Scythian's $105M Florida Acquisition, Segra's Raise, Organigram's Record Quarter

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A Capital Raise

Segra International Corp. closed an oversubscribed private placement offering for about C$7.2 million. The units sold were composed of one common share, one liquid penalty warrant, and half of a common share purchase warrant, two of which enable the purchase of one common share at $1.

The net proceeds will be used for working capital, general corporate development and construction of micropropagation facilities.

Pursuant to the offering terms, Segra intends to list on the Canadian Securities Exchange before Oct. 31.

An Acquisition

Scythian Biosciences SCCYF announced an “arm’s length letter of intent” to acquire CannCure Investments Inc. for C$136.5 million. The purchase positions Scythian to penetrate the Florida market.

“With the exploding patient population and an estimated $2.5 billion in total annual market revenue in 2025, Florida is emerging as one of the largest and fastest growing medical cannabis markets in the U.S. with one of the highest patients/license ratios in America,” Scythian CEO Rob Reid said in a statement.

CannCure, itself, is in the process of purchasing an interest in a Florida-based medical organization and cannabis-licensed agricultural company. The latter, 3 Boys Farms, is a particularly attractive asset.

Subject to the completion of CannCure’s acquisitions, Scythian will buy 70 percent of CannCure with an option to acquire the remaining 30 percent.

Earnings

OrganiGram Holdings Inc OGRMF reported record third-quarter financial results with net income rising 162 percent sequentially to C$2.8 million. Sales increased 95 percent year over year to set another quarterly record.

“Our fiscal third quarter was transformational for the Company,” the company statement read. “Our production capabilities have increased exponentially, we launched our adult recreational brand strategy and have signed agreements with a number of provinces and private retailers as well as announcing key significant investments from both a strategic and international perspective.”

Cannabis oil sales volume increased 39 percent sequentially and 452 percent year over year. Dried flower sales popped 28 percent and 55 percent over the same respective periods.

Legalization

Two U.S. states are taking steps toward legalizing adult-use cannabis.

A Pennsylvania state representative announced a plan to introduce progressive legislation, including the expungement of criminal records for non-violent, misdemeanor marijuana charges.

Meanwhile, “Green the Vote” announced it collected the requisite signatures to put a legalization vote on Oklahoma’s November ballot.

"Oklahoma, a conservative state had previously sued the federal government as they claimed a good deal of Colorado cannabis had been making its way into their state," Dr. Stuart Titus, CEO of Medical Marijuana, Inc., told Benzinga. "With recent medical cannabis passage, the state is moving rapidly forward toward a vote in November on Adult Use cannabis. Who would have ever thought of recreational cannabis in Oklahoma? Amazing the shift in attitudes and sentiment."

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