MTech, an acquisitions firm that went completed a $50-million IPO earlier this year, announced Oct. 11 that it had entered into a definitive merger agreement with MJ Freeway LLC, a seed-to-sale data tracking business with a footprint in 11 countries and TK U.S. states. The resulting, as-yet-unnamed company will be listed on the Nasdaq.

 

All told, the new company will be debt-free and will boast more than $60 million in balance sheet cash.

 

Cannabis Business Times spoke with MJ Freeway co-founder and CEO Jessica Billingsley, who said the deal opens up a spectrum of possibilities at a time when the fragmented cannabis industry is taking on global marketplace aspirations.

 

“This gives us a position of strength in terms of the balance sheet that we’ll have available to us to execute our strategy and to really make sure that we're able to expand our product development at the rapid and extensive effort and depth that the cannabis industry requires,” Billingsley said, “as well as gives us the ability that would have been challenging previously to look at some strategic acquisitions within our states.”

 

The boards of both MTech and MJ Freeway approved this merger unanimously. The move builds off an ongoing trend of consolidation across the cannabis industry—rapidly expanded corporate structures that require more complex operational tools.

 

“It’s the big problem,” Billingsley said. “It’s why we built MJ Platform, our Generation-2 product. … We saw the need for a true ERP (Enterprise Resource Planning) for the cannabis industry, for this ability to integrate not only across the entire supply chain—which we did have in our legacy products—but really also at a true enterprise level across all facets of the business, across multiple states, multiple countries, multiple countries, and still have that executive dashboard view.”

 

Just last month, MJ Freeway announced Ruth Ann Kraemer as new CFO. In a public statement at the time, she said. "I'm pleased to join the team at such a promising time in the company's development. MJ Freeway is uniquely positioned to continue thriving in the growing cannabis market and I look forward to working with its Board and Management team to help scale the business and develop long-term value." 

 

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LONDON — Doctors in Britain will be able to legally prescribe medicinal cannabis from Nov. 1, after two highly publicized cases of young, epileptic patients dependent on marijuana-based treatments put pressure on the government to review its policy.

The change was announced on Thursday by Home Secretary Sajid Javid, after he called for an urgent review of cannabis-based medicinal products over the summer, and his office said in July it had decided that “senior clinicians will be able to prescribe the medicines to patients with an exceptional clinical need.”

Mr. Javid said on Thursday, “Having been moved by heartbreaking cases involving sick children, it was important to me that we took swift action to help those who can benefit from medicinal cannabis.”

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MedMen has acquired Chicago-based PharmaCann, giving MedMen a presence in 12 U.S. states. In other news, Altria Group, maker of Marlboro cigarettes, has expressed interest in buying a stake in Aphria, a Canadian cannabis producer.

 

Here, we’ve rounded up the 10 headlines you need to know before this week is over.

 

Federal: Survey results released Monday by the Pew Research Center show a growing majority of Americans support ending marijuana prohibition. The national survey of 1,754 U.S. adults found 62 percent think marijuana should be made legal, while only about one-third of Americans (34 percent) think it should remain illegal. Read more

 

MedMen and Chicago-based PharmaCann LLC announced Oct. 11 that both companies have signed a binding letter of intent for MedMen to acquire PharmaCann in an all-stock transaction valued at $682 million. The resulting pro-forma company (including pending acquisitions by MedMen) will have a portfolio of cannabis licenses in 12 states that will permit the combined company to operate 79 cannabis facilities. Read more 

 

Tobacco company Altria Group is reportedly considering buying a stake in Canadian cannabis producer Aphria. Canada's Globe and Mail cited multiple unidentified sources in reporting Altria, maker of Marlboro cigarettes, had expressed an interest in acquiring a minority piece of the marijuana producer, although details of the investment are still being worked out. Read more

 

Wisconsin: Wisconsin's Controlled Substances Board passed an order Oct. 9 to schedule the drug Epidiolex and any similar drugs containing cannabidiol approved by the U.S. Food and Drug Administration as a schedule V controlled substance. Epidiolex is a medication containing CBD that has been approved to treat seizures. Read more

 

California: Law enforcement agencies from across California have urged the Bureau of Cannabis Control to amend proposed regulations that allow marijuana to be delivered anywhere in California.  The proposed regulations would permit delivery of recreational cannabis from jurisdictions that have banned such sales. Read more

 

Gov. Jerry Brown has signed a law that prohibits the sale of cocktails and beverages infused with cannabis. Since 2015, Los Angeles restaurants and bars began adding CBD to cocktail menus. Read more

 

The Calaveras County Board of Supervisors voted down a move that would have authorized the county to refund growers who paid $5,000 and in some cases $10,000 in registration fees. “I would like to see an independent accounting of costs associated with the Urgency Ordinance so we can have a complete view before the Board would consider this matter on its merits,” said District 4 Supervisor Dennis Mills, in opposition to the transfer. Read more

 

Pennsylvania: The Pennsylvania House Judiciary Committee voted in favor of a bill that would downgrade penalties for possession of under 30 grams of marijuana from a third-degree misdemeanor to a summary offense that would allow up to a $300 fine and no jail time. The bill will need to be approved in both the House and the Senate before Gov. Tom Wolf will be able to sign it into law. Read more

 

Washington: The Liquor and Cannabis Board announced it would reverse its earlier approvals of marijuana-infused hard candies and gummies on the grounds that they are “especially appealing to children.” The move would effectively ban the sale of most marijuana candies in the state. Read more

 

New Jersey: Democratic New Jersey lawmakers have been going over the fine points of a bill that their leaders say is the almost-final, soon-to-pass vehicle for allowing anyone 21 and older to buy and consume marijuana. After missing earlier, informal deadlines for mustering enough votes to pass a bill that Gov. Phil Murphy would sign, Senate President Stephen Sweeney maintained that his Oct. 29 deadline remains within sight. Read more

 

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Democratic New Jersey lawmakers spent part of Tuesday going over the fine points of a bill that their leaders say is the almost-final, soon-to-pass vehicle for allowing anyone 21 and older to buy and consume marijuana. After missing earlier, informal deadlines for mustering enough votes to pass a bill that Gov. Phil Murphy would sign, Senate President Stephen Sweeney maintained that his Oct. 29 deadline remains within sight.

But the two-hour session among Democratic senators was fractious by many accounts, and a bill would not pass if five or more of the 25 Democratic senators dissent and no Republican votes in favor. And there's no guarantee Murphy would sign a bill with a tax rate he deems too low, or that doesn't go far enough in redressing racial inequities in previous convictions for marijuana crimes.

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