Below is a recap of the main news related to the cannabis industry and markets for the week of August 27, 2021.
The Votes At Tilray, KushCo, Greenlane
KushCo Holdings, Inc. (OTCQX: KSHB) stockholders overwhelmingly voted to approve the previously announced merger agreement with Greenlane Holdings, Inc. (NASDAQ: GNLN) at the special meeting of stockholders, with over 97% of votes cast voted in favor of the proposal. Greenlane stockholders also voted to approve the merger.
Pursuant to the terms of the merger agreement, KushCo will become a wholly-owned subsidiary of Greenlane in an all-stock, tax-free business combination.
Benzinga Cannabis’ content is now available in Spanish on El Planteo.
Meanwhile, Tilray Inc. (NASDAQ: TLRY) (TSX: TLRY)’s CEO Irwin D. Simon sent an open letter to shareholders detailing his strategic vision and $4 billion revenue plan for the company. The executive encouraged all shareholders to vote for initiatives in support of that vision and plan at Tilray’s Special Meeting of Stockholders, scheduled for September 10.
New York Getting Greener
New York’s 57th governor, Kathy Hochul — sworn into office this week after embattled Andrew Cuomo resigned — said she is ready to move on the state’s potentially multibillion-dollar legal cannabis program ASAP.
The former lieutenant governor saw the writing on the wall when she tweeted in January 2021 that “It's time to finally legalize recreational marijuana and create an equitable adult-use cannabis program that generates much-needed revenue for New York.”
And now Hochul's chance has come.
Although it’s unclear how quickly Hochul can roll out the state’s program in view of the precious little groundwork done by her predecessor, the governor has expressed her intent to move forward with the cannabis board and other appointments. The issue will be part of a private meeting to be held next week with Senate Majority Leader Andrea Stewart-Cousins, a staunch supporter of cannabis legalization.
“Nominating and confirming individuals with diverse experiences and subject matter expertise, who are representative of communities from across the state, to the Cannabis Control Board is a priority for Gov. Hochul,” the new governor’s spokesman, Jordan Bennett, told The Post.
“We look forward to working with the legislature to keep this process moving forward,” the Hochul rep said.
Also in New York, Brooklyn’s historic Medgar Evers College (MEC) will become the first City University of New York (CUNY) campus to offer a cannabis minor degree program. In the coming weeks, students will be able to choose from 13 newly developed courses to earn a cannabis degree minor in one of four different tracks. These courses are open to all students at the other of the 24 CUNY campuses via e-permits. The program, spearheaded by the MEC Cannabis Education Taskforce, is housed in the Department of Chemistry and Environmental Sciences.
Hexo’s Nasdaq Debut
HEXO Corp (TSX: HEXO) (NASDAQ: HEXO) debuted on the Nasdaq Capital Market on Tuesday.
After announcing the pricing of a previously announced overnight marketed public offering of its 47.46 million units at $2.95 per unit last week, the company's stock price plunged 28% on Friday.
Shortly after, Cantor Fitzgerald’s Pablo Zuanic lowered the stock’s price target to CA$3.40 from CA$10 to address sectoral derating, increased share count and reduced visibility while reaffirming a “Neutral” rating.
According to the company, the total proceeds of $140 million from the offering will be utilized to fund the purchase price payable to the Redecan shareholders on the closing of the acquisition and for expenditures related to its U.S. expansion plans.
The stock rebounded later in the week as HEXO reported that its shareholders approved the previously announced acquisition of family-owned Canadian cannabis producer Redecan.
In exchange, the Ottawa-based company agreed to pay $400 million in cash in addition to the issuance of 69,721,116 common shares at $7.53 per share, bringing the total consideration to $925 million.
Stocks posted mixed results this week. Over the five trading days of this week: