As another month ends, the Investing News Network provides a recap of some of the most critical May developments in the public marijuana space.

Investors are gearing up for a key vote for an acquisition in the public cannabis sector. As the deadline for votes nears, two investment firms have issued statements to investors on which stance to take.

Meanwhile, in California, a newly proposed bill would allow for the implementation of cannabis banks in the state, sidestepping a federal ban on financial institutions participating in the space due to the illegality of the drug at the federal level.

California gets closer to offering banking relief

The California Senate voted in favor of Bill 51 in May, which would allow the creation of state-chartered cannabis banks.

“The bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing banking services, as defined, to cannabis businesses,” the text of the legislation indicates.

“Hopefully, it will open up the possibility of more banks serving cannabis companies in California,” Marc Adesso, veteran cannabis attorney with law firm Waller Lansden Dortch & Davis, told the Investing News Network in an email statement.

Support and concern for Acreage/Canopy deal

Two separate investment firms issued commentary to investors in May advising how to vote on Canopy Growth’s (NYSE:CGC,TSX:WEED) proposed acquisition of multi-state operator Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF).

Mick McGuire, portfolio manager for Marcato Capital Management, issued a letter to shareholders calling the deal a “value-destructive transaction.” He advised other Acreage investors to vote against it. Marcato indicated that it owns approximately 2.7 percent of Acreage shares.

“…Marcato believes it is highly imprudent for Acreage to sell itself today at the proposed valuation, with so much unlocked growth and value embedded in (Acreage),” McGuire wrote in the letter.

However, another investment firm, Cresco Capital Partners, confirmed it will vote positively for the deal as an Acreage investor.

“From an Acreage perspective, it now has 58 million shares of Canopy Growth injected in the company to continue to make strategic acquisitions and expand across the country. In an industry where capital still costs a premium, this infusion is a tremendous differentiator,” Matt Hawkins, managing partner at Cresco Capital Partners, wrote to investors, according to a report from MarketWatch.

Watch the video above for more on what happened during the month of May.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Acreage Holdings is a client of the Investing News Network. This article is not paid-for content.

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or “the Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced the hiring of CPG industry veteran Ty Gent as the Company’s new Chief Operating Officer (“COO”). As COO, Gent will be responsible for operational consistency and efficiency across markets and implementation of structural enhancements to facilitate scaling.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005322/en/

Keep reading... Show less

HempFusion Wellness Inc. (TSX:CBD.U) (“ HempFusion ” or the “ Company ”), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, is pleased to announce that its wholly owned subsidiary, Probulin Probiotics, LLC (“ Probulin ”), has increased its product selection in certain brick and mortar locations and expanded its distribution on Amazon through a unique eCommerce store within the Amazon platform. The broader product selection is available in major brick and mortar stores including Sprouts and Fresh Thyme and includes the Company’s new Probulin Total Care Immune product.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005411/en/

Keep reading... Show less

 MustGrow Biologics Corp. (CSE: MGRO) (OTCQB: MGROF) (FSE: 0C0) (the “Company”, “MustGrow”) is pleased to report third party confirmatory studies that the active ingredient in MustGrow’s mustard plant-based technology, Allyl Isothiocyanate (“AITC”), has a positive impact on soil health, contributing to the environmental and ecological security of both our plant-based food supply and the planet. Application of natural AITC returns organic plant material to the soil through its pre-plant treatment process as a potential alternative to using synthetic chemicals.

Soil micro-organisms play an important role in soil fertility and plant health, contributing to natural soil processes including the formation of organic matter and nutrient transformation. Human activities, including chemical pesticide use, can adversely impact the soil microbial diversity and structure.

Keep reading... Show less

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that its subsidiary CannaCure Corp. (“CannaCure”) has entered into a binding letter of intent with Entourage Participações S.A. (“Entourage Phytolab”) for a three-year extraction and finished product supply agreement (the “Agreement”) for the distribution of pharmaceutical products in Brazil.

Under the terms of the Agreement, Heritage will supply to Entourage Phytolab, hemp-derived CBD dominant extract, cannabis-derived THC dominant extract, and hemp-derived CBD 25 mg softgels and cannabis-derived THC dominant 2.5 and 5.0 mg softgels.

Keep reading... Show less

Better Plant Sciences Inc. (CSE: PLNT) (OTCQB: VEGGF) (FSE: YG3) (“Better Plant”) or (the “Company”) Is pleased to announce its partially owned subsidiary NeonMind (CSE: NEON) (“NeonMind”) has common shares now trading on the Frankfurt Stock Exchange (the “FSE”) under the symbol “6UF”. As a result, NeonMind’s common shares are now cross-listed on the Canadian Securities Exchange and the FSE. Shares of Better Plant are available on the FSE under the symbol “YG3”.

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/6377/72301_betterplanta.jpg

Keep reading... Show less