This Week In Cannabis: Snoop’s Beverage Empire, Earnings, M&A, International News And More
The cannabis industry continues to evolve at breakneck speed and this past week was no exception. From significant financial transactions to regulatory shifts and high-profile business moves, the sector saw several key developments that could shape its future.
Among the biggest headlines: Vireo Growth Inc. (OTCQX:VREOF) reported record revenue for 2024 and is gearing up for a transformative 2025. Planet 13 Holdings Inc. (OTCQX:PLNH) secured a $2.1 million settlement and recovered a total of $10.5 million in misappropriated funds. Meanwhile, Glass House Brands Inc. (OTCQX:GLASF) locked in a $50 million loan with favorable terms, signaling confidence in the company’s long-term prospects.
On the corporate front, Trulieve Cannabis Corp. (OTCQX:TCNNF) announced a CFO transition, Ayr Wellness Inc. (OTCQX:AYRWF) shifted its focus away from Illinois to double down on Florida and MariMed Inc. (OTCQX:MRMD) finalized its $11 million acquisition of First State Compassion, strengthening its foothold in Delaware’s emerging adult-use market.
In political news, Colombian President Gustavo Petro renewed calls for full cannabis legalization, while in the UK, a new report suggests cannabis reform could generate £1.5 billion ($1.94 billion) in economic benefits. Across the globe, Malaysia’s Health Ministry opened registration for medical cannabis-based products, marking a historic milestone in the country’s strict drug policy.
Meanwhile, Snoop Dogg made waves in the cannabis beverage space, consolidating five new brands under his Iconic Tonics umbrella, signaling a major play in the booming market for infused drinks.
Let’s dive into the biggest cannabis stories of the week.
Markets And Business
Planet 13 Recovers Millions In Misappropriated Funds
Planet 13 Holdings settled a financial dispute involving El Capitan Advisors and its founder Andrew Nash, recovering $2.1 million from BridgeBank. This brings the company’s total recovery to $10.5 million, including the expected proceeds from selling real estate tied to the case.
The company is still pursuing $10.3 million in additional damages against Nash and El Capitan. Legal battles continue, but the company has already secured a default judgment, allowing it to seek further compensation.
Glass House Secures $50M Loan With Favorable Terms
Glass House Brands replaced its previous senior secured loan with a new $50 million facility, pushing its maturity date to 2030 and securing a lower interest rate of 8.58 percent.
“This refinancing strengthens our balance sheet, significantly improves our cash flow, and pushes out the maturity of our senior secured debt,” said CEO Kyle Kazan. With $8.1 million in new liquidity and interest-only payments for the first two years, the move gives the company much-needed breathing room in a capital-strapped industry.
Read more about the Glass House loan here.
MariMed Finalizes $11M Acquisition In Delaware
MariMed completed its $11 million acquisition of First State Compassion (FSC), solidifying its vertically integrated operations in Delaware ahead of adult-use cannabis sales launching later this year.
FSC, Delaware’s leading cannabis operator, has long distributed MariMed’s flagship brands, including Betty’s Eddies, Vibations, and Nature’s Heritage. CEO Jon Levine sees the acquisition as a major competitive advantage: “We expect by fully integrating its operations, we will further build FSC’s and our brands’ dominance in the market.”
Full details on MariMed’s acquisition here.
Ayr Wellness Exits Illinois, Focuses On Florida
Ayr Wellness is pulling out of Illinois after failing to achieve scale or vertical integration in the state. The company signed a letter of intent to sell its four retail locations, shifting its focus to Florida, where it operates 67 dispensaries.
With the upcoming launch of its Ocala indoor cultivation facility, Ayr aims to double flower production and combat price compression in Florida’s competitive market. The company is also expanding in Ohio, having opened its fourth adult-use store in February, with plans for three more by year’s end.
Trulieve’s CFO Resigns, Interim Executive Appointed
Trulieve announced a CFO transition, with Ryan Blust stepping in as interim CFO after Wes Getman‘s departure. The company has retained an executive search firm to find a permanent replacement.
Big Tobacco’s Growing Cannabis Play: BAT’s $86.8M Investment In Organigram
British American Tobacco (BAT) has completed a C$124.6 million ($86.8 million) investment in Organigram Holdings, further expanding its cannabis footprint.
The investment will fuel Organigram’s expansion, particularly through its Jupiter strategic investment pool, which has already backed Germany’s Sanity Group and U.S.-based Open Book Extracts.
More on BAT’s growing influence in cannabis.
Safe Harbor Financial Unlocks $6M In Liquidity With Debt Modification
Safe Harbor Financial has secured a two-year interest-only period on its debt, providing the company with more than $6 million in additional liquidity. The move comes as part of the fintech firm’s strategy to strengthen its financial position while continuing to serve the cannabis industry, which remains …