Search Results for: Green Growth Brand

Aphria Agrees To Accelerate Expiry Of Green Growth Brands Bid And Terminate Its Option With GA Opportunities Corp

CANADA: Aphria announced that it has entered into a series of transactions that will accelerate the expiry date to April 25, 2019 for the previously announced take-over bid by Green Growth Brands Inc. and will terminate the arrangements with GA Opportunities Corp. for consideration of $89.0 million.
 
Irwin D. Simon, Aphria’s Chairman and Interim Chief Executive Officer stated, “We are very pleased to move forward with this favorable resolution as we continue to focus on the long-term growth of our leading cannabis business. We plan to use the $89.0 million in proceeds from the transaction to fund our strategic global expansion initiatives. On behalf of our Board of Directors and management team, we continue to recommend that Aphria shareholders reject the GGB offer and do not tender their Aphria shares to the GGB offer.”
 
Aphria has entered into a shortened deposit period agreement with GGB to facilitate the acceleration of the expiry of GGB’s offer to purchase all of the issued and outstanding shares of Aphria. In that regard, Aphria has agreed to reduce the initial deposit period of the bid to 92 days from January 23, 2019, the date that GGB commenced the GGB Offer. GGB will be mailing a Notice of Variation providing that the GGB Offer will expire at 5:00 p.m. on April 25, 2019. Based on the closing price of $3.86 per GGB share on the Canadian Securities Exchange on April 12, 2019, the implied consideration under the GGB Offer would be $6.07 per Aphria share, representing a significant 54.7% discount to Aphria’s closing price on the Toronto Stock Exchange of $13.41 per share on the same day.
 
In light of the foregoing and for the reasons previously disclosed, Aphria continues to recommend that Aphria shareholders reject the GGB Offer and do not tender their Aphria shares to the GGB Offer. 
 
In connection with the foregoing, GGB has entered into a share purchase agreement with GAOC pursuant to which GGB has agreed to purchase for cancellation 27.3 million shares held by GAOC, for an aggregate purchase price of $89.0 million. The terms of the Share Purchase Agreement include, among other things, that GGB will pay in cash $50.0 million of the Purchase Price to GAOC within 30 days of the date hereof and will issue a promissory note to GAOC for $39.0 million due in six months from the Closing Date. GGB has granted a security interest to GAOC to secure its obligations under the Share Purchase Agreement and the GGB Note. The completion of the Share Repurchase is conditional on the Purchase Price, on a per share basis, not being greater than the simple average of the closing price of the GGB shares on the CSE for the 20 trading days prior to the Closing Date.
 
Aphria and GAOC have also entered into a debt/call option settlement agreement pursuant to which Aphria has agreed to settle the debt owed under a promissory note issued by GAOC to Aphria in the amount of $55.0 million and terminate its rights under a related call option in consideration for total consideration of $89.0 million payable by GAOC upon the receipt of funds received under the Share Purchase Agreement and the GGB Note. GAOC has granted a security interest to Aphria to secure its obligations under the Settlement Agreement.

Green Growth Brands Partners With Simon Property Group To Launch America’s First Chain Of CBD Shops

OHIO: Green Growth Brands announced that it has entered into an agreement through which the Company will gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group.  Pursuant to the arrangement, GGB will further expand its chain of CBD-infused personal care product shops under the Seventh Sense Botanical Therapy brand and other GGB brands. The Seventh Sense brand offers high quality CBD-infused products at affordable prices.

“Our partnership with Simon allows GGB to launch our brands and CBD products in premier shopping destinations across the U.S.,” said Peter Horvath, CEO of GGB. “Our management team has had decades of experience working closely with developers and operating premium retail stores in their properties. We know this arrangement gives us access to the best locations, foot traffic, and consumers. We look forward to introducing our remarkable retail experience and line of CBD products to Simon shoppers in the near future.”

