MJBizMag May-June 2022 - 16

COMPANY NEWS U.S., Canada & International by MJBizDaily & Hemp Industry Daily Staff
U.S. DEVELOPMENTS
Cresco to Buy Columbia Care
in $2 Billion Deal
Multistate marijuana operators
Cresco Labs and Columbia Care
demonstrated an urge to merge in
a blockbuster deal worth roughly
$2 billion, with Cresco set to acquire
Columbia Care. The proposed allstock
merger is one of the largest in
the cannabis industry to date and
would produce one of the biggest
MSOs in the nation.
The combined footprint of
Chicago-based Cresco and New Yorkheadquartered
Columbia Care would
include more than 130 cannabis
retail locations across 17 states and
the District of Columbia, reaching
about 55% of the U.S. population,
according to a news release.
The companies said the combined
business would have pro-forma
annual revenue " in excess of
$100 million in eight different
states by 2023 " and total revenue
of more than $1.4 billion before
any divestitures, making Cresco the
largest annual revenue generator in
the cannabis industry.
The planned marriage will also
involve some divestitures, with
Cresco CEO Charlie Bachtell saying
that it was likely some of the
combined company's New York
assets would be sold. Analysts
suggested asset sales might also
be required in Illinois, Florida,
Maryland, Massachusetts and Ohio.
The combined company will
continue to be called Cresco Labs.
Agrify Agrees to Raise
$135 Million in Capital
Ancillary cannabis-cultivation
company Agrify signed a definitive
agreement to raise as much as
$135 million in capital from a debt
financing to strengthen its balance
sheet and support continued growth.
16 May-June 2022 | MJBizMagazine
Under the senior secured debt
facility, $65 million will be immediately
available at closing, the
Massachusetts-based developer of
indoor agriculture technology said
in a news release. The remaining
$70 million can be drawn at
$35 million increments, depending
on certain conditions.
The note, which matures in March
2026, carries a favorable annual
interest rate of 6.75% but includes
stock warrants that will be issued
to the lender.
CannaCraft to Merge
with March and Ash
Northern
California
marijuana manufacturer and
cultivator CannaCraft will merge
with Southern California retail chain
March and Ash in a deal that was
" at least six months " in the making.
Financial terms of the deal
were not disclosed, but company
spokespeople confirmed to news
outlets that financing was provided
by Altmore Capital.
No layoffs are planned, and the
newly created entity-to be named
Groundwork Holding-will be
led by Bret Peace, the co-founder,
partner and general counsel at
March and Ash.
The merger will give CannaCraft
a dedicated retail outlet for its
portfolio of branded products, which
include Care by Design, Farmer and
the Felon, AbsoluteXtracts and more.
RIV Capital Buys Etain
for $247 Million
RIV Capital, a
Toronto-based
investment firm
bankrolled by a unit
of lawn-and-garden giant Scotts
Miracle-Gro, agreed to purchase
New York-based marijuana
company Etain Health for $247
million in cash and stock.
The transaction is believed to
be the largest involving a femaleowned
business in the cannabis
industry and gives RIV Capital-and,
indirectly, Scotts Miracle-Gro-the
opportunity to capitalize on the
upcoming launch of New York's
adult-use marijuana market.
RIV Capital is an investment and
acquisition firm heavily funded
by The Hawthorne Collective, a
Scotts subsidiary.
Under terms of the transaction,
RIV Capital will pay $212 million in
cash and $35 million in stock, based
on a five-day average price before
the announcement. RIV Capital said
it will use $150 million in proceeds
from The Hawthorne Collective to
help finance the cash portion of
the deal.
The Hawthorne Collective also
intends to provide RIV Capital with
an additional $40 million around
the closing of the acquisition,
according to a news release.
Hemp Firm Sues Colorado
Gov Over Lost Contract
A Colorado hemp company filed
a corruption lawsuit against
Gov. Jared Polis and several of his
advisers, saying that a 2020 bidding
process to oversee the state's Hemp
Advancement and Management
Plan was rigged.
BoCo Farms alleges that Polis
and others conspired to make sure a
Denver consultancy, the Marijuana
Policy Group, " would be awarded
the most lucrative hemp-related
contracts in (Colorado Department
of Agriculture) history. " The company
also claims that Polis has investments
in hemp through holding
companies and improperly pushed
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MJBizMag May-June 2022

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