Item 9 Closes Merger With ONE Cannabis Group, Expands Distribution Through Unity Rd.
Cannabis company Item 9 Labs Corp. (OTCQX:INLB) has merged with ONE Cannabis Group (OCG), the parent company of cannabis dispensary franchise Unity Rd.
The Phoenix-based company confirmed Tuesday that it closed the previously announced acquisition, agreeing to issue 19,08 million of its common stock to obtain all of OCG's common stock under the deal.
The combined entity represents one of the first vertically integrated cannabis franchises within the country and allows Item 9 to distribute products and brands in states where Unity Rd. is operating.
Item 9 said that OCG Inc. will be its wholly-owned subsidiary after the merger.
"Blending our premium, experiential cannabis brand with a true dispensary franchise model puts Item 9 Labs in a unique position to capitalize on opportunities in a dynamic and rapidly evolving regulatory environment," Item 9 CEO Andrew Bowden stated.
ONE Cannabis "complements and enhances our existing offerings" by allowing Item 9's products' national distribution through the Unity Rd. franchise network, he added.
OCG Inc. COO Mike Weinberger has been named chief franchise officer of Item 9.
"Extending our in-house knowledge in dispensary license applications and operations as well as having direct access to Item 9 Labs' deep bench of trusted, award-winning products are expanded benefits for Unity Rd. franchise partners, positioning them ahead of any competition," Weinberger said.
Unity Rd. was launched in 2018. Since then, the franchisor has inked deals with ten entrepreneurial groups that operate across six states.
Item 8 debuted on the OTCQX market in August after transitioning from the OTCQB market.
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