Movers and SHAKERS
Item 9 Labs (INLB)
Begins Capital Raise; Closes on First Dispensary Acquisition
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space by 650,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Capital Raise. Yesterday, Item 9 Labs announced the launch of its global, streamlined Regulation A, Tier 2 public offering for unaccredited and accredited investors. The Company is offering 28 million units, each comprised of one share and one-half of one warrant. Upon the exercise of all warrants, the offering has maximum proceeds of $67.2 million. The offering price is $1.40 per unit and the exercise price is $2.00 per warrant share.
To Fuel Growth. The net proceeds of the offering will be used to fuel growth. Proceeds will be used to fund the Company's retail dispensary acquisition strategy, for the potential acquisition of additional cultivation properties, and for working capital purposes. Assuming funds are raised, we believe this would be a net positive for Item 9 Labs as the additional capital would enable an acceleration ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.