Over the last few weeks, the U.S. House passed a bill that could pave the way for legalizing cannabis at the federal level. In fact, “the bill, which was sponsored by New York Representative Jerry Nadler, would remove marijuana from the Controlled Substances Act as the legislation is ‘long overdue legislation that would reverse decades of failed federal policies based on the criminalization of marijuana,’” as reported by Newsweek. To help get the bill through the U.S. Senate, Senate Majority Leader Chuck Schumer are reaching out to Senators to see exactly what they want in the bill. Should it pass the Senate, the bill would then go to President Biden, who would reportedly be “hard-pressed” to veto it, as also noted by Newsweek. As we near votes, some of the top companies that could benefit include Halo Collective Inc. (NEO: HALO) (OTCQX: HCANF), Canopy Growth (TSX: WEED) (NASDAQ: CGC), Tilray Inc. (NASDAQ: TLRY) (TSX: TLRY), OrganiGram Holdings (NASDAQ: OGI) (TSX: OGI), and Cresco Labs Inc. (CSE: CL) (OTC: CRLBF).
Halo Collective (NEO: HALO) (OTCQX: HCANF) Just Announced Westwood Dispensary Acquisition, Local Inspections Passed and Planned Openings
Halo Collective Inc. today announced that its Budega Westwood Dispensary passed its Los Angeles inspection and is expected to open within 30 days.
The Budega Westwood location is perfectly located nestled in between Westwood to the west and Beverly Hills to the east, right off of one of LA's most traveled and famous thoroughfares for locals and visitors, the Santa Monica Boulevard (10461 Santa Monica Blvd) and within two miles of the University of Los Angeles California campus. The facility is leased and near complete with renovations of its approximately 1,500 square foot prime retail space with the potential to expand the site to up to 3,000 square feet.
On Friday, March 31, 2022, Budega Westwood successfully passed the local Department of Cannabis Regulation formal site inspection and has been approved to proceed with the final state license review citing no violations. Budega Westwood is now into final state licensing administrative review and once opened will mark the second of three planned Los Angeles dispensaries following the opening of the Company's first dispensary in the Arts District of North Hollywood in March 2022.
Budega Westwood will follow the retail cadence of NOHO by continuing to offer our vast product assortment exceeding 1,000 SKUs, including many top-tier California brands such as Jungle Boys, Jeeter, Cookies, and Kiva as well highlight Budega's vertically integrated line of branded products, which remain amongst the top selling SKU's at Budega NOHO. In addition, the store will also stock Halo's Hush™ branded cartridges, gummies, and pre-rolls. The store plans to operate Monday through Sunday from 7 a.m. to 10 p.m. Visit www.budega.com for more information or to place your order online.
Update NoHo-Budega
It is with great pride that we announce our introduction into southern California's retail cannabis market is proving to be successful. By means of analyzing internal reports, guest feedback and participation in our various proprietary programs and through measurement of both the customer frequency and sales trajectory, our NoHo location is exceeding the initial internal estimates for financial performance. Our emphasis on creative market share capture, development of trend setting customer loyalty programs and our front line execution, combined with a strong product assortment and service standards validates that cannabis consumers are receptive to the different experience that we are delivering and making Budega the place to shop, work and transact for locals and visitors.
“The expansion of our Budega concept furthers our presence in the fast-growing, under-served California market,” commented Kiran Sidhu, Halo’s Chief Executive Officer. “We have put significant effort into building a differentiated retail concept, creating a superior experience for our customers with a wide variety of high-quality products to serve discerning consumers and meet any need. We expect the Budega brand to achieve a leadership position amongst cannabis dispensaries,” stated Kiran Sidhu, CEO of Halo.
California is the highest-grossing state for cannabis retail sales in the United States, with legal retail sales of $5.2 billion in 2021, up 17% from 2020. California is projected to gross $7 billion by 2025. California is the largest legal cannabis market in the United States and is less saturated than other mature retail markets. In Los Angeles County, there are approximately 250 licenses for a population of 3.9 million across 500 square miles, compared to Oregon, which has 4.3 million people and approximately 800 stores across 98,466 square miles. There are roughly two licenses per 100,000 people in California, one of the lowest rates in the nation among states that support legal recreational sales. By comparison, Oregon has 18 retail shops for every 100,000 residents. Colorado boasts a similar ratio, and Washington state's rate is more than triple California's.
