acquisitions Archives - Green Market Report

Debra BorchardtJanuary 12, 2023

There have been a lot of expectations for consolidation in the cannabis industry and so it seems 2023 is already off to a busy start. Today there are three deals to mention.

Akerna

Akerna (Nasdaq: KERN) announced it was selling 365 Cannabis also known as The NAV People to 365 Holdco LLC as of an agreement signed on January 11, 2023. Under the terms of the SPA, Akerna received a cash payment of $500,000 and the parties agreed to terminate an earn-out payment due and payable to the principals of 365 Holdco LLC with a deemed value of $2,283,806. According to a company statement, $100,000 of the cash payment is being held back by 365 Holdco in accordance with the terms of the SPA for post-closing accounts payable adjustments and certain indemnification claims through April 30, 2023.

Akerna acquired 365 Cannabis in a deal valued at $17 million in October 2021. At the time Akerna CEO Jessica Billingsley said, “The 365 Cannabis acquisition represents the final piece of the puzzle for connecting cannabis compliance with mainstream ERP offerings to give our clients a choice between all of the most popular financial and operational systems.” The acquisition of 365 Cannabis by Akerna was meant to accelerate the deployment of a financial solution strategy with the addition of Microsoft capabilities, further establishing Akerna as the most robust cannabis-compliant ERP system offering a complete portfolio of mainstream tax and financials.

Despite selling the asset for much less than it cost, Akerna shares were up almost 41% in pre-market trading to lately sell at $1.37. Akerna has been working to improve its balance sheet over the past year. The company said in November that it continues to explore strategic and financial alternatives to strengthen its balance sheet. It also announced in November that shareholders voted in favor of a 20-for-1 reverse stock split which was effectuated immediately thereafter in order to maintain compliance with Nasdaq listing standards.

LEEF Brands

LEEF Brands, Inc. (OTCQB: ICNAF) has completed the acquisition of The Leaf at 73740 LLC in an all-stock transaction as of January 11, 2023. The transaction was previously announced on September 19, 2022. The Leaf is a premium California retailer located in the heart of Palm Desert, California at 73740 El Paseo.

“We are extremely excited to welcome The Leaf into the LEEF Brands family and to commence our corporate strategy of acquiring top performing and best in class retail dispensaries in locations that will serve to augment LEEF product offerings in select markets. The Leaf has built a trusted retail platform in the heart of Palm Desert and we look forward to garnering invaluable customer insights through The Leaf’s platform and begin to integrate those insights throughout our organization to build a lasting relationship with the cannabis consumer. We also look forward to building upon The Leaf’s trusted retail platform and continuing the legacy of R.D Hubbard, in building a best-in-class cannabis retail experience,” said Micah Anderson, CEO of LEEF Brands. “Our acquisition strategy is two-fold: gain operational efficiencies and significantly grow revenue. We will accomplish this by consolidating operating expenses and building the presence of our in-house brands in-store.”

Wee-Cig International

Wee-Cig International Corporation (OTCMarkets: WCIG) signed a Letter of Intent (LOI) to acquire The Jamaican Brew House. The Jamaican Brew House is a producer of an exclusive neutral liquid base made from cannabis that can be used in a range of food and beverage applications. The naturally soluble liquid eliminates the need for emulsification or nanoencapsulation, resulting in a finished product that has consistent CBD/THC content and is free of the taste of cannabis terpenes. JBH is the first company to utilize a botanical process to naturally create a neutral cannabis base and is further differentiated by its innovative products, unique flavor profiles, and customer-first experience, making cannabis products more enjoyable for consumers. The team at JBH includes sales and marketing leaders from the beverages industry, cannabis and food processing, and a corporate advisory team, all of whom will bring their industry knowledge to the company’s operations.

“I am extremely excited to announce we have entered into a Letter of Intent,” comments Efraim Babayov, CFO of Wee-Cig International Corporation. “The expansion of operations of The Jamaican Brew House is expected to be the focus of our company in 2023 and will bring a new and existing operating segment. I believe this acquisition once concluded will provide tremendous value to our company and shareholders.”

