There wasn’t a ton of financial news this week, but what came through was BIG.
First, the FDA approved GW Pharmaceuticals’s (GWPH) drug Epidiolex. This cannabinoid drug is used to treat rare forms of epilepsy and it went through all the FDA study trials like any other prescription medicine. In the FDA’s statement, the agency reminded everyone that cannabis is still considered a schedule one drug, but that it would send a recommendation to the DEA about that classification.
GW Pharma had another take on that issue. They said that rescheduling would occur within 90 days. This DEA and administration have not been very receptive to medical marijuana, so it remains to be seen whether they would actually follow the FDA recommendation.
Also, Oklahoma became the 30th state to legalize medical marijuana. Despite a well-funded opposition, the voters prevailed.
Canopy Growth Corporation (CGC) reported that its fourth-quarter revenue rose 55% to C$22.8 million versus last year’s C$14.7 million for the same time period. Still, the company recorded a net loss of C$61.5 million or C$0.31 per share, which was dramatically higher than last year’s net loss of $12.0 million, or $0.08 per share for the same time period. Revenues jumped 95% in the fiscal year ending March 31, 2018, to C$77.9 million over revenue of C$39.9 million for last year.
Aurora Cannabis Inc. (ACBFF) has agreed to a new C$200 million debt facility, with a potential increase to C$250 million, with the Bank of Montreal. The debt will consist of a $150 million term loan and a $50 million revolving credit facility both of which will mature in 2021.
We have a few acquisitions for the week.
EVIO Labs is acquiring MRX Labs for an undisclosed amount. The deal will allow MRX Extractors to focus on extraction while letting the lab side of the business combine with EVIO to focus on lab work.
Harvest One Cannabis Inc. (HRVOF) has signed a binding Share Sale Agreement with Australian-based MMJ PhytoTech Limited for the purchase of 100% of Israeli-based PhytoTech Therapeutics Ltd.
PotNetwork Holdings, Inc. (POTN) announces that it is in the process of filing an amendment for a name change from PotNetwork Holdings, Inc. to “BioTech Hemp, Inc.”.