Cannabis Briefs for August 25, 2020August 25, 2020
•Two of Canada’s biggest cannabis retailers, High Tide and Meta Growth, are merging. High Tide will acquire Meta Growth in an all-stock transaction, the total value of which was not disclosed. Under the terms of the deal, High Tide shareholders will control approximately 55% of the combined entity and Meta Growth shareholders will hold 45%, with two Meta Growth executives slated to replace High Tide representatives on the board. Raj Grover, CEO of High Tide, will lead the combined company. Once completed, the company will be the largest Canadian cannabis retailer with 63 retail locations and C$133 million ($100.5m) in annualized revenue.
•Chicago-based Green Thumb Industries is planning to raise an additional $150 million through the sale of 10 million shares of subordinate voting stock. The company said it would use the funding for potential acquisitions and investments along with generally increasing its capitalization and financial flexibility. The move follows its most successful financial quarter yet, during which revenue neared $120 million.
•New York and Toronto-based TerrAscend Corp. saw sales grow by 36% in the three months ended June 30, according to its latest earnings report. Sales reached C$47.2 million ($35.6m) in the quarter—up from C$34.8 million ($26.3m) the quarter before—driven by profitable operations in Pennsylvania and its retail presence in California. A total adjusted EBITDA of C$11.4 million ($8.6m) is a standout metric for a company that is still very much in expansion mode, with plans to extend its retail footprint in Pennsylvania, California, and New Jersey.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.