CBS generated a lot of buzz by just saying no to a Super Bowl ad trumpeting the benefits of medical marijuana, and of course, #BecauseFlorida, there’s a connection to the Sunshine State.
Acreage Holdings, the Canadian-based MMJ company backed by former Speaker of the House John Boehner, was willing to pay $5 million for a 60-second ad, according to reports. But CBS put the ixnay on the spot.
But the Super Bowl kerfuffle isn’t the only news Acreage made this month.
Acreage Holdings paid $63 million — in CASH $$$$ — to acquire Nature’s Way Nursery of Miami, Inc., also known as Green Owl Pharms, according to a press release issued by the company.
“The combination of policy and demographics in Florida makes it one of the largest growth cannabis markets in the U.S. and we could not be more pleased to close this deal,” said Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage. With the fourth largest population in the U.S., Florida is expected to quickly become the fifth largest cannabis market with an estimated $1.1 billion in retail cannabis sales by 2022, according to Arcview Market Research.
It’s worth noting that Green Owl hasn’t started selling anything yet, and according to the latest update from OMMU, hasn’t even started cultivating cannabis.
Nature’s Way sued the state failing to get a license way back when from what’s now the Office of Medical Marijuana Use. But, after an administrative law judge scorched the state for using a flawed system to decide which applicants were granted the coveted licenses, the Department of Health settled with Nature’s Way in July and granted them a license.
More from the Jan. 4 press release announcing Acreage — whose legal team includes Florida regulatory whiz John Lockwood — had closed on the Nature’s Way deal:
Acreage paid the shareholders of Nature’s Way $67 million plus assumption of certain transaction expenses of the sellers, with $63 million payable in cash, of which $10 million had previously been escrowed in November at the time the parties signed the definitive transaction agreement. The remaining $4 million in consideration will be paid in units of a subsidiary of Acreage, High Street Capital Partners, LLC. The units are exchangeable for Subordinate Voting Shares of Acreage at the election of the holder.
Nature’s Way holds a vertically integrated operating license to operate a cultivation and processing facility as well as up to 30 medical cannabis dispensaries, which Acreage anticipates will carry The Botanist retail banner and soon-to-launch cannabis products. Acreage anticipates that it will invest significant financial capital throughout Florida to build out its cultivation and retail operations.
Acreage already operates in more than a dozen states, including Colorado, California and Massachusetts, according to the company’s website.
The pot license sales keep coming, despite a decided shift in attitude toward MMJ from new Gov. Ron DeSantis, who quickly made separated himself from his predecessor, U.S. Sen. Rick Scott. DeSantis blamed lawmakers for creating “cartels” through the state’s current vertical-integration system, and has given them until mid-March to do away with a ban on smoking medical marijuana.