MjLink Cannabis Business News and Press

In the third quarter of 2021, major U.S. cannabis multi-state operators (MSO) and several top Canadian licensed producers (LP) enjoyed healthy revenue and continued expansion. 

Cannabis Business Times and Cannabis Dispensary reviewed quarterly earnings statements and talked to industry executives to analyze how things went in the 2021’s penultimate quarter while preparing for another landmark year in 2022.

Growth Rates Settling In

While cannabis sales are still growing at a healthy clip overall, signs of a maturing market are starting to emerge: many U.S. companies saw a drop in revenue growth compared to earlier quarters. Illinois-based Green Thumb Industries (GTI) pulled in $233.7 million for the quarter, an increase of 5.3% on Q2 – quite a bit lower than its 14.1% increase from Q1 to Q2. Curaleaf, another major American MSO headquartered in Massachusetts, saw sequential growth drop 10x in Q3 compared to Q2. Cresco Labs, a top American cannabis wholesaler, reported 2.6% quarter-over-quarter growth compared to almost 18% in Q2.

In Canada’s smaller and more mature market the problem appeared to be worse. The Ontario giant Canopy Growth reported a 3.5% decline in net revenue compared to Q1 2022 (the Canadian equivalent to the U.S. Q2 2021). Aurora, another major Canadian cannabis player, experienced an 11% year-over-year decline in revenue for the quarter.

It’s true that some of these slowdowns are simply the result of seasonal shifts. It’s also possible that last year’s sales figures were inflated by widespread lockdowns due to the COVID-19 pandemic, a trend that has since eased.

The Coalition to Regulate Marijuana Like Alcohol has collected nearly enough signatures to advance its adult-use cannabis legalization proposal in Ohio, according to the Ohio Capital Journal.

RELATED: Group Launches Effort to ‘Regulate Marijuana Like Alcohol’ in Ohio

Thomas Haren, an Ohio-based attorney and a spokesperson for the Coalition to Regulate Marijuana Like Alcohol, told the news outlet that he expects the group to gather the 133,000 required signatures by the end of the month.

If the group succeeds, the Ohio Legislature would have four months to consider the coalition’s initiated statute, which would legalize the personal use, sale and possession of cannabis in the state.

The proposal would allow adults 21 and older to possess up to 2.5 ounces of cannabis or 15 grams of cannabis extract. Adults would also be permitted to purchase cannabis at dispensaries or grow up to two plants at home for personal use.

A South Dakota legislative board has adopted a report from a committee dispatched by the Legislature to study draft legislation on medical and adult-use cannabis in the state.

The committee drafted nearly two dozen bills that would change South Dakota’s medical cannabis program, according to The Globe, as well as an adult-use legalization bill that committee chairman Bryan Breitling told the news outlet would be a “fail-safe” if the state’s Supreme Court upholds a lower court injunction against South Dakota’s voter-approved Amendment A.

RELATED: Any Given Thursday: South Dakota Supreme Court’s Indecision on Adult-Use Cannabis

The Legislature’s 15-member executive board voted to accept the committee’s report, although the vote does not represent endorsement of any of the draft bills, The Globe reported. The legislation will likely surface during the state’s upcoming legislative session, according to the news outlet.

South Dakota’s cannabis study committee broke into two separate panels, one on adult-use and one on medical cannabis, and received testimony from legal and health experts, cannabis advocates, and local leaders, The Globe reported.

CLEVELAND, OH – NOVEMBER 22, 2021 – Cannabis Conference, the leading event for plant-touching businesses in North America that brings together thousands of industry professionals, is pleased to announce the promotion of Scott Anthony to Director of Sales.

Anthony has been instrumental in the rapid growth of Cannabis Conference, as well as its award-winning media brand Cannabis Business Times (CBT) since CBT’s acquisition and print launch in 2015. In this new role as Director of Sales, he will work to expand the sales team for Cannabis Conference—which provides exhibiting and marketing opportunities to solutions providers for cultivators, dispensary operators and extraction professionals within the legal cannabis and hemp industries. Anthony will also be overseeing the sales growth of Cannabis Business Times, Hemp Grower and Hemp Grower Conference.

