MediPharm completed its second set of export shipments, Impressions Healthcare filed a patent, Canopy Growth purchased Biosteel, and more!
Cresco Labs Inc (CSE: CL) scored a big win this week, after the company announced that its three cultivation facilities in the state of Illinois have been approved for growing adult-use cannabis by the Illinois Department of Agriculture.
The three facilities, located in Joliet, Kankakee and Lincoln, can represent a total combined cultivation space at the completion of 630,000 square feet per Illinois state regulations.
The approval of our cultivation facilities is a key milestone in our preparation for the legalization of recreational cannabis in Illinois on January 1, 2020. As the only operator with three cultivation facilities in Illinois – the maximum number allowed in the state – we will have the scale and capacity to effectively capitalize on the dramatic increase in demand for cannabis expected next year. Cresco Labs CEO and Co-founder, Charlie Bachtell
The company also announced that it has signed a binding agreement to sell its Joliet and Kankakee, Illinois properties to Innovative Industrial Properties, Inc for approximately $46.3 million, which amount includes funding for additional tenant improvements at the Kankakee property.
Concurrent with the closing of the sale, Cresco Labs will enter into a long-term, triple-net lease agreement with IIP and will continue to operate each property as a licensed cannabis cultivation and processing facility.
The two properties represent approximately 100,000 square feet of industrial space in aggregate. The agreement is expected to close within the next 30 days.
Impression Healthcare (ASX: IHL) filed a patent for its novel cannabinoid formula—known as IHL-216A—which is designed to be used as a neuroprotective agent subsequent to head trauma.
The company's drug discovery team argues that the correct administration of the drug following a head injury will help to reduce neuronal cell death and damage, which is a growing concern to many athletes worldwide.
Traumatic Brain Injury, according to IHL, accounts for 10 million deaths/hospitalizations globally each year. Despite the prevalence of TBI, however, there are no existing pharmaceutical agents which have currently been approved to treat it.
There is a clear need for a post-injury treatment as the personal and societal costs of TBI are enormous. IHL's Chief Medical Officer, Sud Agarwal
High Tide Inc (CSE:HITI) filed its financial results for the third fiscal quarter of 2019 ending July 31.
Revenue for the three months ended July 31, 2019 increased by 281%, to CAD $8,288 from $2,175 for the same period in the previous year. The increases are primarily due to the acquisition of Grasscity, the retail cannabis operations of Canna Cabana which began generating revenue on October 27, 2018 as well as sales made to new customers in the Company's Wholesale Segment.
The Company generated a loss of $10,864 (2018 – loss of $687) and had net operating cash outflows of $12,584 (2018 – outflows of $1,824). The loss and cash outflows are primarily driven by start-up costs to incorporate and staff High Tide and Canna Cabana, as well as from an increase in professional fees and rent paid.
Fire & Flower Holdings Corp (TSX: FAF), announced its financial and operational results for the thirteen weeks ended August 3, 2019.
During this period 22 branded cannabis retail stores open and operating across the provinces of Alberta, Saskatchewan and Ontario, while the company also entered into agreements to acquire 13 additional licensed cannabis retail stores in the provinces British Columbia, Alberta and Saskatchewan.
Fire & Flower also secured $15.6 million in system sales—which includes corporate and licensed stores representing a 43% increase over Q1-2019—while total revenue reached $11.1 million, at a gross profit of 36.5%,
Fire & Flower's financial and operational results for the quarter demonstrate that the Company is continuing to build the infrastructure required to support the rapid growth of our retail network and deliver on our objectives. Fire & Flower's Chief Executive Officer, Trevor Fencott
KushCo Holdings, Inc (OTCQX:KSHB), announced it has entered into definitive agreements with investors for the purchase and sale of 17,197,570 units, with each unit consisting of one share of common stock, par value $0.001 per share, and a warrant to purchase half a share of common stock, at an offering price of $1.75 per unit, pursuant to a registered direct offering.
The company's warrants will have an exercise price of $2.25 per share, will be immediately exercisable and will expire five years from the date of issuance. The gross proceeds of the offering will be approximately $30.1 million before deducting placement agent fees and other estimated offering expenses.
KushCo intends to use the net proceeds for working capital and for other general corporate purposes. The closing of the registered direct offering is expected to take place on or about September 30, 2019, subject to the satisfaction of customary closing conditions.
