Our Cannabis Industry Group would like to thank our clients—major cannabis market leaders—for yet another successful month, trusting us to close several notable and newsworthy deals across various practice areas and industries in November 2024. Our team of dedicated attorneys provided strategic counsel on complex transactions, including banking and finance, mergers and acquisitions, workouts and receiverships, and public securities, showcasing our commitment to delivering exceptional results for our clients. These achievements underscore the strong partnerships we have with our clients, as well as our firm’s extensive experience and collaborative approach to navigating intricate legal and business landscapes while servicing major market leaders in the cannabis industry.
The following list of transactions closed in November reflects the trust our clients place in us to support their goals, and we are thankful for their partnership.
$40M Secured Facility from Needam Bank to Curaleaf. A Blank Rome team represented Needham Bank in connection with its $40 million revolving line of credit facility to Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), a leading international cultivator, manufacturer, and retailer of consumer cannabis products, which closed on November 6, 2024. The line of credit is secured by real property located in Ohio, Maryland, and Florida, as well as by a first-priority security interest in the business assets of Curaleaf’s operating subsidiaries. The facility operates as a cost-savings measure for Curaleaf permitting them greater access to capital for general corporate purposes and working capital. The Blank Rome team was led by Frank A. Segall, chair of the Cannabis Industry Group, along with partners Caitlin Barrett and Carol Gerson, and senior associate Gustav Stickley.
Curaleaf Secures New $40 Million Revolving Credit Facility
Sale of Leaf Trade, Inc. to LeafLink, Inc. A Blank Rome team represented Leaf Trade and its parent, High Tech Holdings, Inc., in the sale of Leaf Trade, Inc. to LeafLink, Inc., which closed on November 26, 2024. Leaf Trade, a business-to-business (“B2B”) platform connecting cannabis wholesalers and retailers, will allow LeafLink to now offer a full spectrum of marketplace offerings and industry-leading tools from small brands and retailers to multistate operators or MSOs. High Tech Holdings will continue to operate under its other subsidiary, Sweed, which is a cannabis retail management platform that combines point of sale, ecommerce, and marketing and loyalty solutions. The Blank Rome team was led by Frank A. Segall, chair of the Cannabis Industry Group, along with partners Mark Manning and Rodney Bedow and senior associate Marc Polito.
LeafLink Acquires Wholesale Marketplace Leaf Trade
Financing to Agrify Corporation from Green Thumb Industries. A Blank Rome team represented Agrify Corporation (Nasdaq: AGFY), a leading provider of innovative cultivation and extraction solutions for the cannabis industry, in its financing procurement of a $20 million convertible secured note from Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries, which closed on November 5, 2024. Concurrent with the financing, Ben Kovler was appointed to the roles of Agrify’s Chairman and Interim CEO following Raymond Chang’s resignation. The Blank Rome team was led by Frank A. Segall, chair of the Cannabis Industry Group, and partner Rob Pettit along with senior associate Austin Abir.
Agrify Secures Financing from Green Thumb Industries and Announces New Leadership
Sale of Assets of The Source to Deep Roots Harvest. A Blank Rome team represented a secured creditor of The Source in connection with a successful receivership of The Source resulting in a sale of a portfolio of retail, distribution, and cultivation assets of The Source located in Nevada to Deep Roots Harvest, which closed on November 4, 2024. The Source had been operating under the appointment of a receiver since July 2023 and began marketing the assets of The Source for sale in late 2023. Following the sale, Deep Roots Harvest will become one of the largest operators in the state of Nevada. The Blank Rome team was led by Scott Moskol, co-chair of the Cannabis Industry Group, along with senior associates Lauren Forster and Marc Polito.
Deep Roots Harvest Closes on Acquisition of The Source, One of Nevada’s Largest Cannabis Operators
$10M Secured Facility from Needham Bank to Standard Wellness. A Blank Rome team represented Needham Bank in connection with a $10,080,300 term loan to Standard Wellness Holdings, LLC and certain of its operating subsidiaries, which closed on November 22, 2024. The term loan is secured by real property in Ohio, Missouri, and Utah, as well as by a security interest in all of the business assets of the loan parties. Standard Wellness is a vertically integrated cannabis company operating in multiple states throughout the country. The proceeds of the term loan were used to favorably refinance existing debt. The Blank Rome team was led by Frank A. Segall, chair of the Cannabis Industry Group, along with partners Caitlin Barrett and Carol Gerson and senior associate Gustav Stickley.
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