CannaBNN News for Monday, September 12: Glass house acquisition of NHC Closes, Sproutly Issued Cease Trade Order, Steep Hill Closes Canadian Lab

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It’s Monday but the Cannabis industry party has been ending for longer than the weekend. Consolidations, closures, cease trading orders and decreased competition are all on the menu.

Glass House Brands Inc announce they have received all regulatory approvals for the acquisition of Natural Healing Center dispensaries. The Grover Beach and Lemoore dispensaries will be consolidated into Glass House immediately.

“It is with great pleasure and enthusiasm that I welcome the incredibly talented and hard-working staff at NHC Grover Beach and Lemoore into the Glass House Brands family,” said Kyle Kazan. “The Grover Beach and Lemoore dispensaries are the first two NHC dispensaries to be officially onboarded, and we expect to close the acquisition of the Morro Bay store in Q3 or Q4 2022, while Turlock3 is expected to close in Q4 2022 upon the store’s opening. Given NHC’s positioning in limited license markets and its strong consumer following, we are excited to be adding these 4 dispensaries to our retail portfolio. We are now poised to execute a dramatic transformation in the size of our retail dispensary business.”

Press release: https://www.newswire.ca/news-releases/glass-house-brands-closes-grover-beach-and-lemoore-natural-healing-center-dispensary-acquisitions-893314389.html

SNDL Inc has entered into an agreement of purchase with Suprette Inc and select subsidiaries to be known as the Stalking Horse Bid. The bid would set the conditions to see the acquisition of six Suprette retail locations in Ontario.

“We are excited by the opportunity to bring stability to the Superette retail business during the CCAA Proceedings,” said Zach George, Chief Executive Officer of SNDL. “The Superette team has worked tirelessly to create an immersive and differentiated experience within the cannabis community and the bid seeks to further solidify SNDL’s position as a prominent multi-banner cannabis retail operator. Through the CCAA Proceedings, we are committed to supporting Superette through the restructuring and ensuring the continuity and preservation of the Superette experience consumers have come to know and love.”

Press release: https://www.newswire.ca/news-releases/sndl-inc-enters-into-a-bid-agreement-to-acquire-superette-assets-806711645.html

Sproutly Canada Inc has been issued a Failure to File Cease Trade Orders and Revocations by the British Columbia Securities Commission. The Company has failed to file audited financial statements for the year ending February 28, 2022. The Cease Trade Order will remain in place until the Annual Filing and the Q1 Filings have been filed.

Press release: https://www.newswire.ca/news-releases/sproutly-announces-cease-trade-order-802732190.html

KRTL Holding Group Inc subsidiary KRTL Biotech has entered into an agreement with Entex Corporation and Iron Sight Industries to introduce an industry disrupting mobile extraction platform. The mobile platform addresses the inability to transport THC based products across state lines by bringing the processing platform to each state.

“We’re incredibly excited for this opportunity, a brick-and-mortar extraction lab typically takes 12-18 months to standup once all financing and vendors are in place, then it is restricted to a geographic region. If that region’s demand or supply lines dry up or become over saturated as we’ve seen happen in the Oregon and Californian markets, that’s a lot of overhead to maintain raising the risk for stakeholders,” stated Daniel Ball, CEO of KRTL. “By creating both a solution and methodology for quickly inserting into remote legalized states for hemp and cannabis production, we significantly lower stakeholder risk and maximize revenue generation potential. What’s even more powerful is that the methodologies that KRTL have developed, directly crossover to psilocybin, meaning this extraction solution can be deployed for psilocybin extraction as recreational psilocybin starts legalizing, quickly taking advantage of those early burgeoning markets – this is truly a first of its kind model.”

Press release: https://www.globenewswire.com/en/news-release/2022/09/07/2511677/0/en/KRTL-to-Launch-Proprietary-Mobile-Extraction-Technology-to-Disrupt-Cannabis-Industry.html

Steep Hill Inc has decided to close their testing facility in Scarborough, Ontario. Molecular Science Corp was one of the first cannabis purposed labs built in Canada. The closing will allow for focus on US operations.

“We are proud of our many accomplishments including having industry leading turnaround times on testing and an exemplary compliance record,” said Sameet Kanade, CEO for Steep Hill. “Steep Hill acquired MSC in 2021 and implemented measures to right-size operations with a focus on customer retention and commercial services. This effort combined with capital support resulted in improvements in terms of operational efficiency, expanded services and client growth. Over the past six months, the Canadian cannabis focused analytical testing market has suffered from significant price discounting and lab-shopping for desired results. Decreasing margins and increased operating costs of a GMP laboratory in an inflationary market have made our operations unsustainable in Canada.”

Press release: https://www.newsfilecorp.com/release/135762/Steep-Hill-Inc.-to-Close-Canadian-Lab-and-Focus-on-US-Operations

Optimi Health Corp is thrilled to have completed what it believes to the largest legal psilocybin harvest in Canadian history. The company is pleased their investment in state-of-the-art cultivation operations have yielded more than 150kg of Panaeolas cyanescens and Psilocybe cubensis since May 2022.

“Our mushrooms are some of the most tested products on the planet as we cross the lines between Pharmaceutical, Agriculture, Botanical, and Food testing quality assays,” stated Optimi Chief Science Officer, Justin Kirkland. “This yield gives us the capacity and scale we need to advance our analytical schedule while also developing our product pipeline.”

Press release: https://www.globenewswire.com/en/news-release/2022/09/08/2512574/0/en/Optimi-Health-Completes-Largest-Legal-Natural-Psilocybin-Harvest-in-Canadian-History.html

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Candace Hawkins

Candace Hawkins

Candace Hawkins (she/her) is a Canadian living on the traditional lands of the Six Nations Peoples. She is a longtime advocate for medicinal cannabis and legalization.