MjLink Cannabis Business News and Press
BILLERICA, Massachusetts, June 27, 2022 - PRESS RELEASES - Agrify Corporation, a provider of advanced cultivation and extraction solutions for the cannabis industry, announced it has signed a definitive agreement to supply Ora Pharm, a Waikato, New Zealand-based health and wellness company developing sustainably-produced medicinal cannabis, with a full suite of end-to-end hardware and software products to be utilized at a 5,000-square-foot facility in Auckland, New Zealand.
Under the terms of the agreement, which has a base value of $1.62 million, Ora Pharm, a licensed cultivator and distributor of medicinal cannabis, has committed to purchase 20 Vertical Farming Units (VFUs) that will be used to grow cannabis, as well as several cutting-edge extraction technologies including a C1D1 Extraction Pod, a C-15 Centrifuge Extraction System, and the CannaBeast 13 Thin Film Distillation System. In addition, Agrify will provide access to the fully integrated Agrify Insights seed to sale automation software for five years in exchange for monthly recurring SaaS fees. All of these cultivation and extraction solutions will form a robust ecosystem to give Ora Pharm complete and precise control over the full life cycle of its botanicals from new plants to finished products and should enable Ora Pharm to achieve new operational efficiencies and better overall results.
Located in the Asia-Pacific region, Ora Pharm is well-positioned to easily serve a variety of attractive markets with high-quality cannabis products. The company currently has an Australian market presence and contracts to strategically expand into the United States, Europe, Asia, and its home country of New Zealand. Additionally, Ora Pharm has recently received a coveted grant from Callaghan Innovation to research cannabis cultivation inputs in New Zealand. By employing Agrify’s solutions, Ora Pharm will gain new operational insight and data visibility to verify active ingredient levels. The partnership with Agrify also supports the continuation of Ora Pharm’s broader mission to consistently deliver high-quality cannabis and manufactured finished products of major and minor cannabinoids.
“Quality and consistency are frequently cited as top priorities for the world’s leading cannabis operators, and it is absolutely imperative for companies like Ora Pharm that are dedicated to patient care and supplying the market with medicinal cannabis and CBD products to do everything possible to foster pleasant user experiences and repeatable results,” said Raymond Chang, CEO of Agrify. “Furthermore, for our international customers that must contend with higher Good Manufacturing Practice standards, it is especially critical for them to leverage cultivation and extraction solutions that offer precise control and data collection. At Agrify, one of our core goals is to provide our customers with the tools needed to maximize quality, consistency, and yields, all at the lowest cost of production, and we believe that our cultivation and extraction solutions will be instrumental in helping Ora Pharm become a leader in the cannabis sector for many years to come. Within the last few months, we have successfully entered two new international markets, first Portugal and now New Zealand, and as cannabis liberalization and legalization movements continue to gain momentum globally, we intend to achieve even more strategic growth abroad in the future.”
“From the inception of Ora Pharm, I have placed a relentless focus on leveraging the most efficient and technologically advanced solutions to empower us to deliver premium industry products to our patients and global customers,” said Zoe Reece, founder and CEO of Ora Pharm. “We look forward to further enhancing our capabilities in a major way with the addition of these Agrify technologies. The Agrify VFUs and clean extraction technologies will help Ora Pharm’s research and development program in the minor cannabinoids, ensuring that we are able to produce the best quality and value medicinal cannabis.”
]]>WAKEFIELD, Mass., June 27, 2022 – PRESS RELEASE – B Noble Inc. and Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, announced the expansion of its B NOBLE product partnership in New Jersey. The brand's signature 2-pack prerolls are now available at Curaleaf's locations in Bellmawr and Edgewater Park, as well as medical and adult-use dispensaries across the state.
