Aphria Archives - Page 4 of 5 - Green Market Report

Debra BorchardtJuly 17, 2018
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Aphria Inc. (APHQF) is acquiring Scythian Biosciences Corp. (SCCYF) Latin American and Caribbean assets in a deal valued at $193 million. The acquisition will allow Aphria to quickly expand into Columbia, Argentina, and Jamaica. It will also give Aphria first offer and refusal for Brazil.

“Aphria is proud with this initiative to create a true leader in medical cannabis across LATAM and extend our leadership in the global industry,” said Vic Neufeld, Chief Executive Officer at Aphria. “We have spent a considerable amount of time and resources evaluating opportunities in Latin America and the Caribbean and we are confident in the long-term strategic opportunity and the value it will bring to our shareholders. The Transaction, once completed, will firmly place Aphria at the center of the medical cannabis industry in the region, and will provide the strong foundation, relationships, and infrastructure to capture significant future growth as more LATAM and Caribbean markets evolve.”

Terms

The statement from Scythian read, “Aphria will issue C$193 million in shares to Scythian and assume USD $1 million in aggregate liabilities of the Target Corporations owing to Scythian resulting in Scythian having well over $ 200 million in cash and marketable securities on hand. The substantial liquidity provided by the transaction will enable additional potential transactions that underpin Scythian’s strategic transformation towards enhancing its global cannabis foundation.”

The Aphria statement read, “Aphria will be assuming $1 million in existing debt, with the remainder of the transaction consideration in the form of common shares of Aphria at a deemed share price of $12.31, being the volume weighted average price of the Aphria shares as traded on the facilities of the TSX for the 20 trading days immediately prior to the date of the Agreement. Aphria expects to issue to Scythian 15,678,310 Aphria shares in connection with the Transaction, representing approximately 6.3% of the currently issued and outstanding shares of Aphria, calculated on a non-diluted basis.”

The transaction will have Aphria acquire 100% of the outstanding shares of LATAM Holdings, which is the wholly-owned subsidiary of Scythian. The acquisition will include the following as per the company statement:

Columbian Asset

Colcanna S.A.S. will be the first company in the Coffee Zone of Colombia with cultivation and manufacturing licenses for the production of medicinal extracts of cannabis, a research license and a license for the production and extraction of cannabis, including cannabis oil, for domestic use and for export. It is in the advanced licensing stages for a THC license.

Argentina Asset

ABP, S.A. is an established and successful pharmaceutical import and distribution company that holds a series of licenses, including for the import of CBD oil, notably the first company in Argentina to have received this license. The Argentinean company operates a pharmaceutical distribution warehouse and retail pharmacy and distributes to an extensive network of pharmacies, distributors, government clinics and hospitals throughout Argentina.  ABP also holds agreements with the Top 20 health insurance companies, a strategic advantage in reaching patients accessing Argentina’s free public healthcare system.

Jamaica Asset

Marigold Projects Jamaica Limited has been granted several key licenses by the Jamaican Cannabis Licensing Authority, including a Tier 3 license to cultivate more than five acres of land with cannabis for medical, scientific and therapeutic purposes. This license is the highest level of license available in Jamaica, and currently, only one other company has been approved for a Tier 3 license and a conditional Tier 2 license to process cannabis for medical, scientific and therapeutic purposes, including the manufacturing of cannabis-based products, in a space of over 200 square meters.

“Scythian’s early stage strategic investments in some of the world’s leading markets outside of Canada have fast-tracked our positioning and reputation as a global cannabis leader,” said Scythian CEO Rob Reid. “It, therefore, feels fitting to exit our Latin American and Caribbean assets to one of the world’s leading operators. This timely strategic move allows Aphria to leverage Scythian’s first-mover progress in the region while expanding on their own global reach and scope.”


Debra BorchardtJuly 5, 2018
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Several cannabis companies announced signing agreements with the Alberta Gaming, Liquor & Cannabis Commission (AGLC) to supply recreational cannabis to Alberta’s private cannabis retailers and the AGLC’s online cannabis store, www.albertacannabis.org.