Russell Korus, CEO, President, and director of the company, has resigned all positions. Mr. Efraim Babayov has agreed to assume the role of interim CEO and President.

This acquisition will bring a patent-pending technology to Wee-Cig International Corporation, which the company intends to immediately commence marketing. The company said it expects to enter into a definitive agreement with JBH no later than thirty (30) days from entry into this LOI, with closing during the first quarter of fiscal 2023.

Debra BorchardtOctober 17, 2022

Cantor thinks M&A will take a pause for now.

Debra BorchardtMay 17, 2021

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Curaleaf

Curaleaf Holdings, Inc. (OTCQX: CURLF) is buying the largest outdoor grow in Colorado known as Los Sueños Farms in a deal valued at $67 million. The transaction is a mix of cash and stock. Curaleaf said this will significantly expand its Colorado presence, vertically integrating within the state. The proposed acquisition includes three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity, including land, equipment, and licensed operating entities, 1,800 plant indoor grow and two retail cannabis dispensary locations serving adult-use customers. An additional contingent consideration of up to $8 million in stock will be paid based upon operating cash flow-based targets for 2022.

Boris Jordan, Executive Chairman of Curaleaf, stated, “The acquisition of Los Sueños provides Curaleaf with outdoor cannabis cultivation expertise at commercial scale and establishes our foothold in the $2.2 billion Colorado market. This deal furthers our strategy of constructing low-cost supply chains that will secure healthy margins and position us for interstate commerce when it comes. Ultimately, our goal is to cultivate cannabis at less than $100 per pound, and this acquisition is a significant step in the right direction.”

The acquisition will complement Curaleaf’s existing Colorado presence through its Select brand. Joseph Bayern, CEO of Curaleaf added, “The acquisition of Los Sueños will add over 50,000 pounds per year of low-cost wholesale capacity to Curaleaf’s footprint in Colorado , which we intend to double to over 100,000 pounds, representing a significant market share. As the largest producer of biomass in the state, this facility will also fuel the further deployment of our Select product line, which can already be found in 230 independent dispensaries in the state.”

Hexo

HEXO Corp. (NYSE: HEXO) announced it is buying 48North Cannabis Corp (TSX-V: NRTH) in an all-stock deal valued at approximately $50 million on an enterprise value basis. 48North is a brand-led, consumer-centric licensed cannabis producer with an expansive portfolio of high-quality, accessibly-priced products available across the country. The company brands include Trail Mix, an accessibly priced brand formulated with taste and aroma-first flavor profiles and Latitude, a next-generation lifestyle platform and premium, natural cannabis collection focused on wellness, beauty, and beyond. 48North operates two indoor-licensed cannabis production sites in Ontario.

“As we continue down our path towards achieving a top two position in Canada by adult-use sales, we are looking forward to welcoming the 48North team into the HEXO family.” said Sebastien St-Louis, CEO and co-founder of HEXO Corp. “48North’s innovative product portfolio complements HEXO’s existing brands which, combined with their additional market penetration, will further strengthen HEXO’s position in the Canadian market. We expect the deal could offer up to $12 million worth of accretive synergies within one year following the close and ideally position HEXO to continue executing on our domestic and international growth strategy.”

Assuming this deal closes and the previously announced transaction with Zenabis Global Inc., which is expected to close on June 1, 2021, the combined organization would be among the leading licensed producers in terms of combined Canadian recreational sales, based on their most recent financial statements and results.

StaffMarch 22, 2021

Hydroponic chain store giant GrowGeneration Corp . (NASDAQ: GRWG ) is buying the leading wholesale agriculture platform Agron.io for an undisclosed amount. GrowGen said it expects Agron will contribute $20 million in revenue for this year. The stock was trading higher in early trading to lately sell at $56.94.