“Based on Scott’s strong track record over the past six years navigating the rapidly evolving cannabis and hemp markets, he is the right person to lead the continued growth of the industry’s most important conference for licensed operators,” Cannabis Conference and Cannabis Business Times’ Group Publisher Jim Gilbride said.  

“It's been exciting to witness the exponential growth in these markets since we launched CBT,” Anthony said. “Cannabis Conference creates an invaluable opportunity by taking the foundation of CBT’s high-quality educational and marketing platform and translating it into a curated in-person experience. Each year, exhibitors are excited to get in front of thousands of targeted decision-makers that are looking for solutions to better their businesses. I'm looking forward to guiding our talented sales team to expand these marketing and event opportunities in 2022.”

According to Grandview Research, the global cannabis market will surpass $70 billion by 2028. In addition, the United States’ CBD market forecast is expected to experience 202% growth over the next five years, reaching $16 billion in 2026, according to Brightfield Group.

In alignment with the industry’s exponential growth, Cannabis Conference has grown from a small event in Oakland, Calif, to an established industry conference that brings 3,000+ cannabis professionals to Las Vegas. In 2022, 200+ exhibitors will span 85,000 square feet, offering products and solutions exclusively for cultivators, retail dispensaries and manufacturing professionals. These providers include (but are not limited to) software, plant inputs, equipment, consulting and legal services, and more. Cannabis Conference 2022 will also offer 40+ industry-leading educational sessions, guided by the expertise of 90+ presenters and panelists.

NEW YORK, Nov. 22, 2022 – PRESS RELEASE – LeafLink, a unified B2B platform for cannabis, announced the expansion of its logistics services, originally launched in Michigan in April 2020, to Massachusetts, California and Oregon. Since its launch, LeafLink has worked with trusted partners to build the largest logistics network in the cannabis industry, delivering over $325 million a year in wholesale cannabis orders.

With the expansion of its logistics services, LeafLink accelerates the growth of its full platform across North American legal cannabis markets. LeafLink is the platform that cannabis businesses trust to handle mission critical functions. More than 10,000 cannabis businesses use LeafLink to transact $4.6 billion+ in wholesale commerce and $430 million+ in payment volume a year. The company estimates that 42% of U.S. wholesale cannabis orders flow through its marketplace.

LeafLink's logistics offerings are unique to the markets they're in and are built specifically for the intricacies of the cannabis industry. In Michigan and Massachusetts LeafLink offers a transportation solution that enables cannabis brands to increase reliability, efficiency and transparency in their shipping practices. While in California, the company offers a retailer-focused solution for the warehousing and fulfillment of a retailer's inventory with a technology layer that allows buyers to restock from that inventory as needed—increasing profit margins by reducing stockouts, unlocking bulk discounts and streamlining inventory operations.

The Oregon offering combines the transportation model from Michigan and Massachusetts, with reliable, efficient and quick storage and delivery of products across the state. The overall value-add of LeafLink's logistics offering is that it allows brands and retailers to cut costs associated with transportation and fulfillment so they can invest in core competencies like product development, brand building and customer experience without ever missing a sale.

LeafLink has a robust selection process for partnering with locally licensed operators to bring the offering to life. The collaboration of these partners is instrumental in bringing value to cannabis brands and retailers through best-in-class service and operating procedures. Transporters also see value in working with LeafLink by tapping into the volume of orders brought through its wholesale marketplace, and through the ease of working with LeafLink's technology to create efficiency and automate compliance.

