The Week In Cannabis: New ETF, First Delivery App On Apple, FBI, Sundial, M&A And

Investor


Below is a recap of the main news related to the cannabis industry and markets for the week of July 5, 2021.

A New Cannabis ETF

There’s a new cannabis ETF in town, and it’s leveraged.

Launched by ETF Managers Group (ETFMG), the thematic exchange-traded fund issuer behind the world’s largest cannabis ETF, the ETFMG Alternative Harvest ETF (NYSE:MJ), ETFMG 2x Daily Alternative Harvest ETF (NYSE:MJXL) is designed to seek daily leveraged exposure of 2x to the performance of its Prime Alternative Harvest benchmark index.

Weed Delivery On The App Store

Eaze became the first cannabis delivery company to launch an app on Apple (NASDAQ: AAPL)’s App Store, which recently changed its policies to allow cannabis-focused apps on its store.

“The shoppable Eaze app is a major milestone for the legal cannabis market and consumers,” the company stated.

Benzinga Cannabis’ content is now available in Spanish on El Planteo.

Via the new app, users can complete registration ID, verification, product selection, payment and, best of all, doorstep delivery.

Markets

Over the four trading days of this week:

  • The ETFMG Alternative Harvest ETF (NYSE:MJ): lost 3.6%.
  • The AdvisorShares Pure Cannabis ETF (NYSE:YOLO): tumbled 2.9%.
  • The AdvisorShares Pure US Cannabis ETF (NYSE:MSOS): rose 1.3%.
  • The Cannabis ETF (NYSE:THCX): was down 2.8%.
  • The Amplify Seymour Cannabis ETF (NYSE:CNBS): tumbled 2.6%.
  • The SPDR S&P 500 ETF Trust (NYSE:SPY) closed the week up 0.4%.

FBI Reconciles With Pot

The FBI has quietly loosened its policies regarding past marijuana consumption among its potential agents.   

Candidates who have not consumed marijuana for over one full year prior to their application date can now be considered for a job with the Federal Bureau of Investigation.

The FBI’s previous policies required would-be agents to have abstained from any form of marijuana or cannabis in any location (domestic or foreign), for at least three years.

Sundial And SunStream Bancorp

Sundial Growers Inc. (NASDAQ:SNDL) raised its financial commitment to SunStream Bancorp Inc by CA$350 million($282.4 million), taking the total investment to CA$538 million.

Sundial announced in March the launch of a 50/50 joint venture with SAF Opportunities LP – a member of the Canadian alternative investment management firm SAF Group – through a new corporation, SunStream Bancorp.

The entity was formed to create investment opportunities in the cannabis space by issuing loans, as well as hybrid investments in cannabis businesses and marketable securities.

In addition, the joint venture was projected to pursue other opportunities as well, including a Canadian SPAC.

Regulatory Updates

Rhode Island Gov. Dan McKee signed into law a bill that will establish a safe consumption site pilot program wherein people can test as well as use illicit drugs in a medically supervised environment, making Rhode Island the first state in the nation to establish such a program, which supporters say will save lives.

The legislation was approved by the House of Representatives in late June after many starts and stops.

Sha’Carri Richardson’s recent cannabis controversy seems to have encouraged the Nevada Athletic Commission to unanimously decide to change its anti-doping policy on Wednesday and no longer suspend athletes for marijuana possession or use.

Athletes in Nevada will now not have fear automatic disqualification from their sport for smoking pot. 

Financings And M&A

Greenlane Holdings, Inc. (NASDAQ:GNLN) and KushCo Holdings, Inc. (OTCQX:KSHB) are wrapping up their merger.

On Tuesday, the companies announced the commencement of the proxy solicitation in connection with the all-stock deal, under which KushCo agreed to become a wholly-owned subsidiary of Greenlane.

Shareholders of both companies will vote to approve the merger agreement on August 26.

