There’s big “wheelings and dealings” going on in the cannabis industry this week, even as the COVID-19 pandemic continues to decimate both the country and the economy. According to a report in Marijuana Business Daily this week, a cannabis grower out of Florida, Stem Holdings signed a deal to acquire cannabis delivery company Driven Deliveries, which is located in California. The deal will create what Stem calls “the first vertically integrated cannabis company with an integrated Delivery as a Service platform.”
It was a big deal in more ways than one. According to reports the transaction was worth approximately 41.3 million Canadian dollars or $31.1 million. Driven Deliveries investors will receive one share of Stem for each share of Driven according to Marijuana Business Daily.
According to a press release issued by Stem, the new company will be called Driven by Stem. Stem expects big things from the deal, including for it to be accretive to earnings right away.
“No other cannabis company has the breadth of top-shelf brands and convenience sought by cannabis consumers which Driven By Stem will offer,” stated Adam Berk, CEO of Stem in a statement.
He continued: “We will apply Driven Deliveries’ technology, footprint, and distribution capability to all markets, and leverage our own licenses and retail dispensaries to service more consumers in every state in which we operate,” he continued. “We are excited about the unique opportunities that this combination creates as we build a better model to adapt to the changes in the cannabis marketplace and deliver shareholder value year over year.”
Cannabis stocks poised to win in PA
It’s that time of year where everyone is looking towards Pennsylvania. No, not for the upcoming presidential election, but because there have once again been rumblings about the state legalizing recreational cannabis. According to a report out in The Cannabis Investor, a number of pot stocks are set to break out big time should legalization become a reality in the Keystone State.
Pennsylvania Gov. Tom Wolf has been advocating for cannabis legalization for a few years now. As The Investor noted, he’s been trying to push the legislature to do something since at least 2018. Back then he said it should be Pennsylvania’s turn to reap the benefits of a new cannabis industry.
“More and more states are successfully implementing marijuana legalization, and we need to keep learning from their efforts,” said Wolf in 2018, according to The Cannabis Investor. “Any change would take legislation. But I think it is time for Pennsylvania to take a serious and honest look at recreational marijuana.”
Today, Wolf believes that cannabis will help the state’s economy in a post-pandemic world. “I thought last year was the right time to do it. It’s still the right time to do it, and, if anything, there’s even more urgency now because of where we are with the COVID-19 pandemic,” said Wolf, again according to The Investor. “We’ve had a real reduction in revenues.”
The Cannabis Investor notes that several companies will score big should Wolf’s dream come true, including Curaleaf (CSE: CURA) (OTCQX: CURLF), Green Industries Thumb (CSE: GTII) (OTCQX: GTBIF), Cresco Labs (CSE: CL) (OTCQX: CRLBF), Ayr Strategies (CSE: AYR.A) (OTCQX: AYRSF), and Trulieve (CSE: TRUL) (OTCQX: TCNNF).
Cannabis legalization in France hits a snag
While many in France are hopeful that cannabis will be legalized, a group of ministers is putting up resistance to the idea, vowing to block any efforts at legalization. According to a report in The Leaf Desk, “Senators representing Le Républicains jointly published an open letter this week, attacking fresh proposals to relax drugs laws that would allow citizens to cultivate and use marijuana.”
LR leader Bruno Retailleau led a group of 80 ministers who said that cannabis should be considered the same as any other drug in the country. According to Retailleau, “[t]here is no ‘soft drug’. Drugs are a poison, a plague that we must fight.”
The groups letter was devout in its opposition. “In recent weeks, some mayors have restarted the debate by saying they are ‘for’ the legalisation of cannabis,” the open letter noted.
“We, MPs and Républicains senators, would like to remind them that we are strongly against this.”