LivWell Archives - Green Market Report

Debra BorchardtSeptember 12, 2022

PharmaCann, one of the nation’s largest privately held, vertically integrated cannabis companies, is buying all four locations of The Clinic, a group of boutique Colorado marijuana dispensaries. The amount paid was not disclosed.

The planned acquisition will likely see all The Clinic locations rebranded to the popular LivWell brand. Upon completion of the acquisition, LivWell, the state’s leading cannabis brand, will enjoy the largest presence in Colorado with 26 dispensaries in the Centennial State.

The Clinic’s dispensary locations are within the Denver metro area and offer award-winning cannabis products and accessories to both recreational customers and medical patients.

“PharmaCann’s acquisition of The Clinic’s dispensaries expands our presence in Colorado, bolstering the LivWell brand’s prominence as a locally renowned cannabis brand in the state with strong ties to local communities,” said Brett Novey, CEO of PharmaCann. “We look forward to continuing to bring our world-class cannabis products to the patients and customers of Colorado’s largest dispensary footprint.”

Upon completion of the planned acquisition, PharmaCann’s operations will include 26 LivWell dispensaries in Colorado. PharmaCann currently operates 55 dispensaries and nine cultivation and production facilities across eight states.

“When we started LivWell 13 years ago this October, we never imagined becoming part of one of the largest and most admired cannabis companies in Colorado, let alone the nation,” said Chris Mapson, PharmaCann’s Vice President of Marketing. “Joining the PharmaCann family and continuing to grow the LivWell brand through acquisitions solidifies LivWell as the largest brand in Colorado and one of the most recognizable and respected brands in the U.S.”

The closing of the transaction is subject to state and local regulatory approvals.

StaffOctober 12, 2021

Privately-held PharmaCann Inc. is buying Colorado-based LivWell Enlightened Health for an undisclosed amount. Once the deal is closed, PharmaCann and LivWell would operate approximately 60 dispensaries and 11 cultivation and production facilities across eight states.

LivWell has grown from a single location to a multi-state cannabis company with operations in Colorado and Michigan. LivWell is a vertically integrated seed-to-sale cannabis retailer. In addition to cultivating cannabis, LivWell researches, extracts, and manufactures its own brands to consistently bring its customers quality products across multiple categories including topicals, edibles, tinctures, CBD pet tinctures, concentrates, and vaporizers.

“It is a privilege to join teams with LivWell, one of the longest-tenured cannabis operators in the industry, with a shared commitment to improving people’s lives through cannabis,” said Brett Novey, CEO of PharmaCann. “This transformative merger significantly increases PharmaCann’s presence in the second and third-largest cannabis markets in the U.S. and provides a strong foundational team and operational platform for PharmaCann’s further expansion into new states. Together we will implement best practices across all of our operations and build upon LivWell’s strong brand and expertise in producing low-cost, high-quality products.”

At one time, MedMen was going to buy PharmaCann, but that deal fell through in 2019. Since then the company has remained private and currently operates four medical cannabis retail stores and a cultivation facility in New York. In June 2021, Pharmacann raised almost $80 million in a private offering of Senior Secured Notes. In August it was reported that the company submitted paperwork for an IPO to U.S. and Canadian regulators. The company reportedly did $75 million in revenues in 2019 and is said to have doubled that number in 2020.

“We are excited for this partnership with a stalwart of the U.S. cannabis industry,” said John Lord, Founder, and CEO of LivWell Enlightened Health. “PharmaCann’s undeniable financial expertise and LivWell’s proven operational leadership makes this merger the perfect combination to further the patient and customer experience on an expanding national level.” The company said it expects that John Lord will join the PharmaCann Board of Directors following the closing of the transaction.

Canaccord Genuity Corp. served as financial advisor and Perkins Coie, LLP served as legal advisor to PharmaCann. Canaccord Genuity Corp. also provided a fairness opinion to the board of directors of PharmaCann.

Debra BorchardtJuly 23, 2018

Target Capital Inc. d.b.a. CBi²Capital (TSXV: TCI) and 51st Parallel Inc. have combined forces to become LivWell International Corp. The Calgary-based LivWell International will be listed on both the CSE and TSXV. The new company will be focused on cultivation, processing and extraction, retail operations, and the execution of an aggressive cannabis-brand acquisition, licensing and development strategy.

As a part of the deal, 51st Parallel is making a $20 million investment in Denver-based GCH, Inc., which will give the company exclusive Canadian licensing rights to GCH’s flagship brand Willie’s Reserve and Willie’s Remedy. The products license the name of country and western star Willie Nelson who is known for being an avid cannabis consumer. LivWell will also get the first option for any additional Willie products.

“We are excited about this transaction with CBi² and 51st Parallel,” said John Lord, Chairman, and CEO of LivWell. “The upcoming federal legalization of the Canadian cannabis market provides a unique opportunity to leverage our ten years of operational expertise and expand the full suite of LivWell brands across Canada and internationally. We look forward to creating a successful, high-growth business and delivering value for both our customers and shareholders.”

Management Team

According to the company statement, LivWell International will be led by the existing management team of LivWell Enlightened Health: John Lord (Chairman and CEO), Dean Heizer (Executive Director), Michael Lord (Chief Operating Officer), Todd Oltmans (Manager of Construction and Facilities), Nate Fate (Manager of Cultivation and Production) and Dakeana Jones (Manager of Human Resources). Joining LivWell’s team will be David Cheadle as LivWell International’s VP Finance and Chief Financial Officer and Sony Gill as Corporate Secretary.

Upon completion of the business combination involving CBi² and 51st Parallel, LivWell International’s board of directors will be comprised of the following professionals: John Lord, Dean Heizer, Andy Williams (Co-founder and Chairman of Medicine Man Technologies Inc.), Jason Kujath (Co-founder and President of 51st Parallel) and Ron Hozjan (VP Finance and CFO of Tamarack Valley Energy Ltd.).

In connection with the GCH Transaction, Sonny Mottahed, Chairman, President, and CEO of CBi² and CEO and a director of 51st Parallel, will join the board of directors of GCH.

“This is a highly transformative transaction for our company and our shareholders. The LivWell team is recognized as the most accomplished operator in the global cannabis industry, bringing the experience and knowledge needed to position LivWell International to compete with other industry leaders,” said Sonny Mottahed, Chairman, President, and CEO of CBi² and CEO and a director of 51st Parallel. “The investment into GCH, the owner of Willie’s Reserve, represents the beginning of a broader brand strategy to augment our existing retail and distribution plans.”

Terms

According to the company, each common share of 51st Parallel will be exchanged for common shares of CBi² on the basis of a deemed value of $0.11 per CBi² Share and CBi² and 51st Parallel will be amalgamated to form LivWell International. In conjunction with the closing of the Transaction, 51st Parallel has entered into an agreement with a syndicate of investment dealers led by Eight Capital and including Cormark Securities Inc., Canaccord Genuity Corp., AltaCorp Capital Inc. and Atlas Capital for a brokered private placement offering of subscription receipts of 51^st Parallel at an issue price to be determined in the context of the market on a best efforts agency basis for aggregate gross proceeds of up to $50.0 million. The Financing is expected to close on or about August 21, 2018. Each Initial Subscription