It’s time for your Daily Hit of financial news for June 21, 2021.
On The Site
The Massachusetts Cannabis Control Commission fined both TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF) and Ayr Strategies (OTC: AYRWF) last week for over $200,000 each as both companies try to resolve issues each blamed on previous management. The settlement also allows each company to move forward with plans in the state. Tilt Holdings agreed to the settlement resolving concerns of the CCC, which cleared a path for the provisional licensure for the retail sale of adult-use and medical cannabis in Massachusetts.
The commission also fined Sira Naturals, which is owned by Ayr Strategies, $295,000 for allowing an unlicensed intra-company delivery vendor it had received permission to work with to deliver products between other cannabis firms. Ayr noted in a statement that the Commission addressed a settlement between Sira and the Commission, “related to wholesale transportation activities during the challenging reopening of the Massachusetts adult-use market in 2020 following the COVID-19 shutdown.” While no violation has been admitted, the company thanked the Commission for its efforts and dialogue over the intervening period and appreciates the important clarifications that the settlement provides.
The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) has closed its previously announced acquisition of Green Roads and its manufacturing subsidiary. The value of the deal totaled $40 million, plus up to an additional $20 million in contingent consideration, which will be paid when the company hits certain EBITDA milestones. If all the milestones are met in 2022, the transaction represents approximately 4.5x fiscal 2022 EBITDA.
In Other News
Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) announced the appointment of Matt Sale to its executive leadership team as chief financial officer, effective today. Mr. Sale is a proven finance professional who brings over 15 years of progressively more senior leadership roles and accomplishments to Aleafia Health. Working within the investment banking groups of Raymond James and BMO Capital Markets, he has been a trusted financial advisor to some of Canada’s most prominent publicly listed and private companies, helping execute their growth strategy, equity and debt financing transactions, and mergers & acquisitions.