Agron.io offers commercial pricing, real-time inventory, and one of the largest product catalogs in the industry, with over 10,000 products in over 60 categories, including greenhouses, vertical benching, controlled environmental systems, HVAC, and industrial equipment. The platform manages real-time product updates, tier-pricing changes, case quantities, pallet quantities, profit margin projections, hazmat fees, ETL/UL listings and state chemical regulations, as well as guarantees the latest shipping quotes using API generated pallet and box shipping rates.

“As additional legal cannabis markets continue to open up across the country, we are expanding and enhancing our commercial services, from facility design and consulting to volume product pricing, to deliver best-in-class support for large growers,” said Darren Lampert , GrowGen’s CEO. “The Agron.io platform is a strategic and exciting addition to our portfolio and comes with a highly skilled team of customer service experts trained to help growers navigate the complexities of planning, growing and sustaining a commercial agriculture facility.”

The company said in a statement that Agron.io was launched in 2016 and is based in Denver, Colorado. Agron.io’s team of specialists has overseen more than 200 buildouts, managing every aspect from light layouts and photosynthetic photon flux density (PPFD) calculations, to vertical benching, irrigation and HVAC design, to fertigation and integrated pest management. They also provide financing options and manage administrative matters such as online purchasing history and order tracking.

“We developed Agron.io to provide next-level support for commercial growers, whose orders are extremely time-sensitive,” said John Dreibelbis, Agron.io’s CEO. “By joining forces with GrowGen, we can reach even more commercial growers with enhanced services, competitive pricing, and drop-shipping from the nearest GrowGen distribution center.”

With the addition of Agron.io Powered by GrowGen for commercial accounts, GrowGen said it will continue to operate its e-commerce platform GrowGeneration.com for retail and craft cannabis and organic produce growers. The GrowGeneration.com site features online ordering of over 10,000 products, ranging from organic nutrients and soils to advanced lighting technology; enhanced order tracking; buy online pick up in-store (BOPIS) capability; a virtual garden center with 16 product departments; and a GrowPro channel featuring educational and how-to content from grow specialists.

Jeff Gordon, Co-Founder, and CTO stated, “Agron.io was created to give commercial customers real-time data to manage their purchasing and logistics. Connecting our technology with the Grow Generation distribution network, and a world-class team of commercial experts, we now have a platform that is a complete game-changer for our evolving industry.”

The Agron.io acquisition is GrowGen’s eighth this year and follows yet another quarter of record earnings. In January, the Company pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million , up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The Company also raised its 2021 revenue guidance to $335 million – $350 million and raised its 2021 adjusted EBITDA guidance to $38 million – $40 million. GrowGen plans to have 55 garden center locations by the end of 2021.

StaffMarch 4, 2021

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This week has been unusually active as cannabis companies have been on a major buying spree.

Schwazze

Schwazze, which used to be known as Medicine Man Technologies Inc. (OTCQX: SHWZ) closed on the asset purchase of the five Star Buds dispensaries located in Colorado that it had not already previously bought. The acquired dispensaries are located in Aurora (2), Denver, Louisville, and Westminster. The company paid roughly $72.3 million, consisting of $27.5 million in cash, $26.9 million in sellers’ notes, and $17.9 million in Preferred Stock (at a price of $1,000 per share). Schwazze now owns and operates all 13 Star Buds locations in Colorado and its retail footprint now includes 17 dispensary locations in the Denver metro and southern Colorado region.

For 2020, the 13 Star Buds retail dispensaries generated total revenue of approximately $70 million and net income in the range of approximately 40% of revenue. Together with Schwazze and the proforma revenue for 2020 Mesa Organics Ltd, acquired by Schwazze in April 2020, total 2020 proforma revenue is estimated to be approximately $95 million on a combined basis.

Greenlane

Greenlane Holdings, Inc. (Nasdaq: GNLN) has bought the specialty silicone smoking accessory company Eyce for an undisclosed amount. The company said that the acquisition is expected to be immediately accretive to Greenlane’s revenue and earnings.