"Our logistics partnership with LeafLink has exceeded my expectations across the board," said Abbe Schnibbe, CEO of Plymouth Armor Group, LeafLink's partner in Massachusetts. "Through our work together, our company has been able to increase our operational efficiency, while simultaneously expanding our sales and marketing reach. From the start, it has been a true partnership in every sense of the word—every decision from the strategic level down to daily route optimization is made in lockstep across both our teams."

The New Jersey Cannabis Regulatory Commission (CRC) may reconsider a ban on the sale of edibles in the state’s adult-use market, according to New Jersey 101.5.

Regulators’ interim regulations for the state’s forthcoming adult-use cannabis market include a rule that prohibits dispensaries from selling cannabis-infused cookies, brownies, gummies or any products that resemble food.

RELATED: New Jersey's Adult-Use Cannabis Market Won't Include Some Infused Products

However, at its last meeting, the CRC invited input from invited guests and the public about how to handle these products, New Jersey 101.5 reported, and some provided feedback indicating that regulators should reconsider the ban.

“Any form of edibles should be permitted as long as the regulatory procedures are followed,” Ken Wolski, executive director of the Coalition for Medical Marijuana, told the commission, according to New Jersey 101.5. “There should be no arbitrary exclusions placed on cannabis products.”

LOS ANGELES, California, November 22, 2021 - PRESS RELEASE - MedMen Enterprises Inc. (MedMen), a cannabis retailer with operations across the United States, announced its board of directors has appointed Michael Serruya as chairman and interim CEO, effective immediately. Serruya succeeds outgoing Chairman and CEO Tom Lynch, who held the position since 2020 and oversaw the company's operational turnaround.

Serruya joined MedMen's board in August as part of a $100 million investment in the company by Serruya Private Equity to expand its operations in key markets and identify and accelerate further growth opportunities across the United States. This, together with Tilray, Inc.'s acquisition of the majority of the outstanding senior secured convertible notes of MedMen that were initially held by certain funds affiliated with Gotham Green Partners, LLC, provides MedMen with the flexibility to execute on its growth priorities and explore additional strategic opportunities.

Serruya is a seasoned cannabis investor with extensive retail expertise, having previously served as CEO of Coolbrands (then home to CPG brands including Weight Watchers, Eskimo Pie, Tropicana and Godiva Ice Cream) and Kahala Brands (home to global QSR brands including Cold Stone Creamery, Taco Time and Blimpie Subs).

"We want to thank Tom for his leadership over the past 20 months as he's led a successful and disciplined turnaround plan, which has left us well-positioned for accelerated growth as MedMen 2.0," Serruya said. "Our focus now is taking this company to the next level as we seek to leverage the strength of the MedMen brand and consumer experience in order to expand it across the United States, Canada and internationally."

"It has been an honor to lead MedMen through its transformation into MedMen 2.0, which is now in growth mode," Lynch said. "I am confident Michael and the board will identify the right CEO to execute against our aggressive growth plans and achieve company-wide profitability in 2022."

Lynch will continue to serve as the manager of MedMen Boston LLC and MME Newton Retail LLC. For the immediate future, he will continue to participate in the direction and control of those businesses.

The Ohio Board of Pharmacy received 1,463 applications for the state’s 73 new cannabis dispensary licenses ahead of a Nov. 18 application deadline, according to a Cincinnati.com report.

Regulators approved an increased number of medical cannabis retailers earlier this year, increasing the total number of dispensaries in the state from 57 to 130.

The Ohio Board of Pharmacy officially launched the application process for the new retail licenses Sept. 20. 

State officials split Ohio into 31 dispensary districts and charted where the state’s 56 operational cannabis retailers are located. The winning applications will be selected through a lottery with applications randomly ordered in each dispensary district, and only the selected applications will undergo a vetting process to ensure they meet the state’s criteria in an effort to expedite the licensing process.

The dispensary licenses will be allocated by county or a cluster of counties, Cincinnati.com reported, with nine awarded to businesses in Franklin County, eight in Hamilton County and two in Summit County.

