BODY AND MIND INC. EXPANDS BRANDS AND MANUFACTURING TO CALIFORNIA
“The opportunity to move into a fully licensed facility and leverage our expertise and award-winning formulations will rapidly create revenue…”
Body and Mind Inc. has expanded manufacturing into California through BaM’s California subsidiary, NMG Cathedral City, LLC (“NMG”).
NMG has entered a management and administrative services agreement with Satellites Dip, LLC, (“SD”), a licensed cannabis business conducting commercial cannabis activity within the state of California. NMG will manage day to day operations of the custom built 7,800 square foot manufacturing facility in Cathedral City, California. The facility was custom designed for large volume cannabis manufacturing and has been producing wholesale concentrates since construction completion in 2017.
“This is a tremendous milestone for Body and Mind as we expand our marquis lifestyle brands into the key California market. The opportunity to move into a fully licensed facility and leverage our expertise and award-winning formulations will rapidly create revenue without significant construction capital expense or license delay,” stated Robert Hasman, President of Nevada Medical Group and a director of BaM. “This expansion will dramatically increase the output and efficiency of our popular brands. We have considered numerous opportunities in California and the team at Satellites Dip are aligned with our culture of quality and are excited to expand operations and revenues. NMG has ordered additional top-quality extraction equipment and is working with software vendors for efficiency solutions.”
Azadeh Dast, President of Satellites Dip LLC commented, “We are in a highly regulated, competitive and fast changing industry. Companies with deep understanding of the cannabis industry focus on product consistency, quality of services and agility, and are there to stay. That is why we chose Body and Mind to manage our business operations and take us to the next level.”
The Cathedral City facility contains state of the art distillation equipment including ethanol and BHO processes and is expected to provide Body and Mind speed to market for popular products including oils, shatter, wax, live badder and ambrosia. Additionally, the facility is anticipated to commence producing Body and Mind edibles including Pretzel Bites and Gummies
The Cathedral City manufacturing facility is licensed by the state of California and has received renewal on all annual licenses.
The one year Management Agreement, with a one year renewal term, commenced on June 6, 2019 and encompases the following:
- Management Fee
- NMG will be paid a management fee of 30 % of Net Profits or Ten Thousand Dollars (US$10,000) per month, whichever is greater.
- Brand Licensing
- NMG shall work to broker commercial arrangements between SD and third-party cannabis brand owners whereby SD licenses commercial cannabis brands from third parties in connection with SD’s commercial cannabis activity in exchange for a license fee.
- Specifically, within thirty (30) days of the effective date of the Management Agreement, NMG shall broker a commercial arrangement between its affiliate company, Nevada Medical Group, LLC and SD whereby SD licenses the trademarks and other intellectual property to be used in connection with SD’s manufacturing of cannabis products bearing such licensed trademarks (the “Branded Products”) on terms as favorable as the most favored licensee.
- Equipment and Capital
- NMG shall furnish all equipment and machinery necessary for SD’s manufacturing of the Branded Products. Any equipment provided by NMG to SD shall be owned by NMG in its entirety and, subject to SD’s approval of the terms, leased to SD pursuant to an Equipment Lease Agreement entered into between NMG and SD, dated June 6, 2019.
- The Parties have entered into a certain secured loan agreement dated June 6, 2019 whereby NMG has loaned SD Two Hundred and Fifty Thousand Dollars (US$250,000) (the “Loan”) to be used solely in connection with SD’s commercial cannabis activity. The Loan shall be due and payable on June 6, 2020 (the “Maturity Date”) and shall bear interest at a rate of 12% per annum which shall be accrued, compounded quarterly and payable on the Maturity Date. The Maturity Date may be extended upon mutual agreement of the parties. The Loan will be secured by a sercurity interest in and to all of SD’s assets.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Body and Mind Inc.
BaM is a publicly traded multi-state operator investing in high quality medical and recreational cannabis cultivation, manufacturing and retail. Our wholly-owned Nevada subsidiary was awarded one of the first medical marijuana cultivation licences and holds cultivation and manufacturing licenses. BaM products include dried flower, edibles, oils and extracts as well as GPEN Gio cartridges and Lucid Mood offerings. BaM cannabis strains have won numerous awards including the 2019 Las Vegas Weekly Bud Bracket, Las Vegas Hempfest Cup 2016, High Times Top Ten, the NorCal Secret Cup and the Emerald Cup.
BaM continues to expand operations in Nevada, Arkansas, Ohio and California and is dedicated to increasing shareholder value by focusing time and resources on improving operational efficiencies, facility expansions, state licensing opportunities as well as mergers and acquisitions.
We seek Safe Harbor.