Cresco Labs Archives - Green Market Report

Kaitlin DomangueKaitlin DomangueFebruary 13, 2020
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4min4260

Its time for your Daily Hit of cannabis financial news for February 13th, 2020. 

On the Site

Meet the Weedy Award Finalists 

The founder and Editor of WeedWeek, Alex Halperin, has created the Weedy Awards, with winners being announced on February 28th in Hollywood. Awards will be presented in categories like best grow, the most socially responsible company, the best delivery company, the best edibles, and the people’s choice cannabis celebrity. 

Aurora Cannabis Stock Slides as Revenue Falls

Canadian-based Aurora Cannabis Inc. (NYSE: ACB) saw its shares falling in early trading after the company said that revenues fell in the second quarter of fiscal 2020 ending December 31, 2019. Aurora reported that its total net revenue reported in Canadian dollars fell 26% sequentially to $56 million in the second quarter from $75 million in the first quarter of 2020. It was higher than the 2018’s second quarter, which delivered net revenue of $54 million.

Neptune Wellness Delivers Solid Quarter as Sales Increase

Neptune Wellness Solutions Inc.  (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for its fiscal third-quarter ending December 31, 2019. Total revenues for Neptune were $9.1 million, a sequential increase of $2.6 million or 41% over the second quarter ended September 30, 2019. This was also an increase of $2.6 million or 40% compared to $6,538 for the three-month period ended December 31, 2018. 

In Other News

SLANG Worldwide Partners with Cali Cannabis Cookie Company 

SLANG Worldwide Inc. (CNSX: SLNG), leading cannabis consumer packaged goods company, has partnered with Cookies, a leading California-based cannabis brand. 

Pursuant to the deal, SLANG will bring Cookies’ products to the Oregon market. 

Cresco Labs Expands C-suite

Cresco Labs will name marketer Greg Butler as its first-ever Chief Commercial Officer. Butler has past supported the brand in a CMO capacity, developing the commercial growth strategy for the brand. He has strong plans to develop Cresco’s market in 2020, as well as promoting diversity and social equity in the cannabis space. 


StaffStaffFebruary 3, 2020
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5min4970

Monday looks to be the closing day on deals with Cresco Labs and Curaleaf.

Cresco Labs

Cresco Labs (CSE: CL) (OTCQX: CRLBF) closed on its recently announced non-brokered credit agreement for a senior secured term loan of $100 million. Cresco Labs says it has an option to increase the size of the facility to a maximum of $200 million. Curaleaf said it will use the money to pay for the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets.

Charlie Bachtell, CEO, and Co-founder of Cresco Labs said, “The closing of this financing is an important event and was driven by the incredible opportunities we at Cresco have before us. We have worked to create a credit facility that strengthens our balance sheet in a non-dilutive manner – with no warrants nor convertibility to equity. This transaction demonstrates that capital is available to the top operators in this industry who demonstrate a disciplined strategic focus, a responsible allocation of capital, and a track record of operational execution. We are especially pleased to have closed the transaction with such a high-quality group of investors who have displayed a dedicated commitment to the long-term success of Cresco as we continue to execute our vision – to build the most important company in cannabis.”

The Senior Loan is for either an 18-month or 24-month term, at the lender’s option. The Loans bear interest at a rate of approximately 12.7% per annum for 18-month loans and approximately 13.2% for 24-month loans, payable quarterly in arrears.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said that it closed its acquisition of vape brand Select on February 1Curaleaf’s acquisition of Cura Partners, Inc. who are the owners of the Select brand, includes Select’s manufacturing, distribution, marketing, and sales operations marketed under the Select brand name, including all intellectual property.

“The close of the Select deal is a major milestone in Curaleaf’s history and marks an unprecedented phase of growth for our company,” said Joseph Lusardi, CEO of Curaleaf. “As we’ve scaled, Curaleaf has pioneered the U.S. cannabis industry, and we’re incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest-growing cannabis brands in the country.”

