Welcome to
$4.
Happy Friday readers,
The news cycle slowed somewhat from last week's madness, but one thing we're expecting as New York and other states ramp up their cannabis markets - more deals.
On that front, this biggest M&A news in the industry this week was $4.
That deal, Canopy CEO David Klein told me, is all about pushing for profitability at home in Canada before stepping into the US.
But Klein thinks that step is coming soon, saying that federal "permissibility" (not legalization, for what it's worth) is coming like a "freight train."
What else?
Yeji and I will be covering everything you need to know about cannabis in New York. How the policies shake out, stocks to buy, people to know and watch, and who's benefiting - and losing out - from how the industry develops.
If you want to talk, reach out to us.
Here's what we wrote about this week:
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Canopy Growth is buying Supreme Cannabis in a $346 million mostly stock deal. Canopy's CEO said the deal targets the premium end of the market and lays the groundwork for US expansion.
Analysts called the deal a positive for Canopy but not "transformational."
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Analysts at the investment bank PI Financial say Columbia Care is their top pick in the sector. The analysts say the stock could pop more than 200% from the current price.
Columbia Care has a large presence in New York's medical-marijuana market.
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Fyllo is a cannabis-focused software company. The company just raised a $30 million Series B round.
Fyllo says it's expanding into the mainstream - both in investors and clients.
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New York's governor signed legislation legalizing
This tracker explains state legalization timelines and which companies are best positioned for new markets.
Executive Moves
- Cannabis edibles company Hervé $4 that cannabis veteran Ryan Hunter would be joining the company as chief strategy officer.
- Green Thumb Industries $4 that investor Swati Mylavarapu would be joining the company's board of directors.
- Evan Augustine has been promoted to chief revenue officer at cannabis tech company Wurk.
- Chirali Patel is joining the cannabis tech fund Digital Venture Partners as a managing partner and chief compliance officer.
Deals, launches, and IPOs
- Canopy Growth announced it was $4 for approximately $346 million in cash and stock.
- Florida cannabis giant Trulieve $4 that it would be acquiring three dispensary locations from Pennsylvania cannabis company Anna Holdings in a $60 million cash and stock deal.
- Organigram $4 Edibles & Infusions Corporation for $22 million.
- Canadian cannabis company Golden Leaf Holdings acquired a majority stake in Fifth & Root, Inc, a US CBD company, for $1.68 million.
- Mercer Park Brand Acquisition Corp. announced on Thursday it would be acquiring California cannabis company Glass House Group for $567 million.
- Merida Capital Holdings and cannabis art company Califari are $4.
Policy moves
- Virginia $4 on Wednesday. Starting from July 1, adults over the age of 21 will be allowed to possess, consume, and grow cannabis in the state. The bill does not yet allow for recreational sales, which are expected to launch in 2024.
- Mexico lawmakers $4 that they are considering yet another extension to hammer out the details of its adult-use bill.
- Sen. Majority Leader Chuck Schumer $4 that the Senate would act on marijuana legalization, with or without the White House.
Research and data
- A new study from $4 finds that there is little evidence correlating a specific THC level with impaired driving, and standard field sobriety tests are not effective in determining marijuana intoxication.
Earnings roundup
- Planet 13 released its $4 on Monday, reporting $20.1 million in revenue and a $2.9 million net loss.
- Verano Holdings released its $4 on Thursday, reporting $355 million in revenue and $245 million in profit for the full year.
- Kushco Holdings released its $4 on Thursday, reporting $32.9 million in revenue and a $5 million net loss.
What we're reading
$4 (The Virginian-Pilot)
$4 (VICE)
$4(Marijuana Moment)
$4 (Politico)
$4 (Insider)
$4 (Crain's Cleveland)