Surterra Wellness Archives - Green Market Report

William SumnerWilliam SumnerOctober 7, 2019
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4min2170

It’s time for your Daily Hit of cannabis financial news for October 7, 2019.

On the Site

NBA Veteran Al Harrington’s Viola Closes on $16m Financing Round

NBA veteran Al Harrington’s Viola closed on a $16 million funding round led by Gotham Green Partners. This is the first institutional investment in the company. The company said that this latest round of funding will assist with the acquisition of a 34,500 sq. ft cultivation, processing and distribution facility in Adelanto, California as well as the completion of Viola’s 48,000 sq. ft facility in Detroit, Michigan. The funds will also enable Viola to continue to advance the growth of the company’s personnel with key new hires that will continue to establish Viola as a leader in the cannabis marketplace.

Surterra Wellness

Surterra Wellness today announced that it has changed its corporate name to Parallel effective today. In June, Private cannabis company Surterra Wellness closed on the initial $100 million Series D funding round and expanded its Board of Directors.  The company noted back then that the participants in the round included existing and new investors including former Patrón Spirits Company CEO, Ed Brown.

The Power That Data Has On Brand

Knowledge is power and the more data you have the better choices you can make for your brands. Akerna has been gathering data through its MJ Platform and will demonstrate how this data can be used for success with your brand. This panel was taped at the green Market Summit on September 11 in Los Angeles.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced that Health Canada has approved the company’s plan to expand its facility in Mississauga, Ontario from from 17,800 sq. ft. to 51,800 sq. ft. The expansion will include additional cultivation capacity, a commercial kitchen, formulation rooms and increased primary and secondary packaging capacity. “Achieving this approval milestone is a crucial step in our plan to cultivate premium grade cannabis at scale for distribution to the EU and other international markets,” said Michael Nashat, CEO of TerrAscend.

Emerald Health Therapeutics

Emerald Health Therapeutics (TSXV: EMH) (OTCQX: EMHTF) announced that its subsidiary, Verdélite, has a received a license amendment from Health Canada for the complete growing and processing area in its 88,000 square foot indoor facility. This will allow the company to increase its production space from 4 to 21 highly-controlled-environment grow rooms and to a total of 16 processing rooms. “This new license amendment allows Verdélite to transition into its full commercial phase and positions Verdélite as a key growth contributor to Emerald’s financial results in 2020,” said Riaz Bandali, CEO of Emerald Health.


Debra BorchardtDebra BorchardtOctober 7, 2019
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4min6430

Surterra Wellness today announced that it has changed its corporate name to Parallel effective today. In June, Private cannabis company Surterra Wellness closed on the initial $100 million Series D funding round and expanded its Board of Directors.  The company noted back then that the participants in the round included existing and new investors including former Patrón Spirits Company CEO, Ed Brown.

Brown was once the President and CEO of The Patrón Spirits Company, until retiring last year after nearly 20 years at the company. Under his leadership, Patrón grew from 118,000 cases sold in 2001 to more than 4.1 million in 2016, and is currently the top-selling ultra-premium tequila in the world.  Brown’s plan to apply his expertise in the premier spirits business to Surterra’s strategic global brand building seems to be paying off.

“The introduction of our new parent company brand, under the name Parallel, reflects our transformational growth over the past year and our long-term vision. We need a corporate name that unites the diverse parts of our organization and all of our associates,” said William “Beau” Wrigley Jr, CEO and Chairman of Parallel. “We chose the name Parallel because we are improving the well-being of our consumers today through our proprietary, innovative brands while at the same time stepping into the future through robust innovation. We like the name because we see well-being along a spectrum of what quality of life means to different people at different points of their lives, and our brands cover the full range of what they need.”

Parallel also announced today the introduction of Goodblend, the company’s new global retail brand. This store brand will become a recognized source across multiple markets where consumers can find a consistent and trusted selection of the company’s cannabinoid brands. Goodblend will roll-out initially in Florida over the course of the next several months. Parallel has a house, or portfolio, of consumer brands. Each of these brands has its own instantly recognizable name, imagery, appeal, and unique and differentiated positioning. Our proprietary consumer brands include Surterra Wellness, Coral Reefer, Endless Summer and Float.

