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May 17, 2019

CCC holds off on approving Sira Naturals' acquisition

Photo | Matt Wright Sira Naturals CEO Michael Dundas inspects a plant in the company's Milford grow room.

The acquisition of Milford marijuana company Sira Naturals by a Canadian investment group will have to wait, as the Massachusetts Cannabis Control Commission opted to ask for additional information at its Thursday meeting.

According to CCC staff, no background checks or suitability issues were found and both Sira Naturals and Cannabis Strategies Acquisition Corp. told the CCC there were no investor agreements or management contracts, indicating the combined entity would not exceed the state’s cap on retail or cultivation licenses.

However, that wasn’t enough for Commissioner Shaleen Title, who requested all documents related to the transaction. 

The commission opted to look into hiring outside help to review the transactions as staff work on the backlog of license applications.

CSAC, along with a host of other subsidiaries, announced in October the planned acquisition of Sira Naturals and four other cannabis operators elsewhere in the U.S. 

On Thursday, CSAC said in filings with Canadian regulators it intends to comply with the request and provide the documents.

The exact purchase price of Sira Naturals is unclear, but CSAC said in October it was spending $76 million in cash, issuing 7.6 million in Class B shares and $43.7 million in promissory notes to acquire the five firms. 

Along with the Milford cultivation and manufacturing facility -- the site of a proposed expansion -- Sira controls three medical dispensaries in Needham, Cambridge and Somerville.

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