Los Angeles-based Ventura said Thursday that the Bureau of Cannabis Control approved the acquisition, part of Ventura’s strategy to build a network of California dispensaries.
Kush Rush will serve as a template for Ventura’s California dispensaries under contract or application, the company said in a statement.
READ: Ventura Cannabis shares path to C$10 million revenue target, posts first financials as cannabis company
The new dispensary is expected to generate C$500,000 in annual revenue during the first full year under operation.
Under the terms of the acquisition, Ventura will pay C$210,000 in cash and issue 1.2 million shares to the owner-operator of Kush Rush in a deal worth close to C$640,000 in total.
Ventura Cannabis has binding agreements to purchase five dispensaries in California as well as to acquire a vertically integrated cannabis product company in the state.
The cannabis company's strategy is to focus solely on the massive California market, where it plans to establish a network of dispensaries with owner-operators.
Shares of Ventura were trading at C$0.31 on Thursday morning.
Contact Angela at email@example.com
Follow her on Twitter @AHarmantas