The Week In Cannabis: PharmaCann Could IPO, Tilray & MedMen, First Black CEO At Major Public Co. And More

Below is a recap of the main news related to the cannabis industry and markets for the week of August 20, 2021.

PharmaCann Could IPO Soon

One of the largest private cannabis companies in the world could soon go public on the OTC Markets with a valuation of more than $1 billion.

According to a report from Reuters, PharmaCann could IPO as soon as next fall, as it looks to raise funds ahead of New York’s adult-use cannabis program’s debut. Some of the sources indicated other options are still being considered, though.

Sources also mentioned PharmaCann would likely seek to list in Canada, following the steps of its competitor Ascend Wellness Holdings Inc (OTC: AAWH), which made its public debut in May and is already valued at almost $2 billion, after a surge of more than 35% in its stock price since opening.

Tilray’s Position In MedMen Convertible Notes

Tilray, Inc. (NASDAQ: TLRY) acquired the majority of the outstanding senior secured convertible notes of MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF), which were originally held by certain funds affiliated with Gotham Green Partners, LLC and others. The transaction is valued at $165.8 million.

Benzinga Cannabis’ content is now available in Spanish on El Planteo.

What’s In It For Tilray? For starters, the investment provides Tilray with a potential accelerated path into the U.S. cannabis market upon federal legalization via a significant equity position in MedMen through conversion of the notes and the ability to exercise associated warrants.

Many believe federal cannabis legalization could happen sooner rather than later and Tilray’s chairman and CEO Irwin D. Simon is among them.

Following the news Cantor Fitzgerald’s Pablo Zuanic reiterated an ‘Overweight’ rating on Tilray’s stock, keeping the price target of $19 unchanged. 

The Parent Co. Appoints First Black CEO In Major Public Cannabis Company

TPCO Holding Corp. (NEO: GRAM.U) (OTCQX: GRAMF), which does business as The Parent Company, appointed Troy Datcher to serve as its new CEO, effective September 8.

Datcher's historic appointment represents the first time a Black CEO will lead a major publicly traded U.S. cannabis organization.

"I'm truly honored to be at the forefront of shaping the future of the cannabis industry with The Parent Company," Datcher said. 

HEXO Stock Plunges On $140M Public Offering Announcement Ahead Of Transfer To NASDAQ

HEXO Corp (TSX: HEXO) (NYSE: HEXO) announced the pricing of a previously announced overnight marketed public offering of its 47.46 million units at a price of $2.95 per unit.

The total proceeds from the offering amount to $140 million before deducting underwriting commissions and offering expenses.

The move follows the company’s recent announcement that it has applied to transfer its U.S. stock exchange listing from the New York Stock Exchange to the Nasdaq Stock Market. The transfer is expected to take place on Monday, Aug. 23, following Nasdaq’s approval.

Markets

Stocks traded in the red this week. Over the five trading days of this week:

  • The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 6.4%.
  • The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): tumbled 5.8%.
  • The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): fell 8.5%.
  • The Cannabis ETF (NYSE: THCX): was down 5.5%.
  • The Amplify Seymour Cannabis ETF (NYSE: CNBS): slipped 6.6%.
  • The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the week down …

Full story available on Benzinga.com

  • The ETFMG Alternative Harvest ETF (NYSE: MJ): lost 6.4%.
  • The AdvisorShares Pure Cannabis ETF (NYSE: YOLO): tumbled 5.8%.
  • The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS): fell 8.5%.
  • The Cannabis ETF (NYSE: THCX): was down 5.5%.
  • The Amplify Seymour Cannabis ETF (NYSE: CNBS): slipped 6.6%.
  • The SPDR S&P 500 ETF Trust (NYSE: SPY) closed the week down …

Full story available on Benzinga.com

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