Founded in collaboration with Fab 5 Freddy, legendary hip-hop pioneer, filmmaker, visual artist and cannabis advocate, and Bernard Noble, B NOBLE is a for-profit, cause-based cannabis brand. As part of Curaleaf's corporate social responsibility program, Rooted In Good, B NOBLE launched in July 2021 and is the company's first large-scale brand venture in alignment with its dedicated social equity work.
The brand is dedicated to telling the story of its namesake, Bernard Noble, who was arrested in Louisiana and sentenced to 13 years in prison for possessing the equivalent of two joints. In 2017, Nobel's case began to draw attention across the country, and he quickly became a national symbol for the need to reform the country's unjust drug laws, sparking advocacy and a movement to free him. As a result, Noble was released seven years into his sentence and his story was featured prominently in Fab 5 Freddy's 2018 documentary, Grass Is Greener.
B NOBLE brings a high-quality, Black-owned cannabis brand to New Jersey's regulated adult-use cannabis market. The New Jersey adult-use cannabis market has already generated $24 million in its first month of sales and is projected to exceed $528 million by the end of 2022. Curaleaf began adult-use sales at its Bellmawr location in April, and at its Edgewater dispensary on May 24.
At launch, three strains of 2-pack B NOBLE prerolls including Azazel (sativa), Bittersweet (hybrid) and Apple Sundae (indica) will be available at Curaleaf's Bellmawr and Edgewater Park locations, in addition to wholesale accounts across the state. Ten percent of proceeds from each B NOBLE sale will go toward From the Block to the Boardroom, a New Jersey organization that provides resources and educational opportunities for those impacted by the penal system.
"We're thrilled to expand the B NOBLE partnership into New Jersey, especially on the heels of the state's adult-use launch in April which has proven to be tremendously successful," Curaleaf CEO Matt Darin said. "New Jersey's cannabis industry continues to grow at a rapid pace, making way for B NOBLE to continue its national impact, both in generating awareness of the collateral consequences of the war on drugs, and with monetary proceeds that will directly help individuals and communities impacted by systemic inequality."
Bethesda, MD, June 27, 2022 -- PRESS RELEASE -- CULTA, a Maryland cannabis brand, today announced a partnership with Robhots Edibles, a popular manufacturer of gummy edibles for recreational and medicinal cannabis markets. Established in 2014 in Colorado Springs, Colo., Robhots Edibles was the top selling medical gummy by units in 2019 and 2020. They were also the first company in Colorado to infuse gummies with cannabis distillate. Together they will bring four new SKUs to Maryland starting in June 2022.
The partnership allows CULTA to bring more high-quality cannabis products to the Maryland medical market. CULTA has built out a full edibles kitchen at its Cambridge facility, which means CULTA has the dedicated space and expert staff to manufacture this new gummy category in the fast growing edibles segment.
The edibles launch is led by Michelle Sprawls, CULTA’s director of science. “CULTA has had plans to enter the edibles category for years,” said Sprawls. “Robhots will make an excellent addition to the Maryland edibles market with their consistent formulations, robust offerings and quality ingredients.”
CULTA will produce four new variety packs infused with the highest quality THC oil for clean effects. Each low-sugar, gluten-free gummy is 10mg of active THC with 100mg total in each bottle. The new flavors include Reds (strawberry kiwi, tropical punch and watermelon), Berries (cherry, grape and strawberry) and Exotics (guava, pomegranate and mango-melon). Robhots PLUS Night Time (blackberry, blueberry and plum) gummies have cannabinol (CBN) and melatonin, which, combined with THC, have proven relaxing properties. The Robhots Exotics variety pack will be released first and be available for purchase at the end of June.
“This announcement reflects the intense focus on product quality by our employees and I’m humbled to see the Robhots brand make its debut on the East Coast with CULTA, one of the largest cannabis companies east of the Mississippi,” said Zach Romey, Robhots founder and owner.
In February, New Jersey cannabis regulators delayed rolling out adult-use cannabis sales on the premise that existing medical retailers did not have the capacity to serve both customer types at that time.
