Cannabis One Holdings (CSE: CBIS) has signed three agreements to acquire certain assets of Nevada-based LV 3480 Partners, 3480 Investors, and Agro Finance – collectively known as Evergreen Organix.

Cannabis One plans to acquire Nevada State-issued cannabis cultivation and manufacturing licenses, held by NV 3480 and 3480 Hacienda, respectively, and related infrastructure, subject to the approval of Nevada State regulators, in addition to the flower brand “Fleur” and the cannabis-infused product brands called Evergreen Organix and EG.O, among others.

Evergreen Organix has set up manufacturing and distribution relationships for the production of its signature suite of brands across six states: Nevada, California, Colorado, Washington, Oregon, and Montana.

Cannabis One Eyes Brand Presence in Nevada

Cannabis One says that the acquisition of Evergreen Organix will establish it with a significant brand presence in the Nevada recreational and medical marketplace, with an Evergreen Organix management-estimated retail penetration level for its brands in approximately 93.0% of Nevada State-licensed dispensary locations.

In addition, the company believes that the acquisition will provide, through its newly-acquired Nevada Cannabis Licenses, more than 27,000 ft2 of additional cultivation capacity to the company, with another 6,000 ft2 of active manufacturing space, facilitating the throughput of CBIS’ growing brand portfolio, which would now include: INDVR, INDVR Fire, INDVR Strains, Honu, Fat Face Farms, Fleur, Evergreen Organix, and EG.O – while also allowing for the manufacture of the Flav, West Edison, and Cheech’s Private Stash licensed branded product lines.

Further, the acquisition will generate an Evergreen Organix management-estimated annualized $15.0 million in system-wide brand revenue through the Evergreen Organix channel during fiscal 2019, with an estimated EBITDA margin of between 23.0% and 30.0%.

The deal, according to the company, will advance its vision to become a true multi-state operator for the manufacturing, distribution, and retail penetration of its brands and formulations while also securing additional long-term reciprocal manufacturing and distribution relationships in California, Washington, Oregon, and Montana.

Jerry Velarde, the president of Evergreen Organix, will join Cannabis One as the company’s chief marketing officer.

Transactions

Under the terms of the agreement with LV 3480, Cannabis One will acquire all intellectual property, product formulations, warehousing and logistics operations, and multi-state intellectual property licensing and manufacturing agreements with contracted partners. The company will pay $24.61 million to LV 3480 in connection with the transaction.

Under the terms of the agreement with 3480 Investors, the company will acquire two Nevada-issued licenses pertaining to the cultivation and manufacture of cannabis and cannabis-related products, subject to the approval of state regulators. Total consideration will be $15 million, comprising of $14.36 million in assumed liabilities and $645,000 in cash.

Under the agreement with Agro Finance, Cannabis One will acquire all cultivation and manufacturing equipment used in the production of the Evergreen Organix, EG.O, Fleur, Honu, INDVR, INDVR Fire, INDVR Strains, Cheech’s Private Stash, and Flav brands in the State of Nevada, in addition to the assumption of all financing and leasing activities to which Agro Finance is currently engaged. Total consideration will be $8.10 million in cash.

The closing of the transaction is subject to receiving all necessary governmental and regulatory approval, including, but not limited to the approval of a transfer of ownership by the Nevada Department of Taxation and the Clark County Department of Business Licenses.