The Week In Cannabis: New ETF, First Delivery App On Apple, FBI, Sundial, M&A And More

Below is a recap of the main news related to the cannabis industry and markets for the week of July 5, 2021.

A New Cannabis ETF

There’s a new cannabis ETF in town, and it’s leveraged.

Launched by ETF Managers Group (ETFMG), the thematic exchange-traded fund issuer behind the world’s largest cannabis ETF, the ETFMG Alternative Harvest ETF MJ, ETFMG 2x Daily Alternative Harvest ETF MJXL is designed to seek daily leveraged exposure of 2x to the performance of its Prime Alternative Harvest benchmark index.

Weed Delivery On The App Store

Eaze became the first cannabis delivery company to launch an app on Apple (NASDAQ: AAPL)’s App Store, which recently changed its policies to allow cannabis-focused apps on its store.

“The shoppable Eaze app is a major milestone for the legal cannabis market and consumers,” the company stated.

Benzinga Cannabis’ content is now available in Spanish on El Planteo.

Via the new app, users can complete registration ID, verification, product selection, payment and, best of all, doorstep delivery.

Markets

Over the four trading days of this week:

• The ETFMG Alternative Harvest ETF MJ: lost 3.6%.
• The AdvisorShares Pure Cannabis ETF YOLO: tumbled 2.9%.
• The AdvisorShares Pure US Cannabis ETF MSOS: rose 1.3%.
• The Cannabis ETF THCX: was down 2.8%.
• The Amplify Seymour Cannabis ETF CNBS: tumbled 2.6%.
• The SPDR S&P 500 ETF Trust SPY closed the week up 0.4%.

FBI Reconciles With Pot

The FBI has quietly loosened its policies regarding past marijuana consumption among its potential agents.   

Candidates who have not consumed marijuana for over one full year prior to their application date can now be considered for a job with the Federal Bureau of Investigation.

The FBI’s previous policies required would-be agents to have abstained from any form of marijuana or cannabis in any location (domestic or foreign), for at least three years.

Sundial And SunStream Bancorp

Sundial Growers Inc. SNDL raised its financial commitment to SunStream Bancorp Inc by CA$350 million($282.4 million), taking the total investment to CA$538 million.

Sundial announced in March the launch of a 50/50 joint venture with SAF Opportunities LP - a member of the Canadian alternative investment management firm SAF Group - through a new corporation, SunStream Bancorp.

The entity was formed to create investment opportunities in the cannabis space by issuing loans, as well as hybrid investments in cannabis businesses and marketable securities.

In addition, the joint venture was projected to pursue other opportunities as well, including a Canadian SPAC.

Regulatory Updates

Rhode Island Gov. Dan McKee signed into law a bill that will establish a safe consumption site pilot program wherein people can test as well as use illicit drugs in a medically supervised environment, making Rhode Island the first state in the nation to establish such a program, which supporters say will save lives.

The legislation was approved by the House of Representatives in late June after many starts and stops.

Sha’Carri Richardson’s recent cannabis controversy seems to have encouraged the Nevada Athletic Commission to unanimously decide to change its anti-doping policy on Wednesday and no longer suspend athletes for marijuana possession or use.

Athletes in Nevada will now not have fear automatic disqualification from their sport for smoking pot. 

Financings And M&A

Greenlane Holdings, Inc. GNLN and KushCo Holdings, Inc. KSHB are wrapping up their merger.

On Tuesday, the companies announced the commencement of the proxy solicitation in connection with the all-stock deal, under which KushCo agreed to become a wholly-owned subsidiary of Greenlane.

Shareholders of both companies will vote to approve the merger agreement on August 26.

IM Cannabis (CSE: IMCC) (NASDAQ: IMCC) completed its previously announced acquisition of MYM Nutraceuticals MYM valued at CA$85 million ($67.6 million).

Harborside Inc. HBOR (OTCQX: HBORF) finalized its previously announced purchase of an Oakland-based cannabis manufacturer Sublimation Inc. (“Sublime”) for $43.8 million.

Choom Holdings Inc. CHOO CHOOF finalized the restructuring of its roughly $25.9 million in outstanding debt. This includes the $21.8 million that the company owes to Aurora Cannabis Inc. ACB.

As part of the agreement, the Canadian cannabis giant opted to convert the outstanding debt into 79,754,843 of Choom's common shares, resulting in Aurora taking a 19.9% stake in Choom. The price per share, however, remained undisclosed.

Hempfusion Wellness Inc CBDHF closed the previously announced acquisition of Sagely Enterprises, Inc. in a $25 million stock-and-cash deal.

