Green Growth Brands Files Offer to Purchase and Circular for Aphria Inc.; Formal Take-over Bid to Commence on January 23, 2019; Receives Commitment for C$150 Million Equity Investment: Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) announced that it has filed its Offer to Purchase and Circular and will formally commence its offer to acquire all of the issued and outstanding common shares of Aphria Inc. (TSX: APHA) (NYSE: APHA) on Wednesday, January 23, 2019.
- The Offer provides Aphria shareholders with 1.5714 common shares of Green Growth for each Aphria Share. (January 22 closing price of GGB $5.98 * 1.5714 = $9.40/share)
- The company also announced that it has entered into a commitment letter with All Js Greenspace LLC, pursuant to which the Investor has agreed to subscribe for and purchase up to $150 million of GGB shares as a backstop to the company’s previously announced intention to complete a $300 million equity financing in connection with the completion of the Offer.
- While the Offer is not subject to any financing condition, Green Growth intends to complete, immediately following the take up of Aphria Shares under the Offer, a third-party equity financing of $300 million at a share price equal to $7.00 per Green Growth share, as disclosed in the Company’s December 28, 2018 press release. To induce the Investor to provide the Commitment, Green Growth has agreed to pay the Investor a commitment fee equal to $7.5 million, payable by issuing 2,504 Green Growth proportionate voting shares to the Investor. The Cannabis Investor
Aphria Urges Shareholders to Take No Action With Respect to Unsolicited Takeover Bid by Green Growth Brands: Aphria (TSX: APHA) (NYSE: APHA) shareholders are advised to take no action on the Offer until Aphria’s Board of Directors has made a formal recommendation to shareholders.
- The Company noted that the Offer’s terms are substantially identical to the unsolicited proposal announced by GGB on December 27, 2018. At that time, the Aphria Board stated that it had determined that GGB’s unsolicited proposal significantly undervalued the Company relative to its current and future value.
- Based on the 20-day volume weighted average price of GGB shares before GGB’s initial proposal and the expressed exchange ratio of 1.5714 common shares of GGB for each Aphria share, the Offer reflects a discount of -23% to the Company’s average share price over the same period. The Cannabis Investor
Aleafia Health Completes Strategic Investment in Australia’s CannaPacific Pty Limited: Aleafia (TSXV: ALEF) (OTCQX: ALEAF) announced the closing of its investment in CannaPacific Pty Limited, a federally licensed Australian medical cannabis company located in New South Wales, Australia. Upon closing of the acquisition, CannaPacific will begin retrofitting the greenhouse Byron Bay, NSW, Australia. CannaPacific is licensed to cultivate medical and to research medical cannabis CannaPacific recently won the bid to acquire a horticultural property with extensive greenhouses and infrastructure. The Cannabis Investor
Ignite International Brands Signs Binding Letter of Intent to Acquire Cannabis Extraction Company, Gen X Biosciences Corp.: Ignite announced that it has entered into a binding LOI which will allow Ignite to acquire all of the issued and outstanding common shares in Gen X BioSciences Corp., a leading cannabis extraction company. Gen X was built on its scientific approach to extracting cannabis products and uses its proprietary ‘Molecular Perfection’ system to distil cannabis oil several times until the final product has THC potency of over 90%. The scalability of Gen X’s technology allows it to sustain adaptable production capacity. It is anticipated that Gen X will manufacture a variety of cannabis-related products for Ignite International, Ltd., another investee company of Ignite. It is also expected that Gen X will continue to service the manufacturing requirements for select independent customers. It is expected that the transaction will close by March 2019. The Company also expects that its common shares will be re-listing for trading on the Canadian Securities Exchange under the symbol “BILZ”. The Cannabis Investor
TransCanna Approved for Trading on the Frankfurt Stock Exchange: TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) is pleased to announce that the Frankfurt Stock Exchange (XETR) has approved the Company for trading on their exchange. The Company’s Frankfurt listing is TH8. The Company announces that Mr. Arni Johannson has accepted a seat on the company’s Board of Directors. Mr. Johannson has an extensive background operating and investing in emerging publicly traded companies. In order to accommodate Mr. Johannson’s appointment, current board member, Mr. Greg Ball, has resigned. Mr. Ball will continue as the Company’s CFO. The Company wishes to thank Mr. Ball for his services as a board member. The Cannabis Investor
HEXO to Start Trading on the NYSE American on January 23, 2019: HEXO Corp. (TSX: HEXO) (OTCPK: HYYDF) is pleased to announce that its common shares have been approved for listing on the NYSE American LLC and will commence trading effective at the open of markets on January 23, 2019. HEXO’s shares will trade on the NYSE American under the ticker symbol “HEXO”, the same symbol the Company’s common shares currently trade under, and will continue to trade under, on the Toronto Stock Exchange.