“Eyce is the definitive leader in premium silicone smoking products and a trusted Greenlane partner for more than seven years. We are very excited to welcome them as the newest addition to our in-house family of brands,” said Aaron LoCascio, Co-Founder and CEO of Greenlane. “Eyce’s premium products and innovative designs set them apart and we are thrilled to be working with the highly experienced and talented Eyce team to accelerate growth in the Greenlane brands portfolio.”

Mr. LoCascio continued, “The Eyce acquisition represents the latest step in Greenlane’s relentless focus to find and acquire the highest quality brands and platform extensions in the cannabis market to further drive our revenue growth and profitability and deliver value to our shareholders. We have carefully built a robust pipeline of targets and we intend to add additional brands to our portfolio in the near term as we continue to execute on this growth plan.”

Charlie Hoch, CEO of Eyce, added, “Greenlane has been an incredible partner over the years and their platform has been instrumental in enabling us to rapidly launch products into the market and build scale. We are thrilled to be joining the team and continuing to work together to accelerate development of the innovative products our customers demand.”

Terra Tech

Terra Tech Corp. (OTCQX: TRTC) said it was buying cannabis company UMBRLA, Inc., which was recently rebranded as Unrivaled for an undisclosed amount. Unrivaled is a swiftly growing and well-run diversified cannabis company comprised of several highly recognized cannabis brands complemented by distribution, manufacturing, and dispensary operations. Unrivaled brands include Korova, a top ten cannabis brand in California, among a strong portfolio across categories and price points.

Terra Tech’s CEO, Frank Knuettel II, said, “We are very pleased to have entered into this mutually beneficial transaction which leads to immediate scale, driven by strong brands and revenue growth. Unrivaled has grown markedly since inception, led by a strong management team, including Dallas Imbimbo, co-founder of KushCo Holdings, Inc. (OTCQX: KSHB) and Unrivaled. We intend to integrate Unrivaled’s management team into Terra Tech, whose robust leadership is capable of executing on high revenue growth and additional accretive acquisitions.”

Unrivaled operates manufacturing and distribution operations in both California and Oregon and dispensaries in California. Unrivaled owns and manages one of the largest distribution networks on the west coast with over 700 in-network dispensaries throughout Oregon and California, into which Unrivaled sells both its own brands and third-party brands across all major categories: flower products, vape cartridges, extracts, and edibles.

Knuettel added, “Following the restructuring of our balance sheet and bringing in new capital in January, this is the first of our anticipated strategic acquisitions building on the foundation formed by my predecessors. Our short-term goal is to become the premier West Coast and Southwest operator of cannabis assets with a focus on brands and dispensaries. Based on our growth trajectories and new operations coming online during 2021, we believe that the combined companies will generate revenues in excess of $70 million in 2021.”

Unrivaled CEO Dallas Imbimbo said, “Over the last two years Unrivaled has brought together some of the most well-respected brands in cannabis with Korova, LTRMN, Sticks, Cabana and The Spot. Terra Tech’s retail and cultivation assets perfectly complement Unrivaled’s modern brand portfolio, sophisticated R&D and state-of-the-art tech stack. Our mission continues to become the leading-edge global cannabis operator, and this merger will accelerate that path significantly. We would like to give a huge thank you to the Unrivaled team for their dedication and relentless pursuit of our goals.”

Debra BorchardtJune 25, 2020

Canopy Growth Corporation (NYSE: CGC) and Acreage Holdings, Inc. (OTCQX: ACRGF) stunned markets when the two companies agreed to an unusual deal in 2019. The agreement was that when cannabis was legalized in the U.S., Canopy would buy Acreage. It was called the “triggering event” and was originally valued at $3.4 billion. The price has dropped considerably.

A lot has changed since then and now the deal has changed accordingly. Acreage shareholders will now get an initial up-front payment of $37.5 million in connection with the modification of Canopy Growth’s rights, including the extension of the term, and give Acreage shareholders the ability to participate in upside potential upon the Triggering Event.

In addition to that CEO Kevin Murphy is resigning from the company.