NewLake Capital Partners closed the acquisition of a parcel of land in Phoenix, Arizona for a total investment of up to $20.5 million.

Khiron Life Sciences Corp. KHRN (OTCQX: KHRNF) launched an overnight marketed offering on Monday of the company’s units with a price of 45 cents per offered unit.

The Toronto-headquartered company announced the terms of the offering on Tuesday, reporting that A.G.P./Alliance Global Partners agreed to sell 27.44 million units at a price of 45 cents per unit for gross proceeds of $12.35 million.

High Tide Inc. HITI HITI (FRA:2LYA) purchased Daily High Club, an online cannabis accessories retailer, for $10 million.

Rubicon Organics Inc. ROMJ (OTCQX: ROMJF) issued an $8 million principal amount secured debenture to Green Island Investment Ltd. in relation to a debt financing transaction. The debenture bears an interest rate of 6.5% per year and has a two-year term. 

Germany-based vertically integrated medical cannabis company Eurox Group has received a €3 million ($3.55 million) investment from FastForward Innovations Ltd FFWD, an AIM-quoted company focused on fast-growing industries.

Under the agreement, FFWD will hold 8.85% of Eurox, following the issuance of new shares.

Green Check Verified (GCV) completed an oversubscribed $3 million convertible note financing with lead investor Flatiron Venture Partners. The round was also backed by a new investor Robert Wolf, founder of 32 Ventures and ex-chairman and CEO of UBS Americas. Fenway Summer Ventures and Bravos Capital were also involved.

Clark Hill, a Detroit-based international law firm, has combined with the Hoban Law Group, a highly influential firm focused on cannabis and hemp.

Marijuana Company of America, Inc. MCOA acquired distribution company cDistro, Inc. in a stock-for-stock transaction. cDistro shareholders will hold approximately 5.23% of the issued and outstanding common stock of MCOA.

Verano Holdings Corp. VRNO VRNOF closed the acquisition of Mad River Remedies, LLC, a dispensary in Dayton, Ohio, bringing its number of operating retail locations within the state to five.

Earnings Reports

Chalice Brands Ltd., formerly Golden Leaf Holdings Ltd. CHAL (OTCQB: CHALF) pre-announced its unaudited second-quarter earnings with a record quarterly revenue from continuing operations of $6.8 million.

The Portland, Oregon-based company noted that its record revenue of $6.8 million is 23% higher from the same period in 2020, which amounted to $5.5 million.

Icanic Brands Company, Inc. ICAN ICNAF generated CA$3.236 million ($2.621 million) in the third quarter of 2021, representing a year-over-year and sequential increase of 88.4% and 11.7%, respectively.

Innovative Industrial Properties, Inc. IIPR revealed its operating, investment and capital markets activity from the past three months.

The San Diego-based company currently owns 72 properties totaling roughly 6.6 million rentable square feet across 18 states, including Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Washington.

IIP disclosed that from April 1, 2021 through Tuesday, it has invested roughly $1.6 billion and had committed an additional approximately $347.8 million to reimburse certain tenants and sellers for the finalization of construction and tenant improvements at its properties.

KushCo Holdings generated net revenue of $28.3 million in its fiscal third quarter, representing 27% year-over-year growth.

Find all the details on these and other earnings reports on Benzinga Cannabis’ Earnings Center.

Celeb Moves

Gage Growth Corp. (CSE: GAGE) announced its exclusive partnership agreement with Grammy award and Golden Globe award-nominated recording artist Wiz Khalifa's brand "Khalifa Kush" ("KK"), to develop and launch a line of premium cannabis products in Michigan. 

Under this partnership, the Detroit-based cannabis company will be the exclusive producer and retailer of Khalifa Kush branded products in Michigan.

Latin America

Avicanna Inc. AVCN (OTCQX: AVCNF) finalized a supply agreement with a Brazilian pharmaceutical company via its majority-owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S. Under the three-year master supply agreement, the company will supply industrial volumes of THC and CBD-rich full spectrum psychoactive cannabis resin.

First orders for the pilot batches under the deal are projected to start in 2021. The first orders for commercial batches in 2022 are projected to yield around CA$4 million ($3.2 million) in revenue for Avicanna, according to the Brazilian pharmaceutical company.

Europe And Israel

Curaleaf International successfully exported more than one metric ton of medical cannabis to Israel as part of a larger supply deal with BOL Pharma.

Curaleaf International, previously known as EMMAC Life Sciences, was acquired by Curaleaf Holdings, Inc. CURA CURLF in April in a $310 million cash and stock deal.

