It's been a rollercoaster ride for the cannabis industry this week, as a leading vertically-integrated US-based cannabis operator, Curaleaf Holdings, Inc (CSE: CURA) announced that it had secured a definitive agreement to acquire the state-regulated cannabis business of Cura Partners—who own of the Select brand—in an all-stock transaction valued at US$948.8 million.
The terms of the agreement are similar to recent deals negotiated by Cresco Labs and Origin House, and will see Curaleaf's retail locations, vertical integration, wellness brand and strong East Coast market presence merged with Select's wholesale model, lifestyle brand and leading West Coast market presence.
Significant cost synergies are also expected to be realized through operational efficiencies, greater economies of scale, supply chain improvements and increased vertical integration.
"The combination of Curaleaf and Select is a perfect fit. With our industry leading capacity, expansive retail distribution network and Select's impressive sales and marketing capabilities, we intend to meaningfully accelerate our topline growth trajectory with the addition of the Select Oil product range."
– CEO of Curaleaf, Joseph Lusardi
The Green Fund will be providing additional coverage of the Curaleaf acquisition later this week, so readers should stay tuned for further updates.
Canopy Growth Corporation (TSX: WEED) announced that it acquired the German-based Cannabinoid Compound Company, C3. The transformative deal will see C3's established single cannabinoid medicines brought together with the world's leading full-spectrum medical cannabis offering.
Canopy closed the deal with an all cash-acquisition of $342.9 million, furthering the company's expansion into Europe. Although this may seem steep—with the purchase being almost ten times the revenue generated by C3—it will give Canopy access to the highly lucrative German market, which is now the biggest in the world.
The agreement will give Canopy immediate access to a wealth of knowledge and intellectual property concerning synthetic and natural cannabis medical products that C3 has been developing in its nearly 20 years of research.
According to a statement from the company, the acquisition will assist Canopy Growth in empowering European physicians with knowledge and therapies drawn from a full range of synthetic and naturally-derived cannabinoid medicines.
High Tide Inc (CSE:HITI), received the regulatory green light from the Canadian government, after the Alcohol and Gaming Commission of Ontario (AGCO) approved and issued a Retail Operator Licence for their Canna Cabana Toronto store.
However, the company will also be required to secure a Retail Store Authorization before it can finalise the setup of the Toronto store. Prior to its' opening the AGCO will also be required to conduct a pre-opening inspection to ensure that High Tide are ready to sell cannabis products to the public in accordance with the cannabis retail regulations and standards.
High Tide are a retail-focused cannabis corporation based in Alberta, who have enhanced their offering by manufacturing and wholesale distributing smoking accessories and cannabis lifestyle products.
"High Tide's best efforts are being put toward this project and we look forward to the privilege of the Toronto Store becoming a part of the surrounding community for the long term."
– CEO of High Tide, Raj Grover
The research-driven cannabis company, MediPharm Labs Corp (TSXV:LABS), announced that it had appointed Braden Fenske as the company's Chief Strategy Officer.
MediPharm Labs was first founded in 2015, and possesses the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the ACMPR without first receiving a cannabis cultivation licence.
The company's private label program has been a high margin business for the cannabis cultivator, and it has already amassed numerous product supply partners who are producing proprietary cannabis oil concentrate products for resale globally.
The position is a newly-created executive role, and will see Fenske—the company's former Group Product Director—become responsible for advancing strategic corporate initiatives in collaboration with executives and operational teams.
CannTrust Holdings Inc (TSX:TRST) announced the disastrous pricing of its previously-announced underwritten public offering of 36,363,636 common shares, at a cost to the public of US$5.50 per share. The news caused CannTrust stock to plummet in value, falling 13 percent toward a four-month low in active premarket trade.
CannTrust has confirmed that it intends to use the net proceeds of the offering for general corporate purposes, including cultivation and facility expansion, expanded outdoor growing, international expansion, enhanced extraction capacity, upgrades for GMP Certification and biosynthesis development.
Underwriters will also receive a 30-day option to purchase up to an additional 4,636,363 and 818,182 common shares, respectively—at the public offering price—less the underwriting discount.
Aurora Cannabis Inc (TSX:ACB), revealed that it had entered into a $10 million royalty-bearing commercial license agreement with the EnWave Corporation (TSX-V:ENW). The deal will provide Aurora with exclusive rights to EnWave's patented Radiant Energy Vacuum drying technology for the production of cannabis materials in the European Union, excluding Portugal.
The agreement will also see Aurora secure exclusive license options for both Australia and South America—excluding Peru—which are exercisable pursuant to minimum machine purchase order requirements. The two companies also announced that Aurora has already placed a purchase order for two EnWave 120kW REVTM dehydration systems for its Aurora Sky and Aurora Sun facilities in Canada.
Aurora have confirmed that it will share an undisclosed percentage of the royalties generated through sub-licensing of EnWave's patent portfolio with the company in the jurisdictions where they hold the exclusive rights to technology.
Organigram Holdings Inc (TSX VENTURE: OGI)—the parent company of leading licensed cannabis producer Organigram Inc—announced that it has applied to list its common shares on the NASDAQ Global Select Market.
The listing of the company's shares remains subject to the approval of the NASDAQ and the satisfaction of all applicable listing and regulatory requirements. Organigram have already confirmed that it will continue to maintain the listing of its common shares on the TSX Venture Exchange under the symbol "OGI".
As part of filing a Form 40-F—which Organigram has already done in anticipation of its' upcoming NASDAQ listing—the company will also refile its annual financial statements for the fiscal years ending 2017 and 2018 to include statements in the audit report of the Company's independent registered public accounting firm. This is being done to clarify that Organigram's consolidated financial statements have been filed in accordance with International Financial Reporting Standards "as issued by the International Accounting Standards Board".
Once complete, the change will bring Organigram into line with the requirements of the United States Securities and Exchange Commission.
"As a management team we are seeing increased interest from investors in the U.S. and internationally and believe that having a listing on the NASDAQ will facilitate trading. In addition, based on precedents in the cannabis space, we expect trading volumes to increase which should result in increased liquidity for all investors".
– Chief Financial Officer of Organigram, Paolo De Luca
Watch this space for future weekly updates.
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