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Dai Truong's Cannabis Newsletter - Issue #18
Canaccord Genuity analyst Bobby Burleson increased his long-term cannabis growth outlook for the U.S. for 2019 to 2022 from 19% CAGR to 20%. It’s a modest increase that Burleson said in his latest report published on July 1 that reflects increased expectations for Illinois. Other states that demonstrated positive momentum included Massachusetts and Nevada, while New York’s assumptions were lowered.
Cannabis-infused beverages will make up 20% to 30% of the Canadian pot market and the joint venture between Molson Coors Brewing Co. and Hexo Corp. intends to be the leader in the segment, according to its chief executive officer.
New Jersey announced that the health department will issue up to 24 new licenses to its medical cannabis program, far less than the 108 expected in June.
Columbia Care Enters World’s Largest Regulated Cannabis Market with Grand Opening of Flagship Dispensary in San Diego
Columbia Care (NEO: CCHW, OTC: COLXF), one of the largest fully-integrated operators in the global medical cannabis industry with licenses in 15 jurisdictions across the US and the EU, announced the launch of its west coast expansion strategy with the grand opening of its flagship San Diego dispensary, the Company’s first facility in California.
The City Council approved a contract with a firm that will help draft an ordinance that would legalize marijuana businesses. According to HdL’s proposal, the application process would include a “merit-based” review and a scoring system. HdL would provide all necessary applications and required forms, such as indemnity agreements.
State law and local ordinance conflict for 11 newly-approved businesses allowed to sell medical marijuana under Measure Z.
Named after B-Real of Cypress Hill’s alter ego, Dr. Greenthumb, the rapper is one of the owners of the new medical marijuana location. The original Dr. Greenthumb dispensary in Sylmar, as well as the one in Sacramento, will partner with Driven Deliveries. Additional California-based Dr. Greenthumb dispensaries are currently being built in Humboldt and Cathedral City. Both are slated to open in 2019.
Colorado’s first-in-the-nation experiment with legalized marijuana has infused the drug into almost every corner of life.
Harvest Health and Recreation (CSE: HARV, OTCQX: HRVSF) has a history of winning licenses, and the company is aggressively expanding to deliver on its promise of building the largest retail and wholesale footprint in U.S. cannabis. CEO Steve White took time while traveling to speak with New Cannabis Ventures about the company’s strategies for driving value, the recent funding announcement, and what investors should look at to track the company’s success.
KushCo Holdings, Inc. (OTCQX: KSHB) announced that it has partnered with C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships, to provide viable CBD companies access to large scale, conventional retail channels.
Surterra Wellness Raises $100M in Series D Funding to Accelerate its Growth in U.S. and International Markets
Surterra Wellness, announced the initial closing of a $100M Series D funding round and the expansion of its Board of Directors. Surterra plans to use the proceeds to fund strategic acquisitions and infrastructure capital expenditures. Participants in the round include existing and new investors, ultra-high net worth individuals and family investment offices, including former Patrón Spirits Company CEO, Ed Brown.
“With the completion and full planting of our flagship 400,000 square foot greenhouse, we are now in a continuous harvest cycle with our Nevada operations,” said Chief Financial Officer, Geoff Miachika. “This financing will principally support the acceleration of Flower One’s processing, finished goods, and high-volume packaging capabilities, leveraging our adjoining 55,000 square foot production facility to introduce and facilitate the Nevada product launches of our growing portfolio of Brand Partners.”
Zenabis Global announced that its wholly-owned subsidiary, Zenabis Ltd., has entered into an agreement with High Park Holdings Ltd. , a wholly-owned subsidiary of Tilray, Inc. (NASDAQ:TLRY), pursuant to which High Park will advance CAD $30M to Zenabis in return for a supply of dried cannabis from Zenabis.
Under the terms of the Supply Agreement, Zenabis will deliver a monthly quantity of dried cannabis to High Park commencing in October 2019. Zenabis expects the prepaid amount to be retired within a year. Zenabis does not expect delivery commitments to High Park to impact its ability to supply existing customers. The wholesale pricing under the Supply Agreement will vary depending on the product type and format High Park elects to order.
Blueberries Acquires Cannabis Cultivation, Processing & Manufacturing Rights for 3.2M Square Foot Property in Argentina
Blueberries is a Latin American licensed producer of naturally grown premium quality cannabis with its primary operations ideally located in the Bogotá Savannah of central Colombia and operations currently being established in Argentina.
Mr. Dastagir succeeds Zach Marburger, who is taking on a new role at Cresco as Entrepreneur in Residence. As CIO, Mr. Dastagir will be responsible for overseeing the technological infrastructure throughout Cresco and designing, scaling and implementing technological systems and platforms to optimize the customer experience.