Canopy Rivers partners with NBA star Kevin Durant, Aurora announces opening of flagship store, Origin House updates the market, and more!
This week Canopy Growth Corporation (NYSE:CGC) announced that it has officially received its operating and secure storage licence from Health Canada for its 150,000 sq. ft. beverage facility located at company headquarters in Smiths Falls, ON.
The new facility is operational and will began producing cannabis-infused beverages earlier this week.
The beverage facility adds to the complement of cannabis production facilities in Smiths Falls including a regional distribution centre with automated excise stamp lines, an automated manufacturing facility, a state-of-the-art bean-to-bar chocolate factory, and a first-of-its-kind Visitors Centre.
AusCann Group Holdings Limited (ASX: AC8) announced that it has appointed the TGA licensed company, Aspen Pharmacare Australia Pty Ltd, to provide packaging for its medicinal cannabis pharmaceutical products.
The three-year agreement follows similar partnerships—with cultivation & extraction, manufacturing, and controlled distribution service providers—and will also include GMP packaging services for the company's proprietary capsules.
These will be manufactured by AusCann's manufacturing partner, PCI Pharma, before being packaged by Aspen in consumer ready packs at its Australian facility.
AusCann has established capabilities and partnerships with leading service providers across the full medicinal cannabis supply chain. This allows us to focus our capital on where we can deliver the best sustainable value for our shareholders – on market ready cannabinoid-based pharmaceutical product development, generating clinical evidence for these superior products and building medical acceptance from Doctors. AusCann CEO, Ido Kanyon
Third quarter pro forma revenue increased 48% quarter-over-quarter to $73.6 million, which includes the impact of pending acquisitions and investments. Third quarter 2019 financial results included $4.5 million related to share-based incentive compensation, acquisition and other non-recurring costs of $4.7 million, and $2.2 million in expansion and relaunch costs.
The company also announced the mutual termination of its proposed acquisition of VidaCann, Ltd during this period, eliminating $120 million in near-term cash requirements.
Subsequent to the end of Q3, we closed the acquisition of Valley Agriceuticals, giving us four dispensaries in New York, one of the most significant hubs of consumer influence in the world. In California, the other market that has an outsized influence on U.S. and global consumer behaviour, our wholesale revenue more than doubled in the quarter. We are making meaningful progress on our objective of creating the first national cannabis brand. Cresco Labs Co-founder and CEO, Charles Bachtell
The company also announced the signing of a binding agreement for the sale-and-leaseback of two properties in Ohio and Michigan, for total additional non-dilutive funding of approximately $38 million.
Cresco has signed binding agreements to sell its Yellow Springs, Ohio and Marshall, Michigan properties to Innovative Industrial Properties for approximately $38 million in total, which amount includes funding for additional tenant improvements at both properties. Concurrent with the closing of the sale, Cresco Labs will enter into long-term, triple-net lease agreements with IIP and will continue to operate each property as a licensed cannabis cultivation and processing facility.
At the same time, the company also announced the mutual termination of the Equity Purchase Agreement pursuant to which a subsidiary of Cresco Labs would have acquired the ownership interests or assets of VidaCann Ltd.
The Alberta-based, retail-focused, cannabis smoking accessories and cannabis lifestyle products company, High Tide (CSE:HITI), announced that it has been selected by Aurora Cannabis Inc to manage its flagship retail store at West Edmonton Mall, which will open to the public on November 27th in Aurora's home city of Edmonton, Alberta.
The company has signed an agreement with an affiliate of Aurora to provide services including, but not limited to: inventory, marketing, operations, sales, staffing, training, and security.
The deal was secured in accordance with both Health Canada and Alberta Gaming, Liquor and Cannabis requirements, over a base term of three years with an option to extend the term, in exchange for service provider fees.
We are excited to be a part of the growing cannabis retail environment with new store openings changing the industry dynamic. High Tide President and CEO, Raj Grover
Botanix Pharmaceuticals Limited (ASX: BOT) announced that its US-based partner, Purisys, has been advised by the US Drug Enforcement Administration (DEA) that BOT's synthetic cannabidiol is no longer scheduled as a controlled substance.
Purisys received confirmation from the DEA that the company's ultra-high purity synthetic cannabidiol CBD—which is used by Botanix—has been removed from Schedule 1 of the Controlled Substances Act, along with all degradants, metabolites and analytical reference standards related to synthetic CBD.This is a huge development, as all synthetic CBD usage—which included manufacturing, storage shipping and clinical and non-clinical studies—required licensing and express approval from the DEA.
As a result, this created significant management and cost overheads for Botanix's clinical investigative clinical activities, which previously required the maintenance of licenses and physical safes for the storage of study materials. This also caused additional complications during transport across State and international borders, which were tightly controlled and did not allow for the reimportation of CBD into the US.
At approximately 11,000 square feet, Aurora has combined both a retail cannabis store and an immersive experiential space, encouraging visitors from around the world to explore unique products and participate in a rotating calendar of programming and events.
Aurora's flagship store offers visitors a safe, age-gated retail experience in full compliance with all relevant federal and provincial regulations.
Aurora is proud to call Edmonton home. It's here where we established our roots and built our business. There's no better place for us to open the doors to our flagship store and to welcome consumers from all over the world to join us in celebrating how far the cannabis movement has come and how quickly it continues to grow. Aurora Cannabis CEO, Terry Booth
This increase accounts for patients in Australia, the UK and mostly recently Brazil—thanks to a distribution agreement with ONIX Empreendimentos—representing a 40% growth since October 2019.
Unique patient numbers increased by 28% during the same period, while also being accompanied by a rise in the amount of return patients, further contributing to MGC's continued prescription growth rate.
During this period the company increased its cannabis cultivation capacity approximately threefold. This continued expansion drove additional revenues and improved margins through the sale of ultra-premium flower. Origin House also streamlined its brand portfolio to focus on category winners, including the onboarding of more Cresco products to leverage the planned California marketing launch by Cresco in Q4-2019.
Origin redesigned the sales and operations process in California to better align with an increasingly mature market in California, which is expected to ultimately lead to better margins.
Our growth during Q3 speaks to the strength of the organization, given the dedication of substantial resources to the Cresco Labs arrangement transaction and headwinds from the vape crisis, which impacted both our California and Canadian operations. Origin House Chairman and CEO, Marc Lustig
Canopy Rivers Inc (TSX:RIV), a venture capital firm specializing in cannabis, further bolstered its Strategic Advisory Board, adding Thirty Five Ventures, the business owned by NBA star Kevin Durant and sports business executive Rich Kleiman.
Canopy Rivers will also look to co-invest with Thirty Five Ventures on cannabis-related deals, leveraging the group's experience in brand development, marketing, and the sports and entertainment industry.
Since its inception, Thirty Five Ventures has invested in a number of exciting tech companies, including Silicon Valley success stories Lime, Ember, Postmates, Coinbase, and Robinhood. Additionally, Thirty Five Ventures' media arm produces The Boardroom, an ESPN+ show leveraging Durant and Kleiman's knowledge of the business of sports.
Watch this space for future updates.
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