Company News:
Cronos Group Inc. Announces C$2.4 Billion Strategic Investment from Altria Group, Inc.: Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) announced that it has entered into a subscription agreement with Altria Group, Inc. (NYSE: MO) pursuant to which Altria has agreed to make an approximately C$2.4 billion equity investment in Cronos Group (45% ownership interest). Altria will also receive warrants, that if fully exercised, would provide the company with an additional approximately C$1.4 billion of proceeds (increase ownership to 55%). This strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position the Company to compete, scale and lead the rapidly growing global cannabis industry. www.newswire.ca
Aurora Cannabis to Acquire Mexico’s Farmacias Magistrales S.A.: Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) has entered into a Letter of Intent to acquire all of the issued and outstanding shares of Farmacias Magistrales S.A., subject to customary due diligence provisions, the completion of definitive agreements, and regulatory and government approval. Transaction Highlights:
Farmacias has been granted Mexico’s first and only license to import raw materials containing > 1% THC. Farmacias owns and operates a high-quality 12,000 sq. ft. facility in Mexico City for the production of pharmaceuticals. The facility is licensed for the import of raw pharmaceutical ingredients, including cannabinoids (THC and CBD). Farmacias intends to use the imported THC and CBD concentrates to produce various cannabis oil products for initial introduction to the medical market. It furthermore intends to rapidly broaden its portfolio of products to include capsules, topical solutions, and sprays and various other delivery formats. www.newswire.ca
Canopy Growth Acquires Storz & Bickel: Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has finalized an all-cash transaction to acquire Storz & Bickel GmbH & Co. KG, related entities, and IP for a purchase price of up to approximately €145 million. With a 22-year track record of breakthrough innovations, Storz & Bickel is widely recognized as the global leader in vaporizer design and manufacturing. Based in Tuttlingen, Germany, Storz & Bickel are designers and manufacturers of medically approved vaporizers, most notably the Volcano® Medic and the Mighty® Medic. Storz & Bickel has spent the last two decades developing an automated and internationally certified factory, achieving ISO 13485 certification in 2009. The company has exported devices to 50 markets around the world. The acquisition will see Storz & Bickel’s eponymous founders Markus Storz and Jürgen Bickel remaining as a part of the organization to continue driving the business forward alongside Canopy Growth’s management. www.prnewswire.com
Emerald Health Sees License Expansion of Pure Sunfarms Cannabis Production Operation to 687,000 Square Feet, one of Largest Production Capacities in Canada: Emerald Health Therapeutics, Inc. (TSXV: EMH) (OTCQX: EMHTF) announced that its 50%-owned joint venture, Pure Sunfarms, received from Health Canada the fifth amendment to its cultivation license for its 1.1 million square foot greenhouse in Delta, BC. With an added approximately 137,000 square feet (half of Quadrant 3), the total licensed cannabis production area is approximately 687,000 square feet. The newly licensed area is expected to be fully planted by the end of this week. Pure Sunfarms has completed conversion of the remainder of Quadrant 3 and is awaiting Health Canada approval for this additional approximately 138,000 square feet of production area. Pure Sunfarms expects to complete conversion of Quadrant 4 (approximately 275,000 square feet) by year end and anticipates Health Canada approval of that additional area by the end of January 2019. globenewswire.com
Origin House Announces Agreement to Sell Its Equity Interest in Bodhi Research: CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF) announced that Cannabis Royalties and Holdings Corp., a wholly-owned subsidiary of Origin House, has entered into a share purchase agreement, with Green Relief Inc., to sell its equity stake in Bodhi Research & Development Inc. Pursuant to the Agreement, Green Relief will first purchase from CRHC and other vendors, 51% of all outstanding common stock of Bodhi Research for $20 million in shares of Green Relief. Under the Agreement, there is also the potential for the future sale of the remaining 49% of the outstanding common stock of Bodhi Research for an additional $20 million, to be paid in Green Relief common shares. www.newswire.ca
