The Daily Hit is a recap of the day’s top business news for the cannabis industry for March 23, 2022.
On the Site
Cresco Labs (OTC: CRLBF) is buying New York-based Columbia Care (OTC: CCHWF) in a $2 billion deal that will make it the largest marijuana company in the U.S. The all-stock purchase would give Cresco a presence in new recreational-marijuana markets, such as New Jersey and Virginia. It’s the largest merger in the marijuana business since Trulieve, based in Quincy, Fla., bought Harvest Health & Recreation for $2.1 billion last year. The deal is the biggest involving a Chicago-based marijuana company since Grassroots was bought by Curaleaf, headquartered in Wakefield, Mass., for $715 million in 2020. Read more here.
While the news of the Columbia Care acquisition was the big news of the morning, Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) also reported its financial results for the fourth quarter and year ending December 31, 2021. Cresco’s fourth-quarter revenue rose 34% over last year to $218 million, this was only a slight increase over the third quarter’s revenue of $215 million. The cash flow from operations was $38 million. Taxes and interest payments pushed the company to report a net loss of $11 million the quarter. Read more here.
Agrify Corporation (Nasdaq: AGFY) announced financial results for the fourth quarter and fiscal year ended December 31, 2021, with revenue rising 481% to $25.3 million for the fourth quarter over last year’s $4.4 million for the same time period. It was also a big jump over the third quarter’s revenue of $15.8 million. Agrify delivered a net loss for the fourth quarter of $13.3 million, or $0.60 per diluted share, compared to a net loss of $13.1 million, or $2.23 per diluted share, in the prior-year period. Read more here.
In Other News
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) reached an agreement to acquire all of the issued and outstanding shares of TerraFarma Inc. (parent company of Thrive Cannabis) for $38 million payable in cash and Aurora common shares , plus two earnout amounts payable in Aurora Shares or cash, if applicable, based on Thrive achieving certain revenue targets within two years of the closing of the Transaction. Founded in 2018, Thrive is a licensed producer of super-premium cannabis concentrates and craft dried flower, and leverages innovative cultivation and extraction techniques with a singular focus on achieving the highest quality standards. Thrive is most widely known for its award-winning flagship recreational brand, Greybeard Cannabis Co. (“Greybeard”), which amongst other accolades was recognized as the #1 brand recommended by Canadian budtenders in 2021, and was the 2021 winner of Best Concentrate from the Kind Magazine Awards, as voted for by budtenders. Read more here.
Metrc announced its new contract with the state of South Dakota to support the regulation of the state’s medical cannabis market. This marks Metrc’s 20th government contract to date nationwide for the implementation of its cannabis track-and-trace systems. “As South Dakota continues to ramp up their recently implemented medical cannabis market, we are thrilled to have the opportunity to spearhead the state’s first-ever track-and-trace program,” said Jeff Wells, CEO of Metrc. “Our team at Metrc is looking forward to working closely with the Departments of Health and Revenue, state regulators, and licensed operators to implement a strong regulatory framework that will effectively guide South Dakota’s newly emerging medical market down the path to success.” Read more here.