A Canadian company has nailed down its plans to buy a Reno-based marijuana grower and processor for $7.5 million. A subsidiary of Toronto-based North Bud Farms Inc. plans to buy the assets of Nevada Botanical Science Inc., which has been largely focused on the medical cannabis market.
Nevada Botantical operates a 5,000-square-foot indoor cultivation facility and has been approved to expand its greenhouse space up to 60,000 square feet. The company also operates an extraction facility and a commercial kitchen.
Terms of the acquisition call for North Bud Farms to pay $500,000 in cash, approximately $1 million worth of North Bud stock and a note for $6 million. The companies had announced their plans in late June.
Nevada Botanical was founded by Bob Dalrymple, a physician in Sparks, his wife, Alise, and Robert Summers, a healthcare executive.
The company has been manufacturing and marketing pain-relief creams under the Trichomic brand, but it also has begun moving into consumer products as well.
Within the past year, it tested a line of cannabis-infused cocktails — including flavors such as piña colada and bloody mary — that it branded as “Happiest Hour.” It also completed trials of a one-ounce energy drink that combine caffeine and THC, the main psychoactive ingredient in marijuana.
Executives of North Bud Farms said both lines of drink products found strong acceptance among retailers.
Ryan Brown, the CEO of North Bud Farms, said his firm was eager to enter the Nevada market, which saw $580 million in sales of recreational marijuana in the first year after the business was made legal.
He said the company also is working to complete its acquisition of a marijuana grower in Salinas, Calif.