Alberta is Canada’s fourth most populated province and is mostly known as being the home to tourist destinations like Banff Park and Lake Louise. Its capital is Edmonton and its largest city is Calgary. The province is known as being a hub for the country’s crude oil industry.

“The AGLC is committed to providing the Alberta market with access to federally regulated cannabis in a safe and fiscally-responsible manner while helping to shrink the illicit market,” says Niaz Nejad, Chief Operating Officer, and Vice President, Gaming & Cannabis, AGLC. “We are confident that those we are working with will help us fulfill our responsibilities to Albertans.”

 

Aurora Cannabis Inc.

Edmonton-based Aurora Cannabis Inc. (ACBFF) said that it will initially allocate up to 25,000 kg of product for the first 6 months of sales to this market. “The AGLC and Alberta government have been steadfast in their commitment to developing the best possible framework for a well-functioning legal adult consumer use market that prevents cannabis from ending up in the hands of youth,” said Terry Booth, CEO. “The province’s common-sense approach and this agreement are the result of many months of discussions with the AGLC towards achieving these goals. Consequently, adult consumers in Alberta will have access to a broad selection of high-quality cannabis products from October 17, 2018, onward.”

He went on to say, “Aurora already is the pre-eminent provider of medical cannabis in Alberta, with a dominant market share, serving more Alberta patients than any other licensed producer. Aurora also employs more Albertans than all other licensed producers combined. We have a brand recognized for quality, which we intend to leverage to capture a significant share of the adult consumer market in Alberta and Canada, both organically and through our strategic retail partnerships. We look forward to working with the AGLC and becoming a key part of the province’s cannabis infrastructure to ensure Alberta’s successful entry into the burgeoning consumer cannabis market.”

Aphria Inc.

Aphria Inc. (APHQF) said that the AGLC placed an opening order of 870 kg to be supplied from across the full portfolio of Aphria’s adult-use brands and products, including dried flower, pre-rolls and cannabis oils. Once additional product categories, such as vapes and edibles, are authorized under the Cannabis Act, it is anticipated that they will also be made for sale throughout the province, further enhancing the company’s assortment of offerings in this market.

“We are thrilled to be working with such a strong partner that is equally committed to promoting responsible cannabis use,” said Jakob Ripshtein, Chief Commercial Officer at Aphria. “This important agreement enables Aphria’s adult-use brands to have a strong presence in Alberta’s dynamic retail landscape. Through our partnership with the AGLC, we look forward to providing access to our thoughtfully crafted portfolio of brands that were designed to meet the diverse needs of Alberta consumers.”

Organigram Holdings Inc.

Organigram Holdings Inc.  (OGRMF) also announced that it signed a supply agreement with the AGLC adding to the other three provinces that company has made deals with. Organigram recently unveiled its preliminary branding strategy for the adult recreational market in Canada featuring the brands The Edison Cannabis Company, ANKR Organics and Trailer Park Buds.

“We are pleased to finalize this agreement with AGLC,” says Greg Engel, Organigram’s Chief Executive Officer. “We applaud the province’s efforts to secure a high-quality, dependable inventory for their recreational cannabis market and are proud to have been selected as an AGLC partner.”

Emblem Corp.

Emblem Corp. (EMMBF) also signed an agreement to supply the province with high-quality cannabis products. Products will be available under Emblem’s new adult-use focused brand, which is expected to be announced shortly.

“Emblem is excited to have been selected to bring our adult-use products to Alberta’s recreational cannabis market upon legalization on October 17, 2018. We are looking forward to working together with the AGLC to build the foundation for a safe and responsible marketplace for consumers,” said Maria Guest, Chief Marketing Officer with Emblem. “With our soon to be announced adult-use cannabis brand, Emblem is ready to meet the needs of Albertans seeking a trusted source of cannabis products, offering a curated range of dried flower and cannabis oils.”

