The Daily Hit is a recap of cannabis business news for August 22, 2022.
ON THE SITE
SNDL Buys Valens in C$138 Billion Deal
SNDL Inc. formerly known as Sundial (Nasdaq: SNDL) is buying The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) in a deal valued at C$138 million. That’s an implied value of $1.26 per Valens share, which is currently selling at XX. SNDL has secured a non-revolving term loan that has been refinanced and upsized with an additional C$14.3 million of incremental capital, increasing the term loan to C$60 million. There is an $8 million termination fee attached to the transaction and Valens shareholders will own approximately 9.5% of the combined company. Read more here.
Pennsylvania Health Department Drops Appeal to Ban Vapes
The Pennsylvania Department of Health withdrew its appeal to the Supreme Court of Pennsylvania to recall various vaporized medical cannabis products after a half-year pushback from advocacy network Medical Marijuana Access and Patient Safety. Read more here.
Colorado Loses Cannabis Crown as New Markets Rise
Water isn’t the only thing drying up in the West. Legacy cannabis markets, such as Colorado, face increased headwinds from a crowded supply side and new markets, according to a report from cannabis data firm Headset, all of which points to a market correction. Read more here.
Potential Winners in Germany’s Cannabis Market
As markets mature in the U.S., some companies are turning their focus to Germany. Canadian companies have faced tremendous competition causing many business models to break down. Too many licenses and plunging prices have forced several companies to merge or restructure. In the U.S., the California market is in disarray over outrageous taxes and a resurgent illicit market, while Colorado learns that having a first market advantage doesn’t mean it’s lasting. Read more here.
Greenrose Reports Earnings
The Greenrose Holding Company Inc. (OTC: GNRS, GNRSW) posted increasing losses for the consecutive quarter as its cultivators navigate demand headwinds. The multi-state cannabis SPAC (special purpose acquisition company) reported its second-quarter financials ending June 30, 2022. While Greenrose reported approximately $9.2 million in rising revenue during the period, the company’s second-quarter net losses totaled $10.3 million, down 132% sequentially; versus a net income of $3.3 million in the same period last year. The earnings were a loss of $0.63 cent per share versus a loss of $0.92 cents in the first quarter. Read more here.
IN OTHER NEWS
MedMen Enterprises Inc., Green Sentry Holdings LLC
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF), a cannabis retailer with operations across the United States, today announced the close of a $67 million deal with Florida-based private company Green Sentry Holdings LLC for the company’s Florida-based operations, including its license, dispensaries, inventory, and cultivation operations. The deal is comprised of $63 million in cash and approximately $4 million in liabilities to be assumed by Green Sentry. The deal also includes the license of MedMen’s trademarks in the state. Read more here.
ETF Mangers Group LLC
ETF Mangers Group LLC (ETFMG®), a thematic ETF issuer, announced today that ETFMG Alternative Harvest ETF (NYSE Arca: MJ), the world’s first cannabis ETF, will complete its global portfolio by offering exposure to cannabis companies operating in the United States which include multi-state operators (MSOs) directly involved in the cultivation, production, marketing and distribution of cannabis or cannabis-related products. Read more here.
Bright Green Corporation
Bright Green Corporation (Nasdaq: BGXX), a company selected by the U.S. government to grow, manufacture, and sell, legally under federal and state laws, cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export, today reported financial results for the quarter ended June 30, 2022. Read more here.
Resonate Blends, Inc.
Resonate Blends, Inc. (OTCQB:KOAN), a cannabis holding company, today provided a corporate update covering its recently filed Q2 2022 financial report and the advancement of overall operations. Read more here.
22nd Century Group, Inc.
22nd Century Group, Inc. (Nasdaq: XXII), an agricultural biotechnology company developing reduced nicotine tobacco, hemp/cannabis, and hops advanced plant technologies, today announced that it will ring the Nasdaq closing bell on Friday, August 26, 2022, celebrating the launch of VLN®, the only combustible cigarette authorized by the U.S. Food and Drug Administration that “Helps You Smoke Less.” Read more here.
Cannbit-Tikun Olam Israel
Cannbit-Tikun Olam Israel (TASE: TKUN) today reported that the company’s production facility in the north of Israel and cultivation farm at the Dead Sea were received the EU-GMP certification which, required for the commercial export of medical cannabis to Europe. Read more here.