Benzinga | Sep 20, 2021 11:03AM EDT

Eden Empire Announces JV For Its Davie Street Location, Sells 50% Interest For $1.05M

Cannabis retailer Eden Empire Inc. (CSE:EDEN) said Monday that it is selling a 50% interest in its proposed Davie Street location in Vancouver for CA$1.05 million in cash.

Under the share purchase agreement with a private arm's length third party, Eden will continue to operate the Davie Street retail location via a joint venture vehicle with the buyer, which remained undisclosed.

Situated on the 1600 Block of Davie Street of Vancouver's West End, the new store is just steps from English Bay Beach, Vancouver Seawall, which hosts the annual Celebration of Lights.

The closing of the deal is subject to customary closing conditions.

Gerry Trapasso, the company's director and CEO, is thrilled Eden is venturing into a JV for another shop in Canada.

"The partnership will be one of growth, and both parties are excited about this location in the heart of the West End," Trapasso disclosed. "This location is a two-floor giant that will allow for massive branding exposure and become a destination for locals, cannabis cannoisseurs and tourists looking to experience the best that Vancouver has to offer in the cannabis market. This partnership will allow the company to project powerfully in Vancouver and prepare for the imminent expansion in the State of Michigan."

Eden opened its first Canadian cannabis store in Winnipeg, Manitoba in February. Last month, the company debuted in Vancouver, British Columbia, ahead of tapping Philip van den Berg, who has over 35 years of investment banking experience at Deutsche Morgan Grenfell and Olympus Capital Management, to serve on its board of directors.

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