It’s time for your Daily Hit of cannabis financial news for January 14, 2021.
On the Site
Cresco Labs (CSE: CL) (OTCQX: CRLBF) is buying Florida-based Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX: BMWLF) in an all-stock deal valued at $213 million. Bluma Wellness operates as “One Plant Florida” and has seven strategically located dispensaries with eight more locations under legal control with plans to open.
The terms of the deal include Bluma shareholders receiving 0.0859 of a subordinate voting share of Cresco Labs for each Bluma Share held. The Exchange Ratio implies a price per Bluma Share of approximately $1.12, representing a premium of approximately 29% based on the closing price of Bluma Shares on the CSE as of January 13, 2021.
Aphria Inc. (TSX: APHA) (Nasdaq: APHA) reported its financial results for the second quarter and six months ended November 30, 2020, with all amounts are expressed in Canadian dollars. The stock was moving higher by over 7% in early trading as the earnings per share beat expectations.
Net revenue for Aphria increased 33% to $160.5 million from $120.6 million in the same period last year. Second-quarter net revenue increased 10% sequentially from $145.7 million. The company attributed this to an increase in distribution revenue at CC Pharma in Germany and an increase in net cannabis revenue as well as five days of contribution from net beverage alcohol revenue from the acquisition of SweetWater. The increase in distribution revenue is a result of a return to normalized levels from the prior quarter.
In Other News
Namaste Technologies Inc. (OTCMKTS: NXTTF) has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters and pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 29,000,000 units in the capital of the Company at a price of C$0 .35 per Unit for aggregate gross proceeds to the Company of C$10,150 ,000.
Ayr Strategies Inc. (OTCQX: AYRWF) closed of its previously announced overnight marketed offering of an aggregate of 4,600,000 subordinate voting shares, restricted voting shares or limited voting shares at a price of C$34.25 per share for total gross proceeds of approximately C$157,550,000, which included the exercise in full of the over-allotment option granted to the underwriters, before deducting the underwriters’ fees and estimated offering expenses. Canaccord Genuity Corp. acted as the lead underwriter for the Offering, on behalf of a syndicate of underwriters including Beacon Securities Limited, Echelon Wealth Partners, Roth Canada, ULC and PI Financial Corp.
Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF) has agreed to increase the size of its previously announced bought deal financing led by Canaccord Genuity Corp. Canaccord Genuity has agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 30,000,000 units of the Company at a price of C$0.50 per Unit for aggregate gross proceeds to the Company of C$15,000,000. If the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$17,250,000.
MindMed (OTCQB: MMEDF) a leading psychedelic medicine biotech company today announced the addition of Robert Barrow, an accomplished pharmaceutical executive, as Chief Development Officer. Mr. Barrow has over a decade of experience leading drug development programs aimed at identifying and testing novel treatments in a wide range of disease conditions under FDA and EMA.