CannaRoyalty Archives - Green Market Report

Debra BorchardtDebra BorchardtDecember 4, 2018
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5min2720

CannaRoyalty Corp. also known as Origin House (CSE: OH) (OTCQX: ORHOF) has signed a binding term sheet to acquire certain business assets of California-based cannabis cultivator, Cub City LLC  for total consideration of $7,025,000. The deal is expected to close in March 2019.

Origin House will be purchasing a state-of-the-art craft cultivation facility with an annual production capacity of up to 1,400 kg of an ultra-premium flower. At that price, it would imply a purchase price of $5 per gram of funded capacity.

“This Acquisition was a logical next step for Origin House, led by the needs of our brand partners as we execute on our brand support and acceleration strategy,” said Afzal Hasan, President and General Counsel of Origin House. “Access to bespoke third-party cultivation is critical for new flower brands that want an authentic brand promise from seed to consumption. The existing alternative for brands is to use undifferentiated and mass-produced biomass available on the market. ”

Cub City was co-founded by a team that included Drew and Karen Duval of FloraCal. The facility and team have produced flower for some of the top packaged flower brands in California, as well as a prominent pre-roll brand.

In addition to the premium product that Origin House sought, the facility is located in close proximity to FloraCal’s 62,000 sq. ft. facility. Origin House said that the additional 24,600 sq. ft. cultivation capacity will be focused on third-party cultivation.

The company also said that both current and potential brand partners have highlighted the desire for bespoke exotic cannabis cultivation. This acquisition further expands Origin House’s brand support and acceleration platform and will allow the company to close pipeline opportunities with promising brands in California

Hasan added, “We are excited to continue growing our infrastructure and team to unlock further opportunities for growth that we have been cultivating with brand partners in California.”

Terms Of The Deal

The company statement outlined the following terms of the deal:

Under current Cub City management, the facility is undergoing construction with an estimated completion date of March 31, 2019.  Upon the completion of construction, the facility will be composed of a two-story building with 11,000 sq. ft of cultivation space, and 7,400 sq. ft of distribution, processing and packaging space in addition to 6,200 sq. ft of office space, storage, and common area

Within 30 days, Origin House will provide a construction loan facility (the “Loan”) to Cub City in an amount of up to USD$1,700,000. Funds advanced under the Loan will bear simple interest at 12% per annum and mature two years from the date of the first advance.  The Loan proceeds will be used for construction and equipment for the Facility

The Loan will be secured by a first ranking security interest on all present and future assets of Cub City and guaranteed by each of the members of Cub City on certain conditions

Key Assets

  • Some of the key assets, among others, to be purchased in the Acquisition include:
    • Cub City’s 20-year lease of the 24,600 sq. ft Facility; and
    • A 5-year local permit to cultivate, process, package and distribute cannabis. On Closing, Origin House will also have access to two state licenses: (a) a cannabis Type 11 Distribution License; and (b) a Small Indoor Cultivation license that may be used for future operations.

Included In Purchase Price

    • Forgiveness of the principal and interest accrued under the Loan (the “Loan Balance”);
    • $3,525,000 less the Loan Balance, in immediately available funds on Closing Date;
    • $3,500,000 on the one-year anniversary of the Closing Date (“Holdback Disbursement Date”). Cub City will have the option to receive the second payment in cash, shares of Origin House, or a combination of both but not less than 50% in shares.


Debra BorchardtDebra BorchardtAugust 27, 2018
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4min4420

CannaRoyalty Corp.  (CNNRF) entered into a binding letter of intent with Tidal Royalty Corp. (TDRYF) to acquire the company’s equity stake and royalty entitlement in Alternative Medical Enterprises LLC or AltMed for C$8 million. CannaRoyalty will continue to have the right to license MÜV products in CaliforniaNevadaCanada and other select markets. CannaRoyalty said that the sale of AltMed represents a roughly 168% return on investment for its shareholders.