EDMONTON, Alberta, Nov. 22, 2021 – Press Release – Aurora Cannabis Inc., a Canadian company focused on defining the future of cannabinoids worldwide, announced a renewed sponsorship of Cannabis Amnesty in support of its advocacy work, calling for blanket pardons to all individuals for the offence of simple possession of cannabis. The sponsorship will support Cannabis Amnesty's campaign to right these historical wrongs—especially the impact on racialized communities.

Over half a million Canadians still have criminal records for simply possessing cannabis; creating barriers to meaningful work, volunteering and travel.

"As a proudly Canadian company, Aurora values our roots in advocating for cannabis record pardons with Cannabis Amnesty," Aurora CEO Miguel Martin said. "We have a responsibility to those communities who have been disproportionately impacted. Canadians, or anyone for that matter, shouldn't be burdened with a criminal record for a minor, non-harmful act that is no longer a crime."

The $50,000 contribution from Aurora will enable Cannabis Amnesty to enhance its operations, facilitating the non-profit advocacy group’s ability to directly engage with and support communities harmed by cannabis prohibition. A portion of the funds will go toward the hiring of Cannabis Amnesty's first full-time staff member, in collaboration with TOQi Technologies Ltd., to lead the next phase of cannabis advocacy. This includes calling for pardons and cannabis record expungement with a focus on the disproportionate criminal records still held by racialized communities in Canada and working in the community to provide pardon resources directly to individuals.

"Aurora's Cannabis Amnesty sponsorship demonstrates leadership within the cannabis industry, taking a step forward to address the social inequities of cannabis prohibition," Cannabis Amnesty Founder Annamaria Enenajor said. "Cannabis Amnesty looks forward to working with Aurora to help influence policy for the better and continue the call for cannabis record expungement here in Canada.”

MIAMI, Florida, November 22, 2021 - PRESS RELEASE - Ayr Wellness Inc. (Ayr), a vertically-integrated cannabis multistate operator, has agreed to acquire Gentle Ventures, LLC (Dispensary 33) and certain of its affiliates that collectively own and operate two licensed retail dispensaries in Chicago, Ill.

"In any market where we operate, our goal is to develop scale and meaningful presence," said Jonathan Sandelman, Ayr founder, chairman and CEO. "Today's announcement builds on our existing foundation in Illinois, which we began building just a few months ago with the proposed acquisition of two stores in Quincy, Illinois. Since then, we have sought opportunities to deepen our presence, beginning with our social equity partner, Land of Lincoln, which was selected for a dispensary license in Bloomington, and today's proposed acquisition of Dispensary 33 in Chicago, which, when completed, will give us a presence in two of Chicago's most desirable neighborhoods. We will continue to seek opportunities to expand in Illinois."

Dispensary 33 operates two locations in Chicago, one on the lively N Clark Street in Andersonville, and the other on W Randolph Street in West Loop, a former industrial meatpacking district that has become one of Chicago's most popular neighborhoods for restaurants, nightlife and hospitality.

The Montana Department of Revenue (DOR) has eliminated a rule in the state’s cannabis regulations that would have prohibited licensed medical and adult-use cannabis operators from selling hemp and hemp-derived products.

As originally written, House Bill 701, which implements the state’s voter-approved adult-use cannabis program, included a provision that prohibited licensees in the medical and adult-use markets from selling hemp and hemp-derived products, including CBD products. The original law also barred licensees from selling other brands’ CBD products, meaning those products would likely have been sold at gas stations and other non-specialty retailers in the state.

RELATED: Montana’s Adult-Use Cannabis Law Prohibits Licensees from Growing and Selling Hemp

The state held a public hearing Nov. 16 on the first rules package of H.B. 701 and the public comment period on the regulations remains open until Nov. 29.

In addition, representatives from DOR’s Cannabis Control Division (CCD) met with the Economic Interim Affairs Committee Nov. 17 to seek clarity on the rules pertaining to hemp and CBD products.

