Curaleaf launched medicinal cannabis tablets in Florida, Supreme published fourth quarter results, MediPharm Labs signed a multi-year contract with the Cronos Group, and more!
There was big news from Cresco Labs Inc (CSE: CL) this week, after it announced a significant expansion of its presence in Nevada and Arizona through the signing of a purchase agreement to acquire certain assets from Tryke Companies, LLC, a vertically integrated seed-to-sale cannabis company, including six prime ReefDispensary locations in Nevada and Arizona, expanded licensed cultivation and process capacity in Las Vegas and Phoenix and entry into the Utah market.
The purchase consideration is approximately US$252.5 million for Tryke operating assets plus US$30 million for Tryke real estate assets.
The consideration will be comprised of a mix of Cresco Labs shares (approximately US$227.5 million), which will be subject to a 9- to 21-month lock-up agreement following closing, and cash (approximately US$55 million).
KushCo Holdings, Inc (OTCQX:KSHB), today announced that it is reconfirming its annual revenue guidance for the fiscal year ending August 31, 2019 of between $145 million and $150 million in sales.
During this period the KushCo also secured a $50 million asset-based revolving credit facility with Monroe Capital—a first for a cannabis-related company—as well as upgrading its listing status to the OTCQX (OTC Markets' highest tier) and applying to be listed on the Nasdaq Global Select Market (Nasdaq's highest tier).
The company also partnered with CA Fortune to launch retail services to CBD and Hemp brands.
"We have never been more excited about how our Company is positioned than right now. We believe we have the right people, customer base, and the strategy to build something truly special. We are executing and growing because we have built the proper foundation, with the optimal long-term strategy of putting an intense focus on creating value for our customers."KushCo Chairman and CEO, Nick Kovacevich
Curaleaf Holdings, Inc (CSE: CURA) announced that the company is the first in Florida to launch medical cannabis tablets, available in all 26 Curaleaf dispensaries across the state.
Curaleaf, operator of the largest cannabis retail footprint in the US, with 49 dispensaries across the country, also sells medical cannabis in tablet form in Connecticut, New Jersey, Maryland and New York, with plans to launch in additional states.
The tablets, which are mint-flavored, are a refreshing form of the medication that offers patients convenience, portability and ease of use as the tablet disintegrates on the tongue and is slow acting.
The Supreme Cannabis Company, Inc (TSX: FIRE), announced impressive financial and operating results for the fourth quarter and fiscal year ending June 30, 2019, which saw revenue rise to $41.8 million.
Supreme Cannabis' core recreational flower brand, 7ACRES, accounted for the company's marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019 and 90% quarter over quarter from $10 million in Q3 2019.
In the fourth quarter, 7ACRES continued to transition sales from its legacy wholesale contracts to recreational sales channels, increasing revenue from recreational markets by 51% between Q3 2019 and Q4 2019. As the brand continues to build equity amongst consumers, it will bring new proprietary strains to market
"Our positive Adjusted EBITDA and significant revenue growth in the fourth quarter reflects the rapid scale of our 7ACRES business and continued strong sales pricing for our brands from the provinces as we transition our premium supply to recreational sales channels. With strong confidence in our core business, we began fiscal 2020 with two accretive acquisitions that expanded our addressable markets, provided valuable licensed operating assets and focused expertise."Navdeep Dhaliwal, CEO of Supreme Cannabis
Sunniva Inc (CSE:SNN) closed on the third tranche of the company's non-brokered private placement, previously announced on August 1, 2019 of CAD $325,000 for a total of 325,000 units.
In aggregate the total gross proceeds raised by the Offering was CAD $7.57 million and 7.57 million units issued. Each Unit consists of a principal amount of unsecured promissory notes of the company and common share purchase warrants of the Company.
