It’s time for your Daily Hit of cannabis financial news for July 19, 2021.
On The Site
Ayr Wellness Inc. (OTC: AYRWF) is buying Nevada-based Tahoe Hydroponics Company, LLC in a deal valued at $17 million. It is a cash and stock deal that will consist of $5 million in cash, $3.5 million in debt, and approximately $8.5 million in stock. Tahoe Hydro operates roughly 33,000 square feet of total cultivation and manufacturing space in its facilities in Carson City, Nevada, and Sparks, Nevada. The company grows flower and produces concentrates for some of the state’s top-selling brands, including Tahoe Hydro and LIT (Lost in Translation), top-sellers and local favorites throughout the state, according to BDSA, and is a Nevada flower supplier for the well-known Cookies brand. Ayr said that the acquisition will add significant cultivation capacity to its Nevada operations and provide the Company with expanded access to high-quality premium flower for its operations throughout the state.
The Green Market Report Cannabis Company Index has added six companies to the Index and published its second-quarter recap report. The Index experienced an overall 8% decline in the second quarter due to the drop in valuations of the companies. Year-to-date the Index is still up 27%. The second-quarter stock performance was almost the polar opposite from the first quarter. The first quarter saw the Index companies delivering mostly positive returns. In the second quarter, most of the Index companies turned in negative results with only a handful in the green zone. Consolidation continues in the industry and the gap between small and large companies seems to be widening.
In Other News
Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) announced that Peter Bilodeau has been asked to step down from his role as Interim Chief Executive Officer effective immediately, and Matt Hawkins, Chairman, will assume the position of Interim CEO while the company completes its search for a successor. In addition, Ahmer Iqbal, former CEO of Sublime, has been appointed Chief Operating Officer of Harborside.
cbdMD, Inc. (NYSE American: YCBD, YCBDpA) has entered into a letter of intent to purchase leading CBD online marketplace, DirectCBDOnline.com, from Twenty Two Capital, LLC. “Owning a CBD online marketplace that sells various CBD brands provides unique transparency to better understand consumer spending habits and trends across the wider CBD and hemp marketplace. In addition, the technology and digital strength that DirectCBDOnline.com owns enhances our overall direct to consumer ecommerce capabilities. We are very excited that the team from DirectCBDOnline.com will be joining cbdMD. John Wiesehan III and Brad Trawick, who are the co-founders of DirectCBDOnline.com will be playing important roles, as we expand further in the global CBD market. John will be appointed in a newly created role of Chief Revenue Officer at closing,” said Martin A. Sumichrast, Chairman & co-CEO of cbdMD, Inc.
Hervé, maker of luxury French-inspired and cannabis-infused desserts, today announced the appointment of two experienced marketing executives to lead and enhance the company’s brand promotion strategy as part of its expansion plan. Former Head of Marketing at Canndescent, Cheyne Nadeau, joins the Hervé team as Vice President of Marketing and former Marketing Manager at PLUS Products, Emily Ryan, joins the team as Head of Trade Marketing. The appointments follow the recent close of Hervé’s oversubscribed $3M Series A raise that will be used to accelerate growth and support expansion opportunities.