🌿 NY Operators Launch Whole Flower

NY Cannabis Board Chair says no Cannabis licenses until 2023. AFC Gamma prices $100M 5.750% Senior Notes due 2027. HEXO reports ($70.0M) Net Loss for Q4’21.

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No Cannabis licenses until 2023, NY state cannabis board chair says. The head of the state’s Cannabis Control Board said Wednesday during a stop in Rochester that she anticipates licenses for the first recreational marijuana dispensaries in the state not being issued until the spring of 2023 at the earliest. Tremaine Wright, the board chair, made the statement during a “cannabiz” symposium held at Comedy at the Carlson. She said the board was working on an 18-month timeline to build the requisite policies framing the new legal marijuana market. That timeline, she said, doesn’t necessarily mean dispensaries will be open or fully-stocked by then either, but rather that they will have the legal authority to operate.

U.S. Cannabis Stocks Continues Steep Decline in October. After outperforming the overall cannabis market in September, the NCV American Cannabis Operator Index fell for the eighth straight month after having scored five straight monthly gains, declining 11.6%.

First Cannabis Farms in the U.S. to be Certified as OCal “Comparable-to-Organic” by California Certified Organic Farmers. Two California cannabis farms have pioneered a new milestone in cannabis, and are now certified as the first “comparable-to-organic” cannabis farms in the state, as well as in the United States, by CCOF (California Certified Organic Farmers). OCal is a new certification program through the California Dept. of Food and Ag (CDFA). The certification was awarded to well-respected legacy farmer Sensiboldt Organics out of Humboldt County, and The Highland Canopy at Sonoma Hills Farm, a premium craft cannabis farm and culinary garden located in Sonoma County. The first cannabis certification program of its kind in the U.S., OCal's standards, certification process, and regulations mirror almost exactly those of the USDA's National Organics Program (NOP), ensuring consumers that cannabis products bearing the OCal seal have met the consistent, uniform standards comparable to NOP.


AFC Gamma — Prices $100M 5.750% Senior Notes Due 2027. The Notes mature on May 1, 2027. Interest on the Notes is payable semi-annually in arrears on May 1 and November 1 of each year, with the first payment on May 1, 2022. The Notes will be AFC Gamma’s general unsecured and unsubordinated obligations, will be fully and unconditionally guaranteed by each of AFC Gamma's existing and future subsidiaries other than certain immaterial subsidiaries, and will rank equally in right of payment with all of AFC Gamma’s existing and future senior unsecured indebtedness and senior in right of payment to any of AFC Gamma’s subordinated indebtedness. The Notes will not be guaranteed by AFC Gamma's subsidiary on the issue date of the Notes.

Columbia Care x Tyson 2.0 — National Cultivation and Manufacturing Partner. Led by Adam Wilks and Chad Bronstein, Tyson 2.0 will provide retailers across the country with a suite of products designed to reach Mike Tyson's national audience. The company will also offer the Tyson brand throughout their dispensary network and to other retailers in select markets.

Driven By Stem — Enters Colorado with Acquisition of Colorado Harvest Company. Colorado Harvest Company is one of Denver’s oldest and most respected vertically-integrated operators with two delivery permits, three retail dispensaries, and two cultivation facilities. In calendar 2021, CHC is expected to generate over $13,000,000 in revenues, with a projected gross margin of $5,070,000, upon completing over 180,000 retail transactions.

Aurora x The Valens Company — Manufacturing Agreement. Launching under Drift Turbo, the Company's mainstream adult-use recreational brand, the new Canna Cane Mints are a two-piece hard peppermint candy containing 10mg THC (5mg THC per piece). This is the first product offering under the manufacturing arrangement, which is expected to expand in the coming months. The cannabis edibles will be manufactured using SōRSE™ by Valens emulsion technology, a patented, in-house emulsion technology that transforms cannabis oils into water-soluble forms to infuse foods, liquids and topicals without the taste or smell of cannabis.

Hydrofarm — Acquires Innovative Growers Equipment. Illinois-based Innovative Growers Equipment (IGE) is a manufacturer of horticulture benches, racking and LED lighting systems. Hydrofarm will fund the total purchase price of ~$58.0 million using a combination of cash, the Company’s credit facilities and ~$11.6 million in common stock. Hydrofarm expects IGE to generate approximately $48.0 million in net sales in 2021, representing significant growth from the prior year. Hydrofarm has historically distributed IGE products, representing approximately 7% of IGE’s total net sales. The transaction represents an acquisition multiple of approximately 7x IGE’s estimated 2021 Adjusted EBITDA, excluding synergies.