Two months later, when the state’s Cannabis Regulatory Commission (CRC) approved seven of New Jersey’s 11 medical cannabis operators to expand their operations to serve the broader adult-use market during an April 11 public meeting, state officials expressed confidence in those companies to continue prioritizing the needs of medical patients. At the time, there were 120,000-plus registered patients with 17 qualifying conditions, according to CRC.
And when those seven companies officially opened their doors to adult customers at 12 of the state’s 24 retail locations on April 21—making New Jersey the 14th state to launch commercial adult-use sales—it was a day of celebration in the Garden State. It also was a day that some of the largest cannabis operators in the U.S. vowed that patient care under New Jersey’s medical program would remain a top priority.
RELATED: New Jersey Adult-Use Cannabis Sales Have Commenced
What about the long lines associated with an adult-use program launch?
Two patient-only hours per day was the answer (often, the first hour and last hour of operation are reserved for medical patients at a dispensary).
At Texas A&M University,researchers are working on a plan to “3D print new resilient buildings usinghempcrete,” according to the Texas A&M Today.
The U.S. Department of Energy AdvancedResearch Projects Agency-Energy (ARPA-E) Harnessing Emissions into StructuresTaking Inputs from the Atmosphere (HESTIA) program, gave $3.74 million to fund the project, which has thepotential to increase the availability of affordable housing and “lower theenvironmental impact of traditional construction methods,” the news outletreported.
Hempcrete (hemplime) is madefrom a “mixture of hemp hurd with a lime-based binder that creates a‘monolithic wall system,’… to be used as a material for construction andinsulation,” Cannabis Business Times previously reported.
RELATED: How Sustainabilityis Driving the Hemp Building Industry in Europe and the U.S.
Hempcrete is also asustainable building material, as the plant has carbon-sequestering properties.
“While production ofconventional construction materials such as concrete requires large amounts ofenergy and releases large amounts of CO2, hempcreteis a net carbon-negative material, which can provide major environmentalbenefits,” said Petros Sideris, assistant professor in the ZachryDepartment of Civil and Environmental Engineering, who is leading the projectas the “principal investigator to develop residential and potential commercialconstruction designs.”
The U.S. Food and Drug Administration (FDA) has issued marketing denial orders (MDOs) to JUUL Labs Inc., effectively banning the company’s products from the U.S. market.
“As a result, the company must stop selling and distributing these products,” FDA officials said in a press release issued June 23. “In addition, those currently on the U.S. market must be removed, or risk enforcement action.”
While the MDOs prohibit the commercial distribution, importation and retail sales of JUUL’s products, they do not restrict consumers’ possession or use of the products.
The FDA came to its decision after reviewing JUUL’s premarket tobacco product applications (PMTAs), the agency said in its release, which stated that officials “determined that the applications lacked sufficient evidence regarding the toxicological profile of the products to demonstrate that marketing of the products would be appropriate for the protection of the public health.”
“Today’s action is further progress on the FDA’s commitment to ensuring that all e-cigarette and electronic nicotine delivery system products currently being marketed to consumers meet our public health standards,” FDA Commissioner Robert Califf said in a public statement. “The agency has dedicated significant resources to review products from the companies that account for most of the U.S. market. We recognize these make up a significant part of the available products and many have played a disproportionate role in the rise in youth vaping.”
A medical cannabis legalization bill that gained traction in the North Carolina Senate this year is likely dead for the year after House Republicans voted against advancing it in that chamber.
In a closed-door meeting June 22, lawmakers internally voted to kill the bill, according to an Axios report.
Sen. Bill Rabon, R-Brunswick County, initially introduced Senate Bill 711, the Compassionate Care Act, in April 2021. The proposal would allow North Carolina to license 10 businesses to grow and process medical cannabis, as well as 80 dispensaries to sell it to qualifying patients with a short list of medical conditions, including cancer, amyotrophic lateral sclerosis (ALS) and post-traumatic stress disorder (PTSD).