“The sale of our equity stake and royalty in AltMed advances our stated strategy of realizing value for shareholders on assets that are deemed non-core to our business,” said Marc Lustig, Chairman, and CEO of CannaRoyalty. “The substantial gains from our successful investment in AltMed will provide CannaRoyalty with capital to continue to expand its distribution and brand network in the California market while offering CannaRoyalty shareholders a significant return on investment.”

AltMed is a Florida-based licensed cannabis business operating in the state of Florida that exclusively manufactures and distributes a line of cannabis-infused products marketed under the MÜV™ brand. NuTrae, the company that actually makes the MüV products is a subsidiary of AltMed and launched the MüV product line in 2016 in Arizona.

Tidal Royalty is a Toronto-based company that aims to provide royalty financing to the U.S. regulated cannabis industry. The company will provide operators with the funding they need to grow their business. Tidal says that its operators will benefit from non‐dilutive capital while investors get top‐line access to a diversified portfolio of companies.  The company has raised approximately $40MM to date by way of private placements, which it intends to use primarily for royalty financings. The company’s board includes Hugo Alves (President of Auxly
Cannabis Group (XLY) and Lustig.

CannaRoyalty currently holds a 6.14% ownership position in AltMed and has a 3.5% royalty on global net sales of the following MüV products: Transdermal patches, metered dose inhalers, and patent-pending transdermal gels.

Lustig went on to say, “We were early to identify the long-term potential in AltMed and MüV as vital players in the North American cannabis value chain and are confident that the businesses will be valuable additions to Tidal Royalty’s diverse portfolio. As CannaRoyalty continues to grow and build a solid presence in California, we look forward to partnering with the experienced team at Tidal Royalty.”

Stock Performance

CannaRoyalty was lately trading at $3.92 on the OTC Markets. This is lower than it’s 52-week high of $4.58, but way above its year low of $1.51. The company recently reported record financial results for its second quarter with revenues of $3.5 million.

 


William SumnerWilliam SumnerAugust 23, 2018
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6min3210

It’s time for your Daily Hit of cannabis financial news for August 23, 2018.

On The Site

Canopy Growth Corporation

Canopy Growth Corporation (CGC) is spinning off its venture capital investment arm called Canopy Rivers Corporation. The company has set September 12, 2018, as the date for a shareholder meeting regarding the proposed combination of Canopy Rivers and AIM2 Ventures. It had been previously announced that Canopy Rivers had entered into an agreement with AIM2 resulting in a reverse take-over of AIM2 by Canopy Rivers. The transaction is expected to close during the week of September 17, 2018 subject to the approval by the TSX Venture Exchange. The new symbol will be RIV.

CannaRoyalty

Canadian-based CannaRoyalty (CNNRF) reported its second-quarter earnings for the period ending June 30, 2018, with revenues increasing 266% to C$3.5 million versus last year’s revenues of C$960,157. In addition to that, CannaRoyalty made huge strides by delivering net income of C$9.3 million for the quarter versus last year’s net loss of C$2 million. The net income per diluted share was $0.17 as compared to a net loss per diluted share of $0.05 for the same time period in 2017.

In Other News

Emblem Corp.

Emblem Corp. (EMC), announced that it had secured a working capital advance for Natura Naturals Holdings Inc. The advance will help support the completion of Phase 1 construction of a 662,000 licensed greenhouse operated by Natura that is undergoing phased conversion and retrofitting while both companies negotiate a definitive agreement for Emblem to acquire Natura. The advance is made up of a one-year convertible debenture for a sum total of of up to $2,000,000. The advance is convertible into Natura shares at $0.80 per share plus one full share purchase warrant exercisable at $1.05.

