The cannabis industry continues to see a lot of acquisition activity.
On Monday morning GrowGeneration (GRWG) said that it has purchased Michigan-based Superior Growers Supply. GrowGeneration said it will consolidate an estimated $4 million in revenue following the deal. SGS is a destination location with over 20,000 sq. foot of warehouse and retail space. SGS has retail stores in Lansing, South Lansing, and Livonia, with distribution facilities in the Lansing area.
GrowGeneration CEO Darren Lampert said, “SGS, one of the original hydroponic retailers, strongly positions GrowGen in the Michigan market and will add $4 Million to our top line revenue to our consolidated financial statements. Adding the team at SGS and its iconic stores is a major win for GrowGen’s portfolio. We have a strong acquisition pipeline and look forward to continuing our rapid expansion plans in 2018.”
Canopy Growth Corporation
Canopy Growth Corporation (TWMJF) said that it has signed definitive agreements to acquire the Czech Republic’s Annabis Medical. This company currently imports and distributes cannabis products pursuant to federal Czech licenses, with products for sale through pharmacy channels across the Czech Republic. Its founder and CEO, Dr. Robin Kazík, will lead the Czech subsidiary as part of the larger Canopy Growth family. The deal is valued at C$2.5 million.
The acquisition of Annabis Medical will build on Canopy Growth’s position in the European medical cannabis space and follows the recent agreement with Spain’s Alcaliber S.A. Additionally, Canopy Growth currently supplies the German market through its subsidiary, Spektrum Cannabis GmbH, and has formed a partnership, Spectrum Cannabis Denmark ApS, which is licensed to cultivate cannabis in a 40,000 square meter greenhouse production facility located in Odense, Denmark.
Pivot Pharmaceutical Inc.
Pivot Pharmaceuticals (PVOTF) announced that it has terminated the previously announced letter of intent that it had entered into for the acquisition of Agro-Biotech. According to the company statement, Pivot is currently reviewing the legal alternatives available to it to obtain recovery from Agro-Biotech of the amounts expended by it in the pursuit of this transaction, as well as further damages resulting from the non-completion of the transaction.
“Despite our extensive efforts, we have been unable to complete the acquisition of Agro-Biotech in accordance with the terms and conditions initially agreed upon by the parties. While we are extremely disappointed with this outcome, Pivot continues to pursue other value-enhancing opportunities for the Company and its shareholders,” said Patrick Frankham, CEO of Pivot.