It’s time for your Daily Hit of cannabis financial news for November 1, 2018.
On the Site
Hydrofarm Holdings Group
Hydrofarm Holdings Group, an independent manufacturer and wholesaler of agricultural products and hydroponic equipment, announced that is has completed a $55 million equity financing round. In addition to strategic and institutional investors, the financing round including an investment from one of the largest private equity firms in the cannabis industry, Serruya Private Equity (SPE).
MedMen Enterprises Inc.
MedMen Enterprises Inc. (OTCQX: MMNFF) is acquiring Arizona-based Kannaboost Technology Inc. and CSI Solutions LLC, known as “Level Up,” in a cash and stock transaction valued at $33,000,000. According to the company statement, Level Up holds licenses for two vertically-integrated operations in Arizona, which include retail locations in Scottsdale and Tempe, as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix.
In Other News
Auxly Cannabis Group Inc.
Auxly Cannabis Group Inc. announced that the company had received approval from the governing body responsible for foreign direct investment in Uruguay, the Secretaría Nacional para la Lucha contra el Lavado de Activos y el Financiamiento del Terrorismo (SENACLAFT), to acquired 80% of the issued and outstanding common shares of Inverell S.A. This acquisition will help provide the company with an efficient, low-cost source of cannabinoids; CBD in particularly. With a cheap and stable supply of CBD, the company hopes to take advantage of newly emerging international distribution channels for the substance. This strategy includes a partnership with ICC International Cannabis Corporation Inc., which will give the company access approximately 35,000 pharmacies in 16 markets.
The lifestyle cannabis company, WeekendUnlimited Inc. (CSE: YOLO), announced that is has entered into an arms-length binding letter of intent to acquire the Jamaican cannabis company, R&D Pharma. R&D Pharma is only one of three approved Tier-3 cultivators in the country. The acquisition also includes a 49% stake in one of the other two Tier-3 license holders in Jamaica. “This acquisition in Jamaica represents a significant step for Weekend Unlimited as it implements its strategy to be a top tier integrated cannabis company,” said Weekend Unlimited President and CEO, Cody Corrubia. “By adding R&D to our brand portfolio, we secure a highly coveted asset for cultivation in a low cost, high-quality environment like Jamaica, which has international appeal in the cannabis space, with unparalleled lifestyle applications.”
After years of clinical trials and government reviews, GW Pharmaceuticals (NASDAQ: GWPH) has announced that the cannabis-based epilepsy drug, Epidiolex, is now available in all 50 U.S. states. Epidiolex is the first cannabis-based drug to be approved for use by the U.S. Food and Drug Administration. To help uninsured and low-income patients, the company has launched a support program called EPIDIOLEX Engage which will reportedly help reduce out-of-pocket costs. “EPIDIOLEX is a much-needed new treatment option for patients with LGS, a rare and severe form of childhood-onset epilepsy that typically persists into adulthood,” said Christina SanInocencio, Executive Director of the Lennox-Gastaut Syndrome Foundation, in a statement. “Despite the use of multiple epilepsy treatments, the majority of LGS patients continue to have life-long, debilitating seizures and our community welcomes the availability of a new, first-in-class treatment option.”