Cresco completes the first harvest at its Lincoln facility, Indiva annouces a partnership with Dycar, MedLab executes a distribution agreement, and more!
There was big news from Canopy Growth Corporation (NYSE:CGC) this week, after the company announced that David Klein had been appointed Chief Executive Officer as of January 14, 2020, causing shares to spike in value.
Klein brings a wealth of expertise to this role, having served in a number of senior leadership capacities over the past 14 years at Constellation Brands. His capabilities include extensive CPG and beverage alcohol industry experience, strong financial orientation, and experience operating in highly regulated markets in the U.S., Canada, Mexico and Europe.
Klein is an experienced strategist with a deep understanding of how to build enduring consumer brands while leveraging operational scale across a dispersed production footprint. He is a strong leader with a proven track record of developing diverse and high performing teams.
Canopy Growth sits at the forefront of one of the most exciting new market opportunities in our lifetime. Canopy Growth CEO, David Klein
The company also revealed its upcoming Cannabis 2.0 portfolio of products, which are set to come to market as part of the second wave of Canadian cannabis commercialization. With December 16, 2019, being the first date new product formats can be sold into distribution channels. The Company expects that in most markets new products will not be seen on shelves until early in January 2020.
Leveraging learnings from Cannabis 1.0, the Company will stagger its launch of various products and formats to ensure a smooth roll-out. As such, availability will vary by province based on their individual ordering and distribution activities. While the Company is providing this update in advance of the launch of Cannabis 2.0 products, for competitive reasons, it will not provide ongoing updates during the actual rollout period.
The first wave of cannabis chocolate products, which will arrive in retail in early January 2020, includes Tokyo Smoke Go, Tokyo Smoke Pause, and Tweed Bakerstreet chocolate bars. Tokyo Smoke Go is a THC-infused, sativa-dominant dark milk chocolate with minimal CBD content.
This week Canopy Growth also marked its first official entrance into the US market through the launch of its new CBD brand 'First & Free'. Canopy's new CBD line will be available in the 31 U.S. states where CBD products are legal for sale, and the company reports it has filled 40 provisional patents and conducted 11 therapeutic trials.
The opening of the company's new brand comes after an announcement made in early 2019, when CGC delighted investors with the news that it was going to invest between USD$100-$150 million to establish a hemp industrial park just outside of New York City.
The market liked this move and the Canopy Growth stock price really climbed. This was one of the few times that Canopy has demonstrated slow, methodical, well thought out, growth. No rash and overvalued purchases. This is because hemp is part and parcel with creating CBD products, as they are almost always hemp-derived due to the plant's lower THC content.
Labs Corp (TSXV:LABS) announced that its subsidiary, MediPharm Labs
Australia Pty Ltd, 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 MediPharm Labs Asia Pacific CEO, Warren Everitt
Cresco Labs (CSE:CL) announced that it has completed its first harvest from its expanded cultivation facility in Lincoln, IL.
With the recent growth of the state's medical market and adult-use legalization going live on January 1st, Cresco has been scaling operations to be able to accommodate what is expected to be one of the largest cannabis markets in the country. To date, Cresco has been able to capture an approximate 25% market share through its original 35,000 square feet of aggregate cultivation space across its three facilities.
Earlier this year, after the expansion of the medical program and the passing of adult-use legislation, the Company embarked on an ambitious expansion plan that will bring the total area under cultivation to approximately 243,000 square feet by year-end.
Under the terms of the letter agreement, Dycar will provide Indiva with initial non-dilutive financing of $3.1 million, and Indiva will manufacture and distribute certain Dycar-branded cannabis products from the Company's licensed facility in London, Ontario.
The financing will be repaid by the deduction of Indiva services in kind to Dycar. The letter agreement may be renewed at the option of Dycar for a minimum of two additional terms, resulting in up to $4.5 million of additional non-dilutive financing. Indiva anticipates that it will begin the production of Dycar branded products in Q1 2020.
Dycar and Indiva are very much aligned in our shared pursuit of delivering the very best products to market. We are very excited to begin working with the Dycar team and creating new products that meet and exceed customer and consumer expectations. Indiva President and CEO, Niel Marotta
Curaleaf Holdings Inc (CSE:CURA) a leading vertically integrated cannabis operator in the United States, today announced that Joe Bayern will become President of Curaleaf Holdings, effective immediately.
