It’s time for your Daily Hit of cannabis financial news for January 19, 2021.
On The Site
Billion Dollar Club
As states report cannabis sales numbers for 2020, record highs continue across the country. It’s become a billion-dollar business for several states, blowing out levels that states had estimated when originally planning legalization.
The Colorado Department of Revenue reported that cannabis sales in the state passed $2 billion in sales from January – November 2020.
Adult-use cannabis retailers in Massachusetts have now tallied more than $1 billion in gross sales, according to information reported in the state’s mandatory seed-to-sale tracking system, the Cannabis Control Commission. At the close of business on October 30, the aggregate data reported in Metrc by 80 retailers reached $1,000,521,905. What makes this even more impressive is that the state program is basically only two years old.
Cannabis software company Blackbird and payment processor company AeroPay announced a strategic partnership to bring cashless payments to cannabis businesses for online ordering. Blackbird was sold in November 2020 by its parent Tilt Holdings (OTC: TLLTF). Tilt agreed to sell Yaris Acquisition, LLC better known as Blackbird to Slam Dunk, LLC, a Nevada limited liability corporation controlled by Tim Conder, TILT’s Chief Operating Officer and a member of the board of directors of the company. The company said the total valuation of the deal was $15 million and selling Blackbird resulted in a cut of $3 million in expenses quarterly.
In Other News
Harborside Inc. (CSE: HBOR), (OTCQX: HBORF), a California -focused, vertically-integrated cannabis enterprise, today announced a brokered private placement of units of the company at a price of C$2.55 per SVS Unit for gross proceeds of approximately C$20 million with approximately C$9.0 million of commitment from Entourage Effect Capital, LLC, one of the largest shareholders of Harborside.
Bengal Capital announced Josh Rosen, co-founder, former CEO and current Chairman of 4Front Ventures (CSE: FFNT), has joined the firm as a Managing Partner.
“Bengal has been immersed in the cannabis industry since our 2013 seed investment in Green Thumb Industries and Josh is as impressive as anyone we’ve met in the space. He brings a successful investment and operating track record to Bengal, and we can’t imagine a better partner to help us identify, act upon, and unlock value in the special situations we see across the investment landscape. Above all, he’s an ideal culture fit for Bengal and I’m incredibly happy Josh agreed to partner with us,” said Sanjay Tolia, founder and Managing Partner of Bengal Capital.