Body and Mind Inc. is selling their Illinois assets NMG IL 4, LLC and NMG IL 1 LLC to Rubino Ventures IL LLC. Dutchess Cannabis also operates two Illinois dispensaries. The company is owned and run by women. This deal involves $5 million cash.
BaM is a smaller company that has found it difficult to raise growth capital. It’s also prohibitively costly. We determined in this market that selling Illinois assets to a well-established operator would create more value. The sale of assets to Dutchess Cannabis will allow the Company to improve its balance sheet, provide funds for the construction of its New Jersey dispensaries, and also profit from Dutchess Cannabis’ local infrastructure, and its future success, through the earned out.
Deal details
BAM will get $1,666,666 in cash at the time of signing the agreements for the Lynwood Property and another amount upon closing. Within the same timeframe, the company will receive two cash payments totaling $833.334 for the Markham real estate. The potential to earn additional cash is based upon the EBITDA for the twelve months prior calculated by the end of 15th calendar month following the implementation of respective MSAs.
Dutchess Cannabis has a passion for bringing high quality, affordable cannabis products to Markham City as well as the Village of Lynwood. Meg Rubino is the CEO of Dutchess Cannabis. She stated that they are excited to be good partners with both communities and to make them neighbors. Two dispensaries are located in Oak Park, and Morton Grove.
BAM troubles
Body and Mind informed investors in October of its serious financial difficulties. To save on fees, the company pulled its stock off the Over-the Counter Marketplace. In addition, at that time the company stated it was going to continue as a business. It had $291.543 of cash on hand and $5,411,007. Total liabilities for the company were at $28 millions.