Michigan Medical Marijuana Sales Top $42 Million in 4 Months, Introducing the Next Big Player in the State: Michigan’s Medical Marijuana market is off to a hot start, racking in over $42 million in revenue in just its first 4 months of business. Dispensaries officially opened for business on November 1, 2018, and the demand for Medical Cannabis is clearly evident.
According to the state Department of Licensing and Regulation Michigan pulled in $7.1 million in Cannabis sales during the first month alone. Sales ballooned to $11.9 million in January 2019 before leveling off in February for a total of $11.2 million. The small decline in sales is likely due to the extremely cold weather, as well as February, being a shorter month. Nevertheless, Michigan was able to rack up total sales of exactly $42,061,557 in their first 4 months of legal operations.
With all the buzz surrounding Michigan’s burgeoning Cannabis market the obvious question is how can investors get involved and which stocks can they invest in to gain exposure to this new market? Introducing the next big Michigan Marijuana player…
Aleafia Health and Emblem Close Merger Creating Leading Canadian Licensed Producer: Aleafia Health Inc. (TSXV: ALEF) (OTCQX: ALEAF) (FRA: ARAH) and Emblem Corp. (TSXV: EMC) (OTCQX: EMMBF) are pleased to announce that they have completed the previously announced plan of arrangement under the provisions of the Canada Business Corporations Act, pursuant to which, among other things, Aleafia Health has acquired all of the common shares of Emblem following Emblem’s amalgamation with Aleafia Health’s wholly-owned subsidiary, 11208578 Canada Inc., to form a new wholly-owned subsidiary of the Corporation continuing as “Emblem Corp.”
The Arrangement creates:
- The leading Canadian medical cannabis clinic and education centre network with 60,000 patients seen to date
- A high-value, highly differentiated product portfolio of oils, capsules and sprays
- Scaled production capacity and leading supply with three dedicated cultivation and product innovation facilities and the industry’s largest LP to LP cannabis supply agreement
- A national and global distribution platform with provincial supply agreements, retail partnerships and a global expansion
- Improved capital markets profile and liquidity, including up-listing to the TSX
- A combined entity with a robust cash position
“The acquisition of Emblem rapidly accelerates the execution of Aleafia Health’s strategy and positioning as a vertically integrated, diversified cannabis company with an integrated, highly differentiated consumer ecosystem,” said CEO Geoffrey Benic. “Emblem’s product leadership in the medical and adult-use sectors and highly coveted supply agreements will perfectly complement our cannabis production and clinic operations. This is a transformative transaction that positions Aleafia Health as a global cannabis leader.
TransCanna Increases Oversubscribed Private Placement to $16 Million, Adds Canaccord to Syndicate: TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) (FSE: TH8) is pleased to announce that as a result of significant demand, the Company’s brokered private placement of 5,000,000 Units at CDN$2.00 per Unit, as announced on February 20, 2019, is oversubscribed. Consequently, the Company has increased the Offering by sixty percent to a maximum of 8,000,000 Units to raise gross proceeds of CDN$16,000,000. Haywood Securities Inc. has been joined by Canaccord Genuity Corp. to co-lead a syndicate of agents, which includes Gravitas Securities Inc.
“We’re humbled by the demand for our private placement,” said Jim Pakulis, President and CEO of TCAN. “We have attracted a broad range of investors and are dedicated to executing our business plan as well as delivering value to our shareholders while continually growing our shareholder base.”
HEXO Q2 Gross Revenue Soars 1,269% From Q2 2018 Boosted by Strong Adult-Use Sales: HEXO Corp (TSX: HEXO) (NYSE-A: HEXO) is reporting its financial results for the second quarter of the 2019 fiscal year, the Company’s first full quarter following the legalization of adult-use cannabis in Canada. Total gross revenue for the quarter reached $16.2 million, an increase of 144% from the previous quarter.
