It’s time for your Daily Hit of cannabis financial news for October 18, 2021.
On The Site
Innovative Industrial Properties, Inc. (IIP)(NYSE: IIPR) has purchased a 201,000 square foot industrial property in Desert Hot Springs, California from Gold Flora, LLC for $51 million. Gold Flora will then lease the building and is expected to complete additional improvements for the property, for which Innovative Industrial has agreed to provide reimbursement of up to $9.0 million. Assuming full reimbursement for the improvements, IIP said its total investment in the property is expected to be $60.0 million.
Two leading cannabis companies have made major changes in the C-suite on Monday morning. The biggest move came from HEXO Corp. (TSX: HEXO)(NASDAQ: HEXO) which announced that its CEO and Co-Founder Sebastien St-Louis was leaving immediately and that the company was engaging in a structural reorganization. In addition to the CEO, HEXO said that its Chief Operating Officer, Donald Courtney was also out. The Special Committee of the Board for Succession said it was in advanced discussions with a preferred CEO candidate and expected to make an announcement soon. Courtney will remain as COO until a suitable replacement is named. Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) announced the appointment of Edward (“Ed”) Kremer as its new Chief Financial Officer.
In Other News
Xebra Brands, is now trading on the Canadian Securities Exchange (CSE). Xebra is well-positioned in Mexico within the USMCA Free Trade Zone (formerly NAFTA). Xebra is 1 of 5 companies whereby two will be selected by the government of the Netherlands to participate in cultivation trials, to supply all medicinal cannabis sold through Dutch pharmacies, under guaranteed government contracts. Xebra has developed approximately 40 cannabis-infused formulations and six distinct beverage brands, each protected by trademark IP.
Auxly Cannabis Group Inc. (TSX – XLY) announced that the company has moved to the #6 LP position in Canada for total cannabis sales as of the end of Q3 2021. After the successful launch of new product offerings during the third quarter of 2021, such as the introduction of the Back Forty 40s pre-rolls and differentiated dried flower offerings, Auxly secured 5.7% share of the total cannabis market in Q3 2021, up from 4.9% in Q2 2021, ending the quarter with 6.4% share of the market in September. In addition to the overall growth and expanded presence in the dried flower segment, Auxly also continues to hold the #1 LP position in Canada for Cannabis 2.0 product sales with 15.6% market share in Q3 2021. Powered by a 24.7% share of the vapor market – the largest of any Canadian LP by a significant margin – the Company’s organic growth in each of the Cannabis 2.0 categories it participates in is a testament to the quality and efficacy of its product suite that Canadian consumers have come to rely on.