Item 9 Labs Corporation (OTCQX: INLB) stock jumped a whopping 14.41% to close the previous session at $3.8900.
INLB stock performance over the past week was 11.14%, versus its quarterly performance of 78.44%, and over the last six months, the incline in performance of Item 9 Labs stock was recorded at 224.17%. Announcing the closing of an acquisition prompted INLB stock to rise on Tuesday.
What was the acquisition deal?
With large-scale cultivation facilities in the United States as well as dispensaries franchises, Item 9 Labs delivers premium products from their vertically integrated cannabis operations. With INLB, clients get more specialized products and a better user experience across a variety of cannabis categories. INLB also operates through a unique franchise model called Unity Rd. Dispensary.
Yesterday, Item 9 Labs announced it had acquired the parent company of cannabis dispensary Unity Rd, ONE Cannabis Group.
- A blend of these companies creates a firm offering premium products and distribution via an increasing network of dispensaries franchises.
- This resulted in cost savings, operational efficiencies, revenue growth, and various synergies and benefits.
- In exchange for all of OCG Inc.’s Common Stock, Item 9 Labs will issue 19,080,000 shares of INLB Common Stock.
- In the agreement and merger plan, deductions will be made for the deal based on the terms established in it.
- Approximately 25% of all issued and outstanding shares of Item 9 stock will be owned by OCG Inc.
- The merger will result in Item 9 Labs staying the parent while OCG Inc. becomes a wholly-owned subsidiary with Andrew Bowden staying as CEO.
How INLB will be benefitted?
A franchise model with a reduced Capex provides Item 9 Labs (INLB) and Unity Rd. with accelerated scale while keeping the dispensaries local. In addition to growing the Unity Rd. franchise network and introducing new products to states where it is expanding, INLB will be benefited from improved production and cultivation sites.