GTI CEO expects Americans will be able to purchase/consume cannabis products in lots of different places by 2025

PharmaCann — $85M, 12% Senior Secured Notes. High Tide — Acquires Daily High Club for $10M. California's market share of Live Resin is 61% (Headset).


PharmaCann — Completes $85M, 12% Senior Secured Notes Offering due June 30, 2025. The net proceeds from the offering were ~$79.9 million, after the original issue discount and other estimated offering expenses, and will be used for strategic growth opportunities and general corporate purposes.

High Tide — Continues to Expand U.S. E-Commerce Presence Through Acquisition of Daily High Club. Daily High Club's consumption accessories subscription box model has 15,000+ active monthly subscribers. The acquisition will allow High Tide to ensure this transaction will be immediately accretive through cross-selling opportunities, and offering subscription box memberships across its other e-commerce platforms, including and Total consideration to Daily High Club shareholders will be $10M and Daily High Club is expected to have approximately $800K of cash on closing. The consideration will be comprised of: (i) $6.75M in common shares of High Tide (based on 10-day VWAP) and (ii) $3.25M in cash. 


The CEOs of two of the biggest US cannabis companies break down the future of the industry to an exclusive audience of Wall Street’s most powerful investors. GTI CEO Ben Kovler and Trulieve CEO Kim Rivers spoke at JP Morgan’s Robin Hood Investors Conference, a yearly conference of investors, policymakers, and academics on June 16th. Trulieve’s Rivers said she expects the demand for legal cannabis to skyrocket, likening it to investing in alcohol before the end of prohibition, according to information provided by a person in attendance. She said that companies and investors have an opportunity to build the industry from the ground up. Kovler said that by 2025, he expects that Americans will be able to purchase and consume cannabis products in lots of different places — potentially in restaurants, bars, and grocery stores — rather than just dispensaries.

Top Vapor Pen Extraction Types and brands (CA, CO, NV, PA, OR, & WA).

California's market share of Live Resin is 61%. This is the ONLY market in this group that doesn't have their top Extraction Type as Distillate. Nevada has a 6% market share of Live Flower, and Pennsylvania has a 36% market share of CO2. When we look at brands, we notice that PurePenn's most popular Extraction Type is Distillate. Rythm added Live Resin sales last year, but CO2 is their most popular Extraction Type. And STIIIZY is growing across all of their Vapor Pen Extraction Types.

Ayr Wellness — Launch of Big Pete’s Cookies, Opens New Dispensary in Spring Hill. Big Pete’s is the first of many edibles brands Ayr will bring to the Florida market following the approval and opening of its industrial kitchen and manufacturing facility earlier this month. The Company also opened Liberty Health Sciences (Liberty) in Spring Hill, FL, the Company’s 36th open dispensary in the state. The Spring Hill dispensary is located at 2356 Commercial Way, Spring Hill, FL 34606, just off U.S. Route 19, a heavily trafficked route along the Florida Suncoast in Hernando County, population ~195,000. The 4,600 sq. ft. facility has more than 20 parking spaces and includes two private waiting areas and a consultation room. The dispensary sits in one of Spring Hill’s busiest shopping areas and is down the street from the area’s largest senior active living community.

Vibe Growth — California Cultivation Expansion Update. The Company has prioritized the expansion of its Sacramento cultivation capacity to meet the increased demand for Vibe products, implementing a proven vertical integration strategy to significantly enhance its brands' margin profile. Cultivation expansion remains a top growth priority, having significantly improved its growing efficiencies translating to increased harvest yields and additional grow cycles, and achieving a recent record of 37.7% THC content cannabis harvest. The Company has a strong balance sheet and healthy cash position of $13.4 million (end of Q1 2021), which Vibe intends to deploy to initiatives critical to increasing production and yield capacity. The Company anticipates the initiatives to cost ~$1.7 million for the Phase I expansion and $4.0 million for the Phase II expansion.