Aurora Cannabis to Enter Mexico Market via Exclusive Supply Arrangement with Farmacias Magistrales: Aurora (TSX: ACB) (NYSE: ACB) has established an exclusive partnership with Farmacias Magistrales S.A., an established Mexican pharmaceutical manufacturer and distributor with a broad reach to approximately 80,000 retail points and 500 pharmacies and hospitals across Mexico. Farmacias recently received the first and only import license granted to date, from the Federal Commission for Protection Against Health Risks, the Mexican government body responsible for medical cannabis licensing, which permits Farmacias to import Aurora medical cannabis products containing THC into Mexico. Farmacias has also received licenses from COFEPRIS to permit:
- Importation and storage of raw CBD and THC materials
- Manufacture of CDB and THC products
- Distribution of CBD and THC products
Farmacias’ license to import Aurora’s medical cannabis into Mexico positions Aurora with another first-mover advantage in one of the world’s most populous countries, where more than 130 million people will have federally legal access to a range of Aurora’s non-flower medical cannabis products containing THC and/or CBD. Dried flower containing THC is currently prohibited for domestic cultivation, import or sale in Mexico. www.prnewswire.com
Aurora Increases EU Footprint With Medical Cannabis Shipment To Luxembourg: Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) announced today that the company, through its wholly owned subsidiary Aurora Europe GmbH, has been selected by the Luxembourg Health Ministry for the supply of medical cannabis to that country and an initial purchase order for approximately 20 kilograms has been received. The Company has received all required authorizations (import and export licenses) and has commenced its first shipment of high-grade medical cannabis to Luxembourg’s Division de la Pharmacie et des Medicaments, representing the second time the Company has received an order directly from a European government. www.prnewswire.com
Acreage inks $160 million acquisition of Oregon cannabis firm: Acreage Holdings (CSE: ACRG.U) has inked a $160 million deal to acquire Form Factory, a Portland, Oregon-based cannabis infused edibles manufacturer and distributor. The all-stock deal will boost Acreage’s footprint from 18 to 19 states and position the firm as a multistate consumer packaged goods firm, said George Allen, president of the New York-based company (CSE: ACRG.U). mjbizdaily.com
Liberty Health Sciences Responds to Short-Seller Report: Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF) is aware of a short-seller report attempting to manipulate Liberty’s share price through a series of unconfirmed allegations. The Report contains a number of factual errors and outdated information (see link below). As cited in the Report’s disclaimers, its authors stand to benefit financially by manipulating Liberty’s stock. Investors should exercise caution in relying on the statements contained in this Report. Liberty takes the unconfirmed allegations contained in the Report very seriously and will provide updates as they relate to this matter in due course. Liberty is committed to good corporate governance and transparency. www.newswire.ca
Aphria Announces Special Committee To Review Governance Processes Related To Latam Acquisition: Aphria Inc. (TSX: APHA) (NYSE: APHA) announced its Board of Directors has appointed a special committee of independent directors to review the Company’s previously completed acquisition of LATAM Holdings Inc., which closed on September 27, 2018, and confirm the Company’s belief that it conformed with all Company policies and generally accepted corporate governance practices. The Company’s Board reiterated its confidence in the process leading to the Acquisition, as well as in its Latin American operations and strategy. However, in the face of inaccurate and misleading accusations by certain short-sellers, whose sole interest is in profiting from a decline in the Company’s shares, it is undertaking a comprehensive review, led by a Special Committee of independent directors of these, and any other, allegations in the interest of protecting Aphria shareholders. The Special Committee is composed of John M. Herhalt, Shlomo Bibas and Tom Looney. Mr. Herhalt, who is the lead independent director and the Chair of the Audit Committee, will serve as Chair of the Special Committee. Each of these members is independent and joined the Board following the closing of the Acquisition. The Special Committee is authorized to, and expects to, retain independent advisors to assist in its review. www.prnewswire.com
