It’s time for your Daily Hit of cannabis financial news for October 4, 2021.
On The Site
TPCO Holding Corp. also known as The Parent Company (NEO: GRAM.U) (OTCQX: GRAMF) is buying California-based Coastal Holding Company in a deal with a valuation of $56 million that is expected to close in 2022. The acquisition will bring The Parent Company’s current California retail store and delivery depot footprints to eleven and six, respectively. The Parent Co. said this would make it the second-largest operating retail dispensary and delivery hub in the State with an expanded reach to over 80% of California’s population. The deal consists of $16.2 million in cash with a contingent consideration of up to $40 million in equity of The Parent Company upon completion of milestone events and a $9 million option to acquire the remaining equity of a southern California dispensary that Coastal currently holds a minority interest in.
Cannabis real estate lender AFC Gamma, Inc. (NASDAQ: AFCG) said that it has expanded its senior credit facility by $53.4 million, to $75.4 million in total commitments to Chicago-based Justice Cannabis Co., a multi-state operator with licenses in eight states. Justice Cannabis will use the money to make acquisitions and develop its operations in New Jersey, further develop its Pennsylvania cultivation facility, and refinance existing debt.
Ascend Wellness Holdings, Inc. (AWH) (OTCQX: AAWH) has staked its claim in Ohio after completing its acquisition of BCCO, LLC, which operates a medical dispensary in Carroll, Ohio. Ascend also said it was buying Ohio Cannabis Clinic, LLC, which operates a medical dispensary in Coshocton, Ohio. Ohio is a medical-only market at this time and recorded $200 million in sales in 2020. It is estimated by Arcview that sales could reach $600 million in 2025. Jefferies estimates that 2020 legal and illicit market sales reached approximately $2.7 billion, making Ohio the 3rd largest market that is only legalized for medical.
Top cannabis attorney David Feldman has formed a new law firm, Feldman Legal Advisors, PLLC. Feldman, who has focused on cannabis and psychedelics since 2013 and recently helped build and lead the 60+ attorney cannabis industry group at an AmLaw100 firm, will focus the new firm’s efforts on business and transactional matters in the industry. The CEO and Co-Founder of Skip Intro Advisors, LLC, cannabis and psychedelics-focused consulting firm, Feldman said he believes the combination of legal and advisory services will offer a “one stop shop” for entrepreneurs, investment banks, and investors in the space.
In Other News
Agrify Corporation (NasdaqCM: AGFY) has acquired Precision Extraction Solutions and Cascade Sciences, two of the leading brands that provide equipment and solutions for extraction, post-processing, and testing for cannabis and hemp industry, from Sinclair Scientific. Precision and Cascade expect to generate approximately $40 million in revenue in 2021 with positive EBITDA. As a result of this transaction, Agrify now has a physical presence in seven states with a growing number of clients and business partners distributed throughout the country.
“We are thrilled to announce the acquisition of Precision and Cascade, two companies that share our strong commitment and passion for delivering leading-edge solutions and exceptional customer service to the cannabis and hemp industry,” said Raymond Chang, CEO of Agrify. “Precision and Cascade have stellar reputations and powerful leadership positions in their respective spaces, which is a perfect complement to our existing business and should allow us to leverage new competitive advantages and synergies in order to accelerate our growth plans.”
Curaleaf Holdings, Inc. (CSE: CURA / OTCQX: CURLF)has successfully completed the previously announced acquisition of Los Sueños Farms and its related entities (“Los Sueños”), the largest outdoor grow in Colorado.
Akerna (Nasdaq: KERN) has closed the acquisition of 365 Cannabis, a cannabis ERP and business management software system built on Microsoft’s Dynamics 365 Business Central, in a $17 million deal.