Select founder  Cameron Forni will take on the role of President of Select. Curaleaf Chief Financial Officer Neil Davidson will now be the company’s Chief Operating Officer effective immediately. Mr. Davidson will manage the company’s cultivation, processing and manufacturing capabilities with a focus on driving growth and operational efficiencies across the entire organization. Former Chief Operating Officer Stuart Wilcox will transition to a new role, leading business expansion efforts in emerging markets.

The news comes on the heels of Curaleaf’s acquisition of the Acres Cannabis vertical operations in Nevada, and the awarding of preliminary retail and processing licenses in Utah.

“Curaleaf has always been a fast-paced, performance-driven company, and we continue to attract best-in-class talent to fill key management roles. We’re thrilled to be expanding our leadership bench to include individuals with unmatched expertise combined with a deep passion for this business,” said Lusardi.


StaffStaffJanuary 23, 2020
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4min7010

Cresco Labs (CSE: CL) (OTCQX: CRLBF) announced it has entered into a credit agreement for a senior secured term loan for an initial amount of up to $100 million, with a mutual option to increase the size of the facility to a maximum of $200 million. Cresco said it expects to complete an initial drawdown of up to $100 million on or about January 30, 2020. The stock was recently trading at $6.32, above its year low of $4.47, but below the 52-week high of $14.39.

“This agreement reflects the strength and growth potential of the national platform Cresco has built as well as our ongoing commitment to execute a superior capital agenda for the benefit of shareholders,” said Charlie Bachtell, CEO, and Co-founder of Cresco Labs. “Through this deal, we have diversified the Company’s funding sources, improved our cost of capital in a non-dilutive manner and given ourselves flexibility in a dynamic capital environment. As we enter 2020 and our business continues to increase its positive free cash flow, Cresco is well-positioned to continue growing its foothold in the most strategic cannabis markets in the U.S., while building the most important company in the industry.”

The company said that the proceeds from the Senior Loan will be used to fund the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets.

Balance Sheet Moves

Over the last quarter, the company has been making moves to strengthen its finances through a number of deals. In December, the company said it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million. In November, Cresco announced a sale-and-leaseback agreement for its Marshall, Michigan and Yellow Springs, Ohio facilities, which totals $38 million. Cresco was also forced to amend its $800 million merger with Origin House, due to a combination of market forces and falling stock prices. After making some changes to the merger, which included an Origin House equity financing worth around $30 million, the value of the deal fell to roughly $416 million.

Illinois

The legal adult cannabis sales in Illinois have gotten off to a very strong start with almost $11 million in sales in the first week alone. Cresco Labs said on the first day it had served 3,145 people at its five Sunnyside Dispensaries located in Lakeview, Elmwood Park, Champaign, Buffalo Grove, and Rockford, Illinois. They sold 9,258 cannabis products, including Cresco’s house of brands and items from other Illinois suppliers, with the average ticket price being $135.

Loan Details

According to the company statement, members of the management and board of directors will also be participating as investors in the Senior Loan. Each commitment under the Senior Loan may be for an 18-month or 24-month term, at the lender’s option. Loans made on the initial closing date will bear interest at a rate of approximately 12.7% per annum for 18-month loans and approximately 13.2% for 24-month loans, payable quarterly in arrears. The terms of the Senior Loan were negotiated at arm’s length with the agent and lead investor and include customary restrictive covenants.


Debra BorchardtDebra BorchardtJanuary 8, 2020
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3min11000

As the cannabis industry faces pressure, the valuation retractions have caused several proposed deals to unravel. The lastest is between Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF). Bhang and its wholly-owned operating subsidiary, Bhang Corporation has terminated its agreement with Origin House and its wholly-owned subsidiary, Kaya Management, Inc.

With regards to the termination agreement, Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

Bhang has said that it will use Trava, Inc. and Herban, Inc. to make Bhang-branded products in California. In addition, Bhang said that it has also contracted Shelf-Life Distributing to distribute these Bhang-branded products across California. The company stated that moving from a licensing model to a direct-to-retail model will allow it to control the use of its brand while substantially increasing its footprint throughout California and realizing operations-derived revenue rather than royalties.

