Alchemist Inc (CSE:AMS) continues to bolster its portfolio and announced a deal Wednesday to acquire a 15% interest in San Francisco Bay area home delivery service, Lady Chatterley Health. Alchemist will also invest a minimum of US$800,000 in exchange for a further 49% of the company.
Lady Chatterly is a cannabis delivery service in the San Francisco Bay area, which features California Craft Cannabis flower, pre-rolls, vape pens and cartridges, edibles and spa products.
"We are very excited with the opportunity of partnering with the team at Lady Chatterley. Their customer demographic, current delivery footprint, and above all their high-quality products and user experience, solidly positions our ability to grow the delivery service statewide," said Alchemist CEO Paul Mann.
Lady Chatterley is licensed by the State of California and City of San Francisco. According to Alchemist, its average order is US$148, with more than 1,500 customers.
"Lady Chatterley is one of the top-ranked Type 9 license operators in California due to its successful track record under the California medical marijuana regulations since its inception in 2015," said the company in a release.
According to the company, the purchase price will be US$210,000, which will be paid in Alchemist common shares.
Further, Alchemist will invest a minimum of US$800,000 in exchange for a further 49% of the company. Further milestones and details will be set out in the definitive agreement.
"Since 2015 we have worked diligently to connect our customers to unique products and producers through the individual stories of these artisans," said Lady Chatterley CEO, Stephen Kerford. "This relationship with AMS will allow us to grow our offering, increase revenue from existing clients, and expand our offering statewide and eventually nationally throughout the USA."
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