylvania, as well as four more in Maryland.
The four operational locations in Maryland are located in Catonsville, Hampden, Glenmont and Rockville.
Why It Matters
The acquisition takes Ethos one step closer towards its goal of developing a presence in America's Mid-Atlantic, East Coast, and Midwest regions.
Additional expansion is expected to come in short order. Per the agreement, Ethos is allowed to open two additional dispensary locations in Pennsylvania.
The transactions are pending regulatory approval from authorities in both Pennsylvania and Maryland.
The planned purchases by Ethos come after a recent capital raise of $32.25 million, which it intends to utilize in developing a market presence in several states.
"We have built our company with a strong balance sheet and financial support to allow us to capitalize on opportunities like this," Ethos' Pennsylvania President and CFO, David Clapper, told Benzinga.
CEO Teddy Scott also praised the deal.
"Our focus on controlled and strategic growth in markets that fit our business has put us in a position to grow at a time when many other companies are struggling," Scott said.
For 4Front, the announced sale follows suit with recent efforts to become cash-flow positive.
Initially, Ethos will operate its Maryland locations via a management agreement. In time, it will acquire the equity once regulatory periods close.
All Mission-branded dispensaries will be renamed under the Ethos brand.
Photo courtesy of 4Front
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