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American Cannabis Co. To Buy Denver Cultivation And Extraction Operation

January 21, 2021 10:11 am
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American Cannabis Co. To Buy Denver Cultivation And Extraction Operation

American Cannabis Company Inc. (OTCQB:AMMJ) agreed to buy a set of assets from Andina Gold Corporation (OTCQB:AGOL).

Terms of the deal were not disclosed.

"We are not able to disclose terms but once our [asset purchase agreement] is executed we will file an 8K with detail," American Cannabis CEO Terry Buffalo told Benzinga.

The assets include Good Meds, as well as Andina's BOSM Labs, which runs licensed growing and extraction activities in Colorado. BOSM Lbas produces hydrocarbon-extracted cannabis products for wholesale, retail medical, and adult-use markets.

The assets all run at Andina's 60,000 square-foot facility in Denver.

The Good Meds brand is known for producing high-quality cannabis flower products for both medical and recreational consumers, while BOSM Labs is known as a producer of popular

Buffalo explained that this is a strategic move for the company.

“Officially having secured two non-binding LOIs to date," he said. "ACC will soon integrate three retail dispensaries and a total of 70,000 square feet of combined cultivation and extraction operations. The due diligence process for Good Meds and BOSM Labs has begun, and we anticipate this to close in Q2 of 2021."

American Cannabis has analyzed many opportunities both in Colorado as well as in other states, but ultimately chose to focus on the Colorado market, Buffalo explained.

"This approach will allow us to improve existing operational processes, refine our workflow and deploy an operational management platform that we can use as we branch out to other regions of the country," he added.

Christopher Hansen, Chief Executive Officer of Andina Gold, said he looks forward to working with Buffalo and his team to complete the transaction.