S.B. 711 cleared several Senate committees last year before lawmakers ultimately postponed a full floor vote until 2022.
RELATED: North Carolina Medical Cannabis Legalization Bill Expected to Resurface Next Year
Will federal law ever catch up to state policy reform that has allowed the cannabis industry to flourish in state-legal medical and adult-use programs across the country?
Law firm Cozen O’Connor hosted a June 16 webinar, “The Clash Between State & Federal Law in the Cannabis Industry - Where We are, Where We are Going, and What Lies Ahead” to offer some answers to this question.
Jeremy Garvey, co-chair of Cozen O’Connor’s Capital Markets & Securities team, moderated a panel with Joseph Bedwick, chair of the firm’s Cannabis Industry team, and Patrick Martin, managing director of the firm’s public strategies team, who both stressed that the disconnect between federal prohibition and state-legal programs has led to incongruities and difficulties that are not seen in any other industry.
While they said that federal lawmakers tend to follow public opinion at a slow pace, Bedwick and Martin noted that policymakers also typically shy away from overly complicated issues.
What does that mean for the future of federal cannabis policy reform?
PHOENIX, Arizona, June 24, 2022 - PRESS RELEASE - Item 9 Labs Corp., a vertically integrated cannabis dispensary franchisor and operator., announced that its new 20,000-square-foot, state-of-the-art cultivation and lab facility in Pahrump, Nev., is nearing completion and expected to be fully operational by end of 2022.
The master development and expansion of the Nevada Facility began in early 2019 and has been advancing quickly, especially the past year. Currently, Item 9 Labs Corp. is awaiting the water and electrical connections to be completed, as well as the installation of air conditioning units and backup generators. The company is working with the City of Pahrump and Nye County to finalize the Certificate of Occupancy.
"Our Nevada cultivation and lab facility was strategically developed to ensure full optimization and efficiency throughout," said Chase Herschmann, director of business development at Item 9 Labs Corp., adding that the company's experienced team has spearheaded the build and expansion of multiple cultivation sites across the North America, along with its current master site expansion that is underway in Coolidge, Ariz.
He continued, "Our construction team works hand-in-hand with operations to ensure our facilities are developed with our strategic processes for every function, from cultivation to extraction and production top of mind."
Once the cultivation and lab facility is finalized this coming fall, it will include: 4,450 square feet of operations space for flower, 990 square feet of vegetation space, 400 square feet for clones, 300 square feet for dry curing and 615 square feet for genetics. The facility also houses more than 2,500 square feet of post-processing and lab space, along with the opportunity for a joint venture with a commercial kitchen space of 1,100 square feet. The remainder of the building is ancillary rooms such as water rooms, offices, locker rooms and break rooms.
"Nevada is a rapidly growing adult-use cannabis market that shows no sign of slowing down," said CEO of Item 9 Labs Corp. Andrew Bowden. "We are optimistic about the potential opportunities we have to expand alongside the booming cannabis industry in Nevada."
DENVER (June 23, 2022) – PRESS RELEASE – Native Roots has officially launched its Gold, Onyx and Green cannabis labels, comprising 25 strains and now available at the leading independent dispensary chain’s 20 locations across Colorado. Each strain is hand-picked and thoughtfully cultivated using strain-specific growing methods to maximize potency, flavor and quality. All strains undergo Native Roots’ proprietary curing process that eliminates rapid terpene evaporation and discoloration, maximizing cannabinoid content.
Gold and Onyx label strains are hung dry and hand-trimmed to preserve trichomes where high concentrations of psychoactive compounds reside, maintaining the natural beauty and potency of the flower. After the curing process, Gold and Onyx strains are hand packed to preserve trichomes.
The Gold Label strains are packaged in glass drams that block UV rays and are non-porous, smell-proof and airtight, preserving the bud. All Gold Label strains are grown from seed and offer a minimum of 24% THC potency. Hand-selected by the cultivation staff, all phenotypes are exclusive to Native Roots.
