Deep Roots Harvest Acquires The Source's Assets Amid Nevada Cannatourism Boom
Deal News | Nov 04, 2024 | EIN
Deep Roots Harvest has successfully closed a deal to acquire The Source's assets, a move marking significant consolidation within Nevada's cannabis market. This acquisition includes four dispensaries located in strategic areas such as Las Vegas and Henderson, a cultivation facility, and crucially, a license for a cannabis consumption lounge, aligning with Nevada's cannatourism strategy. This development positions Deep Roots as one of the largest cannabis operators in the state, with over 400 employees. Despite financial terms remaining undisclosed, the transaction underscores a trend of M&A activities seen across Nevada this year as businesses respond to shifting market dynamics following the end of pandemic spending. The Source had been under receivership since mid-2023, with Opus Consulting managing its operations until this acquisition. Alongside other significant deals, such as California distributor Nabis' entry and Body and Mind's exit from Nevada, this acquisition highlights a period of restructuring and strategic alignment in anticipation of future growth in the state's cannabis market.
Sectors
- Cannabis
- Mergers & Acquisitions
- Tourism
Geography
- United States - Nevada – The acquisition and the related business activities are centered in Nevada, with locations in Las Vegas, Henderson, and other cities within the state.
- United States - California – California companies like Nabis are mentioned in the context of M&A activities relevant to Nevada's market.
Industry
- Cannabis – The acquisition involves multiple cannabis dispensaries and cultivation facilities, which are central to the cannabis industry.
- Mergers & Acquisitions – The article focuses on Deep Roots' acquisition of The Source's assets, a key transaction in the M&A space.
- Tourism – The acquisition aligns with Nevada's growing cannatourism initiatives, highlighting the link between cannabis and tourism sectors.
Financials
- $3.5 million – Sale price for Deep Roots' Reno dispensary to Silver State Relief.
- $2 million – Market exit value for Body and Mind in Nevada.
- $70 million – Current monthly sales in Nevada's cannabis market.
- $95 million – Peak monthly sales in Nevada's cannabis market during the pandemic in April 2021.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Deep Roots Harvest | Acquiring Company | Company | A major cannabis operator in Nevada, expanding its market presence through acquisitions. |
| The Source | Target Company | Company | Previously under receivership, The Source's assets are being acquired by Deep Roots. |
| Opus Consulting | Receiver | Company | Managed The Source during its receivership process. |
| Nabis | Other Company | Company | California-based distributor that expanded into Nevada. |
| Body and Mind | Selling Company | Company | Exited the Nevada market to focus on eastern markets. |
| Silver State Relief | Acquiring Company | Company | Acquired a dispensary from Deep Roots. |
| Jon Marshall | CEO | Person | CEO of Deep Roots Harvest overseeing the acquisition. |