Biden is in no rush
The president has said that he wants to end criminal penalties and expand medical research regarding marijuana but doesn’t support full legalization. Vice President Kamala Harris was a sponsor of the Senate version of the bill the House passed the last session. Biden has nominated California Attorney General Xavier Becerra, a supporter of marijuana legalization, to be his Health and Human Services secretary. Under Becerra’s leadership, HHS could amend its 2015 stance that said marijuana has no medicinal benefits. Attorney General Merrick Garland could play an even more central role in determining federal marijuana policy. During a confirmation hearing last month, Garland argued that cracking down on state-legal marijuana markets wouldn’t be a wise use of limited federal resources. Biden has not commented on whether Mexican legalization would change Biden’s stance.
Aurora Cannabis greenhouse for sale (ACB)
Aurora Cannabis has put its Medicine Hat, Alberta greenhouse on the market. The greenhouse is one of the most expensive greenhouses ever built to grow marijuana. Aurora has invested $205M in the 1.7M square foot complex. Any buyer would likely need to invest several million more to achieve its original purpose to be a state-of-the-art medical grade greenhouse. Canadian cannabis companies wildly overspent on cultivation construction from 2017 to 2019. Now the industry is retreating from mass-scale cannabis greenhouses. Many greenhouse projects led to millions of dollars in real estate losses and billions of dollars of inventory write-downs. Last year Aurora sold its greenhouse in Exeter, Ontario, for half of its $13.6M asking price and one-third of the purchase price. Earlier in the week, the company filed a prospectus to raise up to $1B by issuing new securities over the next 25 months. In comparison, AppHarvest's (APPH) vertical grow tomato facility, the largest of its kind, is 2.7M square feet.
Verano
Verano Holdings Corp. (CSE: VRNO) t has completed its bought deal private placement offering of special warrants for gross proceeds of C$100,035,000. According to the Offering, the Company issued 3,510,000 Special Warrants at $28.50 per Special Warrant. Each Special Warrant will entitle its holder to receive, for no additional consideration, and subject to adjustment, one (1) class A subordinate voting share of the Company upon the deemed exercise thereof under the terms of the special warrant indenture governing the Special Warrants. The Offering's net proceeds are expected to be used for acquisitions, working capital, and general corporate purposes. “Verano has sustained significant growth since its inception, driven by a combination of organic and acquisitive engagements,” said George Archos, Co-Founder, and CEO of Verano. “The closing of this financing will support our focused strategy of deepening our presence, across our footprint, to achieve market-leading positions. We are very appreciative of the backing from our syndicate partners and shareholders, as well as grateful for the confidence in our team and collective vision going forward.”
