Massachusetts licensed cannabis company Sira Naturals has been sold to Cannabis Strategies Acquisition Corp. marking the first time the state Cannabis Control Commission has approved the sale of an industry operator, according to a MassLive report. Sira operates three dispensaries and one cultivation and production facility in the Bay State.
Cannabis Control Commission Chairman Steven Hoffman indicated that regulators are keeping an eye on who holds equity in the company in an effort to ensure that no state regulations are ultimately side-stepped by the deal. Earlier this year, the Boston Globe reported that the commission was investigating whether two licensed producers had thwarted state ownership rules by holding more licenses than allowed under the rules. The report alleges that the firms used a system of shell companies to exceed the three-license limit.
The Sira deal was announced by Cannabis Strategies in October, along with the purchase of three Nevada firms – including two Canopy-owned dispensaries. The details of the purchase were not disclosed. Cannabis Strategies is based in Toronto, Ontario, Canada.
While this is the first takeover approved by Massachusetts regulators, it is not the only shakeup in the state’s industry. Last month, Vireo Health announced they had agreed to acquire Mayflower Botanicals, marking its first foray into the recreational cannabis industry. That deal still requires the approval of Massachusetts cannabis officials.
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TG is a journalist by trade and has covered cannabis industry news for Ganjapreneur.com since 2014. He teaches media studies at an upstate New York university and is also the host of the Ganjapreneur Podcast.