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Halo Announces Closing of the Previously Announced Acquisition of Mendo Distribution and Transportation (“MDT”)

Halo Announces Closing of the Previously Announced Acquisition of Mendo Distribution and Transportation (“MDT”)

Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that, further to the press release dated November 25, 2019, it has closed its acquisition of Mendo Distribution and Transportation, LLC (“MDT”).

Transaction Highlights

  • US$4.95 million acquisition of MDT to be paid for using Halo common shares (“Halo Shares”), preserving the Company’s strong cash position
  • US$5.75 million of unaudited gross revenues by MDT in 2019
  • Vertically integrating MDT into Halo is expected to enable the Company to:
    • Increase revenue and gross margins across all Californian operations
    • Extend distribution capability in Northern California
    • Launch new edible and white label product lines with Type N license onsite
    • Reduce overall distribution costs and potentially manufacturing & distribution tax rate

Based in Ukiah, California, MDT has been operating as a cannabis distributor since June 2018. Located in a two story, approximately 4,500 sq. ft. facility, MDT holds a Type 11 cannabis distribution license as well as manages a Type N license on site. In addition, Outer Galactic Chocolates LLC (“OGC”), the Type N licensee, has granted MDT the option to purchase all outstanding equity interest of OGC in exchange for Halo common shares.

Kiran Sidhu, CEO and Co-Founder of Halo, commented, “Halo is executing on its California verticalization strategy by obtaining this operational and revenue generating distribution license, large scale facility, and option to purchase an existing edibles business to expand Halo’s portfolio.” He continued, “We expect MDT will be a meaningful contributor to Halo’s growth in 2020 and beyond, as we build on our position as one of California’s leading cannabis companies.”

The Transaction

Pursuant to the terms of the transaction, the sole member of MDT has been issued an aggregate of 20,907,553 Halo Shares priced at CAD$0.315 (approx. US$0.237), being the volume weighted average trading price of the Halo Shares for the period ending on the close of markets on November 19, 2019 and representing the aggregate consideration of US$4,950,300 (CAD$6,585,879). This represents an increase of US$200,300 (CAD$266,479) from the purchase price announced in the Company’s press release dated November 25, 2019 due to positive changes in MDT’s balance sheet between the execution of the Agreement and Plan of Merger and Reorganization, and closing. US$2,000,000 (CAD$2,660,800) of Halo Shares will be issued to the sole member of MDT at closing, while the remainder (US$2,950,300 or CAD$3,925,079) will be held in escrow. Of the escrowed Halo Shares, the US$1,000,000 (CAD$1,330,400) million of Halo Shares will be held for a period of 12 months and subject to a claw back provision to protect from any unforeseen or undisclosed liabilities, while the other escrowed Halo Shares will be released in equal monthly installments over the next 12 months. To effectuate the transaction, MDT merged with Halo’s Northern Harvest, Inc. and MDT remains the surviving entity and will be wholly-owned by PSG Coastal Holdings LLC, an indirect wholly owned subsidiary of Halo.

About Halo
Halo is a global cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4.5 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the 205-hectare Bophelo cultivation zone.

With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories. Halo recently acquired Dispensary Track platform which will alleviate customer flow constraints experienced by dispensaries and enable direct consumer interaction.

For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but is not limited to, statements regarding the Transaction and the integration of MDT and impacts thereof.

By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.

Copyright Business Wire 2020

Published at Fri, 10 Jan 2020 13:36:35 +0000

Halo Announces Completion of the Previously Announced Acquisition of Precisa Medical Instruments Corp. and Concurrent Private Placement

Halo Announces Completion of the Previously Announced Acquisition of Precisa Medical Instruments Corp. and Concurrent Private Placement

Halo Labs Inc. (“Halo” or the “Company”) (NEO: HALO, OTCQX: AGEEF, Germany: A9KN) is pleased to announce that, further to the press release dated December 23, 2019, it has closed its acquisition (the “Acquisition”) of all of the issued and outstanding common shares in the capital of Precisa Medical Instruments Corp. (“Precisa”) and has completed its previously announced concurrent private placement of 3,333,334 Halo common shares (the “Concurrent Financing”).

Precisa owns the intellectual property related to and is focused on the development of the Accu-Dab THC and CBD oil oral delivery device. The Accu-Dab takes the form of a discrete pen that will allow users to pre-select various doses of measured THC or CBD from 0.01 mL to 0.60 mL for sublingual oral consumption. Through its convenient dial selection mechanism, the Accu-Dab allows for precise dispensation of THC or CBD product accurately and repeatedly to meet the consumer’s specific dosing needs.

Kiran Sidhu, CEO and Co-Founder of Halo, commented, “Halo is determined to be on the forefront of cannabis innovation through developing and launching new technology tailored for convenient consumption. With the launches of the DabTabsTM Go and the ShatterizerTM in early 2019, Halo is ending the year strong with the Accu-Dab, designed for even more discretion and accurate dosing.”

The Acquisition

Pursuant to the terms of a definitive acquisition agreement executed on December 23, 2019, as amended on December 27, 2019 (the “Agreement”), the Acquisition was completed by way of a share exchange wherein Halo, through its wholly owned subsidiary, Halo Accu-Dab Holdings Inc., acquired 100% of the issued and outstanding common shares in the capital of Precisa in exchange for 13,392,857 Halo common shares issued at a deemed price of C$0.28 per share. Upon completing of the Acquisition, Precisa became a wholly owned subsidiary of Halo Accu-Dab Holdings Inc. The Acquisition was a result of arm’s length negotiations between the parties to the Agreement.

Concurrent Private Placement

Pursuant to the Concurrent Financing, Halo issued 3,333,334 common shares at a price of CAD $0.30 per share for aggregate gross proceeds of C$1,000,000 (“Concurrent Financing”). Halo intends to use the proceeds of the Concurrent Financing to complete development and distribution of the Accu-Dab and for general working capital purposes.

The Halo common shares issued in connection with the Concurrent Financing are subject to a four month and one day statutory hold period pursuant to applicable securities laws. In addition, the 13,392,857 Halo common shares issued pursuant to the Acquisition, together with 3,000,000 of the Halo common shares issued pursuant to the Concurrent Financing, are subject to the terms of a voluntary escrow pooling agreement, dated December 30, 2019 among Halo and the holders of such shares, which restricts the aggregate daily resale volume of such shares.