Tikun Olam-Cannbit TKUN, inked a deal earlier this week with Maccabi Healthcare Services, the second-largest HMO in the country.

Under the agreement, Tikun Olam-Cannbit will offer discounts to Maccabi members who hold medical cannabis licenses. The discount will extend to its products as well as a package of services that include consulting, training, dispensing, delivery of products to the patient's home, training on how to vape and webinars on research issues.

CHS Research

Cannabinoid hyperemesis syndrome (CHS) is a rare condition that is believed to lead to intractable nausea, vomiting and abdominal pain in cannabis consumers. The condition can last days or weeks, returning for months. CHS's origins remain uncertain.

An Austin, Texas-based study released on Tuesday analyzes underlying genetic mutations in heavy cannabis smokers and concentrates consumers in an attempt to better understand and identify the genetic markers of the condition.

Using "the largest contemporaneous database," the study compared CHS diagnoses and symptoms of heavy-cannabis consumers.

The analysis adds to an incrementally growing pool of studies. "CHS is remarkably stereotyped in its presentation," the study notes, pointing out that nearly 75% of CHS patients are consumers for at least one year and all suffer from recurring severe nausea, vomiting and other possible adverse effects over several months.

Other News

WeedMD Inc. WMD (OTCQX: WDDMF) will change its corporate name to Entourage Health Corp. in the coming months.

Tilray, Inc. TLRY finalized its first harvest of medical cannabis grown in Germany via its German subsidiary Aphria RX GmbH. 

Receptor Brands, a new independent agency formed by two Chicago marketing veterans, Kent Thomas of rEvolution and Allison Disney of BBDO Energy, launched this week with the aim of creating a more agile and digital-first creative services model catering to fast-scaling cannabis brands.

Receptor has already captured project work with Cresco Labs as well as Michigan-based Red Arrow Farms and Chicago-based cannabis fintech Spence Labs.

“Cannabis brands are scaling at speed and adapting to constantly changing marketplace conditions. They need best-in-class creative partners who can not only keep up but help them stay ahead of consumer trends and the competition. Receptor Brands delivers with robust digital and social-led production services, high caliber talent, and the ability to innovate and experiment at speed,” Allison Disney, partner at Receptor Brands, told Benzinga

Cannabis technology platform Fyllo has teamed up with measurement giant Comscore SCOR to enable cannabis brands to reach valuable audiences by launching a new ad-targeting product.

Executive Moves

Find out all about the latest executive moves at:

• The Ideation Lab, CanaFarma, Zoned Properties, Alabama Medical Cannabis Commission, Green Organic Dutchman, TerrAscend
• Chalice, Aegis, Jushi, Delta 9, Eve & Co, Cronos And Auxly

Top Stories Of The Week

Check out the top stories on Benzinga Cannabis this week:

• New Cannabis Products For The Design-Conscious Consumer: Décor, Accessories, Devices
• Meet Peakz: The Second Cannabis Brand Supported By Jay-Z, The Parent Company
• Psychedelics Research FYI: Every Clinical Trial Underway Right Now Involving Public And Private Companies
• Tilray, Canopy Growth Options Traders Place Their Bets
• Cannabis Sales Booming In Illinois, Yielding $317M In Taxes
• 10 Highest Credit Scores For Smaller-Cap Cannabis Companies, From The Viridian Cannabis Credit Tracker
• Everything You Need To Know About 7/10: The Day Of Cannabis Concentrates
• International Rising Stars: 9 Cannabis CEOs To Keep An Eye On
• 15 States Settle With Opioid Maker Purdue Pharma For $4.5B: 'The Most That Individuals Have Ever Paid For Breaking The Law'
• Florida's Cannabis Market: What Investors And Entrepreneurs Need To Know

Top Spanish Stories

• MJXL de ETFMG: Nuevo ETF de Cannabis Llega al Mercado (Y Está Apalancado)
• Argentina: Avanza Fabricaciones Militares con el Cannabis Medicinal
• Entrevista a Snow Tha Product: Bizarrap, Persistencia, Weed y el Camino al Éxito
• Básicos del Cannabis: Qué Son los Terpenos
• Baby Doge: Qué Es y Cómo Comprar Baby Doge Coin
• THC y CBD: ¿Cuál es la Diferencia?
• Conocé el Vertiginoso Camino de Alan Noc, el Emprendedor Serial Detrás de Yo Me Planto
• Guía Paso a Paso: Cómo Inscribirse en REPROCANN
• Romances Químicos, Estados Alterados y Canciones para Chicas que Acaba de Conocer: Conocé Axel Fiks, el Explorador

Lead image by Ilona Szentivanyi. Copyright: Benzinga.