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Grown Rogue pushes east with planned PharmaCann acquisition. MEDFORD - Grown Rogue International Inc. announced it has taken the first steps toward the planned acquisition of PharmaCann Inc.'s New York license and assets, through the formation of Grown Rogue New York, LLC (GRNY) as a JV with a capital partner. The venture is structured as a 51/49 split and is supported by project-based financing commitments of up to $15 million. The initial agreements include an exclusivity arrangement, along with consulting, lease, and funding contracts intended to prevent significant job losses and an operational shutdown of PharmaCann's New York vertical operations during the interim period before the full transaction closes. Definitive purchase agreements are expected within four weeks, at a preliminary price of approximately $4.5 million. PharmaCann's New York holdings include the Hamptonburgh cultivation and manufacturing facility; approximately 24,000 sq. feet of indoor flower canopy, 16,000 sq. feet of light-deprivation greenhouse capacity, and substantial post-harvest and manufacturing infrastructure. The package also covers four Verilife dispensaries: two combining adult-use and medical sales in the Albany and Syracuse markets, and two medical-only locations in Buffalo and the Bronx. Those stores have averaged aggregate monthly sales of $1.7-$2 million over the past year and a half. PharmaCann, once among the largest privately held cannabis operators in the country, defaulted on lease obligations across properties in New York, Ohio, and Pennsylvania, with a March 2026 settlement with landlord Innovative Industrial Properties (IIPR) mandating the turnover of those facilities by mid-2026. Hamptonburgh production had largely stalled by early 2026 before Grown Rogue stepped in. The capital partner invested $10 million for a 49% preferred equity interest in GRNY, with Grown Rogue retaining a 51% controlling stake. An additional $5 million is accessible through a drawable term loan. During the interim period, GRNY is also extending a secured loan of up to $9 million directly to PharmaCann's New York entity to fund operations, replenish retail inventory, and restart cultivation at Hamptonburgh. Grown Rogue's Chief Strategy Officer Josh Rosen cited New York's potential supply gap [more than 700 licensed dispensaries and limited in-state indoor flower canopy] as central to the thesis, with the company projecting returns on incremental invested capital above 75%. Grown Rogue expects after-tax monthly operating cash flow from the New York assets to reach approximately $600,000 within 18 months. A full close requires regulatory approval from New York's Office of Cannabis Management (OCM). When larger operators exit distressed assets, smaller producers with tight cost discipline tend to pick them up at cents on the dollar. Grown Rogue's entry price against infrastructure that IIPR once backed with $61 million is a clear measure of how far Cannabis asset values have compressed. Project-based financing protects the parent balance sheet - a prudent call given New York's regulatory track record. The real challenge is at Hamptonburgh. Restarting cultivation after a prolonged slowdown, shifting the revenue mix toward adult-use, and maintaining retail continuity across four stores through an ownership transition. Grown Rogue's operational history in Oregon and Michigan suggests the playbook is credible. New York has a reputation for thwarting even well-structured plans, and that remains the key variable here. The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. Highly Capitalized cover capital markets, finance, branding, marketing and everything important in between. Most of all, Highly Capitalized follow the money.

