It’s time for your Daily Hit of cannabis financial news for April 28, 2020.
On The Site
High Times Holding Company has announced that it is buying 13 planned and operational California dispensaries from Harvest Health & Recreation Inc. (OTCQX: HRVSF) in what the company described as a “mostly stock deal” and is valued at $80 million. High Times said it intends to fully transform the cannabis retail stores to become High Times destinations. High Times Holdings plans to revamp the existing design and rebrand each dispensary to fit the High Times.
This follows High Times’ previous announcement to buy two dispensaries, one in Los Angeles and one in Las Vegas. However, neither of those announced acquisitions has closed just yet.
Green Horizons, a consumer insights firm for the cannabis space, released a detailed 42-page report exploring the “attitudes, usage, and market potential for cannabis and cannabis products.”
The study revealed that many of the stereotypes commonly associated with cannabis users are not as true as society once believed. The firm followed 1,100 U.S. adults over the age of 18, with an oversample of cannabis users to match their true proportion in the population.
According to the report, cannabis users typically make as much money as non-users, with $59.7k representing users and $57.5k for non-users. This demolishes the myth that cannabis users are automatically lazy, with no drive or motivation to be successful.
Whether they designate marijuana’s special day as 4/20, 4:20, or 420, for many cannabis and cannabis-derived product manufacturers and retailers, April means packing the calendar with special promotions, alluring discounts, and commemorative events.
Lisa Gee, Director of Marketing & CSR for Colorado dispensary chain Lightshade, shared that her company hosted a Virtual 4/20 Party with up-and-coming Colorado-based artists, DJs, a comedian, and a cannabis chef. Narmin Jarrous, Executive Vice President of Business Development for Kushy Punch affiliate Exclusive Brands, noted that the company hired 10 new people in retail to help with 4/20, a week that saw record highs in social media engagement and an overall sales increase of 40% over the previous week.
In Other News
Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced the closing of the previously announced private placement offering of $1,000 principal amount of 8.0% secured convertible debentures (and subscription receipts for aggregate gross proceeds of $28 million
TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) said that as a result of the impact caused by COVID-19, the Company will rely on exemptive relief provided by British Columbia Instrument 51-515 Temporary Exemption from Certain Corporate Finance Requirements, which provides up to 45 days for issuers to complete filings required to be made on or prior to June 1, 2020. The Company continues to work in close coordination with its new auditors on the filings, which the Company will submit during the 45 day exemption period. As previously announced, TILT appointed a new audit firm in December 2019
Aleafia Health Inc. (OTC: ALEAF) announced that the Hon. Julian Fantino and Raf Souccar have today indicated their intention to resign as directors of the Company effective May 15, 2020.