Company News:
Companies reporting Financial results:
- James E. Wagner Cultivation Corp. (TSXV: JWCA) – Q4/18: Revenue for F2018 was $231k and net loss was $10.3 mm ($0.14/share). The company has cash and short-term investments of approximately $14.5 mm at YE. On Nov. 6, 2018 JWC entered in to an agreement with Alumina Partners for a drawdown equity facility of up to $18.0 mm. The company has 87.9 mm shares out as of Sept. 30, 2018 sedar.com
- Organigram Holdings Inc. (TSXV: OGI): fiscal year-end and Q4through 8/31/18. Net sales of $12.4 million, up 131% from $5.4 million in 2017); Medical patients increased to 15,730 in 2018 from 7,404, 112%;Net income of $20.5 million up from $(10.9) million. Ended year with cash and cash equivalents of approximately $130 million newswire.ca
- Hexo Corp. (TSX: HEXO) – Q1/19: Revenue $6.7 mm. Net loss $14.8 million. Cash and short-term investments totalled $177 million and the company recently filed an $800 million shelf prospectus
- Dixie Brands Inc. (CSE: DIXI.U) – Q3/18: Revenue was $2,435,000 in the third quarter of 2018, an increase of 110% from $1,162,000 of revenue in Q3 2017. Dixie had $18,584,000 of cash at September 30, 2018.
- Cresco Labs, Inc. (CSE: CL) – Q3/18: Q3 revenue of $12.2 million, up 335% year-over-year and 51% quarter-over-quarter. Successfully raised $205 million in growth capital through three capital raises in 2018.
New listings:
- Rapid Dose Therapeutics Begins Trading on the CSE Under the Ticker “DOSE”: Rapid Dose Therapeutics Corp. (CSE: DOSE) The corporation, through its subsidiary, owns a proprietary oral fast-dissolving drug delivery system, QuickStrip™, which is capable of rapidly releasing into the bloodstream a variety of pharmaceuticals, emulsified oils and over-the-counter medicines without being degraded or modified by first pass metabolism in the liver. The Corporation, through its subsidiaries, also provides product innovation, production and consultation to the pharmaceutical and healthcare manufacturing industry..sedar.com
- High Tide Inc. – Will trade under “HITI” Stock Symbol: High Tide is an Alberta-based, retail-focused cannabis corporation. It is among the most vertically-integrated companies in the Canadian cannabis market, with portfolio subsidiaries including RGR Canada Inc., Smoker’s Corner Ltd., Famous Brandz Inc., Canna Cabana Inc. and the majority of KushBar Inc. newswire.ca
- Terranueva Corporation Begins Trading on the CSE under the ticker symbol “TEQ”. Terranueva Pharma is a private Québec-based Company operating in L’Assomption (Québec). At the time of Listing, Terranueva has 31,663,293 Common Shares outstanding. Approximately 17,699,852 Common Shares are held by related persons or employees. com
Aleafia Health Inc. to Acquire Emblem Corp. to Create New Medical Cannabis Leader: Aleafia (TSXV: ALEF) (OTCQX: ALEAF) and Emblem Corp. (TSXV: EMC) (OTCQX: EMMBF) have entered into a definitive agreement under which Aleafia will acquire all of Emblem’s issued and outstanding common shares in an all-share transaction currently valued at approximately $173.2 million. Transaction Highlights:
- Combination will create Canada’s largest medical cannabis clinic network with access to 40 medical clinics and education centres;
- Aleafia to become among national leaders in production capacity (including committed supply agreements); globenewswire.com
Aphria and Rapid Dose Therapeutics to Introduce Innovative QuickStrip™ Oral Thin Strips to German Cannabis Market: Aphria Inc. (TSX: APHA) (NYSE: APHA) and Rapid Dose (CSE: DOSE) have expanded the scope of their previously announced agreement expanding the territory where Aphria has been granted exclusive preferred rights to license, manufacture, distribute and sell RDT’s QuickStrip™ innovative, proprietary delivery technology for the cannabis market to Germany. Aphria expects to produce and distribute CBD-only Quickstrips™ in Germany by Spring 2019. www.newswire.ca
LiveWell Canada Signs Definitive Agreement to Acquire Acenzia:LiveWell (CSE: LVWL), signed the definitive agreement with Acenzia Inc., a leading developer and manufacturer of natural health products and supplements in Tecumseh, Ontario, to acquire 100% of Acenzia Inc.’s common shares, for a total purchase price of $20 million. Transaction is part of LiveWell’s transformation to a global CBD life sciences company focused on quality products and functional outcomes. Blending science and advanced manufacturing, Acenzia is an innovator in rapid product development and therapeutics specific to particular medical conditions. These capabilities will further LiveWell’s health-related research in CBD and other cannabinoids and fast-track the Company’s CBD product development. www.newswire.ca
Golden Leaf Holdings Ltd. Not Pursuing Terra Tech Corp. Transaction: Golden Leaf (CSE: GLH) (OTCQB: GLDFF) announced that it has decided not to pursue a potential transaction with Terra Tech Corp. Golden Leaf and Terra had previously announced the signing of their non-binding letter of intent on November 5, 2018. Globenewswire.com … Maybe due to Terra Tech Hit by Fraud Allegations in its Nevada Cannabis Operations www.newcannabisventures.com