Deal Changes

These are the major changes to the deal as outlined by the companies:

Canopy Growth will pay Acreage shareholders and certain convertible security holders an aggregate of $37.5 million (approximately $0.30 per Existing Share on an as-converted basis), with the final amount to be received by each holder determined based on the number of Existing Shares into which all of the eligible securities are convertible at the close of business on the record date for the distribution.
Acreage shareholders’ new Fixed Shares, each of which represents 70% of an Existing Share, will be entitled to receive 0.3048 of a Canopy Growth Share, representing a premium of approximately 120% to the June 24, 2020 closing price of the Existing Shares on the Canadian Securities Exchange.
Acreage shareholders will be entitled to participate in the long-term value created by Acreage, and in the U.S. cannabis industry generally, as a result of the Floating Shares which Canopy Growth may acquire in the future upon the occurrence or waiver of the Triggering Event at a price based upon the 30-day volume-weighted average trading price of the Floating Shares on the CSE relative to the trading price of the Canopy Growth Shares on the NYSE at that time, subject to a minimum of $6.41 per Floating Share.
There will be a creation of two new classes of shares in the capital of Acreage with each existing Acreage subordinate voting share (an “Existing Share”) being converted into 0.7 of a Fixed Share and 0.3 of a Floating Share (with proportionate adjustments for the existing proportionate voting shares and existing multiple voting shares)

CEO Murphy Out

Mr. Murphy has resigned as CEO but will continue to act as Chairman of the board of directors of Acreage and contribute to the strategic direction of the company. He is listed as owning 10% of the company’s stock. Director Bill Van Faasen, former Chairman, CEO, and President of The Blue Cross Blue Shield of Massachusetts will serve as Acreage’s Interim Chief Executive Officer until a permanent replacement has been identified.

“On behalf of the entire Acreage Board, I sincerely thank Kevin for his passion and commitment to building a leading cannabis enterprise across the United States,” said Douglas Maine, Chair of the Acreage Special Committee. “Kevin is a visionary entrepreneur and positioned Acreage for success in the U.S. cannabis industry. As we move forward with a renewed commitment by Canopy Growth and build upon the vision for the U.S., we are optimistic about the long-term growth prospects for our shareholders.”

“I am excited about this New Agreement and the creation of a pre-eminent and truly global cannabis company upon the occurrence of the Triggering Event. I believe the eventual federal permissibility of cannabis in the United States is inevitable and this New Agreement continues to allow our shareholders to become a part of a leading cannabis company following such changes. Moreover, as the largest shareholder of Acreage, I believe this New Arrangement allows all Acreage shareholders to participate in potential upside to their investments through the fixed exchange component of Canopy Growth stock and importantly the new Floating Shares” said Kevin Murphy, Chair of the Acreage Board.

Canopy Loans Acreage $100 Million

In connection with the New Agreement, Canopy Growth has agreed to loan a wholly-owned subsidiary of Acreage (“Acreage Hempco”), up to $100 million pursuant to a secured debenture. Canopy Growth will loan Acreage Hempco an initial $50 million on and subject to completion of the New Arrangement. The remaining $50 million will be subject to the satisfaction of certain conditions by Acreage Hempco. The Debenture will bear interest at a rate of 6.1% per annum.

“The United States is going to be a core market for Canopy Growth and this New Agreement solidifies our path forward with Acreage,” said David Klein, Chief Executive Officer of Canopy Growth. “I am excited to bring our relationship with Acreage back to center stage in our U.S. strategy and look forward to a time when the laws in the United States permit us to finalize this transaction as we march toward bringing our exciting beverage products to the US.”

Acreage Tumbled Quickly

Eyes were raised recently when Acreage announced that it agreed to a short term loan with an interest rate of 60%. Those terms rattled shareholders. That type of loan is akin to a payday loan and means the company must have really needed the money badly if it was willing to take those terms. The loan is secured by the company’s cannabis operations in Illinois, New Jersey, and Florida, as well as it’s U.S. intellectual property. If it can pay back the loan, In the event of default, the company is further obligated to pay to Lender an additional fee of $6 million.

