Stacking Up Wins – CropLogic Scores $15m Contract While MGC Publishes Quarterly Report

Spectrum Therapeutics partners with Tree of Knowledge, Acreage closes a series of sale-and-leaseback transactions, and MGC updates the market.

The award-winning global agronomy company, CropLogic Limited (ASX: CLI), scored again this week, after it commenced the first shipment of hemp biomass from its Hemp Farm Trial under an A$15 million contract.

One of the major goals of LogicalCropping—the wholly owned CropLogic subsidiary administering the trial—is to further refine the company's suite of agricultural technology via the real-world use of its yield optimization platform. As part of the trial, CLI's hardware technology will be used to monitor and track key crop metrics in real-time, such as soil moisture and irrigation levels.

CLI believes that the data generated from the trial crop will also be invaluable in helping CropLogic to better support the market, while revenue derived from hemp sales will be used to further the development of CLI's agricultural technology and support future product pushes.

'The commencement of shipping of biomass is a significant milestone in the hemp trial farm. This milestone caps off seed to sale story for the hemp trial farm and speaks volumes to CropLogic's agronomy, farm management, and agtech expertise. CropLogic CEO, James Cooper-Jones

The company also released its quarterly update for the period ending 30 September 2019. During this quarter the company hit many milestones at its Central Oregon Hemp Farm Trial by making use of CLI's agtech and farm management expertise, including the completion of planting, growing and crop management activities.

As a result, CLI was able to successfully complete its first industrial hemp compliance test, allow it to commence shipping of raw hemp biomass.

Under the agreement CropLogic will also have the potential to extend the deal further, which should give the company an opportunity to maximise its returns even further.

The company's planned expansion of its Oregon hemp cropping operations also progressed significantly during the quarter, along with its investigations into the possibility of further expansions into the Australian market.

CropLogic Limited has just released an update on their trial hemp farm in Central Oregon, which began to flower in September and is expected to yield 1 million pounds of hemp biomass.

Cresco Labs (CSE:CL) has announced that the HSR waiting period—during which the pending acquisition of Tryke Companies could not be completed—expired without the issuance of a "second request" by the United States Department of Justice Antitrust Division.

As a result, the transaction is now anticipated to close during the first half of 2020 and is subject to certain closing conditions, including the approval from the States of Nevada, Arizona and Utah. According to the CEO of Cresco Labs, Charlie Bachtell, the completion of this transaction "represents the final major piece of our targeted footprint".

"Upon the closing of the Transaction, Cresco will have cultivation, processing, and retail assets in strategic and culturally significant legal states representing 71% of the U.S. addressable cannabis market. The Company's focus on distribution and brand building will enable it to continue to capture solid market share in each of these key states as legal markets continue to develop," Bachtell said.

At Cresco, we embrace compliance. Obtaining this milestone is indicative of the hard work Cresco and other companies in the industry have been doing to work with regulators.Cresco Labs CEO and Co-Founder, Charlie Bachtell

MGC Pharmaceuticals (ASX:MXC) hit another home run this week, after the company announced that it had achieved multiple key milestones in its newly released September Quarterly Report.

During this period the company saw an increase in first material prescriptions, patient numbers and revenue streams, while total cash receipts reached AUD 413,000. This was the result of MGC Pharma's particularly strong sales during the September-October period, which accounted for more than €300,000 in purchase orders.

The company's prescription numbers experienced a surge during this period, quickly climbing from 200 to 800, and then most recently reaching 1000 in October. Over the quarter the company also completed a beta test in the Chinese market with online retailer YuShop, which generated positive customer demand.

MGC Pharmaceuticals is a European-based company which specialises in researching, developing and distributing cannabinoid derived medicines.

The medical division of Canopy Growth Corporation (NYSE:CGC)—which is known as Spectrum Therapeutics—announced this week that it had partnered with Tree of Knowledge International Corp to provide education and support for patients and healthcare professionals working within the its Canadian healthcare network.

As part of the two-year agreement, Spectrum Therapeutics will collaborate with Tree of Knowledge's partner clinic, Jack Nathan Health, to launch several e-learning modules on its online education platform for healthcare professionals practicing in Jack Nathan clinics.

Through its partnership with Jack Nathan Health, Tree of Knowledge will offer chronic pain management and medical cannabis education programs in Jack Nathan clinics—which are located in 74 Walmart stores across six Canadian provinces—along with six locations in Mexico which are ideally positioned to support the opening of the Mexican medical cannabis market while leveraging Spectrum Therapeutics' global expertise in patient and physician education.

Continuing to invest in training and education programs remains a priority for us as a gap in knowledge still exists for many healthcare professionals when it comes to medical cannabis. Canopy Growth Corporation Chief Medical Officer, Dr. Mark Ware

Acreage Holdings, Inc (CSE: ACRG.U) announced the closing of a series of sale-and-leaseback transactions for the sale of certain properties and facilities from Acreage to GreenAcreage Real Estate Corp, for an aggregate of approximately $18 million to Acreage Holdings and approximately $23 million overall including payments to a third-party seller. 

The locations funded and closed today include facilities in Massachusetts, Florida and Pennsylvania.  Acreage Holdings and GreenAcreage expect to close on additional facilities in Illinois and Connecticut within the next thirty days. Acreage Holdings is expected to undertake significant expansion at the properties sold and additional properties to be closed upon.

GreenAcreage has committed to provide up to approximately $43.9 million in additional financing in commitments or funding related to properties in Florida and Illinois. Concurrent with the closings, Acreage Holdings entered into long-term, triple-net lease agreements with GreenAcreage and will continue to operate the properties as licensed cannabis facilities.

The CEO of Acreage Holdings, Kevin Murphy, discusses the future of marijuana legalization in the US.

Aurora Cannabis Inc (NYSE:ACB) launched its new national bilingual advertising campaign, Ready for Edibles, which is intended to educate new and experienced cannabis consumers on the responsible consumption and safe storage of edibles products before they become available for sale in the Canadian market this December.

In the visual style of Not Safe For Work (NSFW)¸the campaign creative will depict blurred images of cookies, gummies and other edibles products stamped with the wording: ADULTS ONLY, stating "Edibles are coming and they're not for kids." The campaign can be seen at cannabis retail outlets across Canada and will be complemented online with digital assets as well as other out-of-home opportunities to connect with customers.

Educational content will also focus on identifying signs of over-consumption, understanding the differences in onset times and effects, cautions around mixing with alcohol and driving while intoxicated. All of Aurora's NextGen cannabis products, including cookies, gummies, chocolates and mints, will include a certified, lab-tested concentration of both THC and CBD.

"The roll-out of Aurora's next generation of high-quality cannabis products is very exciting and we are proud to be able to offer new forms like vapes, concentrates and edibles." Aurora Cannabis CEO, Terry Booth

Watch this space for future updates.

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Hugo Gray
Hugo Gray

Hugo Gray is a Melbourne-based journalist with a body of work that covers a diverse range of topics, including immigration law, sex technology, and now the rapidly expanding cannabis industry.

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