Cultivation Archives - Green Market Report

Debra BorchardtDebra BorchardtDecember 5, 2018
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6min2830

When a company is caught growing cannabis illegally, it’s often the landlord who’s left to clean up the mess. The criminals rarely come back for their equipment and the police want nothing to do with it either.

So, the landlord is confronted with clearing out sometimes hundreds of sophisticated, expensive lights, watering systems, and other various cultivation items in order to get the space back to rent. Metal scrapper and the owner of CH Hydroponics James Robba stumbled into the market when he was asked to disassemble a huge illegal grow.

Initially, he tried taking the lights apart to sell for scrap metal. Then he found that he could make more money keeping the lights intact and reselling them versus taking the lights apart. He began testing the lights to see if they worked and when they did he began selling them. “I was getting between $200 and $250 per ballast,” said Robba. For the uninitiated, ballasts run grow lights that are used in indoor grows.

After selling off his first tear down, he began running ads on Craigslist offering his demo work in order to get more second-hand equipment. “We started tearing down huge grows,” he said. “People that get busted don’t go back for their equipment.” He said building managers and landlords began calling him.

“We’ve seen gnarly stuff,” said Robba. “We’ve seen people tunnel down, right through a foundation, down 20 feet to tap into the main power line.” He has disassembled illegal grows with 500 lights making these $5-$6 million illegal operations.

Busted

You would think that it’s the landlord who has called the police and informed them about the illegal grow. But Robba said instead it’s usually disgruntled employees who end up tipping off the police. He told one story about an unhappy employee who knew the building didn’t have security guards on Sunday, so he went there with the intention to steal. Instead, he set off a silent alarm which automatically called the police. Oops.

Another way that illegal grows are discovered is that cities are using drones to find buildings with excessive amounts of HVAC equipment on the roof. Most buildings will have a few of these mechanical units on the roof, but a grow could have as many as 40. A telltale sign of something unusual.

Then there’s the smell. Robba said one operation without thinking opened a roof panel on the building, thus letting out the fragrant aroma of its cannabis plants. Neighbors complained and called the police.

Code Violations

With all these illegal grows getting busted and torn down, one would think people would be going to jail but that isn’t happening. Police departments found it wasted time and money to go after the lawbreakers. An operation one block from the police station in San Bernardino was busted with over 25,000 plants and no one went to jail.  Instead, cities found that good old-fashioned building codes and civil penalties were the way to go.

It’s very black and white. There is no way to argue building codes. It removes the police and courtrooms from the equation. It’s very easy for a city to tag a property with a building code violation and charge the owner with fees and penalties. Five tons of HVAC equipment on a roof is a dangerous situation for the occupants inside because in general buildings aren’t able to withstand that amount of weight.

It’s a violation and the city can earn big money by charging an owner a daily penalty until the building comes back into compliance. So, rather than spend money on police and attorneys to shut down an illegal grow, the city can instead earn money and still have the same outcome. This incentivizes the owners and landlords to fix the situation as quickly as possible.

Used Equipment

If the equipment is cheap and old, Robba will charge the owners to remove it. If it’s high quality, then they pay the landlord a reduced rate to demolish the grow. Robba said he does about two a month, but then added he’s already done three this past month. A new light can cost $250 each, while Robba pays about $20 for each ballast, he can resell them for roughly $75.

He believes the high tax rate of legal cannabis companies in California is creating the shadow black market. While many hobbyists buy his used equipment, he also believes that plenty of small black market operators are buying it as well. Still, he said it is getting harder for the illegal grows to stay in business as the city cracks down.

He doesn’t condone breaking the law, but he said the disruption of legalization has hurt the small operators who will now need to turn to other forms of business to make a living. Other things that could be more harmful than a small grow operation.


Debra BorchardtDebra BorchardtAugust 28, 2018
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3min4621

Medical marijuana producer WeedMD Inc. (WDDMF)  reported revenues of $2.1 million for the three months ending June 30, 2018. This was an increase of 83% sequentially and 787% over the same time period during last year. Revenue of $3.2 million in the first six months of fiscal 2018 represents a 1271% increase compared to the first half of fiscal 2017.

“We are pleased with our performance in the quarter, with revenues growing in excess of 700% year-over-year,” said Keith Merker, CEO of WeedMD. “Having secured supply agreements with Shoppers Drug Mart, the Nova Scotia Liquor Corporation, the Alberta Gaming, Liquor & Cannabis Commission and the British Columbia Liquor Distribution Branch, we are well positioned to deliver on our milestones, including expanding production through our newly licensed greenhouse facility, additional provincial supply agreements, building market share and accelerating growth.”