Khiron Life Sciences

Khiron Life Sciences (KHRN) announced that it has priced and sized its marketed offering of common shares at a price of $0.90 per share to raise a total of up to $11.25 million. The offering will be overseen by a syndicate of agents led by Canaccord Genuity Corp. and including GMP Securities L.P., Sprott Private Wealth LP, and Cormark Securities Inc. Additionally, the agents have been granted an over-allotment option by the company to offer and sell up to an additional 15% of the number of share sold in the offering. The company expects to file a final short form prospectus form, in respect to the offering, on or around September 6, 2018 and the offering is expected to close on or around September 13, 2018.

Emerald Health Therapeutics Inc.

Emerald Health Therapeutics (EMH) and Village Farms International Inc. (VFF) announced that their joint venture, Pure Sunfarms, has received from Health Canada its third amendment to its cultivation license for its Delta 3 greenhouse in Delta, BC. The amendment will allow Pure Sunfarms to expand its production capacity to approximately 420,000 square feet of the facility’s 1.1 million square feet. “We are thrilled with the rapid pace at which the Pure Sunfarms team continues to complete conversion of additional production area, as well as the rapid pace at which it has been able to secure amendments to its cultivation license to steadily expand production,” said Michael DeGiglio, CEO of Village Farms. “It’s a testament to the value of decades of large-scale operational experience combined with an unwavering approach to doing things the right way.”

Naturally Splendid

Naturally Splendid (NSPDF) reported second-quarter results for the period ending June 30, 2018, and recorded a net loss of $1,565,098 during the six months ended June 30, 2018, compared to a loss of $2,029,552 during the six months ended June 30, 2017.   The decrease in net loss was due to the sale of POS BPC Manufacturing Corp. which provided for a gain on sale of $1,535,096, offset by an increase in selling and distribution costs of $5,273 and Administrative expenses of $1,041,721 mainly due to the addition of the Prosnack business which were not included in the expenses in the comparative period, as the acquisition occurred on October 18, 2017.

Naturally Splendid recorded sales of $804,502 during the six months ended June 30, 2018, compared to $1,068,949 for the six months ended June 30, 2017.  This revenue decrease was mainly due to the collapse of sales of bulk hemp seed to South Korea where the Company had recorded $Nil bulk sales in the current quarter compared to $245,400 in the six months of 2017.


StaffStaffAugust 23, 2018
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4min12940

Canadian-based CannaRoyalty (CNNRF) reported its second-quarter earnings for the period ending June 30, 2018, with revenues increasing 266% to C$3.5 million versus last year’s revenues of C$960,157. In addition to that, CannaRoyalty made huge strides by delivering net income of C$9.3 million for the quarter versus last year’s net loss of C$2 million. The net income per diluted share was $0.17 as compared to a net loss per diluted share of $0.05 for the same time period in 2017.

“Q2 marked a turning point for CannaRoyalty and its shareholders as the team translated strategy and execution into record financial performance. The Company generated earnings per share of $0.18 primarily by delivering on its stated objective of rationalizing early passive investments. The Company also generated a record adjusted EBITDA result for a Canadian-listed cannabis company2,” said Marc Lustig , CEO of CannaRoyalty. “Q2 is the beginning of a multi-quarter parabolic step change in revenue, powered by sequential acquisitions and organic growth. CannaRoyalty generated a record $3.5 million in revenue this quarter, a 446% increase from Q1 and more than the Company generated in all of 2017.”

Gross margins increased 95% to C$820,935 over last year’s C$421,681 for the same time period. Operating expenses rose 129% to C$6.3 million versus last year’s C$2.7 million.

Since The Quarter Closed

Following the close of the second quarter, CannaRoyalty acquired FloraCal Farms for $1 million and 35,088 CannaRoyalty Class A Compressed Shares, as well as up to an additional US$3 million in cash and 35,088 Compressed Shares to be paid over 3 years. The company also acquired a licensed distribution and manufacturing facility, RVR Distribution,  in the city of Cotati in Sonoma County, California for $2.4 million to support its push into the California market.

July continued to be a busy month for the company as it then purchased the exclusive rights to distribute and manufacture California’s infused pre-roll company Pacific Remedy. In August, CannaRoyalty also closed on its deal to sell its pre-roll technology to Aurora (ACBFF) for  C$7 million in Aurora common shares.

