🤝 Vireo $75M Financing and Acquires Four SSOs (NV, UT, MO, FL)
Chicago Atlantic Closes $96.5M Commitment to Cansortium. Weedmaps co-founders proposes take-private. Houseplant enters Delta-9 THC Beverages.
🌿 Industry
New York Cannabis Advisory Board (CAB) Recommends Temporary Limit on Retail Licenses. The CAB has recommended a temporary limit of 1,600 marijuana retail licenses statewide.
The suggestion aims to prevent market saturation and protect existing operators as the state's regulated cannabis market approaches $1 billion in annual sales
Data presented to the Cannabis Control Board (CCB) suggests that New York could potentially support up to 2,000 cannabis retail stores. However, the CAB believes that exceeding this number could lead to market compression, adversely affecting revenues and business sustainability
OCM did approve 68 new licenses last Tuesday. However, more than 3,300 license applications remain pending
Illinois Governor J.B. Pritzker Urges House to Approve New Hemp Regulations. Pritzker is advocating for updated hemp regulations to provide clearer guidelines.
House Bill 4293, the Hemp Consumer Products Act, would limit the sale of so-called "intoxicating hemp products" to state-licensed cannabis dispensaries
The proposal aims to address licensing, testing, and processing challenges, supporting farmers in navigating the growing hemp market
Pennsylvania Poised to Legalize Recreational Marijuana. Pennsylvania is on the verge of legalizing recreational marijuana, with increasing support from lawmakers and advocates.
The budget proposal projects $41M in tax revenue in the first year of legalization, potentially reaching nearly $300M annually as the industry matures
The General Assembly is increasingly focused on the economic benefits of legalization, drawing parallels to the prior legalization of casino gambling in 2004
Minnesota Cannabis Regulators Revise Licensing Process. Minnesota's Office of Cannabis Management (OCM) has revised its approach to issuing cannabis business licenses following a recent legal challenge.
OCM has decided to discontinue the "preapproval" process, which aimed to fast-track certain businesses for early market entry. This change comes after a judge halted a planned lottery intended to select initial license holders
The agency now plans to initiate a general licensing period in early 2025, allowing all applicants to apply simultaneously. This adjustment seeks to prevent further delays in launching the state's legal marijuana market
Lottery drawing determines Kentucky businesses selected as medical cannabis dispensaries. The Lottery hosted the second of two drawings which focused on Louisville, Lexington and surrounding counties.
Region 1 – Bluegrass (without Fayette)
Canntucky Ventures LLC – Frankfort, Franklin County
Garry Kort – Richmond, Madison County
Robert Hoogendyk – Richmond, Madison County
Thriveblue LLC – Georgetown, Scott County
Region 1 – Bluegrass (Fayette ONLY)
DHK KY LLC – Lexington, Fayette County
ZenLeaf, Inc. – Lexington, Fayette County
Region 2 – Kentuckiana (without Jefferson)
DNP-DH KY, LLC – Shepherdsville, Bullitt County
KY PRISTINE VISTAS LLC – Shepherdsville, Bullitt County
DJS KY LLC – Shelbyville, Shelby County
Pinnacle Path LLC – Shepherdsville, Bullitt County
Region 2 – Kentuckiana (Jefferson ONLY)
Chung Woo Kim, LLC – Louisville, Jefferson County
Upward Innovations – Louisville, Jefferson County
Connecticut dispensaries sold $17.6M of adult-use cannabis products in November, marking the second best month for sales behind August(~$18M)
Michigan on pace to eclipse $3.3B in 2024 sales
LeafLink List 2024, its Annual List of Top Cannabis Brands, Retailers, Products, Innovators and Community Favorites
💵 Deals
Vireo to acquire Proper Cannabis (Missouri), Deep Roots Harvest (Nevada), WholesomeCo Cannabis (Utah) and The Flowery (Florida). The merger agreements with Wholesome and Proper include the acquisition of Arches, a cutting-edge analytics and distribution technology platform joint venture between Wholesome and Proper. In addition, the Company signed a binding memorandum of understanding to acquire The Flowery (Florida). The combined entity (assuming Vireo completes all of the merger transactions) will span seven states, managing ~1,043,500 square feet of cultivation and manufacturing space across nine cultivation facilities, and operating 48 retail dispensaries. Supported by Chicago Atlantic, Vireo announced a $75M equity securities offering at $0.625 per Vireo subordinate voting share, with closing subject to customary approvals, valuing the total deals collectively at ~$397M. John Mazarakis, co-founder of Chicago Atlantic, has been appointed CEO and Co-Executive Chairman of Vireo.
