It’s time for your Daily Hit of cannabis financial news for January 6, 2022.
On The Site
MedMen (OTCQX: MMNFF) is still refusing to close its agreed-upon deal with Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) for the properties in New York. The investment, which was agreed upon in March 2021, saw MedMen signing an agreement with Ascend Wellness Holdings, where Ascend would make an investment of approximately $73 million in MedMen NY Inc. or MMNY. Following the investment, Ascend would hold a controlling interest in MMNY of approximately 86.7% and will have an option to buy MedMen’s remaining interest in MMNY in the future. The deal was dependent upon New York State’s approval, which the Office of Cannabis Management of the Cannabis Control Board of the State of New York gave on December 16, 2021. On January 2, 2022, Ascend said that MedMen attempted to terminate the Investment Agreement saying they hadn’t received approval from the applicable state regulators to satisfy the closing conditions. On January 3, 2022, AWH told MedMen that its termination attempt was invalid. On January 6, AWH reiterated this in their notice to MedMen regarding regulatory compliance.
Cannabis data providers have weighed in on the 2021 holiday sales for dispensaries with some surprising results. The data included the Thanksgiving holiday and then tracked sales through to the end of Christmas. Most agreed that sales increased in 2021 despite the resurgence of the new Covid fear with the variant Omicron. Consumers upped their cannabis shopping throughout the month of December causing Christmas week comparisons to be less strong than in the past. Still, sales remained elevated leading up to Christmas in both the Canadian and U.S. markets.
In Other News
Halo Collective Inc. (OTCQB: HCANF) announced that it has entered into a loan agreement with Global Tech Opportunities 6 for up to $14,000,000 to Halo in two tranches of $7,000,000 each, subject to certain terms and conditions. Amounts advanced under the Loan Agreement are expected to be used to support Halo’s expansion into nutraceutical products (including Hushrooms), the completion of Halo’s Budega™ retail stores in North Hollywood, Hollywood, and Westwood, California, and for general corporate purposes. The Loan Amount is unsecured and will bear interest at 8.0% per annum, and each tranche will be repayable in six equal monthly installments (of blended principal and interest) of $1,194,039.62 per installment.
Columbia Care Inc. (CSE:CCHW) (OTCQX:CCHWF) announced that it is commencing a solicitation of consents from holders of its 13.00% senior secured notes due May 14, 2023; 5.00% senior secured convertible notes due December 19, 2023; and 6.00% senior secured convertible notes due June 29, 2025, to consider certain amendments to the trust indenture dated May 14, 2020, as supplemented, governing the Notes. The key amendment will significantly increase the company’s borrowing capacity to support growth initiatives.
Revive Therapeutics Ltd. (OTCQB: RVVTF) wishes to clarify certain disclosures in its press release titled “Revive Therapeutics Provides Update on Phase 3 Clinical Trial for Bucillamine in COVID-19,” issued on December 29, 2021, that provided an update on the Company’s U.S. Food & Drug Administration (“FDA”) Phase 3 clinical trial (NCT04504734) to evaluate the safety and efficacy of Bucillamine, an oral drug with anti-inflammatory and antiviral properties, in patients with mild to moderate COVID-19. As of December 29, 2021, there were approximately 700 subjects that participated in the enrollment period of the Study. The Company expects patient enrollment in Turkey to occur by mid-February and completion of the Study’s enrollment in Q1-2022. The company is not making any express or implied claims that its product has the ability to eliminate or cure COVID-19 (SARS-2 Coronavirus) at this time.