Simon is the largest shopping mall operator in the United States, and its high-profile properties include Roosevelt Field in metro New York; The Galleria in Houston, TX; and Woodbury Common Premium Outlets in Central Valley, NY. The expansive nature of the relationship with Simon makes it the first of its kind in the CBD industry and will give GGB access to entire markets of new customers at many of the nation’s most productive retail locations.

“We are constantly on the lookout for cutting-edge new concepts, like the GGB shops,” said John Rulli, President of Simon Malls. “We are committed to adding new and dynamic retailers and uses to our shopping destinations, and the GGB shopping experience is exactly the type of innovation our customers want and expect from us. We’re excited to work on the GGB launch, and look forward to a long and deepening relationship as we build this network together.”

The first shop is expected to open in March, 2019 at Castleton Square Mall in Indianapolis, Indiana. The remaining shops will be opened over the course of 2019.

Aphria’s Board of Directors Rejects Green Growth Brand’s Hostile Takeover Bid As Significantly Undervalued And Inadequate

CANADA: Aphria announced that its Board of Directors has rejected the hostile bid by Green Growth Brands to acquire all of the outstanding common shares of the Company including any Common Shares that may become issued and outstanding after January 22, 2019, but prior to the expiry of the hostile bid upon the exercise, conversion or exchange of options, warrants, debentures or other securities of the Company exercisable or convertible into Common Shares, other than Common Shares owned by GGB or its affiliates, in exchange for 1.5714 shares of GGB.

aphria logoBased on the 20-day volume-weighted average price of GGB shares immediately before GGB’s announcement of an intention to acquire the Common Shares of the Company, the Hostile Bid reflects a 23% discount to the Company’s share price over the same period. The Board made its recommendation after careful consideration and receipt of the recommendation of a committee of its independent directors (the “Independent Committee”), who were advised by financial and legal advisors.

In the Board’s view, the Hostile Bid:

  • Significantly undervalues Aphria relative to its current and future worth, offering Aphria shareholders a substantial discount to its current and future value as opposed to a premium observed in other transactions in the cannabis sector involving Canadian licensed producers.
  • Would have negative repercussions, including delisting from the TSX and NYSE and a potential reduction in interest from strategic partners, that could destroy value for Aphria shareholders, with minimal offsetting operational, financial or strategic benefits.
  • Would result in Aphria shareholders effectively giving GGB shareholders a 36% interest in Aphria in exchange for shares in a company with limited operations or other experience in the cannabis industry.
  • Does not account for Aphria’s bright outlook, either as an independent company or in partnership with a strategic partner, which offers Aphria shareholders substantial value creation.

Aphria Responds To Unsolicited Proposal By Green Growth Brands

CANADA: Aphria responds to the unsolicited proposal by Xanthic Biopharma d.b.a. Green Growth Brands to acquire all of the Company’s outstanding common shares in an all-stock transaction.

Based on the 20-day volume weighted average price of GGB shares and the expressed exchange ratio of 1.5714 common shares of GGB for each Aphria share, the proposed bid would be approximately 23% below the Company’s average share price over the same period.  Aphria shareholders should be aware that the value of GGB‘s per-share offer is based on a hypothetical valuation of its own shares, with no relation to the current price.

GGB’s management presented the offer to Aphria the morning of December 27, 2018, and immediately went public with its proposal, less than six hours later and after the market closed on the same day.  The Board believes that GGB is attempting to acquire the company through a highly conditional offer at a significant discount to its current and future value.

Irwin Simon, Chair, said, “While we appreciate GGB’s interest in the value we have created at Aphria and our significant growth prospects, their proposal falls short of rewarding our shareholders for participating in such a transaction.  Further, the proposed offer is quite risky given GGB’s condition to complete a brokered financing at a price that is more than double the recent average of their share price, as a key term to the proposal.”

Added Simon, “The Board has determined that the GGB proposal, as it currently stands, significantly undervalues the company.  Aphria has a tremendous market opportunity as a leader in the sector and a strategic vision to meet those opportunities.  Our focus is to realize that value for the benefit of all our shareholders.”

