It’s time for your Daily Hit of cannabis financial news for December 6, 2018.
On The Site
TILT has begun trading on the Canadian Securities Exchange under the ticker symbol “TILT” and also acquired the cannabis distribution company Blackbird Holdings Corp. for USD $50 million. The company has released further details about its previously announced acquisition of Standard Farms.
Standard Farms is a multi-state medical cannabis company that focuses on extraction and cultivation, and its products are in approximately 95% of Pennsylvania’s dispensaries. TILT has acquired Standard Farms for $12 million in cash and $28 million in securities.
Ascend Wellness has plans to become the leading cannabis operator in the Massachusetts, Michigan and Illinois markets and it just got a big jump on the effort. This vertically-integrated cannabis operator completed its latest equity fundraising round.
Ascend raised $40M with the completion of this round and is developing licenses in three major cannabis states that are just beginning to build their markets: Massachusetts, Michigan, and Illinois. Combined, they create the largest market east of the Mississippi, which is equivalent in size to California or Canada, two of the most profitable Cannabis regions in the world.
In Other News
Acreage Holdings (ACRG.U) is investing $160M in Form Factory, a multi-state manufacturer and distributor of cannabis-based edibles and beverages. Form Factory allows the company to bring the same quality, consistency and innovation to cannabis products and Big Beverage and CPG bring to the products on the shelves on Target, Walmart and Amazon. The acquisition will allow cannabis consumers to receive consistent, quality products anywhere they purchase them, allow regulators to oversee distribution in a way never before manageable and establish Acreage Holdings to be at the forefront of interstate commercial deliveries of cannabis once legalized.
Canopy Growth Corporation (WEED.TO) (CGC) has finalized an all-cash transaction to acquire Storz & Bickel GmbH & Co. KG, related entities, and IP for a purchase price of up to approximately €145 million. With a 22-year track record of breakthrough innovations, Storz & Bickel is widely recognized as the global leader in vaporizer design and manufacturing.
Based in Tuttlingen, Germany, Storz & Bickel are designers and manufacturers of medically approved vaporizers, most notably the Volcano® Medic and the Mighty® Medic. Storz & Bickel has spent the last two decades developing an automated and internationally certified factory, achieving ISO 13485 certification in 2009. The company has exported devices to 50 markets around the world.
Young America Capital
Young America Capital, the 55 person licensed investment bank and broker-dealer based in Mamaroneck, NY is pleased to announce the successful sale of 100% of the stock of San Felasco Nurseries, Inc., a holder of an authorization to operate as a Medical Marijuana Treatment Center in the state of Florida that can produce, process and dispense medical marijuana products. Each Medical Marijuana Treatment Center is allowed to operate up to 25 dispensaries in the State of Florida, subject to increase in certain circumstances.
MedMen Enterprises Inc. (MMEN.CN) (MMNFF) announced the hiring of Michael W. Kramer, a veteran finance executive with a proven track record at retailers such as Apple Inc., Abercrombie & Fitch and Forever 21, as Chief Financial Officer. Kramer’s three decades of experience include serving as chief financial officer of Apple Retail, where he developed successful brick and mortar retail strategies. He also oversaw 12 quarters of increased year-over-year earnings for Abercrombie & Fitch.
Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) announced the hiring of Bryan Semkuley to the senior leadership team as President of Sproutly to accelerate the Company’s strategic objectives of becoming a leading cannabis formulations company focused on beverages. Bryan Semkuley is a seasoned executive with over 30+ years leading global innovation and marketing teams for Fortune 200 companies including Kimberly-Clark (NYSE:KMB), Anheuser-Busch InBev (NYSE:BUD), and Labatt.