MJBizMag August 2020 - 21

continued investment in technology infrastructure and
general corporate purposes.
The financing is in the form of a senior secured
note that is convertible into common stock at $11.50
per share. The note has a face value of $17 million
and is being issued with an original issue discount of
approximately 12%.
Acreage Makes New Jersey Acquisition
Multistate marijuana operator Acreage Holdings of New
York closed on a deal to acquire a New Jersey medical
cannabis operation for $10 million, plus the assumption
of debt. The acquisition of Compassionate Care
Foundation gives Acreage a foothold in a marijuana
market where state residents will vote on an adult-use
initiative in November.
Acreage's acquisition includes licenses for cultivation,
processing and three dispensaries. The company, which
operates under The Botanist brand, has licenses to
operate two other New Jersey dispensaries-one in
Egg Harbor and another on the Atlantic City Boardwalk.
The closing of the New Jersey deal came only a few
days after Canadian cannabis producer Canopy Growth
reached an agreement to amend its acquisition of
Acreage and slash the values of the deal from
$3.4 billion to about $900 million to reflect the cannabisstock
slide and Acreage's financial condition.
Cash-strapped Acreage recently secured a
short-term loan for $15 million with an interest rate of
60%. Acreage's revenues in the first quarter of 2020
totaled $24.2 million, up 15% from the previous quarter,
but the company has yet to break even on its operations.
Schwazze Walks Away From Colorado Cannabis Deals
Denver-based Schwazze, formerly Medicine Man
Technologies, said it has terminated acquisitions of two
Colorado marijuana businesses-cultivator Los Sueños
Farms and concentrates company Dabble Extracts.
Schwazze, a vertically integrated operator, said in
an investor news release that it moved quickly on the
deals and, thus, did limited due diligence after Colorado
enacted a law last year that opened up the state's cannabis
industry to outside money.
Schwazze said it remains in negotiations for other
previously announced acquisitions and recently
announced it had signed definitive acquisition
agreements to purchase 14 Star Buds retail locations in
Colorado for $118 million in cash and stock.
MedMen Loses Virginia MMJ Dispensary License
State regulators voted to rescind MedMen Enterprises'
license for a medical marijuana dispensary less than a
month after the state's governor signed a bill to legalize
MMJ. MedMen inherited the conditional license from
Chicago-based PharmaCann for $10 after a merger
between the two companies was scuttled in December
2019. The 6.64-acre location in Staunton was not
developed, violating the conditions required to receive
a license and begin MMJ sales.
Method Man Launches
Marijuana Firm
Rapper and actor Method Man said
he's launching a new marijuana
business specifically aimed at
boosting other Black-owned
cannabis companies. The business-dubbed Tical,
short for Taking Into Consideration All Lives, also the
title of Method Man's first solo album-will soon begin
selling marijuana products to Black-owned retailers in
California.
" Personally, it is essential that we use our brand
to help bring awareness to the social, systemic and
economic injustice in communities that have struggled
with oppressive mass incarceration and racially biased
policing policies, " Method Man, whose legal name is
Clifford Smith, said in a statement.
Dixie to Change Name
Denver-based marijuana edibles producer Dixie Brands
said it will change its name to separate itself from the
historic context of the word " Dixie " and to " stand shoulder
to shoulder with the Black community. " The 10-year-old
Denver-based company has operations in six states.
The company has not chosen a new name yet but said
it is committed to doing so as soon as possible. Name
suggestions can be sent to community@dixiebrands.com.
Trulieve Opens 50th
Florida Store
Florida-based Trulieve Cannabis Corp.
opened its 50th
June 26. The Ocala-based dispensary
is the first in Marion County and has
approximately 4,400 square feet and
10 point-of-sale stations.
Ancillary Biz Tries Plant-touching Route
Ancillary firm GreenGro Technologies of Anaheim,
California, acquired 4 acres in Southern California to
propagate CBD-rich hemp seeds. CEO Matthew Burden
said the project is expected to be operational by the
third quarter of 2020 and generating revenues by the
fourth quarter. Burden estimated seeds could fetch
$15,000 to $30,000 per pound wholesale.
August 2020 | mjbizdaily.com 19
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MJBizMag August 2020

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