As previously disclosed, proceeds of the offering will be used to provide short term working capital for operations in California, capital costs at the Sunniva California Campus and general corporate purposes.
iAnthus Capital Holdings, Inc. (CSE: IAN) announced that its U.S. subsidiary has entered into an agreement to acquire WSCC, Inc ("Sierra Well"), a leading Nevada-based vertically licensed cannabis company with two dispensary locations and over 20,000 square feet of cultivation/production facilities in Reno and Carson City.
The transaction is expected to close in the first half of 2020, subject to customary regulatory approvals including approval of the license transfers by the Nevada Department of Taxation. Upon closing of the transaction, the Sierra Well dispensaries will be renamed under the company's Be. brand, which is being launched nationwide in October 2019
The total consideration, to be paid upon closing of the transaction, is approximately US$27.6 million, comprised of approximately US$5.1 million to be paid in cash and US$22.5 million to be paid in iAnthus shares priced at the 10-day volume-weighted average price prior to closing of the transaction.
"Strengthening our foothold in one of the most successful adult-use cannabis markets is consistent with our strategy to deliver iAnthus' nationally recognized products in premier markets."iAnthus CEO, Hadley Ford
Valens GroWorks Corp (TSXV: VGW) announced that it has entered into an agreement to supply cannabis oil derivative products to Medical Cannabis by Shoppers, the online medical cannabis ecommerce site of one of Canada's most trusted pharmacy retailers.
Valens will utilize their five different types of extraction services including CO2, Ethanol, Hydrocarbon, Solvent-less, and Terpene extraction as well as its IP and formulation services to create a variety of innovative oil-based products for Shoppers' medical platform.
Under the agreement, Valens will immediately begin production of gel caps and tinctures with further expansion of product offerings to include vaporizer cartridges, topicals and other desired products as permitted for sale by Health Canada regulations.
MediPharm Labs Corp (TSX: LABS) announced that it has signed a multi-year contract manufacturing agreement for the filling and packaging of vaporizer devices, subject to approval by Health Canada, for Cronos Group Inc's adult-use brand, COVE™.
The initial term of the agreement is two years with an option for renewal. On the eve of legalization of concentrates products in Canada, we are delighted to add Cronos Group, to our expanding turnkey white-label platform.
This is the second collaboration between the two companies. In May 2019, MediPharm Labs signed a multi-year private label bulk resin supply agreement and a cannabis concentrate program agreement with Cronos Group.
"By leveraging our specialized expertise, technology and industrial-scale vape filling capabilities, we will assist Cronos Group in delivering high quality, purity assured and Health Canada approved, derivative products further advancing their industry-leading reputation and enhancing the supply chain in this important new category."CEO of MediPharm Labs, Pat McCutcheon
Next Green Wave Holdings Inc (CSE: NGW) announced that it has partnered with the iconic "No Jumper" brand and host "adam 22" to roll out its latest premium exotic flower strains.
The products will be featured on a monthly basis through No Jumper's Podcast with 45 million viewers per stream and Next Green Wave's brand house SDC. The flower will be available at leading Los Angeles and San Diego dispensaries, including March and Ash within two weeks.
This strategic partnership will enable Next Green Wave to gain access to major cultural events such as music festivals and leverage its many influencer and celebrity social channels that directly reach the Company's target consumer demographic.
Finally, VIVO Cannabis Inc (TSX-V: VIVO) announced it had partnered with Linneo Health S.L.—a subsidiary of Alcaliber S.A.—to be its European medical cannabis supply partner.
Linneo Health, a European leader in the pharmaceutical cannabis industry, recently received its EU-GMP (Good Manufacturing Practices) certification from the Spanish regulatory authorities.
The agreement is a multi-year commitment, with increasing supply volumes as VIVO expands in the European medical market.
"We are excited to have an EU-GMP certified source of medical cannabis located within Europe. Through this partnership, we expect to be able to supply the European high-growth market with premium medical cannabis products and services. Our European based supply will allow VIVO to contribute to addressing the unmet medical needs of patients in Germany, which is one of our key target markets for international expansion."VIVO CEO, Barry Fishman
Watch this space for future updates.
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