Financial Archives - Green Market Report

StaffMay 17, 2022
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Green Goddess Supply, a “cultivation to consumption” cannabis technology lifestyle brand offering a line of high-quality products to grow, store, prep and consume hemp flower and cannabis products has launched a crowdfunding campaign. The company was initially funded by management and “friends and family.” With this offering, the company will gain access to over 750,000 investors via the StartEngine Regulation CF platform, to showcase its patented cannabis home grow system.

“We are incredibly excited to launch this initiative,” said Founder and CEO, Eric Robichaud. He continued, “What’s impressive to me is management’s ability to build, ship and deliver almost 600 systems during the global pandemic that has been riddled with supply chain obstacles and seemingly never ending “red tape” including, but not limited to, price gouging for Ocean Freight, new hidden costs such as “port congestion,” scarce and expensive domestic LTL shipping, supply chain and materials delays, and more.”  The company has overcome these obstacles and is expanding The Armoire product line with new, higher-margin models ready for the 2022 holiday selling season. This capital raise will enable the company to continue to expand the product line, and scale sales and marketing.

Green Goddess Supply has built a catalog of cannabis-centric accessory products including storage boxes, rolling trays, grinders, pipes and more. The crown jewel in its product line is the critically acclaimed, award-winning personal home grow system sold and marketed as “The Armoire.” Now, with a U.S. patent in hand and rave reviews, the company believes The Armoire is ready for prime time.

Robichaud points out that The Armoire isn’t “just some idea” – it’s gone through R&D, prototyping, pre-production and into production. The company has built-out shipping and warehousing capabilities, internal and external systems and processes, and more. “It’s amazing to see the results of these Armoire units successfully deployed in homes across the country, which have been able to really help to change and improve lives! We’re now ready to scale up and bring it to the masses,” he said.

“We are part of a larger, DISRUPTIVE revolution: investing in private companies in red-hot sectors before they go public or are sold, said Vincent Bitetti, inventor of The Armoire and Chief Cannabis Officer at Green Goddess Supply.  “Under Reg CF, companies apply via a highly-regulated system, akin to going public. It all takes place through an SEC-registered intermediary, either a broker-dealer or a funding portal such as StartEngine.com.” These rules are relatively new—the SEC approved Reg CF in 2017. For the first time ever, this enables eligible companies to offer and sell securities through crowdfunding. And similarly, it allows individual investors to access pre-IPO businesses that were previously only accessible to accredited investors – typically via private placements as companies prepare to go public.

 


StaffMay 16, 2022
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Arcview Capital today announced the launch of its equity crowdfunding platform which is expected to go live by the end of the second quarter. The platform is currently accepting applications and will focus on cannabis and other adaptogenic plant-based businesses like psychedelic plant medicines.

“We’re excited to continue to be a thought leader on investing and capital raising in this industry. Our goal is always to provide new services that best support the business of cannabis,” says The Arcview Group’s CEO Jeffrey Finkle. “Today, Arcview Capital expands the power of our ecosystem with this new financial vehicle, benefiting companies seeking private investments in an environment where risk needs navigation but the opportunity is nearly limitless.”

With the addition of this full-service crowdfunding platform, Arcview Capital said it continues to expand upon its strategic partnership with trusted industry leader, The Arcview Group, to make investing in cannabis and other plant medicines uniquely simple.

“This is a full-service crowdfunding platform that is focused primarily on the cannabis industry. We are, to our knowledge, the first broker-dealer to offer such a focused crowdfunding platform in cannabis,” adds Arcview Capital CEO Philip Rothman. “Since its official introduction as a financial vehicle in 2015, crowdfunding has become a major force in raising funds, surpassing $2.5 billion in equity raised in the United States. It’s ideal for the cannabis space as crowdfunding enables both small and large investors to buy an interest in a company and support that company as it grows. With this launch, we further expand the capabilities of the Arcview ecosystem to support our clients where they need it most.”