“The philosophy behind our collection of brands is that the consumer is at the heart of everything that we do. Because consumers have different needs states across the well-being continuum, each brand is distinct. Yet, all our brands focus on improving the lives of our consumers and reflect our uncompromising commitment to consistency, quality, safety and efficacy,” said Wrigley. “Goodblend will simply reinvent what retail can be. Goodblend stores will be welcoming and inclusive of all our consumers and will allow each of our distinct brands a chance to shine – having their own stage under one roof.”

Parallel’s integrated footprint includes 37 retail dispensaries across the United States, including 34 in Florida; almost one million total square feet of cultivation and manufacturing operations across the platform; R&D facilities in Massachusetts, Florida, Budapest, Hungary and Medellin, Colombia; and an exclusive partnership with global biotechnology company Intrexon to drive its science and technology-led innovation.


William SumnerWilliam SumnerJuly 9, 2019
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5min3990

It’s time for your Daily Hit of cannabis financial news for July 9, 2019.

On the Site

Caliva

Shawn “JAY-Z” Carter announced online today that he will enter into a multi-year partnership with Caliva as Chief Brand Strategist. The statement said that he will play a crucial role in driving creative direction, outreach efforts, and strategy for the brand. Caliva is one of the largest vertically integrated cannabis companies in California and has quickly become a market leader in cannabis consumer products in the state.

Radient Technologies

Cannabis and hemp extractor Radient Technologies Inc. (TSXV: RTI)(OTCQX: RDDTF) reported that the company lost C$18 million in its financial results for the fiscal year ending March 31, 2019.The company only reported revenues of C$214,060 for the year and expenses of C$18,319,167. The cost for that revenue was C$131,249. On a positive note, the company’s cash balance at the end of its fiscal year totaled C$31,752,852, representing an increase of $9,897,548 from March 31, 2018.

Executive Spotlight: Erin Gore, Founder & CEO of Garden Society

Erin Gore is founder and CEO of Garden Society, a California-based, cannabis-focused benefit corporation serving women in search of new, more holistic ways to rejuvenate from the rigors of their daily lives. Garden Society creates artisanal confections and sun-grown pre-rolls that connects biodynamic farming, sustainable ingredients and strain-specific cannabis in a variety of products.

Green Growth Brands

Cannabis retailer Green Growth Brands Inc. (CSE: GGB)(OTCQB: GGBXF) is acquiring MXY Holdings LLC also known as Moxie in an all-stock deal valued at $310 million. The deal is expected to close within six months. Moxie is located in three states at this time, California, Nevada, and Pennsylvania. Michigan is set to be the fourth state. The products are in 250 dispensaries, which is a retail relationship that GGB would like to leverage.  Moxie provides customers with high-quality recreational and medical cannabis products.

In Other News

Surterra Wellness

The medical cannabis provider Surterra Wellness announced today that it has appointed Fareed Khan as Chief Financial Officer (CFO), who will be responsible for corporate finance, investor relations, tax and shared services activities. Formerly serving as the CFO for the Kellogg Company, Khan helped drive the company’s corporate strategy to include revitalizing key brands through targeted investment and transforming the company’s portfolio through mergers and acquisitions. “Fareed’s track record of translating strategy into initiatives that drive growth for both private and public companies, across a number of industries, will propel our continued success,” said  Surterra CEO and Chairman  William “Beau” Wrigley, Jr.

KushCo Holdings

KushCo Holdings, Inc. (OTCQX: KSHB) announced today its financial results for the third quarter ending on May 31, 2019. Net revenue was $41.5 million, representing a quarter-over-quarter increase of 17.9%.On a GAAP basis, gross profit was 17.8%. On a GAAP basis, the net loss was $10.6 million, up from $9.2 million in the same period of the previous year. Cash on hand is approximately $12.2 million.  “We expect demand to increase for the Company’s core product offerings as the cannabis and hemp markets continue to expand and mature. Our customer base is gaining strength with the largest multi-state operators and Canadian LP’s starting to scale in existing markets, while also preparing for growth in new emerging geographies – including recently approved Illinois,” said KushCo Chairman and CEO Nick Kovacevich.