Tilray® to Acquire Natura Naturals Holdings Inc. for up to C$70 Million Subject to Performance Milestones: Tilray, Inc. (NASDAQ: TLRY), a global leader in cannabis research, cultivation, production and distribution, has entered into a definitive agreement pursuant to which Tilray, through a wholly-owned subsidiary, will acquire all of the issued and outstanding securities of Natura Naturals Holdings Inc., the parent company of a licensed cultivator of cannabis in Leamington, Ontario. As a result of the acquisition, if completed, Tilray will obtain Natura’s 662,000 square-foot greenhouse cultivation facility, of which 155,000 square-feet are currently licensed, and all subsequent cannabis output from this facility. The Cannabis Investor
Aurora Cannabis Prices $300 Million USD Convertible Senior Note Offering: Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) today announced that it has priced its previously announced offering of convertible senior notes due 2024. The Company will issue US$300.0 million aggregate principal amount of notes, or US$345.0 million aggregate principal amount if the initial purchasers’ over-allotment option is exercised in full. The notes will be issued at par value. Aurora expects to use the net proceeds from the offering of the notes to support its Canadian and international expansion initiatives, for future acquisitions and for general corporate purposes, including working capital requirements to continue the Company’s accelerated growth. The Cannabis Investor
Canopy Growth’s Spectrum Cannabis Enters UK & Poland: Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is pleased to update key European progress in the UK and Poland where its medically-focused business Spectrum Cannabis continues to build a sophisticated, pan-European cannabis production and distribution network serving the needs of physicians and their patients throughout the continent. The Cannabis Investor
SLANG Worldwide Completes Oversubscribed $66 Million Financing, Satisfies Escrow Release Conditions and Secures Portfolio of Leading Cannabis Brands Ahead of Listing on CSE: SLANG Worldwide obtained conditional approval from the CSE and expects its common shares to commence trading on the CSE under the stock symbol “SLNG” at market open on or about January 29, 2019. SLANG is a cannabis-focused consumer packaged goods company. The company is focused on acquiring and developing market-proven regional brands, as well as creating new brands to meet the needs of cannabis consumers worldwide. globenewswire.com
Flower One Announces Licensing Agreement and Brand Partnership to Bring Popular California Lifestyle Cannabis Brand, Old Pal, to Nevada: Flower One (CSE: FONE) (OTCQB: FLOOF) announced a new licensing agreement and Brand Partnership for cannabis-product fulfillment in Nevada with California-based, Old Pal, the popular lifestyle cannabis brand that offers the most affordable legal cannabis in the state of California. Flower One is now licensed to produce, manufacture and distribute the entire Old Pal product line to Nevada’s 130 cannabis retailers, marking Old Pal’s first out-of-state expansion and entry into the Nevada market. The Old Pal suite of products, primarily pure, dried flower, is currently available in California and set to sell in Nevada in the coming months. The products are available in three varieties: Indica, Sativa, and Hybrid. Already the lowest cost provider of legal cannabis in California, with the partnership, Old Pal and Flower One will become the lowest cost provider in Nevada. www.prnewswire.com