Key highlights of second quarter of 2019 fiscal year:
- Gross revenue increased 1,269% as compared to the second quarter of fiscal 2018 and increased144% from the first quarter of fiscal 2019
- Gross adult-use revenue in Q2 exceeded revenues for the 2018 fiscal year by 200%
- 4,938 kg of dried cannabis produced, an increase of 39% over the first quarter of fiscal 2019
- 2,689 kg of gram and gram equivalents sold, an increase of 142% quarter over quarter
- Began trading on the NYSE American (“NYSE-A”) in January, 2019 under the symbol “HEXO”
- Over $54.2 million in net proceeds raised through a marketed public offering co-led by the Canadian Imperial Bank of Commerce (“CIBC”) and the Bank of Montreal
- Subsequent to quarter end, HEXO entered an agreement to acquire Newstrike Brands Ltd.
“This is an exciting time for HEXO as we continue to achieve milestones on the way to becoming a top two cannabis company,” said HEXO Corp CEO and co-founder, Sebastien St-Louis.
Liberty Health Continues its Rapid Expansion, Set to Open 12th Cannabis Dispensary in Florida: Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF), a provider of high quality cannabis, announced today that the Company is continuing its expansion in Florida and is on schedule to open its 12th dispensary in Gainesville, FL on March 20, 2019, subject to the receipt of Florida Department of Health approvals. The Gainesville area is also home to two Liberty facilities that house an aggregate of 228,880 square feet of cultivation space.
“We are very excited to open our 12th dispensary in the city of Gainesville, which has served as our home and we are delighted to continue to serve the Gainesville community,” said Victor E. Mancebo, interim Chief Executive Officer of Liberty. “We continue to aggressively pick up momentum we had in the tail end of 2018, and in 2019 we have announced the opening of three dispensaries, marking this the fourth to open this year. Our Gainesville location will be designed like all of our other sites to bring a contemporary wellness environment with focus on premium patient service.
Aurora Cannabis Appoints Billionaire Activist Investor Nelson Peltz as Strategic Advisor: Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) today announced that it has appointed Nelson Peltz as a Strategic Advisor. Mr. Peltz and Aurora will work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments. Mr. Peltz will also advise on the Company’s global expansion strategy.
“Nelson is a globally recognized business visionary with a strong track record of constructive engagement to generate accelerated, profitable growth and shareholder value across many industry verticals that are of great interest to us,” said Terry Booth, CEO. “Like us, Nelson also takes a long-term view of value creation to benefit all stakeholders. We look forward to working with Nelson to further extend our global cannabis industry leadership by aligning Aurora with each of the major market segments cannabis is set to impact.”
Mr. Peltz, added, “I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals. I also believe that Canadian licensed producers, and Aurora, in particular, are well positioned to lead in the development of the international cannabis industry as regulations evolve, with a strong, globally replicable operating model. I look forward to working with Terry and the extended Aurora team to evaluate its many operational and strategic opportunities, including potential engagement with mature players in consumer and other market segments.”
Planet 13 and Hall of Fame Boxing Legend Mike Tyson Partner on Tyson Ranch Nevada Launch: Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF), a leading vertically-integrated Nevada cannabis company, announced today that it has signed a Purchase Agreement with Mike Tyson’s cannabis venture, Tyson Ranch, to be the exclusive launch partner of Tyson Ranch products in Nevada. The Agreement also includes marketing appearances by ‘Iron Mike’ at the Planet 13 Cannabis Entertainment Complex. Tyson Ranch products will be available on Superstore shelves on April 13th with Mike Tyson attending the launch, offering autographs, pictures, and raffling memorabilia and prizes for Planet 13 customers.
“With thousands of consumers and cannabis aficionados from all over the world coming through our doors every single day the Planet 13 Cannabis Entertainment Complex offers brand companies a unique venue to launch their brands and rapidly build a national and global reputation. We are honored that Mr. Tyson has chosen the Planet 13 SuperStore for the Nevada launch of Tyson Ranch and appreciate the opportunity to be the exclusive launch partner for this widely anticipated brand, in Nevada,” said Bob Groesbeck, Co-CEO of Planet 13. “With our Phase II expansion underway, we expect the SuperStore’s national and global reputation to continue to accelerate making Planet 13 the perfect place to build a nationwide brand.”
