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The Week In Cannabis: PharmaCann Could IPO, Tilray & MedMen, First Black CEO At Major Public Co. And More

August 20, 2021 5:29 pm
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The Week In Cannabis: PharmaCann Could IPO, Tilray & MedMen, First Black CEO At Major Public Co. And More

Below is a recap of the main news related to the cannabis industry and markets for the week of August 20, 2021.

PharmaCann Could IPO Soon

One of the largest private cannabis companies in the world could soon go public on the OTC Markets with a valuation of more than $1 billion.

According to a report from Reuters, PharmaCann could IPO as soon as next fall, as it looks to raise funds ahead of New York’s adult-use cannabis program’s debut. Some of the sources indicated other options are still being considered, though.

Sources also mentioned PharmaCann would likely seek to list in Canada, following the steps of its competitor Ascend Wellness Holdings Inc (OTC:AAWH), which made its public debut in May and is already valued at almost $2 billion, after a surge of more than 35% in its stock price since opening.

Tilray’s Position In MedMen Convertible Notes

Tilray, Inc. (NASDAQ:TLRY) acquired the majority of the outstanding senior secured convertible notes of MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF), which were originally held by certain funds affiliated with Gotham Green Partners, LLC and others. The transaction is valued at $165.8 million.

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

What’s In It For Tilray? For starters, the investment provides Tilray with a potential accelerated path into the U.S. cannabis market upon federal legalization via a significant equity position in MedMen through conversion of the notes and the ability to exercise associated warrants.

Many believe federal cannabis legalization could happen sooner rather than later and Tilray’s chairman and CEO Irwin D. Simon is among them.

Following the news Cantor Fitzgerald’s Pablo Zuanic reiterated an ‘Overweight’ rating on Tilray’s stock, keeping the price target of $19 unchanged. 

The Parent Co. Appoints First Black CEO In Major Public Cannabis Company

TPCO Holding Corp. (NEO: GRAM.U) (OTCQX:GRAMF), which does business as The Parent Company, appointed Troy Datcher to serve as its new CEO, effective September 8.

Datcher's historic appointment represents the first time a Black CEO will lead a major publicly traded U.S. cannabis organization.

"I'm truly honored to be at the forefront of shaping the future of the cannabis industry with The Parent Company," Datcher said. 

HEXO Stock Plunges On $140M Public Offering Announcement Ahead Of Transfer To NASDAQ

HEXO Corp (TSX:HEXO) (NYSE:HEXO) announced the pricing of a previously announced overnight marketed public offering of its 47.46 million units at a price of $2.95 per unit.

The total proceeds from the offering amount to $140 million before deducting underwriting commissions and offering expenses.

The move follows the company’s recent announcement that it has applied to transfer its U.S. stock exchange listing from the New York Stock Exchange to the Nasdaq Stock Market. The transfer is expected to take place on Monday, Aug. 23, following Nasdaq’s approval.

Markets

Stocks traded in the red this week. Over the five trading days of this week:

  • The ETFMG Alternative Harvest ETF (NYSE:MJ): lost 6.4%.
  • The AdvisorShares Pure Cannabis ETF (NYSE:YOLO): tumbled 5.8%.
  • The AdvisorShares Pure US Cannabis ETF (NYSE:MSOS): fell 8.5%.
  • The Cannabis ETF (NYSE:THCX): was down 5.5%.
  • The Amplify Seymour Cannabis ETF (NYSE:CNBS): slipped 6.6%.
  • The SPDR S&P 500 ETF Trust (NYSE:SPY) closed the week down 0.65%.

M&A

Acquiring Company Acquired Company Price Conditions
Village Farms International Inc (NASDAQ:VFF Balanced Health Botanicals $75 million Cash and stock
Unrivaled Brands, Inc., (OTCQX:UNRV) People’s First Choice $60 million Undisclosed
TerrAscend Corp. (CSE:TER) (OTCQX:TRSSF) TerrAscend NJ $50 million Cash and stock for a 12.5% stake in TerrAscend NJ
Scotts Miracle-Gro (NYSE: SMG) Rhizoflora’s leading nutrients business including its Terpinator and Purpinator brands $33.5 million Undisclosed
Ayr Wellness Inc. (CSE:AYR) (OTC:AYRWF) Cultivauna, LLC $20 million Cash and stock
IM Cannabis Corp. (CSE:IMCC) (NASDAQ:IMCC) Vironna Pharm $3.3 million Cash and stock for a 51% stake in Vironna
Scotts Miracle-Gro’s The Hawthorne Collective Dewey Scientific $3.2 million Warrants
Cresco Labs (CSE:CL) (OTCQX: CRLBF), Blair Wellness Undisclosed Undisclosed
Eaze Green Dragon Undisclosed Undisclosed