WeedMD also reported a net comprehensive loss of $1.7 million, which was much lower than last year’s loss of $4.7 million for the same time period. The loss per share for the quarter was $0.02 versus last year’s $0.08.

Looking Ahead

WeedMd said its cultivation facility was recently licensed and plants were moved into the 25,000 square feet of space throughout the month of June. This puts the company on schedule for its first harvest by September 2018. The month looks to be a busy one for the company as it is also planning to expand from the current three growing rooms to four over the next week. By the end of September, six more rooms representing roughly 60,000 square feet are expected to be licensed and populated.

By the end of this year, WeedMD is planning on having 400,000 more square feet commissioned and more than 500,000 square feet of total cultivation production space.

Merker added, “Our production platform positions the company to support existing and incoming supply commitments as well as pursue international distribution opportunities. With an expected 500,000 square feet of fully-funded production space online by the end of this year, WeedMD is poised to become a top ten licensed producer in terms of actual realizable production capacity.”


Anne-Marie FischerAnne-Marie FischerAugust 21, 2018
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8min44481

As the July 1 regulations had most California cannabis companies scrambling to meet compliance standards for cannabis products, two companies implemented the best practices they had been planning since January 1 and are now dominating the California cannabis industry.

Headset, a real-time data source for the cannabis industry released their Insights Report where Caliva and Papa & Barkley are creeping up to the top, holding 50 top-10 rankings across the state of California.

Smoking Sensations

Caliva is leading in the flower, pre-roll and vape categories, proudly showcasing information about the testing standards completed for phase II compliance in California. The San Jose based retailer offers some of the industry’s finest pre-rolls, including “House Doobies” and Dogwalkers, and Toasties, rolled into the Caliva Collection.

By passing the California cannabis standards that came into effect July 1, in regards to packaging, testing, labeling, using child- and tamper-proof technology, and using prominent wording on labeling, Caliva rose to the top.

“We started preparing for July 1 regulations in earnest by January 1st. It wasn’t easy,” says Dennis O’Malley, CEO of Caliva. “We cycled through a couple different testing labs until we felt confident we found the best.”

From the consumer perspective, it was the trust that customers feel in the Caliva experience. “Trust means providing a pristinely compliant product that does what it claims to do every time,” says O’Malley, “At Caliva, we are obsessed about delivering the products the consumers want in the manner and channel of where and how they would like to purchase.”

The Caliva Collection is an excellent example of the best practices in packaging, labeling, and engaging the customer experience.

Topical and Tincture Trailblazers

Papa & Barkley is dominating the California cannabis industry in the way of cannabis tinctures and topicals. Their strategies began early with an “all hands on deck” approach to the changing packaging and labeling regulations. In the ever-changing industry, they never see their job as complete, “We are currently working on flexible on-demand packaging systems in anticipation of more regulation changes,” says Kimberly Dillon, CMO.

Of their success in topicals, Dillon attributes ease of use and a demand for non-psychoactive products; “Topicals are an easy introduction to use as a wellness product,” Dillon says.

Providing products ranging from balms to patches, to body oils, to body soaks under the Releaf brand, Papa & Barkley provides clear labeling on both their products and on their website. Tinctures and capsules allow oral ingestion for those who are looking to use cannabis without smoking or vaping.

When Preparation Meets Opportunity

It required a strong investment to get cannabis products up to snuff for California’s regulations. “We did not predict the large impact that the July 1 regulations would have on the industry,” says Caliva’s O’Malley, “We took our lumps in Q1 of this year,” in preparation for the July 1 regulations.

For Papa & Berkley, the process is continuously evolving as they come out with new product lines and anticipate new regulation changes, demonstrating the need to be nimble in the industry.

Both companies are seeing new opportunities emerge and are working those into their strategies. “Products need to fit into consumers’ daily lives and for the vast majority of the new cannabis consumer, there needs to be micro-dosed options,” says O’Malley. Caliva plans to release products marketed as “fun for you”, “good for you”, and “relief for you” to help consumers get their best cannabis experience.

For Papa & Berkley, it’s all about helping people use tinctures and topicals to explore the vast array of products and medical cannabis therapies available to people. “Some portion of the [new user] cannabis cohort will graduate into other form factors and use cases,” says Dillon. The company plans to expand into new product lines under the Releaf brand, including Whole Plant CBD products that will allow those who aren’t in legal states to access the benefits of their award-winning products.