WeedMD Inc.

WeedMD (WDDMF) said it will supply the Alberta market with cannabis products starting the first day of legal sales. The agreement represents a key milestone in WeedMD’s strategic plan to develop a national distribution platform for the company’s medical and adult-use products, building upon the recent announcement of WeedMD’s supply agreement with Shoppers Drug Mart.

“We’re proud that the AGLC has selected WeedMD as a cannabis supplier to join its network as it looks to establish a cannabis framework for its adult-use markets,” said Keith Merker, Chief Financial Officer of WeedMD. “This represents a strategic partnership as we look to expand our product reach across the country to support Canada’s legal adult-use market. Alberta’s high standards align with the highly-regarded quality of our cultivation standards, product portfolio, and commercial practices as we look to meet the expected demand of this new market.”

The Supreme Cannabis Company, Inc.

The Supreme Cannabis Company, Inc. (SPRWF) said that its wholly-owned subsidiary, 7ACRES, had entered into a supply agreement with the AGLC to supply recreational cannabis upon legalization. Supreme said that the AGLC has communicated that they plan to evaluate product demand of the recreational market in order to inform their supply needs for the remainder of the year.

“We are very excited to serve as a trusted partner to the AGLC and Albertans.  Alberta offers a unique opportunity for quality-driven brands as it is one of the most sophisticated private retail markets in the country and its approach to retailing cannabis recognizes that ensuring quality and offering a selection of products are critical steps towards impacting the illicit market,” said John Fowler, CEO of Supreme Cannabis. “Supreme Cannabis anticipates broad provincial acceptance that 7ACRES’ lineup is a premium brand, and as such will be ranked as a top-tier product in their stores.”


Jack SmithJune 7, 2018
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Aphria (APHQF) announced that it has entered into an agreement with Clarus Securities to raise $225 million on a “bought deal” basis, as it looks to expand both its production facilities around the world and its state-of-the-art Extraction Centre of Excellence.

The announcement, made Wednesday, will see Aphrais sell 18.9 million shares at a price of C$11.85. The underwriters also have the option to buy an additional 2.8 million shares at the offering price, 30 days from when the offering closes, which is expected to close on or about June 28, 2018, the company said in a statement.

Aphria, which trades on the Toronto Stock Exchange under the ticker “APH.TO,” will also use the proceeds, which could total as much as C$258.7 million if the over-allotment is exercised, for “strategic acquisitions and investments and other industry related transactions, and for general corporate purposes.”

Shares of Aphria jumped more than 5 percent on Wednesday, closing at C$12.79.

The company could look to expand its business presence in Quebec or its hometown of Leamington, Ontario, which it describes as “the greenhouse capital of Canada.” Aphria describes itself as “one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis.”

Aphria makes and markets four different products, according to its website: cannabis capsules, oral solutions, concentrate syringes and THC & CBD vaporizers.

In the U.S., Aphria’s products are available in dispensaries through Liberty Health Sciences. Liberty has 4 dispensaries in Florida and is opening a fifth later this year.

The capital raise comes after some cooling off in the cannabis sector, particularly in Canada. Aphria stock was lately trading at C$12.79, down from its 52-week high of C$24.75 but above its year low of C$4.78.

Investors recently fretted that Canadian Prime Minister Justin Trudeau and his team hinted that recreational use could start in the fall, as opposed to July, as had been previously thought.

Coupled with a later-than-expected start to legalization and regulatory concerns in the U.S., where cannabis is still illegal on the federal level (though 29 states and the District of Columbia have legalized it on some level), a sharp correction was seen across the cannabis sector in the first quarter. The Green Market Report Cannabis Company Index fell 21.9 percent in the first quarter.


Debra BorchardtMay 29, 2018

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It’s time for your Daily Hit of cannabis news for May 29, 2018.

On The Site

MedMen Enterprises

MedMen Enterprises Inc. stock began trading today on the Canadian Securities Exchange under the ticker symbol “MMEN”. The stock opened at C$5.63 and closed down at C$4.95.