Last month,  the company said that Jamie L. Pearson, Bhang’s Interim President, would assume the role of President & CEO, overseeing day-to-day management and strategic initiatives

Origin House

Earlier this week, Origin House said that it had received a final order from the Ontario Superior Court of Justice approving the plan for Cresco Labs Inc. to buy all of the shares of Origin House. The company said it expected to close the deal soon. Originally announced in April, this deal was valued at C$1.1 billion or C$12.68 per Origin House Share (based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29). The deal looked to be the largest public company acquisition in the history of the U.S. cannabis industry.

The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.

Origin House has not made a comment regarding the termination of the deal with Bhang.


Kaitlin DomangueKaitlin DomangueJanuary 2, 2020
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5min17811

The highly anticipated adult-use cannabis program in Illinois rolled out yesterday morning. The maximum amount of dispensaries allowed in the state for 2020 is 185, though only 43 licenses were approved at the time of the state’s new industry launch. Six of these approved licenses were not able to begin sales on the 1st for various reasons. 

The open dispensaries hosted a huge turnout for those hoping to be among the first to purchase recreational cannabis products in Illinois. Chicago based Cresco Labs expected as such and rented out an entire nearby coffee shop for patrons to take shelter from the cold while they wait. Among one of the first to purchase was Julia Stratton, lieutenant governor of Illinois. She told the Chicago Tribune she purchased gummies at the Sunnyside dispensary in Chicago.

Cannabis giant, Green Thumb Industries opened a store called Rise Joliet in Illinois. Rise Joliet brings GTI’s total store count to 40 nationwide. Founder and CEO Ben Kovler says, “January 1 was a historic day in Illinois as adult-use cannabis sales launched in Illinois, and we’re honored that Rise Joliet is part of that history. Our stores that sell to all adults 21+ – Rise Mundelein, Rise Canton, Rise Joliet, and 3C Joliet – have served thousands of people so far and the energy and enthusiasm from new customers has been overwhelming.”

Cresco Labs announced that they served 3,145 people at its five Sunnyside Dispensaries located in Lakeview, Elmwood Park, Champaign, Buffalo Grove and Rockford, Illinois on the first of the year. They sold 9,258 cannabis products, including Cresco’s house of brands and items from other Illinois suppliers, with the average ticket price being $135.

Though Illinois voted yes to this program with great enthusiasm, many are not impressed with the taxes. This receipt a customer shared from yesterday’s rollout shows the high taxes in Illinois on adult-use cannabis. There were seven different taxes on this purchase, the medical standard tax, local sales tax, local excise tax, Illinois sales tax, Illinois recreational tax on a product with less than 25% THC, Illinois recreational tax on an infused product, and Illinois recreational tax on a product with greater than 35%. The total tax on this purchase added up to $75.85. 

There is also concern that the state is putting profits above its citizens who are medical cardholders. Illinois medical marijuana program launched in 2014. Illinois had one of the strictest medical cannabis laws in the state, but until the adult-use cannabis program patients usually had no problems obtaining their medicine. 

Darren Miller, cannabis advocate, patient, and entrepreneur credits his life to cannabis. He was denied his medicine two days before the rollout of the adult-use program. The dispensary where he has purchased his medicine for years without issue, claimed low supply when he went to purchase it. On January 1st, thousands of folks got their recreational product without issue. Miller says, “They went from about 50 kinds of cannabis flower to three overnight. Then the recreational thing starts and all of a sudden they have no problem finding product to sell for major money markup. All of the patients who have been going there for four years, we actually saw this coming. We called it, and now we are witnessing it.”

The adult-use market in Illinois has been projected by Marijuana Business Daily to potentially generate up to $2.5 billion annually, depending on how many tourists take part in purchasing cannabis products. 

 


William SumnerWilliam SumnerDecember 12, 2019
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5min3730

It’s time for your Daily Hit of cannabis financial news for December 12, 2019.