For facilitating the Acquisition and the Concurrent Financing, the Company paid a finder’s fee to a third party through the issuance of 1,339,285 Halo common shares, being 10% of the Acquisition value, at a deemed price of C$0.30 per share. All Halo shares issued to such finder are subject to a four month and one day statutory hold period pursuant to applicable securities laws.

About Halo

Halo is a global cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo is a global leader in cannabis oil and concentrates, having produced over 4.5 million grams of oils and concentrates since inception. The Company has expertise across all major cannabis manufacturing processes, leveraging a variety of proprietary processes and products. The forward-thinking company is led by a strong management team with deep industry knowledge and blue-chip experience. The Company is currently operating in California and Oregon, as well as in Nevada with our partner Just Quality, LLC, and in Lesotho with the 205-hectare Bophelo cultivation zone.

With a consumer-centric focus, Halo will continue to market innovative, branded, and private label products across multiple product categories. Halo recently acquired Dispensary Track platform which will alleviate customer flow constraints experienced by dispensaries and enable direct consumer interaction.

For further information regarding Halo, see Halo’s disclosure documents on SEDAR at www.sedar.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Halo’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Halo’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but is not limited to, statements regarding the development and deployment of Accu-Dab, the intended use of proceeds of the Concurrent Financing.

By identifying such information and statements in this manner, Halo is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Halo has made certain assumptions. Although Halo believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Halo does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to Halo or persons acting on its behalf is expressly qualified in its entirety by this notice.

Published at Thu, 02 Jan 2020 13:38:56 +0000

Innovative Industrial Properties Appoints Mary Allis Curran, Former Bank Executive, to its Board of Directors

Innovative Industrial Properties Appoints Mary Allis Curran, Former Bank Executive, to its Board of Directors

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR), the first and only real estate company on the New York Stock Exchange  focused on the regulated U.S. cannabis industry, announced today the appointment of Mary Allis Curran to its board of directors.

“We are very excited to have Mary Curran join IIP’s board,” said Alan Gold, Executive Chairman of IIP. “Mary brings a wealth of experience and executive leadership from the financial services industry, in addition to public company board-level expertise. With her breadth of experience and proven success in developing highly effective risk management strategies and driving improvements in business performance, we look forward to her contributions as IIP continues to execute on its business model of being the leading provider of real estate capital for the regulated medical cannabis industry.”

Ms. Curran spent 25 years at MUFG Union Bank, N.A., during which time she held several executive level positions, including Executive Vice President, Corporate Banking Chief Risk Officer from 2011 to 2014, and Executive Vice President, Head of The Private Bank at Union Bank from 2006 to 2011. During her time with Union Bank, Ms. Curran worked closely with its board and management to build an infrastructure focused on a strong, proactive, integrated and effective risk management. Ms. Curran was also tasked with improving the performance of Union Bank’s Wealth Management practice, a business unit with offices throughout California, Washington and Oregon. Prior to 2006, she spent 17 years in leadership roles in commercial banking.

Mr. Gold added, “Drawing on her decades of senior management experience and success in driving business growth with prudent risk management, Mary is an excellent addition to our board, and will provide invaluable perspective as we continue on our growth path.”

Ms. Curran currently serves on the Board of Directors, Audit Committee and Enterprise Risk Committee of Banc of California, Inc. (NYSE: BANC), a financial institution. She also serves on the Board of Directors, Nominating/Governance Committee and Compensation Committee for Hunter Industries, a privately held global irrigation, landscape lighting and custom manufacturing company. In addition, Ms. Curran recently served as Chair of San Diego State University’s Campanile Foundation Board and Executive Committee, and currently chairs the university’s Nominating and Governance Committee and serves on the university’s Athletics Committee. Previous board service includes: Chair of the California Bankers Association where she remains involved on the Banker Benefits Board, and Chair of the San Diego Sports Commission. Ms. Curran is a current member of the Corporate Directors Forum, San Diego, The Corporate Director’s Roundtable of Orange County, Women Corporate Directors and the National Association of Corporate Directors (NACD). Ms. Curran is a NACD Governance Fellow, and holds a Bachelor of Science degree in Journalism from the University of Colorado, Boulder and a Master’s degree in Business from San Diego State University.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017. Additional information is available at www.innovativeindustrialproperties.com.

This press release contains statements that IIP believes to be “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward-looking statements. When used in this press release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Investors should not place undue reliance upon forward-looking statements. IIP disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Published at Tue, 31 Dec 2019 12:11:24 +0000

Mojave Jane Brands Reports Q4 and Year End 2019 Results

Mojave Jane Brands Reports Q4 and Year End 2019 Results

Mojave Jane (JANE.CN) (HHPHF) (FSE:OHCN), a California cannabis company, today announced that it has filed its consolidated audited financial statements for the quarter and fiscal year ended August 31, 2019. The consolidated financial statements and management discussion and analysis are available on SEDAR at www.sedar.com

Mojave Jane Brands Inc. (CNW Group/Mojave Jane Brands Inc.)
Mojave Jane Brands Inc. 

Operational Highlights

Subsequent to the quarter under review, the Company executed on a number of initiatives that significantly reduce operational expenses, while focusing the business of the Company on the following three strategic pillars:

  • Manufacturing: the Company decided not to complete the intended acquisition of CB Asset Management, but instead executed a binding LOI to acquire 100% of the member’s interests in Pacific Crest 4, LLC (PC4), which includes a Type 7 (volatile and non-volatile) manufacturing license, extraction and related equipment, operations, and property lease in Adelanto, California . This will enable the Company to consolidate all of its manufacturing and packaging activities under one roof, significantly reducing OpEx spend. The transaction, expected to close in January 2019 , is a foundational asset in Mojave Jane’s infrastructure, and will also house third-party manufacturing and white labeling, such as for beverage related products through its exclusive license with HAI Beverages. The total consideration for the Adelanto transaction is $1.2 million , of which $700,000 is in the form of a convertible debenture, as compared to $7.5 million for the CBAM transaction.
  • Brands: the Company is in the process of expanding the product portfolio of its premium chocolate brand CALIGOLD. Furthermore, the Company intends launching additional brands, supported by the manufacturing capabilities of the Adelanto property once this transaction has been completed (anticipated for January 2020 ).
  • Distribution/Delivery: subsequent to the quarter, the Company increased its ownership interest in California’s largest premier delivery service SpeedWeed (through parent company 2083 group), with an option to increase ownership to 40%. SpeedWeed since has launched its Direct to Consumer platform, which enables consumers to order the products they know and love directly from the brands themselves. While consumers always remain within a brand’s ecosystem, SpeedWeed takes care of fulfilment and powers the eCommerce capabilities. Through this model, brands can offer products at substantially more competitive prices, strengthening their competitive position versus California’s illegal market. At the same time, brands are able to increase margin, while margins to SpeedWeed increase significantly as well.

