It’s time for your Daily Hit of cannabis financial news for June 22, 2020. 

 On The Site 

Jushi 

Jushi Holdings Inc. (OTCQX: JUSHF) is planning on buying Vireo Health’s (OTC:VREOF) Pennsylvania Medical Solutions, LLC as the company looks to strengthen its position in the state’s market. Jushi will pay Vireo $16.3 million in cash, a $3.8 million seller note, and assume a $17 million facility associated with a long-term lease obligation. The $37 million deal is expected to close by the end of August 20. 

FSD Pharma 

Canadian licensed producer FSD Pharma Inc. (Nasdaq: HUGE) has made a pivot in order to assist in the treatment of the deadly COVID-19 virus. The company announced favorable topline results from its Phase 1 randomized, double-blind, placebo-controlled study of ultramicronized palmitoylethanolamide (PEA), or FSD201. The company is hoping that with positive Phase 2 results, it can be used to treat COVID-19. 

IIPR

Innovative Industrial Properties, Inc. (NYSE: IIPR) is making available $30 million for additional expansion of their cannabis cultivation and processing facilities at the Green Leaf Medical property in Saxton, Pennsylvania. The company’s lease was amended to reflect the new investment as well as an adjustment to the base rent to take into account the additional available funding and extended the term of the lease agreement. Assuming full payment of the additional funding, IIP’s total investment in the property will be $43.0 million. 

In Other News 

Curaleaf 

Curaleaf Holdings, Inc.  (OTCQX: CURLF) changed the terms of its acquisition of Grassroots and removed the cash portion of the deal. . On July 17, 2019, Curaleaf announced an agreement to acquire Grassroots. Under the new mutually agreed and amended terms of the agreement, the principal component of the transaction consideration remains the same at approximately 102.8 million subordinate voting shares of Curaleaf.  What had initially been a $75 million cash component of the consideration has been eliminated, while the component of additional Curaleaf SVS to be priced at the 10-day volume-weighted average price prior to closing of the transaction has been increased from $40 million to approximately $90.1 million, subject to final adjustment. Accordingly, the total SVS consideration for the transaction is expected to be approximately 118.9 million shares. 

Joseph Lusardi, CEO of Curaleaf, stated, “Today’s announcement marks another significant step forward in finalizing our acquisition of Grassroots, providing Curaleaf an important entry to highly populous, vertically integrated markets in the Midwest. The pending integration of Grassroots will solidify Curaleaf’s position as the world’s largest cannabis company by revenue and the most well-diversified, vertically integrated cannabis company in the United States, the world’s largest cannabis market. We are well positioned to continue to lead our growing industry, and we look forward to closing the transaction and serving new patients and customers in the Grassroots community.” 

Harvest Health

Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company and multi-state operator (MSO) in the U.S., today announced the appointment of Deborah Keeley as Chief Financial Officer, effective immediately.  Mrs. Keeley joined Harvest in April 2020 as Vice President of Finance and Tax.

ACS Laboratory 

ACS Laboratory expanded its national presence with its highly anticipated acquisition of Botanica Testing, Inc., a certified hemp and CBD testing laboratory. The acquisition by ACS Labs adds 500 new hemp and CBD clients to its existing, and rapidly growing, portfolio.   

Botanica Testing Inc. has a reputation for impeccable quality, which aligns with ACS’s standards and ongoing expansion throughout the United States. In its search for a trusted buyer, Botanica sought ACS Laboratory to provide its clients with the level of service they expect and deserve. This transaction accelerates ACS’s position as one of the largest and top-ranking laboratories for precision testing of hemp, CBD and cannabis in the U.S. with customers in 44 states throughout the country.  

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