DXBRF - BellRock To Buy Michigan's JRMI27
BellRock Brands Inc. (CSE: BRCK.U) announced that one of its U.S. subsidiaries is going to purchase Jackson, Michigan-based JRMI27 , LLC, a medical and adult use marijuana product manufacturer. BellRock’s flagship brands, Dixie Brands and Mary’s Medicinals already have products in Michigan under a licensing agreement with JRMI27 , but the acquisition of the license by the subsidiary of the company, if approved, will offer BellRock a lasting presence in the Michigan market. The company did not disclose the price paid for the company. BellRock has also not published financial information on the company since October 2021.
“The agreement to acquire JRMI27 is a product of BellRock’s focused efforts to build and ultimately control the company’s brands and growth initiatives in both the country’s emerging and most established markets,” said Brian Jansen , CEO of BellRock. “This is yet another step by BellRock towards its goal of being a national industry leader and the premier cannabis house of brands.”
Board Departures
In addition to the acquisition announcement, BellRock also reported that the Chairman of the Board of Directors, Andrew Schweibold , and Director, Jonathan Rosenthal were resigning in good standing with the company from their respective roles on the Board, effective immediately. Schweibold and Rosenthal have been members of the board since BR Brands, LLC completed its reverse takeover of Dixie Brands Inc. in October of 2020, with Schweibold serving as the company’s Board Chairman during that same time.
“Alongside current restructuring efforts at the business, I believe it is an appropriate time for me to step aside as Chairman to allow the future leaders of the Company to drive BellRock forward,” said Andrew Schweibold . “Rose Capital recently introduced West 4th Holdings to lead the Company through its next evolution and, in short order, they have driven material changes in improving the Company’s profitability, operations, and capital structure. I leave the BellRock Board knowing that the Company is in the very capable hands of West 4th and I continue to believe in the strength of the BellRock platform and its future as a leading cannabis CPG company.” Schweibold added, “I would like to thank the BellRock Board and management for all of our collective work together to overcome a myriad of challenges during particularly challenging times. While I am resigning from the Board, Rose and myself will continue to support BellRock and I look forward to the Company’s next chapter.”
West 4 th Holdings co-founder, Zachary L. Venegas , said, “Rose Capital’s prescient vision of a national CPG platform built upon leading brands led to a brand platform unique in its size and scope, and it continues to evolve and advance. West 4 th is focused on supporting its pioneering work by focusing on critical company performance and governance. Venegas added, “the Company would like to thank Rose for all their efforts and support over the years in building BellRock alongside of management.”
The company said it will seek to fill the vacant director positions in a timely manner.
Missouri Bound
In August, BellRock decided to leave the Florida market to focus on its Midwest presence. As part of that move, the company entered into a licensing agreement with Motacann Holdings, to bring its Dixie and Mary’s Medicinals brands to Missouri . Execution of the agreement coincided with Motacann’s proposed sale of its infused product manufacturing license to BRB Missouri, LLC, a BellRock strategic partner, subject to Missouri Department of Health and Senior Services approval. BellRock said that the sale of the license will offer the company a lasting presence in the Show-Me State. The company’s brands are expected on shelves by the end of summer 2022.
“ Missouri is an attractive new market and we anticipate BellRock will benefit from an early mover advantage,” said Brian Jansen , CEO of BellRock Brands. “With Missouri and our recently announced Ohio partnership, we continue to build our presence in the US cannabis markets. Our goal has always been to build a national cannabis house of brands that is seen as an industry powerhouse and expanding into Missouri helps bring this to fruition.”
BellRock has also announced two new products to its Dixie gummy line: SYNERGY Berry Focused and SYNERGY Sleepberry.