Aphria Unequivocally Stands Behind its LATAM Operations: Aphria Inc. provided the following update on its Latin American operations, including its previously completed LATAM acquisition of LATAM Holdings Inc. consisting of licenses and other assets and related businesses in Colombia, Argentina and Jamaica and a right of first offer and refusal in respect of Brazil, which closed on September 27, 2018. The LATAM acquisition was a transaction negotiated at arms’ length between two publicly traded companies each of which retained professional financial advisors (one of which provided a formal valuation of the acquired assets). Aphria and SOL Global Investments Corp. (formerly Scythian Biosciences Corp.) (“SOL”) are not “sister” companies and were not “sister” companies at the time the Transaction was agreed to between the parties. www.prnewswire.com
Organigram obtains $10M loan from Farm Credit Canada to continue to expand Moncton campus: Organigram Holdings Inc. (TSXV: OGI) (OTCQX: OGRMF) announced it has secured a loan from Farm Credit Canadian the amount of $10M, which will be used to finance the expansion of the Company’s Moncton campus. The debt is for a term of five years at a variable rate of interest, and currently at 6.70%. The debt is secured against certain assets of Organigram. Currently, construction continues as planned on Phase 4A and 4B of the Company’s expansion. This expansion will continue to increase Organigram’s production capacity with the additional state-of-the-art grow rooms coming online in April 2019 (Phase 4A) and August 2019 (Phase 4B) increasing the Company’s target production capacity to 62,00 kg/yr and 89,000 kg/yr, respectively. As of October 24, 2018, power officially began flowing from the Company’s new substation. Having a peak power capacity of 40 megawatts, this substation will provide much cleaner electrical supply, improve the Company’s electrical consumption efficiency and lower the Company’s maintenance cost on equipment. www.newswire.ca
Supreme Partners with Wiz Khalifa to Bring Hip-Hop Star’s Pot Brand to Canada: The Supreme Cannabis Co. Inc. (TSXV: FIRE) (OTCQX: SPRWF) is partnering with a cannabis company founded by hip-hop star Wiz Khalifa to bring the musician’s premium pot brand to Canada, but plans to tweak the incoming product to avoid running afoul of Health Canada’s marijuana marketing restrictions. Supreme Cannabis will pay Khalifa, the stage name of Cameron Jibril Thomaz, $1 million in cash in addition to about 5.7 million shares in the Toronto-based pot producer in return for exclusive rights to distribute the musician’s “Khalifa Kush” cannabis brand and provide consulting services for the next three years. Khalifa Kush will be rebranded as “KK” in Canada when it’s available for sale next year, in order to abide by Health Canada regulations on how cannabis is marketed in Canada, Fowler said. “We’re not looking for any promotion. We’re mainly looking for knowledge share from [Khalifa Kush Enterprises] to create genetics, develop products and market them in a compliant manner,” said John Fowler, CEO of Supreme Cannabis. www.bnnbloomberg.ca
FSD Pharma Announces Collaboration and License Agreement with World Class Extractions: FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) announced that it has entered into a definitive Collaboration and License Agreement with World Class Extractions Inc. Under the terms of the agreement and a related lease, FSD Pharma will provide World Class with space at its 620,000 square foot facility in Cobourg, Ontario, assist it in obtaining an extraction license from Health Canada, and provide World Class with the raw cannabis needed to produce cannabis extracts. In return, World Class will provide FSD Pharma with certain royalty rights over the profits derived from the sale of those cannabis extracts. www.newswire.ca