Other quarterly and subsequent highlights

  • The Company announced the reversal of the Bravo transaction. The Bravo vendors will return the 4.5 million shares issued in the transaction, while OpEx spend is significantly reduced.
  • In November 2019 , the facility leases in City of Industry and West Sacramento were terminated, again substantially reducing recurring operating costs.
  • In November 2019 , Mojave Jane suspended further development of its Cudahy facility as the company elects to consolidate operations and evaluate options for the Cudahy facility that include its sale, as well as further development.
  • The Company executed a subscription and acquisition of shares with the 2083 Group (“2083”) that provides for the Company to acquire 40% of 2083 for $2.6M in total consideration. To date, an ownership stake of approximately 20% has been established. 2083 owns and operates SpeedWeed, described in more detail above. 2083 also brings key social media and celebrity influencers to the relationship and manages the connections between the influencers and the Company’s brands and products.
  • During the period, the Company shifted its strategy away from large scale cultivation to focus on extraction, consumer brands, and distribution/delivery. As a result, the Company elected to evaluate the value of its CoachellaGro property. The Company recorded a related non-cash impairment charge of $4.4 million during the quarter. The evaluation of this asset is ongoing. Management believes its value to be sound, especially given its status of having rights to utilities (power), where other properties in the Coachella cannabis zone are not expected to have access to power for years to come. A strategic review is underway to determine the go forward strategy in relation to the CoachellaGro property.
  • Mojave recorded a number of non-cash impairment charges in relation to the restructuring of the Company (discontinued operations, fixed assets and goodwill, some of which are discussed above) totaling approximately $12.5 million . These impairments are described in more detail in the Company’s Management Discussion and Analysis, filed on www.sedar.com. While these impairments had a strong negative impact on operational results for the quarter under consideration, including the OpEx savings resulting from the restructuring, going forward the Company anticipates improving operational results.

Mojave Jane’s CEO Gary Latham commented:

“In the past few quarters, we have successfully refocused the strategic direction of Mojave . Much of the overhang from previous transactions and discontinued operations has now been cleaned up, which will result in a significant reduction of OpEx going forward. In 2020, our energy and capital deployment will be focused on operating our well differentiated assets to generate revenue and growth. Once completed, the Adelanto transaction sets us up for manufacturing of our own products, as well as enables us to engage in white label production for third parties. At the same time, our investment in SpeedWeed provides us with direct to consumer distribution capabilities. This is a key asset in California , where this model enables us and SpeedWeed’s brand partners to compete more effectively with the illicit market. Following a challenging year for us and the industry in general, we are now well positioned to capitalize on the opportunities in the world’s largest legal cannabis market and generate shareholder value, and I look forward to reporting on our achievements as we execute on our strategy.”

About Mojave Jane Brands

Mojave Jane Brands Inc. is a Canadian-based cannabis company emerging as a true vertical integrator in California’s legal cannabis space, serving both the recreational and wellness markets. The Company’s U.S. holdings are focused on processing and manufacturing, branding, marketing and distribution. Through ownership of high-end brands such as Caligold, partnerships with innovators such as HAI Beverages, and investments in leading distributor SpeedWeed, the Company is well positioned to capitalize on the rapidly growing legal opportunity in the world’s largest cannabis market.

Social Media

Facebook: facebook.com/mojavejane
Twitter: twitter.com/mojavejane
LinkedIn: linkedin.com/mojavejane
CALIGOLD Instagram: https://www.instagram.com/caligoldofficial

Stock Exchanges

Mojave Jane trades in Canada , ticker symbol JANE on the CSE, and in Europe , ticker symbol OHCN on the FSE. Neither the CSE, nor the FSE has approved nor disapproved the contents of this press release. Neither the CSE, nor the FSE accepts responsibility for the adequacy or accuracy of this release.

Marijuana Industry Involvement

Canadian listings (CSE) will remain in good standing as long as they provide the disclosure that is rightly required by regulators and complying with applicable licensing requirements and the regulatory framework enacted by the applicable state in which they operate. Marijuana is legal in certain states however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that Mojave Jane’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

On behalf of the Board of Directors

Mojave Jane Brands Inc.

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the intention of the parties to complete the Acquisition and certain ancillary transactions contemplated thereby. These transactions are subject to a number of material risks, and there is no assurance that they will be completed on the terms or within the timeframes currently contemplated, or at all. The forward-looking information contained in this press release is made as of the date hereof and the Company is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

All monetary references herein refer to Canadian dollars unless otherwise specified.

SOURCE Mojave Jane Brands Inc.

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Authored By

Kaelan Donadio

Published at Tue, 31 Dec 2019 12:21:47 +0000

3 Latin American companies to watch in 2020

3 Latin American companies to watch in 2020

Although 2018 was a banner year for the Latin American cannabis industry, the amount of interest in the burgeoning cannabis market has decreased in 2019. Going forward, this is a trend that we do not expect will continue and believe that 2020 will be a transformational year for the Latin American cannabis market. 

From Canopy Growth (WEED.TO) (CGC) to Aurora Cannabis (ACB.TO) (ACB), some of the most high-profile names in the cannabis industry have made several strategic acquisitions of Latin American cannabis operators and this is a market that we have been bullish on. One of the main reasons for our bullish view on this market is related to the economics associated with cannabis and we believe that this provides operators with a major competitive advantage when compared to cannabis producers based in Canada. 

