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Cannabis Briefs for September 15, 2020

September 15, 2020

•Vancouver, British Columbia-based Village Farms International has entered into an agreement with Emerald Health Therapeutics to acquire 100% of cannabis grower Pure Sunfarms. Village Farms already owns nearly 60% of Pure Sunfarms. To acquire the remaining shares, Village will pay $61 million, divided between a $45.8 million cash payment and a $15.2 million promissory note due six months from the transaction’s closing. For the six-month period ended June 30 this year, Pure Sunfarms generated total net sales of C$30.9 million and was the top-selling brand of flower with the Ontario Cannabis Store, the province’s state-run wholesaler and online retailer. The transaction is slated for completion in late October.

•Toronto, Ontario-based Cronos Group has shaken up its senior leadership. Mike Gorenstein, president, CEO, and chairman of Cronos since its founding in 2016, has been appointed executive chairman and will relinquish his role as president and CEO. The company has brought on Kurt Schmidt as president and CEO, a consumer packaged goods veteran with leadership experience at Nestlé S.A., Gerber, and Kraft Foods, among others. Cronos’ adult-use cannabis brands include Cove and Spinach.

•Oregon’s Liquor Control Commission, which oversees its cannabis program, has permanently legalized curbside cannabis sales. In rules enacted in response to Covid-19, retailers are allowed to take orders and deliver product to patrons up to 150 feet from their premises. Although the rule is being made permanent, commission staff said they would revisit it at a later date.

•Nebraska’s State Supreme Court struck down an upcoming ballot initiative to legalize medical marijuana in a recent ruling. Following a successful signature campaign that qualified the initiative for consideration in November, Lancaster County Sheriff Terry Wagner challenged it, arguing the proposal violated a rule limiting an initiative to a single subject. The plaintiff contended that the various provisions outlining distribution and retail structures were medical cannabis to become legal widened the scope beyond a single subject. The court ultimately agreed, blocking its path to public consideration.

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