Arcview Group was created in 2010 by Troy Dayton and Steve DeAngelo. It raised millions of dollars for cannabis companies through its investor network. Back in 2010, cannabis companies mostly had to turn to private money for funding and investments and Arcview was the leader in the space. Dayton had been the long-time CEO but he was replaced with Kim Kovacs, who has since moved on to Santa Fe Farms. Finkle was named CEO in June of last year. Finkle led Arcview Ventures as CEO and co-founded The Arcview Collective Fund in 2018.

The company has experienced numerous changes and now the Arcview Group is a parent to several segments, each with its own focus. Arcview Capital, Arcview Consulting, Arcview Events, Arcview Ventures, and Arcview Marketing Services.


Debra BorchardtApril 11, 2022
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Pelorus Equity Group completed the second and final tranche of its previously announced $77.3M non-dilutive real estate debt financing with Harborside Inc. (CSE: HBOR) (OTCQX: HBORF). The initial funding included three individual loans to Harborside, Urbn Leaf Holdings Inc., and Loudpack JV Corporation with a second tranche made available upon the final closing of the three-way merger.  The proceeds were used primarily to retire certain existing loans and provide additional working capital.

Harborside’s Merger

Harborside had previously announced the completion of its acquisition of LPF JV Corporation, a leading manufacturer, cultivator, and distributor of award-winning cannabis brands in California. The acquisition of Loudpack follows Harborside’s acquisition of UL Holdings Inc. (“Urbn Leaf”) completed on March 1, 2022 and Harborside’s acquisition of Sublimation Inc. (“Sublime”) completed on July 2, 2021. Following the completion of the acquisitions, the Company plans to be renamed StateHouse Holdings Inc. The second tranche of the Rollup Financing was funded upon completion of the StateHouse Holdings Transaction.
“Pelorus has been a tremendous financial partner as we worked to reach this important milestone,” said Ed Schmults, CEO and a director of Harborside. “Their ability to provide access to customized financing, as well as considerable sector knowledge and a deep network of experts is unparalleled. Their solutions proved to us why so many of the top players in the industry are turning to them for cannabis finance solutions.”

“At such a pivotal time in the cannabis market’s evolution, we are proud to bring our strategic partners customized lending solutions to meet their goals,” said Dan Leimel, CEO of Pelorus Equity Group and Manager of the Pelorus Fund. “We were incredibly pleased to complete this funding with Harborside, Urbn Leaf and Loudpack to support their initiatives to transform the California market landscape, and we look forward to a strong partnership with them as they grow.”

Loudpack cannabis

Financing Rates

The Rollup Financing contains a nominal interest rate of 10.25%, along with specified origination, closing, and other transaction fees, and will be secured by certain real estate assets and cannabis licenses of Harborside, Urbn Leaf, and Loudpack. The Rollup Financing is subject to debt-service ratio requirements, interest reserves, certain cross-corporate guarantees and defaults, subordination agreements and inter-creditor agreements, along with a general corporate guarantee from Harborside.

Mr. Leimel added, “Our ability to structure funding solutions on complex transactions sets Pelorus apart in the cannabis lending sector. As the industry grows and more of the top cannabis players are in need of funding to support their M&A and expansion plans, we are ready to bring our asset-based lending solutions to those looking to quickly scale their operations in some of the world’s most exciting cannabis markets.”

 


Debra BorchardtApril 6, 2022
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The debt troubles facing Parallel are exposing the risk to other companies. Innovative Industrial Properties (NYSE: IIPR) gets 10% of its revenues from Parallel and Sundial’s (OTC: SNDL) joint venture with SAF Group called Sunstream Bancorp owns some defaulted debt. 

In March 2021, Sundial Growers Inc. formed a  50/50 joint venture with SAF Opportunities LP, a member of the SAF Group called SunStream Bancorp Inc. The Joint Venture’s first mandate was the formation of a special opportunities fund with commitments from third-party limited partners alongside an initial commitment from Sundial of $100 million. 

Sunstream is the owner of $145 million of Junior notes owned by Parallel Cannabis and those notes are in default – exposing Sundial to the loss. According to the lawsuit filed by disgruntled investors, the notes were purchased shortly after the joint venture was formed and was likely the venture’s first investment or one of the first investments. The notes were purchased on May 7, 2021. The lawsuit actually attributes the purchase to SAF Group, but Sunstream’s spokesperson did confirm that it was Sunstream that owned the debt, not SAF Group. 

