Canada’s CannaRoyalty continues California cannabis investment spree

CannaRoyalty signed a multimillion-dollar deal to acquire FloraCal Farms, a move that expands the Ontario-based firm’s California portfolio.

Highlights of the transaction include:

  • Total purchase price of Sonoma County-based FloraCal includes 1.3 million Canadian dollars ($1 million) in cash and 3.5 million shares of CannaRoyalty.
  • CannaRoyalty will provide an additional CA$3.8 million in cash and 3.5 million more CannaRoyalty shares over three years, based on performance milestones built into the deal. Those milestones include a commitment by FloraCal to fully expand into its 42,000-square-foot facility and meet certain product thresholds and cost controls.

The deal follows CannaRoyalty’s acquisitions in March of three California businesses: RVR, a large-scale medical and recreational marijuana distributor; Alta Supply, a small MMJ distributor; and Kaya Management, an edibles and vaporizer maker.

Marketed as a grower of ultra-premium flower product, FloraCal posted $6.4 million in revenue in 2017.

CannaRoyalty is among a growing number of larger, publicly traded Canadian firms that are increasing their stake in the California market, where there are no residency requirements for ownership of cannabis businesses.

CannaRoyalty trades on the Canadian Securities Exchange under the ticker symbol CRZ and on over-the-counter markets as CNNRF.

2 comments on “Canada’s CannaRoyalty continues California cannabis investment spree
  1. S Leonard on

    I am an investor and have heard that the MJ stocks are overvalued I have lost a lot of money in these stocks as many supposedly smart people are giving advice to invest in these stocks So you think this is just a scam an article about Canopy (the biggest company) is giving its board lots of money. If this is true it is terrible to lead people on in an illegal scam

    Reply
    • Joe Trimmer on

      It’s is a scam only if Canopy if fact did not aquire these companies and it is being knowingly falsely reported It’s up the investor to evaluate if these acquisition increased the value of Canopy. While it is nice FloraCal posted 6 4 million in revenues in 2017 one needs to ask what was left after expense. Were there profits for the share holders? Guess Canopy felt there were or they are going to be in the future. One should bear in mind that OTC investments are very speculative.

      Reply

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