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Cannabis Briefs for November 23, 2021

November 23, 2021

•Jushi Holdings has entered an agreement to acquire Nevada operator NuLeaf for $62.5 million. NuLeaf’s business encompasses two operational dispensaries—in Las Vegas and Incline Village on Lake Tahoe—along with a 27,000 square foot cultivation facility in Sparks, Nevada and a 13,000 square foot processing plant in Reno. NuLeaf is in the process of opening another retail location on the Vegas Strip that’s expected to open its doors early next year. The transaction will be made of an initial payment of $52.5 million split between $15.75 million in cash, $21 million in Jushi shares, and a $15.75 million promissory note. An additional $10 million will be paid, split the same way, contingent on the third shop opening. The acquisition should close sometime in the first half of next year.

•Ayr Wellness will pay $55 million for two recreational dispensaries in Chicago. It’s agreed to acquire Gentle Ventures LLC, which does business under the name Dispensary 33 at its locations in Chicago’s Andersonville and West Loop neighborhoods. The $55 million will be paid up front, consisting of $12 million in cash, $3 million in sellers notes, and $40 million in stock, with an additional earnout contingent on EBITDA goals through the third quarter of next year. Ayr Wellness has established operations in Massachusetts and Nevada and has made other acquisitions to enter Pennsylvania, Ohio, Arizona, and Florida.

•Canopy Growth has partnered with Uber Eats through its Tokyo Smoke retailers. Beginning this week, customers in Ontario can place cannabis orders for pickup at Tokyo Smoke locations through a dedicated section of the Uber Eats app. A cannabis category in the app will take users to the menu of Tokyo Smoke locations in their area, where their order will be ready for pickup within an hour. The move follows Uber’s acquisition of alcohol delivery service Drizly, which spun off its own cannabis delivery service, Lantern, at the time of the acquisition.

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