Parallel used the Junior Note to refinance seller financing provided by the sellers of New England Treatment Access (“NETA”). NETA is a cannabis facility that Parallel acquired in 2019. The Junior Note carries an annual non-default interest rate of 14.25%. Sunstream may have felt some comfort in the language of the Junior Note that stated Parallel couldn’t incur any more debt, but the company is alleged to have done just that. 

According to the court filing, “On December 16, 2021, Parallel received an even more alarming default notice—this time for the Junior Note—in the form of a Notice of Default, Election of Default Rate and Reservation of Rights to the Company (the “Junior Lien Notice”) from Talladega LP, the Administrative Agent and Collateral Agent for the Junior Note holders. The Junior Lien Notice informed the Company that it had failed to (i) maintain the required debt-service-coverage ratio; (ii) maintain specified adjusted consolidated EBITDA as of September 30, 2021; and (iii) “pay Catch-Up [a]mount[s]” due as of September 30, 2021.”

Sunstream’s Silence On Parallel

Sunstream has made a big deal out of most of its investments. It has lent money to Jushi (OTC: JUSHF) and the SPAC Greenrose Acquisition Corp. Michigan-based Skymint also got financing from the joint venture. However, one would be hard-pressed to find any mention of the $145 million investment in Parallel. Despite the numerous press releases crowing about these deals and more, there is little information about the purchase of the notes from Sunstream or Sundial. 

Sunstream has also let it be known it was planning to go public. Sunstream IVXX Investment Corp. announced that it has submitted a draft registration statement on a confidential basis to the U.S. Securities and Exchange Commission for a proposed initial public offering of its common stock. Could a dud investment affect that IPO?

Sundial’s investors

In July 2021, Sundial increased its commitment to SunStream Bancorp Inc. to $538 million from its previously announced commitment of $188 million. In October 2021, Sundial reported it was buying the common shares of Alcanna Inc., and after extending the closing date, completed the transaction at the end of March. The valuation fell from an all-stock deal valued at $346 million to and combination of cash and stock valued at $320 million. So, it seems as if it’s business as usual at Sundial. However, analysts covering Sundial will no doubt want to know if the effects of this default will bleed into Sundial’s books.


Gretchen GaileyApril 6, 2022
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Part 3 of Green Market Report’s series on California‘s war on cannabis.

If you were to ask what the main problem facing the largest cannabis market in the country is, there would be one resounding answer – TAXES.

Cannabis taxes on the state and local levels are choking the life out of businesses across the state of California and cultivators, manufacturers, and retailers are looking for relief anywhere. Currently, businesses are subject to a $161 a pound state cultivation tax for flower, then a 15% state excise tax (which is really 27%, but we’ll get into that later), a 10% state sales tax in most areas, not to mention the varying local cultivation, processing, manufacturing, distribution, and retail tax, effectively making the tax rate on the average cannabis purchase about 50%. 

At first glance, these taxes might seem reasonable, but when examined more closely they are not what they seem.  For example, the 15% excise tax is really defined by an arm’s length transaction with a 15% rate being based on 80% of the retail price and not the wholesale price, effectively truly making the rate 27%. These onerous taxes aren’t levied on any other industry except for cannabis and business owners are crying out for mercy.  Legislators on the state and local levels are looking to provide band-aids to the situation, but so far only Senate Bill 1281 is offering long-term solutions.

The legislation introduced by Senator Steven Bradford (D-35) amends the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) would eliminate the cultivation tax altogether and lower the “15%” excise tax to 5%. It would also have the excise tax paid by the retailers instead of the distributers. Currently, retailers are paying the excise tax to distributors for products has yet to sell, this new provision would have retailers pay the tax directly to the state after the product has been sold and they have the money to pay it. SB 1281 just makes sense.

There are other pieces of legislation that have been introduced to help alleviate the tax burden, Assembly Bill 2792 and AB 2506, but all they do is suspend the cultivation tax until 2028.  While businesses could benefit from these suspensions right now, what happens in 5 years? They are all back in the same place where they started, struggling to stay afloat under the crushing tax burdens.