As new companies emerge, and existing companies merge to pool resources for compliance regulations that are ever-changing, Caliva and Papa & Berkley serve as excellent models of the way for cannabis product best practices in California and across the industry.

 


Video StaffVideo StaffAugust 13, 2018

3min5770

iAnthus Capital Holdings (ITHUF) recently broke ground for its new medical marijuana facility in Warwick, New York. The company and its subsidiary, Citiva are celebrating the groundbreaking of its medical cannabis facility.

Citiva is one of only ten licensed medical cannabis producers in New York State. This location used to be the Mid-Orange Correctional Facility, and will eventually support up to 125,000 square feet of total cultivation and processing space, with an estimated yearly medical cannabis production of 2,400 kg.

“We’re excited to be taking the first steps in building out our robust and comprehensive medical cannabis program in the State of New York. The iAnthus and Citiva teams have worked incredibly hard to reach this milestone,” said Hadley Ford, CEO of iAnthus Capital. “The growth and success of our Warwick facility will lay the foundation for the rest of our operations across New York State, and we look forward to continued expansion, development, and most importantly, service to our patients, through our vertically integrated operations.”

According to the company statement, Phase 1 of the buildout is projected to be completed in the first half of 2019. The Warwick site can eventually support up to 125,000 sq. ft. of total cultivation and processing space and will be built out in several phases. Citiva purchased the eight and a half acres of land for the Warwick facility in May of 2018 for US$526,000.

Warwick is pleased to welcome one of the nation’s leaders in the medical marijuana industry to the Warwick Technology Park and is honored that Citiva has found a home in our town,” said Michael SweetonTown of Warwick Supervisor. “Our goal in acquiring the Mid-Orange Correctional Facility was to bring well-paying jobs to the area, and we look forward to seeing this come to fruition through the official groundbreaking of Citiva’s medical cannabis facility.”


Debra BorchardtDebra BorchardtJuly 26, 2018
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3min4910

Emblem Corp. (EMMBF)  signed a non-binding Letter of Intent to acquire all of the issued and outstanding securities in Natura Naturals Inc. that it does not already own for C$25 million in cash, C$12.5 million in mortgage financing and 26,102,941 common shares of Emblem. Emblem recently announced a C$3 million investment in the company and an agreement for 3,000 kg of cannabis supply per year.

The deal is valued at C$76 million (inclusive of Natura shares already owned by Emblem). As a result of this acquisition, Emblem will further its aggressive approach to sales growth both domestically and internationally backed by robust supply from the Natura greenhouse.

“Through the due diligence process of investigating Natura as a supply partner, we uncovered significant synergies between the two organizations,” said Nick Dean, CEO of Emblem Corp. “Providing high-quality products to Emblem’s medical and adult-use audiences continues to be our top priority. With the added capacity from Natura, we are able to aggressively pursue our focus on product innovation, building great brands and finding distribution partners domestically and internationally.”

Ontario-based Natura operates a 662,000 sq ft licensed greenhouse that is currently undergoing a phased conversion and retrofit that is expected to bring up to 15,000 kg of annualized cannabis production online in 2018. Once completed in 2019, the facility is expected to bring total annualized cannabis production capacity to approximately 70,000 kg per year. Natura will also bring 32 proprietary cannabis strains to Emblem’s library, significantly increasing Emblem’s intellectual property.

According to the company, Emblem currently has supply agreements with Shoppers Drug Mart nationally, the Alberta Gaming and Liquor Commission, and has an LOI to form a joint venture with German pharmaceutical wholesaler Acnos Pharma GmbH. Emblem also has submitted an application to supply the Ontario Cannabis Stores in Ontario. Under Emblem’s portfolio, it is expected that Natura will be a stand-alone brand in the adult-use market, joining Symbl, Emblem’s recently launched recreational brand.

In light of the Natura acquisition, Emblem has made the decision to suspend greenhouse construction plans at their Paris Road location. The construction of Emblem’s GMP certified lab located at their Woodslee location will continue with an anticipated completion date of December 2018.


Kailey HabermanKailey HabermanJuly 26, 2018
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6min4651

(Editors Note: JWC Environmental contributed this content.)

The legalization of recreational and medicinal marijuana has skyrocketed its production.  The multibillion-dollar industry averages 22 million pounds of marijuana annually and is expected to increase in the coming years. With the increase in marijuana production, it is inevitable that restrictions and government regulations will tighten.

