ManifestSeven Enters into Agreement to Sell its Santa Ana Dispensary to Eaze

Rhea-AI Summary

ManifestSeven Holdings Corporation has signed definitive agreements with Eaze Technologies to sell its Santa Ana, California retail dispensary and delivery hub for US$6,785,000. This transaction marks M7's strategic pivot towards focusing on commercial cannabis distribution. CEO Sturges Karban emphasized the move aims to strengthen M7's balance sheet and support sustainable growth. The sale will provide working capital and involves the assumption of certain liabilities. The transaction is pending regulatory approvals and is expected to close later this year.

Positive

• The sale of the Santa Ana dispensary for US$6,785,000 enables ManifestSeven to focus on its core distribution operations.
• The transaction is expected to strengthen the company's balance sheet and provide working capital.

Negative

• None.

The proposed sale is the first step of its strategic pivot toward distribution-focused operations

IRVINE, Calif., Nov. 9, 2021 /PRNewswire/ -- ManifestSeven Holdings Corporation (CSE: MSVN; OTCMKTS: MNFSF) ("M7" or the "Company") today announced that it has signed definitive agreements with Stachs LLC, a wholly-owned subsidiary of Eaze Technologies, Inc. ("Eaze"), to sell its retail dispensary and delivery hub located in Santa Ana, California, for US$6,785,000, plus working capital and the assumption of certain liabilities (the "Transaction").

The Transaction marks commencement of the initial phase of M7's strategic pivot towards an enterprise focused primarily on commercial cannabis distribution operations. Upon completion, the Transaction will be the first step in the Company's efforts to monetize its current California retail storefront and delivery depot footprint, as well as any non-core assets and operations, to de-lever the Company's balance sheet and refocus the enterprise on its distribution operations, where it expects to see the most significant growth in the coming quarters.

"In a market that evolves as rapidly as the regulated cannabis industry, strategic focus and domain expertise has become more important than ever," said Sturges Karban, the Company's Chief Executive Officer. "We have learned a great deal from operating our retail businesses over the years, but we believe that dedicating the Company's resources to the singular mission of expanding our core distribution footprint across California and beyond—beginning with this important transaction—will help M7 to strengthen its balance sheet in the near-term while positioning for sustainable growth over the long-term."

"Eaze's exponential growth is the result of our unwavering focus on our two-million strong customer base, curating the best selection of products and deals, and aggressively expanding vertical operations in California, Michigan, Colorado, and Florida," said Rogelio Choy, Eaze's Chief Executive Officer, "Weden will become Eaze's second retail storefront in California after the recent acquisition and rebranding of Apothekare in San Diego. Eaze continues to build out our omni-channel experience as we seek to meet customers where they choose to purchase cannabis, whether it be via delivery or in-store."

As the nation's largest cannabis MSO delivery operation and biggest California-headquartered MSO, Eaze is a vertically-integrated company with over 7.6 million deliveries completed to-date and over two million registered customers. Eaze carries over 100 brands and 600 individual products on its menu, and is a nationally-recognized leader in promoting social equity licensees, who have sold nearly $7.7 million in products via the Eaze platform. In July, Eaze launched the first-of-its-kind shoppable cannabis app for Apple.

Completion of the Transaction remains subject to regulatory approvals and is expected to close later this year.

About Eaze

Eaze delivers good with the goods. As the nation's largest cannabis delivery marketplace, we bring enjoyment and convenience to our customers, break down barriers to access, and cultivate community in everything we do. With nearly eight million cannabis deliveries to date, we are committed to creating a more diverse and sustainable industry through our Momentum business accelerator and Social Equity Partners Program. www.eaze.com.

About ManifestSeven Holdings Corporation

ManifestSeven Holdings Corporation (CSE: MSVN; OTCMKTS: MNFSF) ("M7" or the "Company") disrupts the California cannabis landscape by seamlessly integrating proprietary distribution, retail, and delivery operations into a unified statewide platform that supports compliant and efficient commerce, both for cannabis enterprises and consumers. M7 offers local on-demand delivery and a storefront dispensary through its direct-to-consumer division, Weden. Through its business-to-business division, Highlanders Distribution, the Company provides a comprehensive suite of commercial and compliant services to licensed cannabis cultivators, manufacturers, distributors, and retailers operating throughout California. M7's 1-800-CANNABIS portal ties the Company's integrated operations together with a centralized gateway through which businesses and consumers can access M7's comprehensive suite of products and solutions. M7 is a publicly listed company on the Canadian Securities Exchange ("CSE") trading under the ticker symbol "MSVN". Additional information is available under the Company's SEDAR profile at www.sedar.com.

For the latest news, activities, and media coverage, please visit www.manifest7.com. To receive Company updates and be added to the email distribution list, please sign up here.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS:

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs and assumptions regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. This forward-looking information is based on certain assumptions made by management and other factors used by management in developing such information. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include, regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in its entirety by this notice.

The Company's securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws. Accordingly, the Company's securities may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of any offer to buy any Company's securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE ManifestSeven

FAQ

What is the significance of the sale of the Santa Ana dispensary for MNFSF?

The sale, valued at US$6,785,000, signifies ManifestSeven's shift towards a strategic focus on commercial cannabis distribution.

When is the sale of the Santa Ana dispensary expected to be completed?

The sale is subject to regulatory approvals and is expected to close later this year.

How will the sale impact ManifestSeven's future operations?

The sale allows ManifestSeven to refocus its resources on distribution operations, which are anticipated to drive significant growth.

Who is acquiring the Santa Ana dispensary from MNFSF?

The dispensary is being acquired by Eaze Technologies, Inc., a major player in the cannabis delivery market.

What are the financial terms of the MNFSF dispensary sale?

The financial terms include a sale price of US$6,785,000, plus working capital and the assumption of certain liabilities.