MJBizMag March 2021 - 18

CompanyNews | U.S., Canada & International
By Omar Sacirbey
Recent deals, acquisitions
and other announcements
from cannabis companies
or roughly 47% of all the company's common stock,
at a price of $17-$19 per share, according to a Feb. 2
prospectus. An over-allotment option would offer up to
833,333 additional shares.
West Palm Beach, Florida-based AFC Gamma was
Cresco Moves Into Florida With Acquisition
Marijuana multistate operator Cresco Labs of Chicago
entered an agreement to buy Bluma Wellness, a Toronto
company with holdings in Florida, for $213 million in
an all-stock transaction. Bluma, under its operating
subsidiary One Plant Florida, has seven dispensaries in
the state with eight additional locations planned.
One Plant ranks 11th in Florida for number of
dispensaries but is in the top five for per-store sales of
smokable flower, according to state data. Bluma also
has 54,000 square feet of cultivation space.
Cresco CEO Charlie Bachtell said the company was
impressed by Bluma's cultivation facility, delivery
operation and strong management team.
Bluma said its shareholders will receive 8.6% of a
subordinate voting share of Cresco Labs for each Bluma
share held. The company anticipates the transaction
being completed by the start of the second quarter,
pending shareholder, regulatory and other approvals.
Green Thumb Nets $100 Million
Cannabis multistate operator Green Thumb Industries
said it accepted an offer to sell $100 million of stock
to a single institutional investor as part of a previously
announced securities offering in the United States-a
first for the company. Chicago-based Green Thumb said
the proceeds from the sale of 3.1 million subordinate
voting shares at $32.03 per share will be used to
increase the company's financial flexibility.
Green Thumb filed the offer to sell the stock with the
U.S. Securities and Exchange Commission in August,
saying it wanted to raise about $150 million through the
sale of up to 10 million shares of stock.
Cannabis REIT IPO
Marijuana industry
real estate investment
trust Advanced
Flower Capital, also known as AFC Gamma, is planning
an initial public offering on the Nasdaq exchange. The
IPO is intended to raise $94.4 million-$105.6 million.
The offering would involve the sale of nearly
5.6 million shares of common stock in AFC Gamma,
18 Marijuana Business Magazine | March 2021
founded in July 2020 and offers loans to established
cannabis companies in states where marijuana is legal
for medical or recreational use. The company expects
to net approximately $91 million from the IPO, or as
much as $105 million if the over-allotment option is fully
exercised, based on an IPO price of $18 per share.
AFC Gamma raised $80 million for loans last August,
then loaned $22 million to Pennsylvania-based Organic
Remedies in November. The company's proposed
Nasdaq symbol is AFCG.
Planet 13 Raises $54 Million
Nevada marijuana company
Planet 13 Holdings raised
$53.9 million in a bought deal
public offering. The money will be used for " potential
acquisitions for purposes of retail, cultivation and
production expansion outside of Nevada, as well as
general corporate and other working capital purposes, "
the company said.
The offering by a syndicate of underwriters, led by
Beacon Securities and Canaccord Genuity, sold a total
of 9.9 million units of Planet 13 at a cost of $5.52 per
unit, including units sold under an over-allotment option.
Each unit includes one common share and a warrant to
purchase 0.5 common shares, which can be exercised
at $7.10 per share for the next two years.
The underwriters received a cash commission of
6% of the gross proceeds, plus a compensation option
equaling 6% of the units sold. The compensation option
entitles the underwriters to purchase common shares at
$5.52 per share for the next two years.
Arizona MSO Closes $35 Million Deal
Multistate marijuana operator Harvest Health &
Recreation of Arizona closed a sale-leaseback
transaction, selling a cultivation and processing facility
in Alachua, Florida, to Innovative Industrial Properties
(IIP) for $23.8 million. Harvest anticipates approximately
$34.6 million in total proceeds from the deal,
including $10.8 million in unspecified improvements
to be completed by Harvest and reimbursed by IIP, a
California-based real estate investment trust.
Harvest will continue operating the facility under a
triple-net lease. The company did not specify how it
intends to use proceeds from the sale.
U.S. DEVELOPMENTS
MJBizMag March 2021

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