Curaleaf Announces Launch of Share Buyback Program: Curaleaf Holdings, Inc. (CSE: CURA) (OTCPK: CURLF) announced its intention to commence a normal course issuer bid to expend up to an aggregate of USD $50 million on the purchase of subordinated voting shares. The actual number of Subordinated Voting Shares that may be purchased under the Bid and the exact timing of any such purchases will be determined by the Company. www.prnewswire.com
Acreage Announces Acquisition of Form Factory, Setting Stage for Unrivaled Cannabis Product Manufacturing and Distribution Platform: Acreage Holdings, Inc. (CSE: ACRG.U) and Form Factory, Inc. announced they have signed a definitive agreement for Acreage to acquire Form Factory, in an all-stock transaction valued at US$160 million. Acreage will issue approximately 6.4 million Subordinate Voting Shares to Form Factory shareholders at a deemed price of US$25 per share. The transaction brings Form Factory’s expertise as a one-stop-shop for developing, manufacturing, and distributing cannabis products of any form factor to Acreage’s 19-state footprint of growing, manufacturing and distributing cannabis-based consumer and medical products. www.prnewswire.com
Cresco Labs Acquires Assets in Massachusetts with First Cannabis Harvest Planned for Spring 2019: Cresco Labs (CSE: CL) (OTCPK: CRLBF) announced a definitive agreement to acquire 100% of the shares and membership interests of Hope Heal Health, Inc. (HHH) and an affiliated real estate entity. The HHH assets include state registration and licensing that will allow for cultivation, manufacturing, processing, and the establishment and operation of a medical marijuana dispensary, with the ability to obtain up to three medical marijuana dispensary licenses and three adult-use dispensary licenses. HHH has entered into host community agreements with the Massachusetts municipalities of Rockland, North Attleborough and Fall River for medical cannabis dispensaries, subject to site approval, and is in the process of applying for adult-use licenses from the Massachusetts Cannabis Control Commission. Closing is expected to occur in the first quarter of 2019, subject to receipt of applicable regulatory approvals and other customary closing conditions. www.businesswire.com
Pot Producer Indiva Partners with Cannabis Retailer Ouid: Limited to a single storefront location to sell cannabis, a London-based marijuana grower is partnering with a newly created company to open 10 dispensaries across Ontario, including two in London. Indiva has bought a 9.9 per cent stake in Retailgo Corp., which will operate a string of dispensaries under the name Ouid when bricks-and-mortar stores open in April. Ouid is working with a Toronto-based architectural firm to design its stores, which will carry cannabis products from Indiva and other licenced producers, Smutyl said. lfpress.com
Level Brands Signs Definitive Merger Agreement to Acquire Nationally Recognized Cannabidiol (CBD) Consumer Products Brand cbdMD: Level Brands, Inc. (NYSE MKT: LEVB) announced that it has signed a definitive merger agreement to acquire Cure Based Development, LLC the owner, operator and manufacturer of nationally recognized consumer cannabidiol (CBD) brand cbdMD, in a two-step merger for merger consideration of 15,525,000 shares of Level Brand’s common stock, with an earnout potential of up to an additional 15,525,000 shares if net revenue targets aggregating $300 million are met within 60 months of the closing date. The closing of the merger is subject to a number of customary conditions precedent as well as both the passage of the Agricultural and Nutrition Act of 2018, which is commonly referred to as the 2018 Farm Bill, or such other titled Federal legislation, which, when approved by the President of the United States, contains a permanent declassification of cannabidiol (CBD) as a controlled substance under Federal law. Following the expected closing, the operations of Cure Based Development will continue under the cbdMD LLC wholly-owned subsidiary. www.businesswire.com
CBD Beverage Maker Eyes Global Expansion via $85M Purchase of Utah Company: New Age Beverages Corp. (Nasdaq: NBEV) announced that it will acquire privately held Morinda Holdings of Provo, Utah, for $85 million. Highlights:
- New Age will pay $75 million in cash and $10 million in New Age stock.
- Morinda focuses on direct-to-consumer and online sales, with 70% of its business generated in Japan, China, Korea, Taiwan and Indonesia.
- Both companies also make and distribute non-CBD beverages, including kombucha and tea.
- The deal is expected to close in December.