📄Company Updates / Earnings

HEXO — Fourth Quarter and FY 2021 Financial Results

  • Total net sales growth of 71% Q/Q and 43% Y/Y

  • Total Q4’21 Net Revenue increased to $38.7M from $22.6M in Q3’21

  • Total Net Revenue for FY21 grew 53% to $123.5M from $80.6M in FY20

  • Net Loss was ($70.0M) for Q4’21 and ($113.6M) for FY21

  • The Company acknowledges the ongoing concern with its senior secured convertible notes issued on May 27, 2021. While there exists a risk that significant cash outflows may be required over the next twelve months under the terms of the Senior Secured Convertible Note, the Company has been working with the Holder to renegotiate the terms of the Senior Secured Convertible Note. 

  • PwC said its recent review of the business showed that HEXO "did not maintain, in all material respects, effective internal control over financial reporting" and several factors "raise substantial doubt about its ability to continue as a going concern."

Eaze — Momentum 2022 Applications Now Open. Each member of Momentum’s 2022 class will receive a $50,000 grant; participate in a 12-week curriculum led by 70 volunteer experts; and gain access to the company’s extensive business development, marketing, and retailer resources. Eaze takes no equity in participants’ businesses. At Momentum’s conclusion, participants will pitch to industry-defining cannabis investors for the opportunity to raise additional funds.

Greenrose Acquisition Corp. — Stockholders Approve Business Combination. Shareholders voted to approve the proposed business combination with Connecticut-based Theraplant and the acquisition of certain assets of Arizona-based True Harvest. Upon closing the Business Combination, which is expected to be in early November, the combined company will be named The Greenrose Holding Company and will continue to be listed on the OTC under the symbols “GNRSU,” “GNRS,” and “GNRSW.” Greenrose also intends to list on the NEO exchange as soon as practicable after the close of the Business Combination.

Curaleaf — Sale of Whole Flower in New York For Its Four Locations. This follows the announcement from Columbia Care. Goodness Growth Holdings subsidiary Vireo Health of New York also launched whole flower Cannabis in New York.

4Front Ventures — Commences Operations at One of the World's Largest, Most Efficient Cannabis Manufacturing Facilities. The 170,000 sq. ft. facility that will manufacture both in-house and partner brands, including infused pre-rolls, gummies, hard candies, fruit chews, caramels, mints, soft gel capsules, vapes, tinctures and other manufactured infused products. The space also includes 80,000 sq. ft. of distribution and warehousing space, 25,450 sq. ft. of finished goods storage and 3,931 sq. ft. of dry flower storage. The facility currently produces nine of 4Front's 20 brands and 164 different SKUs.

Halo Collective — Unveils "Budega™" as Name for Retail Store Brand. In anticipation of opening the first of ten (10) proposed dispensaries in Southern California by the end of 2022, Halo has hired John Ford as SVP of Retail. Ford adds significant experience in the retail sector, including Director roles with Apple, Microsoft, and Comcast. During his tenure with Apple, Ford was responsible for launching Apple retail stores in China, and whilst with Microsoft, retail stores in both China and Australia. Most recently, he was the Chief Revenue Officer and Head of Retail for Chalice Brands.

Tilray — Expands Medical Cannabis Footprint in Europe. The company has been selected by the Luxembourg Ministry of Health as a supplier of Good Manufacturing Practice (GMP) certified medical cannabis products for the country’s medical cannabis program. Tilray operates two state-of-the-art GMP-Certified cannabis cultivation facilities in Europe located in Cantanhede, Portugal, and Neumunster, Germany. The E.U. Campus in Portugal is a multi-faceted production facility that includes the cultivation, extraction, processing, and packaging of medical cannabis. It also serves as a hub supporting Tilray's clinical research and product development efforts across Europe.

Agrify — Entry into Arizona Cannabis Market through Partnership with Olive El Mirage. Olive El Mirage is a contract cultivation operation working with the top consumer brands in the fast-growing Arizona market. Under the terms of the Agreement, Agrify will work with Olive El Mirage on the build-out of its 30,000-square-foot facility, including the installation of 400 of Agrify’s Vertical Farming Units (VFUs) along with integrated catwalks, integrated grow racks, and pest mitigation solutions. The deal value is expected to be ~$23.8 million, which includes $9.4 million for the purchase of 400 VFUs and recurring SaaS revenue at a value of $14.4 million derived from Olive El Mirage’s use of the Agrify Insights cultivation software over 10 years.


Trulieve — Reopens Locations in Miami (3), Bartow and Port St. Lucie. The locations were formerly branded as Harvest House of Cannabis. The company also opened its 104th location in Bartow, FL and 107th dispensary in Port St. Lucie. It is the 14th and final conversion of dispensaries formerly branded as Harvest House of Cannabis.

