Dai Truong's Cannabis Newsletter - Issue #11
The state received 462 applications for the 64 retail dispensary licenses they offered last year. But only sixteen applicants were granted 61 out of all 64 licenses. The last three licenses have yet to be awarded to anyone as of now. But according to the newly-released records, Tryke Companies SO NV LLC, Waveseer of Las Vegas LLC, Essence Henderson LLC, and a small number of other businesses were each allowed to open multiple dispensaries throughout the state.
The California cannabis industry has a paper trail problem, and it might suggest that legal players are diverting product back to the black market. According to a new report from the Associated Press, only 6% of California’s licensed cannabis companies are using the state’s seed-to-sale tracking system — a program that was supposed to keep count of every gram of legal cannabis produced and sold.
In March, both states seemed days away from a landmark legalization deal. Now inertia is feeding doubts that it can happen this year. People are talking about it less, there is no sense of urgency. There is still a chance that legalization could break through, with six weeks left in New York’s legislative session and a self-imposed deadline of May 31 in New Jersey.
After approving deliveries a few months back, Michigan has finally issued their first medical marijuana home delivery licenses.
Ohio officials say nothing was wrong with the product but a labeling error put it out of compliance with state rules. So far, only Grow Ohio and Standard Wellness, have passed inspections and been allowed to make marijuana products. The other 38 state-licensed marijuana product processors will learn from their “interpretation issue.”
What can cannabis learn from the tech industry? Q&A with ex-Yahoo CEO and current Caliva chair Carol Bartz
Carol Bartz has had a front-row seat to the nation’s technology boom dating back decades. The former Yahoo CEO sees parallels between today’s cannabis industry and high-tech.
Knowing the Cannabis Ecosystem: Q&A With Merida Capital Managing Partner Mitch Baruchowitz - Cannabis Business Times
Following the launch of a $200M fund and two executive-level hires, Merida has big goals. Cannabis Business Times took a moment to check in with Baruchowitz on his professional strategies and his thoughts on the current state of corporate growth in cannabis.
Wildflower brands Acquisition of City Cannabis to Include One of the First Licenses on Vancouver Island
Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF) announced that a cannabis store application in Comox has been granted Approval In Principle (AIP) by the Provincial Liquor and Cannabis Regulation Branch. William MacLean, CEO of Wildflower Brands, says, “City Cannabis is no doubt the fastest growing multiple location cannabis retailer in BC. The team has demonstrated their ability to find the best locations, but more importantly, the knowledge and ability to work with regulators at all levels has meant success in licensing that is unmatched. We look forward to completing the acquisition and bringing together two phenomenal companies.”
Daye, a “femcare” startup developing a new type of tampon that uses CBD to help tackle dysmenorrhea, has quietly raised $5.5M in funding from high-profile investors in the U.S. and Europe, TechCrunch has learned. Backing the seed round is Silicon Valley’s Khosla Ventures, along with London’s Index Ventures and Kindred Capital.
The Green Organic Dutchman (TSX:TGOD) (US:TGODF) announced the Company’s strategic investment into the US beverage space as a co-founding investor and strategic partner in the newly formed Califormulations LLC (“Califormulations”). Califormulations will operate out of Columbus, Georgia and serve global branded companies with concept-to-shelf beverage commercialization support including formulation development, technical services, in-house pilot scale production and contract manufacturing co-ordination. TGOD will work with Califormulations to expedite the US launch of TGOD branded organic hemp-based CBD beverages, as local laws and regulations permit.
NBA veteran Keyon Dooling announced he was launching a new CBD line, Krafted Organics, in partnership with California cannabis and CBD company Camp Green Organics.
In conjunction with the opening of The Salon Project by Joel Warren, the CBD Beauty Corner is set to make its debut on May 11 for Mother’s Day weekend.
Neptune Wellness Solutions (NASDAQ: NEPT) (TSX: NEPT) announced the signing of a definitive agreement to acquire substantially all of the assets of SugarLeaf Labs, LLC and Forest Remedies LLC, a registered North Carolina-based commercial hemp company providing extraction services and formulated products. Through SugarLeaf, Neptune establishes a U.S.-based hemp extract supply chain, gaining a 24,000 square foot facility located in the important U.S. Southeast region. SugarLeaf’s cutting-edge cold ethanol processing facility with a processing capacity of 1,500,000 kg uses hemp cultivated by licensed American growers consistent with federal and state regulations to yield high-quality full and broad-spectrum hemp extracts.
