A Canadian cannabis producer has announced its plan for entering the US adult-use market.
Also this week, NBA athlete Kevin Durant, who recently joined the investment scene, announced a partnership between his firm Thirty Five Ventures and Weedmaps, an online cannabis marketplace.
Keep reading to find out more cannabis highlights from the past five days.
Tilray’s pursuit of US market puts it in line with operator
On Tuesday (August 17), Tilray (NASDAQ:TLRY,TSX:TLRY) confirmed that its intention to secure an entry into the US cannabis market has moved closer to becoming a reality.
The producer plans to buy a “majority of the outstanding senior secured convertible notes” of MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF), now held by Gotham Green Partners.
“The investment we are announcing in MedMen securities today … is a critical step towards delivering on our objective as we work to enable Tilray to lead the US market when legalization allows,” Tilray Chairman and CEO Irwin Simon said in a release.
The complicated maneuver will earn Tilray approximately US$165.8 million worth of MedMen’s convertible debt notes. However, a report from the Globe and Mail indicates the company has struggled to gather an investor majority to raise the funds needed to move forward with the transaction. Simon said the company’s largely retail investor base makes it difficult to collect a unifying vision.
Tom Lynch, chairman and CEO at MedMen, celebrated the deal by saying the company has faced a tremendous turnaround from its scandalous past.
“We are grateful to our stakeholders for their patience and support as we worked to fix the business and rebuild trust and credibility,” said Lynch after the transaction was announced. “We believe that patience has paid off, as these efforts have succeeded in attracting partners who share our vision for building the world’s most powerful cannabis retail brand.”
NBA superstar inks deal with cannabis tech entity
Durant, a two-time NBA champion and current start of the Brooklyn Nets, told ESPN his company’s partnership with Weedmaps is a way to try to destigmatize cannabis in the US.
“I think it’s far past time to address the stigmas around cannabis that still exist in the sports world as well as globally,” he said.
For his part, Chris Beals, CEO of Weedmaps, said the partnership underscores a responsibility to hold conversations about the cannabis industry and its rules in the US.
“This partnership with Kevin Durant, Rich Kleiman, and the team at Thirty Five Ventures is a pivotal step forward in our ongoing efforts to break down stigmas surrounding cannabis, especially in the sports industry,” he said about the deal.
Weedmaps went public in June after merging with a special purpose acquisition company previously known as Silver Spike Acquisition. The company now trades as WM Technology (NASDAQ:MAPS).
Cannabis company news
- TerrAscend (CSE:TER,OTCQX:TRSSF) told investors it has upped its stake in its New Jersey subsidiary to 87.5 percent via a payment of US$25 million in cash and a separate US$25 million done in combination with cash and TerrAscend common shares.
- Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) released its financial report for the Q2 period, which ended on June 30. The company reported a net loss of US$37.4 million despite posting a 56 percent quarterly uptick in revenue for a total of US$91.3 million. The company has increased its revenue guidance for the next quarter and the whole year as well.
- Rubicon Organics (TSXV:ROMJ,OTCQX:ROMJF) issued its Q2 financial results to investors. “Our share of the premium cannabis segment in Canada remains strong and we remain the go to organic brand among consumers,” Jesse McConnell, CEO of the firm, said. The company celebrated the fact that its brands have retained leading positions across provincial markets in Canada. However, the firm reported a net loss of C$5.1 million.
- HEXO (NYSE:HEXO,TSX:HEXO) confirmed a new public offering worth US$140 million. The company plans to use the proceeds to close its acquisition of Canadian cannabis producer Redecan and for expenses related to its US expansion plans.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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