Staff
It’s time for your Daily Hit of cannabis financial news for January 4, 2022.
On The Site
MJBiz
Emerald Holding, Inc. (NYSE: EEX) has purchased MJBiz in a deal valued at $120 million. In 2021, MJBiz’s revenues were approximately $27 million, which were near pre-pandemic levels. MJBiz EBITDA for the calendar year 2021 is $13,700,000. MJBizCon is a top trade show in the cannabis industry having featured more than 1,200 exhibiting companies. While the company boasted of over 18,000 paid registrations, at the October 2021 event, it was a big drop from the company’s last pre-pandemic event. Emerald said in a statement that the MJBiz platform delivered 38% compound annual revenue growth in the three years prior to the pandemic (2017-2019).
Scotts
The Scotts Miracle-Gro Company (NYSE: SMG) announced two acquisitions, but at the same time warned that sales in its hydroponic division Hawthorne were expected to drop by 40% for the fiscal first quarter that ends at the end of January. Scotts said the decline in sales was caused by a slowdown in the cannabis market as well as supply chain disruptions that have delayed the sale of certain product lines. However, the company said it was maintaining its full-year company-wide outlook for adjusted earnings per share.
Greenlane
Greenlane Holdings, Inc. (NASDAQ: GNLN) has parted ways with its President Aaron LoCascio and has accepted an $8 million bridge loan from LoCascio to support organic growth initiatives at the company. LoCascio is the company’s co-founder, a board member, and one of its largest shareholders. LoCascio helped found the company in 2007 and was the CEO of Greenlane in 2018 prior to the merger with KushCo. According to the company’s annual report, LoCascio received $380,000 in salary in 2020, plus $342,000 in option awards.
GrowGen
GrowGeneration Corp. (NASDAQ: GRWG) has bought Mobile Media, Inc and MMI Agriculture, an Ellenville, NY-based mobile shelving manufacturing and warehouse facility in a deal valued at $9.4 million. GrowGen said that MMI generated over $14.0 million in revenue in 2021. MMI occupies two warehouses totaling over 70,000 sq. ft. and will continue to produce products in its manufacturing facility in New York. MMI has been a manufacturer of high-density mobile shelving systems, commonly referred to as “benching,” to a variety of industries including agriculture, retail, commercial, and government, offering a complete turnkey solution, specializing in design, custom manufacturing, shelving systems, and installation across the United States.
In Other News
Agrify
Agrify Corporation (Nasdaq: AGFY) announced it has signed a definitive agreement for its largest Agrify Total Turn-Key Solution partnership to date with Gold Leaf Florida LLC, a leading licensed medical marijuana treatment center based in Myakka City, Florida. The agreement, which is the first for Agrify in the flourishing Florida cannabis market, is expected to generate more than $140 million in revenue for Agrify over the first three years of cultivation and over $400 million of estimated total revenue over the full 10-year term of the partnership.
Curaleaf
Curaleaf Holdings, Inc. (OTCQX: CURLF) announced that Matt Darin will become President of Curaleaf Holdings, Inc., effective immediately. Darin brings a wealth of industry knowledge and leadership experience at an important moment in Curaleaf’s growth trajectory; the company recently announced several strategic acquisitions in Los Suenos Farms, Tryke Companies, NRPC and Bloom Dispensaries. Mr. Darin will report to Curaleaf Chief Executive Officer Joseph Bayern.
Halo
Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) announced that Sky Pinnick has been appointed as Chief Marketing Officer (CMO). Mr. Pinnick brings significant marketing and branding expertise, particularly in the cannabis industry, to Halo and will lead the Company’s market expansion initiatives as it grows its portfolio of products and distribution channels.