California brought in close to $1 billion in tax revenue last year for the first three quarters, but the illicit market is rampant and legal businesses can’t compete.  A group of cannabis executives banned together and wrote to Governor Gavin Newsom about the situation, “The opportunity to create a robust legal market has been squandered as a result of excessive taxation,” they added. “75% of cannabis in California is consumed in the illicit market and is untested and unsafe.”

Newsom needs to address this massive problem that is paralyzing the growth and stability of the California market. He has promised tax relief but has been vague in how he would actually accomplish it. Eliminating the cultivation tax and vastly reducing the excise tax would be a good start. SB 1281 is the legislation that needs to cross his desk that is chocked-full of long-term solutions and common sense. No other industry is burdened with these kinds of taxes and cannabis shouldn’t be either. Support SB 1281.

 


StaffMarch 24, 2022
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Hempacco applied to list its common stock on the Nasdaq Capital Market, under the symbol “HPCO.” In its filing, the company said it is focused on Disrupting Tobacco by manufacturing and selling nicotine-free and tobacco-free alternatives to traditional cigarettes. The company says it is using a proprietary, patented spraying technology for terpene infusion and patent-pending flavored filter infusion technology to manufacture hemp and herb-based smokable alternatives.

Hempacco launched the production and sale of its own in-house brand of hemp-based cigarettes, The Real Stuff Smokables, in three presentations: the twenty pack, the ten pack, and the Solito single pack, all of which are sold in our patented counter displays in convenience stores through master distributors.

“We have also entered into several joint ventures to launch multiple new smokables brands: Cali Vibes D8, a joint venture focused on Delta 8 smokable products; Hemp Hop Smokables, a joint venture with rapper Rick Ross and Rap Snack’s CEO James Lindsay; a joint venture with StickIt Ltd., an Israeli corporation, to manufacture cannabinoid sticks for insertion into other cigarettes; and a joint venture to launch Cheech & Chong-branded hemp smokables.”

Hempacco Co., Inc. was acquired by Green Globe International, Inc. in May 2021 and became a wholly-owned subsidiary of it. Subsequently, it issued additional shares of common stock, and as of immediately prior to this offering, it is a majority-owned subsidiary of Green Globe International, Inc., with Green Globe International, Inc. owning approximately 93.4% of our capital stock.

The company reported $1.1 million in revenue in 2021 and $1.8 million in net losses. It said it expects to continue to incur significant expenses related to our expanding operations and to generate operating losses in the near future. “The size of our losses will depend, in part, on the rate of future expenditures and our ability to generate revenues. We incurred a net loss of $1,870,675 for the year ended December 31, 2021, and a net loss attributable to our common stockholders of $2,613,904 for the year ended December 31, 2021, and our accumulated deficit increased to $3,459,214 as of December 31, 2021.” The company leases property owned by the CEO Sandro Piancone, who is paid $300,000 a year.

In addition it has launched a brand of flavored hemp rolling papers, and also private label manufacture hemp rolling papers for third parties. It is currently manufacturing hemp rolling papers for HBI International, one of the leading smoking paper producers in the world, and recently received its largest purchase order to date for approximately $9.2 million from HBI International’s Skunk and Juicy brand to manufacture hemp rolling papers for it.


StaffMarch 17, 2022
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Safe Harbor Financial

Sundie Seefried, CEO Safe Financial Harbor

A 35-year veteran of the credit union industry, in 2014, she saw that CRBs needed financial services and that Colorado communities would be safer if the new industry had access to banking solutions.

  • What is your proudest accomplishment in the cannabis industry?

Providing uninterrupted banking services to an underserved emerging market, which took a great deal of regulatory compliance and diligence to create and sustain. The cannabis market is emerging and requires constant attention to ensure there is no interruption in our ability to provide seamless banking services for our clients. Surviving 16 state and federal examinations within seven years is no small feat. On a personal level, this took sustaining performance for eight years. Careers often allow for a ‘down time’ – when things slow down, one can think, recreate a path, etc. But I had no opportunity to relax on this journey and somehow, I kept finding the energy to sustain demanding performance and consistently delivering what was necessary to solve a major problem. Motive really matters and I had great motivation to right a wrong (limited access to financial services for this emerging market.) 