William SumnerWilliam SumnerJune 27, 2019
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4min5990

It’s time for your Daily Hit of cannabis financial news for June 27, 2019.

On the Site

Green Growth Brands

After a trial period of selling the Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) CBD line called Seventh Sense Botanical Therapy products, Abercrombie & Fitch (A&F) has decided to carry the products in 160 stores. The expansion includes Seventh Sense’s CBD-infused body lotions, muscle balms, lip balms, and sugar scrubs, and is Green Growth Brands’ second major wholesale agreement since the passage of the Agriculture Act of 2018 in December 2018.

Executive Spotlight: Dr. Jared Helfant, Co-Founder and President of Sparx Cannabis

At Sparx, Dr. Helfant applies his expertise to oversee operations, branding, and marketing. With a proven track record of providing top-tier, customer-facing services and long-term strategic planning, his knowledge helps facilitate budget analysis, marketing strategies, and partner relationships.

In Other News

Surterra Wellness

The medical cannabis company Surterra Wellness announced that it had closed a $100 million Series D funding round. So far, the company has raised over $300 million in private capital. Proceeds from the funding will go towards expansion initiatives such as strategic acquisitions and infrastructure capital expenditures. Surterra also announced that it had expanded its board of directors to include Ed Brown, Surterra’s Executive Director, and its Executive of Operations, Kevin Fisher.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced today that it had acquired both Glendale Greenhouse and Phytotherapeutics Management Services, LLC. Glendale Greenhouse is a vertically integrated cannabis business operating a cultivation and processing facility with a 20,000 square foot production facility capable of producing 3,600 pounds of flower annually. Glendale also owns a 1,500 square-foot dispensary and the master lease on the 15,000 square-foot multi-tenant building where the dispensary is located. Phytotherapeutics Management Services, LLC operates under the license of Phytotherapeutics of Tucson, LLC. Once the transaction is closed, the Phytotherapeutics’ license would be transferred to Curaleaf and apply to a newly developed, flagship dispensary.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA:ARAH) has closed a $40.25 million over-subscribed public offering. Leading the offering was Mackie Research Capital Corporation and BMO Capital Markets, and included Canaccord Genuity Corp. “We are excited to close this financing and strengthen our balance sheet as we solidify and accelerate the expansion of our cannabis health and wellness ecosystem, in Canada, and globally,” said Aleafia Health CEO, Geoffrey Benic. “This is a key step enabling management to execute on its business plan and to drive operational results creating value for shareholders.”


William SumnerWilliam SumnerJune 18, 2019
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7min4080

It’s time for your Daily Hit of cannabis financial news for June 18, 2019.

On the Site

Luxury Cannabis is Not Going Away Anytime Soon

The world of cannabis is becoming more refined. When California first legalized medical cannabis in 1996, the only way one could purchase cannabis legally was through darkly-lit dispensaries with bars on the windows that were squirreled away in industrial parks. More than two decades later, the cannabis industry has evolved to a point where its consumers are more sophisticated and discerning, giving rise to a new sub-market within the industry: Luxury Cannabis.

MediPharm Labs

MediPharm Labs Corp. (LABS.V) (MEDIF) (MLZ.F) has applied to list its common shares on the Toronto Stock Exchange (TSX). MediPharm Labs continues to trade on the TSX Venture Exchange under the symbol “LABS”. This follows the company’s announcement that it had closed its previously announced bought deal offering of 13,514,000 common shares in the capital of the company at a price of $5.55 per common share for aggregate gross proceeds of C$75 million.

