Marijuana Business Magazine February 2019

Arizona-British Columbia Merger Cannex Capital Holdings of Vancouver, British Columbia, and 4Front Holdings , an Arizona- based multistate marijuana firm, announced plans to merge. The all-stock deal, which places an approximate valuation of more than $230 million on 4Front, is subject to shareholder approval and reviews by the Canadian Securities Exchange (CSE). The combined company will trade on the CSE under the ticker symbol CNNX and own or manage: • Six cultivation and production facilities in Illinois, Massachusetts and Washington state. • Five retail operations in Illinois, Maryland, Massachusetts and Pennsylvania. • Licensing agreements for up to nine dispensaries, expected to open by the end of 2019, in Maryland, Massachusetts and Pennsylvania. Texas Cannabis Firm Gets $20 Million in Debt Financing San Antonio-based Alternate Health Corp ., which develops technology solutions for the cannabis industry, signed a letter of intent with Agincourt Ventures to receive $20 million in debt financing. Alternate Health recently obtained permits for cannabis manufacturing, distribution, cultivation and processing. It also leased a 14,800-square-foot facility in Humboldt County, California. Alternate Health plans to use the $20 million to ramp up operations at the Humboldt County facility and begin developing its cannabis brand. Double Barrel Partnership Double Barrel , a Californiamaker of a dual-oil chamber vaporizer of the same name, is partnering with Verano Holdings , a national, vertically integrated operator of licensed cannabis cultivation,manufacturing and retail facilities. The Double Barrel vaporizers will be loaded with Verano-made oil and sold inVerano-owned dispensaries, beginning in Illinois. In 2019, Double Barrel also plans to be inVerano dispensaries in Florida, Maryland and Nevada. CannAmerica Brands Raises $7.5 Million CannAmerica Brands , a portfolio of cannabis holdings in Colorado, Maryland and Nevada, raised $7.5 million (CA$10 million) through a private placement, with Canaccord Genuity and Gravitas Securities acting as the co-lead agents. The company plans to use the proceeds to pay for more acquisitions. Marlboro Maker Invests Big in Cronos Altria Group , one of the largest tobacco companies in North America, agreed to invest $1.8 billion (CA$2.4 billion) in Ontario-based cannabis producer Cronos Group . The deal will give Altria a 45% ownership interest in Cronos. Altria also agreed to make Cronos its exclusive part- ner for international cannabis opportunities. The entry of Altria—the owner of Marlboro maker Philip Morris USA and an investor in alcohol giant AB InBev —is another major milestone for the marijuana sector, coming on the heels of Constellation Brands’ bombshell investment in Canopy Growth in August. Tilray Two-Step: AB InBev and Sandoz Belgium-based AB InBev , which includes Budweiser in its huge portfolio of beer brands, is partnering with British Columbia-based Tilray , which produces cannabis brands such as Marley Natural. Each will chip in $50 million toward a Canadian venture dedicated to researching drinks infused with THC and CBD. The agreement is limited to research and falls short of actual production of marijuana-infused drinks. Tilray also reached an agreement with Sandoz , a subsidiary of Swiss pharmaceutical giant Novartis , to work together to produce nonsmokable cannabis, such as vape oils, and distribute it in countries where medical cannabis is legal. Vancouver Company Buys San Diego MJ Distributor Vancouver, British Columbia-based Sunniva acquired LTYR Logistics , a California-based cannabis distribution company, in a stock deal valued at $5.9 million (CA$7.9 million). LTYR Logistics, headquartered in San Diego, will become Sunniva’s logistics and technology distribution platform. Toronto Acquisitions Firm Snags U.S. Grower Lineage Grow Co. , a cannabis-focused acquisitions firm in Toronto, acquired California-based Agris Farms for $6.6 million. Agris operates a 40,500-square-foot greenhouse facility and a 3,000-square-foot indoor facility in Yolo County, California. The Yolo facility pro- duces 6,000 pounds of craft cannabis annually. CANADA DEVELOPMENTS