Here on the Marijuana Minute, you will find the top stories from around the industry in this week’s Cannabis Stock News Recap for the week of April 15th – 21st, 2019.
Canopy Growth to Acquire Leading U.S. Multi-State Operator Acreage Holdings
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) and Acreage Holdings, Inc. (CSE: ACGR.U) (OTCQX: ACRGF) (FSE: 0ZV) are pleased to announce that they have entered into a definitive arrangement agreement that grants Canopy Growth the right to acquire 100 percent of the shares of Acreage, with a requirement to do so at such time as cannabis production and sale becomes federally legal in the United States, subject to obtaining the requisite prior approval of the shareholders of each of Acreage and Canopy Growth, respectively, as well as the approval of the Supreme Court of British Columbia.
- Proposed Deal Complements Canopy Growth’s U.S. CBD Strategy With An Accelerated Pathway Into U.S. Cannabis Markets, Once Federally Permissible
- Deal Structure Expected to Provide Improved Access to Capital for Acreage, Paving Way for Accelerated Expansion
Cannabis Behemoth Canopy Growth is Close to Acquiring Acreage Holdings
The rumour mill is running on overdrive this evening with reports surfacing over the past few hours indicating that Canadian Cannabis titan Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) is set to acquire one of the largest U.S. multi-state operators Acreage Holdings (CSE: ACRG.U) (OTCQX: ACRGF) in a mega-deal that will surely send shockwaves through the entire North American Cannabis sector.
According to a recent report from CNBC, the two companies have been in serious discussion for several weeks and had plans to speak via conference call this evening to finalize the deal.
Canopy Growth Acquires Spanish Licensed Cannabis Producer Cafina
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is pleased to announce that it has completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. The acquisition lays the foundation for Canopy Growth to expand its European production footprint into one of the most ideal growing regions in the world, complementing the Company’s existing 430,000 square foot licensed production site in Odense, Denmark, as well as its world-class ISO 13485 internationally certified Storz and Bickel facility in Tütlingen, Germany.
“Operating multiple production assets within Europe will allow us to increase revenue in the EU free of supply constraints,” commented Mark Zekulin, President & Co-CEO, Canopy Growth.
Aphria Reports Q3 Net Revenue of $73.6 Million, Up 617% From Prior Year
Aphria Inc. (TSX: APHA and NYSE: APHA) today reported its results, for the third quarter and nine months ended February 28, 2019. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.
- Provides update regarding Green Growth Brands bid
- Net revenue of $73.6 million up 240% from prior quarter and 617% from prior year period
“I am proud of the efforts of our over 1,000 employees worldwide as we continue to position Aphria for future growth and success in the global medical and adult-use cannabis industry,” stated Irwin D. Simon, Aphria’s Chairman and Interim Chief Executive Officer.
Aphria Receives German Cannabis Cultivation License
Aphria Inc. (TSX: APHA and NYSE: APHA) today announced that its German subsidiary Aphria Deutschland GmbH has secured the previously announced license for the domestic cultivation of medical cannabis from the German Federal Institute for Drugs and Medical Devices, following the conclusion of a mandatory 10-day standstill period for public contracts. Aphria was granted a cultivation license for four of the nine total lots awarded by BfArM and is awaiting the completion of the tender process for the four remaining lots under review, one of which was provisionally awarded to Aphria Germany.
“Aphria thanks the BfArM for their diligent examination and validation of our approach for domestic cultivation with this license,” said Hendrik Knopp, Managing Director of Aphria Germany.
Aleafia Health Launches Symbl Atmosphere Oral Cannabis Spray for Adult-Use Market
Aleafia Health Inc. (TSX: ALEF) (OTCQX: ALEAF) (FRA: ARAH) today announced the launch of Symbl Atmosphere, the Company’s first adult-use oral metered-dose cannabis spray. The first order of Symbl Atmosphere has been placed by the BC Liquor Distribution, the sole adult-use cannabis wholesale distributor and operator of public retail stores in Canada’s third largest province. The Company expects to ship the initial order today.
- Company Expects to Ship First Product Order to BC Cannabis Store Today
- Product Reinforces Health & Wellness Adult-use Product Strategy
- Company Adding 50,000 kg Extraction Capacity to Meet Product Demand
Aleafia Health to add 50,000 kg Extraction Capacity at Paris, ON Facility
Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA: ARAH) will add 50,000 kg of extraction capacity with the Phase II expansion of the Company’s processing facility in Paris, ON. The expansion will, when operational, see the Company’s products and cultivation division, Aleafia Campus, maintain robust combined extraction and cultivation footprints across three facilities.
