Cannabis Professional’s daily roundup of industry news. View archive here.
MediPharm files statement of claim against unnamed LP seeking $9.8-million
Extraction company MediPharm Labs Corp. has filed a statement of claim against an unnamed licensed producer in the Ontario Superior Court, the company said on Friday after market close. The claim relates to an outstanding payment of approximately $9.8-million from a white label partner, MediPharm said.
The company did not name the LP, but pointed to a news release from February 2019, where it announced a large oil supply deal. The February release said that “a leading Licensed Producer” had agreed to buy approximately $35-million worth of cannabis oil concentrates from MediPharm over a 12 month period.
– Mark Rendell
High Tide buys out Canna Cabana store in Hamilton
High Tide Inc. has paid $2.1-million in cash and roughly $1-million in stock to acquire one of its franchise stores in Hamilton, Ont. The store in question was owned by one of the winners of Ontario’s first cannabis retail licence lottery, held in January 2019. Prior to the acquisition, High Tide had a licensing agreement with the owner of the store for the use High Tide’s Canna Cabana brand.
The sale is possible due to a relaxation of ownership transfer rules for retail stores in Ontario. Prior to December, lottery winners were not allowed to sell their licences, although many signed franchise or licensing agreements with larger cannabis retail chains. This rule was lifted last month, allowing the retail chains to buy out their franchise partners.
“The Hamilton store has a strong operating history with unaudited gross sales exceeding $14 million for the nine months since opening on April 20, 2019, with gross margins of approximately 28 per cent,” High Tide said in a statement.
- Mark Rendell
Cova to begin offering Fire & Flower’s e-commerce software
Point-of-sale system Cova Software Solutions Inc. will begin offering “click and collect” e-commerce services through Fire & Flower Holding Corp.’s digital platform Hifyre TM Inc. The strategic licensing agreement, announced Monday, will give retail stores using Cova’s POS system access to Hifyre’s suite of e-commerce products, including click-and-collect software and an e-commerce membership program for consumers called Spark Perks.
“This strategic agreement will allow Cova to rapidly deploy ‘click-and-collect’ service to customers in the Ontario market, given the province’s recent announcement of permitting this service,” said Cova chief executive Gary Cohen in a statement.
- Mark Rendell
TerrAscend terminates $33.5-million takeover of Nevada cannabis company
TerrAscend Corp. has terminated plans to acquire Nevada cannabis company Gravitas Nevada Ltd. for $33.5 million in cash and 625 proportional voting shares. The deal was originally announced in February 2019.
“TerrAscend has paid a $3mm reverse termination fee to the sellers, which had been placed in escrow in June of 2019. As part of the termination, the Company is no longer liable for the remaining $30.5mm and proportionate voting shares in the equity of TerrAscend equivalent to 625,000 common shares of the Company,” TerrAscend said in a statement.
“TerrAscend has agreed to continue licensing The Apothecarium, State Flower and Valhalla names and related intellectual property to Gravitas and its related operations in Nevada, pursuant to such final terms as will be mutually agreed by the parties,” it added.
The failed takeover is the latest in a string of U.S. cannabis deals to collapse.
- Mark Rendell