General Cannabis Corp. has agreed to purchase The Organic Seed LLC, a southern Colorado marijuana company that includes Cannasseur dispensary, a greenhouse cultivation and an infused-product facility in Pueblo West. The deal doesn’t involve any cash; Organic Seed’s owners will receive stock in General Cannabis, a public, Denver-based company.
According to the April 9 announcement, General Cannabis will acquire Cannasseur for $2.35 million of General Cannabis common equity, priced at the time of closing, subject to a floor of $0.45 per share and a ceiling of $0.55 per share.
Cannasseur previously owned a medical dispensary in Colorado Springs, but that was acquired by Nuvue Pharma by 2019. Open in 2015, Cannasseur is a recreational-only dispensary with an estimated annual revenue of $4 million, according to General Cannabis CEO Steve Gutterman. The supply grow for Cannasseur, a 12,000-square-foot light-deprivation greenhouse, will also go to General Cannabis, as will the marijuana extraction facility that produces Dabtek concentrates.
“The acquisition of Cannasseur is integral to our growth strategy of acquiring and operating cultivation, manufacturing and retail assets,” Gutterman says in a statement announcing the deal. “Further, it enables us to provide products and services to customers who depend on cannabis-based products for medicinal support.”
General Cannabis also owns Next Big Crop, a marijuana construction management and consulting firm, and is interested in expanding. “We will continue to look for similar opportunities that meet our acquisition criteria,” Gutterman says.