“Our cultivation team is constantly researching, growing and testing new potential strains. The result is the debut of these new flower options that incorporate a thoughtful revamp to the post-harvest process,” said Jason MacDonald, director of cultivation operations at Native Roots Cannabis Co. “All strains grown at Native Roots facilities are grown with the same high standards, and each is tested extensively before becoming eligible for the Gold or Onyx labels.”
Accompanying the launch, budtenders will lead customers through a flower selection using the Mood State Matrix, a guide created from scientific engineer-led research at Native Roots. Rather than simply classifying a strain as Sativa, Indica or Hybrid, customers can pick a product based on effects such as sleep, relax, focus, energize and uplift. The Mood State Matrix was designed after a comprehensive digital analysis on cannabis effects descriptions, extensive group testing on each strain, and mathematical modeling around results to ensure consistency and accuracy with the final five descriptors. The Mood State Matrix is a suggested guide and effects cannot be guaranteed.
Thailand is fine-tuning the regulations for its cannabis industry after legalizing cannabis cultivation, sales and possession earlier this month.
The Lower House Scrutiny Committee on the cannabis and hemp legislation has opted to limit home cannabis cultivation to 10 plants, according to a Thai PBS World report.
The committee has also moved to limit the size of the land on which cannabis can be commercially cultivated, the news outlet reported. The bill would mandate that small growers cannot exceed 0.8 hectares for cannabis cultivation, medium-sized growers cannot exceed 3.2 hectares and large-scale growers cannot exceed 3.2 hectares, although there would be no limits on plant count.
The legislation, initiated by Bhumjaithai, the second largest government party, passed its first reading June 8, according to Thai PBS World. The bill will now be debated and voted on in the Lower House in its second and third readings, the news outlet reported.
Since the Public Health Ministry announced that cannabis and hemp would be removed from the Category 5 narcotics list, effective June 9, nearly 900,000 people have registered to grow cannabis, according to Thai PBS World, although there were initially no restrictions on home cultivation.
Barely three weeks following peak optimism, a group of medical cannabis legalization advocates in Nebraska now have dashed hopes of hitting their signature benchmark ahead of a July 7 deadline to appear on the state’s November ballot.
Proponents of Nebraskans for Medical Marijuana (NMM), a grassroots initiative effort, announced June 22 that they’re about 50,000 signatures short of putting a pair of complementary legalization measures before voters this year. The group has 60,000 of the roughly 87,000 valid John Hancocks it needs for each measure but is hoping to gather north of 110,000 signatures for each measure to provide a cushion for those that are not validated.
State Sen. Anna Wishart, D-Lincoln, a co-sponsor of the petitions, announced earlier this month that the ballot campaign was on track after NMM had raised $50,000 and doubled its signature count to approximately 40,000 for each measure in a two-week period. The group had qualified 15 of Nebraska’s 93 counties at that time.
RELATED: Nebraskans for Medical Marijuana Picks Up Signature Steam For Ballot Initiative
This week, Wishart wasn’t so confident.
“The reality is we need 50,000 Nebraskans to sign the petition in the next two weeks,” she said, NBA-affiliate WOWT reported. “Now it’s on Nebraskans. The volunteers and patients have carried the water this far. It’s on Nebraskans to go out and find a place to sign it.”
New Mexico Cannabis Control Division (CCD) Director Kristen Thomson, who became the division’s first director in November 2021, resigned June 16, according to NM Political Report.
“Yesterday, June 16, 2022, Kristen Thomson submitted her resignation from the position of Director of the Cannabis Control Division of the Regulation and Licensing Department (RLD),” Bernice Geiger, an RLD spokesperson, told the news outlet. “Her resignation was effective at that time. We thank Kristen for her service to the Cannabis Control Division and the State of New Mexico and wish her success in her future endeavors.”
