MJBizMag April 2022 - 16

COMPANY NEWS U.S., Canada & International by MJBizDaily & Hemp Industry Daily Staff
U.S. DEVELOPMENTS
Moxie Sues Green Growth
Backers Over Failed Merger
California marijuana operator Moxie
is suing the billionaire Schottenstein
family backing insolvent Green
Growth Brands, claiming fraud in
connection with a $310 million merger
deal that was scrapped in 2019.
Moxie filed the suit as MXY
Holdings against the Ohio-based
marijuana and CBD company's
founder, Joseph Schottenstein, his
family members and others.
The suit claims the defendants
fraudulently misrepresented their
intentions, persuaded Moxie to loan
$5 million to Green Growth Brands,
then canceled the merger deal
without repaying the loan or a
$10 million stock-termination fee.
Safe Harbor to Trade on
Nasdaq Via $185M Deal
Safe Harbor Financial, a cannabis
financial institution led by Sundie
Seefried, announced a definitive
agreement to be taken public by
Northern Lights Acquisition, a
blank-check business also known
as a special purpose acquisition
company (SPAC).
Under the $185 million merger,
New York-based Northern Lights,
an affiliate of Luminous Capital,
will pay $70 million in cash and
$115 million in common stock to
acquire Safe Harbor, a subsidiary of
Colorado-based Partner Colorado
Credit Union.
Ancillary Cannabis Firm
Raises $135 Million
Agrify, a Massachusetts-based
developer of indoor agriculture
technology, signed a definitive
agreement to raise as much as
$135 million from a debt financing
to strengthen its balance sheet and
support continued growth.
16 April 2022 | MJBizMagazine
Under the senior secured
debt facility, $65 million will be
immediately available at closing.
The remaining $70 million can be
drawn at $35 million increments
depending on certain conditions.
Native Roots Founders
Win $140M in Arbitration
A nearly fiveyear
legal
battle over
ownership
of Colorado
marijuana retail
chain Native
Roots is nearly
over, with two of the owners
winning a $140 million judgment
against their partner for breach of
contract.
According to arbitration records,
the ownership dispute began in
2017, with founders Josh Ginsberg
and Rhett Jordan on one side and
owner/investor Peter Knobel and
his company, Brightstar, on the
other. Knobel attempted to take
over Ginsberg and Jordan's ownership
portions of the company to
complete a sale. However, Ginsberg
and Jordan refused to sell and
forced Knobel into arbitration.
MedMen Sells License
and Assets in Florida
California-based MedMen
Enterprises is exiting the Florida
medical cannabis market with the
sale of its business license and all its
assets in the state for $83 million.
According to a news release, MedMen
sold its Florida assets to Fort
Lauderdale-based Green Sentry
Holdings in an all-cash deal that
included seven dispensaries, cultivation
operations and inventory. MedMen
will also license its trademarks
to Green Sentry for two years.
Flora Growth Closes $30M
Acquisition of JustCBD
Toronto-based cannabis company
Flora Growth Corp. says it has the
United States, Germany and Mexico
in mind as it closes a $30 million
cash-and-stock acquisition of Miamibased
JustCBD.
The deal includes $16 million in
cash and an additional 9.5 million
Flora common shares issued to the
companies that own and operate
JustCBD, Just Brands and High
Roller Private Label.
Court Dismisses Patent
Suit Against GW Pharma
A Texas court dismissed a lawsuit
accusing pharmaceutical CBD maker
GW Pharmaceuticals of violating
another company's patented
extraction method for its epilepsy
drug Epidiolex.
The 2020 lawsuit from Canadian
cannabis producer Canopy Growth
Corp. alleged that GW, now part of
Jazz Pharmaceuticals, knowingly
used a Canopy-patented cannabis
extraction method.
Cann Raises $27 Million,
Launches in Canada
Los Angeles-based cannabis
beverage maker Cann raised
$27 million in a Series A funding
round. Investors included unspecified
" fresh institutional capital, " existing
backer Imaginary Ventures and a
list of celebrity investors.
Cann said it also launched its
drinks in Ontario, Canada's largest
provincial market, " with British
Columbia and additional provinces
launching in the coming months. "
The beverages are being produced
in Canada by Truss Beverage, a
joint venture between Canadian
cannabis producer Hexo Corp. and
brewer Molson Coors Canada.
MJBizMag April 2022

Table of Contents for the Digital Edition of MJBizMag April 2022