The listing is the result of a reverse takeover of a Candian public company by MedMen and as a result, the U.S.-based cannabis retailer will raise roughly C$143 million or $110 million by today’s exchange rates. This gives MedMen an enterprise valuation of C$2.14 billion or $1.65 billion.

BMO Capital Markets Initiates Coverage

BMO Capital Markets, a North American financial services provider, has initiated coverage on both Aphria Inc. (APHQF) and Canopy Growth (CGC) with a rating of Outperform.

According to the report released on May 28, 2018, both companies stand to benefit from a first mover advantage in initial recreational markets as many cannabis companies in Canada do not have the inventory or production capacity to meaningfully participate in the market while both Aphria and Canopy do.

Emblem Corp.

Emblem Corp. (EMMBF) reported that its revenues for the three months ended March 31, 2018, increased 41% to $1,277,000 in Q1 2018 from $903,000 in Q1 2017. Gross profits increased 304% to $182,000 compared to a gross loss of $89,000 for the same time period in the previous year. The profits were helped by a higher unrealized gain on changes in fair value of biological assets.

During the first quarter, revenues of dried cannabis flower purchased by registered medical patients and Licensed Producers amounted to $457,000 and $394,000, respectively. The average selling price of dried flower for medical patients was $8.59 per gram versus last year’s $8.41 per gram. Total dried flower sold to licensed producers sold at an average selling price of $5.55 per gram versus last year’s $4.02 per gram.

In Other News

Khiron life Sciences Corp.

Khiron life Sciences Corp. (TSXV: KHRN), a Canadian integrated medical cannabis company with its core operations in Colombia, announced that it is strategically positioned to enter the medical cannabis market in Mexico by acting as a key sponsor of the CannaMexico World Summit. The company will incorporate a Mexican subsidiary to submit license applications, subject to TSXV approval.

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) announced  that it has entered into an exclusive agreement with Stillwater Brands to license RIPPLE SC (Soluble Cannabinoids) ingredient technology, and other proprietary beverage and food technologies and formulations related to cannabinoid-infused consumer packaged goods including micro-dose and full-dose tea sticks within Canada and certain international jurisdictions outside of the USA.

Curaleaf New York

Curaleaf New York announced plans for a new medical cannabis dispensary in Forest Hills, New York. The dispensary, which is expected to open in early summer, will serve patients in Queens and surrounding boroughs suffering from chronic pain, Post-Traumatic Stress Disorder (PTSD), cancer and other conditions permitted under the New York State Department of Health’s medical marijuana program. The Curaleaf New York facility is only the second dispensary to be opened in Queens.


William SumnerMay 29, 2018
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BMO Capital Markets, a North American financial services provider, has initiated coverage on both Aphria Inc. (APHQF) and Canopy Growth (CGC) with a rating of Outperform.

According to the report released on May 28, 2018, both companies stand to benefit from a first mover advantage in initial recreational markets as many cannabis companies in Canada do not have the inventory or production capacity to meaningfully participate in the market while both Aphria and Canopy do.

In the long term, BMO believes that cannabis cultivation will become a commoditized activity and that oversupply will become an issue. Although a majority of cannabis brands hope to counter this through the development of brands or through the expectation that they will become a low-cost producer.

The Aphria Opinion

BMO expects that most cannabis firms will not be able to generate sustainable margins at scale, but they do believe that Aphria will be one of the few that can. The report points to the extensive commercial greenhouse cultivation experience held by the company’s management team and to the inherent infrastructure and greenhouse culture in Leamington, Ontario, where the company is based.

Aphria’s target price is $17 and is based on a projected enterprise value that is 17x BMO’s Base Case Fiscal 2020 EBITDA estimate; which in turn was based on the assumption that Aphria’s facility expansions would only be at 65% of its full production capacity by 2020.

