It’s time for your Daily Hit of cannabis financial news for November 2, 2020.
On the Site
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced preliminary financial results for its third-quarter ending September 30, 2020, with net sales of $51.0 million, representing 8% sequential and 90% year over year growth. All amounts are in Canadian dollars. TerrAscend did not say whether there were any net profits or losses. The company also delivered an adjusted EBITDA of $17.8 million, an increase of 56% sequentially, and adjusted EBITDA margin expanded to 35% in the third quarter from 24% in the second quarter and 14% in the first quarter. TerrAscend will host a scheduled conference call to discuss the results for its third quarter on Thursday, November 19th, 2020 at 8:30 a.m. Eastern Time.
Fire & Flower
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) is buying Friendly Stranger Holdings Corp. in a deal valued at over $17 million. The deal is expected to close in the fourth quarter of 2020. An additional $4.6 million (approximately) will be set aside subject to authorizations for additional stores. Friendly Stranger owns and operates 11 licensed cannabis retail stores across the province of Ontario with 4 additional cannabis stores in the pipeline to be licensed and operational by the end of the fourth quarter of 2020. The stores are called the “Friendly Stranger”, “Hotbox” and “Happy Dayz” and will continue to operate under those brand names.
GrowGeneration Corp. (NASDAQ: GRWG) continues to add to its stable of hydroponic stores with the latest acquisition being The GrowBiz. GrowGen did not disclose how much it paid for the chain, which is the country’s third-largest, but did note that it is expected to deliver $50 million in annual revenues. The deal is expected to close before fiscal year-end 2020. The GrowBiz was founded in 2010 by Ross and Ryan Haley and has five stores across California and Oregon. It brings a team of experienced executives and more than 60 full and part-time employees. Prior to founding The GrowBiz, Ross Haley served as CEO of Hawthorne Gardening Company, a division of Scotts Miracle-Gro, and General Hydroponics, two recognized leaders in the hydroponics industry. Ross Haley will become a senior strategic advisor to the Company.
With over 2 million cans sold, Cann THC-infused beverages are the fastest-selling in the category to date, with more than a few celebrities putting their endorsement and investment power behind these wildly popular products. Billed as “cannabis-infused social tonics”, Cann beverages are alcohol-free and microdosed with THC, offering better-for-you alternatives to alcohol and other intoxicants. These tonics are also free of artificial sweeteners, flavors, or sugar substitutes and contain only 35 calories per serving.
In Other News
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced the financing commitment previously announced on September 16, 2020, was increased from US$20,700,000 to US$25,705,279 as a result of an upsizing of the senior secured term loan led by Stable Road. The total commitments include: (1) US$10,000,000 in gross proceeds under an unsecured convertible facility, (2) US$10,705,279 in gross proceeds under the Senior Secured Term Loan and (3) US$5,000,000 in additional gross proceeds under its senior secured convertible facility led by Gotham Green Partners. To date, the Company has closed on US$17,705,279 of total gross proceeds under these commitments. The remaining US$8,000,000 is related to the unsecured convertible facility, with additional tranches expected to close in the coming months.
Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) closed its previously announced public offering of 17,777,165 units of the Company at a price of $0.36 per Unit for aggregate gross proceeds of approximately $6,400,000, including the partial exercise of the Agents’ over-allotment option.