MediPharm Labs Corp (TSX: LABS) announced the successful completion of its second set of export shipments of medical cannabis concentrate, which were 137% greater in volume compared to its first export into Australia in June 2019.
Through its wholly-owned subsidiary, MediPharm Labs Inc., the company received its second set of export permits from Health Canada to ship an increased volume of medical cannabis concentrates from Canada to Australia.
Prior to the shipment, the Australian Government's Office of Drug Control Section also issued a second set of import permits.
We are pleased to have completed our second set of shipments of medical cannabis concentrate into Australia in the third quarter as we look to participate in addressing the growing Australian medical patient demand. MediPharm Labs CEO, Pat McCutcheon
MedLab Clinical (ASX: MDC) has already received an export order from Hong Kong for 1500 units of its latest cannabinoid formula, NanoCBD.
The CBD-based formula has already received FDA approval and is currently being manufactured in a GMP certified facility in California.
The early order shows promising demand for NanoCBD, which utilizes Medlab's unique proprietary delivery system, NanoCelle, a delivery method that boasts higher absorption capabilities than competitors.
Canopy Rivers Inc (TSX: RIV) completed a US$10 million investment in TerrAscend Canada Inc—a subsidiary of its portfolio company TerrAscend Corp.
The investment includes the purchase of 13,243 units, with each unit consisting of: (i) one unsecured convertible debenture of TerrAscend Canada with a principal amount of CA $1,000, and (ii) 25.2 common share purchase warrants of TerrAscend exercisable until October 2, 2024.
TerrAscend is the first and only cannabis company with sales in Canada, the U.S., and Europe.
We think TerrAscend is uniquely positioned to meet the evolving consumer demands in the three largest cannabis markets worldwide. President & CEO of Canopy Rivers, Narbe Alexandrian
Canopy Growth Corporation (TSX:WEED) announced that it has completed an all-cash transaction to purchase a majority stake in BioSteel Sports Nutrition Inc.
The transaction provides Canopy Growth with a significant platform to enter the sports nutrition and hydration segment, and lays the groundwork for the adoption of cannabidiol in future product offerings in accordance with regulations globally including products to be sold in the U.S. containing CBD sourced from federally permissible industrial hemp.
BioSteel products have been purchased by over 70% of the teams in North America's four major sports leagues and ambassadors of the brand include: Ezekiel Elliott, of the Dallas Cowboys; Connor McDavid, of the Edmonton Oilers; WTA player, Eugenie Bouchard; Andrew Wiggins with the Minnesota Timberwolves; Tyler Seguin with the Dallas Stars; Jalen Ramsey, with the Jacksonville Jaguars; NHL Hall of Famer, Wayne Gretzky; Gleyber Torres, with the New York Yankees; and Smiths Falls very own, LPGA golfer Brooke Henderson.
VIVO Cannabis Inc (TSX-V:VIVO) announced that it expects to commence the first harvest of cannabis at its Kimmetts facility in Napanee, Ontario in the fourth quarter of 2019.
The company also unveiled its 2020 plans for the facility, which include an accelerated planting schedule and the contemplated use of five additional acres of land adjacent to the existing airhouses.
The announcements were made during VIVO's analyst and investor day held in Napanee, where the Company showcased its airhouse technology, extraction programs and progress towards achieving EU GMP certification.
The fact that we expect to be able to commence first harvest within our stated timelines and budget speaks to the early success of the airhouses and the talent of our Napanee team. Chief Executive Officer of VIVO, Barry Fishman
Origin House (CSE: OH) announced that the company's distribution arm, Continuum, has entered into an agreement to become the exclusive distributor of Cannabiniers™, producer of Two Roots™, Creative Waters™, and Baskin™ cannabis-infused products in California.
The initial term of the Agreement is one year.
The Chairman and CEO of Origin House, Marc Lustig, said that "we believe infused beverages will be one of the key product categories of the future and are proud to partner with Cannabiniers – a well-known brewer and growing infused beverage brand".
"Our California distribution platform continues to strengthen as we prepare for the closing of the acquisition of the Company by Cresco Labs Inc, upon receipt of regulatory approvals."
Watch this space for future updates.
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