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Acreage to acquire Calif. cannabis dispensary license holder Kanna

Acreage Holdings Inc. agreed to buy California-based Kanna Inc. in a deal that would give the cannabis-focused investor its first dispensary operating license in California.

Under the transaction, valued at $11.5 million, Acreage will issue up to 460,000 subordinate voting shares at a deemed value of $25 apiece. The all-stock deal is set to close in the second quarter.

Kanna has a license to operate a cannabis dispensary in Oakland, Calif. The dispensary is expected to open at 2019 MacArthur Blvd. during the second quarter under Acreage's The Botanist brand.