General Cannabis Signs Purchase Agreement to Acquire SevenFive Farm

Acquisition will increase revenue and EBITDA and provide a foundational block for Colorado expansion

DENVER, Jan. 27, 2020 (GLOBE NEWSWIRE) -- General Cannabis Corp (OTCQX: CANN), a company with deep domain expertise in providing services to the cannabis industry, today announced that it has signed a purchase agreement to acquire SevenFive Farm, a cultivation facility in Boulder, CO.  The pending acquisition will now be submitted to the Colorado state regulators (the MED) for approval; the acquisition will close when this approval process is complete.  The company originally announced the Letter of Intent for this acquisition in August 2019.

SevenFive Farm is a 17,000 square feet light deprivation greenhouse cultivation facility that has operated in Boulder county for over 4 years.  General Cannabis expects to improve production in the facility to approximately 300 lbs of flower per month.  The cannabis cultivated at SevenFive will initially be sold on the wholesale market and, as the company adds retail operations, used to partially supply the Company’s dispensaries.

Said Steve Gutterman, CEO of General Cannabis, “This acquisition represents another step in executing on our Cannabis 3.0 strategy.  We are acquiring a proven, successful facility.  We will deploy Next Big Crop, our cultivation consulting business, to improve production over existing levels.  And we will use the production from the facility to supply dispensaries as we add them.”

The Company expects that once the acquisition has been completed and integration has concluded, SevenFive Farm will generate over $5 million in annual revenue and over $3 million in positive contribution towards corporate EBITDA.  Said Gutterman, “Our goal is to acquire profitable, successful assets and then enable our seasoned management team to apply proven management practices to improve performance even further.  SevenFive fits perfectly into this model.”

Terms of the acquisition were not disclosed.

About General Cannabis Corp
General Cannabis Corp is the comprehensive national resource for the highest quality service providers available to the regulated cannabis industry. The company is a trusted partner to the cultivation, production and retail sides of the cannabis business. It achieves this through a combination of strong operating divisions, capital investments and real estate.  As a synergistic holding company, the company's divisions are able to leverage the strengths of each other, as well as a larger balance sheet, to succeed. The company's website address is www.generalcann.com.