If you were to compare the average cost per gram of cannabis that is produced in Colombia to Canada, you will notice a major difference. In Latin America, it cost approx. $0.10 to produce each gram. In Canada, it costs approx. $1.00 to $1.50 to produce each gram and we find this to be of significance. 

In 2020, we expect to see the cannabis industry continue to record strong growth as new markets open and demand for products increase. Over the long-term, we believe that the companies that are scale operations in Latin American markets benefit from an ideal climate for cannabis cultivation and are the best positioned for growth we want to highlight 3 businesses that have been focused on this opportunity. 

Aurora Cannabis: Slow to Execute but an Opportunity to Watch

When we think of the Latin American cannabis industry, Aurora Cannabis is one of the first names to come to mind. In 2018, the Canadian cannabis producer acquired ICC Labs which was a first mover in the Latin American cannabis market. ICC was initially focused on the cannabis market in Uruguay and this is an opportunity that we are excited about. Uruguay was the first country in South America to legalize both medical and recreational cannabis and ICC was able to benefit from the first move advantage that it had on this market.

During the last few months, Aurora Cannabis has been under considerable pressure and has traded lower with the rest of the industry. When it comes to the international cannabis opportunity, the company has been slow to execute and we believe that this has impacted investor sentiment as it relates to the operation. 

From Europe to South America, Aurora Cannabis is one of the best diversified companies and own strategic assets and licenses in more than 20 cannabis markets across the world. Although Canada has been the most significant revenue driver for the business, we believe that the market wants to see the company start generating substantial revenues on the international side of the operation and we will be closely monitoring how the team is able to execute on this opportunity on a going forward basis. 

When looking at the reports published by leading Canadian broker-dealers, there is a major capital concern when it comes to Aurora Cannabis. The company has spent hundreds of millions of dollars on constructing cultivation facilities in Canada and the market believes that it does not have enough capital on hand to complete its international expansion. Going forward, we are of the opinion that the market will be highly focused on how the management team is able to advance operations in South America and in the European Union (EU). We believe that 2020 is a make or break year for the Canadian cannabis producer and this is a story that will have our full attention as we head into the new year. 

Chemesis International: A Global Growth Story in the Making

During the last year, we have seen a significant increase in the number of Canadian cannabis companies that are focused on the Latin America cannabis opportunity. In the US, the focus on the Latin American cannabis market was not as significant and only a few companies announced plans to capitalize on this opportunity. 

One US cannabis company that has been highly focused on the Latin American cannabis market is Chemesis International Inc. (CSE:CSI) (OTC:CADMF) (FRA:CWAA) and this is an opportunity that we are excited about. From California to Puerto Rico, Chemesis has been executing on a US expansion strategy and has attractive growth prospects heading into 2020. 

In early December, Chemesis reported a significant development after its wholly owned subsidiary, La Finca Interacviva-Arachna Med reported to be on track to complete its Agronomic Evaluation Programs in the first calendar quarter of 2020. The completion of the program represents a major milestone and brings the operation one step closer to registering its own genetics as intellectual property. 

Although this development did not generate traction with the market, there is a lot to look forward to when it comes to the Latin American side of the Chemesis business. By leveraging its own genetics, La Finca believes that it will be able to build a stable and consistent revenue stream as a global seed supplier. We are favorable on the amount of value that can be created through this vertical of the business and believe that the market under appreciates this aspect of the story. 

Going forward, Chemesis is focused on expanding its position in the Latin American market and La Finca continues to work to increase its land package through the Association for the Promotion of Cannabis Cultivation, a non-profit organization. The association works with local indigenous farming communities to provide education, technical advice, and a crop purchasing program. We are favorable on the growth prospects associated with a lager land package and will monitor how the management team is able to further expand its position.

Heading into 2020, we believe that one of the most significant growth initiatives for La Finca is related to how it continues to build its seed stock through cultivation. Starting in early 2020, the company expects to have considerably larger harvests and we expect the success of this initiative to be a major potential catalyst for growth. 

When cannabis companies expand operations, there tends to be an important transition period for the business where the cultivation team works to refine the growing process to optimize results from a quality and yield standpoint. Chemesis has been ahead of the curve with this and has secured a strategic relationship with the Universidad Nacional de Colombia to further refine seed genetics for each individual region. 

Through this relationship, the company is able to ensure high quality and consistent yields and we find this to be significant. Following the vaping health crisis, safety has become the largest concern for consumers and we are favorable on the process in place for La Finca. Going forward, we are bullish on the growth prospects associated with the Latin America side of the Chemesis operation. In the first calendar quarter of 2020, La Finca expects to harvest more than 5,000 kg of biomass and this is something that we are excited about. 

Chemesis believes that through its continued dedication for quality and compliance, La Finca will be a leader in cannabis cultivation, manufacturing and retail in Colombia. We believe that this aspect of the story is not fully appreciated by the street and are bullish on the growth prospects associated with the Latin American side of the business. If you look at the structure of the entire operation, we would not be surprised to see Chemesis spin-off La Finca as a standalone public company in 2020. The management team has been highly focused on creating value for shareholders and this would be a strategic way to do so. At current levels, Chemesis has an attractive risk-reward profile and this is an opportunity we are excited about heading into 2020. 

Blueberries Medical: What to Watch for in 2020

In early 2019, we started to notice an increase in interest in the Latin American cannabis market and several leading Canadian cannabis producers acquired assets that are levered to it. The valuations associated with these acquisitions were rich and the operations were acquired for massive premiums. Due to this, we became focused on early stage Latin American cannabis operators that were trading at huge discounts when compared to these acquisitions.

Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (FRA: 1OA) is an operator that caught our attention during this time and this is an opportunity that we have been highly focused on. A few weeks ago, the company announced a major change in the management team and appointed co-founder Camilo Villalba as CEO. We are favorable on the appointment and believe that it removed an important headwind from the operation. As CEO, Mr. Villalba will lead the company’s next phase of operational development, with initial exports expected during the first half of 2020. 

Timing could not have been better for this appointment and we are favorable on how the operation is positioned for growth. 2019 has been a banner year for the business and Blueberries is considered to be a leading operator in Colombia. Going forward, the company is well positioned for growth and has the necessary infrastructure in place to cultivate previous approved cannabis strains. Blueberries Medical is well positioned to ramp up production and meet local and international demand through its company owned facilities and also through agreements with contract growers.

