Bluma Wellness Archives - Green Market Report

StaffStaffJanuary 9, 2020
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SOL Global Investments Corp.’s  (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with  Goldstream Minerals Inc. (NEX: GSX.H). The companies entered into a letter of intent dated January 8, 2020, outlining the proposed terms and conditions.  Goldstream will buy a 100% interest in CannCure and then do a reverse takeover by the shareholders of CannCure. The deal is expected to close on or near March 31, 2020.

CannCure will be called “Bluma Wellness Inc.” with operations in Florida via One Plant Florida which is also known as 3 Boys Farm and in California with premium flower cultivator Northern Emeralds. The company said that the LOI was negotiated at arm’s length.

“Bluma will continue to execute on its plan to cultivate and deliver to patients and consumers the highest quality cannabis flower and flower derived products in the coveted Florida marketplace via One Plant Florida, and in California with premium flower producer Northern Emeralds. Bluma will also remain laser-focused on the responsible scale-up of its operations in both Florida and California with a continued focus on its proprietary home delivery model paired with strategically located flagship stores (that will also serve as delivery hubs) and efficient and data-driven premium flower cultivation”, said SOL Global CEO Brady Cobb.

Cobb, who is currently the CEO of SOL Global, will move over to become the CEO and Chairman of Bluma Wellness. SOL Global also stated that it will be the largest shareholder of Bluma. Former CannCure shareholders will become Bluma Shareholders.

“It has been an honor to lead one of the most dynamic and forward-thinking cannabis investment companies, and it’s has been my distinct privilege to work alongside our dedicated team as we assembled an amazing portfolio of cannabis, CBD and Esports investments” continued Brady Cobb. “My strengths have always been on the operations side, and I’m thrilled at the prospect of being able to focus exclusively on scaling up our operations in Florida and California and delivering value to our shareholders.”

Goldstream is listed on the NEX board of the TSX Venture Exchange, the company plans to delist the Goldstream shares from the NEX and then move to the Canadian Stock Exchange. SOL Global will stay at the CSE and the company said that it will not change its business to “that of a life sciences issuer operating as a multi-state cannabis operator in the United States.”

Valuation

In addition to the reverse takeover announcement, SOL Global also reported that Canadian firm Duff & Phelps completed a valuation of its portfolio of private and public investments and concluded that the value of the Investment Portfolio, as at November 30, 2019, was in a range between $165.2 and $182.4 million with a midpoint of $173.8 million.

The company said that it has 54,459,256 common shares issued and outstanding and the valuation implied an NAV per share of approximately $1.70. The stock was lately trading at 40 cents per share with a market cap of $19 million as per Yahoo! Finance.


Debra BorchardtDebra BorchardtAugust 30, 2019
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 SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) reported a loss of $43.5 million for the first fiscal quarter versus a loss of $2.9 million for the same period in 2018.  The loss came to 81 cents per share for the quarter. The company attributed the loss to a devaluation of cannabis stocks totaling $33.5 million and expenses, with total expenses coming to $10.9 million for the quarter.

The main culprit was Sol Global’s investment in Verano Holdings, which is set to be acquired by Harvest Health & Recreation. As such, the Verano share price is linked to Harvest’s share price which has decreased significantly. In just that quarter the company experienced an unrealized loss of $55.9 million.

“It was a tough quarter for the Cannabis sector and that’s the primary reason for our unrealized loss.  The positive is that’s exactly what it was, unrealized. Brady continues to execute with tremendous success on CannCure and its transformation to Bluma Wellness while strategically building out his operational team and The Bluma Board. Paul Norman has built the foundation of an executive team and board that is simply unprecedented in this newly pioneered sector and their execution is what you would expect from a team of this caliber.” said SOL Global’s Chief Investment Officer Andrew DeFrancesco. “The investment team and I continue to provide the financing for growth while continuing to provide guidance toward strategy and execution for those core holdings. ”

The downturn hasn’t slowed the company. Last month, SOL Global bought 42% of Heavenly Rx Ltd. at a price of approximately $0.40 per share. The company also signed an agreement to acquire ECD, Inc., which operates as Humboldt County’s Northern Emeralds for $120 million payable in common shares. Northern Emeralds is expected to operate under Bluma Wellness.

SOL Global also plans to buy the Michigan-based MCP Wellness Inc. for a total of $35 million in cash and $115 million in common shock. MCP Wellness is presently operating three dispensaries in the Detroit area, is opening a fourth dispensary in Ann Arbor, and is finalizing plans to construct a cultivation facility.

In addition to that acquisition, SOL Global has signed a binding LOI to acquire six licensed cannabis dispensary companies and all One Plant intellectual property in California for $17 million, payable by $5 million in cash and $12 million in common shares, from Three Habitat Consulting Holdco Inc. that will subsequently operate under the nationally recognized “One Plant” brand. One Plant is expected to be the brand name of all of Bluma Wellnesses anticipated 49 retail stores spread throughout Florida, Michigan and California.



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