The Aphria Board of Directors has established an independent committee of directors to consider this proposal and any formal offer received.  As previously disclosed, Aphria holds a passive investment in Green Acre Capital Fund II, which we understand has invested in numerous emerging cannabis companies, including GGB.  The independent committee is comprised of directors with no relationship to Green Acre Capital Fund II or GGB.  Aphria will continue on the execution of its current corporate strategy, including its international expansion plan, and the growth of its unique assets.

Viola Closes $16 Million Investment Round Led By Gotham Green Partners

CALIFORNIA: Viola, a national leader in the production and sale of premium quality cannabis products founded by NBA veteran Al Harrington, today announced the closing of a $16 million funding round led by Gotham Green Partners. The investment firm, known for its financial support of some of the most reputable cannabis companies in the industry, is the first institutional investment in the company. 

Al Harrington Viola

This latest round of funding will assist with the acquisition of a 34,500 sq. ft cultivation, processing and distribution facility in Adelanto, California as well as the completion of Viola’s 48,000 sq. ft facility in Detroit, Michigan. The funds will also enable Viola to continue to advance the growth of the company’s personnel with key new hires that will continue to establish Viola as a leader in the cannabis marketplace.

Viola emerged on the scene with a commitment to making an impact by promoting social equity through increasing minority participation in the cannabis industry and positively impacting communities by reinvesting in individuals most affected by the war on drugs. Viola raised $15 million prior to this round of funding, which enabled the company to grow its product offerings and footprint within the cannabis industry. The company is currently operating in CaliforniaColoradoOregon and Michigan, with plans to expand into MarylandNevada and Arizona in 2020.

“Over the last five years, Viola has been dedicated to creating and producing quality herbal experiences for our customers,” said Al Harrington, CEO of Viola. “With the financial support and investment of Gotham Green Partners, our ability to dedicate more physical space to growing and cultivating our flowers and team will make the possibilities endless.”

“We are thrilled to be aligned with Viola as the company expands its lifestyle brand into new markets,” said Jason Adler, Managing Member of Gotham Green Partners. “As the firm’s visionary, Al has successfully launched the concept and subsequently surrounded himself with a top-notch management team. Further, Al’s background and the company’s mission resonate with a broad and engaged consumer base, and we are excited to see Viola products on more retail shelves across the country.”

CCTV Expands Footprint, Programming Offerings Via GreenScreens Deal

COLORADO:  GreenScreens, based in Boulder, Colorado, industry leaders for in-store information boards and California-based Cannabis Club TV, the only digital cannabis infotainment network backed by Tommy Chong, have entered into an agreement to combine resources providing cannabis dispensaries with a one-stop shop for digital footprint management.

According to a joint press release, the new partnership features the first and the largest Direct Out Of Home (DOOH) and Over the Top TV (OTTtv) portable broadcast network devoted to the cannabis industry. It provides the customer a visual path to brand awareness, the budtender an opportunity to up-sell, the cannabis brand an outlet to tell its story, and the dispensary a sales lift to the brands in the store.

“Combining our business model with GreenScreens just made sense, Cannabis Club TV is all about providing customers with more choices for great video entertainment integrated with mobile and quality service,” said Danny Keith, Cannabis Club TV CEO. “Providing the dispensary with entertainment and menu boards guide consumers to better purchases and empowers staff with solutions to increase sales.”

The deal will leverage the executive staff and sales teams of both companies to manage the existing 10 states (WA,OR,CA,CO,NV,MI,MD,FL and AZ) and about 350 screens in those markets. The opportunity to expand both networks exponentially will allow this new collaboration to grow to over 700 screens by the end of June 2018.

“It is a perfect synergy!  Coming off our 2017 results, where we’ve opened over 40 stores in Colorado alone.  We are excited to partner and aggressively grow our store base outside of Colorado.  We see this key partnership with CCTV as one important piece of our growth strategy” -Ryan Sterling CEO GreenScreens.

One Love dispensary in Long Beach, CA  owner and COO Jeremy Abrams, a quick adopter of the combined technology play says: “I couldn’t be happier with how beautiful the digital displays and televisions came out. Everything about it was simple. From the Installation to fine tuning, the process and product couldn’t be any better.”

