Once again the cannabis industry can breathe a sigh of relief as the politicians in Washington extended the current budget for a few months. In turn, this means the Rohrabacher-Blumenauer amendment still stands. The DOJ still cannot spend any money going after cannabis companies in states where it has been legalized.
Also, according to Tom Angell at Marijuana Moment, the Cole Memorandum is also safe for now. Attorney General Jeff Sessions has rescinded 25 different guidance letters but left the Cole Memo alone.
While the year winds down, most of Wall Street is quiet, but not in the cannabis financial world. This week has seen a whirlwind of cannabis deals.
The latest deal was DOJA Cannabis company buying cannabis lifestyle brand Tokyo Smoke in an all-stock deal. As an added bonus, Aphria and a group of investors have ponied up an additional $12 million to sweeten the deal. The two companies plan a retail empire that is hip and trendy and can easily stock both brands products. The combined company will be called Hiku and is now sitting on a solid $31 million in cash.
Friday Night (TGIFF) acquired Body & Mind (BMMJ) in an all-stock deal valued at $115 million Canadian dollars. Body & Mind produces cannabis products in Nevada. Friday Night stock popped a whopping 18% this week on its first-quarter earnings. The company delivered 2.5 million in Canadian dollars in revenue, mostly off of its new business in Nevada.
Pivot Pharmaceuticals (PVOTF) acquired ERS Holdings for $1 million plus stock. ERS has a patented infusion product that allows for cannabis oil to be used in a variety of products.
Organigram has been busy this week too. The company took out a $10 million loan from Farm Credit Canada, and they also appointed a new chief financial officer and closed on a previously announced bought deal for $57 million.