As Halo continues to implement its seed-to-sale verticalization strategy, owning and operating retail businesses, particularly in California, is key to increasing value by controlling distribution and adding operating margin. As such, the closing and acquisition of 66 ⅔% of the Westwood Los Angeles dispensary businesses and previously 100% of its respective management company marks another milestone.
Westwood Transaction Details
Further to its press release dated February 6, 2021, the Company has completed the acquisition of all of the issued and outstanding membership interests of ZXC11 Company Majority Member (approved social equity applicant which owns 66 ⅔% of ZXC11 LLC) in a strategic move to further the Company's presence in California's growing cannabis market.
A subsidiary of PSG Coastal LLC merged with the limited liability company that owns 66 ⅔% of ZXC11. ZXC11 Company Majority Member survived, and PSG, as a result, owns 100% of ZXC11 Company Majority Member. The other 33 1/3% of ZXC11 continues to be owned by the social equity applicant (which is required under the DCR regulations).
The consideration payable by Halo in connection with this merger is an aggregate of 390,769 Halo shares, issuable as follows:
- 236,903 Halo shares were issued on March 2, 2021 as a non-refundable pre-closing deposit upon acceptance of the transaction by NEO Exchange, of which 168,519 will be subject to the Pooling Agreement; and
- 153,865 Halo shares were issued at the closing of the merger.
The merger agreement includes customary representations and warranties, closing conditions, and indemnification provisions. In addition, upon closing, Halo issued an aggregate of 11,539 Halo shares to an arm's length party as a finder's fee, and such shares will be subject to a statutory hold period of four months and one day.
Other related developments from around the markets include:
Canopy Growth, a world-leading diversified cannabis, hemp, and cannabis device company, is unveiling its 7ACRES Know the Grow content series, providing Canadians with an inside look at the talent, genetics and grow techniques behind the brand and flower portfolio. The ten-video series is broken into three chapters: the 7ACRES Kincardine Facility, Growing Techniques, and 7ACRES Craft Collective + Future Vision, with each episode diving into a different element of production. The series launched in mid-February and releases a new episode weekly via the 7ACRES.com blog, The Stash, as well as on the 7ACRES Instagram channel, @7acresmj.
Tilray Inc. reported financial results for the third fiscal quarter ended February 28, 2022. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer, stated, “Our third quarter results reflect progress and momentum across all of our key business segments and geographies, setting the stage to achieve our target for $4B in revenue by the end of fiscal 2024. Tilray Medical – which now operates under a cohesive strategy and mission – has a near 20% share in Germany, providing clear benefits in its own right as well as a first-mover advantage that we will leverage as Germany and the EU move towards broader adult-use and medical use legalization. In Canada, we maintained our leading market share position amid intense competition – and believe that our strong capital position, operational excellence and pricing and marketing adjustments will work in concert to help ensure we reclaim share in the coming quarters. This effort will gain further support from the fundamental appeal of our brands and product innovation which, as stores continue re-opening, will resonate powerfully with consumers. In the U.S., our SweetWater Brewing, Breckenridge Distillery, and Manitoba Harvest businesses are profitable, growing and emerging as nationwide, iconic brands with loyal followings that will be home to THC-based products upon U.S. federal legalization.”
OrganiGram Holdings, the parent company of Organigram Inc., a leading licensed producer of cannabis, announced it will report earnings results for its second quarter 2022 ended February 28, 2022 on Tuesday, April 12, 2022 before market open.
Cresco Labs Inc. and Columbia Care Inc. have entered into a definitive arrangement agreement pursuant to which Cresco Labs will acquire all of the issued and outstanding shares of Columbia Care. Subject to customary closing conditions and necessary regulatory approvals, the Transaction is expected to close in the fourth quarter of 2022.Under the terms of the Arrangement Agreement, shareholders of Columbia Care will receive 0.5579 of a subordinate voting share of Cresco Labs for each Columbia Care common share (or equivalent) held, subject to adjustment representing total consideration enterprise value of approximately US$2.0 billion based on the closing price of Cresco Labs Shares on the Canadian Securities Exchange as of March 22, 2022.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Halo Collective Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Halo Collective Inc. Click here for disclaimer.
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