Staff
It’s time for your Daily Hit of cannabis financial news for January 31, 2022.
On The Site
GrowGen
GrowGeneration Corp. (NASDAQ: GRWG) has acquired Horticultural Rep Group (HRG) for an undisclosed amount. HRG is a specialty marketing and sales organization of horticultural products based in Ogden, Utah. HRG represents hundreds of product SKU’s for GrowGen and other companies that are popular brands in the hydroponics market. In addition, HRG has participated in the sourcing of products across the horticultural and hydroponics industry. HRG will continue to supply the 800+ retail customers it currently services. HRG generated estimated revenue of $10 million in 2021 from sales agent commissions and distribution activity.
Q1 Sales
While many in the cannabis industry are content to coast until April, 20, there are several days during the first quarter that cause cannabis sales to get sparked up. The team at cannabis data provider Surfside pulled together some statistics on the hottest sales days for cannabis during the first quarter.
Cannabis 50
Professional services company MGO has released its 2022 Cannabis 50 report. The Cannabis 50 2021 Impact Review honors the businesses, investors, advocates, and organizations that made a positive impact on the cannabis and hemp industries in 2021.
Psychedelics
On January 5, Health Canada added amendments to the Special Access Program (SAP) that now allow physicians to request patient access to psychedelic treatments, including MDMA, psilocybin, LSD, and DMT. The Health Canada regulations state that drugs that have not been approved for sale in Canada can generally be requested through Health Canada’s SAP in instances where conventional therapies have failed, are unsuitable, or unavailable. Regulatory amendments made to Part C of the Food and Drug Regulations in 2013 restricted drugs (such as psychedelics) became the only category of controlled substances that could not be requested through the SAP.
In Other News
HEXO
HEXO Corp (TSX: HEXO; NASDAQ: HEXO), today announced that it received notification from The Nasdaq Stock Market that it is not in compliance with the minimum bid price requirement in Nasdaq Listing Rule 5500(a)(2) for continued listing on the Nasdaq Capital Market since the closing bid price for the Company’s common shares listed on Nasdaq was below US$1.00 for 30 consecutive trading days. Nasdaq Listing Rule 5550(a)(2) requires the common shares to maintain a minimum bid price of US$1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that failure to meet such requirement exists if the deficiency continues for a period of 30 consecutive business days.
Fire & Flower
Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) announced it has amended certain terms of its previously announced option agreement and licensing agreement with Fire & Flower US Holdings Inc. Under the Strategic Agreements, Fire & Flower has the option to acquire Fire & Flower US, which acquisition is expected to occur upon the federal legalization of adult-use cannabis in the United States. The company will pay to the shareholders of the Licensee an aggregate amount of $5 million and will have the option to pay additional cash amounts.
