Body and Mind Inc. Announces Sale of Illinois Assets and Provides Corporate Update

Core Insights - Body and Mind Inc. has entered into definitive agreements to sell its Illinois assets to Rubino Ventures IL, LLC for a total cash consideration of US$5 million, subject to regulatory approval [1][4][2] - The sale is aimed at improving the company's balance sheet and providing capital for its New Jersey dispensary construction [2][8] Transaction Details - The transaction involves the sale of two subsidiaries: NMG IL 1, LLC and NMG IL 4, LLC, with cash payments structured in two installments [1][4] - The initial cash consideration for NMG IL 1 is US$1,666,666 and for NMG IL 4 is US$833,334, with additional earnouts based on EBITDA performance [5][6][11] - Each subsidiary will enter into managed services agreements (MSAs) with Rubino, which require approval from the Illinois cannabis regulator [4][6] Market Context - The cannabis industry is currently facing challenges, making it difficult for smaller companies like Body and Mind Inc. to secure growth capital [2] - The decision to sell the Illinois assets is seen as a strategic move to partner with an established operator in the market, potentially enhancing value for the company [2][3]