DionyMed Brands Inc. Announces Completion of its Acquisition of Direct-to-Consumer California Delivery Retailer, HomeTown Heart
DionyMed Brands Inc. (“DionyMed” or the “Company”) (CSE: DYME), a multi-state cannabis brand and distribution platform, today announced it has completed its previously announced acquisition of HomeTown Heart, expanding the Company’s direct-to-consumer delivery platform in California.
The purchase price of US$18 Million is comprised of approximately US$6 Million paid upon closing of the transaction and a performance based earn-out of up to US$12 Million, to be paid in a combination of cash and stock.
Edward Fields, CEO of DionyMed, commented, “We are extremely excited to have completed this strategic acquisition in conjunction with the recent news that California regulations are expected to expand direct-to-consumer delivery to all of California, the world’s largest cannabis market. HomeTown Heart’s non-retail storefront delivery dispensary complements our existing e-commerce platform, Chill, and increases our operational footprint. We look forward to entering 2019 with an expanded team that has the capabilities to drive our growing portfolio of premium cannabis brands throughout California.”
Jeff Morgen, CEO of HomeTown Heart, commented, “The acquisition of HomeTown Heart by DionyMed is well timed as California’s final draft regulations are expected to enable direct-to-consumer cannabis deliveries statewide. This is a significant milestone for the largest cannabis market in the world supporting consumers in the municipalities that have banned physical storefronts.”
HomeTown Heart, based in Oakland, California, is a “direct to consumer”, non-retail storefront delivery dispensary serving the San Francisco Bay Area. It has completed more than 800,000 online and mobile orders since its inception in 2015, and today completes over 1,500 deliveries daily in the Bay Area alone. HomeTown Heart will provide delivery fulfillment services for DionyMed’s “Chill” (calichill.com) direct-to-consumer e-commerce brand and other partners throughout the Bay Area.
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About DionyMed Brands Inc.
Founded in 2017, DionyMed is a multi-state cannabis brands and distribution platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets. DionyMed sells branded products in every category from flower to vape cartridges, concentrates and edibles. DionyMed serves more than 700 dispensaries and completes over 40,000 Direct-To-Consumer deliveries each month with its growing portfolio of products and brands. Learn more at www.DionyMed.com and follow @DYME_Inc on Twitter and LinkedIn.
Forward-Looking Information and Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved” and include, without limitation, statements related to the implementation or impact of certain regulations, the expansion of the Company’s online platforms, enhancing the Company’s distribution reach and product variety and changes to the Company’s revenue drivers.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions.
Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward- looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice.
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