The Canopy Growth Opinion

Canopy, on the other hand, is well positioned to become a global brand leader. In addition to the company’s first-mover advantage, the company also has a head start in the international market; establishing cultivation centers in hub regions like Denmark for the future export of medical cannabis to Germany and possibly the rest of Europe.

Canopy’s target price is $45 and is based on a projected enterprise value that is 20x BMO’s Base Case Fiscal 2020 EBITDA estimate. Like Aphria, this figure is based on the assumption that the company would only be at 65% of its full production capacity by 2020, even though both companies expect to reach 100% by that date.

MedMen Goes Public

In related news, MedMen Enterprises announced today that its stock would begin trading today on the Canadian Securities Exchange at 11 a.m. eastern time under the ticker symbol “MMEN”. The company will raise roughly C$143 million or $110 million from the listing, giving MedMen an enterprise valuation of C$2.14 billion or $1.65 billion.


William SumnerMay 17, 2018
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This is your Daily Hit of cannabis news for May 17, 2018:

On The Site

GW Pharmaceuticals

The biopharmaceutical company GW Pharmaceuticals (GWPH), along with its U.S. subsidiary Greenwich Biosciences, announced the publication of its Phase 3 study of cannabidiol oral solution in patients with Lennox-Gastaut syndrome (LGS) in The New England Journal of Medicine.

Cannabis Delivery Service Stemless Looks To Take On Eaze

Stemless is a Portland-based startup that gives cannabis consumers an easy way to buy from their local dispensaries without having to leave home. “We are an online platform that helps dispensaries connect with their customers, so their customers can order from them in a way that is convenient, fast and, most of all, legal,” says Stemless founder Koushi Sunder. The company is entering the Eaze marketplace at a time when Eaze is coming under fire for its approach towards consumers.

Bourbon Heir Says End of ‘Prohibition 2.0’ Will Lead To Cannabis Fortunes

Ben Kovler is bringing Green Thumb Industries or GTI public in Canada, according to Bloomberg due in large part to similarities seen between the liquor industry in the 1930s and cannabis today. Speaking with Bloomberg, Kovler said he intends to bring GTI public via a reverse merger with a publicly traded Canadian company. Kovler, whose family invested $5,000 in the distiller group that would eventually become Jim Beam bourbon, is also the shareholder of GTI.

In Other News

Organigram Holdings Inc.

Organigram Holdings Inc. (OGI) announced today that it has received a “Permit to Export Cannabis” from Health Canada, allowing the company to export medical cannabis to Cannatrek Medical PTY Ltd., a licensed medical cannabis company in Melbourne, Australia. “Today we are proud to announce our ability to commence international sales through the receipt of a Permit to Export Cannabis from Health Canada,” said Greg Engel, CEO of Organigram. “This is only the beginning. Last week we announced our intentions to invest in and sell to a German distributor. Today we announce our ability to sell into Australia. We continue to strive towards becoming a global leader in the medical cannabis trade.”

Cannabis Wheaton Income Corp.

Cannabis Wheaton Income Corp. (CBW) has announced that it has closed the acquisition of all of the outstanding securities of Dosecann Inc. for a price of $38 million, payable in common shares of Cannabis Wheaton. Dosecann is located in Charlottetown, Prince Edward Island and is currently in the process of completing a 42,000 square foot for the research, development, extraction, formulation, filling, and packaging of cannabis products. Pending regulatory approval, Dosecann will use its facility to make a variety of cannabis products for the medicinal market and, pending approval, the adult use market as well.

Aphria Inc.

Aphria Inc. (APH) announced that it has chosen Great North Distributors, Inc., a wholly-owned Canadian subsidiary of Southern Glazer’s Wine & Spirits, as its exclusive distributor for adult-use cannabis products throughout Canada. Under the agreement, Great North will create a dedicated sales team that will be responsible for selling Aprhia’s portfolio of cannabis products and its parent company, Southern Glazer’s will utilize its data analytics to provide data-driven support for Aphria. “We’re delighted to have Great North Distributors dedicated to our business. This deal enables us to fully execute on our adult-use strategy from day one, and we know that Great North Distributors has the right resources and expertise to allow us to capitalize on the opportunities in the industry on a national scale,” commented Aphria CEO Vic Neufeld.


