It’s time for your Daily Hit of cannabis financial news for March 18, 2021.
On the Site
Cresco Labs (OTCQX:CRLBF) said it was buying Massachusetts-based Cultivate Licensing LLC and BL Real Estate LLC for roughly $90 million, plus an earnout of up to $68 million. The deal is expected to close in the fourth quarter of 2021. Cultivate brings to Cresco approximately 42,000 sq. ft. of flowering canopy with a planned indoor expansion of approximately 20,000 sq. ft. The company has two operational dispensaries in Leicester and Framingham and a third dispensary in Worcester is expected to open in the second quarter of 2021.
Canopy Growth Corporation (NASDAQ: CGC) announced that it has entered into a credit agreement with Funds advised by King Street Capital Management, L.P. Under the Credit Agreement, the company has raised a $750 million in a senior secured term loan. Canopy also said it has the ability to obtain up to an additional $500 million of incremental senior secured debt pursuant to the Credit Agreement.
The Secure and Fair Enforcement (SAFE) Banking Act was reintroduced in the House of Representatives today. This bill, which was introduced by Reps. Ed Perlmutter (D-CO), Steve Stivers (R-OH), Nydia Velazquez (D-NY), and Warren Davidson (R-OH), would provide a safe harbor for banks and other financial institutions working with state-legal cannabis businesses.
The stimulus checks that many Americans are beginning to receive this week could also stimulate the cannabis industry, namely the dispensaries. Viridian Capital Advisors said it expects the latest stimulus check will translate to higher than normal retail sales in the near-term, as well as inflated wholesale prices, which are driven by that stronger retail demand.
In Other News
CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the year ended December 31, 2020.Sales for fiscal 2020 were $24.4 million, a decrease of 55% from $53.7 million in 2019. Current year sales were impacted by the yearlong and ongoing COVID-19 pandemic and increased market competition, which is largely due to the uncertain regulatory environment for CBD. he Company recognized an operating loss of $22.6 million in 2020, compared to an operating loss of $17.2 million in the prior year.
MedMen Enterprises Inc.(OTCQX: MMNFF) announced the sale of C$20.0 million of units at a purchase price of C$0.40 per Unit. MedMen’s Florida strategic growth plan includes using the proceeds of the Private Placement to: (i) expand and increase utilization of the existing production facilities with the goal to boost cultivation capacity from 8,000 pounds to 22,000 pounds annually, (ii) increase manufacturing capacity and allow for the introduction of Mary’s Medicinals’ suite of products and Dixie Brands’ award-winning edibles, and (iii) with the increased capacity, have 15 operational stores open to serve Florida patients within the next year. Proceeds will also be used to fund certain costs related to opening locations in Massachusetts, Illinois and California, and for general corporate purposes.