BaM divests from Nevada, shifts focus toward Illinois and New Jersey

The firm wants to reallocate resources toward more profitable projects.

Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) posted business updates on the progress of its dispensary construction projects and the sale of its cultivation and processing operations in Nevada.

The company reported that its dispensary projects in Illinois and New Jersey are moving forward, with plans to open these facilities in the first half of 2024. The initiative is part of BaM’s focus on expanding its retail presence in markets where it expects higher returns.

“We are excited to be moving efficiently on our Illinois and New Jersey dispensary construction projects and look forward to having these operations open in the first half of 2024,” CEO Michael Mills said in a statement.

“As we continue to focus on prioritizing our new operations in the Illinois and New Jersey markets, we have executed definitive documents to divest our Nevada cultivation and processing assets to a third party. This is a continuation of our strategy of prioritizing our operational focus on what we believe are our highest returning projects.”

Operators in Illinois, especially emerging markets such as New Jersey, have seen beefier margins due to elevated recreational marijuana prices.

BaM divested its Nevada cultivation and processing assets to Vegas Brazil LLC for a total of $2 million. The transaction involves a cash payment and a promissory note, with regulatory approval from the Nevada Cannabis Compliance Board pending. The decision to sell the assets aligns with BaM’s strategy to reallocate resources toward more profitable projects.

“We are excited to focus our attention on a smaller subset of opportunities and continue to look for new opportunities that map to our more disciplined growth plans,” said CEOO Trip Hoffman.

In New Jersey, the company’s Lawrenceville Township dispensary construction is underway, with the site being prepared for high-volume sales operations. The dispensary’s design emphasizes retail efficiency and accessibility, it said.

In Illinois, the construction of a dispensary in Lynwood is nearing completion, with the firm highlighting the potential for strong performance due to its location.

Additionally, BaM plans to issue shares to Bengal Impact Partners, LLC as partial compensation for advisory services under a strategic advisory agreement.

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