Matrix NV is a large contributor to the growth of marijuana production in Southern Nevada and stands ready to be at the forefront of the recreational and medicinal marijuana industry.  With the mass production of recreational and medicinal marijuana, quality operations, leading experts, and tactical moves is not only a necessity, it is a requirement.

Facing New Challenges

Matrix NV,  along with many other marijuana producers, has faced challenges when it comes to marijuana disposal laws. The most recent laws require marijuana plant waste to be rendered unusable by grinding and incorporating it with other ground materials.  This mixture must be at least 50 percent non-marijuana waste by volume. Failure to meet marijuana waste disposal requirements can lead to monetary fines up to $15,000 and/or the cancellation of the business’s marijuana license.

For Matrix NV to achieve the 50 percent ground waste mixture, the company was drying the marijuana waste, cutting strips of cardboard and mixing the cardboard and marijuana waste into a woodchipper. This was the best option for Matrix NV, LLC at the time, but it was not the most efficient. Routine maintenance was performed, on multiple instances, on the woodchipper, which was not meant to shred rope-like material, rocks and sticks. As a result, it was constantly clogging.

Not only was the woodchipper constantly shut down due to clogs, it was producing hazardous dust and fumes. It was more of a mess than a solution. The noise of the woodchipper was extremely loud, and the gasoline used to power the woodchipper was costly.

Gregg Frye, Facilities Manager of Matrix NV began researching alternatives for cannabis destruction, which would allow his facility to function and flow more effectively.  

Frye said, “It’s difficult to get rid of all of this waste with a woodchipper and it was really starting to build up.  We started exploring options to get rid of the harvest waste while staying in compliance with the state-specific regulations. We started to look at machines that were geared more toward industrial waste and nothing seemed to be the right fit.”

Upgrading the Woodchipper

That is when Frye found JWC Environmental, a company that manufactures grinders specifically for marijuana waste destruction.  The part that excited Frye the most was this grinder could function in wet or dry applications, meaning Matrix NV, LLC wouldn’t need to dry the waste before grinding.  The shredders would grind compostables and non-compostables without interrupts including entire plants, root balls, soil, plastic pots and other debris. The grinder would save labor and energy costs and would grind down marijuana waste and non-marijuana waste.

The 3-SHRED-H-1200 was a better alternative to wood chippers due to the grinders operations. The new grinder was quiet due to its powerful electric motors, could be used inside or outside as it transmits zero exhaust fumes, and it shreds the toughest dry or wet waste more efficiently. The shredders are more powerful than a wood chipper, which makes marijuana waste disposal completely hassle-free.

75% Labor Savings for Waste Disposal

The grinder worked with Matrix NV’s budget and reduced the one- to two-day process to a three- to four-hour process, a 75% labor reduction for waste disposal.  The grinder now shreds the wet or dry waste and operates without interruptions.

No matter what you mix the marijuana with, to make it unusable – soil, plastic pots, netting, food waste – JWC Environmental’s 3-SHRED can handle it.

Frye says, “We previously couldn’t process the waste like we can now – it is efficient, clean and hassle-free.”

 


StaffStaffJuly 20, 2018
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6min6230

Part 3 of 8 for 2018 Cannabis Trends: Increased demand domestically and internationally promote advancements in agricultural technology.

Agricultural technology in the cannabis industry is undergoing some big big changes and, in 2018, expect those changes to continue to accelerate towards automated, wireless, and efficient. The biggest catalyst for change is the Canadian cannabis market. Cannabis companies across the nation are signing supply agreements with Canadian provinces, and in order to meet those demands they are building massive production facilities.

For example, several months ago the cannabis giant Canopy Growth Corp. recently signed a supply agreement with Prince Edward Island to supply the province with 1 million grams of cannabis annually. Canopy has also signed similar agreements with other Canadian provinces.

To keep up with this demand, Canopy is currently in the process of constructing two massive production facilities; one that will total 1.3 million square feet of growing space and the other totaling to about 1.7 million square feet. Once you figure in Canopy’s other production facilities, the company is expected to have over 5 million square feet of growing space; which is astonishing.

In order to manage all of the space, cannabis companies are looking for ways to improve efficiency and automation. Take Gavita for example. Gavita is a lighting and hydroponics company that recently became popular with cannabis growers ever since it was purchased by Scotts Miracle-Gro. Gavita’s most popular product used to be the 1000W DE HPS system but, as grower’s search for better efficiency, the 750W fixture has started to outsell it.