Lustig added, “These results reflect the successful initiation of the company’s strategic focus on building its Californian distribution and brands platform. This growth is expected to continue in Q3 and Q4 as FloraCal and RVR are added to the Company’s financials and as our team continues to grow market share and expand the Company’s supporting manufacturing and value-add services footprint. Both RVR and FloraCal are performing above expectations, and we are actively executing our plans to increase the revenue generating capacity of both companies.”

Financial Moves

CannaRoyalty reaped the benefits of its stake in Anandia Inc., which was acquired by Aurora and was valued at approximately C$115 million in common shares and warrants of Aurora. CannaRoyalty’s equity stake in Anandia was reported at approximately $26.4 million as of June 30, 2018.

On July 12, 2018, CannaRoyalty announced that it had closed a fully marketed private placement of unsecured convertible debentures raising aggregate gross proceeds of $ 32,980,000.

Stock Performance

The stock was lately trading at $4.00 on the OTC Markets, not too far from the company’s year high of $4.58.

 

 

 


StaffStaffJuly 3, 2018
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5min3310

It’s time for your Daily Hit of cannabis financial news for July 3, 2018.

On The Site

Aurora Cannabis Inc. 

Aurora Cannabis Inc.  (ACBFF) gave several updates on different pieces of the company. The Aurora Vie production facility in Point-Claire Quebec got its sales license from Health Canada. The company said that this facility is on target to produce high-quality cannabis at a rate of 4,000 kg per year y October 2018 and that multiple harvests have been completed to date. Aurora has also modified the facility to produce softgel products. Its partner Capcium, is now installing equipment to commence high-volume production of these cannabis softgels.

Aurora also gave an update on the CanniMed company it acquired. The integration of the two companies is now complete. In addition, Aurora has received its Health Canada license for the production of encapsulated oil for its Mountain facility.

In Other News

RISE Life Science Corp.

RISE Life Science Corp. (CSE: RLSC) announced that it has closed a non-brokered private placement through the issuance of an aggregate of 4,824,399 units at a price of $0.30 per Unit for gross proceeds of $1,447,319.70. Each Warrant entitles the holder thereof to purchase one Common Share for a period of 24 months from the date of closing at a price of $0.45 per common share. The proceeds of the offering will be used for general working capital purposes.

MedMen Enterprises Inc.

MedMen Enterprises Inc. (MMEN.CN) (MMNFF), completed its first harvest at its cultivation and production facility outside Reno, Nevada. The test crop was only a fraction of the facility’s 10,000 pounds planned annual production capacity, but it went very smoothly and all systems functioned as designed, according to Dan McClure, MedMen’s vice president of agronomy.

Body and Mind Inc.

Body and Mind Inc. (BMMJ) announced approval of the final building inspection for the Phase II expansion from the Clark County Department of Building and Fire Prevention. The company initiated the Phase II expansion plans in early 2018 and is on time and budget to complete the increased production space, additional trim area, dry room and expanded packaging area.

CannaRoyalty Corp.

CannaRoyalty Corp. (CNNRF)  closed the previously announced acquisition of FloraCal Farms, a licensed premium craft cannabis producer located in Sonoma County, California. FloraCal has a temporary medium indoor cultivation license from the state of California, as well a Type 6 non-volatile manufacturing permit in Sonoma County. FloraCal is building its Sonoma County facility in three Phases and has been designed to comply with cGMP* standards.

FSD Pharma Inc.

FSD Pharma Inc. (CSE:HUGE) said that its first phase of the buildout of the FV Pharma facility in Cobourg, Ontario has been approved in an updated construction and development budget provided by Auxly. Of the current 620,000 square feet of building space available, 220,000 square feet will be developed and fully funded. As part of this project, Auxly will contribute $55,000,000 to buildout the Facility.

 

The markets will be closed on Wednesday for the Fourth of July and there will be no Daily Hit.


