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4 Important Things that Happened in the Cannabis Sector This Week

Pax Labs, HBOR, GTBIF and MDCL all make the list

Above image and header Image via iStockphoto/smartboy10

This week, both Canadian and US cannabis companies made some interesting moves to bolster operations and sales after cracks in the armor were exposed in May during a month filled with earnings reports.

1.Pax Labs arrives in Canada

Four LPs – Aphria APHA, Aurora Cannabis ACB, Supreme Cannabis SPRWF and Organigram OGI – are partnering with Pax Labs, the currently private vaporization technology and device maker (although most signs point to them going public in 2020), for a launch of the Pax Era pen-and-pod system. The partnership will bring some of the most precise and popular cannabis vaporizing tech to the Canadian market and these cannabis heavyweights are apparently going to offer unique products through the Pax Era system.

“We have been working hard to ensure Canadian consumers will be able to enjoy quality cannabis concentrates in a convenient pod-format,” said Tim Pellerin, Canadian General Manager, PAX. “That is why we are excited to launch our immersive PAX Era experience with quality products from four powerhouse cannabis companies. As the market grows, we will continue to bring on more brand partners, offering our consumers a selection of products on the PAX Era platform.”

2. Harborside Starts trading on the CSE Monday under the ticker HBOR

“Few cannabis companies in the U.S. or Canada have the legacy and track record of success that Harborside has achieved over the past 12 years,” Steve DeAngelo, Co-founder of Harborside and Chairman Emeritus.

Harborside is considered the largest California operator with over 29 licenses across the state. The company’s farm in Salinas, California has 40,000 square feet for nursery and cultivation, 80,000 square feet for vegetation and canopy, and 35,000 square feet for production and processing. Additionally, Harborside has two open retail locations in California, one in Oakland and one in San Jose. Two additional dispensaries are under construction and slated to open in the first quarter of next year, including one in San Leandro and one in Desert Hot Springs.

“The start of trading represents a significant milestone for Harborside, and we’re grateful for the support that we’ve received from the CSE throughout the process. We’re excited to move forward as a public company, with a vehicle that attracts growth capital from new investors, and continue maintaining Harborside’s status as California’s premier cannabis operator,” said Andrew Berman, CEO of Harborside.

3. Green Thumb Industries closes large acquisition

Green Thumb Industries GTBIF closes $290 Million acquisition of Integral Associates, which brings with a large collection of assets most notably three stores on the Las Vegas Strip. The total haul is eight retail operations in Nevada, a West Hollywood retail license, a 54,000 square foot farm and cultivation facility and another Nevada 41,000 square foot processing and cultivation facility.

“We are excited to close on this transaction—it is a major win for shareholders as we scale distribution of our branded products and retail footprint in the Las Vegas market, one of the most popular tourist destinations in the world. In addition, it allows GTI to enter California with a flagship retail location,” said Ben Kovler, GTI Founder and Chief Executive Officer. “Integral Associates is an exceptional operator—it is a highly admired and respected business and adds award-winning products, significant retail market share, and healthy EBITDA to our business. This acquisition is immediately accretive and an important milestone as we position GTI to scale in one of the only limited license adult use markets.”

4. Medicine Men Strategizes in Colorado with a new farm and dispensary

With two acquisitions lined up, Medicine Men Technologies MDCL has two binding term sheets on the able with Los Sueños Farms and Purplebees’s, a leading dispensary. The deal is a move to increase manufacturing ad sales capabilities in the state for the company. Los Sueños is one of the largest sustainable farms and offer synergistic potential with the infrastructure MedMen has already set up.

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