Body and Mind Inc. Divests Michigan Dispensary, Shifts Focus to Illinois and New Jersey Cannabis Markets

LOS ANGELES– Body and Mind Inc has successfully obtained all required regulatory approvals to divest its Muskegon, Michigan, dispensary, the company announced on Friday.

The transaction, originally outlined in a stock purchase agreement on April 14, reached its completion on June 13. DEP Nevada Inc., a wholly owned subsidiary of Body and Mind, sold all of its issued and outstanding common stock of NMG MI 1 Inc. to Big Bhang Events LLC.

The deal was finalized once all conditions were met or waived, and the cannabis regulatory authorities in the state of Michigan granted their approval, thereby transferring sole ownership of NMG MI to Big Bhang.

In exchange for the shares, Big Bhang made a cash payment of $1 to DEP Nevada Inc. The size of the Michigan dispensary sale did not necessitate the inclusion of special (pro forma) financial statements in Body and Mind’s official filings, as per rules and regulations that mandate such statements for sales exceeding 20% of the company’s value.

This divestment marks a strategic move for Body and Mind, commonly referred to as “BaM,” as it aligns with the company’s concentration on key markets such as Illinois and New Jersey. Known for its cultivation, production, and retail assets, BaM has primarily focused on limited license markets in its operational endeavors.

By streamlining its portfolio and reallocating resources to markets with significant growth potential, Body and Mind aims to enhance its overall performance and capitalize on the promising opportunities presented by the burgeoning cannabis sectors in Illinois and New Jersey.

As the company strategically refines its business strategy and focuses on expanding its presence in lucrative markets, industry observers will closely monitor BaM’s future endeavors and assess the impact of this divestment on its long-term growth trajectory.