Green Dragon, a multistate cannabis operator, opened its 16th dispensary location last week in Fort Collins, Colo., through purchasing the existing Choice Organic's license.

The Fort Collins-based dispensary will offer medical and adult-use products and include brands like Fuel, Le Remedie, Magnus, Sugar High and Tropix, Cannabis Dispensary previously reported.

Alex Levine, Green Dragon chief development officer, told Cannabis Business Times and Cannabis Dispensary that the company has wanted to expand to the northern Colorado area for a while, but an opportunity didn't present itself until now.

Below, Cannabis Business Times and Cannabis Dispensary spoke with Levine about the company's expansion and the process of doing so through acquiring an existing license versus winning one through the application process.

Andriana Ruscitto: Can you talk a little bit about Green Dragon's recent expansion and the opening of its 16th retail location in Fort Collins? What are some of the different features the dispensary will have?

Alex Levine: So, we're super excited to be in Fort Collins. It's a market that we've been looking at for quite some time, [and] we're very happy to be a part of it finally. Basically, this store is recreational, and it also has medical. We're being super competitive with our pricing. We're [also doing] a lot of exciting design changes [to that] location. So, it's going to be a pretty cool-looking dispensary soon. We're kind of in the planning stages of that, but we're very excited for what that store [will] look like.

San Diego, CA – November 16, 2021 – PRESS RELEASE – PHENOM is a new vertical grow lighting system with integrated sensor and imaging technologies building on the success of the innovative A3 and ZENITH luminaires. PHENOM integrates plant health sensors and a canopy imaging platform with the patented Agnetix liquid cooled hydronics system. Vertical farms can now increase density, height and energy efficiency by counteracting the environmental impacts caused by micro-climates and fixture waste heat pervasive in commercial grows featuring passively cooled lights.

PHENOM is designed for crops that require a Daily Light Integral (photosynthetic light measurement) for optimum growth ranging from 15-30 DLI, such as lettuce, cucumbers, tomatoes and strawberries, to much higher DLI crops such as cannabis, which requires over 40 DLI. PHENOM may also be used in combination with the Agnetix A3 or ZENITH luminaires from start through vegetative growth and flowering as a full facility cultivation platform operating at the lowest carbon footprint of any grower in the same class.

The industry benchmark efficiency of the Agnetix system can now deliver close-proximity 100% PAR light (photosynthetically active radiation) to multi-level grows with luminaire wattage of 375 and a PPE (photosynthetic photon efficacy) of up to 3.61µmol/J and precision dimming 100-1%. Agnetix patented hydronics cooling extracts up to 140 watts of waste heat from the room per fixture significantly reducing the amount of energy intensive HVAC required versus any other light source.

The Agnetix environmental, thermal-sensing and computer-vision platform allows the vertical farmer to interact via the user interface remotely from the safety and convenience of their computer or mobile device, continuously monitoring the conditions and plant performance at enterprise scale with speed and convenience.

Sensor and imaging technologies empower key stakeholders with direct visualization of plant size and quality:  

And just like that, a household Goliath is ready to muscle its way into the adult-use cannabis space.

Irwin Naturals Inc., a Los Angeles-based herbal supplement formulator that has operated a profitable brand since 1994, announced last month that the company intends to enter the U.S. and Canada adult-use markets through the wholly owned subsidiary name Irwin Naturals Cannabis.

Irwin Naturals’ growing portfolio of herbal products are available in more than 100,000 retail doors across North American, where nearly 100 million people know of the brand, according to a formal company survey with a sample size of 500 randomly selected adults.

“Consumers have trusted our high-quality nutraceutical products for over 27 years. We plan to move quickly in order to become the first national household brand to appear on the label of products containing THC,” Irwin Naturals Chairman and CEO Klee Irwin said in a press release.