Bayern brings over 20 years of executive leadership experience in consumer packaged goods at a critically important moment in Curaleaf's growth trajectory. He will report to Curaleaf Chief Executive Officer Joseph Lusardi.
As President, Bayern will work closely with the senior executive team to lead the company and oversee its continued growth. Bayern will primarily be focused on driving operational excellence and executing on Curaleaf's mission. CEO Joseph Lusardi will continue to oversee the strategic vision and operations of the company.
Tilray Inc (NASDAQ: TLRY) announced that its wholly-owned subsidiary, Tilray Portugal Unipessoal Lda, has received Good Manufacturing Practice (GMP) certification in line with European Union standards for its manufacturing facility in Cantanhede, Portugal.
The GMP certification was issued by Infarmed, the Portuguese National Authority of Medicines and Health Products. This is the second GMP certification for Tilray Portugal, which allows the facility to manufacture and export GMP-certified finished medical cannabis products, including dried flower and oils, from Portugal to international markets with legal medical cannabis regulations.
Tilray's EU campus in Portugal is a multi-faceted production facility that includes outdoor and greenhouse cultivation sites; research and quality control labs; and processing, packaging and distribution sites for medical cannabis.
Medlab Clinical Ltd (ASX: MDC) signed and executed an exclusive distribution agreement with Cultech Ltd for the UK, allowing Medlab's nutraceutical products ORSBiotic™ and NanoCBD™ to be distributed by Cultech Ltd.
According to Medlab's website, ORSBiotic "contains selected probiotic species which can help maintain gastrointestinal homeostasis. Saccharomyces boulardii and zinc have clinical evidence for providing therapeutic support for various triggers of diarrhoea and may help reduce the occurrence of diarrhoea in children."
NanoCBD is a hemp-derived CBD formulation that contains 16.67 mg/mL cannabidiol (CBD) as an active ingredient, in a sub-micron spray applied to the oro-buccal membrane. The product is designed to help with anxiety and inflammation.
I have worked with [Cultech] for well over a decade and they are uniquely placed to expand trade into territories beyond the United Kingdom. MedLab CEO, Dr. Sean Hall
The product line, from award-winning brand Evolab includes Chroma, Alchemy and Delta 8, all of which utilize a distillation process resulting in an extract that is 100% cannabis-derived, free from cutting agents using instrument grade CO2—considered a clean extraction method.
Harvest recently announced its commitment to creating, high-quality and trusted vaporizer products under the rigorous CannApprove testing protocol.
High Tide Inc (CSE:HITI) announced that it has entered into a definitive share purchase agreement with 2651576 Ontario Inc to acquire the remaining 49.9% interest in High Tide's majority-owned subsidiary, KushBar Inc.
Pursuant to the Definitive Agreement, High Tide, which presently holds a controlling interest of 50.1% in KushBar, will acquire the Minority Interest in a transaction that will result in KushBar becoming a wholly-owned subsidiary of High Tide.
The Transaction marks a crucial step in High Tide's strategy to capitalize on the second wave of the legalization of recreational cannabis products, including but not limited to concentrates, edibles and infused beverages, which are expected to be available in Alberta in early 2020.
As we move closer towards the new year, we are excited for what Cannabis 2.0 will have in store for High Tide and its customers High Tide's President & CEO, Raj Grover
TerrAscend Corp (CSE:TER), today announced that the Company intends to complete a non-brokered private placement to raise approximately US$20 million through the issuance of approximately 10,775,000 units at an issue price of CAD$2.45 per Unit.
Each Unit will consist of one common share in the capital of the company and one Common Share purchase warrant. Each Warrant will be exercisable to acquire one Common Share for a period of 24 months following the closing of the Offering at an exercise price of CAD$3.25 per Warrant Share.
The Company intends to use the proceeds from the Private Placement to accelerate the completion of the New Jersey cultivation and processing facilities and to make the previously announced January 2020 contingent purchase price payment related to the acquisition of Ilera Healthcare. Proceeds may also be used for working capital and general corporate purposes.
Watch this space for future updates.
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