Kaitlin Domangue
It’s time for your Daily Hit of cannabis financial news for October 30th, 2019.
On the Site
4 Top Shelf CBD Beverages To Hop On In 2020
The rapidly increasing availability of CBD products paired with the growing health trend in the US has opened minds to hemp products – and space for their sale in the beverage industry. Anhueser-Busch, Coors, Lagunitas, and Constellation Brands have all jumped on the CBD bandwagon, partnering up with already existing CBD companies.
USDA Releases Hemp Rules Draft
The United States Department of Agriculture has released a draft for the regulation of hemp in the US. The regulations for hemp will cover things like THC testing, biomass transportation, licensing procedures, and more.
Curaleaf Amends Cura Partners Acquisition
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) is changing the terms of its prior agreement to acquire Select’s state-regulated cannabis business. The company said in a statement, “Due to changes in market conditions since the original merger agreement was signed in May, Curaleaf and Select have mutually agreed to reduce the base consideration payable upon close under the Proposed Transaction.”
In Other News
Valens and BRNT Enter into Major White Label Deal with a Gross Revenue Potential to Valens of More Than $50 Million
Valens is to produce a minimum of 2.2 million vape pens on behalf of BRNT Ltd. for the Canadian market over an initial two year term. This is the largest publicly announced multi-year white label agreement to date for a branded finished product in the Canadian cannabis industry. The gross revenue potential to Valens under the agreement of over $50 million in the first two years, is subject to final acceptance from provincial distributors, including of the proposed price per unit.
Vertical Brands Names Cynthia Cleveland President
Vertical Brands announced today it has appointed Cynthia Cleveland as President effective immediately. Vertical Brands has one of the largest portfolio of owned and partner brands in the cannabis industry. Headquartered in California, Vertical has operations in CA and OH, and plans for expansion of its brands into other states. Cynthia Cleveland is an expert in translating and monetizing intellectual property rights into major global consumer brands. She is a seasoned leader in licensing, new business development, and brand development.
Innovative Industrial Properties Acquires Illinois Property and Expands Real Estate Partnership with PharmaCann
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on a sale-leaseback transaction with PharmaCann LLC (PharmaCann) for a property located in Dwight, Illinois, which is currently improved with approximately 48,000 square feet of industrial space.
The purchase price for the property was $18.0 million (excluding transaction costs).
Innovative Industrial Properties Acquires Illinois Property and Enters Into Long-Term Lease with Grassroots
It has been a big day for Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry. In addition to their announcement of closing a sale-leaseback transaction with PharmaCann LLC, the company also announced today that it closed on a sale-leaseback transaction with a subsidiary of GR Companies Inc. (Grassroots) for a property located in Litchfield, Illinois. It is approximately 70,000 square feet of industrial space. The purchase price for the property was $10.5 million (excluding transaction costs).
Trulieve Announces Pricing of Public Offering
Trulieve Cannabis Corp. (CSE: TRUL) today announced that it has priced its previously announced public offering of debenture units. The Offering will be comprised of an aggregate principal amount of US $60,000,000 of 9.75% senior secured notes maturing in 2024 and an aggregate amount of 1,560,000 subordinate voting share purchase warrants of the Company.
