MJBizMag February 2022 - 17

COMPANY NEWS
interest rate and are due in 2025,
among other conditions.
CV Sciences' Former CEO
Wants $5M for Tax Bill
The founding CEO of California
CBD maker CV Sciences wants the
company to pay him $5.3 million to
settle a federal tax bill he says should
have been withheld years ago.
The lawsuit from Michael Mona
Jr. says San Diego-based CV
Sciences paid him almost
3 million restricted stock units as
part of a 2018 agreement in which
he stepped down after settling a
dispute with the U.S. Securities and
Exchange Commission.
Mona, who co-founded the company
in 2012, says CV Sciences was
supposed to withhold applicable
taxes but didn't. He is asking a federal
judge to award him $5.3 million
to settle his bill with the IRS.
Planet 13 to Acquire
Next Green Wave
Planet 13 Holdings, a Nevada-based
marijuana company with operations
in California,
agreed to a
deal worth
$70.3 million to
acquire indoor
cannabis producer Next Green Wave
Holdings (NGW). NGW operates a
facility in Coalinga, California, that
" is home to its nursery, cultivation,
distribution and future packaging
business, " Planet 13 said.
Under terms of the agreement,
Next Green Wave shareholders will
receive 0.1081 Planet 13 shares and
$0.0001 in cash per each Next Green
Wave share. The deal is expected to
close in the first quarter of 2022.
AFC Gamma Seeks to Raise
$61.5M With Stock Offering
Marijuana industry real estate
financier AFC Gamma launched
an underwritten public offering of
3 million shares of common stock.
The underwriters will have a 30-day
option to
purchase
up to
450,000
more
shares, the Florida-based company
announced.
The stock offering will be
priced at $20.50 per share, with
anticipated gross proceeds of
$61.5 million, not including
underwriting discounts,
commissions, other expenses or
the underwriters' additional share
purchase option, AFC Gamma said.
Additionally, AFC Gamma and
Viridescent Realty Trust teamed
up to lend $100 million to multistate
cannabis operator Acreage
Holdings, with an option to lend a
further $50 million.
The initial credit facility includes
$60 million from AFC Gamma,
$30 million from Texas-based
Viridescent and $10 million from
an unspecified affiliate. It carries a
9.75% annual interest rate, payable
monthly. The credit facility has a
maturity date of January 2026.
New York-based Acreage said
it plans to use the senior secured
credit facility " to fund expansion
initiatives, repay existing debt and
provide additional working capital. "
Texas CBD Retailers
Face Employee
Overtime Lawsuit
Two Texas CBD stores are being
sued by a former employee who
says they illegally scammed
workers out of overtime pay. The
lawsuit accuses two CBD USA Plus
franchises managed by Jay and
Jamie Ashley of having workers
shuffle between stores in Sherman
and Denton, both in North Texas,
to avoid paying overtime.
The Ashleys live in Oklahoma,
where they own three CBD USA
Plus franchises. CBD USA Plus has
more than 80 locations.
MariMed to Acquire
Kind Therapeutics
Massachusetts-based MariMed
announced a $20 million deal to
acquire Kind
Therapeutics,
a vertically
integrated
medical
marijuana
business in
Maryland. The purchase price will
be paid with cash and promissory
notes.
The two companies agreed to
a partnership and joint venture
in 2016, but the deal collapsed.
MariMed also has a presence in
Illinois.
Glass House to Acquire
Plus Products for $26M
Southern California-based Glass
House Brands said it will acquire
marijuana edibles
maker Plus
Products in a deal
worth $26 million.
Glass House
noted that the
purchase price is a
mixture of unsecured debt, equity
and " additional performance-based
consideration. " The deal is expected
to close in the first quarter of 2022.
Hemp Firm Wins USDA
Carbon Research Grant
Heartland Industries, a Detroitbased
company that engineers
hemp fibers as additives for
plastic, got a $360,000 grant from
the U.S. Department of Agriculture
to research the effect of hemp and
regenerative farming on soil health
and carbon sequestration.
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MJBizMag February 2022

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