It’s time for your Daily Hit of cannabis financial news for September 9, 2020.
On the Site
Columbia Care Inc. (OTCQX: CCHWF) has signed an agreement to buy California-based Project Cannabis for approximately $57 million in Columbia Care stock and approximately $12 million in cash from the proceeds of a concurrent sale of Project Cannabis’ real estate assets. The deal is expected to close in the fourth quarter of 2020.
Based, in Los Angeles, Project Cannabis owns the branded products Triple Seven and Classix. It operates a 32,000 ft cultivation facility, along with three adult-use retail dispensaries in prime locations in North Hollywood, Downtown Los Angeles, and Studio City. In San Francisco, it operates one adult-use retail dispensary in the Soma district, close to both professional baseball and basketball stadiums. This location also houses one of the only permitted consumption lounges in San Francisco.
Auxly Cannabis Group Inc. (OTCQX: CBWTF) closed on an additional $2 million worth of unsecured convertible debentures under its $25 million unsecured convertible debenture standby facility with an institutional investor as previously announced on April 28, 2020.
The convertible debentures that Auxly issued to the investor have a conversion price of $0.18 per common share of the company, while the stock currently trades at $0.12. The investor received warrants to purchase 6,111,111 common shares until September 8, 2022 at an exercise price of $0.216 per Common Share.
In Other News
Cronos Group Inc. (NASDAQ: CRON) announced that its Board of Directors has appointed Kurt Schmidt President and Chief Executive Officer of the Company, effective today. Kurt brings to Cronos Group more than three decades of experience leading and growing renowned global consumer packaged goods companies and their brands, including at Blue Buffalo Company Ltd., Nestlé S.A., Gerber and Kraft Foods. The Company also announced that Mike Gorenstein has been appointed Executive Chairman. Mike has served as Chairman, President and Chief Executive Officer of Cronos Group since 2016.