When looking at Blueberries Medical, we see an operation that has substantial potential catalysts for growth and this is an opportunity that we are excited about. Last month, Blueberries reported a major milestone and harvested its first commercial crops at its 3.2-hectare Guatavita facility. The crops consist of five registered non-psychoactive cannabidiol (CBD) strains and we are bullish on the amount of value that can be created through the sale of the crops. 

We have been excited about the Guatavita opportunity due to the size of the existing facility as well as the potential it has to expand. Currently, the Guatavita facility has 150,000 square feet of open-air greenhouse with dedicated propagation and production facilities to allow the company to leverage local contract growers. When looking at the potential value drivers for the business in 2020, we are most excited about how the management team continues to advance its custom-built EU-GMP compliant extraction line (expected to be completed in January). In the first quarter of 2020, Blueberries expects start selling cannabis oil products and we are bullish on this aspect of the story.  

At current levels, Blueberries Medical is trading at a considerable discount to its peers and we find this to be of significance. The company has been working tirelessly on its Colombian expansion and we are impressed with how the story has advanced in such a short period of time. Under the leadership of Camilo Villalba as CEO, we believe that Blueberries Medical is well positioned for growth and is an opportunity to have on your radar.  

Pursuant to an agreement between StoneBridge Partners LLC and Chemesis International we have been hired for a period of 365 days beginning July 15, 2018 and ending July 15, 2019 to publicly disseminate information about (CSI) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month for a period of 3 months. We own zero shares of (CSI), which we purchased in the open market. We plan to sell the “ZERO” shares of (CSI) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (CSI) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. This contract has been renewed for a period of 180 days beginning on August 2, 2019 and ending on February 2, 2020.

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Published at Mon, 30 Dec 2019 12:33:13 +0000

CP Logistics, LLC Reports That The Temporary Restraining Order Filing Against Sunniva Production Campus, LLC Was Denied

CP Logistics, LLC Reports That The Temporary Restraining Order Filing Against Sunniva Production Campus, LLC Was Denied

Sunniva Inc. (“Sunniva” or the “Company”) (CSE: SNN) (OTCQB: SNNVF), announces that the previously reported application for a Temporary Restraining Order (“TRO”), filed by its wholly owned subsidiary, CP Logistics, LLC (“CPL”), against the Sunniva Production Campus, LLC (“SPCL”) with respect to the Notice of Termination of Lease issued by SPCL, was denied in California Superior Court for the County of Riverside (the “Court”) on December 24, 2019. The Company is continuing to assert its rights under the Lease and has submitted a Demand for Arbitration and Notice of Claims with JAMS, the world’s largest private alternative dispute resolution provider, to initiate the arbitration process pursuant to the dispute resolution provisions of the Lease agreement for the property located at 69375 Ramon Road, Cathedral City, California.

(PRNewsfoto/Sunniva Inc.)

CPL, a wholly owned subsidiary of Sunniva, entered a build to suit lease agreement (the “Lease”) on October 20, 2017, with SPCL for the construction of the Sunniva California Campus in Cathedral City, California. SPCL is an entity related to Barker Pacific Group, Inc.

For more information about the Company please visit: www.sunniva.com.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information or Statements

This press release contains forward-looking information or statements. All statements that are or information which is not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Sunniva’s operations and growth opportunities and CP Logistics LLC’s submission of a Demand for Arbitration and Notice of Claims and the uncertainty regarding the future outcome of the Arbitration process, are “forward-looking information or statements”. Forward-looking information or statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. With respect to forward-looking information and statements contained herein, Sunniva has made numerous assumptions including, among other things, assumptions about general business and economic conditions. Such forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking information or statements. Such risks and uncertainties include, among others, the risk factors included in the Sunniva’s continuous disclosure documents available on www.sedar.com. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking information or statements. Although Sunniva has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking information or statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking information or statements. Sunniva assumes no obligation to update any forward-looking information or statements, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.

Company Contacts:

Sunniva Inc.

Sunniva Investor Relations        

Dr. Anthony Holler

Rob Knowles

Chairman and Chief Executive Officer

VP Corporate Development

Phone: (866) 786-6482

Phone: (587) 430-0680  

Email: rknowles@Sunniva.com 

Cision

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SOURCE Sunniva Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2019/26/c0773.html

Published at Thu, 26 Dec 2019 13:41:34 +0000

Canada House Wellness Group Reports Second Quarter Fiscal Year 2020 Results

Canada House Wellness Group Reports Second Quarter Fiscal Year 2020 Results

Canada House Wellness Group Inc. (CSE: CHV) (“Canada House” or the “Company“) is pleased to report its financial results for the three and six months ending October 31, 2019. All amounts are stated in thousands of Canadian dollars. Additional details can be found at www.sedar.com.

Canada House Wellness Group Inc. (CNW Group/Canada House Wellness Group Inc.)

Financial Highlights:

  • Cash position of $2,460 as at October 31, 2019 compared to $3,427 as at April 30, 2019 and $1,535 as at July 31, 2019. During the quarter, the Company secured $2.4 million of new financing and spent $484 on production-related capabilities.
  • Revenue for the three months ending October 31, 2019 was $1,291, an increase of $51 from $1,240 in the prior year and $2,581 for the six months ending October 31, 2019, an increase of $110 compared to $2,471 for the same period in the prior year.
  • Net Loss and Comprehensive Loss for the three months ending October 31, 2019 was $1,717 compared to Loss and Comprehensive loss of $3,007 for the same period in the prior year. For the six-month period ending October 31, 2019, net loss and comprehensive loss was $3,439compared to $5,035 for the same period in the prior year.
  • During the quarter ending October 31, 2019, general and administrative expenses decreased by $463 or 20% to $1,859 compared to $2,322for the quarter ending July 31, 2019.

“Receiving our amended sales license from Health Canada and the ability to sell our own production to medical cannabis patients and provincial retailers beginning October 1st, 2019 was a monumental milestone for Canada House.” says Chris Churchill Smith, CEO, Canada House. “We continue to focus on profitable growth from both Canada House Clinics and our Licensed Producer, Abba Medix Corp.  As revenue increases, we will continue to align our cost structure through disciplined cost management to grow stronger and drive profitability on a go-forward basis.”

