The Week In Cannabis: Arizona Adult-Use Sales, Big Financings, M&A, And A Nasdaq Debut

January 29, 2021 5:09 pm
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The Week In Cannabis: Arizona Adult-Use Sales, Big Financings, M&A, And A Nasdaq Debut

In one of the craziest weeks in the history of public markets, cannabis stocks and ETFs delivered mixed performances. Over the last five trading days:

  • The ETFMG Alternative Harvest ETF (NYSE:MJ): was down -2.66%
  • The AdvisorShares Pure Cannabis ETF (NYSE:YOLO): was down -1.87%
  • The Cannabis ETF (NYSE:THCX): dipped -1.76%
  • The Amplify Seymour Cannabis ETF (NYSE:CNBS): advanced +1.64%
  • The SPDR S&P 500 ETF Trust (NYSE:SPY) was down -2.07%

In other news, The Mint DispensaryColumbia Care Inc. (OTCQX:CCHWF), Curaleaf Holdings Inc. (OTCQX:CURLF), Harvest Health & Recreation Inc. (OTCQX:HRVSF) and Sol Flower started adult-use cannabis sales in Arizona.

Agrify Corp. (NASDAQ:AGFY) debuted on the Nasdaq Capital Market pricing its upsized initial public offering of some 5.4 million of its shares of common stock at $10 per share.

Benzinga Cannabis content is now available in Spanish on El Planteo.

Meanwhile, Michael Thompson — a Michigan man who had been sentenced to up to 90 years in prison for a nonviolent cannabis offense — was freed Thursday after Gov. Whitmer commuted his sentence.

The Horizons Psychedelic Stock Index ETF started trading on Toronto’s NEO exchange under the symbol ‘PSYK.’ PSYK is the first exchange traded fund providing exposure to the burgeoning industry of medicinal psychedelics.

Financings And M&A

  • Ayr Strategies Inc. (CSE:AYR) (OTCQX:AYRWF) confirmed a $75.4 million acquisition of Blue Camo LLC. Some $9.5 million of that amount is in cash, $37 million in stock (around 3.57 million shares) and up to $28.5 million in seller notes.
  • Gage Growth Corp. closed a $50 million Reg A+, Tier 2, financing round. The Detroit-based cannabis company issued 28.57 million subordinate voting shares for the offering, and added more than 1,000 shareholders, including both institutions and investors.
  • The Valens Company Inc. (TSX:VLNS) (OTCQX:VLNCF) agreed to buy LYF Food Technologies Inc., a cannabis edibles producer, in a cash and share transaction for CA$24.9 million ($19.6 million). The price tag will include an extra CA$17.5 million should LYF reach certain milestones.
  • The Supreme Cannabis Company, Inc. (TSX:FIRE) (OTCQX:SPRWF) confirmed the pricing of its earlier announced public offering of units at a price of 19 cents per unit. The underwriters agreed to buy 105.26 million units for gross proceeds of around $20 million.
  • Subversive Real Estate Acquisition REIT LP (OTCQX:SBVRF) (NEO: SVX.U) is teaming up with Israeli cannabis company InterCure Ltd. The combined entity will be led by Israel Ehud Barak, who serves as chairman and Former Prime Minister, and CEO Alex Rabinovitch.
  • Simultaneously, SVX reported a $65 million private placement deal intended to fund the transaction.
  • High Tide Inc. agreed to acquire Smoke Cartel Inc., one of the largest e-commerce platforms for consumption accessories in the world. Smoke Cartel founder Sean Geng will join the team as Chief Technology Officer.
  • Hemp and CBD beverage company Kona Gold Beverage Inc. (OTCQB:KGKG) acquired S&S Beverage Inc. in a cash and stock deal.
  • Heritage Cannabis Holdings Corp. (CSE:CANN) (OTC:HERTF) finalized its purchase of Premium 5 Ltd.
  • Jushi Holdings Inc. (CSE:JUSH) (OTCQB:JUSHF) closed its acquisition of Agape Total Health Care Inc.
  • GrowGeneration Corp. (NASDAQ:GRWG) agreed to buy Washington-based Indoor Garden & Lighting. Terms weren’t released.
  • ECGI Holdings Inc. (OTC:ECGI) acquired a Northern California-based cannabis farm spanning 1.7 million square feet. The company agreed to pay the property’s seller $3.5 million in cash and $500,000 of its restricted common shares.
  • Innovative Industrial Properties Inc. (NYSE:IIPR) has finalized its purchase of an Alachua, Florida-based property for $23.8 million, signing a long-term, triple-net lease-back deal with a subsidiary of Harvest Health & Recreation Inc. (CSE:HARV) (OTCQX:HRVSF).