Surterra Wellness

Biotech company Intrexon Corporation (NASDAQ: XON) and cannabis company Surterra Wellness (Surterra) announced an exclusive global licensing agreement.  The two companies will join forces to help Surterra’s cannabinoid production by using Intrexon’s proprietary yeast fermentation platform. According to the company statement, yeast fermentation of cannabinoids provides advantages over conventional plant-based extraction.

Flowr Corp.

The Flowr Corporation (TSXV: FLWR)(OTC: FLWPF)  has received a loan commitment from a syndicate of lenders led by ATB Financial in its capacity as lead arranger and administrative agent for up to $50,000,000 of committed senior secured credit facilities.

Executive Spotlight: Ben Kovler, CEO, Founder & Chairman of Green Thumb Industries (GTI)

Ben Kovler brings his extensive experience managing complex operating companies and his deep commitment to philanthropy as Founder, CEO and Chairman of Green Thumb Industries.

In Other News

California Cannabis Enterprises

California Cannabis Enterprises (CCE) announced that it has appointed Daryl Kato as its Chief Operating Officer. Kato is the former chief financial officer (CFO) and board director at Nissin Foods USA and finance manager for confections and snacks at Nestle USA. “With an aggressive plan for continued growth and a commitment to expand our family of companies and world-class brands, attracting top talent like Daryl will give us a competitive advantage as the cannabis marketplace expands and matures,” said CCE CEO Kyle Kazan.

CAVU Resources

CAVU Resources, Inc. (OTCMKTS: CAVR) announced that it has applied to trade under a new symbol, “KUSH.” The change was requested because the company wants its symbol to reflect the new cannabis-focused direction the company is taking. CAVU is also seeking a regional accounting firm to provide audit services for 2017, 2018 and the current year to date 2019 so that it can start the procedure of up-listing to OTCQB.

Delta 9 Cannabis

Delta 9 Cannabis Inc. (TSXV: NINE) (OTCQX: VRNDF) announced that its previously announced offering will be for an offering size of a minimum of $10,000,000 and up to $14,000,000. Priced as $1,000 per unit, the company will issue between 10,000 and 14,000 convertible debenture units. The offering is being co-led by Mackie Research Capital Corporation, as sole bookrunner, and Canaccord Genuity Corp. as co-lead agents.

Jushi Holdings

Jushi Holdings Inc. (NEO: JUSH.B) has entered into an agreement to acquire an unnamed Phase I Medical Marijuana Dispensary Permit holder and three provisional Phase II Medical Marijuana Dispensary Permit holders for an aggregate of approximately $63 million. Of the $63 million, $27.11 million will be paid in cash, $27.5 million will be paid through the issuance of certain 10% secured notes, and the remaining balance will be paid through the issuance of approximately 3.38 million shares to the sellers of the purchased companies.


Debra BorchardtDebra BorchardtJune 18, 2019
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6min14630

Biotech company Intrexon Corporation (NASDAQ: XON) and cannabis company Surterra Wellness (Surterra) announced an exclusive global licensing agreement.  The two companies will join forces to help Surterra’s cannabinoid production by using Intrexon’s proprietary yeast fermentation platform. According to the company statement, yeast fermentation of cannabinoids provides advantages over conventional plant-based extraction.

The Proprietary Tech

The $100 million deal, including milestones and royalties, is meant to bring new cannabis products to market with greater supply chain security, in a more consistent, efficient and cost-effective way. Intrexon’s proprietary yeast strain engineering enables fermentative production of cannabinoids – the compounds in cannabis plants that produce various health and wellness effects – as well as other cannabinoids not found in the plant itself.

The proprietary fermentation process develops strains of yeast that can produce a wide spectrum of cannabinoids, including those that are rare and difficult to extract, at a large scale. The process introduces plant genes into yeast, screens for best cannabinoid strains for productivity and purity, and isolates those with prized health benefits. The high-throughput technology approach can analyze thousands of yeast strains a week.