In 2018, Irwin Naturals first leveraged its household name brand to expand into the cannabis space by launching hemp-based CBD products into the mass market. The publicly traded company currently offers more than 100 CBD products, ranging from soft gels to balms and oils, with varying formulas aimed to address mood and brain function, better sleep, sports performance and sexual health.

Irwin Naturals plans to enter the North American cannabis industry by licensing its brand name to third parties that manufacture products containing THC, according to the release. The company is planning the overall launch of Irwin Naturals Cannabis to the continental cannabis market in late 2021 or early 2022.

The Ohio Medical Marijuana Control Program (MMCP) has released an update on a product recall that was originally issued Oct. 13.

Regulators issued a mandatory product recall on products manufactured by Certified Cultivators, LLC, a licensed processor in the state. The products were distributed to dispensaries and then sold to patients without receiving the full suite of required testing, according to the MMCP’s recall notice.

The affected product, Certified Live Resin Southside Legend, was sold to patients starting Sept. 1 at the following dispensaries:

The MMCP advised patients who purchased the affected product to stop using it and to return it to the dispensary where it was purchased.

In a subsequent notice on Nov. 19, the MMCP indicated that the products have since been retested and have passed all testing for heavy metals, pesticides, residual solvents and mycotoxins. Therefore, regulators have determined that the products are safe for patients.

A pair of Pennsylvania senators has introduced legislation to allow medical cannabis patients to grow their own plants at home.

The Medical Marijuana Cultivation Bill, sponsored by Sen. Dan Laughlin (R-Erie) and Sen. Sharif Street (D-Philadelphia), would allow the state’s registered medical cannabis patients to grow a limited number of plants at home for personal use in an attempt to address patients’ cost and accessibility concerns, according to a WKBN report.

“Pennsylvania’s MMJ Advisory Board and the state Health Department have mounting data illustrating significant disparities in accessibility,” Laughlin said in a public statement. “Cost has likewise been a big burden for patients for quite some time.”

Patients must travel more than two hours to reach a dispensary in some cases, according to a press release announcing the bill. In addition, serious medical conditions, medical expenses, the lack of insurance coverage for medical cannabis and a reduced ability to work also make it difficult for some patients to afford medical cannabis sold at the state’s dispensaries.

“It is critical that policy meet people where they are, and by allowing medical marijuana patients to grow cannabis plants at home, we can help ease the cost and accessibility burdens for this important medicine,” Laughlin said in a public statement. “This legislation would go a long way towards helping everyday Pennsylvanians meet their health needs and ensuring everyone is treated equitably and fairly under Act 16.”

A recent change in governmental policy has the potential to transform both the international medical cannabis industry and a South American country well-poised to supply it.

In July, the government of Colombia enacted a new law that authorizes exports of dried cannabis flower as a finished commercial product for medical use, a move expected to further stimulate the country’s ability to supply the legal cannabis marketplace. Previously, the law had only allowed the export of extracts, but the new decree also enables the production of dried cannabis flower and related goods, such as oils, creams, textiles or food containing non-psychoactive cannabis.

Colombia legalized the production of medical cannabis in 2016, and has in recent years taken substantial steps to establish an infrastructure for producing, distributing and exporting cannabis seeds and derivatives. Now, the new directive that authorizes the most popular form of cannabis should take the country’s nascent medicinal cannabis industry to new heights.

As evidenced by its longstanding presence as the leading exporter of cut flowers to the U.S., Colombia has a highly developed agricultural ecosystem. With low-cost but highly skilled labor, Colombia should be a prime resource for any organization seeking to expand the production and sale of medicinal cannabis.

Plus, an average of 12 hours of sunlight year-round makes Colombia’s climate conducive to as many as four high-yield harvests annually.

