Staff
It’s time for your Daily Hit of cannabis financial news for June 10, 2019.
On The Site
Harborside Health
The much-anticipated Reverse Takeover for Harborside Health began trading on the Canadian Securities Exchange using the symbol HBOR on Monday. The plan to go public was originally announced back in August of 2018. At that time, Toronto-based Lineage Grow Co. said it would acquire Oakland-based FLRish – which manages Harborside’s retail and dispensary operations – in exchange for newly issued common shares of Lineage worth roughly 200 million Canadian dollars or $152.2 million.
Harborside was a pioneer in the medical marijuana world. It made the first legal cannabis sale in California and has been serving over 300,000 patients and generating over $400 million in sales since those early days. Harborside currently commands 3% of the entire CA retail market, which is by a landslide the biggest market in the country.
Jushi Holdings
Jushi Holdings Inc. began trading on the NEO Exchange on Monday, June 10 under the symbol (NEO:JUSH). The company is fairly new and is known for its recently launched a full spectrum CBD – hemp-derived product line called Mend. The company has plans to build out a significantly large hemp processing facility, Sound Wellness, a Jushi subsidiary to execute on the hemp opportunity.
Tilray
When Tilray, Inc. (NASDAQ: TLRY) shares first began trading the stock blew up in price sparking a rally in all cannabis stocks, but also causing concern over a cannabis stock bubble. One of the main reasons why the stock skyrocketed in those early days was a lack of tradable shares. Privateer Holdings Inc. owned a majority of the shares and they weren’t available to the market until now.
Tilray has signed a non-binding Letter of Intent (LOI) with Privateer that will extend the lock-up on and provide for the orderly release of the 75 million of its shares held by Privateer to Privateer’s equity holders. According to the company, these shares currently represent 77% of Tilray’s total shares outstanding.
In Other News
Green Growth
Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) (“GGB” or “the Company”) announced today an arrangement through which the Company will open over 70 prime shop locations with potential for more at Brookfield Properties’ shopping centers throughout the United States. These exciting plans will further expand GGB’s physical footprint to approximately 280 total locations by the end of 2019.
Ventura Cannabis
Ventura Cannabis and Wellness Corp. (CSE: VCAN) announced today that it has entered into a binding agreement to acquire a cannabis dispensary based in Oakland, California that specializes in delivery of cannabis to the entire Bay Area. The business is expected to generate $1,000,000 in annual revenue with EBITDA of $100,000, not including the revenues and profits generated from selling Ventura Cannabis branded product lines through the dispensary. The total combined cost, including all fees and expenses, of the transaction, is expected to be a cash outlay of $1,000,000 at closing. Additional payments of $375,000 cash and $295,000 stock will be paid over time depending upon performance. The management will retain operational control of the dispensary.
MJ Freeway
MJ Freeway announced that it has retained Cowen and Company, LLC as a strategic and financial advisor pending the consummation of the proposed business combination with MTech. Following the closing of the business combination, Cowen’s Information & Technology Services Investment Banking team will assist with MJ Freeway’s strategy of pursuing strategic, accretive acquisition opportunities.