Grown Rogue plans New York entry through PharmaCann license and asset acquisition. August 21, 2026 Grown Rogue International Inc. (CSE: GRIN; OTC: GRUSF) has begun a planned expansion into New York through the proposed acquisition of PharmaCann Inc.'s state cannabis license and assets, establishing a joint venture and up to $15 million in project financing to fund the transaction and restart operations. The proposed acquisition includes PharmaCann's Hamptonburgh cultivation and manufacturing facility and four Verilife dispensaries. The production site has approximately 24,000 square feet of indoor flower canopy, 16,000 square feet of light-deprivation greenhouse flower canopy and substantial manufacturing and post-harvest infrastructure. Grown Rogue formed Grown Rogue New York LLC, or GRNY, as a 51/49 joint venture with a capital partner to execute the expansion. The partner has invested $10 million for a 49% preferred equity interest, while Grown Rogue retains 51%, and has committed an additional $5 million through a drawable term loan. Grown Rogue estimates total acquisition, capital expenditure and working capital requirements at approximately $12 million. The transaction has not yet closed. Grown Rogue and PharmaCann expect to execute definitive purchase agreements within four weeks, with an anticipated purchase price of approximately $4.5 million, including an inventory adjustment. Of that amount, $3 million would be payable after regulatory approval of the proposed change of control. The acquisition remains subject to definitive agreements, regulatory approvals and customary closing conditions. In the meantime, GRNY has begun managing and financing the transition under consulting, lease and funding agreements designed to preserve the operating platform. A secured loan provides PharmaCann's New York operation with up to $9 million to restart Hamptonburgh production, replenish retail inventory and meet working capital requirements. GRNY is also managing the four dispensaries during the interim period. The assets give Grown Rogue immediate production and retail scale in New York if the acquisition is completed. Before substantially reducing production in early 2026, Hamptonburgh produced more than 2,000 pounds of flower per month on average. PharmaCann's four New York dispensaries have generated aggregate monthly sales averaging $1.7 million to $2 million over the past 18 months. The retail portfolio includes adult-use and medical dispensaries in metropolitan Albany and Syracuse and medical-only stores in metropolitan Buffalo and New York City's Bronx. Historically, PharmaCann's New York revenue has been weighted toward medical cannabis, while approximately 80% of wholesale revenue came from flower and pre-roll products. That product mix aligns closely with Grown Rogue's cultivation-focused strategy. The company currently operates in Oregon, Michigan and New Jersey, with expansion underway in Illinois and Minnesota, and specializes in indoor cannabis flower. CEO Obie Strickler said Grown Rogue sees an opportunity in New York because of regulatory changes, enforcement efforts and what the company believes is limited availability of high-quality indoor flower. Chief Strategy Officer Josh Rosen pointed to the state's more than 700 dispensaries and limited in-state indoor flower canopy as factors behind the expansion strategy. The immediate operational priority is restoring production at Hamptonburgh while maintaining the Verilife retail network. Grown Rogue expects the cultivation operation to require six to nine months to ramp and is seeking to retain existing PharmaCann employees while rehiring some former workers. The company also sees substantial restructuring potential in the assets. CFO Andrew Marchington said Grown Rogue has identified cost reductions it expects could lower annual expenses by approximately $20 million during the first six months of oversight. More than 75% of the anticipated savings depend on new and expected adjustments to property and equipment leases. Based on its current operating plan and several assumptions, Grown Rogue projects the New York operations could become after-tax operating cash-flow positive within nine months and generate approximately $600,000 in monthly after-tax operating cash flow within 18 months. Those forecasts depend on factors including lease adjustments, regulatory approvals, financing availability, cultivation ramp-up, market conditions and the company's assumption that Section 280E will no longer apply to the operations by 2027. The project-based financing structure limits the amount of capital Grown Rogue must provide directly while preserving majority ownership of GRNY. The capital partner's preferred equity carries priority distributions and can ultimately be repurchased by Grown Rogue under specified conditions or converted into Grown Rogue subordinate voting shares at predetermined prices over a five-year period. If completed, the PharmaCann transaction would give Grown Rogue a vertically integrated foothold in New York combining cultivation, manufacturing and four existing retail locations. The investment thesis rests on restoring underutilized production capacity, restructuring operating costs and applying Grown Rogue's flower-focused operating model to an established cannabis platform rather than building a New York business from the ground up.

Grown Rogue International has entered an exclusivity agreement to acquire PharmaCann's New York cannabis license and assets through a new entity, Grown Rogue New York. The deal is supported by $15 million in project-based capital commitments. A capital partner invested $10 million for a 49% preferred equity interest in Grown Rogue New York, with Grown Rogue retaining 51%. An additional $5 million is available through a drawable term loan. The anticipated purchase price is approximately $4.5 million. The acquisition includes PharmaCann's Hamptonburgh production facility with 24,000 square feet of indoor flower canopy and four Verilife dispensaries across New York. Grown Rogue expects to reduce annual costs by approximately $20 million and anticipates the New York operations will become cash flow positive within nine months. The company projects monthly after-tax cash flow of around $600,000 within 18 months. The transaction requires definitive purchase agreements and regulatory approval.