Dispensaries and medical offices providing services to cannabis patients can contact either company to obtain an unparalleled digital experience with no installation costs.

Viola Launches Viola Cares With National Non-Profit Organization Root And Rebound

Social Impact Initiative Aims to Destigmatize Minority Representation and Increase Social Equity Within the Cannabis Industry

CALIFORNIA: Viola, a nationwide leader in the production and sale of premium quality cannabis products founded by NBA veteran Al Harrington, today announced the official launch of its social equity initiative – Viola Cares. Through education, equitable offerings, expungement, and incubation programs, the initiative will result in more than 10,000 jobs, hundreds of new business owners and expanded industry diversity by increasing representation, facilitating community building and providing employment opportunities.

Viola’s first strategic alliance within its Viola Cares program kicks-off with Root & Rebound. Root & Rebound is home to lawyers and advocates committed to restoring power and resources to the communities most harmed by mass incarceration and the War on Drugs. Their work combines direct legal services with systems-changing policy advocacy and public education, in an effort to move society toward greater racial and economic equity, justice, collective liberation and intergenerational healing. Their educational resources like the California Roadmap to Reentry, the Reentry Planning Toolkit, the National Fair Chance Housing Toolkit, and others have supported thousands of people as they work to navigate the collateral consequences of an arrest or conviction history.

Viola, in conjunction with Root and Rebound, will produce a first-of-its-kind toolkit designed specifically for people with cannabis-related convictions, to be entitled: “A New Leaf: A ‘How-To Guide’ for Successful Reentry After A Cannabis Conviction.”

“At Viola, we live and breathe the belief that a cannabis conviction should never be considered a life sentence,” said Al Harrington, Founder, Viola. “In joining forces with Root and Rebound, we will look to help those communities of color who have historically been the victims of cannabis-related incarceration and who have fallen on hard times, and turn those struggles into opportunities for success within this rapidly growing industry.”

Opportunity within the cannabis industry only continues to grow as legalization progresses and passes into law across the country, and Viola is breaking the barrier of entry for minorities to contribute to that growth through cultivation and entrepreneurship.

“We’re honored to be working side-by-side with Viola on such an important initiative–one that positively impacts thousands who have been unfairly stigmatized by their prior cannabis-related incarceration,” Katherine Katcher, Founder and Executive Director of Root and Rebound. “Together we’re changing that conversation, leveling the playing field for minorities and creating opportunities for those deserving of a second chance.”

In celebration of the strategic alliance between Viola and Root and Rebound, Viola will host a welcome reception and panel discussion in support of the launch of “A New Leaf” toolkit at the Viola headquarters in Los Angeles on February 26, 2020. A moderated panel hosted by Viola CMO Ericka Pittman will include Katherine Katcher, Eliana Green, and Sandra Johnson from the Root & Rebound team, along with Al Harrington and Dan Pettigrew, Co-Founders of Viola moderated by Van Lathan.

Cresco Labs Names Former Molson Coors Marketing Executive Greg Butler Chief Commercial Office

ILLINOIS: Cresco Labs, one of the largest vertically integrated multi-state cannabis operators in the United States, today announced a high-profile leadership hire to support its steadfast commitment to building the most important cannabis company in the U.S. Greg Butler joins Cresco Labs as its first Chief Commercial Officer. Greg brings to Cresco Labs a strong background in driving brand growth for top-tier CPG companies including Pfizer, Johnson & Johnson and Molson Coors, wellness retail execution for Walgreens, and business growth and capital management strategic advising for leading private equity portfolio companies.

In this newly created position, Greg is responsible for demand and commercial strategic planning, bolstering Cresco Labs’ sales and marketing teams with top talent, leading the launch of all new products and innovation, brand M&A and integration, and driving enterprise strategies to deliver on the company’s vision to be the most important cannabis company in the U.S. among patients, customers, consumers and industry stakeholders.

