Marijuana Business Magazine October 2019

Marijuana Business Magazine | October 2019 22 Recent deals, acquisitions and other announcements from North American cannabis companies By Omar Sacirbey Company News | U.S. & Canada Dixie Strikes Deal With Arizona Beverage Co. Denver-based Dixie Brands , a longtime manufacturer of marijuana-infused products, reached a licensing deal with Woodbury, New York-based Arizona Beverage Co. , the firm behind Arizona Iced Tea. Under the licensing agreement: • Dixie will manufacture marijuana-infused products and distribute them through state-legal cannabis retailers. • Arizona Beverage can purchase an ownership stake in Dixie for up to $10 million. Dixie’s board must sign off on the arrangement. Medicine Man Continues Buying Spree Medicine Man Technologies in Denver continued an impressive buying spree with its purchase of Strawberry Fields, a cannabis operator based in Colorado Springs, Colorado, for $31 million in stock and cash. The company also purchased Colorado Harvest Co. and its three cannabis storefronts for $12.5 million. Medicine Man said it is paying $4 million in cash and 2.8 million shares of common stock valued at $2.95 per share, equal to $8.5 million in stock. The purchases mark Medicine Man’s ninth and 10 th acquisitions this year, according to a news release, including five cannabis stores acquired from Starbuds in a separate cash-and-stock deal. Colorado Harvest has been operational for a decade in the Denver area, and the acquisition will bring Medi- cine Man’s cannabis footprint in the state to 12 stores. Cresco Gets OK to Buy New York MMJ License Chicago-based Cresco Labs , one of the country’s largest multistate cannabis operators, received regulatory approval to acquire one of 10 vertically integrated medical licenses in New York. The license, which will allow for one cultivation and four dispensary facilities in the state, is linked to Cresco’s purchase of Valley Agriceuticals . The acquisition is expected to close at the end of August. It was first announced Oct. 24, 2018, with Cresco agreeing to pay $32.5 million in cash and more than 13.47 million in shares, 5.3 million of which are contingent on certain targets being reached. As of press time, that would imply a value of up to approximately $106 million. Valley Agriceuticals is developing a 75,000-square-foot cultivation and processing facility inWallkill, NewYork. The company operates two existing dispensaries in the state and plans to open two others within the next two weeks, Cresco said. BR Brands Buys Mary’s Brands Greenwich, Connecticut-based BR Brands bought Denver-based Mary’s Brands , the maker of tinctures, skin patches, capsules and more, for an undisclosed amount. BR Brands owns and distributes a range of cannabis and hemp products. After the deal closed, Mary’s Brands CEO Lynn Honderd stepped down as CEO but remains an adviser. Mary’s Brands include: • Mary’s Medicinals, a line of THC products. • Mary’s Nutritionals, a line of hemp-derived CBD products. • Mary’s Tails, a line of hemp-derived CBD products for pets. BR Brands also announced it has raised $60 million in a Series A capital funding backed by its strategic capital partner, Rose Capital. Rising Ohio Cannabis Company Raises $38 Million Ohio-based Green Growth Brands , which sells personal-care items, completed an initial equity raise for $37.8 million. Green Growth will use the proceeds of the raise toward funding: • The balance of the cash purchase price for the acquisition of Nevada Organic Remedies . • The cash portion of the purchase price to complete the acquisition of Henderson Organic Remedies . • The deferred cash compensation and other fees for the acquisition of Spring Oaks Greenhouses . • Ongoing capital expenditures and general corporate purposes. The raise was completed by underwriters led by Canaccord Genuity Corp. and included Eight Capital , Cormark Securities , GMP Securities , Paradigm Capital , Beacon Securities and Haywood Securities . U.S. DEVELOPMENTS