Hemp products maker LFTD Partners announced on Tuesday that it had signed letters of intent to acquire four different companies in Illinois’ regulated marijuana market.
A company press release stated that the company intends to invest in retail, buy Illinois cannabis licences, rent manufacturing space in Skokie and purchase industrial properties in Rockford.
Gerard Jacobs’, Chairman and CEO of the company, stated in a press release that “these acquisitions will diversify our businesses into exciting marijuana, retail, and real estate business.” As we hail from Chicago, we know Illinois well. John Murray and Erik Carlson are two very intelligent businessmen who we’re excited to work with.
Florida-based Company said it would be issuing about 7,6 million unregistered shares to complete deals. These could start closing as early as mid-March.
Nicholas Warrender said that “Our New Mexico experience has convinced us Lifted’s Urb is a brand which can be extended successfully into marijuana-based products.” We have finally found the right opportunity to do so in Illinois, which is a large, ‘limited license’ state.”
Two men filed a class-action lawsuit in November against LFTD, claiming that its Urb products had THC levels well above the legal limit.
Illinois also has regulatory uncertainties when it comes hemp. A bill to regulate hemp-based products was defeated in January by the Illinois state legislature. Chicago’s Mayor Brandon Johnson is pushing to grant city-level licenses for hemp businesses.
LFTD’s first of four deals involves the purchase of craft grow, transport and infuser licenses. Second, LFTD will lease an industrial building in Skokie that is 18,558 square feet and has been built to manufacture marijuana.
In Rockford, LFTD is purchasing two industrial buildings which could either be used to cultivate or produce THC-infused drinks, or sold.
The final deal targets Mrs. Buckbee’s Wake N Bakery, a hemp cafe, and at least 50% stakes in District Bar & Grill and Half Baked Bar in Rockford.
William Jacobs said that these acquisitions would add Illinois cannabis licenses and two industrial buildings to our asset list. “Based upon an appraisal, we expect but cannot guarantee that the ‘as is’ value of just one of the two industrial buildings will likely exceed the aggregate liabilities of the entities that we will be acquiring of roughly $4 million.”
The company has warned about several obstacles, such as regulatory approvals and possible shareholder dilution. It also cautioned that some targets would need to maintain their social equity status.
According to the press release, John Murray, a member of LFTD’s executive board, will be joining the team. Erik Carlson, meanwhile, will take on roles as general counsel and chief Compliance Officer.