🏃♀️Sha’Carri Richardson's suspension gets everyone talking about Cannabis
The Parent Company terminates previously announced $50M PIPE into Glass House. Columbia Care completes acquisition of CannAscend (OH 4 dispensaries).
Sha’Carri Richardson, a Track Sensation, Tests Positive for Cannabis. Richardson, 21, won the women’s 100-meter race at the U.S. track and field trials in Oregon last month, but her positive test automatically invalidated her result in that marquee event. The United States Anti-Doping Agency announced the positive test result Friday morning, and said Richardson had accepted a suspension of one month, starting on June 28. That could clear her in time to run in the 4x100 meter relay that takes place later in the Games — if she is named to the U.S. team. In an interview with NBC on Friday, Richardson blamed the positive test on her use of marijuana as a way to cope with the unexpected death of her biological mother while she was in Oregon for the Olympic trials. Richardson, who was raised by her grandmother, said she learned about the death from a reporter during an interview and called it triggering and “definitely nerve-shocking.” “It sent me into a state of emotional panic,” she said, adding, “I didn’t know how to control my emotions or deal with my emotions during that time.”
Why Cannabis: A Digital Summit Highlighting Y Combinator Cannabis Portfolio Companies. In the winter of 2015, Meadow was the first cannabis startup accepted into Y Combinator. Since then, YC has gone on to back a unique cohort of startups, each creating singular solutions for areas of this new industry like genetics, cultivation, distribution, retail, and building brands. Together the companies represent a unified front and a more complete picture of what this emerging space looks like. Stories and business insight shared from the founders of RevGenomics, Nabis, California Dreamin', Flower Company, Canix, and Confident Cannabis.
Deals / Company Updates
The Parent Company — Update on Potential Mercer Park Acquisition Corp. Private Placement. The previously announced conditional agreement to complete a $50M strategic investment in GH Group, Inc. (Glass House), through a private placement offering by Mercer Park Brand Acquisition Corp., has been terminated by the parties and the Strategic Investment will not be completed at this time. Mercer Park Brand Acquisition Corp., a special purpose acquisition company (SPAC), recently merged with Glass House. The Parent Company will consider future partnership opportunities as Glass House purchases and completes the retrofit of its greenhouse cultivation facility in southern California.
GH Group (OTCQX: MRCQF) traded down (7.4%) on the news. Mercer Park Brand Acquisition did not issue a press release, but it’s last press release mentioning cash balance on June 9, 2021 expected $195 million before expenses and transaction fees, which includes the previously announced private placement transactions totaling $135M, which includes The Parent Company’s $50M strategic investment. Without any additional PIPE investments, this would bring the expected total to ~$85M before expenses and fees.
Columbia Care — Completes Acquisition of CannAscend, Owner and Operator of Four Dispensaries Across Ohio. Ohio-based CannAscend, is the owner and operator of four dispensaries across the state located in Dayton, Logan, Marietta and Monroe, as of July 1st. The purchase option agreement was first announced in 2018. Combined with its existing facilities in Mt. Orab (Level 1 cultivation, awarded in 2019 and acquired in 2021), Columbus (manufacturing, acquired in 2021), and Warren (recently acquired gLeaf dispensary), the incorporation of CannAscend enhances Columbia Care’s vertically integrated operations in the state and brings Columbia Care to the dispensary legal limit as one of the most scaled operators in Ohio. In October 2018, Columbia Care and CannAscend entered into a Membership Interest Purchase Option Agreement. Under the terms of the agreement, Columbia Care purchased an exclusive option to acquire all outstanding membership interests of the dispensary operations on the first anniversary of the date upon which all four of the dispensaries have been issued certificates of operation under Ohio’s Medical Marijuana Control Program. All four dispensaries were issued certificates of operation under Ohio’s Medical Marijuana Control Program in 4Q 2019. The balance of total transaction price of $14.2M will be paid from funds held in escrow, which will not affect Columbia Care’s cash position. As a result of the acquisition, Columbia Care will consolidate CannAscend from July 1 and will no longer break out Combined and Reported financial results.
Fire & Flower — Completes Exercise of A-3 Warrants by Alimentation Couche-Tard. Fire & Flower has completed the previously announced exercise of A-3 warrants by 2707031 Ontario Inc. (2707), a wholly-owned indirect subsidiary of Alimentation Couche-Tard (ACT), the owners of Circle K. The Company was granted an advanced ruling certificate from the Commissioner of Competition (Competition Act Clearance) which allows for the gross proceeds of ~$9,770,374 to be released to Fire & Flower while 10,505,779 common shares of Fire & Flower, exercised at $0.93 per share, have been issued to 2707. Following the exercise of the A-3 warrants, ACT's ownership stake in Fire and Flower is now ~22.4%. 2707 hold $2,407,415 principal amount of 8.0% convertible debentures, and share purchase warrants which, together with certain participation and top-up rights pursuant to an Amended and Restated Investor Rights Agreement dated September 16, 2020, if exercised in full, would entitle ACT to aggregate direct and indirect ownership of 50.1% of the issued and outstanding common shares of Fire & Flower on a fully diluted basis.
Hydrofarm — Completes Acquisition of Aurora Innovations and its Organic Nutrients and Grow Media Operations. The announcement follows Hydrofarm’s recent acquisitions of hydroponic nutrient brands HEAVY 16, House & Garden, and Mad Farmer. The company was already recently added to the Russell 2000 Index.
TerrAscend — Results of Annual General Meeting. The nominees set forth in the Company's management information circular dated May 21, 2021, Mr. Craig Collard, Mr. Richard Mavrinac, Ms. Lisa Swartzman, Mr. Ed Schutter and Mr. Jason Wild, were elected as directors of the Company. In addition, shareholders approved the re-appointment of MNP LLP as the auditor of the Company and the authorization of the Company's board of directors to fix the auditor's remuneration.