William Sumner
It’s time for your Daily Hit of cannabis financial news for December 12, 2019.
On the Site
Cresco Labs Shores Up Its Balance Sheet, Sells Property for $50 Million
The Illinois-based Cresco Labs (CSE: CL) (OTCQX: CRLBF) is looking to shore up its balance sheet by selling off one of its properties. Today the company announced that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million. Though Cresco is technically selling the property, which is still under construction, the company has entered into a triple-net lease agreement with GreenAcreage and will continue operating on the property as a licensed medical & recreational cannabis cultivation and processing facility.
Industry Power Women Awards Three During MJBiz Conference
The women’s cannabis networking organization known as Industry Power Women joined forces with Accelerate Cannabis during the 2019 MJ Biz Conference to recognize three individuals and their efforts within the cannabis industry. During the Mid-Atlantic Mixer, Saphira Galoob, Erica Daniels and Kristin Jordan each received engraved crystal awards in recognition of their work.
In Other News
MedMen Enterprises
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced the execution of several financing agreements. First, the company executed a term sheet for a non-brokered offering of subordinate voting shares worth $27 million, which is expected to close on or around December 18, 2019. MedMen also announced an amendment to the terms of a senior secured convertible credit facility arranged by Gotham Green Partners, securing an additional $10 million in funding. In addition to the two financing agreements, the company executed a binding term sheet in respect of certain amendments to the definitive agreements for the $78 million senior secured term loan, which is expected to mature on January 31, 2022.
Canopy Growth
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of a hemp-based line of CBD products. Dubbed “First & Free,” the new line of products will include a variety of formats such as soft gels, oil drops, and creams. The products will be made available through the company’s new e-commerce site www.firstandfree.com.
Columbia Care
Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) today signed a definitive agreement for its first sale-leaseback with NewLake Capital, valued at $35 million. The agreement involves six properties across three states (California, Illinois, and Massachusetts), and totals approximately 127,000 square feet of space. The transaction includes a dispensary in San Diego, California; a dispensary in Chicago, Illinois; dispensaries in Greenfield and Lowell, Massachusetts; and two cultivation and manufacturing facilities in Lowell, Massachusetts and Aurora, Illinois. “As our markets come on-line and mature, we intend to demonstrate the power and scale of our economic model by generating positive cashflow at the individual product, facility and market levels, as well as on a consolidated basis,” said Nicholas Vita, Chief Executive Officer of Columbia Care.