“One of the key components of our success is the ability to strategically curate a leadership team with both institutional expertise and the highest caliber of subject matter experts across different industries—from retail to healthcare to beer to CPG,” said Charles Bachtell, CEO of Cresco Labs. “Greg has a remarkable general management pedigree and an impeccable reputation from his work driving growth for the world’s most iconic brands. Cannabis is an industry where his background in patient marketing, wellness retail, corporate planning and traditional CPG brand building are all necessary to deliver growth, and I couldn’t be more pleased to add these capabilities to our arsenal for driving long-term value. Greg’s addition strengthens an already accomplished team that’s well positioned to usher in the next generation of normalized and professionalized cannabis.”

After a year serving as Operating Partner at MNML Ventures, an affiliate of Cresco Labs, Greg has stepped into a full-time CCO role to continue to execute the long-term growth plan that has already delivered significant results. He led the creation of a pioneering occasion-based portfolio strategy, relaunched seven cannabis brands with new brand positionings, identities and packaging design, oversaw the creation of a multi-year innovation pipeline, and drove the concepting and launch of the national Sunnyside* retail brand. He also helped reshape Cresco Labs’ robust marketing, retail operations and sales teams that are made up of notable hires from Apple, Starbucks, PepsiCo and Red Bull.

“The results of Greg’s leadership speak for themselves,” says Tom Manning, Chairman of the Cresco Labs Board of Directors. “He oversaw the Miller portfolio and developed a commercial strategy for the billion-dollar Miller Lite brand, delivering 13 quarters of sustained growth after years of declining sales. He also has launched innovation consumer campaigns for global brands that drove share growth and has won a wide range of awards from the Cannes Lions International Festival of Creativity to the Effie Awards.”

Greg graduated from Queen’s University and received his MBA from Harvard Business School.

“Throughout my career, I’m most energized by the opportunity to support the entrepreneurism of small companies in hyper-growth mode with the discipline and proven strategies of large CPG brands. After my first conversation with Charlie about his vision for Cresco Labs, I knew the opportunity to help navigate its strategic growth was the perfect fit,” said Butler. “Cresco Labs is reimagining the way consumers and patients look at the cannabis industry, and I’m excited to be part of its extraordinary mission and enhance the impact the company has already made.

Industries Booming Since Marijuana Legalization

The marijuana industry has been growing steadily since its legalization in the United States, with more than 75% increase in sales, and contributing greatly to the economy of this nation. To date 11 states have legalized marijuana for recreational use and other 33 have authorized cannabis for medicinal use.

Legalization has seen the creation of a diverse range of companies related to the production and distribution of marijuana, driving the creation of hundreds of thousands of new jobs. Some of the industries that have directly benefited the most from marijuana legalization include farms that grow the plant, to the dispensaries that sell its many product forms, as well as various distribution channels, including delivery services.

Below are some of the popular industries that have developed since marijuana was legalized.

Farms

Before marijuana legalization, farmers used to practice secret-indoor farming which consumed much energy. This is now changing since they can freely grow the plant outdoors and utilize the power of the sun. Farming legally has enabled this industry to take advantage of traditional farming practices such as irrigation and multi-farming. Legalization has enabled farmers to practice quality control, including the use of organic fertilizers and eco-friendly growing methodologies.  These innovations improve productivity and improve the marketplace, reducing demand for marijuana black markets.

Dispensaries

Following the legalization of marijuana in some states, dispensaries selling cannabis have mushroomed nationwide. As earlier mentioned, many people have secured employment in these dispensaries including young people, thus reducing the crime rate in towns due to joblessness.

Legal dispensary owners have had to advance their marketing strategies to compete in this legal market. This means that if you desire to venture in this business, you will need more than the investment capital and the proper licenses, you will be required to create a compelling retail experience, and a differentiated brand.  Dispensaries need to stock their shelves with the right products for their local customers and offer the best customer service.

Delivery Services

Dozens of new cannabis delivery services have sprouted all over the country, thanks to legalization. Initial cannabis laws featured restrictions concerning the sale, use, marketing of marijuana, and licensees could not freely make deliveries to their clients.