- Company Expecting to Complete Phase II Expansion in Q3 2019
- Phase II 50,000 kg Extraction Capacity Expansion
TransCanna Closes 196,000 Sq Ft Vertically Integrated Cannabis Facility Acquisition
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) announces that it completed the purchase of a 196,000 square foot vertically integrated cannabis facility.
“A tremendous effort by the TransCanna team on closing arguably the largest vertically integrated cannabis-focused facility in California,” stated Jim Pakulis, CEO of TransCanna. “Simultaneous to putting our efforts into purchasing the facility, we’ve been searching extensively for the key individuals who will be overseeing the day to day operations. We’ve made great strides over the past several weeks and should be able to start making announcements by the end of the month.”
TransCanna Completes Sub-Lease of 10,000 Sq Ft Cannabis Facility in California
TransCanna Holdings Inc.(CSE: TCAN) (XETR: TH8) announces that it has executed a sub-lease agreement for 10,000 square feet of a multipurpose facility located in Adelanto, CA. The terms of the sub-lease agreement is four years at US$2.00 per square foot per month. The facility is of superior quality and has existing armed security personnel at all times at the complex.
“As we’ve represented since the commencement of TransCanna, it’s crucial to have a main facility, which we now have with the acquisition of the 196,000 square foot vertically integrated facility in Modesto, and up to five satellite facilities located strategically throughout the state,” stated Jim Pakulis, CEO of TransCanna.
Aurora Cannabis Production Facility Coming to Germany
Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) confirmed today that, further to its press release dated April 5, 2019, the public appeal process related to the German cannabis production tender has been completed, and Aurora’s contract with the German Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte BfArM) has now been finalized.
“We are thrilled with the positive outcome of the tender process and excited to start construction on our latest production facility,” said Neil Belot, Chief Global Business Development Officer.
Aurora Cannabis to Acquire Remaining Interest in Hempco Food and Fiber Inc.
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) and Hempco Food and Fiber Inc. (TSXV: HEMP) today announced that the companies have entered into a binding letter agreement in regard to the basic terms and conditions upon which Aurora will acquire all of the issued and outstanding common shares of Hempco not already owned by Aurora. In consideration of the transaction, Aurora has agreed to pay $1.04 per Hempco Share, payable in common shares of Aurora, reflecting a valuation of approximately C$63.4 million on a fully diluted basis.
- Strengthens Execution of Aurora’s Global Hemp and CBD Strategy
- Strategic Rationale
Organigram Q2 Net Revenue Surges 693% to $26.9 Million
Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc., a leading licensed producer of cannabis, is pleased to announce its results for the second quarter ended February 28, 2019. The Q2 2019 includes the first full quarter of adult-use recreational sales for the Company.
- Record net revenue of $26.9 million or more than double the net revenue of Q1-2019
- Adjusted gross margin of $16.0 million or 60%
- Adjusted EBITDA of $13.3 million or adjusted EBITDA margin of 49%
“We executed very well again this quarter and have established Organigram as one of the leaders in the Canadian adult-use recreational market,” said Greg Engel, Chief Executive Officer.
Green Growth Brands to End Hostile Takeover Bid of Aphria
Green Growth Brands Inc. (CSE: GGB) today announced that it has reached an agreement with Aphria Inc. to shorten the expiry time for acceptance of its formal offer to acquire all of the issued and outstanding common shares of Aphria (TSX: APHA and NYSE: APHA) from 5:00 p.m. (Toronto time) on May 9, 2019 to 5:00 p.m. (Toronto time) on April 25, 2019.
‘We are pleased to be buying back 27,300,000 shares owned by GA Opportunities significantly below the market price and the expected sale of our toehold position of 3 million shares of Aphria, all of which will benefit our shareholders,” said Peter Horvath, CEO of Green Growth Brands.
MariMed Reports Q4 and Full Year 2018 Financial Results, Q4 Revenue Surges 118%
MariMed Inc. (OTCQB: MRMD) one of the largest multi-state cannabis and hemp operators in the U.S., today announced 2018 4th Quarter and Full Year results. Continued Strong Revenue Growth– In the fourth quarter ended December 31, 2018, revenues grew 118% to $3.44 million, compared to $1.58 million in 2017.