Acreage was already selling assets and laying off employees after the company overextended itself in trying to become the largest cannabis company in the country. Acreage said it expects to record a pre-tax, non-cash charge of $80 to $100 million in the quarter ending March 31, 2020.

Canopy Growth’s Troubles

While Acreage has been struggling to right its ship, Canopy isn’t in much better shape. The company announced declining revenues and massive losses for the fourth quarter ending March 31, 2020. The net revenue in the quarter dropped by 13% sequentially to $107 million as the company blamed lower Canadian recreational revenue. Canopy Growth also delivered a staggering net loss of $1.3 billion in the quarter which was attributed to impairment and restructuring charges.

StaffJanuary 13, 2020

Acquisitions continue across the cannabis industry. Here is the latest:

Rogue Station

Rogue Station Companies, Inc. (OTC Pink: RGST) has acquired Brahman LLC, d/b/a Terpp Extractors, a Fort Collins, Colorado-based manufacturer of cannabis processing equipment in an all stock transaction. Rogue Station said it issued 3,000,000 shares of common stock to the owners of Brahman and immediately assumed management and operations.The value was not disclosed, but Rogue Station shares were lately trading at 13 cents, giving the shares an approximate value of $390,000.

Terpp Extractors is a manufacturer of Closed Loop Systems used in hydrocarbon extraction of cannabis concentrates and also re-sells specific scientific equipment, including vacuum and transfer pumps, tubing, storage and evac tanks and other devices necessary for “turn-key” cannabis extraction systems.

Lori Hainkel, CEO of Terpp Extractors stated, “This is an exciting time for all of the employees at Terpp Extractors and we are proud to be part of the team at Rouge Station Companies, Inc. My son Austin, founded Terpp Extractors in 2013 and was a great admirer of, and mentored by Grey Wolf and others at Skunk Pharms Research, during the early development phase and evolution of our hydrocarbon extraction systems. Joining Rogue Station Companies will jump-start our next step forward.”

John Conroy, CEO of Rogue Station Companies, Inc. commented, “We’re building a catalog of known brands in the cannabis space and this acquisition is a perfect fit for us. Terpp Extractors’ history and reputation will be part of the foundation we build on and the extraction equipment space is among the fastest-growing sectors within the cannabis industry. By emphasizing acquisitions in manufacturing, support, infrastructure and other “don’t touch the plant” fields, we expect our business to be scalable and national, regardless of delays in cannabis legalization efforts.

Our first priority related to Terpp Extractors is to increase inventory and our marketing exposure of the great products they produce including the MK3 and MK4 Extractors. These extractors can be used by a variety of customers within the cannabis space, including Extraction and Processing labs, growers, pharmaceutical companies, dispensaries in both the cannabis and hemp markets. Our extractors offer customers extremely high yield and the highest quality output at an affordable price. As the Cannabis and Hemp markets continue to explode, the demand for these extractors will follow market demand”.

Manifest 7

ManifestSeven (formerly known as MJIC) has acquired San Francisco-based legal cannabis delivery service company Lady Chatterley Health, which is focused on high-end women’s products for an undisclosed amount.

The company will be integrated into M7’s retail arm Weden, which has storefront and delivery operations across the state. The acquisition also gives M7 direct entry into the San Francisco market, complementing its licensed operations in Oakland and Brisbane.

“M7’s acquisition of Lady Chatterley Health is an enormous growth opportunity in a critical market, allowing us to directly service more than 640,000 residents over the age of 21, as well as the tens of millions of visitors who come to San Francisco every year,” said Pierre Rouleau, Chief Operating Officer of ManifestSeven. “Delivery is a cornerstone of our range of services, and this highly-scalable asset further expands our reach across California.”

Founded in 2015, Lady Chatterley Health has established a robust database of active retail customers in the highly-coveted Bay Area market, many of whom are women. This acquisition also broadens the market reach of M7’s subsidiary MyJane, created by women, for women, and specializing in curated product boxes.

