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Cannabis Briefs for August 6, 2019

August 6, 2019

•Los Angeles, California-based Natural Hemp Company is launching Day One, a line of flavored sparkling waters infused with CBD. The lineup includes lemon, grapefruit, mango, lime, and watermelon, though only lemon is currently available, with the rest coming later this year. Each 12-ounce can contains 20 mg. of CBD but zero calories or added sweeteners. The brand is currently available at retail in the Los Angeles area and online with plans for it to be sold in select 7-Elevens, natural food stores, and big-box retailers. The cans retail at $5 individually and in 8-packs for $39.

•Cronos Group will make its first foray into the U.S. market with the acquisition of four subsidiaries of California-based Redwood Holdings for $300 million, $225 million of which will be paid in cash. Redwood, through its brand Lord Jones, specializes in luxury CBD lifestyle products like balms, bath salts, lotions, and other similar products. Robert Rosenheck and Cindy Capobianco, who will join Cronos and continue to lead the Redwood division, founded the company in 2017. Lord Jones products are distributed throughout most of the U.S. Ste. Michelle Wine Estates parent Altria took a $1.8 billion stake in Cronos late last year.

•Ontario-based TerrAscend has acquired Pennsylvania seed-to-sale operator Ilera for a total consideration of between $125-$225 million, paid in a combination of cash and TerrAscend shares. Expected to close in the fourth quarter, the deal will see TerrAscend gain Ilera’s cultivation and processing facility in Waterfall, PA, which includes a genetic library of over 170 cannabis strains. Ilera also has an existing dispensary in Plymouth Meeting, and plans to open two more in the next six months. Ilera’s management team will continue in their positions post-acquisition. Ilera is on track for 2019 sales of $43 million, according to TerrAscend, which is backed by Canopy Growth’s Canopy Rivers venture capital arm.

•Medical marijuana sales began today in Louisiana, marking the first legal access to cannabis in the state. Nine licensed pharmacies will carry products from GB Sciences Louisiana, developed in partnership with Louisiana State University’s Agricultural Center Therapeutic Cannabis Program. The first products available are 30-ml. bottles of sublingual tinctures of varying THC and CBD ratios and potencies. Louisiana approved medical marijuana in 2015 but had yet to open up sales until now.

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