A Canada-based cannabis operator working in the US announced an acquisition plan for a Michigan-based company with licenses and storefronts this week.
Meanwhile, Leafly celebrated a policy change that will allow it to offer in-app purchasing to more users.
Keep reading to find out more cannabis highlights from the past five days.
M&A train keeps rolling in cannabis market
TerrAscend (CSE:TER,OTCQX:TRSSF) told investors this week that it will acquire the shares of Michigan-based cannabis operator Gage Growth (CSE:GAGE). The deal will amount to approximately US$545 million, and will increase TerrAscend’s market presence to five US states.
“We look forward to leveraging Gage’s profound connection with Michigan’s consumers, in addition to its established partnerships with award-winning brands like COOKIES, to provide our patients and customers with best-in-class product offerings and retail experiences,” Jason Wild, executive chairman at TerrAscend, said in a statement.
The new corporate entity will manage 34 stores across the US market. According to the announcement, Gage is set to open 10 additional stores in Michigan “in the coming months.”
The Michigan operator counts Bruce Linton, former Canopy Growth (TSX:WEED,NASDAQ:CGC) CEO, as its chairman, and he told BNN Bloomberg that Michigan is a very desirable market for a cannabis company looking for growth in the US. The executive praised the deal as a win for the two shareholder groups.
“Gage shareholders become about 20 percent of TerrAscend and so it’s not really about the dollar price is that percentage ownership and how much can we make the overall TerrAscend entity worth and I think there’s a lot of upside,” Linton said.
Cannabis tech platform celebrates change in rules
Cannabis digital operator Leafly announced an update to its app for Apple (NASDAQ:AAPL) devices, saying it now includes in-app purchasing from licensed cannabis dispensaries.
The change comes by way of Apple updating its rules and standards when it comes to cannabis opportunities. “Apple’s decision to update their guidelines is a huge step forward in ending outdated policies that limit access to legal cannabis,” Yoko Miyashita, Leafly CEO, said.
Through the app, consumers can find dispensaries and the products available within those stores.
Cannabis company news
- Harvest Health & Recreation (CSE:HARV,OTCQX:HRVSF) will sell its official medical marijuana treatment center license in Florida to Planet 13 Holdings (CSE:PLTH,OTCQB:PLNHF). The deal will bring the cannabis operator US$55 million in cash.
- Flora Growth (NASDAQ:FLGC) obtained an authorization permit for a manufacturing facility in Colombia; this is equivalent to good manufacturing practices standards, according to the company. “As we look to bring our premium brands and products to markets around the world, this certification represents a key component of our supply chain strategy and distribution plan,” Luis Merchan, president and CEO of Flora Growth, said.
- The Flowr Corporation (TSXV:FLWR,OTC Pink:FLWPF) released its financial results for Q2 and the first half of the year. The company reported a net loss line of C$7.5 million for the quarter despite recording increases in its net revenue. Darryl Brooker, CEO of Flowr, said a slower-than-expected sales rollout in Quebec affected the company’s results for the three month period.
- Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) confirmed the launch of a premium cannabis extract brand, Origyn Extracts, in Pennsylvania. “We will continue to invest significant talent behind Origyn and the rest of our cohort of national brands, which will include Kynd premium flower and (following closing of the related acquisition) Levia,” Jonathan Sandelman, CEO of Ayr, said.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Gage Growth is a client of the Investing News Network. This article is not paid-for content.
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