Debra BorchardtDebra BorchardtMay 3, 2018
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5min4950

It’s time for your Daily Hit of cannabis news for May 3 2018:

On The Site:

DEA Wins One

A panel of judges for the 9th U.S. Circuit Court of Appeals rejected a challenge filed by cannabidiol (CBD) producers against a Drug Enforcement Agency rule that classifies CBD as a Schedule I drug. The rule originated in 2016 when the DEA created a new Administration Controlled Substances Code Number for the term “marijuana extract,” which defined a marijuana extract as “an extract containing one or more cannabinoids that have been derived from any plant of the genus Cannabis…” This meant that CBD, regardless of whether it was extracted from hemp or cannabis, was now effectively a Schedule I substance.

Firing back at the DEA, the Hemp Industries Association filed a challenge against the rule, arguing that the agency overstepped its authority by scheduling substances that were not included in the Controlled Substances Act and that hemp-based CBD extracts were protected under state laws and Farm Bill provisions.  The HIA’s case hinged on whether or not the DEA rule violated agricultural laws, which the justices determined it did not and consequently ruled in favor of the DEA.

ABcann Global Corporation

ABcann Global Corporation (ABCCF) reported net sales of C$922,030 in 2017 versus C$525,940 in 2016.  The annual report or business update did not provide much in the way of standard financial reporting with regards to profits or losses. ABcann’s 2017 audited annual financial statements showed a cash balance on December 31, 2017, of $70.8 million and operating expenses totaling C$27.5 million.

Namaste Technologies

After posting an impressive second quarter financial earnings, the cannabis-tech company Namaste Technologies (NXTTF) has started makings moves in the world of artificial intelligence.

Today the company announced that they have executed a definitive agreement to acquire Findify AB, a Swedish corporation on the forefront of A.I. powered e-commerce personalization, delivering solutions such as personalized search, recommendations, and advanced data analytics.

In Other News

Medicine Man Technologies Inc.

Medicine Man Technologies Inc. (MDCL) reported financial results for the quarter ended March 31, 2018. Medicine Man generated revenues of $1,211,037 as compared with the three months ending March 31, 2017, where it generated revenues of $541,136. Overall revenue increased during this three-month period over that of the prior year by $669, 901, or 124%, making this the fifth consecutive quarter on quarter revenue growth period achieved.

Harvest One Cannabis Inc. 

Harvest One Cannabis Inc. (TSXV: HVT)  is acquiring all the outstanding shares of Dream Water Products Canada Inc. and Sarpes Beverages, LLC in exchange for a combination of US$12.5 million in cash and C$18.5 million in shares at a deemed price of C$1.00 per share, representing total consideration of approximately C$34.5 million. After closing, Harvest One will continue to hold a substantial cash position of approximately C$62 million and zero debt. As part of this Transaction, the combination of Dream Water Canada and Dream Water USA will become Dream Water Global (“Dream Water”) and own the worldwide rights and all intellectual property to and for Dream Water.

CannaRoyalty Corp.

CannaRoyalty Corp. (CNNRF) announced that it has received renewed licenses for Kaya Management Inc., Alta Supply Inc., Vista Distribution Inc., and Zenco Manufacturing Inc. Kaya and Alta are wholly-owned subsidiaries of CannaRoyalty, and the company’s active cannabis operations in California are exclusively carried out through these two entities. The company intends to apply for permanent licenses in both the adult use and medical categories in due course during 2018, and a further update will be provided on receipt of such permanent licenses.

 


StaffStaffApril 26, 2018
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3min5600

Canadian-based CannaRoyalty Corp. (CNNRF) announced that one of its investee companies, Alternative Medical Enterprises, LLC often called AltMed closed a private placement financing of $35.4 million. In a company statement, CannaRoyalty said it made a $1.5 million equity investment in AltMed in 2015 and that the post-money valuation of this current financing represents a growth in value of approximately 215% for CannaRoyalty shareholders.