Expect the cannabis industry in 2018 to start moving away from traditional HPS lighting solutions in favor of both LED and Ceramic Metal Halide (CMH) Lighting.

LED lights have been on the market for years now, but it’s only been recently that the price of LEDs have become competitive. The big advantage of LEDs comes from the fact that they require less energy, emit less heat, and can manipulate the light spectrum to maximize growth. Some also claim that LEDs can help deter pests and bacteria growth, but there’s been little scientific research to confirm these claims.

The breakout star of AgTech this year, however, is going to be CMH lighting. Because of their unique properties, CMH lights are more efficient than HPS lights (350W per lamp vs. 1000W), are cheaper than LEDs, and have on average a Color Rendering Index (CRI) score of 90 out of 100. HPS lights only have a CRI score of between 20-30 and metal halide lights have a CRI range of 60-65.

In terms of automation, cannabis cultivators are looking to reduce as many simple tasks in the cultivation process as possible. Using platforms like Grownetics, cannabis cultivators can track their grows, automate lighting, and utilize big data to understand what works and what doesn’t.

Other companies are taking automation to a whole new level. For example, a startup in Boston called Bloom Automation is currently developing a robot that is capable of trimming cannabis plants. Although the robot is too expensive right now to employ on a massive scale, expect Bloom and other cannabis companies to start seeking similar solutions in both the short and long term.

For the short and long term, expect the world of cannabis agtech to bend towards automation and cheaper, less energy-intensive, lighting solutions. One company already moving in this direction is VividGro. Recently the company launched its first lightweight sustainable light fixture, GroBar, as well as announced the acquisition of home cannabis grow-app WeGrow; which the company hopes to use its technology to help provide more streamlined solutions to cannabis cultivators.

You can download the 2018 Cannabis Trend Report for free by clicking here.


StaffStaffJune 11, 2018
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3min7090

Aurora Cannabis Inc. (ACBFF)  announced that it signed a cannabis flower and trim supply agreement with Agrima Botanicals Corp. a wholly-owned subsidiary of Ascent Industries Corp. Agrima is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”).

According to a company statement, Agrima will supply Aurora with up to 20,000 kg of dried cannabis flower and up to 6,000 kg of cannabis trim per year from its Canadian cultivation facilities. The deal can last up to five years and is subject to a 12,000 kg per year minimum. Currently, Cannabis Benchmarks lists the spot price of wholesale cannabis at $1,237 per pound. At 2.2 pounds per kilogram, this gives the deal an approximate potential value of $54 million.

“The agreement with Ascent brings further differentiation to Aurora’s growing portfolio of products,” said Terry Booth, CEO. “Expanding product choice to our various audiences through quality operators such as Agrima positions us well to accelerate growth. Furthermore, the relationship provides an opportunity to potentially source additional, higher-margin derivative products down the line.”

Philip Campbell, CEO, and Director of Ascent added, “We are delighted to be selected as a supplier to Aurora, a leader in the global cannabis sector. Agrima is committed to providing high-quality cannabis to both consumers and strategic partners, which this new agreement is a testament to. We believe this represents the beginning of a strong strategic relationship with Aurora, one which will benefit both companies for years to come.”

Agrima’s dried cannabis flower and trim will come from its facilities in Pitt Meadows, British Columbia. Once operational, the 600,000 square foot, automated cultivation facility will have a total cultivation capacity of approximately 60,000 kg of cut flower per year. Agrima anticipates receiving Health Canada approval towards the end of calendar 2018 and anticipates shipping its first products in Q1 2019. Agrima’s parent company Ascent offers a product suite of more than 40 unique products under eight consumer-focused brands, including gel capsules, oils, vaporizer pens, pre-rolled joints, various edibles and raw flower.


William SumnerWilliam SumnerJune 6, 2018
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5min7242

Will the nationwide legalization of cannabis in the United States lead to falling cannabis prices? According to a recent report published by the financial services company Stifel Financial Corp., the answer is yes. Published on May 30, 2018, the report details various market pressures and predictions regarding how the legal cannabis market will over the next several years.

According to the report, there is a strong possibility for price compression in the cannabis market, particularly dried cannabis, for several reasons. The first reason is that the highly attractive economics of cannabis will lead to an influx of actors hoping to cash in on the industry, which will lead to oversupply; citing Canada as an example.

Set to legalize adult sales of cannabis this summer, Canada is set to face an oversupply in the coming years. Another report, issued by BMO Capital Markets, found that although the Canadian cannabis market only needs about 11 million square feet of grow space to support demand, the top three growers are already on their way to having approximately 8 million square feet themselves.

