It’s time for your Daily Hit of cannabis financial news for February 3, 2020.
On the Site
Cresco Labs (CSE: CL) (OTCQX: CRLBF) closed on its recently announced non-brokered credit agreement for a senior secured term loan of $100 million. Cresco Labs says it has an option to increase the size of the facility to a maximum of $200 million. Curaleaf said it will use the money to pay for the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said that it closed its acquisition of vape brand Select on February 1. Curaleaf’s acquisition of Cura Partners, Inc. who are the owners of the Select brand, includes Select’s manufacturing, distribution, marketing, and sales operations marketed under the Select brand name, including all intellectual property.
GW Pharmaceuticals (NASDAQ:GWPH) has filed a supplemental marketing application in the U.S. seeking approval to use Epidiolex (cannabidiol) oral solution to treat seizures associated with tuberous sclerosis complex, a rare inherited disorder characterized by the growth on non-cancerous tumors in many parts of the body. It affects approximately 40-80 thousand individuals in the U.S. and nearly one million people worldwide.
Zynerba Pharmaceuticals (NASDAQ:ZYNE)reported that it has successfully achieved patient screening target in its 14-week CONNECT-FX (Clinical study of Cannabidiol (CBD) in Children and Adolescents with Fragile X) trial assessing the efficacy and safety of Zygel CBD Gel in children and adolescents ages three to 17 with full mutation Fragile X syndrome.
Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) signed a definitive agreement to acquire Oregon-based Tozmoz, which is a wholly-owned subsidiary, TZ Acquisition, Inc. for roughly $2.8 million. Tozmoz is a cannabis extractor that was founded in 2015 as one of the first Oregon Liquor Control Commission licensed processors in the state. Golden Leaf bought all of the assets of Tozmoz, including the facility located in Clackamas, which serves as the headquarters for approximately $2.8 million. The deal consisted of cash and advances totaling $675,000, an earnout of up to $400,000 and GLH stock (29,166,667 shares at US$.06 per share).
In Other News
Whoopi & Maya has ceased operations. According to LA Cannabis News, “A rift had developed between Whoopi Goldberg and Maya Elisabeth that was irreconcilable. When this happened several months ago, Cusick and others tried to resolve the problem and thought they had reached an agreement. But on Friday, January 31, Goldberg submitted her resignation to the board. The divorce was final.”
Co-founder and board member Rick Cusick told CelebStoner, “The company is ceasing operations immediately,” he says. “It’s with deep regret that we can no longer provide services to patients.”
Innovative Industrial Properties, Inc. (NYSE: IIPR) closed on a sale-leaseback transaction with Green Thumb Industries Inc. (GTI) (CSE: GTII; OTCQX: GTBIF) for its licensed cannabis processing facility in Toledo, Ohio. The purchase price for the property was $2.9 million (excluding transaction costs). GTI is also expected to make certain improvements to the property, for which IIP has agreed to provide reimbursement of up to $4.3 million. Assuming full reimbursement for such improvements, IIP’s total investment in the property will be $7.2 million.
This sale-leaseback transaction mark IIP’s second acquisition and lease with GTI, with a prior sale-leaseback transaction for GTI’s licensed medical cannabis cultivation and processing facility in Pennsylvania completed in November of last year.
Aurora Cannabis Inc. (NYSE: ACB) has received European Union Good Manufacturing Practice certification. EU GMP certification is granted to companies whose production facilities demonstrate a high degree of quality and consistency in their manufacturing procedures and is a requirement for the export of medical cannabis products into most European markets.