 

  • Do you feel that the cannabis industry has more opportunity for female-identifying people than other industries?

At this point, that isn’t really the case. In the early stages, I saw more female-led companies. However, as the market has emerged and we have seen a great deal of M&A activities, those numbers are decreasing quickly. However, the focus on diversity and social equity in the industry may very well set this on a positive trend.

 

  • Do you feel you have to work twice as hard as male colleagues or do you think the industry has moved past that?

In the finance world, it isn’t about working twice as hard, but about working in the smartest manner possible. While the industry is still male dominated, no matter your gender, you must work twice as hard as the person next to you to succeed. It’s just part of the industry’s DNA. Old stereotypes and age-old networks that have excluded women do still exist. To share an example, I just finished approximately 30 to 40 investor pitches and other than the women that helped facilitate the calls, only ONE meeting had another woman listening to the pitch to raise capital. Having self-confidence and being aware of this inequity is the first step to overcoming the challenge. As it pertains to the cannabis industry, everyone has had to work twice as hard just to do normal business.  Everything in this industry is an uphill battle due to the stigma attached to cannabis as well as the illegal status of cannabis not only at the federal level but also in certain states and in many international jurisdictions.

 

  • What was your biggest challenge in business and how did you overcome it?

Finance is still very much a ‘man’s world’. Men often looked at me as the ‘loose cannon on deck’ not because I just shot off for no reason, but because I wasn’t afraid to call it like I saw it and could ignore people’s looks and comments. I had to let go of being liked and of being included in the inner circle of men’s clubs. They still do exist from decades of developing such support systems. Unfortunately, women who stand up and move independently get labeled in all sorts of ways, but that’s what I consider true leadership. I always tell myself that the board didn’t hire me to follow the men in the industry, but to lead with courage and that means breaking away and moving in a different manner when needed. 

The last thing I will say about overcoming the ‘man’s world and their clubs’ is that the new generation of men aren’t following those old rules, nor do they see women as secondary achievers. They were raised by single, independent, capable, intelligent mothers and they are helping level the playing field for women in the workplace…. Time will correct some of the issues we face today.

 

  • What has you or your company done to help give more opportunities for women?

When I took over as CEO in 2001, I made it a point to open a mentoring program and personally mentored several female employees to assist them with managing their career but more importantly, in teaching them to support other women in the workplace. There is often a harmful perception about women fighting and competing against each other in the workplace. But there is nothing stronger than a group of women that put their minds in the same direction to accomplish bigger things and I wouldn’t get in their way. The old ways are outdated, and today this is no longer the case when the right leadership promotes solid networking and support. I have seen some of the women I mentored moved into leadership positions and revert back to what I consider ‘high school games’, but the really successful ones learned the true lessons of networking and have gone on to build their own support systems and groom their peers for bigger things. I believe women need to buck that old system and take control together and help each other succeed. 

 

At Safe Harbor, we have a culture of Relate, Educate and Appreciate, which has permeated our interactions with each other and the outside world. When one leads with relating, it’s difficult to step on each other and more likely to create the right environment for all to succeed. One doesn’t have to be on the golf course anymore to succeed because relationships can be created right in the workplace over lunch, coffee and corporate problem solving. 

 

  • What are your personal goals for 2022?  

I haven’t had a vacation since 2016 as I have been hyper-focused on making Safe Harbor a success. The ever-changing industry demands complete attention to avoid any wrong steps. A misstep in this regulatory environment impacts a number of businesses and I felt it necessary to keep Safe Harbor as a reliable partner from the beginning. 

Now that we have evolved to this next chapter of our company, and we have a strong and stable leadership team in place, my goal for 2022 is to give my family a little more attention and take some much-needed personal days. Another key personal goal for this year is to remain healthy. The last seven years have been extremely stressful, which has not allowed me to manage a healthy lifestyle. During the Covid shutdowns, I was able to focus on health again as it afforded me more time to eat well and exercise. I’d like to continue on that path as it helps in staying focused on the future endeavors at Safe Harbor.