Creso Signs Three-Year Supply Agreement with TerrAscend Canada for Premium Cannabis Sales: Creso Pharma Limited (ASX: CPH) has signed a three-year supply agreement with TerrAscend Canada, a wholly-owned subsidiary of TerrAscend Corp., (CSE: TER) (OTCQX: TRSSF) to deliver its premium cannabis product to help meet the substantial consumer demand driven by Canada’s federal legalization of cannabis in October 2018. Under the terms of the Supply Agreement, Creso has agreed to sell, and TerrAscend has concurred to purchase a minimum of 100 kgs of cannabis flower per month from Creso from the date that Creso is licensed to sell. Kalkinemedia.com
International Cannabis Corp Announced that it has Acquired 150,000 Acres for Cannabis Production in Bulgaria: International Cannabis Corp announced that it acquired 100% of the assets of the Balkan Cannabis Corp, which claims to own the land in Bulgaria and the necessary licenses for the production of hemp and cannabis for medical purposes. According to their presentation, the local area can even be developed as the world’s largest producer of hemp for industrial purposes. The initial investment in this venture would be approximately $12 million Canadian. www.novinite.com
Organigram Locks up Supply of Hemp-Derived CBD Through Long-Term Agreement with Industrial Hemp Research Company: Organigram (TSXV: OGI) (OTCQX: OGRMF) has entered into an agreement with 1812 Hemp, a New Brunswick based industrial hemp research company to secure supply and support research and development on the genetic improvement of hemp through traditional plant breeding methods. 1812 Hemp is focused on further developing a line of Canadian cultivars (specific varieties of plants cultivated to enhance desirable qualities) of high cannabidiol (CBD) yielding hemp for the Canadian climate. Under the terms of the agreement, Organigram will have access to a secure supply of hemp flower which contains significant levels of cannabidiol (CBD cultivars ranging from 4% to 8%). Organigram has a right-of-first refusal on future procurement of hemp from 1812 Hemp which is expected to increase significantly in 2019 and beyond. www.newswire.ca
Spectrum Biomedical UK Opens New Chapter for Medicinal Cannabis Industry: Spectrum Biomedical UK (Spectrum UK) is focused on providing access of cannabis-based medicinal products to UK patients with severe clinical unmet need. The joint venture between Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) and Beckley Canopy Therapeutics (Beckley Canopy) will be the exclusive distributor of Spectrum Cannabis medicinal products in the UK market. Spectrum UK is a built-for-purpose distribution company that will introduce Spectrum Cannabis medicinal cannabis products to UK patients and doctors. The company combines the scientific rigour, research experience and local management team of Beckley Canopy Therapeutics, with the expertise in production, formulation of pharmaceutical-quality cannabis-based products of Canopy Growth. Spectrum Cannabis products use an industry-first strain classification system, designed to simplify dialogue around strength, dosage, and THC:CBD ratios of medicinal cannabis using a straightforward colour-coded guide. The portfolio includes whole flower cannabis, oils and new innovations such as softgel capsules. There are currently over 80,000 patients being treated with Spectrum Cannabis products worldwide with Spectrum UK aiming to have products available for patients in the UK early 2019. www.prnewswire.co.uk
Village Farms International Announces Filing of Application to List its Common Shares on NASDAQ/Conversion of All Growing Area at Pure Sunfarms’ 1.1 Million Square Foot Greenhouse Completed and Awaiting Health Canada Review: Village Farms (TSX: VFF) (OTCQX: VFFIF) announced that it has filed an application to list its common shares on NASDAQ Capital Market under the symbol “VFF”.