About Canada House Wellness Group Inc.

Canada House Wellness Group Inc. is the parent company of Abba Medix Corp., a Licensed Producer in Pickering, Ontario that produces high quality medical grade cannabis; Canada House Clinics Inc., with clinics across the country that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that links physician, provider, and patient to data that supports treatment with medical cannabis.

Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Please visit www.canadahouse.ca.

Cautionary Statement Regarding Forward-Looking Information. This press release contains forward-looking statements, including statements that relate to, among other things, the Company’s clinic, production and technology businesses, its future plans, the Company’s markets, objectives, goals, strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective” and “continue” (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, among other things, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis legal for recreational use by October 17, 2018; Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; and the ability to execute strategic plans. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canada House Wellness Group Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2019/27/c1437.html

Steven Pearce, Vice-President, Legal, Canada House Wellness Group Inc., 289-980-3584, spearce@canadahouse.caCopyright CNW Group 2019

Published at Fri, 27 Dec 2019 12:32:47 +0000

MediPharm Labs Australia Granted State Licences, Completes Construction of Specialized Production Facility

MediPharm Labs Australia Granted State Licences, Completes Construction of Specialized Production Facility

MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven cannabis extraction, distillation and purification, today announced that its subsidiary, MediPharm Labs Australia Pty. Ltd. (“MediPharm Labs Australia”), has received State Licences for cannabis substances from the Department of Health and Human Services in Victoria, Australia and completed the initial phases of construction of its specialized extraction facility in Wonthaggi.

Under these State Licences, MediPharm Labs Australia is allowed to store, test and supply cannabis for research purposes at its newly built facility. Construction of the 10,000 square foot plant began 18 months ago. The final stage of regulatory approvals is now underway and is expected in H1 2020, which will make MediPharm Labs Australia a first mover in the Australian market for the manufacture of cannabis derivative products.

“We envisioned that MediPharm Labs Australia would be a pioneering leader in the supply of high-quality, pharmaceutical-like cannabis derivative products for the domestic Australian and international export markets,” said Warren Everitt, Chief Executive Officer, Asia Pacific, MediPharm Labs. “The achievements we mark today reflect tremendously well on our domestic engineering, project management and regulatory affairs capabilities, and provide tangible evidence that our vision will soon be realized for the benefit of our customers, shareholders and the Australian economy.”

MediPharm Labs Australia was designed to have annual capacity of 75,000 kg and to replicate the high-quality standards of the Company’s Canadian production facility. It features multi-phase supercritical CO2 extraction equipment, clean rooms and testing laboratories.  Both facilities were built to achieve GMP certifications. A GMP certificate from the Australian Therapeutic Goods Administration is the next priority start-up step, with the regulatory audit process already proceeding.

“Starting a business is never easy but the skilled team at MediPharm Labs Australia under Warren’s direction has made it look that way,” said Pat McCutcheon, Chief Executive Officer, MediPharm Labs. “I congratulate everyone involved for quickly bringing us to this advanced pre-production phase. We’re now starting the final countdown to commercialization of the asset.”

To mark the completion of facility construction, Mr. Everitt hosted a ribbon-cutting ceremony today where Daniel Andrews, the Premier of Victoria, Australia, John Skerritt, the Deputy Secretary of the Commonwealth Department of Health, and Brett Tessari, Mayor of Wonthaggi addressed the audience.

“Victoria is continuing to lead the way in medicinal cannabis in Australia and we are proud to support MediPharm Labs in calling Wonthaggi, Gippsland its Australian home”, said Daniel Andrews, Premier of Victoria, Australia. “We’re proud to be actively attracting investment in this ground-breaking industry that will not only improve the lives of patients around the world, but also create local jobs.”

MediPharm Labs Group Milestones to Date in Australia:

  • June 18, 2018 – Breaks ground on 10,000 sq.ft. purpose-built facility, 127 km southeast of Melbourne, in Wonthaggi, Victoria.
  • Feb 21, 2019 – Signs first international private label two-year sales agreement with AusCann Operations Pty. Ltd. (“AusCann”) for cannabis concentrate to be exported to Australia from Canada; Cannabis concentrate to be used for hard-shell capsules to research and treat chronic pain.
  • Mar-Aug, 2019 – Recruits senior leadership team from leading companies within the Australian pharmaceutical industry.
  • May 21, 2019 – Receives Cannabis Manufacturing Licence from the Australian Office of Drug Control (ODC) under the Narcotic Drugs Act 1967.
  • June 24, 2019 – Announces first export of medical cannabis concentrate to Australia in accordance with Health Canada export and Australian ODC import permits.
  • Aug 1, 2019 – Wins INNOVATION AWARD at the Australian Cannabis Industry Awards, for role defining a new extraction-specialist segment in the medical cannabis industry.
  • Sept 3, 2019 – Enters a manufacturing agreement with a licensed Australian entity; Signs three multi-year supply agreements with ODC-approved cultivators (including BBS Pharmaceuticals).
  • Sept 27, 2019 – Receives multi-phase supercritical CO2 extraction equipment.
  • Oct 1, 2019 – Announces second set of larger exports of medical cannabis concentrate from Canada to Australia in accordance with Health Canada export and Australian ODC import permits.
  • Dec 5, 2019 – Receives State Licences for cannabis substances from the Department of Health and Human Services in Victoria, Australia.
  • Dec 6, 2019 – Celebrates the completion of construction of facility in Wonthaggi, Victoria.

For more detail, visit https://www.medipharmlabs.com/news/press-releases

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical-like cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices designed facility and ISO standard built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, they formulate, process, package and distribute cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and is nearing commercialization of its Australian extraction facility. MediPharm Labs Australia was established in 2017.

