AG William Barr Under Fire by U.S. House

LOS ANGELES - June 29, 2020 - PRLog -- Attorney General William Barr comes under fire during a U.S. House Judiciary Committee hearing, for disproportionately investigating cannabis company mergers. DOJ attorney John Elias accused Barr of harassment inspired by personal dislike of the industry. He claimed the 10 reviews, which represented nearly a third of the antitrust division's merger investigations last year, placed unnecessary burdens on companies, citing the 682 million dollar Med Men PharmaCann deal that was terminated as a result. While many Democrats at the hearing agreed with Elias's characterization of the situation, Georgia Republican Rep. Doug Collins questioned his credibility and said the reviews were reasonable  considering unique challenges of the new industry. Barr has agreed to appear before Congress next month to dispute the allegations.

In finance, the largest publicly-traded cannabis operator in the country, Curaleaf, revises terms of a deal to acquire the largest privately-owned U.S. marijuana company, Chicago-based Grassroots. Because of a general market decline in marijuana stock prices, the original 875 million dollar value of the transaction, which was announced last year, will be amended to approximately 700 million. This includes the elimination of a 75 million dollar cash component, an increase in Curaleaf's share consideration, and plans to sell off certain Grassroots assets to comply with local license limitations. The merger will expand Curaleaf's presence through 135 dispensary licenses, 30 processing facilities, and 22 cultivation sites across 23 states.

Aurora plans to close 5 cultivation facilities and lay off approximately 700 staff members as part of their restructuring strategy. The company will consolidate production and manufacturing to their larger plants in Bradford, Whistler, and their homebase of Edmonton, as well as ramp up operations at their Nordic facility to service the Europe markets. The move follows similar closures by other major Canadian cannabis companies including Canopy, Hexo and Tilray, and is expected, along with an inventory revaluation, to improve Aurora's gross margins and ability to generate positive cash flow.

The Netherlands opens up the application process for 10 domestic cultivator slots, as part of the government-led adult-use cannabis experiment approved in 2019. The four-year program will allow for the sale of legal marijuana through coffee shops, which previously were supplied by the illicit market, in order to determine the most effective way to regulate the Dutch industry. Cultivation permits will only be available to Dutch residents who meet specific requirements. Applications will be accepted through July, with the selection process expected to take up to six months.

Written by Jacqui Verdura and Micah Tatum

https://youtu.be/98m46kuWcfU