🤝 Curaleaf acquires Bloom Dispensaries (AZ) for $211M and Natural Remedy (AZ) for $13M
Trulieve acquires PurpleMed Healing Center (AZ). Verano closes Connecticut Pharmaceutical Solutions and Caring Nature (CT). AWH closes Ohio Cannabis Clinic (OH). Schwazze closes Smoking Gun (CO).
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Missouri high court to decide if medical marijuana business applications can be disclosed. The Missouri Supreme Court heard arguments in a case that might force state medical marijuana regulators to make public MMJ business license applications, a request made by a company that was denied cultivation permits. According to the Missouri Independent, the state’s high court will decide whether application confidentiality – which was written into the state ballot measure that legalized MMJ in 2018 – should be nullified so that those who lost out on permits can compare their applications to those of license winners during appeals. The case was brought by California-based Kings Garden Midwest, which didn’t win either of two cultivation applications it submitted. The company sought an appeal in part because it contended its two applications were identical but received different scores from regulators. Lower courts have already ruled in favor of Kings Garden Midwest.
Montana prepares for Jan. 1 launch of $325M adult-use cannabis market. Montana cannabis businesses are gearing up for the scheduled Jan. 1 launch of the nation’s newest adult-use program, with major changes in store for how companies operate and concerns about shortages in a market projected to top $300M in annual sales by 2025. The Western state has a population of only 1.1 million, but substantial demand is expected to come from tourists. In 2020, 11.1 million people visited the state, according to a University of Montana study. The MJBizFactbook projects that recreational marijuana sales will reach $90M in 2022 and $325Mby 2025.
Curaleaf — Acquires Bloom Dispensaries in AZ.
Bloom is a vertically-integrated, single state cannabis operator in Arizona. Curaleaf will acquire the company in an all cash transaction valued at ~$211M ($51M cash at closing, with the remaining ~$160M paid in three promissory notes of $50M, $50M, and $60M due, respectively, on the first, second and third anniversary of closing of the transaction). The Company expects to generate revenue of ~$66M and EBITDA margins of more than 40% in 2021. The proposed transaction with Bloom includes four retail dispensaries located in the cities of Phoenix, Tucson, Peoria, and the only dispensary currently in Sedona. Bloom strengthens Curaleaf's production capabilities in Arizona with the addition of two adjacent cultivation and processing facilities located in north Phoenix totaling approximately 63,500 sq. ft. of space. Following the close of Bloom and the previously announced acquisitions of Tryke Companies and Natural Remedy Patient Center, Curaleaf's retail footprint will increase to 16 dispensaries in Arizona and 128 nationwide.
Curaleaf — Acquires Natural Remedy in Safford, AZ. The cash and stock transaction was valued at $13M ($12M cash, $1M stock). In mid-2022, Curaleaf intends to relocate the Safford retail store to a new, flagship 9,000 square foot dispensary located at 16277 N. Greenway Hayden Loop, Scottsdale, Arizona. Curaleaf's new Scottsdale dispensary will be one of just five in the city and will be strategically located at the highly trafficked intersection of Frank Lloyd Wright Boulevard and N. Greenway Hayden Loop in the Scottsdale Airpark. After the close of the Company's previously announced acquisition of Tryke Companies, which is expected in the second half of 2022, Curaleaf's retail footprint in Arizona will increase to 12 dispensaries.
Trulieve — Acquires PurpleMed Healing Center in Tucson, AZ. Consideration paid for the acquisition was deemed immaterial. Located at 1010 S Freeway in Tucson, the retail operation is being rebranded to Harvest House of Cannabis. The dispensary becomes the Company's 17th in the state serving both medical patients and recreational customers. Trulieve-affiliated dispensary locations in Arizona include Avondale, Casa Grande, Chandler, Cottonwood, Glendale, Guadalupe, Lake Havasu, Mesa, Peoria, Phoenix, Scottsdale, Tempe and Tucson.
Curaleaf — Closes Additional $50M Private Placement of 8.0% Senior Secured Notes Due 2026. The Additional Notes were offered under an existing trust indenture pursuant to which Curaleaf previously issued $425M aggregate principal amount of 8.0 % Senior Secured Notes due 2026. The Additional Notes and the Initial Notes will be consolidated with and form a single series with the Initial Notes.
NewLake Capital Partners — Acquires Research, Cultivation and Processing Property from Organic Remedies in Missouri for $21.1M. NewLake’s total investment in the property will be $21.1M, which includes $16M at closing and a commitment to fund $5.1M of tenant improvement allowances to complete renovations of the building. Organic Remedies operates the property as a cultivation and processing facility.
