🤝 Organigram Acquires Motif for $90M
Canopy USA completes acquisition of Acreage. Poseidon invests in two NJ Dispensaries. Good Day Farm opens ‘flagship’ medical cannabis dispensary in Lake Charles, LA. Snoop Dogg launches SWED.com
🌿 Industry
Judge Grants Treez Favorable Judgement in Cannabis-Related Visa Lawsuit Against Feds. A federal judge ruled that the Department of Homeland Security wrongfully denied an amended H-1B visa petition to one of the company’s workers.
Dutchie supported over 6,500 legal cannabis dispensaries on Green Wednesday. Average dispensary sales increased 91% when compared to a typical Wednesday, and the average basket increased 9% to $70.80. In New York, dispensaries reported even higher averages, with adult-use baskets reaching $83.37 and medical baskets reaching $106.41. This was driven in part by increased Pay by Bank usage, a Dutchie payment product powered by Plaid, which increased the basket size on Green Wednesday by 32% compared to cash. While this was a huge Green Wednesday, 4/20 is still the largest day of the year, with 17% more 4/20 sales this year than Green Wednesday.
The Emjays International Cannabis Awards 2024 winners. Nominees for each of the 26 categories were based on voting by the public, while a panel of industry leaders helped select the winners.
MGO Cannabis 50. The 6th Annual Impact Review is MGO’s annual list of individuals, organizations, entertainers, and others who made an impact on the cannabis and hemp industries in the past year. Honorees include Good Day Farm, Wyld, Belushi’s Farm, Death Row Cannabis, Happy Munkey and Pure Beauty.
NFL Adopts New Marijuana Policy For Players, Reducing Fines And Increasing THC Limit For Drug Tests. About four years after NFL ended the practice of suspending players over cannabis or other drugs as part of a collective bargaining agreement, the league has again revised its Substances of Abuse Policy and Performance Enhancing Substances Policy as the state-level legalization movement continues to expand. The THC limit constituting a positive drug test will increase from 150 ng/ml to 350 ng/ml.
Health Department approves Oahu’s 10th medical cannabis dispensary. It is Oahu’s 10th retail cannabis dispensary and the state’s 25th retail cannabis dispensary. As of Monday, DOH said there are 30,035 in-state patients and 2,609 caregivers registered to purchase medical cannabis statewide.
Flora Farms took more than 3,000 Zen gummies off the shelves after state regulators received a complaint the food-coloring ingredient wasn’t listed on the label.
A 116-acre ranch in California with a gold-bearing stream running through it and a thriving cannabis farming operation, too, is now available for $7.2 million.
💵 Deals
Organigram Acquires Motif, Becoming Canada’s Largest Cannabis Company by Market Share. Organigram will acquire 100% of the issued and outstanding shares of Motif for upfront consideration of $90M, consisting of $50M cash and $40M stock based on the 30 day trading VWAP of $2.3210 on the TSX. In addition, Motif shareholders will be entitled to receive additional contingent consideration of $10M payable in stock, conditional on Organigram achieving a price per share exceeding $3.2203 per share, based on the rolling 30-trading day VWAP on the TSX, within 12 months of the date of the transaction. The Contingent Consideration shall be priced at of $3.22031 per share. Motif’s Boxhot brand is Canada’s No. 1-selling brand in the vape category. Other brands include Boondocks, Debunk, Floe State and Rizzlers. The deal is financially accretive acquisition with Motif generating ~$86M of LTM net revenue and adjusted EBITDA of $4.7M.
Canopy Growth has completed its acquisition of Acreage. Canopy USA now owns 100% of the issued and outstanding shares of Acreage. The completed acquisitions of Acreage and Wana, and ~77% of the shares of Jetty, are expected to enable Canopy USA to realize anticipated financial benefits, including revenue growth and cost synergies, marketing efficiencies, and joint sales advantages across key cannabis product categories such as vapes, edibles, and flower.
Poseidon Completes Two New Jersey Cannabis Dispensary Investments. Dogwood Green and BLKBRN are led by experienced cannabis professionals and uniquely positioned within New Jersey to reach patients and adult-use consumers when they open in 2025.
StrainBrain acquired by Powr Plant. StrainBrain was an AI Budtender that helps shoppers find the best cannabis product for them, increasing average cart sizes by 23%. At the time of the deal, CEO, Andrew Leber, believes they made the most active recommendations of any competitor. The deal is a part of a larger vision of CX in cannabis by Powr Plant that focuses on active recommendation vs passive personalization experience offered by competitors.
📄 Company Updates
Snoop Dogg Launches Direct-to-Consumer Cannabis Lifestyle Marketplace. SWED.com will feature a curated selection of authentic Snoop Dogg and Death Row Records branded hemp-derived cannabis products, smoking accessories, premium tobacco cigars and wraps, as well as limited-edition lifestyle merchandise available to consumers nationwide. SWED.com will also serve as a directory for S.W.E.D.'s physical dispensaries, providing information for the Los Angeles and Amsterdam store, as well as other soon-to-be launched locations.
iAnthus to Settle Ninth Square Capital Litigation with All-Stock Transaction. Ninth Square served a statement of claim on August 8, 2019 against iAnthus, MPX ULC and MPXI before the Ontario Superior Court of Justice, seeking damages for alleged oppressive conduct relating to an arrangement between iAnthus and MPX Bioceutical Corporation, the predecessor of MPX ULC. On December 3, 2024, iAnthus entered into a settlement agreement with Ninth Square and the other parties to the litigation, pursuant to which the parties thereto agreed to settle the Consolidated Claims on terms that provide for, among other things, the issuance of 5,000,000 common shares of iAnthus to Ninth Square, at a deemed price of C$0.01 per Share.
