FFNTF Black Book Today
We will be presenting our LONG thesis on 4Front Ventures on 4/20 @ 12:30 PM EST.
Yesterday, we made several changes to our Cannabis Position monitor, including moving 4Front Ventures to the #2 ranked position. We see significant upside in FFNTF (2-3x) over the next 1-2 years, driven by strong fundamental performance. On the call, we will be walking through the changes to our position monitor our thesis on FFNTF, including a state-by-state look at the company assets base.
CLICK HERE for the webcast links and materials.
SAFE PASSED THE HOUSE
H.R. 1996 (117), The SAFE Act, which makes it easier for financial institutions to offer services to the cannabis industry passed the House on a strong bipartisan vote — 321 to 101 — Monday evening, with 106 Republicans voting in favor. Under Democratic control, the bill has a much stronger chance of being brought up for a vote in the Senate. Senate Majority Leader Chuck Schumer said he supports the cannabis banking bill but wants to move it simultaneously as comprehensive reform, which could complicate its trajectory. On the other side, a bipartisan group of 20 governors and one territorial governor is urging Congress to pass the SAFE Banking Act. "Cannabis businesses operating legally under state law are still forced to conduct business on a cash-only basis, creating a range of security risks because the drug's status with the federal government has shut companies off from traditional banking services. The policy disconnect is not only a safety issue, the governors said, but a matter of inefficiency and unnecessary costs to taxpayers."
JUSHF Enters MA
Jushi Holdings Inc. announced that it had reached a definitive binding agreement to acquire Nature’s Remedy of Massachusetts, Inc. and certain of its affiliates, a vertically integrated single state operator in Massachusetts, for total consideration of up to the US $110 million. Nature’s Remedy currently operates two retail dispensaries in Millbury, MA and Tyngsborough, MA, and a 50,000 sq. ft. cultivation and production facility in Lakeville, MA, with approximately 19,500 sq. ft. of high-quality indoor flower canopy and state-of-the-art extraction and manufacturing capabilities. Under the terms of the Agreement, Jushi has agreed to acquire Nature’s Remedy for an upfront payment of US$100 million. The Company has also agreed to issue up to an additional US$10.0 million in Company Shares upon the occurrence or non-occurrence of certain conditions after the closing date, bringing the total potential consideration for the Acquisition paid by the Company to US$110 million. The purchase price (inclusive of the full US$10.0 million of Additional Consideration) is expected to represent a multiple of approximately 4.5 to 5.0x Nature’s Remedy’s full-year 2021 EBITDA and approximately 2.9 to 3.2x Nature’s Remedy’s full-year 2022 EBITDA.
