eResearch | Horizons Marijuana Life Sciences ETF (TSX: HMMJ), the first cannabis ETF in the world, has fallen more than 25% in share price since March 2019, but in contrast, the cannabis market has continued to be a highlight for numerous catalysts as companies announce acquisitions, financings, and partnerships. The following are some corporate activities in the Cannabis industry over the past month.
Mergers & Acquisitions
July 17: Curaleaf Holdings Inc. (OTC: CURLF; CSE: CURA), an integrated cannabis operator, announced the acquisition of GR Companies, Inc., the largest private integrated multi-state cannabis operator, for US$875 million.
July 17: The Supreme Cannabis Company (OTC: SPRWF; TSX: FIRE), a global cannabis distributor best known for their 7Acres brand, announced acquisition of Canadian licensed producer Truverra, for US$20 million in stocks.
July 11: The Supreme Cannabis Company (OTC: SPRWF; TSX: FIRE) closed its acquisition on Blissco, a premium cannabis wellness and extraction company, for US48 million in an all-stock deal.
July 9: Green Growth Brands Inc. (OTC: GGBXF; CSE: GGB), a Toronto-based, U.S. cannabis operator announced acquisition of cannabis extract company, Moxie, for US$310 million.
June 25: Canopy Growth Corp. (NYSE: CGC; TSX: WEED), a Canadian multi-national cannabis operator, announced the acquisition of KeyLeaf Life Science to support their long-term strategy in extraction capacity needs.
June 17: Jushi Holdings Inc. (OTC: JSHHF) a U.S. cannabis operator, announced acquisition of all membership interests of medical cannabis permit holders from Pennsylvania Department of Health, for US$63 million.
June 17: Halo Labs Inc. (OTC: AGEEF), a Toronto-based, U.S. cannabis extraction company, announced acquisition of South African cannabis producer, Bophelo Bioscience & Wellness Ltd, for US$18.9 million.
June 10: Jushi Holdings Inc. (OTC: JSHHF) announced acquisition of intellectual property including cannabis brands and trademarks from The Clinic ConsultingServicesTM for US$10 million.
June 6: Medmen Enterprises Inc. (OTC: MMNFF; CSE: MMEN), a U.S. cannabis operator, announced acquisition of MattnJeremy Inc., a cannabis retailer in California, for US$13 million.
June 6: PharmaCieloLtd (OTC: PHCEF; TSXV: PCLO), a Canadian cannabis oil company, announced acquisition of international cannabis company Cresco Pharma for A$122 million.
June 4: Green Thumbs Industries Inc. (OTC: GTBIF; CSE: GTII), a U.S. cannabis operator, announced acquisition of Spring Oaks Greenhouses Inc., a medical cannabis producer, for US$55 million.
Financing
July 18: Neptune Wellness Solutions (NASDAQ: NEPT; TSX: NEPT), a Quebec-based, U.S. cannabis extraction company, closed US$41 million placement to facilitate their acquisition of SugarLeaf Labs LLC.
June 18: THC BioMed Intl Ltd. (OTC: THCBF; CSE: THC), a Canadian cannabis producer, announced closing of $200 thousand private debt commitment to be used for expansion of facilities.
July 17: Delta 9 Cannabis Inc. (OTC: BRNDF; TSXV: NINE), a Canadian cannabis produer, announced the closing of a US$11.8 million public offering of debenture units, to be used towards expansion of production capacity.
July 10: Medmen Enterprises Inc. (OTC: MMNFF; CSE: MMEN), a U.S. cannabis retailer, announced an additional US$30 million funding to their initial US$250 million from Gotham Green Partners, planned to be used towards opening new retail locations and expanding its brand.
July 2: Flower One Holdings Inc. (OTC: FLOOF; CSE: FONE), a Toronto-based, U.S. cannabis operator known as Nevada’s largest producer announced a US$20 million financing at LIBOR plus 8%.
June 27: Aleafia Health Inc. (OTC: ALEAF; TSX: ALEF), a Canadian cannabis producer, announced a completion of US$40 million in convertible note financing.
June 27: Surterra Wellness Partners, a U.S. cannabis oil and vaporizer company, announced US$100 million in funding to accelerate growth in U.S. and international cannabis operations.
June 26: Fire & Flower Holdings Corp. (OTC: FFLWF; TSXV: FAF), a Canadian cannabis retailer, announced a US$27 million in financing to use towards retail store build-outs.
June 17: The Flowr Corp. (OTC: FLWPFTSXV: FLWR), a Canadian cannabis producer, announced US$50 million in funding to be used for development of facilities in Kelowna.
Partnerships
July 11: Green Growth Brands Inc. (OTC: GGBXF; CSE: GGB), a Toronto-based, U.S. cannabis producer, announced a partnership and purchase order with American Eagle Outfitters, for sale of hemp derived CBD products in almost 500 stores.
July 11: iAnthus Capital Holdings Inc. (OTC: ITHUF; CSE: IAN), a U.S. cannabis operator, announced partnership with Dillard’s Department Store, to make products available throughout Dillard’s 265 department stores in 29 states.
June 27: Green Growth Brands Inc. (OTC: GGBXF; CSE: GGB) a Toronto-based, announced expansion to their deal with Abercrombie & Fitch to expand their CBD products to 160 stores from 10 trial stores.
June 19: CannTrust Holdings (NYSE: CTST; TSX: TRST), a Canadian cannabis producer, announced a joint venture with Elk Grove Farming Company, a U.S. farming company that will provide access to 3000 acres of land for hemp production.
June 18: Sunterra Wellness partners, announced a partnership with Intrexon Corporation for a US$100 million deal that will be used to advance Sunterra’s production capacity.
What is driving this activity?
- Cannabis companies are betting on U.S. legalization soon and want to lock-down access to the key U.S. market once cannabis becomes legal under U.S. federal law.
- Cannabis companies are looking to capture market share and for any way to reduce costs through economies of scale.
- Cannabis companies want to be vertically integrated and horizontally diversified across all segments in the value chain, from facilities to cannabis breeding, cannabis and hemp production, CBD and THC well established brands, and wholesale & retail distribution.
And we believe that there is more activity to come…
