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 29th – May 5th, 2019.
Canopy Growth Acquires Germany’s C3 Cannabinoid Compound Company
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is pleased to announce that it has acquired German-based, Bionorica SE-founded C3 Cannabinoid Compound Company (“C3“) in a transformative deal that will see established single cannabinoid medicines brought together with the world’s leading full-spectrum medical cannabis offering.
The all cash-acquisition for €225.9 million (CDN $342.9 million) furthers Canopy Growth’s expansion into European markets with prescription medicines and gives the Company immediate access to a wealth of knowledge and intellectual property that C3 has developed in its nearly 20 years of research and development into synthetic and natural cannabis medical products.
Canopy Growth to Transform Building for New York Hemp Industrial Park
The Company has secured a 308,000 sq. ft. facility on a 48-acre property in Kirkwood, NY. Design activities will commence immediately with construction commencing this summer. The vision for the property is to build the infrastructure necessary to support hemp-derived cannabinoid extraction and related manufacturing together with providing an opportunity for participation by other businesses in the hemp industry.
Aleafia Completes 60,000 kg Outdoor Grow Site Build-Out, Releases Set of Grow Site Photos
Aleafia Health Inc. (TSX: ALEF) (OTCQX: ALEAF) (FRA: ARAH) has brought its planned outdoor grow expansion to a plant-ready state with all security measures including fencing and cameras now in place. The Outdoor Grow expansion is at the same location as the Company’s licensed and operational Port Perry Indoor Grow facility.
The Company anticipates submitting its final evidence package to Health Canada in connection with its now active Health Canada Licence Amendment application this week. The final submission includes detailed submissions evidencing the implementation of all measures required by Health prior to the awarding of a Licence Amendment. Subject to the receipt of a Health Canada approval, the Company anticipates that it’s Outdoor Grow will produce approximately 60,000 kg annually of dried flower, with a full growing season, at a cost per gram significantly lower than traditional greenhouse or indoor growing.
Aleafia Health Reports 2018 Financials, Pro-Forma Revenue Increases 327%
Aleafia Health Inc. (TSX: ALEF) (OTCQX: ALEAF) (FRA: ARAH) is pleased to provide a corporate update and report its financial results for the year ended December 31, 2018. Aleafia Health has filed today its audited consolidated financial statements and related management’s discussion and analysis, both of which are available on Aleafia Health’s profile at www.SEDAR.com. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.
- Aleafia & Emblem Y/Y Pro-forma Revenue Increases 327% to $11.5M
- Buildout of Three Production Facilities Nearing Completion
- Anticipated Annual Cannabis Cultivation & Extraction Capacity to Reach 138,000 kg, 50,000 kg Respectively
“2018 saw Aleafia Health build the foundation for a breakthrough 2019 and beyond. We believe that our strategically placed assets, strong management team and distribution channels will allow us to scale our global mission of growing, processing and selling high-margin, value-added cannabis health and wellness products,” said Aleafia Health CEO Geoffrey Benic. “It is a testament to the executional capabilities and commitment of our team that Aleafia Health has grown from a pre-revenue business to one of the largest licensed producers in under one year.”
TransCanna Creates Hemp Division; Set to Acquire Hemp CBD Brand Biovelle
Transcanna Holdings Inc. (CSE: TCAN) (FSE: TH8) is pleased to announce today the execution of a non-binding Letter Of Intent dated April 30th, 2019 to acquire the branding asset package, Biovelle, a hemp-based CBD coconut oil from an arm’s length third party.
“With the passing of the Farm Bill and the explosive growth of the hemp sector we decided to expedite our formation of our hemp related division. Acquiring Biovelle is the perfect fit. It represents a clean, natural healthy way to experience hemp derived CBD combined with the benefits of coconut oil, and it’s also an excellent catalyst to create a complete line of Biovelle products,” stated Jim Pakulis, CEO of TransCanna.
