Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF) has inked a definitive agreement to provide Diem, a licensed cannabis operator in Oregon, with the financing of up to US$12.5mln over the next three years.
Diem was founded by executives with Silicon Valley and Wall Street experience and has cultivation, retail and home delivery operations in Salem and Portland.
"We spent an incredible amount of time and effort in our diligence as we do for all of our deals and are more impressed than ever with the calibre of operators that we are backing," Paul Rosen, Tidal Royalty's CEO and chairman, told investors.
"Diem has large-scale ambitions and continues to build out the capabilities to realize them. We expect that they will be a major player in the U.S. cannabis industry."
The funds will be used to develop and operate a large-scale cultivation and processing facility and up to four dispensaries in Massachusetts.
The Massachusetts adult-use marijuana market has the potential to be one of the most prosperous in the nation, according to Marijuana Business Daily, Tidal Royalty noted.
Diem is already exploring opportunities in the state. After building its development team it has already secured a number of locations in anticipation of applying for operating licences.
It also plans further expansion in additional states, and the parties are exploring opportunities to work together on such plans.
Tidal Royalty has struck deals now with operators licensed in Florida and Arizona and has entered into letters of intent with licensed cannabis operators in California, Nevada, and Illinois.
In addition, Tidal Royalty is in the process of evaluating multiple additional opportunities across the US, including in New York, Ohio, Pennsylvania, Texas and Michigan.
The group provides capital to help grow licensed US cannabis firms in exchange for receiving a percentage of future top-line revenues.
Tidal Royalty is interested in cultivators, processors and manufacturers that can deliver above-market returns.