Geiger did not say why Thomson resigned, but revealed that Thomson did not plan to work at the CCD for the remainder of her career, according to NM Political Report.
“I am a creator, not a regulator,” Thomson told the news outlet. “That just was never going to be the role for me.”
She added that she is “honored” to have worked with the CCD.
The Hemp Feed Coalition (HFC) and National Hemp Association (NHA) announced they have partnered to accelerate a shared goal: to obtain approvals for hemp as an animal feed ingredient.
"The hemp industry is at a critical point where we need regulators and policymakers to recognize the existing, well-documented science surrounding the safety and efficacy around hemp ingredients for feed," HFC Executive Director Morgan Tweet said in a press release. "We need them to work collectively and proactively with the industry to open the U.S. feed markets, many of which are open in other places in the world. We believe a strategic partnership between NHA and HFC will provide the leadership needed to have constructive and informative discussions with these parties as well as continue the effort of supporting research and applications."
Since 2017, HFC has been actively working to advance hemp as an animal feed ingredient; however, it's been a challenge, as the process of including any new ingredient in animal feed requires "an abundance of data and approval from the U.S. Food and Drug Administration's Center for Veterinary Medicine (FDA-CVM)," Cannabis Business Times previously reported.
HFC submitted an application in February 2021 to the FDA to gain approval for hemp seed cake and meal to be used as commercial feed for laying hens. The submission included research and data from a two-year study "consisting of an ingredient investigation of hemp seed cake and meal and a clinical trial to demonstrate the safety and efficacy of hemp for laying hens," according to a press release.
In addition, NHA and HFC organizers have also worked together on projects centered around advocating for hemp as an animal feed product, according to the release.
The partnership will allow each organization to come together and share its resources and knowledge, creating a "team that is greater than the sum of its parts.” The HFC brings its knowledge of animal research and animal feed ingredient applications, while NHA provides "administrative support, advocacy, and outreach,” the release states.
Even with ongoing momentum from six passages in the U.S. House, the Secure and Fair Enforcement (SAFE) Banking Act was dealt another defeat June 23.
The act, which many advocates hope will provide clarity and safe harbor to financial institutions servicing state-legal cannabis industries, was removed Thursday from the America COMPETES/USICA Act—extensive legislation that involves a historic investment to surge production of American-made goods and tackle supply-chain vulnerabilities to increase global competitiveness, among other priorities.
Passing SAFE Banking would improve safety and opportunities for hundreds of thousands of people and foster economic development in a majority of states, reform group NORML’s Political Director Morgan Fox said in a news release Thursday.
“It is mind-boggling that this is now the sixth time that SAFE Banking has been approved by the House but stalled by the Senate,” Fox said. “This narrowly tailored, incremental, and necessary legislation has broad bipartisan support in both chambers, and it is incredibly disappointing that politics continue to get in the way of saving lives and helping struggling small businesses disrupt and ultimately replace the underground cannabis market. If there is a legislative version of the Twilight Zone, the SAFE Banking Act seems to be stuck in it at this point.”
SAFE Banking passed the U.S. House five times between 2019 and 2021, including twice as a standalone bill, but stalled before making headway in the Senate each time. That’s despite the bill’s author, Rep. Ed Perlmutter, receiving broad bipartisan support in his chamber each time, including a 321-101 roll call vote in April 2021.
Most recently, House members approved SAFE Banking a sixth time via an en bloc amendment package to the American COMPETES (Creating Opportunities to Meaningfully Promote Excellence in Technology) Act, which the lower chamber passed in its entirety on a 222-210 vote Feb. 4.
Green Dragon, a multistate cannabis operator, has opened two new locations in Tampa and Boynton Beach East, bringing its retail presence to five dispensaries in Florida and 21 nationwide.
