Here’s What You Missed in Cannabis This Week

Avant Brands JV enters agreement to acquire The Flowr Group as White House signs cannabis research act

In this week’s "Rising High," The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on an acquisition agreement, U.S. cannabis reform and a license approval.

AVANT JV ENTERS AGREEMENT TO ACQUIRE FLOWR GROUP: Avant Brands (AVBTF) announced Thursday that Avant Brands K1, an entity of which Avant owns 50% of shares, has entered into a definitive purchase agreement to acquire all of the issued and outstanding shares in the capital of The Flowr Group, a subsidiary of The Flowr Corporation (FLWPF), in connection with the Flowr Group’s proceedings under the Companies’ Creditors Arrangement Act and its related sales and investment solicitation process.

"Over the course of the last year, the Avant team has been seeking investment or acquisition opportunities which would enable us to utilize our strong balance sheet in a manner which maximizes shareholder value" said Norton Singhavon, Founder and CEO. "As a result, we are extremely pleased with the outcome of Flowr’s restructuring process, as we have always viewed their Kelowna facility as a top-tier and world class asset that would be an ideal fit for the Avant portfolio. We look forward to entering into our fiscal 2023 year with the addition of the Flowr facility and its dedicated team."

The Flowr Okanagan facility would increase Avant’s overall square footage of cultivation facilities to approximately 185,000 square feet, thereby increasing Avant’s annual production capacity by approximately 60%. The Purchase Agreement was entered into between the Purchaser, Flowr Okanagan and The Flowr Canada Holdings ULC  following completion of an auction process in connection with the SISP for the Flowr Group conducted on December 1, 2022. The purchase price payable by the Purchaser for the Purchased Shares pursuant to the Purchase Agreement shall be C$5,115,000, being equal to C$4,015,000, and common shares in the capital of Avant with a value of C$1.1M. The Transaction is expected to close within 1Q23.

WHITE HOUSE SIGNS CANNABIS RESEARCH ACT: On Friday, President Biden signed into law H.R. 8454, the "Medical Marijuana and Cannabidiol Research Expansion Act," which establishes a new registration process for conducting research on marijuana and for manufacturing marijuana products for research purposes and drug development.

DEFENSE BILL DELAYED: Additionally on Monday, Medical Marijuana’s Kyle Jaeger reported that house lawmakers have pushed back committee consideration of the National Defense Authorization Act, which advocates hoped to see advance with marijuana reform provisions included. At the same time, offices of several Republican senators met with the Department of Justice to talk about their concerns with pending cannabis banking reforms. The NDAA is being closely watched to see if it will be used as a vehicle for marijuana banking and other reform legislation, but Chairman Jim McGovern said the package is not ready yet.

PLANET 13 GETS CONSUMPTION LOUNGE APPROVAL: Planet 13 Holdings (PLNHF) announced Monday that its subsidiary MM Development Company received approval for a Nevada consumption lounge from the Nevada Cannabis Compliance Board.

The company said, “The Planet 13 Entertainment Complex will be the first of its kind space where consumers can watch products being made, purchase and consume all under one roof. This luxurious, tourist friendly lounge, close to the Las Vegas Strip is expected to elevate the already incredible Planet 13 experience.”

TRULIEVE LAUNCHES KHALIFA KUSH: Trulieve Cannabis (TCNNF) announced Tuesday the official launch of Khalifa Kush premium medical marijuana products statewide in all Trulieve Branded Pennsylvania retail locations starting Monday, December 12, 2022. This is an exclusive partnership with multi-platinum selling, GRAMMY and Golden Globe Award-nominated recording artist Wiz Khalifa. To celebrate the product launch on 12/12, a date designated as "Wiz Khalifa Day" by the Pittsburgh City Council, Wiz Khalifa will be on site at the Trulieve Pittsburgh-Squirrel Hill and Trulieve Washington locations to meet with medical marijuana patients. Khalifa Kush products are also available in Trulieve owned and operated locations in Florida and Arizona and will soon be available in Maryland.

"It’s super cool to be able to sell KK legally in Pittsburgh and because they know it’s Wiz’s, it’s going to be bomb, of course it’s gonna drive the city and the state crazy," said Wiz Khalifa. "Trulieve is the perfect partner for us because of its commitment to providing the highest quality products and best possible patient experiences."

CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Akerna (KERN), Aleafia (ALEAF), Atai Life Sciences (ATAI), Audacious (AUSAF), Aurora Cannabis (ACB), Awakn Life Sciences (AWKNF), Ayr Wellness (AYRWF), Body and Mind (BMMJ), Canopy Growth (CGC),  Cannara Biotech (LOVFF), Chicago Atlantic (REFI), Clever Leaves (CLVR), Compass Pathways (CMPS), Columbia Care (CCHWF), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos (CRON), Curaleaf (CURLF), CURE Pharmaceutical (CURR), CV Sciences (CVSI), Cybin (CYBN), Delic Holdings (DELCF), Delta 9 (DLTNF), Entourage Health (ETRGF), Fire & Flower (FFLWF), Flora Growth (FLGC), General Cannabis (CANN), Greenlane (GNLN), The Green Organic Dutchman (TGODF), Green Thumb (GTBIF), Goodness Growth (GDNSF), GrowGeneration (GRWG), Hemp (HEMP), HEXO (HEXO), High Tide (HITI), India Globalization Capital (IGC), Indiva (NDVAF), Innovative Industrial Properties (IIPR), InterCure (INCR), IM Cannabis (IMCC), Khiron (KHRNF), Wellbeing Digital (KONEF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm Labs (MEDIF), MedMen (MMNFF), Neptune Wellness  (NEPT), NewLake Capital (NLCP), Organigram (OGI), Reunion Neuroscience (REUN),  Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), Safe Harbor (SHFS), SLANG Worldwide (SLGWF), Sproutly (SRUTF), Stem Holdings (STMH), Small Pharma (DMTTF), Skye Biosciences (SKYE), SNDL (SNDL), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Tryp Therapeutics (TRYPF), The Valens Company (VLNS), Verano Holdings (VRNOF), Village Farms (VFF), Wesana Health (WSNAF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).

Keywords: cannabis, weed, stocks, marijuana, cultivation, legalization, CBD, THC, hemp, psychedelics, ketamine, psilocybin, LSD, MDMA