MJBizMag May-June 2021 - 18

CompanyNews | U.S., Canada & International
By Omar Sacirbey
Recent deals, acquisitions
and other announcements
from cannabis companies
The underwriters have a 30-day option to purchase
937,500 more shares at the IPO price.
Marijuana Giants to Merge in All-Stock Deal
Two of the marijuana industry's biggest ancillary
companies, Greenlane Holdings and KushCo Holdings,
entered into an all-stock merger agreement.
Under terms of the deal, Garden Grove, Californiabased
KushCo will become a wholly owned subsidiary
of Boca Raton, Florida-headquartered Greenlane. The
transaction is expected to close in the late second
quarter or early third quarter of 2021.
KushCo stockholders will receive approximately 0.25
shares of Greenlane Class A common stock for each
share of KushCo common stock. That arrangement is
expected to result in Greenlane stockholders owning
roughly 50.1% of the combined company's common stock
and KushCo stockholders owning approximately 49.9%.
Parallel Moves Into Illinois With $100M Acquisition
Atlanta-based Parallel, one of the
largest privately held U.S. marijuana
operators, entered into a definitive
agreement to acquire six stores
belonging to an Illinois retail chain for $100 million.
The acquisition of Windy City Cannabis, expected to
close in the second half of this year, is comprised of
$60 million in cash and $40 million in Parallel stock.
The deal could be worth $155 million if certain
performance-based, earnout payments payable through
2023 are attained, according to Parallel.
Ceres Acquisition Corp., a special purpose acquisition
company, plans to take Parallel public through a
transaction that values the MSO at $1.9 billion.
Cannabis Real Estate Financier
Prices Nasdaq IPO at $119 Million
AFC Gamma, which offers real estate loans to legal
marijuana companies, priced its initial public offering
on the Nasdaq exchange to raise net proceeds of
roughly $118.8 million before underwriting discounts,
commissions and other expenses.
According to a news release, the Florida-based
company priced the offering of 6.25 million common
shares at $19 per share, the high end of the $17-$19
range presented when it announced the IPO in February.
18 Marijuana Business Magazine | May-June 2021
Ayr Acquires New Jersey MMJ Company
Ayr Wellness, a multistate marijuana
operator with offices in New York and
Toronto, agreed to a $101 million
acquisition of GSD NJ, a vertically
integrated medical cannabis company
doing business as Garden State
Dispensary.
Ayr will pay $41 million in cash, $30 million in stock
and $30 million in the form of promissory notes. Earnout
payments pursuant to the acquisition agreement will be
capped at a maximum of $96.75 million.
Cannabis MSO Cresco Expands
in Massachusetts Via $90M Acquisition
Chicago-based cannabis multistate operator Cresco
Labs is spending $90 million to acquire all the
outstanding equity interests of vertically integrated
Massachusetts operator Cultivate.
According to a news release, Cresco is paying
$15 million in cash and $75 million in stock for
Cultivate-plus up to $68 million in earnouts if certain
financial targets are met. The deal is expected to close in
the fourth quarter of 2021.
SPAC Plans to Acquire
Glass House Group in $567M Deal
A two-year-old special purpose
acquisition company announced its
intent to acquire Glass House Group
in a $567 million deal aimed at
creating California's largest vertically
integrated marijuana business.
Toronto-based Mercer Park Brand
Acquisition Corp., a SPAC founded in 2019, plans to
list Long Beach, California-based Glass House Group on
the Canadian NEO Exchange after the deal closes. The
transaction, which has a $1 billion equity valuation, is
expected to close in the first half of this year.
Cannabis MSO Vireo Health Closes $23.5 Million Loan
Multistate cannabis company Vireo Health International
closed the first tranche of a senior secured loan worth
$23.5 million.
Minneapolis-based Vireo said the loan will be used
" to support the company's ongoing growth initiatives
and working capital requirements. " The nonconvertible
loan, originally announced in November, carries a
U.S. DEVELOPMENTS
MJBizMag May-June 2021

Table of Contents for the Digital Edition of MJBizMag May-June 2021