4Front Holdings, LLC (“4Front”), a diversified operator of strategically aligned cannabis-related businesses, including cultivation, production and retail operations, is pleased to announce it has secured a $50M from LI Lending, LLC (“LI Lending”) to support the expansion and buildout of 4Front’s cultivation and production facilities ahead of its anticipated business combination with Cannex Capital Holdings, Inc. (“Cannex”) (CSE:CNNX). The Loan’s terms include: five-year term, interest rate of 10.25%, 20% repayment premium at maturity
Abacus Health Products, Inc. (CSE: ABCS) (“Abacus” or the “Company”) announced the closing of its bought deal offering of 2,464,450 units including the exercise, in full, of the Underwriters’ over-allotment option for gross proceeds of $34,502,300. The Offering was underwritten by a syndicate of dealers led by Eight Capital and included GMP Securities LP, Cormark Securities Inc., Haywood Securities Inc. and Paradigm Capital Inc.
humble+fume Announces Closing of $20M Convertible Debenture Financing. The Convertible Debentures have a maturity date of two years from the closing date and will bear interest from the date of closing at 8.0% per annum. The Convertible Debentures will automatically convert into common shares of the Company immediately prior to a go-public transaction. GMP Securities L.P. and INFOR Financial Inc. acted as joint bookrunners and co-lead agents on the Offering. The Company intends to use the net proceeds of the Offering to execute on its U.S. expansion strategy and to fund growth initiatives across North America, including its strategic cannabis extraction partnership in Canada with 48North Cannabis.
Green Peak Innovations, Michigan’s largest holder of vertical medical marijuana licenses, announced today that it has entered into a definitive agreement to acquire a company which holds a vertical cannabis license in the state of Florida. This transaction will give Green Peak Innovations one of only 22 vertical licenses in Florida, the third largest cannabis market in the United States.
NUG is a vertically-integrated California cannabis company with significant projected revenue growth. NUG operates one of the largest manufacturing processing centers in California and its products are represented in more than 80 percent of the state’s dispensaries. The award-winning edible and smokable items, developed at the company’s world-class Oakland facilities through trailblazing R&D, extraction, distillation, and post-processing laboratories, bring in revenues in excess of $35 million annually.
HERITAGE CANNABIS HOLDINGS CORP. (CSE:CANN) announced that it has closed its previously announced bought deal offering of 32,660,000 units of the Company at a price of $0.53 per Unit for aggregate gross proceeds of $17,309,800, which includes the full excise by the Underwriters of an over-allotment option to acquire an additional $2,257,800 worth of Units.
There’s a new cannabis-infused drink company coming together, helped along by the venture firm DCM, which just plugged $5M in seed funding into the company. Called K-Zen Beverages, the months-old startup represents the second cannabis-related investment for DCM after Eaze, the on-demand cannabis delivery platform.
Corsica Innovations (“LEAF”) announced a $4.5M oversubscribed private financing round to fully fund its commercial manufacturing launch. LEAF has developed an automated home-growing system, allowing anyone to grow high-quality, pesticide free, medical plants and food.
Nabis Holdings Signs Definitive Agreement to Purchase Assets Including Established Extraction & Production Facility in Washington State
Nabis announced that it, through a wholly-owned subsidiary, has signed a definitive agreement to purchase certain assets from PDT Technologies LLC (“PDT”), including extraction and production equipment and rights to lease its current production facility in Port Townsend, WA. In addition, the Company will purchase the exclusive licensing rights throughout the state of Washington to Chong’s Choice brand products, one of the leading and most recognizable brands in the cannabis space.
As part of its ongoing commitment to provide access to the most innovative and useful cannabis products on the market, Indus Holdings, Inc. (CSE:INDS) has acquired the assets and global rights and business of Humble Flower Co., adding a California original and one of the most successful female-founded companies in the industry to its growing portfolio of award-winning cannabis brands.
TILT Holdings Inc. (CSE:TILT) (OTCQB:SVVTF), a leading business to business company in the cannabis industry, announced the appointment of Mark Scatterday to the position of interim Chief Executive Officer of TILT, effective immediately. The Board has formed a committee which is in the process of retaining an executive search firm for the purpose of identifying a long-term CEO candidate to lead the Company through its next growth phase. Alex Coleman, the Company’s former CEO, has stepped down and will remain as Chairman of the Board and continue to focus on corporate development and strategy including possibly a separate public listing in the US for qualifying assets, partnership or joint ventures.
The seasoned executive from one of the world’s largest pet food companies will drive the growth of True Leaf Pet. In his new role, Cole will streamline operations and accelerate growth for True Leaf Pet, which produces, markets and distributes hemp-based supplements for pets to 3,500 stores worldwide. Kevin will spearhead the division’s growth, focusing first on bringing a legally-compliant CBD product for pets to market. He will also lead efforts to expand True Leaf’s store reach worldwide including penetration into Asia, launch a global education campaign on cannabis-for-pets–a new product category–as well as aim to execute the company’s direct-to-consumer strategy.
Merida Capital Partners (Merida), a private equity firm focused on high-conviction investments in the cannabis ecosystem, announced it added former Omnicom Group Inc. (NYSE: OMC) executive Tom Harrison and former Medco Health Solutions, Inc. executive Pamela Galassini as senior operating partners.
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ TORONTO, May 8, 2019 /CNW/ - Abacus Health Products, Inc….