“We’re thrilled to be joining with M7, a market leader that will allow Lady Chatterley Health to maximize our growth potential and continue to build on the exceptional service we offer,” said Stephen Kerford, Chief Executive Officer of Lady Chatterley Health. “Integrating into this powerful omnichannel platform also gives us access to a new universe of customers who’ll be able to access a wider variety of the safest, highest-quality cannabis products.”

Kaitlin DomangueNovember 6, 2019

TransCanna Holdings Inc. announced it is acquiring California-based Lyfted Farms, Inc. in a deal valued at $6 million. TransCanna is a Canadian-based company with its operations located throughout California. TransCanna operates the largest vertically integrated cannabis facility in the state.

The agreed-upon total purchase price was approximately $6,150,000. It will consist of: cash payment of $550,000 ($150,000 advanced as a deposit), the purchase of 2,660,750 common shares priced at C$0.80 per share, and an unsecured, non-interest bearing promissory note of $4,000,000. There will be restrictions on trading the shares based on applicable capital markets laws. The promissory note will be repaid if certain equity raises are completed on or before June 30th, 2020. The specified equity raise is dependent on Lyfted Farms completing certain specified production targets.

Upon completion of the agreement, Lyfted Farms will transition to TransCanna’s 196,000 square foot facility and begin production there. Lyfted founder, Bob Blink, said, “Our team is committed to TransCanna and is very excited about the next steps. As most investors have seen sentiment cool in the cannabis space recently, we feel this is the perfect opportunity to build a brand focused company. TransCanna’s business model addresses the problem of cannabis market fragmentation. It is with that in mind that Lyfted shareholders, myself included, have committed to significantly increasing our investment stake in TransCanna.”

“The greatest asset we are acquiring is the talent of Lyfted’s management team,” said Steve Giblin, CEO of TransCanna. “The Lyfted team is working in concert with the SolDaze and Daily teams from previous acquisitions, which has provided an immediate opportunity to substantially increase the scale of our operations. We welcome Bob Blink and his team to TransCanna and we appreciate their vote of confidence by significantly increasing their share position in our company.”

TransCanna provides what they call a “closed-loop ecosystem” for cannabis production. They say their closed-loop ecosystem allows for control of the plant from seed to sale, cost savings from vertical integration, centralized manufacturing, top industry talent in edibles, production, manufacturing, sales and distribution, a consistently high-quality product, and reliability. LyftedFarms is an indoor cannabis cultivation operation located in the Central Valley of California. They provide a hand-trimmed product to their customer base. They say their goal is “to consistently grow high-grade cannabis with only the most exceptional aroma, flavor, and finest quality.” Lyfted Farms products are tested by 2 River Labs in Sacramento.

Debra BorchardtSeptember 9, 2019

Medicine Man Technologies, Inc. (OTCQX: MDCL) has been on a dispensary buying binge this past couple of weeks. Today the company has added to that list of newly acquired properties. The company said it would be buying four additional dispensaries in Colorado from a leading cannabis retailer. The company’s total dispensary count will grow to 27 upon the successful closing of all the pending acquisitions.

Medicine Man Technologies will spend $50,096,413 for the four dispensaries, which will be a combination of $25,048,206.50 in cash and 4,202,720 shares of its common stock at a price of $2.98 per share, with a deferred cash payment of $12,524,103.25 to be made 12 months following the initial closing date.

“These four dispensaries to be acquired culminate a tremendous run over the last week in which we announced the planned acquisitions of 22 dispensaries in Colorado,” commented Andy Williams, Co-Founder and Chief Executive Officer of Medicine Man Technologies. “With an estimated 35% EBITDA margin, these retail stores are collectively expected to be some of the most profitable in our portfolio. We seek acquisition targets that meet strict operational and financial criteria, such as having a seasoned management team, commitment to high-quality products and services, and strong revenue growth.”