Financings

Company Lead Financier Amount
MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF) Serruya Private Equity $100 million
Harvest Health & Recreation Inc. (CSE:HARV) (OTCQX:HRVSF) Industrial Properties, Inc. (NYSE:IIPR) $16 million – Sale leaseback
Avicanna Inc. (TSX:AVCN) (OTCQX:AVCNF) Secured term loan financing

$2.12 million

C15 Solutions Poseidon Undisclosed

Earnings Reports

  • Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) released its second-quarter financial results with total adult-use cannabis sales in Canada of CA$20.9 million ($16.62 million) compared to CA$6.87 million in the same quarter of last year. The net revenue figures comprised of around 75% cannabis 2.0 products sales and about 25% from cannabis 1.0 product sales.
  • RIV Capital Inc. (TSX:RIV) (OTC:CNPOF), formerly known as Canopy Rivers Inc., reported that it has ended the first quarter of fiscal 2022 with CA$212.5 million ($169.7 million) of cash on hand. This follows a $150 million strategic investment from Scotts Miracle-Gro's newly created cannabis-focused subsidiary, The Hawthorne Collective.
  • IM Cannabis Corp. (CSE:IMCC) (NASDAQ:IMCC) reported its unaudited financial results for the three- and six-month periods ended June 30. As previously estimated, revenues amounted to $11.1 million, representing a $7.3 million or 192% year-over-year increase and a sequential growth of approximately 27%.
  • Stem Holdings, Inc. (OTCQX:STMH) (CSE:STEM), doing business as Driven by Stem, reported results for the third fiscal quarter ended June 30, 2021, with third-quarter record gross sales of $12.4 million and net sales of $10.6 million, up 104% and 103%, respectively, over the prior year’s $6.1 million gross sales and $5.2 million net sales. 
  • 4Front Ventures Corp. (CSE:FFNT) (OTCQX:FFNTF) announced second-quarter Pro Forma Revenue of $34.4 million compared to $31.4 million in Q1 2021, an increase of 85% year over year and 10% over Q1 2021
  • Ayr Wellness Inc. (CSE:AYR) OTCQX: AYRWF) reported its second-quarter financial results with revenue of $91.3 million, below Seeking Alpha estimates of $108.26 million, though representing a 222% improvement from the same quarter of 2020.
  • TPCO Holding Corp. announced its second-quarter financial results on Monday, revealing net sales of $54.2 million, representing approximately 18.9% growth compared to the adjusted Q1 2021 revenue of approximately $45.6 million.
  • Schwazze, (OTCQX: SHWZ), previously operating as Medicine Man Technologies revealed its financial results for the second quarter, reporting revenues of $30.7 million, up by 467% from the same quarter of 2020.
  • Glass House Brands Inc. (NEO: GLAS) (NEO: GLAS) reported that its net sales spiked 62% year-over-year to $18.7 million in the second quarter of fiscal 2021. Based in Long Beach, California, the company also said that it has ended the quarter with $134.3 million of cash on hand.
  • Lowell Farms Inc. (CSE:LOWL) (OTCQX:LOWLF) announced revenue and operating results for the second quarter ended June 30, revealing a 53% year-over-year and 37% quarter-over-quarter increase in revenue to $15.2 million.
  • Greenlane Holdings, Inc. (NASDAQ: GNLN) reported its second-quarter financial results with revenue of $34.7 million, beating Seeking Alpha's estimates of $33.94 million and representing an increase of 7.1% from the same quarter of 2020.
  • TerrAscend Corp. (CSE:TER) (OTCQX:TRSSF) reported its second-quarter financial results with net sales of $58.7 million, up by 72% year-over-year and 10% sequentially. The New York and Toronto-based cannabis company also announced the signing of an agreement with Berner's Cookies, one of the country's most recognized and highest-grossing lifestyle brands, to bring its products to cannabis shops in New Jersey.

