It’s time for your Daily Hit of cannabis financial news for October 5, 2020.
On the Site
In December of 2019, Michigan became the tenth state in the U.S. to legalize adult-use cannabis. Less than a year in, it’s already outpaced Nevada to become the fifth highest-grossing state for cannabis sales and is on track to surpass $1 billion in sales, according to data from Headset. In addition to its fast-growing new adult-use market, Michigan’s medical market is ranked #2 in the country, second only to California. Now, all eyes are on The Great Lake State as cannabis operators and investors across the U.S. seek to claim their share of this high-potential market.
A Strong Medical Market Paved the Way
Though Michigan’s recreational market is still less than a year old, medical cannabis has been legal in the state since 2008.
“Michigan has historically boasted the second-largest medical cannabis program in the country, and therefore, the adult-use market has a phenomenal base of consumers to grow from,” explains Fabian Monaco, President of Gage Cannabis Co, a Michigan-based cultivator and dispensary operator.
Toronto-based Slang Worldwide Inc. (OTCQB: SLGWF) has been actively acquiring companies over the past months. Most of the acquisitions have been in Colorado as the company sought to bring in members of its supply chain as part of the larger company. At the close of last week, Slang announced it completed the purchase of Oregon-based LBA Global Corporation and its Lunchbox Alchemy brand portfolio and its subsidiary Lunchbox Distribution.
The company said this will improve its position in Oregon by adding a complementary portfolio of top-selling products, as well as increased cannabis extraction, manufacturing, and distribution capabilities. Oregon, in addition to Colorado, is a core market for SLANG. By establishing an integrated operation, the company hopes to see increased revenues and gross profits. The transaction is all stock and Slang issued 23,913,043 restricted voting shares to the former owners of privately held LBA in exchange for an all-equity interest in LBA and its subsidiaries.
In Other News
As one of the leading European Consumer Healthcare and Generics companies, STADA, with a product presence in 120 countries, has signed an exclusive supply agreement with MediPharm Labs Inc., a wholly-owned subsidiary of MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) a global leader in specialized, research-driven pharmaceutical-quality development and manufacture of cannabis API and derivative products to provide medical cannabis products for the European pharma sector. The partners will initially focus on Germany, before potentially expanding to other European countries and territories. The partnership also signals MediPharm’s entry into the global pharmaceutical industry within a major European market. With over 83 million inhabitants benefitting from broad access to healthcare services, Germany currently represents an estimated three-quarters of the current EU medical cannabis market.
“Working with MediPharm will meet the needs of pharmacists and patients and deliver on STADA’s purpose of caring for people’s health as a trusted partner,” commented STADA CEO Peter Goldschmidt. “This partnership with MediPharm demonstrates STADA’s ambition to be the go-to-partner for Generics, Consumer Health and Specialty Products.”
WYLLOW, a new Los Angeles based female-owned cannabis brand, is excited to announce their entry into the Bay Area by popular demand. Thanks to premium quality cannabis supplier, STIIIZY, a limited release of WYLLOW’s exclusive new strain, “Gelato,” will be available for purchase only at STIIIZY flagship stores in both San Francisco, and Los Angeles.
WYLLOW debuted three introductory strains in August 2020 for their launch. Shortly after, WYLLOW saw their most popular Sativa strain “Mimosa” spark interest along the California coast. Now, WYLLOW is extending their product line into the San Francisco Bay Area with “Gelato,” which will be accompanied by a custom VR Instagram filter featuring the collaboration. With both brands rooted in Los Angeles, tapping into the Bay Area STIIIZY footprint was a no-brainer for WYLLOW Founder, Camille Roistacher. As a female entrepreneur, Camille’s vision for WYLLOW is to play on femininity, while remaining a top-shelf brand, designed and intended for cannabis connoisseurs of all walks of life.