RootsRx

Last week Medicine Man Technologies said it was buying Roots Rx, a cannabis operator with six dispensaries located in the ski and mountain towns of Colorado. As part of the deal, the company will also get Roots Rx’s outdoor cultivation facilities located outside of Aspen. RootsRx cost $15 million and was also a combination of cash and stock. The six dispensaries that will be acquired in this transaction are located in Aspen, Basalt, Eagle–Vail, Edwards, Leadville, and Gunnison.

More Deals

Also last week, the company said it was buying Colorado Harvest Company, which operates two dispensaries in Denver and one in nearby Aurora. That deal cost $12.5 million and was also a combination of cash and stock. Still not done, the company also said it was picking up an additional four unnamed dispensaries for $36 million. Williams added, “This proposed acquisition of these additional dispensaries will continue the expansion of our retail presence in Colorado.”

TJ Joudeh, the Managing Partner of the group of retail operations being acquired by Medicine Man in this transaction, commented, “We are excited to join the Medicine Man Technologies team to create a profitable and vertically integrated cannabis company. Combining our retail experience with the deep product supply of award-winning cannabis products from Medicine Man Technologies will be an incredible development for both companies as well as for consumers.

Starbuds’ five dispensaries were grabbed for $31 million last week as well. “Adding these five dispensaries to our Colorado operations will make our vertical supply strategy more efficient and help us grab additional market share through added retail capacity,” said Williams. “The Starbuds dispensary operations are truly top-tier in terms of brand, revenue-per-location, and profit across the cannabis retail industry.”

Debra BorchardtJune 25, 2019

Surterra Wellness

Surterra Wellness announced the acquisition of Molecular Infusions, a Boston-based biotechnology research and development company that leverages innovative product delivery systems to improve the results of cannabis therapies. The acquisition expands Surterra’s research and development capabilities and establishes its first international footprint. Mi is a leader in cannabinoid formulation and delivery with proprietary technology platforms in oral, inhalation, and topical cannabis formats, each designed to improve overall user experience, provide market-leading dosing control, and deliver more predictable and targeted health benefits.

“Acquiring Mi reflects Surterra’s intention to aggressively expand our global research and product development capabilities to launch our next wave of cannabis brands that meet patient and consumer needs today and in the future. We see endless opportunities in cannabis 3.0 – where innovation, global brand building, and ability to scale globally will lead the way,” said Surterra Chief Executive Officer William “Beau” Wrigley, Jr. “Mi shares our long-term view and can execute in a big way. We welcome their world-class leadership and elite research teams who have blue-chip reputations and affiliations with top research and educational institutions. We look forward to disrupting the cannabis industry together.”

Driven Deliveries

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.

In addition to growing Ganjarunner’s customer base, the acquisition of Ganjarunner will allow for Driven to leverage its brand-to-consumer model across virtually the entire state of California. The subsidiary will provide Driven with multiple fulfillment centers, an additional delivery license in California, and a unique technology platform that will allow for improved efficiency. Ganjarunner has shown continuous revenue growth since its inception. During the previous 12 months, the Ganjarunner, Inc. successfully completed 18,854 deliveries to more than 7,748 customers and has experienced year over year revenue growth of 49.3%. As a subsidiary of Driven, Ganjarunner is projected to reach $4.1 million in revenue by the end of 2019.

Nabis Holdings

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.

“Our goal for strategic investments at Nabis is to enter multiple aspects of the cannabis sector including related technology,” said Shay Shnet, CEO & Director of Nabis. “The Cannova team is focused on developing innovative solutions addressing an industry-wide concern to have the ability to better measure cannabis consumption. We are thrilled to have closed our 49% interest acquisition enabling the Cannova team to bring this disruptive technology to market at an increased pace.”

“At Cannova we are developing unique solutions addressing the unmet need for reliable and customized cannabis consumption. The combination of cannabis with smart and innovative technology is key to the future of both medical and recreational cannabis usage,” said Omri Schanin, Founder & CEO of Cannova. “We are excited to work with the Nabis team leveraging their extensive experience and capabilities to help us reach our growth goals faster.”

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