Green Dragon Chief Development Officer Alex Levine said in an email that population demographics drew the company to open locations in Tampa (12807 W. Hillsborough Ave.) and Boynton Beach East (2201 S. Federal Hwy).
“Tampa is the third-largest city in Florida. ... Boynton Beach, a popular South Florida city, has seen a major influx of residents over the past few years,” Levine said. “We carefully select the locations in which we want to open dispensaries based on demographic research.”
According to Levine, the company now has locations online in Boynton Beach East and West, Tampa, West Palm Beach and Lake Worth, and has plans to open four additional locations in Merritt Island, Titusville, Ocala and Stuart by the end of July.
Green Dragon is also building out a 400,000-square-foot manufacturing, cultivation and distribution facility in Palatka, Fla., which is expected to come online this fall, Levine said.
Major League Baseball (MLB) and teams within the organization can now sell CBD sponsorships, according to the Sports Business Journal (SBJ).
In a June 21 conference call, according to SBJ, MLB officials notified team marketers that CBD is now considered an “‘approved category’” under certain conditions involving certification by NSF, an auditing, testing and certification organization.
According to the Associated Press, sponsors need to be certified by NSF to not have psychoactive levels of THC.
Neither news organization noted whether the THC limit would be based on the federal hemp THC limit of 0.3% or whether sponsors could additionally be involved in state-legal adult-use or medical cannabis operations under the same brand name or vertically integrated cmpany.
RELATED: Former NFL Stars Living Dream as Adult-Use Dispensary and Cultivation Business Owners
“We've been watching this category for a while and waiting for it to mature to the point where we can get comfortable with it," said MLB CRO Noah Garden, according to SBJ. "We told the clubs if you want to do a deal in the CBD category, it will require two things: One is NSF certification—and none of them are there yet, although around three to five (brands) are in process. The other is to get approval from the commissioner’s office. ... Our fans are very much the kind of customers they are looking for, and we like being first. It's a good opportunity for us and the clubs. The last few companies that came to see us about this, the process of NSF certification was embraced. That gave us a comfort level to be able to move forward.”
]]>CALGARY, AB, June 20, 2022 /PRNewswire/ - PRESS RELEASE - Sundial Growers Inc. has announced that, in the context of the initial order pursuant to the Companies' Creditors Arrangement Act (Canada) (CCAA) pertaining to the Zenabis Group (as defined below) rendered on June 17, 2022, it entered into a purchase agreement, in the form of a "stalking horse bid" (the "Bid Agreement"), pursuant to which the shares of Zenabis Global Inc. and the business and assets of its direct and indirectly wholly-owned subsidiaries (collectively, the "Zenabis Group") would be acquired by Sundial. The Bid Agreement is subject to the approval by the Québec Superior Court supervising the CCAA Proceedings, and to potential alternative bids pursuant to bidding procedures that will follow. All amounts are denominated in Canadian dollars unless otherwise noted. Subject to the Court's approval of the Bid Agreement and of bidding procedures that will be sought on July 5, 2022, the Bid Agreement will set the floor, or minimum acceptable bid, in a sale and investment solicitation process, which is designed to achieve the highest and best offer for the Zenabis Group's business and assets and is under the supervision of Ernst & Young, acting as CCAA Monitor.
The assets covered by the Bid Agreement include the 380,000-square-foot indoor growing facility located in Atholville, New Brunswick with an annual production capacity of approximately 46,000 kgs of dried cannabis and 15,000 kgs of extraction capacity. The facility received EU GMP certification, providing a license to the facility to export internationally to Israel, Malta, the United Kingdom, and the EU. Zenabis Group also has a joint venture agreement with ZenPharm Limited, based in Malta, allowing for commercial bulk imports into Malta from the facility in Atholville and subsequent exports of finished medicinal cannabis products to countries of the EU and United Kingdom. The Bid Agreement also provides for the acquisition of a decommissioned 255,000-square-foot indoor facility in Stellarton, Nova Scotia, that was used as a packaging, processing, and value-added cannabis product manufacturing facility.
