🍑 Six companies awarded Medical Licenses in Georgia

Colombia removes ban on dry flower exports. TILT enters into new $10M Revolving Credit Facility (Prime +3.5%).

Jul 26, 2021

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🌿Industry

Medical marijuana licenses approved for six companies in Georgia. The announcement is a long-awaited milestone for about 15,000 patients who have been authorized to use medical marijuana oil since 2015 but weren’t permitted to buy it. The businesses will be able to sell, grow and manufacture medical marijuana oil, which can have no more than 5% THC. Two companies won licenses to cultivate medical marijuana oil on 100,000 square feet of indoor growing space: Trulieve GA Inc., an affiliate of Trulieve and Botanical Sciences LLC, a business located in Glennville in South Georgia. Four companies will be licensed to operate smaller production facilities with 50,000 square feet of growing room: FFD GA Holdings, TheraTrue Georgia LLC, Natures GA LLC and Treevana Remedy Inc.

Colombia boosts budding cannabis industry by removing ban on dry flower exports. Colombia on Friday gave the green light for exports of dried cannabis for medical and other industries, as the Andean country took another step to develop its marijuana industry, where progress has been slow despite high potential. President Ivan Duque signed a decree lifting a prohibition on exporting dried cannabis flower, a move seen as crucial by investors. The directive also allows for the expansion of sales of cannabis-based medicines and streamlines regulatory procedures. While Colombia has been hailed as a pioneer in regulating the possession, production, distribution, commercialization and export of seeds, plants and substances derived from cannabis - like oils, creams and extracts for medicinal purposes - investors have long complained about what they say is a tortuous export-approval process.

Opportunities abound in Michigan’s growing recreational marijuana market.

Since launching 1½ years ago, Michigan’s recreational marijuana program offers attractive market opportunities because of its large population, rapid sales growth, additional licenses and relatively affordable acquisition deals. Monthly recreational marijuana sales in Michigan have exceeded $100 million since April, putting sales for all of 2021 on track to exceed $1.2 billion. That would be more than double the level of sales last year. The 2021 MJBizFactbook projects that adult-use sales in Michigan will quadruple from roughly $500 million in 2020 to $2 billion-$2.5 billion in 2025. MSOs increasingly are focusing on Michigan, but not to the extent that they have on fast-growing adult-use and medical states such as Illinois, Massachusetts and Pennsylvania.

💵Deals

TILT Holdings — Enters Into New $10 Million Revolving Credit Facility. The Company’s subsidiary, Jupiter, has entered into a new two-year, $10 million asset-based revolving credit facility with Entrepreneur Growth Capital, LLC. Borrowings under the new credit facility will bear interest at Prime + 3.5% (6.75% as of today) and will be secured by Jupiter’s inventory, accounts receivable and related property. Jupiter’s existing senior and junior note creditors will subordinate their security interests in Jupiter’s inventory, accounts receivable and related property when the new facility closes; the existing note creditors will maintain the priority of their security interests in other Jupiter collateral. The new credit facility has a two-year initial term and will continue for successive one-year terms unless terminated by either party effective at the end of the then-current term. The loan terms provide for minimum monthly interest charges, and for borrowing base eligibility requirements, advance rates, fees, events of default and default interest rates that are common features in such facilities.

🏬Retail

Verano (Zen Leaf) — Opens Dispensary in Philadelphia. Zen Leaf Philadelphia to become the Company’s 11th affiliated, fully operational dispensary in Pennsylvania, and 79th nationwide across its active, 11-state footprint. Philadelphia is the sixth-most-populous city in the U.S., with an extended metro-area that is home to over 6 million residents. Verano continues to develop this core market and plans to open its 12th affiliated Pennsylvania dispensary next week. The Healing Research Center in Pittsburgh will open on Friday, July 30, and the Company’s affiliates expect to open at least two additional dispensaries in the state during the remainder of 2021.

Curaleaf — Wells, Maine. This is the company's fifth branded location in Maine (comprised of one adult-use and four medical locations) and its 108th nationwide. Because of the state's reciprocity regulations, Curaleaf Wells can also provide service to out-of-state patients provided they have a valid medical marijuana certification from their home state with a corresponding driver's license or state ID.

Skymint — expands to downtown Bay City, MI with a new cannabis storefront. The downtown Bay City store is Skymint’s 14th store as the company continues to expand across the state. According to information provided by Skymint, the company has opened 14 stores throughout Michigan, introduced five new Skymint product lines, more than 250 new products and has created 500+ jobs across the state. Skymint also stated that it has contributed $500K to date to local and regional organizations.