StaffApril 23, 2018
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This is your Daily Hit of cannabis news for April 23, 2018:

On The Site:

Maricann & Broken Coast Add More Capacity

Aphria Inc. (APHQF) announced that its subsidiary, Broken Coast Cannabis received a license amendment from Health Canada that provides Broken Coast with an additional 18,000 square feet of production space as part of its Phase III expansion, bringing total production space to 44,000 square feet.

In addition to Broken Coast, Maricann Group Inc. (MRRCF) announced that it received all of the necessary approvals from Health Canada to commence cultivation in Phase One of the company’s new facility in Langton, Ontario, Canada. This is Maricann’s third license issued by Health Canada. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft.  build out, with a designed expected capacity of producing 95,000 kg (based on conservative estimates) of dry cannabis flower per year to support existing and future patient growth.

Is YouTube Blocking Spanish Cannabis Channels?

For many Spanish-speaking cannabis users, Marihuana Television is their go-to source for all things cannabis. Featuring how-to guides and up-to-date news, Marihuana Television looks like any other mainstream YouTube channel but with cannabis; which is why many were shocked to find that the channel had been deleted with no explanation.

In Other News:

Nutritional High International Inc.

Nutritional High International Inc. (SPLIF) announced that it signed an agreement to purchase California-based Pasa Verde, LLC. a leading cannabis extraction and toll processing facility in Sacramento, California. Pasa Verde operates a 17,600 sq ft extraction facility in Sacramento’s “Green Zone” and was the first operator in Sacramento to receive its Conditional Use Permit. Pasa Verde’s large-scale facility is located in a fully-serviced industrial area and has excellent space and infrastructure to house a significant extraction and marijuana-infused products operation – capable of production volumes suitable for the California market which is expected to reach US$6.5 billion in annual sales by 2020.

Emblem Corp. 

Emblem Corp. (EMMBF) announced that it purchased C$2.5 million of units of Fire & Flower Inc. at a price of C$0.80 per unit as part of a larger unit offering conducted by Fire & Flower. According to the company statement, each unit consists of one common share in the capital of Fire & Flower and one common share purchase warrant entitling the holder thereof to acquire one (1) additional Fire & Flower Share at a price of C$1.05 per share for a period of two (2) years, subject to adjustments in certain events.

General Cannabis Corp.

General Cannabis Corp. (CANN) announced that it completed the closing of a private placement transaction with various private parties, including existing and new investors in General Cannabis. The company issued $5.54 million of senior secured promissory notes and an aggregate of 4,432,000 warrants to purchase common stock at the closing.  The notes bear interest at 8.5% per annum and are secured by all of the Company’s assets.  The warrants have an exercise price of $2.35 per share.  The proceeds of this debt raise will be used primarily to fund the company’s expansion and for working capital.

ABCD Cannabis Data

ABCD, a data-driven media campaign outlet, has released new data which reveals the number of marijuana head and grow shops in 120 cities around the world. This research, which builds on the 2018 Cannabis Price Index released earlier this year, reveals which locations around the world are ready to embrace cannabis legalization.

  • With a total of 156, Los Angeles, USA has the most headshops.
  • Madrid, Spain has the largest amount of grow shops, with a total of 68.
  • Tokyo, Japan has the most expensive cannabis, at 32.66 USD per gram, while Quito, Ecuador has the least expensive marijuana, at 1.34 USD per gram.
  • Based on the average US marijuana tax rates currently implemented, New York City could generate the highest potential tax revenue by legalizing weed, with 156.40 million USD per year. New York City also has the highest consumption rate of cannabis, at 77.44 metric tons per year.

