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Thursday, December 7, 2023

Cannabis Weekly Round-Up: Plus Products Gets Acquired

In the cannabis space this week, a US adult-use edibles producer was acquired by a publicly traded cannabis producer in a blockbuster deal.

Additionally, just before the year wraps up, Canadian cannabis producer Organigram Holdings (NASDAQ:OGI,TSX:OGI) announced a couple of strategic investments and acquisitions, further solidifying a trend of mergers and acquisitions (M&A) for the cannabis market.

Keep reading to find out more cannabis highlights from the past five days.

MSO buys popular US cannabis brand

Glass House Brands (NEO:GLAS.A.U,OTCQX:GLASF) informed investors it will be acquiring US firm Plus Products for approximately US$25.6 million, delivered through unsecured convertible debt and equity.

Kyle Kazan, Glass House’s CEO, highlighted Plus Products’ reputation in the edibles space, particularly gummies.

“Our vertically integrated platform will allow us to expand the distribution of PLUS to the more than 700 stores in our network, as well as to our own retail stores, as we pursue top sales ranking in both flower and edibles categories in the country’s largest market,” Kazan said.

The executive remarked that the acquisition is being done with the anticipation of expanding the potential for PLUS branded products, which will be able to rival those of another major gummy producer.

“With its California presence and activities in other states, we believe PLUS has a wide path to playing at a national level at least equal to Wana, which was acquired by Canopy Growth in October at a value in excess of $297.5 million,” he added in the press release announcement.

Organigram makes end of year round of investments

New Brunswick-based cannabis operator Organigram has acquired Laurentian Organic for C$36 million through a cash-and-share transaction.

Organigram said this deal is a way to expand its presence in the premium product category. The company will gain additional product offerings in hash and craft cannabis.

“We look forward to building on the momentum that Laurentian has established to bring these products to even more Canadian provinces and territories,” Beena Goldenberg, CEO of Organigram, said of the Quebec company.

Additionally, Organigram bought C$2.5 million of secured convertible debentures in private biotechnology company Hyasynth Biologicals. The deal follows two separate initial investments in 2018 and 2020.

“(Hyasynth) have achieved tremendous scientific advancement in the cannabinoid biosynthesis space with technology expected to be protected by intellectual property,” Goldenberg said. “We remain committed to our investment in this strategic partner and look forward to helping Hyasynth advance its commercialization efforts.”

Cannabis company news

  • The Valens Company (TSX:VLNS,NASDAQ:VLNS) entered into two separate agreements with a Mexican drug supplier, PMI Mexico, involving a CBD supply strategy for trials and a manufacturing component. “The relationship we have built with PMI Mexico marks an important milestone for Valens’ international expansion and the beginning of our Central and Latin America strategy,” said Tyler Robson, CEO, chair and co-founder of the Valens Company.
  • Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) confirmed the launch of its Mood Ring pre-roll line of adult cannabis products in Canada. The launch is set up for Alberta and Ontario. “The pre-roll market is booming in Canada, and we’re pleased to introduce this in-demand format to our popular Mood Ring product mix,” Michael Cammarata, CEO and president of Neptune, said.
  • MediPharm Labs (TSXV:LABS,OTCQX:MEDIF) issued a notice to investors with an update on its business plans and strategy to achieve profit balance.
  • Clever Leaves Holdings (NASDAQ:CLVR) secured a license for a greenhouse facility in Portugal from regulatory authorities. “With this latest licensing to our Portugal expansion, we’re optimistic about the heights we’ll be able to reach in 2022 and beyond,” Clever Leaves CEO Kyle Detwiler said.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

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