Village Farms also announced that its Canadian cannabis joint venture, Pure Sunfarms, has completed conversion of all of the growing area in the fourth and final quadrant of its 1.1 million square foot greenhouse facility in Delta, British Columbia. The fourth quadrant, totaling approximately 206,000 square feet of growing area, along with approximately 138,000 square feet of growing area in the third quadrant (conversion of which was completed in 2018), are currently under review by Health Canada in respect of amendment of Pure Sunfarms’ cultivation license, which will, in aggregate, expand Pure Sunfarms’ permitted production area by approximately 344,000 square feet to just over 1.03 million square feet, with the remaining approximately 69,000 square feet of the 1.1 million square foot facility currently in the process of being converted for extraction activities. www.marketwatch.com
Khiron Life Sciences Expands to Second Latin America Cultivation Jurisdiction on Closing of Agreement with Dayacann to Enter Chilean Medical Cannabis Market: Khiron (TSXV: KHRN) (OTCQB: KHRNF) has closed the previously announced MOU with Dayacann, holder of Chile’s first medical cannabis cultivation license. As previously announced on September 27, 2018, by entering into an MOU with Dayacann, Khiron identified its intent to operate in the Chilean market with all applicable regulatory approvals and cultivation capacity, to participate in clinical trials and to develop and distribute medical cannabis products in Chile. markets.businessinsider.com
The Weed Middleman That Expects to Make Billions as The Sunkist of Pot: Flow Kana is trying to prove pot distribution is a real business and leaked documents show it is telling prospective investors to expect revenue of more than $2 billion in 2022. Flow Kana, one of the largest legitimate cannabis distributors in California, has built relationships with more than 100 farmers in the state’s Emerald Triangle — a region consisting of Humboldt, Mendocino and Trinity counties, renowned for their pot-growing prowess — and expected to finish 2018 with revenue of $27.5 million, according to information provided to prospective investors that MarketWatch obtained. Flow Kana is burning through cash fast, though, with 78% of its projected going to costs related to its plan to become one of the country’s largest weed businesses: The company expects revenue to balloon to $2.26 billion by 2022, and profitability to arrive in 2020. Like many startups, Flow Kana is bleeding red ink. According to its internal projections, the company is set to lose roughly $1.5 million a month for an annual operating loss of $18.2 million; it estimates 2018 after-tax recurring cash losses of $21.4 million. The losses may be why Flow Kana is completing a new round of funding as of publication time. The documents say Flow Kana plans to use the cash infusion to acquire additional trim facilities, distribution hubs and acquire stakes in other pot businesses that fit with the company’s mission. Before this year’s fundraising effort, the company had banked $50 million from investors including Elevation Partners’ Roger McNamee, who was an early investor in Facebook Inc. and Gotham Green Partners www.marketwatch.com
International Cannabis Launches First European Guaranteed Issue Medical Cannabis Coverage Plan: ICC International Cannabis Corp. (CSE: WRLD.U) announced that it has entered into an LOI with Evergreen Pacific Insurance Corporation and Cannops Consulting, collectively, the Consortium. The Consortium will pursue a joint venture partnership for the purposes of launching Evergreen Pacific’s revolutionary BuyWell Ecosystem across Europe, including:
- First of its kind transformative coverage for cannabinoid therapeutic treatment via the BuyWell Care platform;
- Online medical cannabis coverages utilizing a proprietary pricing methodology;
- Streamlined access to top-tier alternative healthcare services;
- CBD Health and Wellness ecommerce marketplace; and,
- Educational platform for medical practitioners. www.nasdaq.com
Canopy Rivers Provides Update on Milestones Achieved by Its Italian Hemp-Focused Investment: Canopy (TSXV: RIV) (OTCPK: CNPOF) provided an update on the operations of Canapar SrL, an Italian-based hemp production and processing platform and subsidiary of portfolio company, Canapar Corp. Canapar hosted a ribbon cutting ceremony for its new cannabidiol (“CBD”) extraction and processing facility. When completed in Fall 2019, this facility is expected to be the largest in Europe. Through its advanced extraction and processing capabilities, it is anticipated to transform 600 metric tons of hemp biomass annually into CBD isolates and derivative products for distribution in the European market. Globenewswire.com
FoliuMed Kicks off 70-ton Hemp and Cannabis Cultivation in Colombia: Cannabis producer FoliuMed has completed the construction of its first greenhouses on a 16 hectare grow site close to Bogota, where the company will produce more than 70 tons of medicinal hemp and cannabis plants in 150 greenhouses. “Colombia’s favourable climate and labour costs allow us to grow premium-quality, sun-grown hemp and cannabis at a fraction of the cost in North America,” says Diego Felipe Navarro, Colombian CEO for FoliuMed, an international cannabis company with cultivation, production and distribution assets in Latin America and Western Europe. www.thegrowthop.com
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