BIG ACQUISITION
Canada’s Sundial to acquire Valens for $138 million in an all-stock deal
Calgary-based Sundial Cannabis has agreed to buy Kelowna-based The Valens Company for $138 million in an all-stock deal, reports BNN Bloomberg.
The acquisition will generate a projected $10 million in savings. “”We are thrilled to bring together two best-in-class cannabis companies that have extremely complementary assets to create a true market leader,” said Valens CEO Tyler Robson in a statement.
But replies to the CEO’s tweet announcing the deal expressed disappointment. “Thanks for looking out for those of us that financed a multi-year build-out just to give it away,” wrote one account. “Very disappointing!”
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ILLEGAL IMPORTS
Illicit sellers in New York are selling regulated products from out-of-state
Manhattan’s Empire Cannabis Club is selling products by brands like AbsoluteXtracts, Jeeter, Stiizy and Kiva—all of which are regulated companies in legal states like California and Colorado, but can’t legally import products into the state, writes Forbes.
While the makers of those products say they don’t know how they wound up in New York, it’s a way for those brands to be marketed to consumers in the state ahead of adult-use sales and pre-federal legalization.
Empire’s founder Jonathan Elfand also won’t share how the store acquired regulated cannabis products. “Hey, magic happens,” he said.
PSL SEASON
Martha Stewart launches pumpkin spice CBD gummies
The fall season is nothing without pumpkin spice flavoured, well, everything—so of course Martha Stewart’s CBD line is launching a limited edition pumpkin spice gummy flavour, writes Us Weekly.
Each gummy contains 10 mg of CBD isolate, and each USD $35 purchase comes with three packs of 10 gummies each.
“The Pumpkin Spice flavor signifies the beginning of the fall season and I wanted to capture this delicious moment with our CBD gummies,” Stewart said.
LEGACY TO LEGAL
How New Jersey could help legacy entrepreneurs transition to the legal market
Rather than penalize illicit operators like regulators have done in other legal adult-use states, New Jersey should create a fund to help transition legacy market entrepreneurs to the legal market, writes Stu Zakim in the Star Ledger.
How to do it:
- A portion of sales by existing MSOs operating should be allocated to the fund
- So, too, should some of the tax revenue
“This effectively removes one of the biggest barriers to entry for social equity applicants (funds needed to open a cannabis business range from $5 to $10 million and banks won’t finance anything due to cannabis still being federally illegal) and builds a very necessary bridge rather than a moat to the legacy industry into New Jersey’s booming legal side.”