In recent years, however, several legal states have amended their regulations to allow for home delivery, and this has helped improve customer satisfaction as well as retention.

Manufacturing Industry

The manufacturing industry has been a huge beneficiary of cannabis legalization. Marijuana is no longer just a smokeable product. Cannabis, once its active ingredients are extracted or distilled,  can be infused into a wide range of products — ranging from beauty lotions and potions, wellness and nutraceuticals, food and beverages, sweets and savories.

Wrap Up

The legalization of marijuana for both medical and recreational use has transformed a once cottage industry into big business. Investors are rushing into the cannabis markets, along with entrepreneurs intoxicated with the endless opportunities the Green Rush has presented. Cannabis legalization is driving the growth of a number of ancillary and adjacent industries, and industry analysts expect its current growth to continue to expand for decades to come.

 

Eaze Launches Momentum Cannabis Business Accelerator

Program includes ten entrepreneurs; $50,000 grants; ten weeks of business-development courses; marketing and retail resources; access to industry-defining investors

CALIFORNIA: Cannabis marketplace Eaze and partners Ultranative and Bail Capital today announced the launch of Momentum, a business accelerator to cultivate the growth and success of underrepresented cannabis business founders. Access to capital is one of many enormous barriers for new entrepreneurs in the cannabis industry. The Momentum program is a small but important step in addressing that issue.

The inaugural class will include ten participants who will receive a $50,000 grant; participate in a ten-week education program led by 40 industry volunteer experts; and have access to Eaze’s ecosystem of business, marketing and retailer resources. At Momentum’s conclusion, participants will pitch to industry-defining investors for the opportunity to raise additional funds to grow their businesses.

“Starting a new cannabis business can be especially challenging for entrepreneurs who have been historically marginalized or victimized by the War on Drugs,” said Jen Lujan, Director of Social Impact at Eaze. “All cannabis operators have a responsibility to help build a diverse and equitable industry, and Momentum is another way Eaze and our partners are supporting this important goal.”

Licensed founders — and those in the process of applying for licenses — who have faced social and economic barriers to entering the legal cannabis market are eligible to apply at Eaze.com/momentum. Applicants will be evaluated on a combination of potential for success, lived experience, and current barriers to entry. Applicants with THC businesses must be licensed through state and local jurisdictions; CBD businesses must be a part of the Federal hemp pilot program.

An advisory committee of investors, community advocates, and business leaders who have worked to create a diverse and equitable industry will evaluate applicants and choose Momentum’s participants. The committee includes:

  • Cannaclusive Co-Founder Mary Pryor
  • California Urban Partnership CEO Malaki Seku Amen
  • CEO of Make Green Go La Wanda Knox
  • Padre Mu Delivery and Distribution co-founder and SF Equity Working Group co-founder Ramon Garcia
  • Ultranative Co-Founder Ford Smith
  • Bail Capital Partner Zack Carpenter
  • Marijuana Policy Project Executive Director Steve Hawkins
  • Leune CEO Nidhi Lucky Handa

“We see a huge opportunity to partner with Momentum as part of our efforts to build a diverse industry, while providing support and resources that small businesses in the cannabis industry need to become more profitable and sustainable,” said Smith.

“Momentum creates an exciting opportunity to build and expand relationships between founders and industry leaders working together to form a strong and equitable cannabis industry. We’re honored to partner with Eaze to support unique brands, increase revenue for impacted communities, and ultimately achieve greater diversity in cannabis culture,” said Amen.

Momentum is part of Eaze’s overall commitment to addressing the impact of the War on Drugs on local communities. Eaze’s social impact work includes a partnership with Code for America to help clear 250,000 low level criminal offenses; a permanent 25% discount for U.S. veterans; and partnerships with Success Centers SF and the San Francisco AIDS project, among others. Interested Momentum applicants can find more information at Eaze.com/momentum. Program sponsors include: Ultranative, Bail Capital and Select.