PharmaCann Announces Merger With Colorado Operator LivWell As It Considers IPO

Vertically integrated cannabis company PharmaCann Inc. announced on Tuesday that it is acquiring LivWell Holdings, Inc. Though PharmaCann did not reveal the terms of the agreement with the Colorado-based multi-state cannabis cultivator and retailer, the company said the combined entity will operate roughly 60 dispensaries and 11 cultivation and production facilities across eight states once the deal is sealed.

Brett Novey, CEO of PharmaCann said the merger will boost the company's "presence in the second and third-largest cannabis markets in the U.S. and provides a strong foundational team and operational platform for PharmaCann's further expansion into new states.

"Together we will implement best practices across all of our operations and build upon LivWell's strong brand and expertise in producing a low-cost, high-quality product," Novey said.

John Lord, founder and CEO of LivWell, agreed to join the PharmaCann's board of directors as part of the transaction.

"PharmaCann's undeniable financial expertise and LivWell's proven operational leadership makes this merger the perfect combination to further the patient and customer experience on an expanding national level," Lord disclosed.

The closing of the transaction is subject to customary closing conditions, including, among others, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act as well as state and municipal level regulatory approvals.

Canaccord Genuity Corp. served as a financial advisor, and Perkins Coie, LLP, served as legal advisor to PharmaCann. Canaccord Genuity Corp. also provided a fairness opinion to the board of directors of PharmaCann.

Gramercy Capital Group, LLC acted as an exclusive financial advisor, and Husch Blackwell LLP served as legal advisor to LivWell.

Upcoming IPO?

In the meantime, PharmaCann, which holds ten original cannabis licenses in New York, is poised to go public, Reuters recently wrote, noting that the company confidentially filed for an initial public offering that could value it at well over $1 billion,

In June, the company raised approximately $79.9 million through a private offering of 12% senior secured notes due June 30, 2025.

According to some of the sources, PharmaCann would likely seek to list in Canada, following the steps of its competitor Ascend Wellness Holdings Inc AAWH AAWH, which made its public debut in May, raising $80 million through the IPO.

Cannabis Capital Conference

Ascend Wellness' CRO Christopher Melillo is one of the speakers at the Benzinga Cannabis Capital Conference, which returns in a live format this week (Oct. 14-15) at New York's Marriott Marquis in Manhattan, where CEOs, investors and leaders in the cannabis industry will gather.

Tickets are still available for both the in-person and virtual versions of the conference. You can secure your spot at the conference here.

Photo: Courtesy of Cytonn Photography on Unsplash