TransCanna Applies For Manufacturing, Distribution & Transportation Licenses for Adelanto Facility
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) applied for a permanent manufacturing, distribution and a transportation license this week with the city of Adelanto, CA.
“Our immediate focus is to be able to have our city and state licenses in place in Adelanto as soon as possible. Subsequent to the GoodFellas acquisition we will be able to prepare and package the Daily Cannabis Brand pre-rolls at the facility and then deliver the products to the dispensaries without the need to bring in a third party,” stated Jim Pakulis, CEO of TransCanna.
TGOD Approved for Cannabis Greenhouse by Hamilton City Council
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) is pleased to confirm that the Hamilton City Council and the Company have finalized and signed a settlement offer, and that the Local Planning Appeal Tribunal approved the settlement at a meeting on May 2, 2019. The facilities in Ancaster, Ontario will be capable of growing 17,500 kgs of premium certified organic cannabis annually.
“This completes this chapter of our journey,” said Brian Athaide, CEO of TGOD. “We look forward to growing and producing high-quality, certified organic cannabis right here in our home town. We are committed to the City and look forward to working with our neighbours, local businesses and the community.”
Green Organic Dutchman Opens Second Cannabis Dispensary in Jamaica
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) is pleased to announce, in conjunction with Epican Medicinals (“Epican”), the opening of its second legal cannabis retail store in Jamaica. Located on Montego Bay’s “Hip Strip”, the flagship location will open for business on May 4, 2019.
“We are proud of what the team in Jamaica has accomplished. Epican’s Montego Bay store is a bright and well-designed space ideally located to serve local and visiting patients with Epican’s locally produced premium organic cannabis,” commented Brian Athaide, CEO of TGOD. “Our Kingston location witnessed increasing sales volumes; setting the stage for the grand opening of an Epican Herb House in Jamaica’s largest tourist hub. It is an important milestone toward further expansion for Epican and TGOD in Jamaica.”
You Only Load Once: What’s in the New Marijuana ETF?
The marijuana industry remains a breeding ground for some of the fastest growing companies, and for those willing to invest in these companies it can be a far from obvious choice as to which will be most profitable. The top players are always a good choice, but smaller cap companies can offer increased upside as well as a range of new opportunities. It seems many investors these days prefer exchange-traded funds (ETFs) as their vehicles of choice and as the most secure way to diversify without absurd management fees.
New marijuana ETFs emerge every so often, providing unique sets of exposure for investors to consider. AdvisorShares Pure Cannabis ETF (NYSE MKT: YOLO) is an active fund managed by Dan Ahrens and his team. They have selected a mix of cannabis stocks that they wager will outperform the overall cannabis market.
Another Wall Street Analyst Gives These Marijuana Stocks a BUY Rating
Desjardins added more gasoline to the Canadian Marijuana stocks fire, as they initiated their coverage on HEXO Corp. (TSX: HEXO) (NYSE-A: HEXO), Aurora Cannabis (TSX: ACB) (NYSE: ACB), and Canopy Growth (TSX: WEED) (NYSE: CGC). Since the start of 2019, shares of HEXO were up as much as 148%, Aurora Cannabis 111% and Canopy Growth 98%. It seems that Desjardins believes there is still plenty of fuel left in all of these stocks as they gave all three buy ratings. HEXO seems to be the most noteworthy of their three picks, and they have set their price target at USD $10.41 per share, which is a 25.72% premium above today’s closing price of USD $8.28.
These picks may be worth looking at, but first, let us investigate why Desjardins is so bullish on the few and if the reasons can hold their weight.
Acreage Holdings Posts CEO Letter to Shareholders and Responses to FAQ in Regards to Canopy Growth Deal
Acreage Holdings, Inc. (CSE: ACRG.U) (OTC: ACRGF) (FSE: 0ZV) announced it has publicly posted a letter to shareholders from Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage regarding the proposed transaction with Canopy Growth Corporation announced on April 18, 2019 along with responses to various frequently asked questions (“FAQ”) received by Acreage in connection the Proposed Transaction.