For further information, please contact:
Laura Lepore, VP, Investor Relations
Telephone: 705-719-7425 ext 216
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, commercialization and GMP certification of the Australian facility and timing thereof, use of cannabis concentrate by AusCann, performance of the agreements as intended and disclosed herein; expected processing capacity of the Australian facility and production of active pharmaceutical ingredients and cannabinoid-based medicines. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/a65db3aa-1bbe-4715-8d2b-ab97eb10b67a

https://www.globenewswire.com/NewsRoom/AttachmentNg/60c608a6-dd13-4137-a9a0-f1f37c9ffb45

https://www.globenewswire.com/NewsRoom/AttachmentNg/91b15b24-b003-4b11-8779-76dda3116ab2

Primary Logo

Plaque Unveiling

To mark the official opening of MediPharm Labs Australia on December 6, 2019 by the Hon. Daniel Andrews MP, Premier of Victoria, a plaque is unveiled. Pictured (L to R): Jordan Crugnale, Member of Parliament for Bass, Daniel Andrews, Premier of Victoria, Warren Everitt, CEO Asia Pacific, MediPharm Labs, Brett Tessari, Mayor of Wonthaggi, and John Skerritt, Deputy Secretary, Department of Health.

Ribbon Cutting

To mark the official opening of MediPharm Labs Australia in Wonthaggi, Victoria on December 6, 2019, Warren Everritt, CEO Asia Pacific (L) and the Hon. Daniel Andrews MP, Premier of Victoria (R) complete the ribbon cutting ceremony.

Touring the Facility

At the official opening of MediPharm Labs Australia on December 6, 2019 in Wonthaggi, Victoria, James Lee, Head of Project Management Office, Asia Pacific, tours the Hon. Daniel Andrews MP, Premier of Victoria (R) and other dignitaries through the specialized extraction facility.

Published at Fri, 06 Dec 2019 13:21:33 +0000

ManifestSeven Is Here To Streamline The Highly Fragmented California Cannabis Market

ManifestSeven Is Here To Streamline The Highly Fragmented California Cannabis Market

With less than one month left in 2019, the cannabis sector has become a major talking point as investors are looking to discover companies that are positioned for growth in 2020 and beyond.

During the last year, we have seen a significant increase in the number of publicly traded cannabis companies. Although we are favorable on the increase as well as the trend, many of these operators have similar business models and we are primarily interested in businesses that have a unique business model, that present visible growth prospects, and are led by a management team focused on creating value for shareholders.

As it relates to a majority of the new cannabis listings in 2019, many of these companies are less than two years old and are in the early stages of growth. Most of these operators do not have the cash that is needed to execute, and we are focused on businesses that are fully funded and are executing on previously announced initiatives.

ManifestSeven (M7): A Pre-IPO Opportunity to be Aware of

Earlier this month, we published an update on ManifestSeven (M7) ahead of a planned public listing and this is an opportunity that meets the criteria we are looking for with a pre-IPO company. Since 2014, M7 has been highly focused on the California cannabis market and we are bullish on the strategy to execute on this burgeoning opportunity.

M7 represents a differentiated growth story and the management team has been focused on executing on a strategy that will bring the business on a path to profitability. The company does not touch the cannabis plant and represents an ancillary opportunity. We are favorable on the structure of the operation and how the business will be ready to capitalize on the plant-touching side of the industry once cannabis is legalized at the federal level in the US.

When it comes to the California cannabis market, M7 is focused on integrating distribution and retail operations into a proprietary supply chain that does not end at the retailer’s shelves. The company owns a basket of cannabis businesses that provide leverage to the entire value chain and we are bullish on the assets that fall under the company’s umbrella.

Owns an Umbrella of High-Growth Ancillary Cannabis Companies

One of the reasons we are bullish on M7 is due to the experience of the management team and the amount of due diligence that was conducted prior to acquisitions. The company started out as a venture investment firm known as MJIC, and evaluated hundreds of cannabis and ancillary companies to potentially invest in. This amount of experience puts M7 in a league of its own and we want to highlight the assets that fall under the operation:

  • MDelivers: A leading delivery service in California with a customer base of 30,000+ that opens up both the northern and southern California market
  • MyJane: The company provides a curated service by women, for women, that operates on a subscription basis
  • 1-800-CANNABIS: The operation serves as both M7’s phone and online gateways into its retail experience
  • Haven (formerly ShowGrow: The dispensary was acquired in August and represents the first dispensary in the companies B2C strategy.

When looking at the assets that fall under the M7 umbrella, there is a lot to be excited about and we are favorable on the amount of value and the synergies that can be found between these assets. These businesses represent the cornerstone of M7’s seamless retail channel (e-commerce, delivery and subscription) and have played a key role in the execution of the company’s vision of creating a one-stop shop for all products and services. Going forward we are bullish on the growth prospects associated with the M7 operation and we expect to see the company continue to growth through inorganic and organic growth initiates.

We believe that these three businesses provide M7 with a scalable and ready-to-access retail model that can service a vast majority of the California market. We believe that these acquisitions have quickly proved to be accretive and find this to be an important aspect of the story. Over the next year, we expect to see M7 recognize significant value from these businesses and will monitor how the management team is able to further integrate and advance these assets.

The Sum of M7’s Parts Represents a Major Opportunity

We believe that M7 is focused on the some of the most attractive ancillary verticals of California’s cannabis industry. From distribution to delivery, from subscription services to dispensary services, the company has attractive potential catalysts for growth and we want to highlight the verticals that the business is focused on:

  • Distribution: In California, M7’s distribution, manufacturing and logistics infrastructure enables efficient, compliant and scalable commerce for the legal cannabis supply chain with numerous distributions centers across California, including Long Beach, Oakland etc.
  • Dispensary: M7 is creating a portfolio of dispensary storefronts in strategic markets in California that operate under the Weden brand, with a flagship outlet in Santa Ana, Orange County.
  • Delivery: The company is able to reach millions of California cannabis consumers through a network of integrated and wholly owned delivery operations
  • Subscription: Through MyJane, the company offers a curated line of products for women and we are favorable on how the service has been gaining traction

When we analyze the assets that fall under the M7 umbrella, it is easy to understand the amount of potential synergies for business. The sum of the parts of the business represents an attractive long-term growth opportunity and we expect to see the divisions of the operation to find ways to support each other. Over the long-term this will allow the business to grow in a way that is cost effective and we find this to be an important aspect of the story.

A Focus on Control, Compliance, and Distribution

One of the first words that comes to mind when we think of M7 is control. The company controls distribution, delivery and dispensary on its seamless platform and we are favorable on its focus on compliance. In a market where safety is of utmost importance, compliance has been a top priority for M7. We believe that a focus on compliance is one of the most important aspects when it comes to building a platform that can be trusted and we expect to see M7 benefit from this focus.

