Tilray exports medicinal cannabis to Switzerland, iAnthus opened a new dispensary, Cresco Labs closed an agreement to sell its Illinois facility, and more!
Valens GroWorks Corp. (TSXV: VGW) was in the spotlight again this week, after the company announced that it is rebranding to 'The Valens Company,' and effective from market open on December 19, 2019, will now trade on the TSXV under the ticker VLNS.
The rebrand solidifies the company's focus on the development and manufacturing of innovative cannabis products and marks its commitment to enter high-value international markets in 2020.
The introduction of our new parent company brand, The Valens Company, on the eve of Cannabis 2.0, is a reflection of our growth and transformation over the past few years Valens GroWorks CEO, Tyler Robson
The company also announced that it has entered an amended manufacturing and sales licence agreement with SōRSE Technology Corporation, which grants Valens an exclusive licence for Canada, Europe, Australia and Mexico to use the proprietary SōRSE emulsion technology to produce, market, package, sell and distribute cannabis-infused products.
This increases the addressable market from 37 million in the current Canada only agreement to 700 million people in the new Agreement, an increase of almost 20x.
Furthermore, the agreement provides a framework for Valens to obtain rights to establish non-exclusive agreements to sell cannabis-infused products using the Technology in the U.S. market and other markets, globally.
During the week Valens also published revenue guidance for Q4 2019 in the range of $27 million to $30 million, as well as its intention to commence a NCIB for the purchase and cancellation of up to 6,275,204 of its common shares. The NCIB will be funded with cash on hand and the Company's current positive cash flow from operations.
The company also expects to report that it has extracted over 24,400 kilograms of cannabis and hemp biomass in the fourth quarter of 2019.
This is roughly in-line with the amount of biomass processed in Q3 2019 and reflects the anticipated shift in focus to white label manufacturing and the demand from our customers to launch a breadth of "Cannabis 2.0" products into the market.
Curaleaf Holdings Inc (CSE:CURA) announced that Tracy Brady will become Vice President, Corporate Communications at the company, effective immediately.
Tracy brings over 20 years of experience executing high profile public relations and corporate communications strategies for consumer brands, companies and executives.
In partnership with the marketing team, Tracy will lead media relations, as well as external and internal communications for the company.
I am thrilled to be joining Curaleaf and its talented executive team at such an exciting time for both the company and the industry Curaleaf Vice President of Corporate Communications, Tracy Brady
Tilray Inc (NASDAQ: TLRY) announced it has successfully exported medical cannabis extracts to Switzerland.
Tilray's entry into Switzerland marks the fourteenth country to distribute Tilray's medical cannabis products, from its Good Manufacturing Practices (GMP)-certified production facility, to patients in need.
The import and export permits were received in early December 2019, with the shipment of Tilray's medical cannabis extracts successfully arriving in Switzerland on December 13. Following this first shipment of extracts, Tilray also anticipates exporting dried medical cannabis to Switzerland, offering patients an assortment of form factors to meet their varying medical indications.
We're proud to deliver Tilray's medical cannabis to Swiss patients in need as we continue our expansion into Europe and around the globe. Tilray's Managing Director in Europe, Sascha Mielcarek
The company also announced a merger with Privateer Holdings Inc, which officially closed on December 12, 2019.
Pursuant to the merger, all of Privateer's capital stock outstanding immediately prior to the effective time of the merger were cancelled and automatically converted solely into the right to receive the applicable portion of an aggregate shares of Tilray Class 2 common stock and shares of Tilray Class 1 common stock issuable as consideration in merger.
Tilray did not pay any cash consideration in connection with the merger.
iAnthus Capital Holdings Inc (CSE: IAN) announced that it has opened its new dispensary in Phoenix, Arizona. This dispensary, currently operating under "The Holistic Center" brand, has replaced a prior location in Phoenix.
The new location, 21035 North Cave Creek Road, Suite C 3-4, is 2,000 square feet and has 13 points of sale, double the number of the prior location. The newly renovated, fresh, modern facility features an open layout that allows for a larger brand and product selection, better customer experience and shorter wait times.
The new store has been designed in conjunction with the overall Be. store rebranding concept and will be converted to a Be. store with the other Arizona stores in early 2020. The Holistic Center is one of four retail dispensaries iAnthus acquired in Arizona through the MPX acquisition which closed in February 2019. The remaining three operate under the "Health for Life" brand. In aggregate, iAnthus has about 5% market share in the state, including its wholesale business.
Operationally, we are well into right sizing, post our MPX acquisition, fully integrated across all our acquisitions including two full quarters of MPX. We are right sizing our Company for growth, revenues are strong, and gross margin and EBITDA are moving in the right direction. Customer acquisition and retention initiatives are beginning to have real results and general distribution of our brands continues to expand. iAnthus CEO, Hadley Ford
Concurrent with the closing of the sale, Cresco has agreed to enter into a long-term, triple-net lease agreement with GreenAcreage and will continue to operate the property as a licensed medical & recreational cannabis cultivation and processing facility.
Cresco's Lincoln property is expected to be 220,000 square feet when completed, making it the largest such facility in Illinois. With more production capacity than any other cannabis company in the state, Cresco is positioned to grow its already leading 25% market share.
Sunniva Inc (CSE:SNN) provided an update on its California operations, announcing that it is taking steps to preserve its available funds to allow it to actively pursue its rights under the previously disclosed dispute related to the Build to Suit Lease of the Cathedral City Glasshouse and to deal with disputes with certain of its debt holders for due, and claimed due, debt.
As part of these cost-saving measures, the company is reducing its business activities in California relating to both the extraction facility in Cathedral City and the distribution facility in Coachella while seeking opportunities to monetize both, and is actively pursuing the sale of the Long Beach warehouse.
In addition, the company continues to work towards the closing of the sales of its Canadian assets under the Natural Health Services Ltd. and Sunniva Medical Inc. transactions. While the company believes that it has strong legal positions with respect to the announced disputes and is taking steps to exert its position, there can be no certainty that the company will ultimately prevail or that it will be able to deal with all of its debt as it becomes due.
The lease on the Cathedral City Glasshouse is Sunniva's primary asset and we intend to pursue all available options to resolve these disputes. Sunniva CEO, Dr. Anthony Holler
MediPharm Labs Corp (TSX:LABS) announced that the Australian Therapeutic Goods Administration (TGA) has notified the company that its Canadian manufacturing facility meets the requirements for Good Manufacturing Practice for Medicinal Products (GMP), a key business breakthrough that increases MediPharm Labs' global manufacturing capabilities.
With the formal certificate now issued, MediPharm Labs is the first Canadian extraction-only cannabis company to announce TGA GMP certification, reflecting that the company's Canadian facility was purpose-built to GMP standards.
This internationally recognized certification is only granted to companies that can demonstrate consistency, precision and quality in all stages of production and are able to comply with GMP principles for manufacturing Active Pharmaceutical Ingredients and final medicinal products.
Rise currently has locations in Carlisle, Erie, Hermitage, King of Prussia, Latrobe, Mechanicsburg, Steelton and York. GTI entered the Pennsylvania market in 2017 and operates a manufacturing facility in Danville where the company produces branded products, including its flagship Rythm brand.
"We are excited about this project and would like to welcome Rise™, an experienced cannabis operator, to Lawrence County," said Lawrence County Regional Chamber of Commerce Investor Relations Coordinator Erin Orrico.
We look forward to bringing high quality cannabis products and a customer-first retail experience to more patients in the state. GTI Founder and CEO, Ben Kovler
Watch this space for future updates.
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