Dai Truong's Cannabis Newsletter - Issue #27
The three final adult-use licenses are: a retail license to be co-located with the current medical retail location in Oxford, and two licenses for cultivation and manufacturing to be co-located with the current medical cultivation and manufacturing facility in Webster. The provisional licenses are for a new retail location in Provincetown, which is anticipated to be the first location on upper Cape Cod, and a new retail location in Ware. Curaleaf currently has medical retail locations in Hanover and Oxford.
Rise™ currently has locations in Erie, Steelton, Carlisle, York, Latrobe and Mechanicsburg. GTI entered the Pennsylvania market in 2017 and has a manufacturing facility in Danville where the company produces its branded products including Rythm.
The Company has 32 total stores across the country.
Coastal built its first state-of-the-art cannabis dispensary opening today in a 6,000 square foot facility with the sleek and active feel of a luxury retail store. Coastal currently employs 50 team members in Santa Barbara with well-paying jobs and benefits. The company plans to grow to over 100 employees in the region by the end of the year. Coastal is currently building their delivery, distribution, and manufacturing hub in downtown Santa Barbara, along with a delivery location in San Luis Obispo and a retail dispensary with delivery in Lompoc.
The audit, conducted by the United Cannabis Business Assn., found approximately 2,835 unlicensed dispensaries and delivery services operating in California. By comparison, only 873 cannabis sellers in the state are licensed, according to the Bureau of Cannabis Control.
Medical cannabis sales stall in Canada after adult-use legalization; affordability, access also considered factors
Monthly sales of medical cannabis in Canada dropped almost 25% in June from October 2018 - when adult use was legalized - according to the latest data from Health Canada.
One minor cannabinoid that appears to be gaining attention is tetrahydrocannabivarin (THCV). THCV is an analog of THC, but produces a completely different buzz than its intoxicating counterpart. It is also found in trace amounts in marijuana, so the effects are likely attributed to more prominent cannabinoids.
While more research is done for potential health benefits of this trace cannabinoid, THCV-focused products are starting to emerge on the cannabis market.
Jay and Diane Czarkowski of Canna Advisors describe what a cannabis entrepreneur must look for when navigating through the industry.
Canada’s largest medical cannabis company by revenue is planning to make a “significant” splash in the near future on another point of entry in the United States.
The Ontario Cannabis Retail Corporation, a crown corporation that operates the Ontario Cannabis Store’s online retail business and sells wholesale cannabis to the province’s private retail stores, generated $64 million in the fiscal 2018-2019 year.
Chicago-based Cresco Labs said it is buying Tryke, a vertically integrated private cannabis company active in Nevada and Arizona, for $282.5M.
$282.5M includes $55M in cash and the balance in stock
Tryke posted revenue of $70.4M in Fiscal 2018
Tryke owns the Reef Dispensary brand, which includes six stores in Las Vegas and Phoenix.
There also are cultivation facilities in the deal in both Nevada and Arizona.
NewLake Capital Partners, Inc. announced today that it closed a private placement of $85.5M in Preferred Stock, with the first draw of capital having occurred August 28, 2019. NewLake is a newly formed, internally managed, Maryland corporation focused on acquiring specialized industrial and retail properties to be leased to state-licensed cannabis operators. With one of the largest, non-captive, initial capital raises in the cannabis real estate industry, NewLake is focused on serving a diverse group of high-quality cannabis companies.
Founded in 2011 by William Leslie and Miles McCabe, Red Ace Organics offers a range of organic beverages and powders spanning the lifestyle segment, with its proprietary formulations of Beet Performance, Beets & Turmeric and Beets & Greens. With more than 1,400 points of distribution, including Whole Foods Markets (WFM), Sprouts Farmers Markets and Amazon, Red Ace is used by athletes, professionals and weekend warriors around the world.
Harvest Health enters into Management Services Agreement with Your Farmacy, Advancing Maryland Footprint
Your Farmacy, that will give Harvest the right to operate the medical retailer. The 3,120 square-foot medical dispensary in Lutherville-Timonium, MD will be transitioned to operate as a Harvest House of Cannabis store, known for best-in-class operations and industry-setting standards for cannabis products with a focus on bettering the community.
These brothers just raised $15M for their startup, Dutchie, a kind of Shopify for cannabis dispensaries
Dutchie says it’s now being used by 450 dispensaries across 18 states and that it’s seeing $140 million in gross merchandise volume. The company also just locked down $15 million in Series A funding led by Gron Ventures, a new cannabis-focused venture fund with at least $117 million to invest. Other participants in the round include earlier backers Casa Verde Capital, Thirty Five Ventures (founded by NBA star Kevin Durant and sports agent Rich Kleiman), Sinai Ventures and individual investors, including Shutterstock founder and CEO Jon Oringer.
Lift & Co. (TSXV: LIFT) (OTCQB: LFCOF) announced that it has completed a non-brokered private placement offering of 10.6% senior secured convertible debentures of the Company due September 10, 2020 in the aggregate principal amount of $3,500,000 and 2,713,178 common share purchase warrants of the Company for aggregate gross proceeds of $3.5M.
Former Patrón Spirits and Grey Goose Global Chief Marketing Officer Lee Applbaum Joins Surterra Wellness as New CMO
Former Coca-Cola international marketer Philippa Classey is also joining Surterra as its first managing director for Europe.
With the $160M commitment, Bloomberg Philanthropies and its partners will look to achieve five main goals: the removal of flavored e-cigarettes from the market; ensure that e-cigarette products are reviewed by the FDA before they reach the market; stop companies from marketing to kids; halt online sales until a satisfactory method of age verification can be developed; and track underage e-cigarette usage.
Nabis Holdings Inc. (CSE:NAB) (OTC: NABIF), a leading Canadian investment company with specialty investments in assets across multiple divisions of the cannabis sector, today announced the launch of BIS (Be In Synergy), its new exclusive brand of cannabidiol (“CBD”) product lines. BIS was created with the mission to develop innovative, high quality, efficient and safe consumer products through unique formulations and technologies that optimize the use and effects of cannabis. The BIS inaugural line of products is anticipated to be available for sale in late 2019.
Ralph Morgan, former co-founder of Organa Brands which was recently acquired by SLANG Worldwide prior to SLANG’s initial public offering on the Canadian Securities Exchange valued at $500M Canadian, today announced the formation of his new company Collective Hemp Brands.