Phase I:

  • Expand canopy and increase Vibe's annual cannabis production to $8.3 million at the existing 2-acre Sacramento Cannabis Campus, including new vegetative grow, flowering and drying rooms. This is in addition to the Crescent City annualized forecast greenhouse revenues of $6.0 million;

  • The additional canopy square footage is to be achieved by upgrading the existing Vibe cultivation buildings and current cultivation operations to a two-tiered vertical growing system using advanced irrigation and nutrient delivery systems;

  • The additional canopy is expected to increase the yield of premium indoor flower and trim/biomass for use in Hype Cannabis Co. retail products.

Phase II:

  • The second phase of construction will upgrade electrical service and construction of a new building on land owned by Vibe;

  • Additional $10.9M in cultivation production to the additional $6.1M annual production from Phase I expansion;

  • Initial planning of the new building has commenced and the expansion will entail construction of a new building, site servicing, and fixturing of new vegetative grow, flowering & drying rooms.

Not all THC analysis is created equal. In Canada (much like the U.S.), many licensed producers have built their business models around high THC cannabis, for the simple reason that the system is skewed to reward elevated percentages. The result has been that some licensed providers may be shopping around for the labs that offer the best results. “It’s been one of the issues that labs in general run into,” says Luther Smallwood, Business Development Manager at Pathogenia Lab in Montreal. “A licensed provider will come to a lab, get a certain percentage, then shop to another lab and get another percentage.” This practice is perhaps understandable given the market incentives that favour higher THC. There are entire brands – and stock valuations – that are dependent on cannabis testing above 25% THC. “These labs could be using older standards or a process that delivers results with slightly more THC,” says Brian Coutts, Strategy and Business Development Manager (Food & Pharma) at A&L Laboratories in London, Ontario. “Many of them also don’t include moisture tests in their certificate of analysis, which in my view calls into question the legitimacy of their processes.” In Canada’s regulated market, dried cannabis is to be tested “as is”, which means it must represent what is sold to the consumer without additional processing. Labs are not supposed to report potency on a dry weight basis, which would result in higher reported THC and CBD percentages. Ideally, a Certificate of Analysis (CoA) should include the moisture content along with cannabinoid potency – but that isn’t always the case.

ManifestSeven — Strategic Review of Operations. The Company has initiated a strategic review process to explore, review and evaluate a broad range of potential alternatives for M7 focused on maximizing shareholder value. The Company is evaluating options around its strategic direction and drivers, operations and operating model, geographic footprint, value-driven elements of the supply chain, and resourcing.

FL Department of Health, Office of Medical Marijuana Use’s (OMMU) numbers for June 18 — June 24.


STIIIZY — Wildomar, CA (9th store).

A post shared by @stiiizy

COOKIES — Santa Ana, CA Store Opens.

A post shared by @berner415

Tetra Bio-Pharma — CFO Departs. Jean-François Boily has resigned as CFO of the Corporation effective July 16th, 2021 to pursue another business opportunity. Tetra has commenced an executive search for a new CFO.  The Company intends to use its internal finance team and to retain the services of a consultant to serve as CFO in order to ensure that all financial reporting obligations of the Company are fulfilled while the Company identifies a suitable replacement.


CannaCraft — Gem + Jane in California. Gem + Jane is a women-focused sparkling botanical beverage that blends simple ingredients with microdoses of rare cannabinoids, including THCV, Delta-8 THC and CBD. The beverage will be available exclusively at Sweet Flower dispensary locations throughout greater Los Angeles beginning June 17th.


cannabis & tech today — Cookies/Berner. Berner Shares how he Made COOKIES a Household Name. He trademarked “COOKIES SF” as a manufacturer of t-shirts and sweatshirts, which allowed him to hang a trademarked sign outside his dispensaries. Since cannabis is federally illegal, and you can’t process a trademark with the United States Patent and Trademark Office for a federally illegal substance, this was the only way to prevent others from using the name and profiting off his work. Forbes reported his Cookies on Melrose can earn upward of $450,000 in a single day.

High-Rise: Cannabis MSOs, Products & Market Analysis — The state of the cannabis capital markets, cannabis 2.0 and whats next for 3.0 w/ Todd Harrison (CB1Capital).

👋 Newsletter curated by Dai Truong.