Verano — Closes Connecticut Pharmaceutical Solutions, Inc and Caring Nature, LLC Transactions. The acquisition of all of the equity interests of Caring Nature, LLC, includes one active dispensary in Waterbury, Connecticut. The acquisition of all of the equity interests of Connecticut Pharmaceutical Solutions, Inc., includes an active, 216,532 sq. ft. state-of-the-art cultivation and production facility in Rocky Hill, Connecticut.
AWH — Completes Acquisition of Ohio Cannabis Clinic and its Medical Cannabis Dispensary in the Greater Columbus Area. The dispensary will benefit from its position close to all major thoroughfares and it is less than 90 minutes from all major cities including Columbus, Cincinnati, and Cleveland.There are currently 56 medical-use dispensaries in Ohio serving the state's more than 186,590 registered medical cannabis patients.
Schwazze — Closes acquisition of Smoking Gun. Total consideration for the acquisition was $4M in cash and 100,000 shares of Schwazze common stock upon closing. The Smoking Gun dispensary and assets are located on a prime retail corner in Glendale, Colorado in the center of the greater Denver metro area. This acquisition is part of the Company's continuing retail expansion plan in Colorado, and including the recently announced planned acquisitions in New Mexico (December 3, 2021), brings the total number of dispensaries to 32.
Power REIT — $20M Debt Financing Facility. The company entered into a debt financing facility with a commercial federally regulated bank with an initial amount of $20M. Power REIT expects to use the Debt Facility proceeds as a growth vehicle to acquire additional greenhouse cultivation properties, as well as fund value-add improvements at its existing greenhouse properties. The interest rate on the Debt Facility is fixed at 5.52%. The Debt Facility has a 12-month draw period after which the Debt Facility converts to a five-year fully amortizing term loan. As consideration for the Debt Facility, Power REIT contributed a portion of its greenhouse real estate portfolio to a newly formed wholly owned subsidiary that will serve as the borrower with the assets serving as collateral for the Bank. Power REIT’s remaining unencumbered greenhouse portfolio can be added to the collateral pool for the Debt Facility at a later date, which could allow for the expansion of the size of the Debt Facility.
📄 Company Updates / Earnings
Clever Leaves — Licensed Expansion Doubles Portuguese Production Capacity and Diversifies Export Potential. With the preexisting facilities licensed in August 2020, this new milestone extends the licensed cultivation footprint by approximately 150,000 square feet, more than doubling the facility’s original licensed cultivation capacity to a total of nearly 260,000 square feet of cultivation as well as supporting post-harvest and other activities. Thus far, Clever Leaves has exported from their Portuguese facilities to the United Kingdom, Australia, the United States, and Israel, each with distinct product requirements and specifications. The additional greenhouse space will enable further tailoring of cultivation efforts toward country-specific regulations, both increasing previous export capability and diversifying exports geographically.
Ayr Wellness — Opens 43rd Florida Location in Eustis. The store is the first Florida dispensary to have been fully designed and built by the Ayr team and incorporates design elements inspired by the company’s upcoming Boston-area flagship dispensaries in Back Bay and Watertown.
Gage — Opens Kalamazoo Stadium Dispensary. The Company's 11th dispensary in Michigan, located at 3825 Stadium Drive, is the second Gage storefront to open in Kalamazoo. In March this year, Gage opened COOKIES Kalamazoo through its exclusive licensing partnership with COOKIES.
MedMen — Opens Fenway Location, Officially Enters MA Market. Occupying 4,725 square feet of prime retail space on 120 Brookline Avenue, MedMen Fenway marks the Company’s entry into Massachusetts’ booming adult-use market. MedMen Fenway will carry a full inventory of vaporizers, concentrates, pre-rolls, topicals and flower, including an array of high cannabinoid and terpene offerings and a diverse selection of brands such as Kanha, Cresco and more.
Curaleaf — Opens Four New Florida Dispensaries. The expansion will increase the Company's retail footprint to 42 dispensaries statewide and 117 across the country. Curaleaf Stuart is the first of the four dispensaries to open its doors today and will be followed by openings in Lady Lake, Wesley Chapel and Miami over the next few weeks, subject to final regulatory approvals.
Trulieve — Expands Patient Access to Medical Cannabis with Eighth Tampa-area Dispensary and Port Richey, FL dispensary. The Port Richey location is Trulieve's 112th dispensary in Florida and its 159th nationwide, following the relocation of the Tampa North Dale Mabry medical dispensary.
Trulieve — Expands Executive Leadership Team. President, Steve White; VP & General Counsel, Nicole Stanton; Director of Investor Relations, Christine Hersey; and Executive Director of Corporate Communications, Rob Kremer.
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