When you figure in all of the other cannabis cultivators in Canada, it is easy to see how the market could become saturated. Likewise, permissive licensing structures in the United States has led to an abundance of cannabis cultivators. The most significant barrier to entry as a cultivator is capital; and with deep-pocketed investors flooding the market, capital is readily available to those that seek it.

Additionally, lower prices will emerge as a necessity to encourage users to abandon the black market in favor of the legal cannabis market. Daily cannabis users, which are predicted to account for the majority of national cannabis sales, are sensitive to price. According to an analysis by the Canadian Parliamentary Budget Office, only 61% of daily users would be willing to pay a 20% premium for legal cannabis products compared to the illicit market.

For cannabis operators, this means having to make a choice between maximizing profitability or volume. Profit maximization would most likely occur through the creation of value-added cannabis products; such as extracts and edibles. Using Colorado, Washington, and Oregon as a model; the Stifel report predicts that the national market would initially favor volume over profitability.

Once again drawing from Colorado, the report predicts that a national cannabis industry would most likely see cannabis sell for a wholesale price of $2.00 per gram and a retail price for $3.50 per gram for medicinal and $5.50 for recreational. Dried cannabis would be hit the hardest, while value-added cannabis products would retain a slightly higher price. Currently, the Cannabis Wholesale Benchmarks has cannabis priced at $1,247 per pound for the spot index in June. Cannabis calculates 448 grams per pound putting the current price at $2.78 and so its forecasted drop would be roughly 28% from today’s prices.

In the BMO report the wholesale price of cannabis, at least in Canada, is predicted to be much higher. Wholesale prices for dried cannabis are predicted to hover around C$4.00, while oil/gel capsules would go for C$6.00 per gram, and value-added formats would sell for approximately C$15.00 per gram.

With regards to cannabis taxation, the Stifel report favors the Canadian tax model, which includes a 10% ad valorem tax with a C$1.00 minimum and the ability for provinces and localities to impose their own taxes. Using a similar 10% ad valorem tax, along with a 10% tax imposed by the states, and a 5% local tax; it is estimated that the United States could generate up to approximately $12 billion in cannabis taxes annually.


StaffStaffApril 9, 2018
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3min14290

Cannabis Wheaton Income Corp. (CWBTF) acquired Canadian private cannabis company Robinson’s Cannabis Incorporated in an all-stock deal. Cannabis Wheaton will acquire all of Robinson’s issued and outstanding shares.

Robinson’s is currently building a 27,700 square foot purpose-built facility for cannabis cultivation in Kentville, Nova Scotia. Robinson’s doesn’t have a license at this time but has completed the review process on paper and is confirming its readiness stage.

According to the company statement, Robinson shareholders will receive 5,369,126 common shares upon closing of the acquisition, 2,013,421 common shares issued and held in escrow to be released to Robinson’s shareholders upon Robinson’s receiving a cultivation license under the ACMPR and 2,013,421 common shares issued and held in escrow to be released to the Robinson’s shareholders when the company receives a sales authorization under the ACMPR.

Cannabis Wheaton seems to be focused on expanding its cultivation portfolio. The company also recently said it had entered into a joint venture with Peter Quiring, one of the largest greenhouse builders and operators in Canada, to build a brand new cannabis greenhouse facility in Leamington, Ontario. The joint venture will operate through a newly formed subsidiary dubbed GreenhouseCo. Quiring will act as Chief Executive Officer of GreenhouseCo.

Cannabis Wheaton Acquisitions

Cannabis Wheaton recently acquired DoseCann in an all-stock deal as well. Dosecann is a late-stage “Licensed Dealer” applicant pursuant to the Narcotic Control Regulations with a purpose-built 42,000 square foot facility located in Charlottetown, Prince Edward Island.

Last week, the company announced it had acquired all of the outstanding securities of Dosecann by way of a “three-cornered amalgamation.” Cannabis Wheaton will pay the holders of the Dosecann Securities an aggregate of up to $38,000,000, payable in common shares of Cannabis Wheaton subject to the satisfaction of certain post-closing time and performance-based milestones. As part of the acquisition, all outstanding convertible securities of Dosecann will either be converted into Dosecann common shares and exchanged for consideration shares on the closing of the acquisition.

Stock Performance

Cannabis Wheaton stock was lately trading at $1.22 on the OTC Markets, down from its 52-week high of $2.70. The Toronto Exchange stock was last trading at C$1.55, a drop for its 52-week of C$2.97.



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