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Australis & BaM Go In On A Popular Dispensary Chain In California & Nevada

Body and Mind (BAMM.C) announced today that with the help of their financing partner Australis (AUSA.C) the company has acquired a popular dispensary chain in the coveted state of California.

ShowGrow currently has 3 dispensary locations: Long Beach, California, Santa Ana, California and Las Vegas, Nevada where Body & Mind is headquartered. A 4th location in San Diego, California is also currently being built out.

ShowGrow Long Beach

 

Why California Is Important

This acquisition adds to BaM’s multi-state approach which now includes California, Nevada and Ohio, those 3 states alone have a population of 54.2 million people.

One of the main reasons this is a smart is the brand is already established, companies are flooding into California trying to start cannabis brands left right and centre. Building a brand in a market like California right now is what many companies are doing as cannabis culture in the state is huge. Because the brand is already established this will give BaM near term revenue growth as cash is already coming into the business.

According to BDS analytics, In California, the cannabis edibles sector had $306 million in legal retail sales from March to December 2017, representing approximately 13% of all cannabis retail sales in the state

BDS Analytics also estimates that the cannabis sales in California will be just over $5 billion in 2019. CFN Media Group has gone a step further and estimated the market size to be $25 billion by 2026 if this state does not completely fall off the financial map.

Due to historical and demographic reasons, southern California is going to see disproportionate share of these sales volumes. In fact, Los Angeles, which has seen its middle class leave in droves because of anti-business policies, is a leader in the marijuana market.

NBC Los Angeles reported that San Diego alone sold nearly $3.6 million of cannabis in the first three quarters of 2018, with only a few retail outlets operating at the moment.

 

This deal was also the first sign that having Australis’s backing is effective in getting deals done, according to the press release the whole process took about 1 week. This allows BaM to move quickly in a market that is constantly changing and developing.

Scott Dowty, CEO of Australis commented, “We are consistently looking for high impact transactions that can assist our portfolio companies in creating outsized returns and the ShowGrow deal does exactly that for BaM.  This deal provides BaM access to a tremendous market beyond Nevada and Ohio, and the ability to leverage the BaM brand further.  David Barakett’s experience in the industry is also a great addition to an already strong management team at BaM.  We will continue to support BaM in new deals while also identifying opportunities within our ecosystem that can further benefit BaM, our largest and most significant investment to date.”

Click here to read the full press release.

 

 

Disclaimer: Body & Mind is a paid client of High Energy Trading, click here to read full disclosure.

High Energy Trading is not a licensed broker-dealer, market maker, investment advisor, or underwriter. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

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