Few industries have been kicking tail and taking names more so than marijuana. Having long been considered an illicit substance that was cast aside by legislators around the globe, cannabis is now a legitimate business model. Globally, over 40 countries have given medical marijuana the green light, with two (Canada and Uruguay) also allowing the recreational sale of the drug.
Massachusetts-based Curaleaf, a vertically integrated cannabis company, agreed to acquire Portland, Oregon-based Cura Partners in an all-stock deal worth 1.27 billion Canadian dollars ($949 million).
Curaleaf will issue 95.6 million subordinated voting shares, giving Cura a roughly 16% stake in the company.
The deal is the latest in a string of recent mega-deals in the cannabis space, including Harvest Health & Recreation’s $850 million acquisition of Verano Holdings and Cresco’s agreement to acquire Canadian distributor Origin House for CA$1.1 billion.
Canopy Growth has spent $300 million on its option to buy Acreage for $3.4 billion, following the triggering event. The terms of Harvest Health’s deal with CannaPharmacy haven’t yet been disclosed.
It should also be noted Ontario-based Canopy received a $4 billion investment last year from Constellation Brands, the Fortune 500 alcohol company which produces Corona and Modelo beers, Svedka vodka as well as Woodbridge and Robert Mondavi wines, among others.
More than a week later, there is still a lot of confusion about not only the nature of the deal. Canopy Growth isn’t buying Acreage. Instead, subject to shareholder approvals at both companies, it will pay $2.55 per share to shareholders of Acreage Holdings in order to provide an incentive to them to enter into an eventual merger that will take place in the future once certain conditions are met. Many of the actual terms of the transaction haven’t been released, with only the press release in the public domain at this time.
Looking for winning marijuana stocks? Two that probably should be on your short list are Aurora Cannabis (NYSE:ACB) and Scotts Miracle-Gro (NYSE:SMG). Shares of Aurora have soared more than 80% so far this year, while Scotts Miracle-Gro stock is up more than 35%.
Terra Tech Corporation (TRTC) runs multiple subsidiaries, including Blüm, a retail dispensary for medical cannabis products. The company has locations in Nevada and New Jersey, with a bulk of properties in California.
Financial Highlights
- For the three months ended December 31, 2018, revenue totaled $5.0 million, up from $1.8 million in the third quarter of 2018 and $0.0 million in the fourth quarter of 2017.
- Net loss was $11.7 million or $0.13 per share for the three months ended December 31, 2018, compared with a net loss of $778 thousand or $0.02 per share for the fourth quarter of 2017.
- As of December 31, 2018, the Company held $21.7 million in cash and cash equivalents.
The stock of U.S. cannabis seller Harvest Health & Recreation was up 5% on Tuesday, after the company reported strong growth and discussed its high hopes for the future. In early afternoon trading on the U.S. OTC Market, the stock (ticker: HRVSF.OTC) was at $10.05. Harvest shares also trade on the Canadian Securities Exchange. The stock is up more than 90% this year.
“This industry is at a unique inflection point,” Chief Executive Steve White said in a conference call. “We’re still early in the game.”
Pax Labs, a San Francisco-based maker of vaporizers, confirmed it raised $420 million in equity financing, a record for a U.S.-based marijuana company.
The firm said the round included both new and existing institutional investors, including New York-based Tiger Global Management and San Francisco-based Tao Capital Partners.
Pax’s raise nearly doubled the previous high for a U.S. cannabis company, a $250 million debt financing by California-based multistate marijuana operator MedMen in March.
The chief operating officer and general counsel of MedMen Enterprises have both resigned amid a broader employee shakeup at the American marijuana retailer.
Chief Operating Officer Ben Cook and General Counsel Lisa Sergi Trager — who also served on the company’s board — have quit, a source familiar with the matter tells CNBC. Senior Vice President of Corporate Communications Daniel Yi has also resigned.
Some members of the company’s design and technology teams were also let go as the company tries to makes itself more efficient under CEO Adam Bierman.