The Daily Hit is a recap of the top cannabis business stories for June 21, 2022.
ON THE SITE
Juva Life Gets $11 Million in Pelorus Equity Deal
Privately owned Pelorus Equity Group has closed an $11.8 million financing with Juva Life Inc. (OTC: JUVAF), a life science company with pharmaceutical research and development and consumer-facing operations in cannabis production and distribution. Pelorus said the primary purpose of the financing was to finance the exercise of the tenant’s purchase option on its recently completed Stockton cultivation facility, as well as provide working capital and R&D funding. Read more here.
Prices Falling for Cannabis Companies
Once upon a time, owning a cannabis company seemed like a sure bet. Even if you couldn’t make the business work, there was always an option to sell it. So many people have been desperate to get into the cannabis industry that they were willing to pay just about any price. In other words premium prices regardless of whether the business warranted it or not. Now as the bear market in stocks seems to have some staying power and competition in some cannabis markets is heating up, prices for these businesses is dropping. Read more here.
High Times Sells LGBTQ Titles
High Times has sold its LGBTQ publications to Equal Entertainment for an undisclosed amount. The publications include Out.com/ Magazine, Advocate.com/ Magazine, Out Traveler Magazine, Plus Magazine, and Pride.com and given a new name for the company Equal Pride. According to the press release, “The acquisition returns the company to LBGTQ+ majority ownership and creates the largest LGBTQ+ – owned media, digital, TV, and entertainment company in the country with the majority of Equal Pride employees also identifying as LGBTQ+, women, and/or people of color.” Read more here.
The Bulls Are Running in Psychedelic Stocks
The stock market has been tough over the last month, as has most of the U.S. economy. The Federal Reserve raised interest rates by 0.75 percent on Wednesday, June 15, and that reduces the amount of money in the economy. Besides mortgages, rising interest rates impact the stock and bond markets, credit cards, personal loans, student loans, auto loans, and business loans according to Forbes. It’s the third hike this year and the largest since 1994. The move is aimed at countering the fastest pace of inflation in over 40 years. Another rate hike could come in July, according to Fed Chairman Jerome Powell. Read more here.
IN OTHER NEWS
Cronos Group Inc., Ginko Bioworks
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), a global cannabinoid company, and Ginkgo Bioworks (NYSE: DNA), a horizontal platform for cell programming, today announced the achievement of the third target productivity milestone in their partnership to produce eight cultured cannabinoids. Using Ginkgo’s platform for organism design and development, Cronos has successfully achieved the productivity target for tetrahydrocannabivarin (THCV), a cannabinoid hypothesized to reduce the appetite-enhancing property of THC. Access to additional rare cannabinoids will support Cronos’ innovation pipeline and commercialization strategy. Read more here.
BioLumic Inc. today announced the closing of a $13.5-million Series B funding round that will be used to accelerate commercial growth for its cutting-edge, patented agricultural technology that harnesses the power of ultraviolet light to improve plant productivity. The funding round is led by OurCrowd and is joined by Finistere Ventures, Icehouse Ventures, Rabo Ventures, Entourage Effect Capital, Arcview Ventures Seed Fund, Flatiron Venture Partners, RIV Capital, Virtu Capital, Bravos Capital, Privthi, NZ Booster Fund, Norwind Capital, MIG Nominee No 1 Limited, Aspire NZ Seed Fund and others. Read more here.
Rubicon Organics Inc.
Pierre Lassonde, of 45 Hazelton Ave, Toronto, Ontario, M5R 2E3, today announced that on June 20, 2022, Mr. Lassonde sold common shares of Rubicon Organics Inc., a company with a head office at 505-744 West Hastings Street, Vancouver, BC, V6C 1A5, in an amount of 1,000,000 Common Shares. The Common Shares were sold to the Chair of the Board of Directors of Rubicon, Julie Lassonde, and occurred through the facilities of the TSX Venture Exchange at a price of C$0.77 per Common Share, for aggregate consideration of C$770,000. Read more here.
Body and Mind Inc.
Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ), a multi-state U.S. cannabis operator, reported its financial results for the third fiscal quarter ended April 30, 2022. Read more here.
In related news: Body and Mind Inc., a multi-state U.S. cannabis operator, is pleased to provide an update on the first amendment to the Seaside dispensary purchase agreement. The company, through its wholly owned subsidiary, DEP Nevada, Inc., executed definitive agreements to purchase the Reef dispensary in Seaside California on November 30, 2021 and has been operating the dispensary since December 1st, 2021. Read more here.
CEA Industries Inc., Greene Brothers Farm
CEA Industries Inc. (NASDAQ: CEAD, CEADW) subsidiary, Surna Cultivation Technologies LLC, a leader in controlled environment agriculture (CEA) systems engineering and technologies, today announced it has entered into a letter of intent to provide products and mechanical engineering services over five phases with Greene Brothers Farm, Inc., a family owned and operated farm that is developing a 26-acre site exclusively for indoor cannabis cultivation. CEA Industries anticipates contract revenues of approximately $10 million over an estimated two to three-year period. The initial contract, valued at $1.2 million, is for the first phase of products and services and is planned to be completed by early Q4 2022. Read more here.
Intercure Ltd., Cookies
Intercure Ltd. (NASDAQ: INCR) (TSX: INCR.U) (TASE: INCR) announced today the opening of the first flagship Cookies store in Austria, located in the Neubau district of Vienna. The flagship location offers Cookies’ unique CBD menu, available for the first time in Europe, as well as clothing and life-style products. In the future, as regulations are evolving, pharmaceutical grade medical cannabis will be available for Austrian patients, including Cookies EU-GMP THC products. Read more here.
Captor Capital Corp.
Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMVA; STUTTGART: NMVA), announced today that the board of directors has initiated a process to identify, examine and pursue strategic alternatives to the company’s current business. Brady Cobb, a cannabis industry veteran, has been named as the interim chairman of the board of directors, effective July 1, 2022, to oversee the leadership of the company and the Strategic Review process with an eye towards maximizing operational efficiencies and charting the most accretive path forward to maximize shareholder value. Read more here.
AIkido Pharma Inc.
Shalom Auerbach, a significant stockholder of AIkido Pharma Inc. (NASDAQ: AIKI) owning approximately 3.8% of its common stock, today issued the following letter to stockholders of AIkido Pharma Inc. Read more here.