Vertically integrated cannabis dispensary franchisor and operator, Item 9 Labs Corp (OTCMKTS:INLB), engaged in producing premium, award-winning products on March 17, 2022, announced signing an Asset Purchase Agreement with The Herbal Cure, a medicinal and recreational dispensary in Denver, Colorado.
Trading Data
On Thursday, INLB stock moved down 1% to $1.09 with more than 3.8k shares, compared to its average volume of 12/k shares. The stock moved within a range of $1.0900 – 1.1400 after opening trade at $1.14.
Item 9 Labs Corp. to Acquire The Herbal Cure in Denver, Colorado
Founded in 2010, The Herbal Cure generated revenues of $5.4 million in 2021. Located in the central neighborhood of Washington Park in Denver, the medicinal and recreational dispensary will be the firm’s future flagship location. Item 9 Labs Corp is looking at the dispensary to transition to cannabis dispensary franchise brand, Unity Rd., in six months of acquisition. Presently, it is awaiting regulatory approval by the Marijuana Enforcement Division of Colorado.
The acquisition includes a 5,000 square-foot facility, having 3,500 square feet of space for on-site cultivation and operations. Item 9 Labs Corp can expand the sales floor with extra room for point-of-sale terminals. The cultivation side includes APA, comprising a 3,000 square-foot medicinal and recreational cultivation.
The company’s Vice President of Mergers and Acquisitions, Mark Busch said the herbal cure dispensary located in South Denver, the firm is anticipating accelerated brand penetration in the market. Bush added that it can be attributed to heightened exposure amongst daily commuters, especially in summers. He added that the flagship location is much value-add for Unity Rd. brand as it develops the Colorado market. Bush added that it is a premier avenue for a plan to bring Item 9 Labs products to the state.
Key Quote
“The Herbal Cure acquisition represents an accretive opportunity for the Company and is well-positioned with our national retail and product expansion strategy,” said the Company’s Chief Strategy Officer, Jeffrey Rassas.
Technical Data
INLB stock is trading below the 20-Day and 50-Day Moving averages of $1.10 and $1.10 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.74.
