This week Governor Pritzker of Illinois signed HB 1438 legalizing adult use cannabis for people over the age of 21. This makes Illinois the 11th state to legalize recreational cannabis. It will also expunge the records of over 700,000 residents convicted of marijuana-related offenses. The bill also includes a “social equity program,” which makes it easier for those with marijuana convictions to get business licenses. The program also allocates $12 million for startup businesses related to cannabis.
The Flowr Corporation began a public offering of common shares for approximately C$125,000,000 this week sending the stock down in trading as shareholders showed their displeasure at the dilution. Flowr said that it intends to use the proceeds to fund part of its acquisition of Holigen Holdings.
Private cannabis company Surterra Wellness closed on a $100 million Series D funding round and the expansion of its Board of Directors. Surterra plans to use the proceeds to fund strategic acquisitions and infrastructure capital expenditures. Participants in the round include existing and new investors, ultra-high net worth individuals and family investment offices, including former Patrón Spirits Company CEO, Ed Brown, who is also a new board member. Surterra also announced the acquisition of Molecular Infusions, a Boston-based biotechnology research and development company.
Green Growth continues its takeover of the mall as Abercrombie & Fitch said it would sell the Seventh Sense Botanical Therapy products in 160 stores. This follows a trial period that must’ve been successful if the company decided on a much bigger rollout.
There were several small acquisitions this week.
Driven Deliveries, Inc., (DRVD) completed the acquisition of Ganjarunner, Inc., a cannabis delivery company that provides high-quality lab-tested, pesticide-free medicinal and recreational products throughout California.
Nabis Holdings Inc. (CSE:NAB) (OTC: NABIF) completed the purchase of 2,260,500 common shares, representing a 49% interest, of Cannova Medical Ltd., a provider of innovative solutions for cannabis consumption, with the option to acquire the remaining 51% interest.
Vice Ventures said it had closed its first $25 million fund. Vice Ventures is an investment management company that focuses on developing early-stage companies in what it calls the “vice space.” the company was founded by Catharine Dockery who served as an early member of the digitally native vertical brands M&A team at Walmart (WMT), alongside Bonobos CEO Andy Dunn.
And finally, it is Pride month. We commend all those who have fought for the rights of the LGBTQ community. Love is love. Respect each other and embrace who you are because you are all beautiful people.