Vireo estimates proforma revenue and EBITDA of the combined company of ~$394M and $94M, respectively, for calendar year 2024. Upon closing of the Merger Transactions, Vireo estimates the combined company will be well-positioned for further growth with a favorable balance sheet consisting of ~$99M of cash and $78M of net debt with an EBITDA leverage ratio of ~0.8x, which Vireo believes is one of the best net leverage ratios among its peer group.
Marc Hauser takes a closer look at the deal and says Vireo is both a buyer and a seller.
Chicago Atlantic Closes $96.5M Commitment to Cansortium. A total of $71.5M was funded at closing to refinance Cansortium’s existing senior credit facility, which was set to mature in 2025. An additional $25M in delayed draw term loans are in place to support upcoming real estate acquisitions and the funding of future construction expenditures.
Ascend Wellness repurchases for cancellation 11,000,000 shares of its Class A common stock. The Purchased Shares were repurchased by AWH at a significant discount to the closing price of the Company's shares on the CSE on December 17, 2024. The repurchase for cancellation was reviewed and unanimously approved by the Board of Directors of AWH and the Company has received consent by the holders of its existing term loan to repurchase up to $5M of shares.
Agrify Corporation Closes on Acquisition of Señorita. This acquisition of certain Canadian and U.S. hemp-derived assets from Double or Nothing LLC, the owner and creator of the Señorita HD9 beverages, as previously disclosed, was done in exchange for 530,000 shares of Agrify common stock or common stock equivalents. Following the transaction, Agrify has ~2.0M common shares outstanding and 7.6M warrants.
📄 Company Updates
Weedmaps shares surge after cannabis company proposes going private. In a letter sent to shareholders on Tuesday and obtained by MJBizDaily, Weedmaps’ co-founders and its largest shareholders, Doug Francis and Justin Hartfield, submitted a nonbinding cash bid to acquire all outstanding shares of common stock for $1.70 per share. The proposal represents a 39% premium to Tuesday’s market close, a 52% premium on implied enterprise value as of Tuesday, and a 65% premium to the volume-weighted average price in the past year. To finance the deal, Francis and Hartfield plan to roll their equity interest in the company – roughly 32% of common shares outstanding – as they attract proposals for debt and equity financing.
CAMP Cannabis x Cookies for Missouri. CAMP Cannabis and Cookies have announced an exciting partnership, bringing the brand’s celebrated cultivars to Missouri. With CAMP Cannabis serving as Cookies’ official cultivator in the state, Missouri consumers will now have access to premium Cookies flower, including both classic strains and innovative new genetics.
Vext Science has been granted a provisional license by the Ohio Division of Cannabis Control for a cannabis dispensary in Portsmouth, Ohio. The Company has also acquired real property associated with the Dispensary, bringing Vext's retail footprint in Ohio to five locations, including those from the previously announced Ohio Expansion Transaction.
🏬 Retail
Trulieve Opens Medical Cannabis Dispensary in Columbus, GA.
Housing Works Cannabis Co Expands to NoMad with Second Storefront. HWCC NoMad is launched through a partnership that builds on the successful model of the nonprofit's flagship dispensary located in Astor Place. The 3,500-square-foot store features 20-foot-high ceilings and a thoughtfully designed interior, incorporating Housing Works' signature rainbow tones and mission statement.
