Dai Truong's Cannabis Newsletter - Issue #23
Cannabis Retailer Sweetflower Loses Appeal to Open Shop Near Major Pasadena Intersection
The Board voted 4-1 to uphold a decision to reject SweetFlower’s Conditional Use Permit (CUP) application because the company submitted an incomplete application. According to Planning and Community Development Director David Reyes, SweetFlower failed to include a mapping report “prepared by a licensed surveyor,” as required.
SweetFlower had hoped to open a retail shop at 827 East Colorado Boulevard, in Council District Three. It originally submitted an application with a map not prepared by a licensed surveyor. Informed by the Planning Department that their application was incomplete, they then submitted an application with a map “reviewed by” a licensed surveyor. Finally they submitted a third map, but was told by the Planning Department that their application would be rejected.
SOL Global Announces Proposed Change of Business to U.S. Cannabis MSO, Rebranding to Bluma Wellness Inc.
As part of the Company’s initiative in shifting their focus of business to the vertically integrated expansion of its MSO operations, the Company plans to complete the previously-announced acquisitions of the proposed assets of the MSO which include the licensed dispensaries operated by MCP Wellness in Michigan as announced on April 24, 2019, our California acquisitions which include the famed Humboldt, California-based cultivator “Northern Emeralds” and the California-based dispensary chain “One Plant USA” as were announced on May 16, 2019, in addition to SOL Global’s existing vertically integrated license in Florida, 3 Boys Farm.
Greenlane and Canopy Growth Announce Exclusive U.S. Distribution Partnership for Storz & Bickel Vaporizers
Exclusive Partnership Launches Next Generation Volcano Hybrid Vaporizer
"Massive, unsustainable" value gap between Canadian / U.S.
Cannabis companies focused on the United States are still seeing a “massive and unsustainable” valuation discount relative to their Canadian counterparts. U.S. companies at trading at ~13X EBITDA while Canadian peers trade around 30x EBITDA. In addition, U.S. companies provide two structural advantages: product breadth and supply-chain participation by the private-sector.
What medical cannabis firms might learn from Harvest’s compliance conundrums
Harvest Health & Recreation is in high-stakes clashes with medical marijuana regulators in Pennsylvania and Ohio, and the disputes could potentially offer other MMJ firms some cautionary lessons on the value of maintaining strict regulatory compliance in state-legal markets.
Washington, DC Now Accepting Medical Marijuana Cards From Any State
The policy change means the nation’s capital will now accept valid marjiuana cards from any of the 27 states where medical cannabis is legal.
Canadian cannabis giant on brink of collapse
Beleagured Canadian cannabis producer CannTrust sees its shares tumble as inspectors from Health Canada find numerous irregularities.
Greece green lights 26 medicinal cannabis licences
Greece has approved 26 licences for cannabis cultivation and processing facilities in the country, the government has confirmed. The Kyriakos Mitsotakis administration, which was sworn in last month, hopes that new licences will eventually lead to around €360 million of investment and create up to 2,250 jobs. Greece’s unemployment level has remained the highest in the Eurozone, making potential foreign direct investment attractive to the new government. In total, 72 applications have been made, with four official rejections, and a further 42 bids still to be determined. So far, no firm has gained all three licences required to begin production. However, optimism is building that businesses could be fully operational within the next 12 months.
A Los Angeles realtor threw a weed-themed open house for a $3.5M mansion, and he says this is just the beginning of the crossover between cannabis and luxury real estate
100 guests gathered at a $3.5M home for cannabis-infused chocolates, gummies, and other edibles, vape pens, and CBD cream massages.
Lowell Herb Co. introduces Cold-Pressed Cannabis Oil
Lowell Herb Co. adds a new item to their portfolio with their introduction of cold-pressed cannabis oil.
Arizona™ Beverages and Dixie Brands Form Strategic Partnership to Launch Collection of THC-Infused Cannabis Products
Under the terms of this deal between Dixie Brands Inc., and the AriZona™ brand, through its affiliated entity, Herbal Enterprises, LLC, will direct brand and product conceptual design; while Dixie Brands will develop, formulate, manufacture and distribute the new portfolio of AriZona branded THC infused consumer packaged goods.
Josh Kushner’s Thrive Capital Makes First Marijuana Investment
Thrive Capital Management, founded by the brother of presidential adviser and Donald Trump’s son-in-law Jared Kushner, is leading a $35M fundraising round for LeafLink, a New York-based online marketplace for wholesale buyers and sellers of cannabis.
Canopy Growth to Buy Cannabis Research Joint Venture
The acquisition brings together Canopy’s wholly owned research program with the Beckley Canopy research platform which is partly owned by Canopy Growth in order to combine the best teams, programs and clinical work all under a single strategic plan. The research arm in turn directly supports the commercial efforts of Spectrum Therapeutics around the world.
Beleave Announces Non-Binding LOI with TerraFarma Inc.
TerraFarma is a privately-held, vertically-integrated cultivator and processor of premium and ultra-premium cannabis and cannabis offshoots, founded in 2018, with production facilities in Jarvis, Ontario. TerraFarma’s wholly-owned subsidiary Thrive Cannabis holds production, sales and outdoor cultivation licenses from Health Canada. Thrive Cannabis is currently developing premium brands for the Canadian recreational market that will commence distribution in 2020 and beyond.
Medicine Man Technologies, Inc. Announces Binding Term Sheet to Acquire Dabble Extracts, a Cannabis Extract Company
Medicine Man Technologies, Inc. (OTCQX: MDCL) announced that the Company has entered into a binding term sheet to acquire Colorado-based Dabble Extracts, an award-winning cannabis concentrate company that specializes in processing medical and recreational marijuana into premium-grade extracts.