New Age CFO Gregory Gould told Hemp Industry Daily that his company isn’t yet certain it will distribute its CBD line of beverages outside the United States, but the deal will provide the infrastructure that would allow it to do so. mjbizdaily.com
Newstrike and Neal Brothers Complete Agreement to Create co-Branded Specialty Food Products Company: Newstrike (TSXV:HIP) (OTCPK: NWKRF) announced that it has completed its previously-announced transaction with Peter Neal and Chris Neal and their company, Neal Brothers Inc. to create a co-branded specialty food products company to develop, market and sell cannabis edibles. Newstrike has also completed its transaction to acquire a minority interest in Neal Brothers, pursuant to a share purchase agreement. www.newswire.ca
Wayland Group Announces Strategic Acquisition in Argentina: Wayland Group (CSE: WAYL) has entered into an agreement to purchase 819 hectares of existing developed agriculture land in San Juan Province in Argentina. San Juan Province is ideal for cannabis cultivation due to the province’s climate and altitude. The presence of a stable economy and infrastructure to support business development is another contributing factor for the Company’s interest in the country. Total purchase price for the acquisition is USD$8.5MM www.nasdaq.com
Harvest Health & Recreation Announces Joint Venture with Aina We Would, LLC: Harvest (CSE: HARV) entered into an agreement to form Aina We Would, LLC , a new captive real estate investment vehicle that plans to provide funding for cannabis-related real estate asset acquisitions. In addition to a Harvest subsidiary, AWW is comprised of two family offices, Aina Advisors LLC and Stadlen Family Holdings, LLC . Aina and Stadlen have committed to fund or arrange up to $100 million to fund AWW projects they approve. AWW plans to buy, develop and finance new construction projects, engage in land purchases, capital improvements and sale-leasebacks to Harvest and other operators in the cannabis industry. www.businesswire.com
AgMedica Bioscience Inc. Acquires Strategic Indoor Processing Facilities Located in London and Chatham to Expand Sales and Production Capabilities: AgMedica Bioscience Inc. announced that the Company has closed the acquisition of two indoor processing facilities, designed to bolster the Company’s future production and cultivation capabilities and supplement its existing infrastructure. The first facility is located in London, Ontario and features 100,000 square feet for fully automated processing, packaging and bottling. With this additional capacity, AGMEDICA is positioned to further expand its oil extraction capabilities and leverage the recently announced strategic investment in, and licencing agreement with, Herbolea S.r.l. The second facility is located in Chatham, Ontario and provides 300,000 sq. ft that is ideally suited for future cannabis-plant cultivation. www.newswire.ca
TILT Acquires Cannabis Distribution Startup Blackbird and Medical Cannabis Operator Standard Farms: TILT Holdings Inc. (CSE:TILT) has acquired two leading cannabis companies to expand its capabilities in the cultivation and logistics spaces. TILT has acquired Blackbird Holdings Corp., a distribution company providing logistics operations and software solutions for each touchpoint in the cannabis supply chain. Blackbird works with more than 250 wholesale and retail cannabis operators in Nevada and California to transport an average of $30 million in wholesale cannabis products every 30 days. With involvement in 95% of the cannabis sold in Nevada, Blackbird plans to expand its capabilities in Massachusetts, Arizona and California. In addition to back-end delivery and operations solutions for cannabis dispensaries, Blackbird also includes a consumer marketplace for cannabis delivery and pick-up called BlackbirdGo. www.businesswire.com
Heritage and Purefarma Announce Definitive Agreement: Heritage (CSE: CANN) (OTCPK: HERTF) has executed definitive agreements dated December 7, 2018 (to acquire all of the issued and outstanding shares of Purefarma Solutions Inc., a private British Columbia company. Purefarma, based in Kelowna, BC, brings an experienced extraction team, which is a key aspect to the overall growth strategy for Heritage. The Purefarma team will expand its premium CBD and THC oil offerings within the PhyeinMed and CannaCure Licensed Producer infrastructure, as both LPs intend to obtain amended licenses to include extraction in the near future. Purefarma has an existing supply agreement for 1,600 acres of hemp available through partner farmers, which has been harvested this season and available for the 2019 consumer market. www.marketwatch.com
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