On the Site

Cresco Labs Shores Up Its Balance Sheet, Sells Property for $50 Million

The Illinois-based Cresco Labs (CSE: CL) (OTCQX: CRLBF) is looking to shore up its balance sheet by selling off one of its properties. Today the company announced that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million. Though Cresco is technically selling the property, which is still under construction, the company has entered into a triple-net lease agreement with GreenAcreage and will continue operating on the property as a licensed medical & recreational cannabis cultivation and processing facility.

Industry Power Women Awards Three During MJBiz Conference

The women’s cannabis networking organization known as Industry Power Women joined forces with Accelerate Cannabis during the 2019 MJ Biz Conference to recognize three individuals and their efforts within the cannabis industry. During the Mid-Atlantic Mixer, Saphira Galoob, Erica Daniels and Kristin Jordan each received engraved crystal awards in recognition of their work.

In Other News

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced the execution of several financing agreements. First, the company executed a term sheet for a non-brokered offering of subordinate voting shares worth $27 million, which is expected to close on or around December 18, 2019. MedMen also announced an amendment to the terms of a senior secured convertible credit facility arranged by Gotham Green Partners, securing an additional $10 million in funding. In addition to the two financing agreements, the company executed a binding term sheet in respect of certain amendments to the definitive agreements for the $78 million senior secured term loan, which is expected to mature on January 31, 2022.

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of a hemp-based line of CBD products. Dubbed “First & Free,” the new line of products will include a variety of formats such as soft gels, oil drops, and creams. The products will be made available through the company’s new e-commerce site www.firstandfree.com.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) today signed a definitive agreement for its first sale-leaseback with NewLake Capital, valued at $35 million. The agreement involves six properties across three states (California, Illinois, and Massachusetts), and totals approximately 127,000 square feet of space. The transaction includes a dispensary in San Diego, California; a dispensary in Chicago, Illinois; dispensaries in Greenfield and Lowell, Massachusetts; and two cultivation and manufacturing facilities in Lowell, Massachusetts and Aurora, Illinois. “As our markets come on-line and mature, we intend to demonstrate the power and scale of our economic model by generating positive cashflow at the individual product, facility and market levels, as well as on a consolidated basis,” said Nicholas Vita, Chief Executive Officer of Columbia Care.


William SumnerWilliam SumnerDecember 12, 2019
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3min15720

The Illinois-based Cresco Labs (CSE:CL) (OTCQX:CRLBF) is looking to shore up its balance sheet by selling off one of its properties. Today the company announced that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million.

“This Agreement is representative of the comprehensive approach to capital planning that we anticipate will ensure our future success, while enabling us to grow our footprint both rapidly and responsibly,” says Charlie Bachtell, Cresco Labs CEO and Co-founder. “We have several opportunities right in front of us, including in our home market of Illinois, which will be moving forward with adult-use legalization on January 1st and is projected to reach $2 billion to $4 billion in annual sales at maturity.”

Though Cresco is technically selling the property, which is still under construction, the company has entered into a triple-net lease agreement with GreenAcreage and will continue operating on the property as a licensed medical & recreational cannabis cultivation and processing facility. Once completed, the facility will be around 220,000 feet and help the company maintain its considerable share of the Illinois medical cannabis market.

“We are confident that today’s announcement, together with the measured steps we continue to take to strengthen our capital position and continue investing in strategic U.S. cannabis markets, will generate significant returns for our shareholders, our employees and the communities in which we operate,” added Bachtell.

Over the last quarter, the company has been making moves to strengthen its finances through a number of similar deals. Last month Cresco announced a sale-and-leaseback agreement for its Marshall, Michigan and Yellow Springs, Ohio facilities, which totals $38 million. Cresco was also forced to amend its $800 million merger with Origin House, due to a combination of market forces and falling stock prices. After making some changes to the merger, which included an Origin House equity financing worth around $30 million, the value of the deal fell to roughly $416 million.


Debra BorchardtDebra BorchardtDecember 9, 2019
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2min9670

Cresco Labs (CSE:CL) (OTCQX:CRLBF) has completed its first harvest from its expanded cultivation facility in Lincoln, IL. The state will begin sales of legal adult-use cannabis on January 1 and is projected to be a $2-4 billion dollar market once it has matured and is expected to be one of the largest cannabis markets in the country.

