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Welcome to Cultivated, our weekly publication the place we’re bringing you an inside take a look at the offers, tendencies, and personalities driving the multibillion-dollar world hashish increase.
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Hiya all,
You are catching us writing this text from residence this week as all of Enterprise Insider has began WFH. Here is your every day reminder to clean your arms and moisturize.
This week Jeremy obtained the news on MedMen’s quiet cuts to 128 positions in February after digging by means of the corporate’s securities filings. That brings our ongoing file of layoffs within the hashish business to over 2,800 folks. Jeremy additionally obtained the news on a key government departing vape and equipment firm Greenlane Holdings, which laid off 31 workers in February.
In the meantime, Yeji talked to 5 edibles firms eyeing the two.zero business in Canada and profiled California-based Stream Kana. Stream Kana stated it is planning to boost one other spherical of funding quickly, given the troublesome instances within the business.
Whereas hashish information is actually not of essential significance in these making an attempt instances, we’ll nonetheless be working full-time to maintain you all up to date. On that entrance, we’ll take a look at how the business is making ready for — and reeling from — the pandemic subsequent week.
And we’re nonetheless open for ideas — you’ll find one of the best methods to succeed in us on the backside of this text.
Keep secure on the market, everybody.
-Jeremy and Yeji
Here is what we wrote about this week:
Canada’s hashish market could balloon to $2.eight billion this yr. Regardless of strict packaging guidelines, prime edibles firms say they’re racing to get a foot within the door.
The packaging on Canadian hashish edibles is much from enticing. It is plastered with yellow health-warning labels and prohibited from having photos or fluorescent colours.
However that hasn’t stopped a few of the hottest US edibles manufacturers from saying they nonetheless discover the market enticing. Enterprise Insider talked to CEOs at 5 edibles firms within the midst of setting their methods for the Canadian market.
Embattled hashish retailer MedMen quietly terminated 128 folks in February, filings reveal
MedMen terminated 128 workers and made 15 new hires in February, for a web lack of 113 jobs, based on a securities submitting reviewed by Enterprise Insider.
The layoffs come amid a months-long restructuring plan put into place by the corporate’s board and former CEO Adam Bierman, who stepped down from his function on February 1. MedMen has engaged a turnaround agency, FTI Consulting, to help with the method.
A key government departed cannabis-vaporizer firm Greenlane Holdings two days after the corporate laid off 31 staff
A key government at cannabis-vaporizer and equipment firm Greenlane Holdings resigned from the corporate on February 20, two days after the corporate laid off 31 workers in its Florida and California workplaces, per a securities submitting reviewed by Enterprise Insider.
The manager, former chief advertising and marketing officer Sasha Kadey, formally left the corporate on February 28, the submitting says. Kadey advised Enterprise Insider over the telephone that he’ll keep on as a strategic advisor to Greenlane for six months, targeted on brand-building.
A buzzy hashish startup that companions with native farmers within the Emerald Triangle is in search of to boost recent money from buyers
Whereas most hashish firms try to compete with the hashish growers within the Emerald triangle, Stream Kana has raised $175 million to crew up with them as an alternative.
The corporate, which is without doubt one of the hottest startups in hashish, based on buyers we surveyed, is gearing as much as elevate extra funds throughout the subsequent two quarters of this yr, based on CEO Mikey Steinmetz.
Capital raises, M&A exercise, partnerships, and launches
- Tilray introduced on Friday the pricing of a $90.four million registered providing, with Canaccord Genuity appearing as the only real bookrunner. Tilray’s inventory has dropped 32% on Friday.
- Cover Progress is lending TerrAscend $80.5 million (CAD) to fund TerrAscend’s Canadian operations.
- SōRSE Expertise acquired a part of most cancers analysis group Pascal Bioscience to develop medical trials for Pascal’s cannabinoid analysis program.
- Vireo Well being raised $10.5 million in a personal placement spherical,
Government strikes
Chart of the week
Information for Canada’s first yr of adult-use hashish exhibits three provinces main the pack. Ontario made $249.7 million from hashish gross sales within the nation’s first yr of legalization, adopted by Quebec and Alberta who made $223.9 million and $224.1 million respectively:
Shayanne Gal/Enterprise Insider
What we’re studying
Federal prosecutors examine California marijuana firms in wide-ranging probe (MarketWatch)
Does the Resort Trade Profit from Hashish Legalization? Analysis Suggests So. (Hashish Wire)
Canada defends marijuana legalization in response to worldwide skepticism (The Boston Globe)
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