Ethos Cannabis, a Pennsylvania-based multi-state cannabis operator, said it has agreed to acquire the rights to seven medical marijuana dispensaries in Maryland and Pennsylvania from 4Front Ventures Corp. Terms of the deal were not disclosed.
Under the agreements, Ethos is acquiring the rights to one operational dispensary in Allentown, Pennsylvania, and four operational dispensaries in Catonsville, Glenmont, Hampden and Rockville, Maryland.
These five 4Front Ventures’ dispensary locations in Pennsylvania and Maryland currently operate under the Mission brand.
The dispensary license in Pennsylvania gives Ethos the option to open two more dispensary locations in the state, bringing the total number of dispensaries it has acquired to seven. All the stores will be rebranded from the Mission brand to Ethos Cannabis.
Ethos will initially operate the Maryland dispensaries through management arrangements and acquire full ownership after the expiry of certain regulatory hold periods.
The acquisition enables Ethos to move one step closer towards its goal of developing a strong presence in the Mid-Atlantic, East Coast and Midwest cannabis markets. Ethos recently closed a capital raising of $35.25 million.
Phoenix, Arizona-based 4Front said last Friday that the sale of its stake in cannabis retail licenses in Pennsylvania and Maryland netted it more than $18 million.
However, the company did not disclose the buyer of its retail licenses at that time.
4Front noted that the sale of its non-core assets will enable it to focus on optimizing vertical operations in core markets such as Massachusetts, Illinois, Michigan and California.
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