MJBizMag January 2023 - 16

COMPANY NEWS U.S., Canada & International
people may confuse for traditional
foods or beverages, which may
result in unintentional consumption
or overconsumption of CBD, " the
FDA said in a statement.
The FDA gave the companies time
to respond with their reasoning for
why the products are legal, or face
seizures and fines.
Acreage Borrows Up to
$50 Million More From
AFC Gamma, Viridescent
Cannabis industry real estate lenders
AFC Gamma and Viridescent
Realty Trust amended their 2021
loan agreement with multistate
operator Acreage Holdings, lending
up to $50 million more than the
original $100 million loan.
The amended loan includes
$25 million available to Acreage
immediately and another
$25 million available " upon
achieving certain predetermined
milestones " that were not specified
in AFC Gamma's news release.
The loan is secured against New
York-based Acreage's real estate
" and other commercial security
interests. "
It matures in January 2026,
although Acreage said in a release
that it can extend the maturity
INTERNATIONAL DEVELOPMENTS
Green Organic Dutchman
and BZAM to Merge
Mississauga,
Ontario-based
The Green
Organic
Dutchman Holdings and
Vancouver-headquartered
BZAM Cannabis entered into a
binding agreement to combine
their businesses, creating the
sixth-largest licensed producer in
Canada by sales, according to the
companies.
BZAM is privately owned by a sole
shareholder; Green Organic Dutchman
shares are traded as TGOD on
the Canadian Securities Exchange.
The BZAM shareholder would
own about 49.5% of the issued and
outstanding shares of the combined
company on closing, according to a
news release.
The merged company is expected
to create at least $7.4 million
(CA$10 million) in annual " cost
synergies " in " the key areas of cultivation
and production, cannabis
and product purchasing, sales, marketing
and corporate expenses. "
16 January 2023 | MJBizMagazine
Akanda Sends First Medical
Cannabis Shipment
to Germany
Global company
Akanda
announced the
arrival and sale
in Germany of its first shipment of
medical cannabis from Portugal.
Akanda, headquartered in
London, recently entered into
a supply deal with the German
cannabis distribution company
Cansativa Group to deliver at
least 1,000 kilograms of medical
marijuana flower, according to a
news release.
Canopy Seeks to Speed
Entry to U.S. Market
Rather than waiting for the U.S. to
legalize at the federal level, Canopy
Growth has launched Canopy USA,
which would purchase the three
American marijuana businesses
Canopy had agreed to buy after the
U.S. ended prohibition.
Those businesses are New
York-based multistate operator
Acreage Holdings, California
extractor Jetty Extracts and
Colorado-headquartered cannabis
manufacturer Wana Brands.
Canopy's proposal calls for Canopy
USA-not Canopy Growth-to own
the three assets, and the Canadian
business would hold nonvoting,
exchangeable shares in Canopy USA.
While the chief executive of
the Toronto Stock Exchange has
suggested that Canopy's proposed
structure to speed its entry into the
U.S. cannabis market is compatible
with the exchange's rules, the
New York-based Nasdaq stock
exchange objects to the plan,
according to a regulatory filing with
the U.S. Securities and Exchange
Commission.
Have a company announcement you
want us to consider? Send a news
release or general information to
magazine@mjbizdaily.com.
(Note: We're looking for news
about expansions, financing,
deals, partnerships and similar
developments, not product-related
announcements.)
date by one year for a fee.
While the original loan carried
a 9.75% annual interest rate, the
amended loan carries a rate of prime
(of at least 5.5%) plus 5.75% annually.
Acreage is also paying a
$1.25 million amendment fee to its
lenders, who are waiving all of the
company's financial debt covenant
requirements except a minimum cash
requirement until the end of 2023.
Acreage said the new loan
" includes approval for Canopy USA
to acquire control of Acreage
without requiring repayment of
all amounts outstanding under the
amended credit facility. "
https://mjbizdaily.com/afc-gamma-viridescent-lend-up-to-150m-to-marijuana-mso-acreage/
MJBizMag January 2023

Table of Contents for the Digital Edition of MJBizMag January 2023
