GSRX Industries will acquire retail cannabis dispensary The Coughy Shop. Credit: Dominic Milton Trott.

Online retailer GSRX Industries has entered a binding letter of intent (LOI) to purchase US-based licensed retail cannabis dispensary The Coughy Shop.

The deal covers The Coughy Shop assets such as licences and permits related to medical and adult-use cannabis sales, as well as leases, equipment and inventory.

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It also allows GSRX to take assignment of a conditional use permit (CUP) and cultivation and kitchen-manufacturing activities.

“We remain confident in our ability to expand our retail brand-focused model and to build sustainable, long-term shareholder value.”

GSRX Industries’ CEO Les Ball said: “Signing this LOI is another key strategic step forward for GSRX, as we continue to execute on our plan to expand our retail brand-focused model throughout the largest growth markets and markets that provide an opportunity for longevity.

“California clearly represents the largest market opportunity in the US, and we remain confident in our ability to expand our retail brand-focused model and to build sustainable, long-term shareholder value in locations that make sense.”

The transaction is currently subject to closing conditions, including satisfactory completion of due diligence, entry into definitive agreements and the receipt of the requisite approval by the City of Desert Hot Springs and State Bureau of Cannabis Control.

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The company has commenced due diligence and expects to complete the transaction before the end of Q4 2018.

Through its subsidiaries, GSRX acquires, develops and operates retail cannabis dispensaries in California and Puerto Rico. It has purchased five pre-qualified locations in Puerto Rico, which will open later this year.