“This significant and strategic investment with Intrexon means Surterra can ramp up our research and development of specific cannabinoids, to ultimately craft cannabinoid products to meet the future demands and needs of our customers.  This transformative deal with Intrexon gives us a leading edge as we enter a new paradigm in cannabis, where the industry leaders will be those who have expertise in building global brands and in research and innovation. Imagine a day when technology and science leads to breakthrough cannabis-based therapeutic alternatives to pharmaceuticals that can be made available to consumers globally,” said Surterra Chief Executive Officer William “Beau” Wrigley, Jr.

Deal Terms

Intrexon will receive a $25 million technology access fee – $10 million in cash upfront and $15 million in Surterra common shares. Additionally, Intrexon expects to receive approximately $20 million in R&D expense reimbursement over the next five years, developmental milestones on each cannabinoid developed, and royalties on each cannabinoid commercialized.

“Intrexon has a successful history of being an innovator and remains on the cutting edge of multiple industries, including food production, disease treatment and now cannabis.  After meeting with RJ and the team, as well as visiting their microbial production lab in Budapest, it was clear we had found our partner for this exciting project,” said Jay Holmes, Executive Director of Strategy at Surterra Wellness and architect of the deal.

This is the second strategic deal between Surterra and Intrexon in three months, with the first partnership focusing on Intrexon’s Botticelli next-generation plant propagation technology to improve Surterra’s cannabis plant production efficiency, yield, and quality for Surterra’s specific cannabis cultivars in Florida.


Debra BorchardtDebra BorchardtAugust 6, 2018
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4min7472

It’s time for your Daily Hit of cannabis financial news for August 6, 2018.

Surterra Wellness

William “Beau” Wrigley, Jr. has joined Surterra’s Board of Directors as Chairman. Additionally, Surterra Wellness closed a $65 million Series C equity fundraising round in July, led by Wrigley’s direct investment arm. The round brings Surterra’s total capital raised to over $100 million since 2015.

Surterra Wellness is one of the fastest growing and leading medical cannabis companies in the US. With licenses in Florida and Texas, Surterra is currently expanding into new state markets across the country as it builds the industry’s broadest portfolio of brands trusted by patients.

Surterra plans on using the funds across a number of strategic initiatives in Florida and Texas. Plans include constructing substantial cultivation space in Florida, executing multiple partnerships with premier consumer brands, and accelerating its product development initiatives. In addition, Surterra will conduct clinical research trials related to cannabinoid treatment of anxiety, pain, and PTSD, as well as other significant health issues facing the country, with cannabinoids.

Mentor Capital Inc. 

Mentor Capital, Inc. (MNTR), an M&A and funding provider for the cannabis and medical marijuana sector, will start to trade on the OTCQX Best Market effective today. We are delighted to be moving up to OTCQX,” said Chet Billingsley, Chairman, and CEO of Mentor Capital, Inc. “When we shifted to the medical marijuana market in 2013, we committed to bring professionalism and integrity to the cannabis sector like we had encountered both in Silicon Valley and while working in cancer-related biotech outside of San Diego, which we feel is signaled by this move to OTC Market’s top tier. Those high standards also link to a tangible investor advantage. Accordingly, this upgrade is a significant milestone for Mentor Capital, and we believe a step towards increasing the liquidity of our stock.”

About Mentor Capital: The company seeks to come alongside and assist private medical marijuana and cannabis companies and their founders in meeting their liquidity and financial objectives, to add protection for investors and to help incubate larger private cannabis companies.

The Greater Cannabis Company, Inc.

The Greater Cannabis Company, Inc. (GCAN)  acquired Green C Corporation through a Share Exchange Agreement dated July 31, 2018. Green C is a Canadian company focused on innovative drug delivery systems for the Cannabis industry and has an exclusive worldwide license for PharMedica’s “Eluting Transmucosal Patch Platform” for non-invasive drug delivery for use in the Cannabis field.

On July 31, 2018, the Company and Green C Corporation closed on a Share Exchange Agreement whereby the Company issued to the holders of Green C’s common stock a newly designated Preferred Stock titled Series A Convertible Preferred Stock for all of the issued, and outstanding shares of common stock of Green C. Upon closing, Green C became a wholly owned subsidiary of the Company.



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