San Francisco’s Newest Cannabis Dispensary Owner

Boxing champion Karim Mayfield opened his new store, Authentic 415, in Portero Hill on Jan. 23. The move underscores the cannabis industry's resilience during the Covid-19 pandemic. It's also a living testament of what San Francisco’s Cannabis Equity Program can help achieve.

“The store is called Authentic 415 because I’m authentically 415, and being authentic means giving back to the city and the people who raised me,” Mayfield says.

Raised in San Francisco’s Fillmore neighborhood, Mayfield overcame a teenage arrest for cannabis to become a Golden Gloves and NABO junior welterweight boxing champion. He would often use cannabis to recover while training. Years later, that same arrest — coupled with his lifelong residence in the city — allowed him to qualify for the equity program.

More News From The Week

Aphria Inc. (TSX:APHA) (NASDAQ:APHA) added topical products to its adult-use brand Solei.

Canopy Growth Corp. (TSX:WEED) (NASDAQ:CGC) and Martha Stewart added dog treats to their line of CBD wellness products.

Sunderstorm is launching its Kahna gummies in Nevada and Utah. "So many travelers from other states have enjoyed Kanha gummies while visiting California. It's exciting to offer these consumers a chance to purchase them in their home states,” Keith Cich, president of Sunderstorm, told Benzinga.

The “Let’s Talk Hemp Podcast, Volume Up” with Morris Beegle, is back with Season 4.

“In the first episode, I’ll be joined by co-host Annie Rouse along with industry guests Chad Rosen from Victory Hemp Foods and Morgan Elliott from IND Hemp,” said Beegle. “We’ll be bringing to light the industrial and nutritional grain and fiber side with focus on hemp grain including seed, oil and food for humans and animals and the market opportunities for hemp as a commodity in these areas.” 

Cloud Cannabis launched an online recommendation engine platform that helps consumers choose the right product strain based on their preferred taste, effects and potency. Dubbed Cloud Budtender AI it was released through an exclusive partnership with StrainBrain in Michigan.

“Education and customer experience are two of our top priorities at Cloud Cannabis, and Budtender AI will assist us in guiding our customers to the right product that meets their specific needs and wants,” said Cloud Cannabis co-founder John McLeod.

Canna Provisions announced the first harvest of Golden Bough, the launch strain of Wiseacre Farm Cannabis, which is now available at all retail locations in Massachusetts.

“I know how my sun [at Wiseacre Farm Cannabis] and how my soil works and my compost from the animals on my farm. I needed to pull some genetics from [cannabis] that was both strong, and able to finish at the latitude of the Berkshire hills, and I know within [Wiseacre Farm Cannabis] there is the genetic sequence that will thrive and be absolutely incredible here,” said Jon Piasecki, owner of Wiseacre Farm Cannabis.

The French National Agency for the Safety of Medicines and Health Products (ANSM) selected several companies to supply medical cannabis products for experimentation in France. Among the companies were Panaxia Labs Israel Ltd. and Neuraxpharm, as well as Tilray Inc. (NASDAQ:TLRY).

Curaleaf Holdings Inc. (CSE:CURA) (OTCQX:CURLF) will open its first dispensary in Pennsylvania, at 7040 Jonestown Road in Harrisburg.

Executive Moves

  • Flower One Holdings Inc. (CSE:FONE) (OTCQX:FLOOF) made several leadership changes, including the appointment of interim CEO Kellen O'Keefe. The move comes as Ken Villazor resigned as CEO, President and board chair.
  • Aurora Cannabis (NASDAQ:ACB) and MedReleaf Australia announced a strategic agreement where MedReleaf will act as the exclusive supplier in Australia for Aurora's MedReleaf, CanniMed and Aurora brands.
  • For more Cannabis Movers & Shakers click here and here.

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Lead image by Ilona Szentivanyi. Copyright: Benzinga.