SANTA BARBARA, Calif., June 12, 2019 /PRNewswire/ -- Canndescent, California's #1-selling, top shelf cannabis flower, announced today that it has signed definitive acquisitions agreements to acquire buildings and operating licenses in three new markets —Nevada, Michigan and Massachusetts. This makes Canndescent the first California operator and brand to start acquiring assets in other markets and move West to East.
Launched in 2016, Canndescent battle-tested and refined its brand and operations in California, the most competitive cannabis market on the planet having over 7,000 cultivation licenses and only 530 legal retail outlets. Winning in California, the company will now enter less competitive markets that offer superior price dynamics and lower baseline levels of product quality.
"Our expansion is a huge win for cannabis consumers as the best of California cannabis will finally be available in other markets," said Adrian Sedlin, Canndescent's CEO. "We're sort of the 'anti-MSO' or as I like to call it, we're an MSBO, Multi-State Brand Operator, having nailed brand and execution first and now rolling up assets with intentionality and understanding."
Canndescent is acquiring the licenses and buildings in NV, MI, and MA and will retrofit them so they are purpose-built to support Canndescent's proprietary cultivation and extraction methods. Collectively, the new assets will add 135,000 square feet of capacity to the company and an estimated $75 million of recurring revenue. The company is acquiring the assets for a total of $25.8million and will recapture the acquisition and construction costs through sale-leasebacks. In total, Canndescent plans to enter eight to 12 U.S. markets by the end of 2020.
Canndescent empowers adults to turn down the noise, unlock the moment and transform their lives with ultra-premium cannabis products. In 2015, Canndescent became the first cannabis cultivator in the world to abandon traditional strain names and pioneer effects-based cannabis, selling its flowers under the names, Calm, Cruise, Create, Connect and Charge. In 2016, the company opened the first municipally permitted facility in California; in 2017, Canndescent became California's #1-selling flower brand, and in 2018, the company became the state's #1-selling brand of luxury flower products. Consumers can purchase select Canndescent products in California and Nevada, as well as online at www.canndescent.store.com. You can learn more about the company at www.canndescent.com.