If you look at the landscape of the cannabis sector, there is no true market leader and the reason for this is because there has been a distinct failure as it relates to distribution and infrastructure. By focusing on retail and distribution, M7 has control over what goes to market and we find this to be significant. We are favorable on the way the company will be able to understand the market through this focus and are excited about its vision.

In the last few years, M7 has been able to create one of the largest networks of California cannabis consumers. Once cannabis is legalized at the federal level, the company will be able to easily pivot the business to capitalize on the plant touching side of the industry. When M7 is able to start selling THC products to a specific location, it will already have a connection with the end user and we are favorable on the long-term growth prospects associated with a potential pivot.  Going forward, we expect to see M7 continued to take a compliance first approach and believe that this is the most important aspect for the business.

Download Our Full Report On ManifestSeven Here 

A Long-Term Cannabis Opportunity

M7 is California’s first omnichannel model for legal cannabis, servicing both business-to- business (B2B) and business-to-consumer (B2C), and we are favorable on the strategy in place as it relates to advancing the operation. The management team is highly focused on creating value for shareholders and bringing the business on a path of profitability. We find this to be significant as the investor community has been highly focused on discovering profitable cannabis businesses.

With a network of more than 10,000 ancillary B2B clients, M7 is well positioned to execute on the distribution side of the California cannabis industry and we are bullish on this aspect of the story. The company has more than 335 active and compliant dispensary accounts and we are favorable on the relationships that it has with legal operators.

In 2020 and beyond, we expect to see M7 continue to take a compliance first approach and believe that this is the most important factor for the business. One of the most significant trends for California’s cannabis industry in 2019 has been the shutting down of illegal operators. This is a trend that is expected to continue and will be a catalyst for companies like M7. As illegal operators get shut down, M7 should benefit and we expect to see the business survive the test of time.

By the second quarter of 2020, M7 expects to be cash flow positive and we will monitor how the management team continues to ramp up the business. The company does not hold any debt and has been reporting strong top-line growth. This is a trend that is expected to become more significant in the coming quarters and we are favorable on the way the management team has been focused on reducing expenses.

Unlike most cannabis companies that recently went public (or have been public for several years), M7 is actually advancing operations and we believe that the business has visible catalysts for growth. The current revenue run rate is approaching $60 million of annual revenues and we are favorable on how this number has increased on a year-over-year basis. Going forward, this is a trend that is expected to continue and we are favorable on the strategy in place as it relates to growing in an effective manner.

To learn more about M7 is positioned to be a leading cannabis operator, please reach out to support@technical420.com to be added to our distribution list.

Pursuant to an agreement between StoneBridge Partners LLC and Manifest7. (MSVN) we have been hired for a period of 180 days beginning August 1, 2019 and ending February 1, 2020 to publicly disseminate information about (MSVN) including on the Website and other media including Facebook and Twitter. We are being paid $10,000 per month for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (MSVN), which we purchased in the open market. We may buy or sell additional shares of (MSVN) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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Published at Wed, 04 Dec 2019 12:43:10 +0000

Surna Partners with Veterans Cannabis Project

Surna Partners with Veterans Cannabis Project

Surna Inc. (OTCQB: SRNA) proudly announces its sponsorship of Operation Cannabis: Bash for Veterans’ Cannabis Access on Wednesday, Dec. 11, at the Westgate Hotel in Las Vegas. The cause is personal for Tony McDonald, president and CEO of Surna, who recently joined the Leadership Advisory Council of the Veterans Cannabis Project, an organization dedicated to improving quality of life for U.S. military veterans through the availability of cannabis.

“As a veteran, I am deeply committed to taking care of the wounded warriors who selflessly risked life and limb to protect our people and our nation,” said McDonald. “Cannabis-derived products can benefit these great patriots, and I strongly believe that these products should be available immediately. I am very proud that Surna has partnered with Veterans Cannabis Project to advocate for this cause.”

The bash will take place in the Westgate’s Ballroom A from 6 to 9 p.m., during MJBizCon. Free to the public, the event offers an opportunity to meet with veterans’ advocates and enjoy a free drink and hors d’oeuvres, with live music by Emmy-winning Patrick & the LVB.

VCP believes that medical cannabis saves lives and that veterans deserve full, legal access to its benefits. That’s why VCP is working to change the conversation about this much-misunderstood substance by:

  • Advocating on behalf of cannabis access for veterans.
  • Educating policymakers and the public about the health benefits of cannabis, thereby eliminating the stigma associated with it.
  • Supporting veterans across the nation with the resources they need to understand the value of medical cannabis.
  • Informing veterans of their rights and arming them with tools to encourage policy change.
  • Creating a community that can heal our nation’s broken approach to cannabis and provide veterans with safe, legal access.

McDonald joined other VCP members last month at the Capitol Hill Forum in Washington, D.C., to advocate for veterans’ access to medical cannabis. The group met with several members of Congress and provided information to help guide the lawmakers in their votes.

About Surna

Surna Inc. (www.surna.com) designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada. Our engineering and technical team provides energy and water efficient solutions that allow growers to meet the unique demands of a cannabis cultivation environment through precise temperature, humidity, light, and process controls and to satisfy the evolving code and regulatory requirements being imposed at the state, provincial and local level.

Statement about Cannabis Markets

The use, possession, cultivation, and distribution of cannabis is prohibited by U.S. federal law. This includes medical and recreational cannabis. Although certain states have legalized medical and recreational cannabis, companies and individuals involved in the sector are still at risk of being prosecuted by federal authorities. Further, the landscape in the cannabis industry changes rapidly. This means that at any time the city, county, or state where cannabis is permitted can change the current laws and/or the federal government can supersede those laws and take prosecutorial action. Given the uncertain legal nature of the cannabis industry, it is imperative that investors understand that investments in the cannabis industry should be considered very high risk. A change in the current laws or enforcement policy can negatively affect the status and operation of our business, require additional fees, stricter operational guidelines and unanticipated shut-downs.

Contact:
Jamie English
Director of Marketing
jamie.english@surna.com
303.993.5271

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Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Tue, 03 Dec 2019 15:04:34 +0000