MJBiz - May/June 2024 - 15

COMPANY NEWS
The most notable MSO that
is not an FMMTA member
is Florida-based Trulieve
Cannabis Corp., the largest
operator in the state and the
main sponsor of the adult-use
legalization initiative, Smart &
Safe Florida.
Also absent from the FMMTA
is Chicago-based MSO Cresco
Labs, which operates 33 dispensaries
in Florida under the
Sunnyside brand.
Planet 13 Prices Public
Offering to Raise $11.3M
Marijuana
multistate
operator
Planet 13
Holdings priced a public offering
to raise gross proceeds of at least
$11.3 million. Las Vegas-based
Planet 13 will sell 18.75 million
units at 60 cents per unit through
the underwritten public offering.
Each unit includes one
common share with no par value
and one warrant. The warrants
permit purchasing one more
share at 77 cents within five
years, " subject to adjustments in
certain events. "
The underwriters, including
Beacon Securities, have a 30-day
over-allotment option to buy " up
to an additional 2,812,500 shares
and/or warrants, " Planet 13 said
in a news release. If exercised in
full, that over-allotment option
would yield $12.9 million in gross
proceeds.
Planet 13 said it would use the
proceeds " for working capital
and general corporate purposes,
which may include, but are not
limited to, the acquisition of
additional retail cannabis licenses
in the state of Nevada, the
expansion of its retail presence
in Florida and Illinois and other
capital improvements. "
The company's shares trade as
PLTH on the Canadian Securities
Exchange and PLNH on over-thecounter
markets.
Mississippi Lab
Loses License
The Mississippi health
department revoked the medical
marijuana testing license
belonging to Natchez-based
Rapid Analytics.
The agency said its
investigation revealed that
Rapid Analytics had engaged
in " significant deviations from
regulatory standards and
approved procedures, " according
to Jackson TV station WPAT.
In December, the health
department issued an
administrative hold on products
tested by Rapid Analytics,
which is one of two licensed
testing labs in the market. Rapid
Analytics tests approximately
70% of medical cannabis samples
in the state, according to
Jackson-based WJTV.
" Medical cannabis testing
is critical to ensuring product
safety for patients, and Rapid
Analytics' disregard for regulatory
compliance poses a threat
to public health and welfare, "
Mississippi health department
officials said in a statement.
Cannabis Lender
AFC Gamma Splits
Marijuana-sector real estate
lender AFC Gamma is splitting
off its non-cannabis commercial
real estate business into a
separate company.
The new publicly traded
company, which will be called
Sunrise Realty Trust, intends to
operate as a real estate investment
trust (REIT), West Palm
Beach, Florida-based AFC Gamma
said in a news release.
According to a company
statement, the spinoff " will result
in two pure-play debt capital
providers-one focused solely
on the cannabis industry and a
second on (commercial real estate)
in the southern United States.
" AFC Gamma believes that
the separation will allow both
companies to focus on their
respective portfolios, articulate
their own clear investment
thesis, and have the flexibility
to tailor their business strategies
to best capture market
opportunities within their
specialization. "
The spinoff is anticipated in
mid-2024. After the separation,
AFC Gamma said, its cannabis
portfolio would hold 12 funded
loans at 21% yield to maturity,
with assets worth roughly
$330 million, per its balance
sheet as of Sept. 30.
Sunrise would have two
funded loans with assets of
about $115 million. Shares of AFC
Gamma trade as AFCG on the
Nasdaq exchange.
Agrify Prices Public Offering
to Raise $2.6 Million
Marijuana
technology
company
Agrify
Corp. priced a public offering
to raise gross proceeds of
$2.6 million.
The net proceeds will be used
" for working capital and general
corporate purposes, which may
include capital expenditures
and repayment of debt, " Troy,
Michigan-based Agrify said in
a news release. The offering
includes roughly 6.7 million
shares, or prefunded warrants, at
38 cents per share.
Earlier this year, Agrify
announced steps to reduce its
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MJBiz - May/June 2024

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