Based on HEXO Corp.'s ("HEXO") publicly filed financial statements and MD&A, contribution from the Zenabis Group to consolidated net revenue was $11.1 million in the second fiscal quarter of 2022. HEXO's international net revenues increased by 36% to $8.2 million in the second fiscal quarter of 2022 and by 312% relative to the prior year. Zenabis Group's international net revenues consisted of 54% of HEXO's overall international net revenues, increasing by 91% in the second fiscal quarter of 2022 when compared to the prior quarter.
More than 100 employees currently work at the Atholville facility, and Sundial's assessment is that the total capital invested in both the Atholville and Stellarton facilities to date is approximately $108 million. The Atholville facility utilizes state-of-the-art technology, including a fully computerized monitoring system, the latest HPS and LED lighting technology and seed-to-sale tracking systems, and grows several different strains with an extensive library of strains currently under trial which would further enhance Sundial's existing and expanding portfolio.
History of the Investment
PHOENIX Ariz. (June 16, 2022) --- PRESS RELEASE --- Established Arizona cannabis entrepreneur Shansan “Chance” Chambers has announced the launch of the new 501(c)3 nonprofit, the Arizona Black Cannabis Trade Association (ABCTA). The nonprofit provides cannabis education, empowerment and equity in an effort to support a community previously targeted by the War on Drugs.
The nonprofit’s educational resources encompass an eight-course program beginning with Cannabis History 101 and concluding with How to Invest in the Cannabis Industry. The comprehensive business modules teach attendees about the industry, the cannabis plant, and how to start a plant-touching operation or ancillary business.
The Arizona Department of Health Services (ADHS) recently announced the winners of the coveted 26 social equity licenses. With predatory practices reported and ongoing criticism of the social equity program rules, Chambers designed the ABCTA to help social equity applicants and winners receive the best cannabis consulting, guidance and resources.
Chambers was inspired to join the industry after alternative medicine helped his grandmother during her cancer chemotherapy treatments. Chambers now has over seven years of experience in the cannabis industry and owns two companies aside from ABCTA, 420 Ultimate Tours is one of the first Arizona cannabis tourism experiences, and Mwisho Blunts is a tobacco free blunt line providing the community a healthier alternative to chemical filled blunt wraps.
“It all starts with one person who wants to make a difference,'' said Chambers, “I have made the conscious effort in any business venture I dive into, to always make sure I am positively impacting the community and do all I can to assist people in need."
PORTLAND, Ore. (June 20, 2022) — PRESS RELEASE — Resource Innovation Institute (RII) has hired Elyse Greenberg, who has a long track record as a communications expert in the controlled environment agriculture (CEA) sector, as its new Marketing and Membership Director.
In this position, Greenberg will lead RII’s efforts to encourage CEA stakeholders to collaboratively advance resource efficiency via RII’s publicly funded tools and resources, including PowerScore and CEA Best Practices Guides. She will be the point person for RII’s communications and media relations, as well as the chief liaison between RII and its members.
“Elyse brings years of experience communicating with growers about the benefits of efficiency,” said Derek Smith, executive director. “She knows how to scale marketing efforts to drive rapid adoption of efficiency practices, and we are thrilled to leverage her expertise.”
Greenberg spent five years rising through the ranks at Fluence, a leading manufacturer of LED horticulture lighting solutions for commercial food and cannabis production, to become that company’s Director of Marketing Communications. Fluence is one of RII’s Sustaining Partners.
“Resource Innovation Institute and their partners are leading the way the industry defines sustainability and efficiency in controlled environment agriculture,” says Greenberg. “I am honored to join a team who is dedicated and focused on the farmers and their businesses as we work towards creating change conscientious of both the environment and commercial farming. I am eager to work closely with the members of RII, they are true innovators, working collectively to progress the industry forward in a more sustainable way.”
