This is your Daily Hit of cannabis financial news for September 16, 2021.
On The Site
Acreage Holdings, Inc. (OTC: ACRHF, ACRDF) is selling its four Oregon dispensaries to Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF). The divestiture is part of Acreage’s strategy to target only core states versus trying to be the largest MSO in the most states. The deal is valued at $6.5 million. Acreage’s four Oregon retail dispensaries are branded as Cannabliss & Co. and the sale will end the company’s presence in the state. The company said in a statement that the Oregon stores were negatively affecting the company’s bottom line and utilizing management resources.
It’s been a busy week for psychedelic company Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) who reported its financial results for the quarter ending July 31, 2021 and announced an acquisition. On Wednesday, Awakn reported its earnings, but the relatively new company has no revenues to speak of. Instead, the company reported that it had a net loss of $9.1 million for the six months ending in July. Awakn also addressed its situation as a going concern due to its lack of incoming revenue. However, it has been able to raise money and currently has $8.7 million in cash. The company completed an $8.3 million financing at $2.50 per share in conjunction with its listing on the Neo Exchange.
In Other News
Australis Capital Inc., operating as AUDACIOUS (CSE: AUSA) (OTC: AUSAF) is buying the outstanding shares of BW Macaw Group, Inc. (“Herbs”) for $5 million, in an all-stock deal. The retail license, located at 543 Parrot Street, San Jose, Calif. 95112, is part of the contemplated transaction, as well as Herbs’ business license to cultivate, manufacture (production of derivatives and edibles), and distribute cannabis products.
Additionally, Herbs has entered into a distribution agreement with EAZE, California’s largest legal cannabis delivery and distribution company. The Company has two contract manufacturers lined up to commence production of the Company’s products in California.
“This deal creates a platform for our further expansion in California through a compellingly valued transaction that sees us establish a brick-and-mortar presence in an underserved market while teaming up with EAZE, one of the marquee names in the industry with more than 800,000 registered customers,” said Terry Booth, CEO of AUDACIOUS. “Through our EAZE partnership, we can provide consumers throughout California access to our award-winning brands, including our LOOS shots and new products in development that will be launching soon. In addition, with a license allowing manufacturing and cultivation, this transaction, once closed, will provide us with the option to scale up operations throughout the value chain to capture higher margins. The transaction will accelerate our revenue growth, while reflecting our ongoing execution towards becoming a tier one MSO.”