Mike Tyson, the founder of Tyson Ranch, added. “Tyson Ranch is all about going the extra step to offer truly great cannabis. The Planet 13 Cannabis Entertainment Complex offers customers an ultra-premium cannabis experience that dovetails perfectly with Tyson Ranch’s belief that not all cannabis is created equal.”
Emblem Receives Final Order from Ontario Superior Court Approving Aleafia Health Merger: Emblem Corp. (TSXV: EMC) (OTCQX: EMMBF) is pleased to announce that it has received a final order from the Ontario Superior Court of Justice (Commercial List) approving the previously announced plan of arrangement with Aleafia Health Inc. (TSXV: ALEF) (OTCQX: ALEAF) described in the joint press release issued by Emblem and Aleafia on December 19, 2018.
Closing of the Arrangement remains subject to customary closing conditions, including the final approval of the TSX Venture Exchange (“TSXV”). Assuming the satisfaction or waiver of these remaining closing conditions, it is anticipated that the Arrangement will be completed on or around March 14, 2019.
TransCanna Adds Seasoned Hospitality, Technology and Real Estate Expert to their Board of Directors: TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is pleased to announce the appointment of new Director, Mr. Steve Giblin. Mr. Giblin is an accomplished leader in the Global hospitality, technology, and real estate industries with a demonstrated track record of value creation.
Mr. Giblin has strong C suite relationships with Marriott, Hilton, and Radisson brands and he managed the Silverbirch and Delta hotel real estate portfolios for the British Columbia Investment Management Corporation. As CEO of Silverbirch, he grew revenues from $280m up to $500m and increased the portfolio value over 50%. He has worked closely with other companies including established brands like that of Bentall Kennedy, Great West Life and general contractors, Ellis Don, PCL and Bird.
“We’re extremely pleased to welcome Steve to our team. His Expertise managing complex businesses in competitive markets and the breadth of his experience will assist us in our growth initiative and follow through on our corporate governance initiatives,” stated Jim Pakulis CEO.
HEXO to Acquire Newstrike Brands for $263 Million, Deal will Include Branding Relationship with The Tragically Hip: HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) and Newstrike Brands Ltd. (TSXV: HIP) (OTCPK: NWKRF) are pleased to announce that they have entered into a definitive arrangement agreement under which HEXO will acquire, by way of a plan of arrangement under the Business Corporations Act (Ontario), all of Newstrike’s issued and outstanding common shares in an all-share transaction valued at approximately $263 million.
- Capacity boost with state-of-the-art cultivation infrastructure: The Transaction gives HEXO the capacity to produce approximately 150,000 kg of high-quality cannabis annually. The Transaction also provides HEXO access to four cutting-edge production campuses totaling close to 1.8 million sq. ft. of near-term cultivation space and diversified growing and production techniques. This is in addition to HEXO’s 579,000 sq. ft. facility for a manufacturing and product development centre of excellence in Belleville, Ontario.
- Diversified domestic market penetration: Combined, HEXO and Newstrike have established distribution agreements in 8 provinces including Ontario, Quebec, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, and Prince Edward Island, allowing broad consumer access to HEXO’s products across Canada.
- Premium indoor facility: Newstrike’s licensed indoor facility provides HEXO with access to diversified growing techniques and positions HEXO for flexibility for international exports as global cannabis markets continue to open.
- Accretive synergies: The combined entity is estimated to realize annual synergies of $10 million, allowing HEXO to operate more efficiently with a commitment to continued excellence.
“We’re thrilled to welcome the Newstrike team into the HEXO family. Jay Wilgar (CEO of Newstrike) and his team have built incredible relationships, including teaming up with The Tragically Hip, and they share HEXO’s vision of bringing exceptional branded cannabis experiences to adults everywhere,” said Sebastien St-Louis, CEO and co-founder of HEXO Corp “With Newstrike, we’re adding talented employees and infrastructure to take HEXO to the next level on our journey to become one of the largest cannabis companies in the world. We’re extremely proud of our record of execution, and today are committing to achieving over $400 million in net revenue in 2020.”
Supreme Cannabis Takes First Step Towards Securing Cannabis Production License in Malta: The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) today announced that the Company has signed a letter of intent with Malta Enterprises, the economic development agency of Malta.