Debra BorchardtFebruary 14, 2022
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Cannabis blank check company Relativity Acquisition has sold 12.5 million units at $10 each, and its underwriters have a 45-day option to buy up to an additional roughly 1.9 million units, which could raise another $18.75 million. Relativity Acquisition’s common stock is set to trade on the Nasdaq under the symbol “RACY” (the units will trade at RACYU) and its offering is expected to close on February 15, 2022.

Relativity Acquisition said that while it’s primarily looking for businesses in the cannabis industry, it may also eventually combine with a company in sectors such as consumer packaged goods, health, and wellness, pharmaceuticals, or logistics.

The company is led by CEO and Chairman Tarek K. Tabsh, who has over 15 years of legal, commercial cannabis experience. In 2017, Mr. Tabsh co-founded and guided the initial vision and strategy for Oxford Cannabinoid Technologies, a UK-based pharmaceutical company that develops therapies targeting the endocannabinoid system, in areas such as pain and cancer, in partnership with Oxford University. Mr. Tabsh was instrumental in raising an institutional round of investment from one of the largest tobacco companies in the world.

The CFO is Steven Berg, a business leader with over 30 years of experience spanning investment banking to building prominent companies in the cannabis industry. Mr. Berg most recently was CEO of NWT Holdings, LLC (dba Firefly Vapor), from June 2017 to December 2019, a leader in cannabis vaporization technology and consumer products. The board includes John Anthony Quelch, Emily Paxhia, and Francis Knuettel II.

According to the company’s filing, it will seek to acquire a company that:

•        Has an enterprise value of approximately $500 million to $1 billion;

•        Has a market and/or cost leadership position and would benefit from our management expertise and extensive relationships (i.e., “rewards stellar management”);

•        Occupies relatively fast-growing markets (i.e., “top line growth”);

•        Has strong drivers of revenue and earnings growth and exhibits “barriers to competition”;

•        Has the potential to generate strong and stable free cash flow;

•        Is underperforming its operating potential and underutilizing its balance sheet.

 

The company said in its filing, “We believe that there are several types of target businesses that could benefit from our partnership and are compliant with all applicable laws and regulations within the jurisdictions in which they are located or operate. In the United States, this would currently include certain non-plant touching businesses that support the functioning of state-licensed commercial cannabis activity but are not directly related to cultivation, manufacturing, processing, branding, transportation, distribution, storage or sale of cannabis and cannabis-based products. Another set of eligible targets in the U.S. would include certain hemp derived cannabidiol (“CBD”) businesses that are compliant with the U.S. Agricultural Improvement Act of 2018 (the “2018 Farm Bill”), which would include targets engaged in (i) cultivation and/or processing of hemp, (ii) the manufacturing of hemp extracts and/or extraction of cannabinoids from hemp, and/or (iii) branding, transportation, distribution, storage or sale of hemp-derived CBD.”

 

 


Debra BorchardtFebruary 14, 2022
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Cannabis banking company Safe Harbor Financial (SHF, LLC) will go public through the SPAC (special purpose acquisition corporation) Northern Lights Acquisition Corp.  (NASDAQ: NLIT) has chosen it for the qualifying transaction. Safe Harbor is a subsidiary of Partner Colorado Credit Union, a Colorado-chartered credit union based in Arvada, Colorado. Safe Harbor will be led by Sundie Seefried, Founder and Chief Executive Officer of Safe Harbor.

“The acquisition by Northern Lights will allow Safe Harbor to advance its efforts to remain the premier cannabis financial services provider,” said Seefried. “Over the last seven years, our team has pioneered what many consider to be the industry standard cannabis banking platform by establishing strong internal processes and controls, and by complying with rigorous state and federal banking guidelines. Through the SPAC transaction, we believe Safe Harbor will be well-positioned to expand its suite of financial services for our existing and new clients and continue to support the growth of the cannabis industry at a very high level. Our goal is to become a ‘one-stop-shop’ for cannabis business financial needs.”

