MJBizMag October 2021 - 24

CompanyNews | U.S., Canada & International
By MJBizDaily and Hemp Industry Daily staff
Recent deals, acquisitions
and other announcements
from cannabis companies
Alberta, Canada-based SunStream is a joint
venture between Canadian cannabis company Sundial
Growers and Canadian investment management firm
SAF Group. The new financing is expected to leave
Greenrose with as much as $276 million " to fund its
growth strategy, " the company said.
TerrAscend to Buy Gage
in $545 Million Deal
North American cannabis
company TerrAscend plans to enter Michigan's marijuana
market after reaching a deal to buy local operator Gage
Growth in an all-stock transaction worth $545 million.
TerrAscend, which has operations in both the U.S. and
Canada, said the deal will give it a leading position in
Michigan.
Under terms of the deal, Gage shareholders will
receive 0.3001 common shares of TerrAscend in
exchange for each Gage share, representing an 18%
premium for Gage shares based on the companies'
closing share prices on Aug. 31.
The acquisition includes three cultivation and
processing facilities and 10 operating dispensaries.
Detroit-based Gage had $32.8 million in cash " with
minimal debt " as of June 30.
Ascend Wellness Borrows at Least $210 Million
New York-based marijuana multistate operator Ascend
Wellness Holdings said it secured a loan of at least
$210 million at an interest rate of 9.5%. Ascend can
increase the loan by up to $65 million, " subject to
certain conditions. "
The senior secured debt will be used to repay
" substantially all " of Ascend's outstanding debt, except
for roughly " $12 million of outstanding acquisition
payments with near-zero interest rates, " the company
said in a news release.
The money will also be used to finance Ascend's
pending investment in MedMen NY and " support
(Ascend's) future growth and acquisition initiatives. "
Marijuana SPAC Greenrose Secures up to $103 Million
Marijuana industry special purpose acquisition company
Greenrose Acquisition Corp. of Woodbury, New York,
said it has reached agreements for up to $103 million in
funding from SunStream Bancorp.
" SunStream's investment comprises $78 million in a
multi-tranche senior secured loan facility and
$25 million in unsecured convertible notes, " Greenrose
said in a news release.
22 MJBiz Magazine | October 2021
Tilray Acquires Majority of MedMen Debt
Canadian license holder Tilray acquired a majority of the
debt that California-based MedMen Enterprises owes to
New York hedge fund Gotham Green Partners and other
funds. According to a news release, Tilray bought nearly
$166 million in convertible secured notes and warrants.
The move gives Tilray a shot to acquire MedMen in the
future as well as entry into the U.S. marijuana market in
the event of federal legalization. Under terms of the deal,
a full acquisition can only follow federal U.S. marijuana
legalization.
The deal also gives MedMen an out if the company
repays all the existing debt by 2028, before the notes
mature.
Cannabis Platform Leafly
Goes Public Via SPAC Merger
Leafly, an online cannabis guide
and news website based in Seattle, plans to go public via
a merger with Merida Capital Holdings, a special
purpose acquisition company (SPAC) in New York.
The deal will give Leafly up to $161.5 million to
expand its business in states that recently legalized
marijuana, including New York.
At closing, the combined company is expected to
be valued at roughly $385 million with equity value
of approximately $532 million, according to a news
release. Existing Leafly shareholders are expected to
own approximately 72% of the combined company.
Merida, a so-called blank-check company, will adopt
the Leafly name, and the combined company's common
stock will be listed on the Nasdaq.
Scotts Miracle-Gro Places $150 Million in RIV Capital
The Scotts Miracle-Gro Co. is launching The Hawthorne
Collective, a new subsidiary that will allow the Ohiobased
lawn and garden giant to invest in emerging areas
of the marijuana industry.
The Collective announced a strategic investment in
August in Toronto-based RIV Capital, which until earlier
this year was a subsidiary of cannabis giant Canopy
Growth. The deal makes RIV Capital the Collective's
" preferred vehicle " for cannabis-related investments that
are not currently within the purview of the Hawthorne
U.S. DEVELOPMENTS
MJBizMag October 2021

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