Cresco has an advantage in the marketplace as the only operator in the state with three cultivation facilities and currently has 25% of the share in the medical market. It has 35,000 square feet of cultivation space across the three facilities.

“Cresco Labs has worked tirelessly to bring additional capacity to the Illinois cannabis market. The beneficial changes in the medical law created a rapid increase in demand that has recently outpaced supply. With this first harvest out of the expanded Lincoln facility, we are thrilled to bring this additional capacity to the patients of Illinois and the consumers in the soon to launch adult-use program,” said Charlie Bachtell, Cresco Labs CEO and Co-founder. “With the scale of this expansion phase, additional incremental production from the expansion areas will gradually increase ramping up for market distribution starting now and accelerating late Q1 through Q2. The ability to restock shelves reliably to ensure customers always have access to product is key to both generating solid financial results and building long term customer loyalty with medical patients and adult-use consumers.”

According to the company’s statement, “The company embarked on an ambitious expansion plan that will bring the total area under cultivation to approximately 243,000 square feet by year-end. At the Lincoln location alone, Cresco has created the largest cultivation facility in Illinois at roughly 224,000 sqft and added over 140,000 sq ft of additional indoor and greenhouse cultivation space. Cresco is legally entitled to expand its three facilities to have an aggregate total of 630,000 sqft of flowering canopy – the largest capacity footprint in the state.”


Debra BorchardtDebra BorchardtDecember 3, 2019
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4min8520

Cresco Labs Inc.  (CSE:CL) (OTCQX: CRLBF) said that it has entered into an equity distribution agreement with Canaccord Genuity Corp. in which the company may sell up to C$55 million of subordinate voting shares. Cresco Labs said that it will use the money “for general corporate purposes (including funding ongoing operations and/or working capital requirements), to repay indebtedness outstanding from time to time, discretionary capital programs and potential future acquisitions.”

The deal is called at “At The Market” since the shares will be distributed at trading prices at the time of the sale, prices may vary between purchasers and during the period of distribution. The company said that the volume and timing of sales, if any, will be determined at the sole discretion of the company’s management and in accordance with the terms of the Equity Distribution Agreement.

While such a deal could bring in additional capital, it will also dilute existing shareholders.

Earnings

Cresco recently released its earnings as the company reported on November 26 that its third-quarter revenues were $36.2 million, up 184% year-over-year and 21% quarter-over-quarter. Still, the company delivered a third-quarter net loss of $8.6 million, compared to net income of $1.2 million in the prior-year period.

With regards to the balance sheet, Cresco said it had total assets of $416.5 million, including cash and cash equivalents of $73.7 million and a working capital position of $144.6 million with zero debt on the balance sheet. The company also announced a sale-and-leaseback agreement for its Marshall, Michigan and Yellow Springs, Ohio facilities for $38 million which is expected to close within 30 days.

“In Q3, our team delivered another quarter of positive adjusted EBITDA while growing top-line revenue 21% over Q2 on an identical asset base, demonstrating the value of our long-term strategy of going deep, in the most populous states, and capturing significant market share through wholesale,” said Charles Bachtell, Co-founder and CEO of Cresco Labs. “Subsequent to the end of Q3, we closed the acquisition of Valley Agriceuticals, giving us four dispensaries in New York, one of the most significant hubs of consumer influence in the world. In California, the other market that has an outsized influence on U.S. and global consumer behavior, our wholesale revenue more than doubled in the quarter. We are making meaningful progress on our objective of creating the first national cannabis brand.”

Illinois

With Illinois poised to begin recreational sales in 30 days, the company is ready to seize on its market advantage in the state. Bachtell added, ” One of the best short-term opportunities is in Cresco’s backyard, as Illinois transitions to adult-use legalization in January of 2020. We are well-positioned in the state and will continue to rapidly expand our cultivation and processing footprint, to ensure Cresco will have a strong first-mover advantage. Our brand portfolio has already proven to be popular in Illinois, capturing the largest share of the market, and we are well-positioned to maintain our market share and grow it through the adult-use transition and beyond. Illinois is a perfect example of the success of our strategy to get into prospective markets, go deep, build strong brands and capture disproportionate market share. As we move into 2020, we are set to repeat this model across our platform.”