To access the Letter and the FAQ, please visit Acreage’s investor relations website at investors.acreageholdings.com, where you will find links to the documents on the main menu bar.
Organigram Receives Perimeter Licence Amendments From Health Canada
Organigram Holdings Inc. (TSXV: OGI) (OTCQX: OGRMF), the parent company of Organigram Inc., a leading licensed producer of cannabis is pleased to announce that it has received an expanded cultivation license from Health Canada in line with its previously announced Phase 4A and 4B expansion plans for its Moncton Campus.
The scope of the amendment includes approval of the following:
“We are proud to continue our legacy of delivering on our commitments” says Greg Engel, CEO, Organigram. “The completion of this phase of our expansion reinforces our commitment to innovation, efficiency and best-in-class operations. Being on time, this expansion reinforces our commitment to shareholders and shows our abilities with industry-leading execution.”
Curaleaf to Acquire Leading U.S. Cannabis Wholesale Brand for $1.27 Billion
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), a leading vertically integrated cannabis operator in the United States, today announced it has signed a definitive agreement to acquire the state-regulated cannabis business of Cura Partners, Inc. (“Cura”), owners of the Select brand, in an all-stock transaction valued at C$1.27 billion or US$948.8 million. The acquisition includes Select’s manufacturing, processing, distribution, marketing and retailing operations and all adult-use cannabis products marketed under the Select brand name, including all intellectual property. Based in Portland, Oregon, Select is the most well-known cannabis wholesale brand in the country. With its THC products sold in more than 900 retailers, it is the leading cannabis brand in key Western states, including California, Arizona, Oregon and Nevada.
WeedMD Reports Fiscal Year 2018 Financial Results, Revenue Surges 465%
WeedMD Inc. (TSXV: WMD) (OTCQX: WDDMF) (FSE:4WE), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to report its financial results for the fourth quarter and fiscal year ending December 31, 2018.
WeedMD reports revenues of $8.2M in its second year of operations representing a year-over-year increase of 465%. Revenues were driven by a combination of increased cannabis sales to medical patients, supply agreements for Canada’s adult-use market in addition to the sale of wholesale cannabis and genetics to other licensed producers. The Company is well financed with a strong cash balance of $21.2M as of December 31, 2018.
iAnthus Closes $25 Million Private Placement
iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF), which owns, operates, and partners with best-in-class regulated cannabis operations across the United States, is pleased to announce that it has completed the private placement offering of an incremental US$25.0 million of unsecured convertible notes and corresponding warrants (the “Offering”), as an add-on to the private placement offering of US$35 million convertible note units announced on March 18.
TerrAscend Receives EU GMP Certification, Set to Become the First Cannabis Company with Sales in the USA, Canada, and Europe
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) today announced that its manufacturing facility in Mississauga, Ontario, Canada has been issued a Good Manufacturing Practice (“GMP”) certificate in accordance with the rules governing medicinal products in the European Union (“EU”). The EU GMP certification was awarded by the responsible agency, Arzneimittelbehörde, in North Rhine-Westphalia, Germany. Additionally, the Company has entered a comprehensive sales and distribution agreement with iuvo Therapeutics GmbH (“iuvo”), a German pharmaceutical wholesaler with a cannabis-specific import and distribution license. TerrAscend expects to begin distribution through iuvo this quarter.
Emerald Health Reports Q4 & Fiscal 2018 Financial Results, Highlights Q1 Sales Growth
Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH) (OTCQX: EMHTF) today reported financial results for the fourth quarter and year ended December 31, 2018.
“In the past year we have worked closely with our 50/50 venture partner to bring into full production one of the single largest cannabis growing assets in the world. Pure Sunfarms’ 1.1 million square foot facility is now rapidly increasing production and sales. By leveraging our own technical expertise and infrastructure with strong partners in 2018, we solidified key building blocks with respect to production/supply, distribution, processing in the form of large-scale extraction, softgel encapsulation, and product innovation,” said Avtar Dhillon, MD, President and Executive Chairman of Emerald.