Tidal Royalty Corp. and Diem Cannabis Complete Agreement for Massachusetts Expansion
Toronto, Ontario–(Newsfile Corp. – September 4, 2018) – Tidal Royalty Corp. (CSE: RLTY.U) (OTC Pink: TDRYF) (“Tidal Royalty”), a leading provider of royalty financing to licensed U.S. cannabis operators, is pleased to announce it has signed a definitive agreement with Diem Cannabis (“Diem”) to finance Diem’s expansion into Massachusetts.
Diem is an experienced licensed operator in the highly-competitive Oregon market. The company —founded by executives with Silicon Valley and Wall Street experience — has cultivation, retail and home delivery operations in Salem and Portland. Diem is known for its unique retail experiences that create safe, inviting environments for new and experienced consumers. Leafly — the largest cannabis website in the world — ranks Diem’s Salem retail location as one of the top dispensaries in Oregon, calling the store “downright beautiful” and “Instagram-worthy”.
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 caliber of operators that we are backing. 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.
Paul Rosen, Tidal Royalty’s CEO and Chairman
Pursuant to the agreement, Tidal Royalty will provide Diem up to US $12.5MM over the next three years 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.
We founded Diem upon a sincere belief in the beneficial properties of cannabis, both to individuals and to communities. With Tidal Royalty’s support, we are now able to expand our reach across the nation.
Chris Mitchem, Diem’s founder and CEO
The Tidal Royalty team has been incredibly responsive to helping us achieve our ambitions. They understand what cannabis entrepreneurs need, which isn’t surprising given the history of their executive team. The fact that we can get access to the expansion capital that we need to grow — but also get to maintain our equity and control — made the decision to work with Tidal Royalty very easy.
Diem is actively exploring opportunities in Massachusetts, having built out its development team in-state, and has already secured a number of locations in anticipation of applying for operating licenses. The company plans further expansion in additional states, and the parties are exploring opportunities to work together on such plans.
With the completion of this Agreement, Tidal Royalty has now consummated royalty transactions relating to operators licensed in Florida and Arizona, which operators intend to pursue licenses in Massachusetts, 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 U.S., including in New York, Ohio, Pennsylvania, Texas and Michigan. Tidal Royalty intends to provide further information on the opportunities it is evaluating when the respective parties reach an agreement and execute letters of intent.
About Tidal Royalty
Tidal Royalty provides royalty financing to the U.S. regulated cannabis industry. Led by an executive team with extensive industry experience in Canada and the U.S., Tidal Royalty provides operators with the funding they need to grow their business. Operators benefit from non-dilutive capital and investors get top-line access to a diversified portfolio of companies that will form the future of this transformative industry.