AltMed Chairman and CEO Mike Smullen added, “The financing will enable us to build out our 25 licensed dispensaries in Florida, expand our cultivation capabilities and increase our footprint in Arizona. We anticipate significant growth over the next few years as we expand our licensed facilities to meet the needs of medical patients in Florida and Arizona. We are grateful to CannaRoyalty and CR Advisory for their expertise and assistance in getting our company to this stage.”

AltMed is a pharmaceutical company based in Sarasota, Florida and currently has vertically integrated cannabis operations in Arizona and Florida with a pipeline of expansion opportunities to scale operations significantly in the US medical cannabis market and expand into the international market. Additionally, the company owns MÜV,  a brand of cannabis-infused products that was launched in Arizona in 2016.

MUV has a full range of premium smoke-free cannabis products including topicals, inhalers, vaping products, shatter and crumble as well as oral sprays and tinctures. CannaRoyalty has a 3.5% royalty on global net sales of the following MÜV products; transdermal patches, metered dose inhalers, and patent-pending transdermal gels. The company also has the right to license MÜV products in California and Canada.

“Congratulations to Mike Smullen, Matt Duffy and the entire team at AltMed for the tremendous growth they have generated this year, as well as the international recognition that their MÜV product line has received,” said Marc Lustig, CEO of CannaRoyalty. “Our investment alongside the AltMed team has driven tremendous value for our shareholders and is representative of the unique investment opportunities CannaRoyalty has been able to participate in as one of the first movers in the U.S. cannabis industry. We expect to realize further value from our rights to the MÜV product suite, particularly as we build our presence in Canada and other jurisdictions.”


Debra BorchardtDebra BorchardtApril 4, 2018
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4min7570

CannaRoyalty Corp. (CNNRF) reported that its revenue for 2017 rose to C$3 million, but could only be compared to nine months of revenue for 2016 which was C$642,277. The same went for the company’s net losses, which were C$9 million versus a loss of C$10.3 million for nine months ending December 2016. The net loss per share was trimmed to C$0.22 for the 12 months ending in 2017 versus C$).41 for the nine months of 2016.

The cash and cash equivalents rose to C$4.5 million at the end of 2017 versus C$2.9 million for 2016. Total assets of C$46,139,757  increased 43% over 2016’s C$32,197,938. CannaRoyalty has a bought deal financing of $15,000,000, that was announced on March 16, 2018, and is anticipated to close in April 2018.

“In 2017, our team worked hard to position the Company for long-term growth with the California market as a foundation,” said Marc Lustig, CEO of CannaRoyalty. “Those efforts culminated in several strategic transactions over the past four months that have transformed CannaRoyalty into one of the largest and best-positioned cannabis players in California. Our market-leading distribution business places us in an ideal position to be a partner of choice for leading brands and dispensaries across the state.”

The company said in a message to shareholders that the acquisitions of Alta Supply and RVR would give CannaRoyalty a leading cannabis distribution and logistics network in the world’s largest regulated cannabis market.  On March 27, 2018, CannaRoyalty announced it had closed the acquisition of Alta Supply Inc. and entered into a binding term sheet for the acquisition of 100% of River Distribution and its affiliates. “Together, these businesses generated revenue of US$31.9 million in 2017. With our distribution platform, we are well positioned to rapidly expand the sales and reach of existing brands that are looking to access shelf-space across the state, as well as for dispensaries seeking access to a full spectrum of top products and brands. We can also leverage this infrastructure to do the same for our own brands.”

Looking Ahead

Over the next 12 months, the company plans to integrate the operations of acquired companies, including Kaya, Alta Supply, and RVR; make strategic acquisitions of promising products or leading brands; drive growth of distributed and CR Brand products; lay the foundation for sale of CR Brand products in other jurisdictions, beginning in Canada and portfolio focus and rationalization.

Stock Performance

The stock on the OTC Marketplace was lately trading at $2.93, down from its 52-week high of $4.58 which it reached the beginning of January. The stock has recovered slightly from trading at the $2.60 range at the end of February.


