With nationwide legalization of recreational marijuana expected in Canada in the coming months, the industry is seeing a spate of deals and steady news flow as companies jockey for position in the burgeoning market. Tuesday morning is no different. Here's a quick rundown on news hitting the wires before the 8:00 hour even arrives in Toronto.
Canopy Growth Corp. (TSX:WEED) said that it is acquiring the remaining portions of Canopy Health Innovations (CHI) and CHI's subsidiary Canopy Animal Health that it didn't already own.
WEED management believes that by bringing the companies under one umbrella - coupled with its own cannabis production - will expedite product development and bringing products to medical marijuana patients.
In total, Canopy Growth is issuing 3.04 million shares of its stock, valued at $91.57 million based upon WEED's five-day volume weighted average price, to snare the the unowned interest in the two companies.
Canopy rival Aurora Cannabis Inc. (TSX:ACB) exercised its right to purchase 10.75 million shares of Hempco Food and Fiber Inc. (TSX-V:HEMP) from Charles and Angela Holmes. Subsequent to the acquisition, Aurora has majority ownership of HEMP, controlling 52.7% of the outstanding shares and 50.12% on a fully diluted basis.
National Access Cannabis Corp. (TSX-V:NAC) announced the launch of Meta Cannabis Supply Co. as its new premium recreational cannabis brand. The plan is to open an online store as well as brick-and-mortar locations in select Canadian markets, effectively diversifying the company from its medical roots that include 11 clinics and 40 pharmacies.
The news dovetails with previous news that NAC partnered with The Second Cup Ltd. (TSX:SCU) to develop and operate recreational pot dispensaries in Western Canada.
Organigram Holdings Inc. (TSX-V:OGI) said that it officially is a "licensed dealer" of marijuana, receiving a License for Controlled Drugs and Substances from Health Canada. The Moncton, New Brunswick-based company also unveiled its branding strategy for its new recreational line of cannabis, dubbed "Edison Cannabis Company."
Cann Trust Holdings (TSX:TRST) reported that revenue for the first quarter of 2018, ended March 31, 2018, totaled $7.84 million compared to $3.03 million in the same quarter of 2017. The company swung to a net profit of $11.44 million, or 12 cents per share, from a net loss of $777,904, or one cent per share, in the year prior quarter. Q1 represented the third straight quarter Cann Trust has been profitable.
Cannabis Wheaton Income Corp. (TSX-V:CBW) gave shareholders an update on its joint venture with FV Pharma. Cornerstone Builders has been selected as the design builder for the 620,000 square-foot facility in Cobourg, Ontario.
A portion of the building is currently used to grow cannabis, with plans for expansion to start within the next month.
LGC Capital Ltd. (TSX-V:LG) wrapped up documentation with regards to
Global Canna Labs Ltd. in Jamaica and submitted it to the TSX Venture exchange for approval. The Montreal-based is seeking the green light for a $2.5 million secured debenture convertible into a 30% interest in Global Canna Labs and a royalty on future sales.
Jamaican regulators have already passed the site inspection for the 27,000-square-foot initial build-out of what will be an expansive greenhouse operation when completed.
