MJBiz - July/August 2024 - 14

COMPANY NEWS U.S. & International by MJBizDaily Staff
U.S. DEVELOPMENTS
Cansortium to Merge
With RIV Capital
Cansortium,
a Floridabased
vertically
integrated cannabis
multistate operator, is merging
with RIV Capital, which operates
the Etain Health marijuana brand
in New York.
Under terms of the deal, Cansortium-which
operates under
the Fluent brand-will acquire
all the issued and outstanding
Class A common shares of RIV
Capital in exchange for Cansortium
shares, according to a news
release.
Shareholders of Toronto-based
RIV will receive 1.245 common
shares of Cansortium for each
RIV share. Upon closing, Cansortium
shareholders will hold
roughly 51.25% of the combined
business.
RIV shareholders and The
Hawthorne Collective-a
ScottsMiracle-Gro subsidiary
that invested in RIV in 2021-will
hold approximately 48.75% of
the combined company.
The deal will establish a combined
company consisting of
eight cultivation and processing
facilities and 42 stores in Florida,
New York, Pennsylvania and
Texas.
It also will create a pro forma
cash balance of roughly $74 million
to fund accretive growth and
relieve The Hawthorne Collective
of $175 million of debt.
Goodness Growth Seeks
$860M From Verano
Marijuana
multistate
operator
Goodness Growth is seeking
14 July-August 2024 | MJBizMagazine
$860.9 million in
damages from
Chicago-based
Verano Holdings
Corp., alleging breach of
contract after the latter terminated
its agreement to acquire
Goodness Growth Holdings.
Minneapolis-headquartered
Goodness Growth filed an
application on May 2 with the
Supreme Court of British Columbia
requesting an expedited
summary trial. Both Goodness
Growth and Chicago-based MSO
Verano are incorporated in British
Columbia and listed on Canadian
stock exchanges.
In its own June 19 court filing,
Verano objected to Goodness
Growth's request for a summary
decision, arguing that a summary
trial is not the right venue for a
case of this complexity.
Verano also called the amount
of damages requested by Goodness
Growth " a senseless figure "
that was " based on speculation
and biased assumptions not supported
by evidence. "
Verano said Goodness Growth
based the value of its request
for damages on a report from
an individual " unqualified " to
provide a business valuation.
Eaze Faces Foreclosure
Eaze, the largest marijuana
delivery company in the biggest
regulated U.S. cannabis market, is
facing financial troubles.
Jim Clark, a tech billionaire and
Eaze's largest investor, is foreclosing
on the company, as first
reported by WeedWeek. Cory
Azzalino, CEO of the San Francisco-based
delivery business, said
Eaze will continue to operate
during the foreclosure process.
The roots of the crisis date
to August 2022, when a shell
company co-owned by Clark
issued a $36.9 million loan to
Eaze that gave him the right
to take control of the cannabis
delivery company if it didn't
meet monthly revenue targets,
according to a 2023 lawsuit filed
by other Eaze investors.
Blüm Nets $25M
in Store Sale
California cannabis
company Blüm
Holdings sold its
controlling interest in an Orange
County store for $24.8 million as
part of its restructuring plan.
Its subsidiary, Unrivaled
Brands, sold its stake in Blüm
Santa Ana on June 10 to Haven
Nectar, according to a news
release.
Cash proceeds from the sale
were used to settle debt and
litigation, helping reduce Blüm's
liabilities by $44.5 million and its
total debt by more than 55%.
Pursuant to a licensing agreement,
Blüm Santa Ana will continue
to use the Blüm name for
up to 18 months.
Marijuana REIT Buys Ayr
Property in Florida
Innovative Industrial
Properties, a San Diego-based
real estate investment trust
(REIT) focused on the cannabis
industry, acquired a $13 million
industrial space in Florida that
will be leased to multistate
operator Ayr Wellness.
As part of the deal, Innovative
Industrial Properties (IIP) plans
to reimburse Miami-based Ayr
up to $30 million for the redevelopment
of a 98,000-square-foot
MJBiz - July/August 2024

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