 


StaffApril 16, 2018
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This is your Daily Hit of cannabis news for April 16, 2018:

On The Site

Medicine Man Technologies 

Medicine Man Technologies (MDCL) announced today the preliminary financial resultsfor the quarter ending on March 31, 2018, and provided an update to shareholders on recent client activity. The company reported approximately $1.2 million in revenue for the quarter, a 122% increase over the same quarter last year and representing the fifth consecutive quarter of revenue growth. Expecting to reach the profit/loss breakeven point this quarter, the company has repaid all of its outstanding debt.

Aphria Inc.

Ontario-based Aphria Inc. (APHQF) reported that its revenues for the third quarter ending February 28 were C$10.2 million versus last year’ C$5.1 million for the same time period, an increase of 100%. Revenue increased 20% sequentially from C$8.5 million. Gross profits for the quarter were C$8.5 million over last year’s C$3.5 million. The net income for the quarter was C$12.9 million, a nice increase over last year’s C$4.9 million. The increase in net income relates to the strength of Aphria’s investment portfolio, including its realized gain on sale of its non-escrowed shares in Liberty Health Sciences, Ltd. in the quarter. 

 

MedReps

According to a March survey done by MedReps, 46% of pharmaceutical sales representatives reported that they expect medical marijuana legalization and stricter opioid laws to have a positive impact on their jobs.

MedReps, an online healthcare sales job site, conducted a survey of 500 sales professionals in medical and pharmaceutical sales, as well as non-medical and non-pharmaceutical sales.

 

In Other News

Veritas Pharma Inc. 

Veritas Pharma Inc.  (VRTHF) announced it entered into an agreement to acquire 50% of 3 Carbon Extractions Inc. The remaining 50% equity interest can be acquired by Veritas based upon a value to be decided by a qualified independent business valuator. The purchase price for which shall be paid in cash or in fully paid and non-assessable common shares of Veritas, or in a combination thereof, as may be determined by the Company in its discretion. The shareholders of 3 Carbon will receive aggregate consideration of $300,000 US and 1,500,000 common shares in the capital of the company.

Emblem Corp.

Emblem Corp. (EMMBF) appointed Maria Guest as Chief Marketing Officer to its executive team. The company also named Kim Horrill as Vice President of Medical Marketing and Tim Andrews as Vice President, Creative Director. The foregoing appointments remain subject to the approval of the TSX Venture Exchange. Prior to joining Emblem, Maria Guest spent 20 years building brands and developing new products and innovations within the highly regulated and competitive alcohol industry. Ms. Guest most recently led marketing efforts behind iconic brands like Corona, Stella Artois, Bud Light, Michelob Ultra, and Alexander Keith’s.

Aurora Cannabis Inc.

Aurora Cannabis  (ACBFF), CanniMed Therapeutics Inc. and CTT Pharmaceutical Holdings, Inc., announced that the three companies have entered into an agreement that provides Aurora, through its ownership of CanniMed, with joint exclusivity on the distribution in Canada of CTT’s novel, patented drug delivery technologies. This collaboration includes the licensing by CTT to CanniMed and Aurora of six patents related to cannabinoid delivery for pain management that will enable CanniMed and Aurora to exclusively develop and commercialize this unique, sub-lingual (beneath the tongue) wafer, drug delivery system in Canada.

Maricann Group Inc.

Maricann Group Inc. (MRRCF)  announced that it received an export permit from Health Canada for a shipment of dried cannabis flower to Germany. This is the first export permit that Maricann has received.


Debra BorchardtApril 16, 2018
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Ontario-based Aphria Inc. (APHQF) reported that its revenues for the third quarter ending February 28 were C$10.2 million versus last year’ C$5.1 million for the same time period, an increase of 100%. Revenue increased 20% sequentially from C$8.5 million. Gross profits for the quarter were C$8.5 million over last year’s C$3.5 million.

The net income for the quarter was C$12.9 million, a nice increase over last year’s C$4.9 million. The increase in net income relates to the strength of Aphria’s investment portfolio, including its realized gain on sale of its non-escrowed shares in Liberty Health Sciences, Ltd. in the quarter.

