Delta 9 Cannabis (TSX: DN) (OTCQX: VRNDF) has entered into a binding letter of intent (LOI) with Modern Leaf Group to sign an agreement to acquire all assets of the two proposed retail cannabis stores in Alberta.
Following the completion of the acquisition, the company will have a total of six operating retail stores in Western Canada.
“The proposed acquisition of these additional cannabis stores continues our strategy of establishing a chain of Delta 9 branded retail stores across Canada,” stated John, Arbuthnot, the founder and CEO of Delta 9.
The purchase price for the proposed transaction is $1.30 million, where $1.0 million will be satisfied through the issuance of 1,250,000 common shares in the capital stock of the company at $0.80 per share and $150,000 will be paid as a deposit.
If the proposed transaction proceeds, the deposit will be applied against the purchase price, and the $150,000 balance will be satisfied in cash on the closing date of the proposed transaction.
The company expects the deal to close on or around November 30 this year.