Demand Brands Inc. (DMAN)

[Captainandy]

#DMAN:#VIRI: CANNABIS LICENCE FOR $12 MIL. ...



https://www.cannabiz.media/blog/value-marijuana-licenses




These are just some of the considerations analysts need to think about when valuing a marijuana license. But given recent news about Califonia’s Blum Oakland marijuana dispensary, a market- or income-based valuation calculation might not be good enough to accurately value marijuana licenses. Blum Oakland was acquired by Terra Tech earlier this year for 1.5 times forward-looking revenue for the 12 months following the closing of the merger. In simpler terms, the purchase price should be $12 million.







In most states, a marijuana license-holder can’t simply sell the license. By law, the license can only be transferred as part of a sale of the business entity that owns it. At most marijuana-related businesses, employees have to be licensed as well as the business entity, and owners and investors must also be licensed. State liquor boards typically have to approve purchasers before they can own an equity stake in a business that has a marijuana license. All of these obstacles make marijuana licenses even more valuable.