Debra BorchardtDebra BorchardtNovember 27, 2019
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6min8610

The bear market for the cannabis industry is leading to the unwinding of deals that had great promise. Cannabis companies are no longer willing to write big checks with fingers crossed that the market will just continue to boom. Two of these deals were terminated after great fanfare.

Cresco Labs

Cresco Labs (CSE:CL) (OTCQX:CRLBF)  said it was ending its plan to acquire Florida-based VidaCann Ltd. which was originally announced on March 18, 2019. It was valued at $120 million when it was first announced.

“We recognize that responsibly allocating our shareholders’ capital is fundamental to long-term success. While it sometimes means making tough decisions, we are committed to executing on a superior capital agenda, responsibly accelerating the top and bottom-line, executing thoughtful and accretive M&A transactions, and generating efficiencies as we scale,” said Cresco Labs CEO and Co-founder Charlie Bachtell. “With the flexibility to continue to leverage non-dilutive funding options like sale-lease-back agreements, we are well-positioned to continue executing on our strategy to build the most important, enduring company in U.S. cannabis.”

In March, VidaCann was said to have plans to have 20 operating dispensaries by the end of 2019 and licenses for up to 30 in the state. It was to be Cresco’s entry into the lucrative market and another state to plant the Cresco Flag.

Separately, the company also announced the signing of a binding agreement for the sale-and-leaseback of two properties in Ohio and Michigan, for total additional funding of approximately $38 million.

Mr. Bachtell continued, “With these two announcements, we have effectively strengthened our balance sheet to the tune of nearly $158 million between new non-dilutive funding and the elimination of a significant near-term cash outlay earmarked for the Transaction. The team and operations at VidaCann are phenomenal, but with a focus on managing our cost of capital, and ensuring the most efficient and highest return on invested capital, the ability to deploy resources to other, existing, Cresco markets that are widely considered some of the top markets in the US, like Illinois, Pennsylvania, California and Nevada, has to take priority.  We believe it’s in the best interest of our shareholders to re-allocate resources to these existing higher return opportunities with a view to looking for a more capital efficient way to enter the Florida market over the longer term.”

Cresco Labs stock was up slightly by four cents to lately trade at $5.79, down from its 52-week high of $40.63.

SOL Global

SOL Global Investments Corp.’s (CSE: SOL) (OTCPK: SOLCF) said it decided against its deal with MCP Wellness to that was agreed to on April 23, 2019. SOL was to buy MCP Wellness for $35 million in cash and S$115 million in equity consideration in CannCure.

MCP is the Merida Capital Partners affiliate that owns the rights to own three Michigan cultivation licenses, a processing license, 9 licensed and operating dispensaries and 6 additional dispensary licenses, giving it the largest retail footprint in the state of Michigan.

According to the statement, both MCP and SOL Global said that “current market conditions do not support a transaction of this size, and both parties and their respective shareholders are better served focusing capital and resources on building out their respective businesses.” SOL Global said it will remain focused on the scale-up of its rapidly expanding Florida operations via One Plant Florida, and MCP said it will focus on opening additional dispensaries and launching a cultivation facility in Michigan.

While the acquisition is off, MCP Wellness may use Northern Emeralds (which SOL Global has proposed to buy)  to provide cultivation and processing standard operating procedures to MCP for a to be agreed upon royalty. The statement said that the $12.5 million advanced by SOL Global to MCP Wellness will be repaid in full over the next 12 months in monthly installments and 2 balloon payments at the 6 and 12 month time frames. In addition to that, CannCure, which is SOL Global’s portfolio company,  will have the option to acquire certain assets from MCP Wellness, convert any amounts due into stock in the Michigan operator, or complete the originally contemplated transaction on substantially similar terms.



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