NOBO Launches Its First Illinois Dispensary in Lakemoor, IL. The company started in CO and also has operations in MI.
Planet 13 Opens Dispensary in Gulf Breeze, FL. This is the Company’s 29th dispensary in Florida and 33rd nationwide.
The Flowery opens in Brooklyn, NY.
🌱 Product
Houseplant enters Delta-9 THC. The drinks have a low, approachable dose of 3mg of THC per serving. The hemp-derived Delta-9 THC-infused sparkling water launches with four flavors: Black Cherry, Blackberry, Citrus and Pineapple.
FLUENT Debuts KNACK, Exclusively Available at Etain Health Dispensaries. The brand's name itself, KNACK, suggests a natural skill or talent, hinting at the expertise and care that goes into cultivating cannabis. The new product line offers a variety of whole flower options, ranging from 3.5 grams to 28 grams, allowing consumers to choose the quantity that best suits their consumption habits. For those who prefer a convenient and discreet option, KNACK also provides 1 gram prerolls, perfect for on-the-go enjoyment.
Alas Pa’ Volar, celebrates the Legacy of Frida Kahlo. Alas Pa’ Volar, a premium cannabis brand inspired by the life, passion, and legacy of Mexican icon Frida Kahlo, is the latest brand from Hierba Buena, a Latina-owned company based in LA. The Hierba Buena LA facility is equipped with seed-to-sale licensing and will be growing and cultivating exclusive strains for the Alas Pa’ Volar brand. Alas Pa’ Volar has partnered with top Latino-owned cannabis farms across California to create premium products.
nuEra Cannabis Launches RisEau THC Seltzer. RisEau started as a CBD beverage and will be available at all nuEra Cannabis dispensaries as well as select partner retailers throughout Illinois.
Tilray Unveils HERB & BLOOM. Herb & Bloom’s initial launch of beverages are infused with 5mg of hemp-derived Delta-9 THC featuring three re-imagined classic flavors: Margarita, Strawberry Daiquiri, and Peach Bellini.
Boston Beer Co. Launches Line of Non-Alcoholic Cannabis Cocktails, Emerald Hour, in Ontario. Emerald Hour blends fresh-frozen cannabis extracts with regionally sourced cocktail ingredients to create a truly amazing full-spectrum beverage experience. Each 355mL can contains 10mg of THC and is made without the use of chemical solvents, making Emerald Hour a perfect choice for consumers seeking a stronger, booze-free happy hour.
CanPay Launches Member Benefits Program, Partners with NuggMD. Under the partnership, CanPay's consumer users who live in Pennsylvania will receive a 50% discount on medical cannabis recommendations when they renew using NuggMD's platform. In addition to the Member Benefits program, the payment network launched a rewards program in 2023 that allows users to win CanPay Points, which can be used to discount future purchases. To date, consumers have received more than $700,000 in CanPay Points.
🧔 People
Tilray appoints Steven M. Cohen as Class III Board Member. Cohen's extensive background includes serving as Interim CEO of AYR since September 2024, and as an adjunct professor at New York Law School. His previous roles encompass Chief Administrative Officer and General Counsel at MacAndrews & Forbes Incorporated and board positions at Whole Earth Brands.
Flora Growth Appoints Sammy Dorf, Verano Co-Founder, as Executive Chairman. Dorf brings expertise and a track record of success to Flora. As Co-Founder and former Chief Growth Officer of Verano, he raised significant capital, securing more than 40 licenses across 14 states, and building operations in key markets such as Illinois, Maryland, Nevada, Pennsylvania, and Ohio.
🎙️ Interviews
21 ‘Lessons Learned’ From Cannabis CEOs | CBT
Executive Insight with RAW Rolling Papers CEO Josh Kesselman | mg
Josh Schiller Provides Update On David Boies Cannabis Lawsuit | TDR
Tilray CEO: Cannabis will get legalized during Trump administration | Fox Business