- Cannabis industry investment builder Nabis Holdings has purchased Desert Hot Springs’ Desert’s Finest dispensary
- The new asset gives Nabis an entry point into the world’s largest cannabis industry market, and it is strategically located near the annual Coachella Music Festival
- Nabis envisions revenues of C$14.8 million this year with a leap to C$167.9 million next year, translating into forecasts of C$4.1 million in profits this year and C$67.5 million in 2020
The remarkable rise of the cannabis industry and its variety of sectors has created a sea change in some market metrics, drawing investors’ risk capital from last year’s newsmakers (http://cnw.fm/MwLZ7). At the forefront of the trend, Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) (FRA: 71P) has been plying its experience in building an expanding portfolio of cannabis investments to create high-quality cash flow opportunities in states where limited licenses are granted for professional operations.
Nabis entered new territory with its first acquisition in California – the world’s largest market for the cannabis industry – which it announced in a June 12 news release noting a definitive agreement to acquire 100 percent ownership of Desert’s Finest, a 6,000-square-foot dispensary located in Desert Hot Springs, less than two hours east of Los Angeles (http://cnw.fm/qKA6Q).
“As we continue national expansion of the Nabis footprint, we are pleased to announce our first acquisition in the state of California, one of the dominant cannabis markets in the United States,” Nabis CEO and Director Shay Shnet stated in a news release. “Desert’s Finest has successfully generated material revenue driven in part by their convenient dispensary location in the Palm Springs region and extensive list of registered patients.”
The dispensary has more than 37,000 registered patients and brought in more than $5.7 million in revenues over the previous 12 months, leaving it with a 47 percent gross profit margin. Desert’s Finest’s location, strategically close to the annual Coachella Music Festival, has also shown to be a boon to sales of a wide assortment of flower, vape and edibles products.
Nabis expects that its portfolio of investments at a proper pricing point supports revenue forecasts of C$14.8 million this year followed by a leap to C$167.9 million next year as the company’s assets begin reaping the benefits of cultivation and harvest work. Most of those are due to expectations for strategically located assets in Michigan, where the company is building a pipeline of one cultivation facility, one processing facility and seven dispensaries.
Nabis expects the sales to translate into EBITDA of C$4.1 million in 2019 and C$67.5 million in 2020 (http://cnw.fm/18gaR) as it builds a vertically integrated portfolio across the United States and expands into international markets.
The company’s investments include a cannabis cultivation facility, a greenhouse and a dispensary in Arizona, as well as a growing processing facility operation in Washington. In Israel, Nabis recently announced its 49 percent interest in sublingual cannabis strip maker Cannova Medical Ltd., with an option to purchase the remaining 51 percent at the company’s discretion.
Nabis also is examining multiple “off market” opportunities in Massachusetts, Nevada, Ohio, Oklahoma, Oregon and the European Union.
For more information, visit the company’s website at www.NabisHoldings.com
NOTE TO INVESTORS: The latest news and updates relating to NABIF are available in the company’s newsroom at http://cnw.fm/NABIF
About CannabisNewsWire
CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
To receive SMS text alerts from CannabisNewsWire, text “CANNABIS” to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.cannabisnewswire.com
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer
Do you have a questions or are you interested in working with CNW? Ask our Editor
CannabisNewsWire (CNW)
Denver, Colorado
www.cannabisnewswire.com
303.498.7722 Office
Editor@CannabisNewsWire.com
