Marijuana Business Magazine August 2019

Marijuana Business Magazine | August 2019 18 Recent deals, acquisitions and other announcements from North American cannabis companies By Omar Sacirbey Company News | U.S. & Canada Medicine Man’s Double Acquisition Denver-based Medicine Man Technologies agreed to purchase Los Sueños Farms , Colorado’s largest outdoor cannabis grower, and MesaPur , a dispensary and infused product company doing business as Purplebee’s . Both companies are located in Pueblo County, Colorado. Terms weren’t disclosed. Medicine Man, which trades on the over-the- counter markets, said the acquisitions will expand its operations in cultivation, extraction, production and sales. According to a news release, Los Sueños has 36 acres of farmland under cultivation and an additional 36,000 square feet of cannabis greenhouses. Bob DeGabrielle, Los Sueños’ founder, will join Medicine Man’s board of directors. Surterra Synthetics Deal Surterra Wellness , an Atlanta-based cannabis company with operations in Florida, Massachusetts, Nevada and Texas, announced it will partner with Hungary’s Intrexon Corp. in a $100 million licensing deal aimed at biosynthetic cannabinoid production. Surterra will use Intrexon’s proprietary yeast-fermentation platform to boost its cannabinoid production. Under the agreement, Intrexon will be entitled to cash and equity payments, and in exchange, the company will provide Surterra exclusive access to its technology. Intrexon, which trades on the Nasdaq, will receive a $25 million technology access fee and expects to claim roughly $20 million in R&D expense reimbursement over the next five years for develop- mental milestones on each cannabinoid developed and royalties on each cannabinoid commercialized. Surterra, which is privately held, also closed a $100 million share offering; net proceeds will be used to fund acquisitions and capital expenditure. MedMen Raises $80 Million MedMen , a multistate cannabis company in California, closed on an initial $80 million tranche of funding from New York private equity group Gotham Green Partners . The money is the first part of a $250 million convertible credit facility with GGP that MedMen secured in March. MedMen issued to the lenders additional convertible senior secured notes, co-issued by the company and a subsidiary, MM CAN USA. MedMen also opened its first Florida medical marijuana dispensary in West Palm Beach—the first of 12 such planned storefronts in the state. Dixie-Globus Oklahoma Agreement Dixie Brands , a Denver-based infused product company, said it is entering the Oklahoma medical cannabis market through a manufacturing and distribution agreement with Globus Holdings . Oklahoma is the sixth state where Dixie, which trades on the Canadian Securities Exchange, has operations. Under the agreement, Dixie will allow Globus to use its intellectual property, including its proprietary formulations and preparation methods, as well as associated trademarks, in Oklahoma. Products such as gummies, mints, pills, vaporizers and drinks are expected to be available beginning this fall. Planet 13 Expands Orbit Planet 13 , the Nevada cannabis company that operates what it calls the world’s largest dispensary, is entering the California market with a $10 million acquisition of a dispensary license and lease in the Orange County town of Santa Ana. The company will pay Newtonian Principles a combination of $6 million in cash and $4 million in shares for the license and what is expected to be a 40,000-square- foot dispensary. Planet 13 said the Santa Ana store will be the largest marijuana retailer in California and the second biggest in the world, behind only its 112,000-square- foot dispensary “superstore” off the Las Vegas strip. U.S. DEVELOPMENTS