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Cannabis Briefs for December 28, 2021

December 28, 2021

•Las Vegas, Nevada-based cannabis retailer Planet 13 has entered a definitive arrangement to acquire California-based cannabis grower Next Green Wave for approximately $71 million. Next Green Wave operates a 35,000 square foot indoor facility in Coalinga, California that will form the backbone of Planet 13’s California operations going forward and allow the company to introduce its portfolio of exotic cultivars to its Santa Ana superstore and elsewhere across the state. Planet 13 plans to retain Green Wave’s management team after the transaction closes, expected in the first quarter of next year.

•Georgia-based Sweetwater Brewing, owned by Canadian cannabis giant Tilray, has acquired California’s Green Flash Brewing and Alpine Beer Company for an undisclosed sum. This new deal marks a continuation of Tilray’s beverage alcohol forays in the U.S., where it also acquired Colorado’s Breckenridge Distillery in the weeks before Christmas. Sweetwater also recently unveiled a new brewery in Colorado, which is now open to the public and is slated to begin production for distribution in early 2022. With the move into California via the Green Flash deal, Sweetwater and Tilray are continuing to build their western footprint.

•Moncton, New Brunswick-based Organigram Holdings announced it has acquired 100% of Laurentian Organic, a Quebecois cannabis company that produces leading premium hash brand Tremblant Cannabis and craft brand Laurentian. Organigram paid C$10 million ($7.8m) in cash and C$26 million ($20m) in stock, with additional earnouts payable based on meeting certain EBITDA thresholds through 2022 and 2023. The deal strengthens Organigram’s presence in Quebec and bolsters its product selection with the addition of Tremblant hash and Laurentian craft cannabis. Organigram plans to invest at least C$7 million ($5.5m) in Laurentian’s facilities to drive cultivation growth, expand processing capacity, and increase automation, which it expects to be realized next summer.

•New York regulators have made a number of adjustments to the rules surrounding CBD. The state’s Cannabis Control Board, which also administers the hemp industry, most notably removed the requirement that cannabinoid hemp products be shelf-stable, which paves the way for food and drink products containing CBD and other cannabinoids. The Board also added a new definition of craft hemp products: the producer must grow fewer than 1,000 pounds of dried hemp a year and the product must be hand trimmed, hang dried, and hand packaged. Another change increases the upper limit for THC concentration during hemp processing from 3% to 5%, giving producers more wiggle room.

•Long Beach, California-based Glass House Brands is acquiring Plus Products, a California edibles company. The transaction is valued at approximately $25.6 million and will be completed through a combination of unsecured convertible debt and equity plus additional performance-based consideration. Plus Products specializes in gummies, with its namesake line available in six flavors including Sour Blueberry and Concord Grape, among others. Glass House went public via SPAC when it was acquired by Mercer Park Brand Acquisition Group in a deal announced last April.

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