House of Saka Wine Blends Cannabis, Grapes, and Feminism into a Bottle: Although a glass of wine and a cannabis edible have similar relaxation properties, edibles are often so tiny that it’s impossible to truly enjoy the unwinding process in the same way. Enter House of Saka, a new infused ‘wine’ that promises a microdosing experience with all the flavors of a Napa Valley varietal—and none of the alcohol. Every bottle of Saka contains a proprietary, water-soluble, three-to-one THC/CBD solution, the specifics of which remain a company secret. And though each glass contains between five to 10 miligrams—the still version is less potent than the sparkling—the solution is both odorless and tasteless, meaning it tastes like a wine, not cannabis. They make a “full-blown Napa Valley rosé and pinot noir,” but then carefully extract the alcohol. hightimes.com
Tilray® Signs Global Collaboration Agreement with Leading Pharmaceutical Company: Tilray (NASDAQ: TLRY) entered into a global framework agreement (to collaborate with Sandoz AG, a global leader in generic pharmaceuticals and biosimilars and a part of Novartis group, to increase availability of high quality medical cannabis products across the world. The Framework Agreement outlines the opportunity for the companies to agree to collaborate in different forms:
- Sandoz AG may support the global commercialization of Tilray’s non-smokable/non-combustible medical cannabis products;
- Tilray and Sandoz AG may co-brand certain non-smokable/non-combustible products;
- Tilray may supply non-smokable/ non-combustible medical cannabis products and license rights to and from Sandoz AG in relation to such products; Both companies may also partner to leverage best-in-class knowledge to educate pharmacists and physicians about medical cannabis products;
- Tilray and Sandoz AG may collaborate to develop new innovative medical cannabis products. businesswire.com
Terra Tech Hit by Fraud Allegations in its Nevada Cannabis Operations: Beleaguered Terra Tech (OTCQX: TRTC), which has cannabis operations in California and Nevada, had already fallen to multi-year lows before moving sharply lower today following news that it has been sued in a Nevada court for alleged fraud. According to the allegations, Hegerich participated in three separate joint venture transactions, including a Reno cultivation operation, a real estate company and the operations of the Reno Blum dispensary. She charges that the entities weren’t properly audited and that Terra Tech “looted” the “highly successful” dispensary operations. According to an investigation by Casey Neilon, “Terra Tech admitted numerous errors” in its accounting. She also claims that the company included false statements in its 10-Q filing, as the company misrepresented its ability to exclusively control the management of Blum’s Reno operations. In all, there were 50 claims in the complaint, most of which named Terra Tech or its executive officers. The plaintiff is seeking monetary damages as well as the appointment of a receiver to manage Loeb Medifarm Entities. Terra Tech provided a written statement denying the allegations. Terra Tech stock, currently near an all-time low set earlier today of $0.76, has declined 84% in 2018 to $0.78: www.newcannabisventures.com
Pivot Announces Completion of Definitive Agreement with Cartagena Inc.: Pivot Pharmaceuticals Inc. (CSE: PVOT) (OTCQB: PVOTF) reports that it has completed the previously announced transaction to create a Joint Venture Corporation with Cartagena Leaf Inc., a subsidiary of Mexico-based Licorera Del Sur. The Joint Venture is structured as a federally-registered standalone company from which Pivot will receive 50% of Net Revenues generated by the JVC. The JVC will develop and commercialize cannabis-infused non-alcoholic beverages combining the proven industry expertise of Licorera del Sur with Pivot’s patented Solumer™ and RTIC™ powderization technologies. www.newswire.ca
GenCanna’s 4th Kentucky hemp facility gets boost from tax incentives: Kentucky hemp grower and CBD manufacturer GenCanna Global is building a fourth factory in Kentucky, a $40 million facility the company received hefty public support for. GenCanna received “several million dollars” in state and local tax incentives to build the factory in Mayfield, in western Kentucky, President Steve Bevan told Hemp Industry Daily. The plant will be used for storing, drying and extracting cannabinoids from Kentucky-grown hemp and will eventually employ more than 80 people. Bevan said GenCanna would increase hemp production tenfold in 2019 to about 10,000 acres – all flower varieties in Kentucky. GenCanna’s rapid expansion comes in anticipation of a new Farm Bill that would remove hemp from the Controlled Substances Act and guarantee interstate commerce legality for derived products, including CBD. hempindustrydaily.com
Tidal Royalty Corp. Terminates Letter of Intent with CannaRoyalty Corp.: Tidal Royalty Corp. (CSE: RLTY.U) announced that effective immediately it has terminated the letter of intent with CannaRoyalty Corp. (CSE: OH) announced August 27, 2018 with respect to the acquisition of a royalty entitlement and equity interest in Alternative Medical Enterprises, LLC. Tidal Royalty has decided not to proceed with the transaction contemplated by the LOI following completion of its due diligence investigation. www.newsfilecorp.com