Also reporting earnings this week were:

  • MariMed, Inc. (OTCQX:MRMD)
  • MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF) (FSE: MLZ)
  • Delta 9 Cannabis Inc. (TSX:DN) (OTCQX:DLTNF)
  • Decibel Cannabis Company Inc. (TSXV:DB) (OTCQB: DBCCF)
  • LFTD Partners Inc., formerly known as Acquired Sales Corp. (OTCQX:AQSP)
  • Medical Marijuana, Inc. (OTC:MJNA)
  • HempFusion Wellness Inc. (TSX:CBD) (OTCQX: CBDHF)
  • CURE Pharmaceutical Holding Corp. (OTC:CURR)
  • Flora Growth Corp. (NASDAQ:FLGC)
  • Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF)

Find all the details on these and other earnings reports on Benzinga Cannabis’ Earnings Center.

Kevin Durant, Tove Lo And Rosario Dawson

Cannabis-infused beverage company Cann launched Passion Peach Maté a caffeinated cannabis beverage that was designed in collaboration with a Swedish singer and songwriter Tove LoSweet Flower and Airfield Supply Co. Tove Lo is also a Cann investor such as other celebrities including Academy Award-winner Gwyneth Paltrow, as well as Ruby RoseRebel WilsonDarren CrissBaron DavisCasey Neistat and Calesha Murray (aka Bre-Z).

Later in the week, Rosario Dawson, known for her roles in Disney’s (NYSE: DIS) Mandalorian series, Men in Black II, Rent and many more, joined Cann’s board.
Cannabis tech platform Weedmaps owned by WM Holding Company, LLC (NASDAQ:MAPS) entered into a multi-year agreement with two-time NBA champion Kevin Durant and Thirty Five Ventures as well as a sponsorship deal with Boardroom. Durant is also president and co-founder of Thirty Five Ventures, a venture capital firm with the sports business media network Boardroom as well as an investment portfolio with more than 10 companies, including Dutchie.

NewLake Capital Partners’ $101.56M IPO

NewLake Capital Partners, Inc (OTCQX:NLCP), a sale-leaseback real estate company for the cannabis industry began trading on the OTCQX Best Market under symbol NLCP on Friday, August 20.

The news was disclosed by OTC Markets Group Inc. (OTCQX:OTCM) on the heels of the company's closing of an initial public offering of 3.91 million shares of common stock at an IPO price of $26 per share.

Europe

The Flowr Corporation (TSXV:FLWR) (OTC:FLWPF) announced that its indirect wholly-owned subsidiary, RPK Biopharma Ltd, has entered into a series of agreements with Cookies Creative Consulting and Promotions Inc, to cultivate and distribute Cookies products in Portugal from its E.U. GMP facility in Sintra spanning 25,000 square feet.

The move follows Cookies' debut in Europe in May 2020.

Under the terms of licensing agreements, RPK Biopharma will have the exclusive rights to cultivate and sell Cookies branded products, including non-cannabis merchandise, in Portugal for three years subject to certain milestone commitments.

Brazil And Japan

MediPharm Labs obtained approval from ANVISA and Health Canada to ship medical cannabis oil to Brazil.

The Valens Company Inc. (TSX:VLNS) (OTCQX:VLNCF) announced that its subsidiary Green Roads has entered into a third-party distribution agreement with Tele Marche Co., Ltd. for the sale and distribution of Green Roads' award-winning CBD products in Japan.

Tech And Data

Orchid Ventures Inc (OTC:ORVRF) launched its proprietary new technology platform PurGuard, which integrates age verification through web-based and/or mobile application, eliminating the possibility of a minor using the device. The product also has an auto-lock feature that locks the device when the registered user is out of range, further preventing its usage by a minor. This technological advancement is believed to be the biggest advancement in vaporizer safety technology in over a decade.

Petalfast Inc. announced a partnership with Dimensional Insights and its Diver Platform. This partnership will provide Petalfast with access to “real-time performance and sales analytics,” similar to how major food, wine and spirits brands have access. Access to analytics has long presented a challenge to cannabis companies seeking to build their brands. Dimensional Insights will provide Petalfast with sell-in data enabling the company to view sell-in data and be able to review performance at the retail, brand, SKU, regional and salesperson level. Although 

this is the first time a platform like this has been leveraged for the cannabis industry, it will certainly not be the last.

Akerna (NASDAQ:KERN) announced its new offering, Akerna Connect. The new eCommerce software provides a suite of digital marketing tools to retailers and dispensaries enabling locations to reach their consumers and enhance their shopping experience through online ordering, loyalty programs and text messaging.

Executive Moves

Find out all about the latest executive moves at:

Top Stories Of The Week

Check out the top stories on Benzinga Cannabis this week:

Top Spanish Stories

Lead image by Ilona Szentivanyi. Copyright: Benzinga.

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