Safe Harbor was formed in 2015 by the PCCU to provide an unmet need, which was compliant access to banking and financial services for the cannabis industry. Over the past seven years, Safe Harbor has grown to nearly 600 accounts spanning 20 states. Additionally, Safe Harbor has processed over $11 billion in transactions with $4 billion in 2021 and has grown deposits at a 73% CAGR since inception. Safe Harbor addresses these challenges with its industry-leading financial services and commercial lending platform, providing its clients with increased safety and security through access to normalized banking and cash management. Through its proprietary risk management and compliance program, Safe Harbor operates under regulations promulgated under the Bank Secrecy Act and additional FinCEN guidance, as demonstrated by passing 15 state and federal examinations since inception.

Transaction Details

Northern Lights will acquire Safe Harbor for a total of $185 million, of which $70 million will be paid in cash and $115 million in shares of Northern Lights Class A common stock. The estimated post-transaction equity value of the company will be approximately $327 million, assuming no redemptions by the stockholders of Northern Lights. The transaction will provide up to $107 million of gross proceeds (assuming no redemptions), including $117 million from Northern Lights’ cash-in-trust and a fully committed $60 million PIPE from institutional investors.

“Safe Harbor is the most compelling investment opportunity we have encountered in the cannabis industry as both operators and investors. Safe Harbor is one of the only multi-state financial service organizations to successfully navigate the highly regulated cannabis banking industry, providing services that operators in other industries take for granted,” noted John Darwin and Joshua Mann, Co-CEOs of Northern Lights, both of whom will remain on Northern Lights’ Board of Directors upon completion of the transaction. “Setting the gold standard for regulatory compliance, as well as providing access to growth capital across the entire cannabis value chain, Safe Harbor is uniquely positioned to scale. We are confident that our collective experience in the cannabis industry and strong pipeline of lending opportunities are complementary to the incredible business Sundie and her team have established.”


StaffFebruary 10, 2022
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Schwazze,(OTCQX: SHWZ) has closed the transaction to acquire Colorado-based MCG, LLC also known as Emerald Fields.  Emerald Fields is the owner and operator of two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colorado.  This acquisition is part of the company’s ongoing retail expansion plan in Colorado and New Mexico, bringing the total number of dispensaries the Company operates to 32.

Total consideration for the acquisition is $29 million and will be paid as 60% cash and 40% Schwazze common stock upon closing.  This is an estimated 3.8 multiple on 2021 Adjusted EBITDA.

“Our team is delighted to add the Emerald Fields Cannaboutiques to our growing portfolio of dispensaries and are eager to welcome the team to Schwazze. Manitou Springs and Glendale are attractive locations and valuable assets to our overall growth plan as we continue to build out Colorado.  Our team is excited to add another store brand to our house of brands.”  said Justin Dye, Schwazze’s CEO.

High Tide

High Tide Inc. (Nasdaq: HITI) has completed its acquisition of Bud Room Inc. as well as assignments of the vendors’ shareholder loans, for C$3.6 million and acquired all rights to the customized Fastendr retail kiosk and smart locker technology and Bud Room’s retail cannabis store located in Ottawa, Ontario.

The company said in a statement that the acquisition will provide the following elements:

  • High Tide through this acquisition gains ownership of the Fastendr technology which will improve the Company’s competitive advantage in bricks-and mortar cannabis retail.
  • A pilot conducted at Bud Room’s Ottawa location found that over 60% of customers preferred to use the Fastendr™ kiosks and spent over 20% more when doing so.
  • All existing and future Canna Cabana locations will be equipped with this customized and innovative kiosk and smart locker technology as it delivers a faster customer experience in busier retail locations while also enabling the efficient operation of smaller footprint stores.
  • High Tide intends to license this technology to third party retailers starting with the cannabis industry, and expanding to other retail sectors across North America and beyond.
  • This technology provides High Tide with potential new revenue generation, data collection and monetization opportunities from third party retail locations, and will further enhance the value of its Cabannalytics data insights offering.

Bud Room’s founder and Chief Executive Officer, Michael DiDuca will remain engaged with the High Tide team assisting in launching Fastendr. High Tide granted 13,538 stock options to DiDuca exercisable at C$6.25 per High Tide Share for a period of 3 years.


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