Cresco Labs — Sunnyside Tallahassee, FL and Oakland Park, FL. Tallahassee is Cresco Labs’ first location in the Panhandle, 10th in FL and 39th nationwide. The company also opened their 11th location and 40th nationwide in Oakland Park, FL.

Jushi — Opens 26th Store Nationwide and 2nd BEYOND / HELLO™ Retail Location in Virginia. This is the second of six dispensary openings in Virginia for the Company. The new dispensary, which features 17 point-of-sale systems, 70 onsite parking spots and a separate delivery service area, is situated only seven miles from Dulles International Airport, 30 miles from Washington D.C. and adjacent to Wegmans, Lowes, McDonalds and Burger King on a high-traffic highway that merges with Interstate 50. The bustling area is famous for its high-tech data centers, modern shopping malls and suburban residential communities.

Verano — Opens Zen Leaf™ Dispensary with Drive-Through in Las Vegas. Zen Leaf Flamingo is located in Spring Valley, a Las Vegas suburb just west of The Strip. Zen Leaf Flamingo is Verano’s third dispensary in Las Vegas and its 87th nationwide.


Heavy Hitters — Launches First Liquid Trichome Cannabis Tincture.

To celebrate their 25th anniversary, Heavy Hitters announced HVY Grand, the first large-format distilled cannabis tincture. Packing 1,000mg THC into each custom 1,000ml/1 liter bottle, HVY Grand retails for $200 (pre-tax) and is sure to become the ultimate collectible cannabis product this holiday season.

Puffco — Peak Pro.

Puffco upgraded its over-the-top Peak Pro vaporizer that increases the smoking experience and improves battery life. This upgrade requires users to swap the cooking chamber of their Peak Pro, but a sleek design makes this easy. The new chamber comes just after Puffco announced a clever battery-powered hot knife that makes loading the vape clean and easy. Called the 3D Chamber, this chamber is a significant part of the Puffco Peak Pro (this is where the magic happens). Inside, the cannabis material is quickly heated and turned into a vapor. Puffco designed this part so the user can unscrew the chamber for cleaning or replacing or upgrading.

Ayr Wellness — Launches Kynd Premium Flower in Arizona. Kynd’s initial launch in Arizona will be exclusive to Ayr’s Oasis Cannabis stores. The premium cannabis brand is comprised of carefully curated genetics that produce flower offering exceptional effect and flavor. The first Kynd drop features twelve popular strains, including Mai Thai, Black Water, and MTF.

Flower One — Launch Justin Bieber’s Palms "PEACHES" Pre-Roll Collaboration. Through this partnership, Flower One will become the exclusive producer of Palms “PEACHES” in the state of Nevada. “PEACHES” pre-rolls were launched in Nevada, California, Massachusetts and Florida on Monday, October 4th. In Nevada, the PEACHES line can be found at Planet13, MedMen, Cookies and other select dispensaries.

Martha Stewart CBD — Unveils Fall Flavors and Limited-Edition Holiday Products. Harvest Medley CBD Wellness Gummies, which will exist as a permanent offering, and the limited-edition Mini CBD Peppermint Ribbons and Snowflake CBD Gummy Sampler, available exclusively during the holiday season.

🧔People | 💻Hiring

Perfect Union — adds Denyelle Bruno as CEO. Bruno served as CEO of Tender Greens, where she restructured the farm-to-fork restaurant chain to ready it for broad national scale. She was part of the seven-member team that created Apple’s retail experience and personally opened the first Apple store (Glendale, Calif. in 2001). She has held leadership positions at some of the nation’s most renowned brands, including Peet’s Coffee & Tea and Drybar, where she helped build one of the hottest brands in the beauty industry as President of Retail. Former CEO David Spradlin will continue to serve as President.

Cronos — Group CIO Dr. Todd Abraham to Retire. Arye Weigensberg, GM at Cronos Research Labs and VP of Research and Technology, has assumed the role of Head of Research and Development on an interim basis until a permanent replacement is named. The Company is conducting a search for Dr. Abraham’s successor and looks forward to appointing a successor in the near term.

Acreage Holdings — Retirement of COO. COO Robert Daino, will retire on March 31, 2022. The Company has launched a national search for his replacement, and he will continue in his position until his retirement date to help ensure an orderly and efficient transition of responsibilities to his successor.

Fire & Flower — COO No Longer With Company. Nadia Vattovaz most recently served as COO responsible for overseeing the Company's real estate, construction, marketing, merchandising, distribution and retail operations functions. Vattovaz's duties will be assumed by members of Fire & Flower's senior management team as the Company continues its transition to an asset-light, technology-focused model.

Claybourne — Digital Marketing Specialist (Perris, CA).


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