Retail cannabis company Body and Mind Inc. recently announced that it has made some acquisitions to promote its expansion into the New Jersey market.
According to a press release, Body and Mind Inc. closed a convertible debenture financing for gross proceeds of $3.0 million with funds associated with a strategic investor, Bengal Impact Partners, LLC, who specializes in managing private funds which invest in companies operating in the cannabis industry. The company also acquired CraftedPlants NJ, Inc., which leases a New Jersey retail location with local cannabis-use approval, and is working on attaining final state licensure in New Jersey. A new board member, Josh Rosen, managing partner of Bengal Capital, has been hired onto the board, bearing any regulatory or exchange requirements.
"We are thrilled to have the team at Bengal Capital transition from being a supportive shareholder to a strategic partner," Body and Mind CEO Michael Mills said, according to the press release. "Through our acquisition of CraftedPlants NJ, we are on a path to establishing a presence in New Jersey with another great location and opportunity for growth. I look forward to Bengal Capital partner Josh Rosen joining our board and the support of the entire Bengal team, and also want to thank Aaron Edelheit of Mindset Capital for his support and engagement."
The terms of the merger agreement dated Dec. 21, were for the delivery of $50,000 and $120,000, will be disbursed to the sellers upon the funding of the project buildout and issued an aggregate of 16,666,667 shares of its common stock at a deemed price of $0.08 per share. Shares will be held in escrow and released once certain milestones have been reached; however, the sellers will still maintain the voting and participation rights.