Tilray® Signs Letter of Intent for Hemp-Derived CBD from the U.S. and Canada: Tilray, Inc. (NASDAQ:TLRY) announced the terms of a binding letter of intent to purchase hemp-derived CBD isolate from LiveWell Canada Inc. (CSE:LVWL), which will be sourced from the United States and Canada and utilized for distribution of Tilray-owned wellness and medical products across North America. The LOI outlines that LiveWell will supply Tilray with CBD isolate made from hemp cultivated and processed in the U.S. and Canada, with first supply commencing in February 2019. The CBD isolate will be used to process finished CBD cannabis products for distribution by Tilray in Canadian and U.S. markets, subject to applicable federal and local laws and regulations. business.financialpost.com
TerrAscend Announces Agreement for US$75 Million Credit Facility: TerrAscend Corp. (CSE: TER) has agreed to terms on a US$75 million credit facility with certain funds managed by JW Asset Management LLC, where Jason Wild, Chairman of the Board of TerrAscend, is the President and Chief Investment Officer. These funds are also the largest shareholders of TerrAscend. The credit facility is intended to give TerrAscend access to non-dilutive capital for acquisitions in the United States, as well as for general corporate and working capital purposes. www.newswire.ca
Québec’s ROSE LifeScience Partners with Tilray® & High Park™: Québec cannabis producer, ROSE LifeScience Inc. announced an investment from Tilray, Inc. (NASDAQ: TLRY) as well as an exclusive sale, supply, distribution and marketing agreement with High Park Farms Ltd., a wholly owned subsidiary of Tilray. Tilray will subscribe for 41 Class “A” Common shares (12%) in the capital of ROSE for a subscription amount of C$7.5 million pursuant to a subscription agreement. In connection with the subscription agreement, High Park and ROSE have entered into an exclusive sale, supply, distribution and marketing agreement to deliver High Park adult-use cannabis products in Québec including existing brand, Dubon™, which is exclusively available in Québec through the Société québécoise du cannabis (SQDC). www.newswire.ca
Valens Signs Multi-year Cannabis Extraction Agreement with Canopy Growth: Valens has entered into a multi-year Extraction Services Agreement with Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) for cannabis extraction services. Under the terms of the multi-year agreement, Valens is partnering with Canopy Growth to provide extraction services, utilizing the Company’s proprietary technology and methodologies to process Canopy Growth’s whole flower and trim into high-grade cannabis resin. www.newswire.ca
Canadian cannabis producer Canopy Growth expects to enter the US market next year to grab a piece of a $1.6 billion opportunity: The Canadian cannabis producer Canopy Growth expects to enter the US market by the end of 2019, according to analysts at Cowen. Canopy CEO Bruce Linton’s announcement came after the US Senate voted to approve the hemp-friendly Farm Bill. markets.businessinsider.com
High Tide to Acquire Grasscity – the World’s Most Popular Online Retailer of Smoking Accessories – and the Grasscity Forums: High Tide Inc. (“High Tide” or the “Company”) entered into a definitive share purchase agreement to acquire all of the issued and outstanding shares of two entities, SJV B.V. and SJV2 B.V. (collectively, “Grasscity”). The total purchase price of approximately $6,730,000 will be paid to Grasscity shareholders, of which 8,410,470 special warrants were issued at a deemed price of $0.50 per special warrant. Based in Amsterdam, the Netherlands, Grasscity.com is the world’s #1 online store for smoking accessories and cannabis lifestyle products and the most searchable smoking accessories retailer, with approximately 5.8 million site visits annually. The site has in excess of 550,000 customers in its database, generates over 90% of its revenues from customers located in the United States and fulfills approximately 65,000 orders per year.. www.newswire.ca
Green Growth Brands Acquires Second Nevada Grow Facility: Green Growth Brands (CSE: GGB) announced it entered into definitive agreements on December 12, 2018 to acquire a Pahrump, Nevada cultivation facility for a total purchase price of USD$13,372,162 (CAD$16,749,970). www.newswire.ca
Maryland marijuana grower ForwardGro ordered to pay fine for using banned pesticides on cannabis crops – The investigation into ForwardGro began in July when a complaint was filed with the commission that included sworn statements from three former employees at the company’s Anne Arundel County growing center. In October, the commission issued an order to block the sale of ForwardGro products by telling all cannabis dispensaries to “please quarantine these products.” The commission’s hold on sales of ForwardGro product has been lifted. Capital Gazette
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