Innovative Industrial Properties (IIP) Expands Partnership with PharmaCann with Acquisition and Long-Term Lease of PA Property
Innovative Industrial Properties (IIP) announced that it closed on the acquisition of a property in Scott Township, Pennsylvania, and entered into a long-term lease and development agreement with a subsidiary of PharmaCann for ~23,000 sq ft industrial facility and an ~31,000 sq ft greenhouse facility on the property.
Tidal to Continue as American MSO Following Proposed Acquisition of Red, White and Bloom
Tidal Royalty Inc. (CSE: RLTY.U), a leading provider of royalty financing to licensed U.S. cannabis operators, announced that it has entered into a binding LOI with MichiCann Medical Inc. (operating as Red White & Bloom). MichiCann holds an 8% senior secured convertible debenture and a put/call option to acquire all the issued and outstanding shares of its Michigan based investee, a private company incorporated under the laws of the State of Michigan. OpCo has been granted a Step 1 prequalification by the Medical Marihuana Licensing Board of the State of Michigan and has been awarded multiple municipal approvals for grower permits (cultivation), manufacturing (including extraction and derivative manufacturing) and provisioning centers (dispensaries).
Canopy Rivers Portfolio Company Terrascend Acquires Vertically-Integrated PA Cannabis Operator
Ilera is one of only five operators in the state of Pennsylvania to have been awarded a “super licence” to grow, process and sell cannabis. Through its state-of-the-art facility in Waterfall, Pennsylvania, Ilera has a genetic library of more than 170 cannabis strains, a modern greenhouse designed for optimal plant growth and minimal environmental impact, clean CO2 and ethanol extraction capabilities, and cutting-edge packaging technology. In addition to selling its products in its own dispensary, Ilera distributes its dried flower, concentrates, tinctures, and topicals to 50 of Pennsylvania’s 52 medical cannabis dispensaries. With this acquisition, TerrAscend plans on launching its own suite of brands in the Pennsylvania market, including its California-based Valhalla Confections and State Flower brands as well as its premium Canadian cannabis brand, Haven St.
Cronos Group Establishes New Growth Opportunity in U.S. with Acquisition of Hemp-Based Products Platform (Lord Jones)
Under the terms of the agreement, Cronos Group will acquire Redwood for approximately USD $300 million, net of Redwood’s estimated cash and debt and subject to a customary working capital adjustment as described in the agreement. USD $225 million of the total consideration (subject to the foregoing adjustments) will be paid in cash with the balance paid in newly issued Cronos Group common shares. Cronos Group will fund the cash portion of the transaction with cash on hand.
“Rob and Cindy have built a differentiated, best-in-class platform with hemp-based CBD formulations that stand for quality and consistency. Our goal is to preserve the integrity of all Rob and Cindy have created, while also learning from them and leveraging Cronos Group’s resources to capitalize on the significant demand for skincare and other consumer products derived from hemp. Leading the industry forward responsibly and being a part of the conversation with industry stakeholders remains a top priority for Cronos Group in this evolving area,” said Mike Gorenstein, Cronos Group’s Chairman, President and CEO.
Auxly Announces new CEO, Hugo Alves
Hugo is the Co-Founder and President of Auxly Cannabis Group, where he has overall responsibility for driving the Company’s strategic vision. A cannabis industry pioneer, Hugo has played a key role in shaping the regulated cannabis industry in Canada, including acting as counsel and advisor to many of the industry’s leading companies (including Tweed; Bedrocan; Canopy; Aurora; Supreme; Harvest One; Beleave; Origin House; Ample Organics; Trellis; Lift & Co), brands (including Tokyo Smoke; Leafs by Snoop; Feather), industry associations (Cannabis Counsel of Canada), patient access groups (including Canadians for Fair Access to Medical Marijuana; CanvasRx; Canadian Cannabis Clinics) and cannabis focused events and conferences (including Lift Conference; O'Cannabiz; Canadian Cannabis Business Conference).
LAVVAN Appoints Neil Closner as CEO
Neil Closner, formerly of MedReleaf Corp. (“MedReleaf”), has been appointed its new Chief Executive Officer. Joining Closner are several key members of MedReleaf’s former leadership team who were responsible for its groundbreaking achievements and success. Former LAVVAN CEO, Etan Bendheim, will become President of the company.
LAVVAN is focused on the production of high-quality and reliably sourced cannabinoids for a range of end markets. In collaboration with Amyris (NASDAQ:AMRS), LAVVAN is developing fermentation-based technology to unlock the full potential of the cannabinoid family of molecules. LAVVAN is backed by leaders across the cannabis, food and beverage, and pharmaceutical industries.
Khiron Boosts European Expansion With Key Hires
Experienced capital markets leader and cannabis industry executive Tejinder Virk is appointed President of Khiron Europe. Accomplished cannabis legal expert Franziska Katterbach joins Company as Chief Legal Officer for Khiron Europe.
Acreage Holdings Hires Steve Hardardt As Chief People Officer
Steve Hardardt as Executive Vice President, Chief People Officer and Administration (CPO). A human resources and operations executive with over 30 years of experience at such companies as Dow Jones, Inc., Frito-Lay, Inc., Monsanto, Inc., tw telecom and others, Mr. Hardardt will be responsible for leading Acreage’s Human Resources team to ensure the integration and implementation of HR strategy and programs with Acreage’s business objectives. He will report to Kevin Murphy, Chairman and CEO of Acreage.