For the full year 2018, revenues grew to $11.85 million, up 95% over $6.07 million reported for 2017; Adjusted EBITDA grew 53% to $2.4M. Reported net loss for the year of $13.6 million was the result of non-cash amortization relating to equity compensation granted during the year ($13.97 million). Loss per share was $0.71 for the full year.
SOL Global’s CBD and Hemp Portfolio Company, Heavenly Rx, Closes Private Placement Financing of Over $12 Million
SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) (Frankfurt: 9SB) is pleased to announce that it has completed multiple tranches of a non-brokered private placement financing of common shares of its subsidiary, Heavenly Rx Ltd., for aggregate gross proceeds of $12,586,250. An aggregate of 125,862,500 common shares in the capital of Heavenly Rx was issued and sold at a price of $0.10 per Heavenly Share. As a result of this financing, SOL Global now holds 34.40% of the issued and outstanding Heavenly Shares with the subscribers from the Offering collectively holding the remaining 65.60%. The Heavenly Shares were sold to accredited investors pursuant to applicable securities regulations and are subject to an indefinite hold period.
Acreage Holdings Enters Nevada Market With Acquisition of Deep Roots Medical
Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) (FSE: 0ZV) announced that on April 17, its subsidiary, High Street Capital Partners, LLC entered into an agreement to acquire 100% of Deep Roots Medical LLC, a vertically integrated cannabis operator in Nevada, for a total deal value of $120 million to be paid in common units and cash. Deep Roots marks Acreage’s entry into Nevada, increasing the company’s total state footprint to 20 (including pending acquisitions) – the largest in the US cannabis industry. With a population of three million, and tourism that attracts 43 million visitors per year, Nevada is estimated to generate nearly $800 million in legal cannabis sales by 2022, according to Arcview Market Research.
Evolve Launches World’s First U.S. Cannabis ETF
Evolve Funds Group Inc. is pleased to announce that it has filed its final prospectus to launch the Evolve U.S. Marijuana ETF. USMJ will be the world’s first ETF focused on the U.S. marijuana industry. Units of ticker symbol USMJ have been approved for listing on the NEO Exchange and will begin trading on April 17, 2019.
- Evolve U.S. Marijuana ETF Will Begin Trading on the NEO Exchange on April 17, 2019
“The cannabis opportunity in the U.S. is similar to that of Canada a couple of years ago, but in many respects has the potential to be exponentially larger,” said Raj Lala, President and CEO at Evolve.
Trulieve Offering Relief to Patients in Southwest Florida, Opens 27th Florida Dispensary
Trulieve Cannabis (CSE: TRUL) (OTCPK: TCNNF), a leading and top-performing cannabis company in the United States, is opening the doors of its 27th storefront in Florida on Tuesday with a new dispensary in Bonita Springs. The store will offer relief to patients throughout Collier County, including nearby Naples, Estero, Cape Coral, and more.
- With nearly 210,000 patients on the registry and counting, Trulieve continues to match the state’s brisk growth pace
“Our Bonita Springs store is one we’ve looked forward to opening for a while; we have always been committed to moving as quickly as possible opening new locations to provide for the rapidly growing patient base,” said Trulieve CEO Kim Rivers.
TerrAscend Issues Full Year 2019 Revenue Guidance
Key drivers of 2019 revenue include:
- Anticipated revenue attributable to the acquisition of The Apothecarium (anticipated closing in Q2 2019);
- Continued growth in Canada in both the medical and adult-use markets, fueled by the ongoing expansion of the Company’s Mississauga facility (to be completed in Q2 2019) and commencement of pharmaceutical and nutraceutical compounding activities at the Drug Preparation Premises (DPP);
- Worldwide sales growth of hemp-derived products developed, manufactured, and distributed by Arise Bioscience; and
- Export of THC and hemp-based CBD products to Germany and other international markets once GMP certification is obtained (expected in the coming weeks).
MedMen Releases Preliminary Third Quarter 2019 Systemwide Revenue Results
MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced today unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019. Across the Company’s operations in California, Nevada, New York, Arizona and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%1, compared to 53% in the previous quarter. The Company is expected to post its fiscal 2019 third quarter results in May 2019.
“We will continue to scale our retail footprint in the most strategic and desirable locations, providing us first mover advantage and contributing to MedMen’s top-line growth,” stated Michael Kramer, Chief Financial Officer.
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