Marijuana Business Magazine July 2019

Marijuana Business Magazine | July 2019 22 Harvest Raises Capital, Buys Eastern MJ Company Phoenix-based multistate operator Harvest Health & Recreation closed the initial tranche of its previously announced private placement for gross proceeds of $100 million. Harvest plans to use the net proceeds for working capital and general corporate costs. Under terms of the financing, Harvest offered convertible debentures priced at $1,000 per unit, which mature in May 2022 and carry a 7% annual interest rate. The debentures can be converted into subordinate voting shares at a price of $11.42 per share. The company also announced it had forged an agreement with an unidentified institutional investor to purchase up to four additional tranches of 100,000 convertible debentures for additional gross proceeds of up to $400 million. To facilitate the transaction, Harvest entered into an agency agreement with Eight Capital , a Toronto-based investment dealer. Harvest also agreed to acquire CannaPharmacy , a vertically integrated marijuana company operating in Delaware, Maryland, New Jersey and Pennsylvania. Terms were not disclosed. A Harvest spokesman confirmed the deal was not material to the company. Harvest has operations in 17 states and Puerto Rico. Empower Clinics Acquires Sun Valley Clinics Empower Clinics completed the acquisition of Sun Valley Certification Clinics Holdings in a cash and shares transaction valued at $3.8 million. Sun Valley operates a network of medical cannabis and pain-management practices in Arizona and Nevada and a telemedicine platform serving California. In connection with the deal, Empower also acquired the 30% minority membership interests held by Green Global Properties , a subsidiary of Aura Health . The transaction creates one of the largest clinic groups in the medical cannabis sector with 165,000 patients. Ionic Brands to Acquire Zoots for $855,000 Plus Stock Ionic Brands signed an agreement to acquire Natural Extractions , which does business as Zoots Premium Cannabis Infused Edibles . Both companies are located in Washington state. The deal includes $855,000 in cash and up to 10.7 million shares of Ionic Brands, which also will issue up to 5.4 million shares to the shareholders of Zoots. The edibles company’s product line includes drops, gummies, energy shots and hard candies. Missouri Bank Offers Deposit Services Triad Bank , based in the St. Louis suburb of Frontenac, Missouri, is offering deposit services to marijuana-related businesses such as processors, cultivators and dispensaries. Triad’s CEO told Marijuana Business Daily the bank will choose cannabis customers carefully and consider their business histories and success in other industries. ISBG Seeks Strategic Partnerships in Beverage and CBD Divisions International Spirits and Beverage Group , a Las Vegas brand incubator, announced it is pursuing strategic partnerships in its adult beverage and CBD divisions. ISBG intends to nurture emerging brands through critical stages of market development, includ- ing conceptualization, go-to-market strategy, supply chain and logistics engineering, integrated marketing and distribution. Products will be sold through the company’s website as well as established wholesale and retail distribution channels. C21 Investments Acquires Swell, Announces Private Placement C21 Investments in Vancouver, British Columbia, acquired all issued and outstanding shares in Swell , an Oregon-based extractor and manufac- turer of cannabis-based products. Swell has a 10,000-square-foot processing facility in Portland and has expansion rights for an additional 18,000 square feet adjacent to the primary facility. C21 also announced the closing of a nonbrokered private placement financing nearly 5.6 million units of the company at a price of $1.02 per unit (CA$1.32) and one-half of one common share purchase warrant for total gross proceeds of $5.7 million (CA$7.7 million). The net proceeds from the financing will be used for general working capital. MJardin Buys Nevada Extraction, Edibles Firm Denver-based MJardin Group agreed to buy Carson City Agency Solutions , which does business as Cannabella , an operator of a cannabis extraction facility and producer of edibles and topicals in Carson City, Nevada. Terms weren’t disclosed. The deal is expected to close during the third quarter of 2019. With the acquisition, MJardin will add extraction capabilities to its existing cultivation operations in Nevada. MJardin Group also completed construction of its 11,000-square-foot indoor cannabis cultivation facility in Dunnville, Ontario, which is expected to receive its cultivation license by late summer. Company News | U.S. & Canada