- Letter of intent is the first step to obtain a cannabis production license in Malta.
- Malta is strategically located to serve export markets throughout Europe.
“We’re pleased to announce that we have secured a letter of intent from Malta Enterprises, taking another step forward in our global growth strategy. Malta is not only a strategic hub for Europe, it is also home to robust existing pharmaceutical and nutraceutical manufacturing industries with a deep pool of expertise,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company. “Using the intellectual property and expertise we’ve gained in Canada, we intend to deliver high-quality cannabis products to medical patients in multiple international markets.”
Aurora Cannabis Begins Selling Cannabis Oil in Germany: Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) today announced that it has commenced sales of cannabis oils to German pharmacies following receipt of all necessary approvals from the Canadian and German regulatory authorities. Pedanios 5/1 drops have become the first extract derived oil product compliant with the German monograph for in-pharmacy preparation.
- High-Margin Derivative Products Accelerating European Revenue Growth.
“Having established early mover advantage in selling cannabis oils in Germany, we are exceptionally positioned to extend our market leadership and accelerate growth of our European operations,” said Neil Belot, Chief Global Business Development Officer. “As our global production capacity continues to ramp up, we are able to strategically allocate more product from our EU GMP certified cultivation facilities to this higher margin market that continues to be significantly undersupplied.”
Cronos Group Closes $2.4 Billion Altria Investment, Altria Now Largest Shareholder in Cronos: Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) today announced that the C$2.4 billion equity investment in the Company by Altria Group, Inc. (NYSE: MO) has closed. As previously announced, Altria’s investment represents an approximate 45% ownership interest in Cronos Group. Altria also has a warrant to acquire additional ownership in Cronos Group, which is exercisable over the next four years. If exercised in full today, the warrant would increase Altria’s ownership in Cronos Group to approximately 55% and provide Cronos Group with additional proceeds of approximately C$1.4 billion.
- Four New Directors Join Cronos Group Board.
- Jerry Barbato Appointed Chief Financial Officer of Cronos Group.
- William Hilson Appointed Chief Commercial Officer.
“We are delighted to close this transaction and kick-off a relationship that we expect to lead to significant growth and value creation,” said Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer. “Altria’s investment and the services they will provide to Cronos Group will enhance our financial resources, and allow us to expand our product development and commercialization capabilities, and regulatory expertise to better position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry. We look forward to the many opportunities we expect this relationship to create.”
HEXO is the First Cannabis Company to Join Food & Consumer Products of Canada: HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO) is pleased to announce it is the first cannabis company to join Food & Consumer Products of Canada (FCPC), the largest voice of the Canadian food, beverage, and consumer products industry. FCPC exists to help its members deliver safe and affordable products that enrich people’s lives.
“HEXO is thrilled to be the first cannabis company to join the Food & Consumer Products of Canada, an established and industry-leading association in the consumer-packaged goods space,” said Sébastien St. Louis, HEXO Corp’s CEO and co-founder. “We look forward to working with FCPC and all their members to forge new relationships and potential partnerships. It is an exciting time to be in the ever-evolving cannabis industry.”
Aleafia Health Set to Uplist to the TSX Big Board Exchange: Aleafia Health Inc. (TSXV: ALEF) (OTCQX: ALEAF) (FRA: ARAH) announced today that the Company has received conditional approval from the Toronto Stock Exchange (“TSX”) to graduate from the Toronto Venture Exchange (“TSXV”) and list its common shares on the TSX under the symbol “ALEF”. Listing on the TSX is subject to TSX final approval which is conditional upon the completion of the Company’s previously announced acquisition of Emblem Corp. (TSXV: EMC) (OTCQX: EMMBF). In conjunction with listing on the TSX, the common shares will be voluntarily delisted from the TSXV prior to the commencement of trading on the TSX.
“Graduating to the TSX, one of the world’s largest stock exchanges is a major milestone for Aleafia Health. Coming off the heels of our recent recognition as the top performing company of the year on the entire TSXV, this achievement further demonstrates our executional capabilities and will enable us to address an even wider investor audience, both domestically and internationally,” said Aleafia Health CEO Geoffrey Benic.
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