Sunniva, which operates in the world’s two largest cannabis markets, being Canada and California, acquired an 80% membership interest in 420 Distribution and Coachella Distillation and will assume the existing leases of the commercial property located in Coachella, Calif.
The total consideration for the companies was not material, according to a company statement.
420 currently holds a temporary distribution license from the California Bureau of Cannabis Control and Coachella currently holds a temporary type “P” manufacturing license from the California Department of Public Health. The licenses are set to expire on April 30, and July 26, respectively.
The companies will file annual license applications for the licenses which will extend the temporary status. Upon receipt of the annual distribution and manufacturing licenses, CP Logistics, a subsidiary of Sunniva, will acquire the remaining 20% membership interests in the companies for a nominal amount.
If the companies fail to obtain the annual licenses, the acquired interest in the companies will revert to Group Two and the purchase price will be repaid to CP Logistics.