IM Cannabis (CSE: IMCC) (NASDAQ: IMCC) completed its previously announced acquisition of MYM Nutraceuticals (CSE:MYM) valued at CA$85 million ($67.6 million).

Harborside Inc. (CSE:HBOR) (OTCQX: HBORF) finalized its previously announced purchase of an Oakland-based cannabis manufacturer Sublimation Inc. (“Sublime”) for $43.8 million.

Choom Holdings Inc. (CSE:CHOO) (OTCQB:CHOOF) finalized the restructuring of its roughly $25.9 million in outstanding debt. This includes the $21.8 million that the company owes to Aurora Cannabis Inc. (NASDAQ:ACB).

As part of the agreement, the Canadian cannabis giant opted to convert the outstanding debt into 79,754,843 of Choom’s common shares, resulting in Aurora taking a 19.9% stake in Choom. The price per share, however, remained undisclosed.

Hempfusion Wellness Inc (OTC:CBDHF) closed the previously announced acquisition of Sagely Enterprises, Inc. in a $25 million stock-and-cash deal.

NewLake Capital Partners closed the acquisition of a parcel of land in Phoenix, Arizona for a total investment of up to $20.5 million.

Khiron Life Sciences Corp. (TSXV:KHRN) (OTCQX: KHRNF) launched an overnight marketed offering on Monday of the company’s units with a price of 45 cents per offered unit.

The Toronto-headquartered company announced the terms of the offering on Tuesday, reporting that A.G.P./Alliance Global Partners agreed to sell 27.44 million units at a price of 45 cents per unit for gross proceeds of $12.35 million.

High Tide Inc. (TSXV:HITI) (NASDAQ:HITI) (FRA:2LYA) purchased Daily High Club, an online cannabis accessories retailer, for $10 million.

Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX: ROMJF) issued an $8 million principal amount secured debenture to Green Island Investment Ltd. in relation to a debt financing transaction. The debenture bears an interest rate of 6.5% per year and has a two-year term. 

Germany-based vertically integrated medical cannabis company Eurox Group has received a €3 million ($3.55 million) investment from FastForward Innovations Ltd (LON: FFWD), an AIM-quoted company focused on fast-growing industries.

Under the agreement, FFWD will hold 8.85% of Eurox, following the issuance of new shares.

Green Check Verified (GCV) completed an oversubscribed $3 million convertible note financing with lead investor Flatiron Venture Partners. The round was also backed by a new investor Robert Wolf, founder of 32 Ventures and ex-chairman and CEO of UBS Americas. Fenway Summer Ventures and Bravos Capital were also involved.

Clark Hill, a Detroit-based international law firm, has combined with the Hoban Law Group, a highly influential firm focused on cannabis and hemp.

Marijuana Company of America, Inc. (OTC:MCOA) acquired distribution company cDistro, Inc. in a stock-for-stock transaction. cDistro shareholders will hold approximately 5.23% of the issued and outstanding common stock of MCOA.

Verano Holdings Corp. (CSE:VRNO) (OTCQX:VRNOF) closed the acquisition of Mad River Remedies, LLC, a dispensary in Dayton, Ohio, bringing its number of operating retail locations within the state to five.

Earnings Reports

Chalice Brands Ltd., formerly Golden Leaf Holdings Ltd. (CSE:CHAL) (OTCQB: CHALF) pre-announced its unaudited second-quarter earnings with a record quarterly revenue from continuing operations of $6.8 million.

The Portland, Oregon-based company noted that its record revenue of $6.8 million is 23% higher from the same period in 2020, which amounted to $5.5 million.

Icanic Brands Company, Inc. (CSE:ICAN) (OTCQB:ICNAF) generated CA$3.236 million ($2.621 million) in the third quarter of 2021, representing a year-over-year and sequential increase of 88.4% and 11.7%, respectively.

Innovative Industrial Properties, Inc. (NYSE:IIPR) revealed its operating, investment and capital markets activity from the past three…



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