“We had another incredible quarter, with year-over-year revenue having more than doubled, cash costs back under $1, and our 10th consecutive quarter of positive adjusted EBITDA,” said Vic Neufeld, CEO of Aphria. “After the end of the quarter, we brought additional production capacity online with our Part III expansion at Aphria One and established a worldwide presence through our acquisition of Nuuvera. We continue to hold a strong cash position that will give us the flexibility to pursue attractive investment opportunities both domestically and around the world.”

The increase in revenue was attributed to continued growth in wholesale shipments and sales to existing patients. In addition to that, the company enjoyed sales from Broken Coast during February and continued acceleration of new patients and an increased average selling price of the product.

Product Sales

The company sold 1,428.1 kilograms of cannabis for the quarter versus 1,237.0 for the previous year in the same time period. The cash cost to produce the dried cannabis fell from last year’s C$1.45 per gram to C$0.96 per gram. The “all-in” cost of sales of dried cannabis also fell from C$2.13 to C$1.56.

Earnings

In the company’s statement, Aphria’s adjusted EBITDA for the quarter was C$2,940 compared to C$871 in the same quarter in the prior year, an increase of over 237%. It was the tenth consecutive quarter, the company reported positive adjusted EBITDA.

Looking Ahead

Aphria said that its focus will shift to inventory build for the adult-use pipeline in Canada, to ensure ample product availability on the first day of adult-use, and international opportunities to allocate supply to higher margin medical opportunities. The Aphria One – 700,000 square foot Part IV expansion project remains on-time, the first sale continues to be expected in January 2019. Aphria Diamond – 1,300,000 square foot retrofit project remains on-time, the first sale continues to be expected in January 2019. Broken Coast – Phase III expansion is complete and awaiting Health Canada. Phase IV expansion project modified to increase capacity but moves first sale expectations to Fall 2019.


Debra BorchardtMarch 21, 2018
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Canadian medical marijuana company Aphria Inc. (APHQF) announced that the shareholders of Nuuvera Inc. voted to approve a plan to allow Aphria to acquire all the shares not already owned. The original proposed plan was announced on January 29, 2018.

According to a statement, a total of 60,129,430 Nuuvera shares, representing approximately 67.15% of the outstanding Nuuvera shares, were represented in person or by proxy at the meeting. Of the votes cast with respect to the Arrangement, an aggregate of 60,073,288 Nuuvera shares were voted in favor of the Arrangement, representing approximately 99.90% of the votes cast on the resolution.  In addition, an aggregate of 47,193,288 Nuuvera shares, representing approximately 99.88% of the votes cast on the resolution excluding such shareholders as are required to be excluded pursuant to MI 61-101, were voted in favor of the arrangement.

Nuuvera is a Canadian cannabis company that is currently working with partners in Germany, Israel, and Italy , and is exploring opportunities in several other countries, to develop commercial production and global distribution of medical grade cannabis in legalized markets. The company also owns the subsidiaries, ARA – Avanti and Avalon Pharmaceutical Inc. Nuuvera holds a Dealer License (GMP) and is currently in the final stages of the Health Canada review process to become a Licensed Producer of medical marijuana under the ACMPR, and has recently received its “letter to build” approval.

Argentina

Aphria also announced that it has signed an exclusive supply agreement with an Argentinan based pharmaceutical import and distribution company, which is licensed to import, sell and distribute medical products and derivatives in Argentina. The importer is currently securing an import license for cannabis in Argentina. Financial terms and the name of the importer were not released.

“We are excited to enter the Argentinian market through this initial supply agreement,” said Vic Neufeld, CEO of Aphria. “We see tremendous potential for medical cannabis in several emerging markets in South America, including Argentina. As the leading low-cost supplier of high-quality medical cannabis, Aphria will continue to expand its global leadership through strategic investments, partnerships and exclusive agreements such as this one.”


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