PharmaCann to shutter LivWell cultivation facility in Michigan (paywalled).
STIIZY Vape Pods Recalled in California. Regulators issued a voluntary recall for four batches of the cannabis company’s products in connection to a banned pesticide.
CBE Press Will Wind Down Operations. For the better part of the last 11 years, CBE Press LLC (AKA Cannabis Business Executive or simply CBE) has published nearly 12,000 articles, well over a thousand newsletters, multiple ranking lists, and produced numerous webcasts. CBE has also carried a few million dollars of advertising and sponsored messages. At CBE’s peak, it delivered content to weekly newsletters to over 55,000 subscribers and thousands of other interested readers through our website and social media channels. CBE Press is taking a pause and will continue to the publish the cannabisbusinessexecutive.com website through January as they wind down the operation.
Cansortium Q3 2024. Revenue improved 3.5% YoY to $26.1M, $7.5M in Adjusted EBITDA, 29% margin, $9.6M in Positive Cash Flow from Operations. RIV Capital Q3 2024 Revenue of $4.9M, ($71.7M) EBITDA, ($63.4M) Net Loss. $50.7M of cash.
🏬 Retail
Good Day Farm opens ‘flagship’ medical cannabis dispensary in Lake Charles, LA. The company says the 10,000-square-foot medical cannabis dispensary is the largest such facility in the South.
Shangri-La dispensary opens on Connecticut Ave, with drive-thru in Norwalk, CT. This is the company’s second retail location in Norwalk.
Dr. Greenthumb's opens Santa Maria, CA dispensary.
Trulieve opens Dispensary in Tampa, Florida
🌱 Product
The Cannabist Company x Flower by Edie Parker Launch Partnership in Virginia and Colorado. The Cannabist Company launched Flower by Edie Parker’s premium products in the markets with the Brand’s best-selling ‘Petal Puffer’ all-in-one vape and vape cartridges. The Company will be launching Flower by Edie Parker’s cannabis infused edibles line, ‘Seedies’ in Colorado and New York, with additional markets launching in Q1 2025. The Cannabist Company plans to bring Flower by Edie Parker to Delaware in 2025.
Klutch Cannabis x Cookies for Ohio. Starting in January 2025, Klutch Cannabis dispensaries will offer Cookies’ celebrated flower and vape products, with edibles and concentrates slated to follow later in the year.
Grön x Curaleaf Launch Exclusive Prickly Pear Flavor Offerings in Arizona. This new iconic flavor, inspired by the Southwest’s vibrant desert landscape, is a hybrid and will be available in two product options: the Prickly Pear MEGA, available in a 10-pack, and the Prickly Pear Sugar-Coated Pearls. Available exclusively at 16 Curaleaf locations across Arizona.
Würk Enhances Client Success With New Analytics Tool. Würk simplifies the complex, fast-moving cannabis workplace with a comprehensive, analytics-based HCM solution that provides decision-makers with actionable insights. Users can view contextualized data, including recruiting, onboarding, compensation, and workforce turnover costs. The analytics-based solution also offers in-depth information regarding each company's workforce segmented by department and EEO classifications, providing employers with the data needed to maintain a fair and equitable work environment.
CCELL debuted revolutionary CCELL 3.0 technology at MJBizCon in Las Vegas. CCELL 3.0 is the world's first biomimetic heating solution designed to improve terpene preservation for a wider range of flavor capabilities and reduce leaks and clogs while providing maximum oil utilization through its postless tank design. CCELL 3.0 technology will be introduced in the new postless GemBox, GemBar, and MixJoy All-In-One devices as well as the Vita and Diama 1-2ml 510 cartridges, built for all oil types at higher capacities. CCELL 3.0 and correlating devices will be available for wholesale beginning in December.
🧔 People
TerrAscend Appoints Lynn K. Gefen to Expanded Role of Chief People Officer. Prior to her roles at TerrAscend, Gefen served as Deputy General Counsel, Chief Risk and Compliance Officer, and Assistant Secretary at HomeServe, a publicly traded, independent provider of home repair service solutions. In addition to her roles at HomeServe, Gefen has worked for Diageo North America, a global leader in beverage alcohol, focusing on regulatory matters, privacy, and compliance, and for Citrix Systems, a multinational cloud computing and virtualization technology company, where she led a team with global responsibility for corporate and compliance matters including securities, commercial transactions, litigation, governance, and employment.
🎙️ Interviews
Making cannabis fun again! | High Rise
Sun Theory Puts the Sum of Its Parts to Work | CBE
Deep Roots Harvest Doubles Down on Nevada | CBE
Cause for concern in cannabis with a few rays of light | Cannabis Investing Podcast