Grand Openings
Harvest of Ohio, LLC, Dispensary in Beavercreek, Ohio
This October marked what could be the least frightful fall the industry has seen with numerous new retail stores opening across the country and some retail chains hitting significant milestones.
Commonwealth Alternative Care opened its doors in Brockton, Massachusetts on October 16. While the cannabis retailer, owned by Phoenix based TILT Holdings, opened exclusively for medical sales, recreational sales should begin after the store passes its final inspection.
In Tallahassee, MedMen celebrated the grand opening of its 28th location on October 21. The 4,000-square-foot retail location is technically re-opening after it and four other Florida locations were shuttered on May 3, 2020.
The opening of STIIIZY in Pacheco, California on October 16, marked the 20th retail store to open for its parent company, Shryne Group. The vertically integrated company has seen explosive growth, quickly building from one store and 150 employees in 2019, to 20 stores and 2,500 employees by October 2021.
Trulieve celebrated the grand opening of its 100th retail location in Tallahassee, Florida on October 19. Erie, Pennsylvania welcomed its second goodblend store on October 23. In November, Sunday Goods opened its Tempe, Arizona location. The new 5,000-square-foot location is the company’s second retail store and includes a luxury interior design and a drive through.
Canopy Growth and Wana Brands agree to option terms
Canadian giant Canopy Growth in October signaled its belief in American legalization and its intentions to get into the market with the announcement that it was spending nearly $300 million for the rights to acquire Wana Brands, the No. 1 edibles brand in North America, “upon federal permissibility of THC in the U.S.”
The definitive agreements are structured as three separate option agreements giving Canopy Growth a call option to acquire 100% of the membership interests in each Wana entity. As consideration for entering into the agreements, Canopy Growth will make an upfront cash payment of $297.5 million.
“As we establish Canopy Growth as the world’s leading cannabis company, acquiring the No. 1 cannabis edibles brand in North America will serve to strengthen our market position in both Canada and the United States,” Canopy Growth CEO David Klein said in 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.”
Wana manufactures and sells gummies in Colorado and licenses its intellectual property to partners that manufacture, distribute and sell Wana-branded gummies across 12 U.S. states and nine Canadian provinces. Wana expects to have license agreements in place in more than 20 U.S. states, including in future adult-use markets in New York and New Jersey, by the end of next year.
Upon exercising its right to acquire Wana, Canopy Growth will own and operate Wana’s vertically integrated facility in Colorado as well as the licensing division.
Marijuana Venture’s 11th Interchange: ‘Best event of its type, hands-down’
Marijuana Venture hosted its 11th successful Interchange event on October 5-6 at the Renton Pavilion in Renton, Washington. The owners and buyers from 45 Washington cannabis retailers attended the event for two days of meetings with vendors.
“The best event of its type, hands-down,” said Happy Trees owner Paul Brice.
“Thank you all for a great event,” said James Beauchamp of Agro Couture. “We closed deals with seven new vendors and did over $35,000 in sales over our two days.”
Vendors were happy to get face time with buyers, and buyers spent two days seeing new products and old friends in a safe, secure, business-only environment. Meetings lasted 25 minutes, followed by 5-minute breaks. In total, more than 100 cannabis companies participated in the event.
“We love Interchange and always look forward to meeting new suppliers,” said Uncle Ike’s owner Ian Eisenberg.
On January 19-20, Marijuana Venture will host its first Interchange event in Portland, Oregon. Interchange is tentatively scheduled to return to Western Washington in April 2022.
For more information on upcoming Interchange events, visit www.InterchangeMV.com.
— Greg James
This expands Canopy’s reach into the American market, which also includes an existing right to acquire multi-state operator Acreage Holdings and its conditional ownership interest in TerrAscend Corp.
Wana will continue to operate as an independent company, with no economic or voting interest from Canopy until Canopy exercises its right to acquire Wana.
“We have long considered what the next phase of our growth might look like, and this deal is not only a great testament to our focus on bottom line growth and fiscal diligence, but also to the value we believe Wana can bring to Canopy and its shareholders now and in the future,” Wana Brands CEO Nancy Whiteman said in a release.
Earlier this year Wana Brands was named to its impressive fourth-straight appearance on the Inc. 5000. The company clocked in at No. 2,675 on the annual list of the fastest growing private companies in the U.S., with a three-year growth of 152%.
— Brian Beckley