Most recent business developments have been alliances of Colombian and foreign capital, with a prominent Canadian participation which accounts for about 60% of the cases. Examples include Avicanna, a Canadian biopharmaceutical company that focuses on the development and commercialization of cannabinoids exclusively for the medical cannabis, health, and wellness markets. The company sources its raw materials for food, cosmetic, medical, and pharmaceutical industries from its subsidiaries based in Santa Marta, Colombia. PharmaCielo, another Canadian company and the world’s largest licensed cannabis producer, selected Colombia as its base of operations because of its excellent climatic and economic conditions, including its industrial history in floriculture, as well as its clear legal framework for cannabis licensing. Another successful example is Khiron Life Sciences, which has its own plantations, a research center to produce medicines and cosmetics, and recently opened a clinic for medical cannabis treatments and therapies

OTTAWA, Canada, November 19, 2021 - PRESS RELEASE - HEXO Corp (HEXO) announced that Sebastien St-Louis has resigned from HEXO's board of directors, and the company has appointed HEXO president and CEO, Scott Cooper, in place of St-Louis, effective yesterday.

There’s a 60-vote rule in the U.S. Senate.

Simply put, if 60 of 100 members of the body are in favor of legislation, then no more debate is needed—any filibuster attempts are defeated, and the bill gets sent to the president’s desk for final consideration.

If the upper chamber of Congress was representative of majority opinion on cannabis, then there would be no more debate on public policy regarding the end of prohibition. Theoretically, 68 or 69 senators—depending on which poll is used—would be in favor of fully legalizing cannabis at the federal level.

In a November 2021 Gallup Poll, 68% of Americans said they support legalizing cannabis, while 69% expressed support in an April 2021 poll from Quinnipiac University.

Debate on Capitol Hill continues, nevertheless.

A political split on the issue is perhaps no more evident than in Ohio, where Democratic U.S. Sen. Sherrod Brown supports the federal decriminalization of cannabis, while Republican U.S. Sen. Rob Portman continues to have concerns about broadly legalizing the plant.

TORONTO, Nov. 18, 2021 /CNW/ - PRESS RELEASE - The Green Organic Dutchman Holdings Ltd., a producer of premium certified organically grown cannabis, has announced that further to its news release dated Nov. 1, 2021, it has completed the acquisition of all of the issued and outstanding shares of Galaxie Brands Corporation.

"This is an exciting day for both TGOD's and Galaxie's teams. As per our strategic plan, the completion of the transaction allows TGOD to accelerate domestic growth. With Galaxie's innovation and operating capabilities, scale and efficiencies, the combined entity will build stronger revenues and financial performance," said Sean Bovingdon, CEO and interim CFO of TGOD.

Following closing of the transaction, TGOD will diversify its brand portfolio with the addition of Galaxie's unique pre-rolls, vapes, solventless products and its  flagship brand, Cruuzy. TGOD will also benefit from improved regional distribution across Canada and gain further exposure to the valuable edible category through Galaxie's exclusive joint venture in Canada with a major edible brand in the United States. 

Galaxie's 26,000-square-foot Ontario production facility is fully licensed by Health Canada and operational with 2.0 production capabilities. The Galaxie facility is expected to provide TGOD with additional cultivation, value added processing, packaging, extraction and product development capabilities. Galaxie will become a wholly-owned subsidiary of TGOD and will remain the license holder for the Galaxie Facility. 

The transaction is expected to achieve cost synergies through combining activities in supply chain and distribution, research and product development, as well as cost reductions in sales, general and administrative activities, and general overhead. Galaxie's strategic U.S. connections and existing industry relationships are expected to accelerate TGOD's entry into the U.S. market, with the growing TGOD organic brand platform being positioned for future expansion across the border.

"I am proud of what we have built at Galaxie" said Angus Footman, Galaxie CEO and co-founder, and chairman of the company. "In a short period of time, we have successfully developed and launched over 45 innovative new SKUs across Canada. We admire TGOD's leadership in sustainability, organic and quality cannabis production and look forward to jointly developing new innovative products that reflect our shared commitments to serving our consumers and building a sustainable global cannabis company."