October is always a big month for cannabis: It’s the harvest season, also fondly known as “Croptober,” and the canna-conferences like MJBizCon, Benzinga Capital and MJ Unpacked are kicking off imminently.
But one of the surest signs that it’s the high season for the regulated cannabis industry?
A whirlwind of deal announcements, this week from Canopy, Dutchie and Pelorus (and the capital raise previously announced by Flowhub).
Canopy wants a winner
Smiths Falls, Ontario-based Canopy Growth announced they’ve entered a definitive agreement with Boulder, Colorado’s Wana — North America’s most popular edibles brand — to pay $297.5 million for the right to acquire 100 per cent of the company once THC is federally permissible, according to a press release.
“The right to acquire Wana secures another major, direct pathway into the U.S. THC market upon federal permissibility, and in Canada we’ll be adding the top-ranked cannabinoid gummies to our industry-leading house of brands,” said Canopy CEO David Klein in a statement.
Dutchie doubles its value
Bend, Oregon-based retail software company Dutchie is also celebrating, announcing that after raising $350 million in their latest financing round, they’re now valued at a cool $3.75 billion (with a B) — more than doubling its value in the past seven months, according to a press release. Led by D1 Capital Partners, the funds will go toward recruitment, market expansion (including beyond North America) and R&D.
Pelorus pushes for lower rates
And Newport Beach, California-based Pelorus Equity Group announced that the commercial bridge loan group catering to the cannabis industry is the first to secure a $20 million line of credit with a FDIC insured bank at 4.75 per cent and no non-usage fees — allowing them to offer the “lowest available commercial real estate lending rates” to the industry.
CEO Dan Leimel said the line of credit “will substantially increase funding capacity for facility improvements, build outs and expansions loans in the cannabis sector.”
So as you pack your bags to Las Vegas next week, know that between when you take off and when you land, serious deals may have been announced and closed. See you there!