Jack SmithJack SmithMarch 27, 2018
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5min10920

Activist investor CannaRoyalty (CNNRF) is at it again, making another acquisition in the cannabis space, this time announcing its intent to acquire all of River Distribution, California’s largest cannabis retail network.

The move is a bold step for the Marc Lustig-led company, giving it access to a large network and significantly growing its revenue. In 2017, River generated $25.4 million in revenue, which would bring total 2017 revenue CannaRoyalty has acquired to $31.9 million, including from Alta Supply, another California-based distributor CannaRoyalty previously acquired.

“The RVR and CannaRoyalty teams have already worked closely together for the past year. We are confident that the consolidation of RVR with Alta Supply will position us as a leader in the world’s largest regulated cannabis distribution system, in California,” Lustig said in a press release.

With the acquisition, which is expected to close by the end of the second quarter 2018, CannaRoyalty is going to be the “largest revenue-generating cannabis holding companies in the world,” the company said.

Lustig continued, noting CannaRoyalty’s existing network makes it a perfect fit for River Distribution. “Our extensive distribution network in California makes us an ideal partner for brands that are looking to grow in California at scale,” he said. “And a carefully selected portfolio of manufacturing partners also make us a superior partner for dispensaries seeking one-stop access to a full spectrum of top products and brands, in an efficient and cost-effective manner.”

Ted Simpkins, the founder, and CEO of River said the deal helps complement River’s existing business, allowing it to grow even further, alluding to his experience having built a wine and spirits business previously.

“I am highly confident that distribution will become one of the most valuable and integral components of the cannabis value chain as the adult-use market matures over the next several years,” Simpkins said in the statement. “CannaRoyalty has been an exceptional partner to RVR and it is clear to me that its growing team has the right mix of talent and assets to enable us to continue to meaningfully grow our already leading network.” Simpkins, along with River’s CFO Henry Pilger, will join the combined company after the deal closes.

The move puts CannaRoyalty squarely in the largest cannabis market in the world. In 2016, the California cannabis market saw $2.8 billion in sales, according to New Frontier Data. The market is expected to nearly triple by 2021, totaling $6.8 billion, with vapor products expected to account for 15 percent of the market.

Edible products are expected to be another strong segment of the market, accounting for 22 percent of the market, growing at an annual clip of 117 percent in 2018, according to data compiled by Brightfield Group & BDS Analytics.

Though the final acquisition price was not disclosed, CannaRoyalty said it would use 5 million shares, along with 1.65 million shares to pay for the acquisition. There is also another 2 million shares “subject to the successful completion by RVR of financial milestones to be agreed on by the parties.”

CannaRoyalty trades on the Canadian Stock Exchange under the ticker “CRZ” as well as over-the-counter exchanges under the ticker “CNNRF.” Shares of the over-the-counter stock recently changed hands at $2.94, down since the high of $4 seen in early January.

 


William SumnerWilliam SumnerMarch 22, 2018
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3min4490

Here are the news briefs for March 22, 2018:

Namaste Technologies Inc.

Namaste Technologies Inc. announced today that it has signed a non-binding Terms Sheet with PharmaCann Pty Ltd. Under the term sheet, Namaste will participate in an investment to purchase 10% equity position in PharmaCann, which currently holds licenses to import and export wholesale medical cannabis in Australia. The proceeds from Namaste’s investment will go towards securing a medical cannabis cultivation license through the Australian Government Department of Health. Additionally, Namaste will purchase 250 kilograms of cannabis per year for export to Canada, where it is to be sold through the company’s subsidiary Cannmart for the next three years, pending Health Canada approval.

CannaRoyalty Corp.

Canna Royalty Corp. (CRZ) announced that is has receive a receipt for a preliminary short form prospectus of the Company from securities regulators in regards to its previously announced $15 million bought deal offering. The offering is expected to close some time around April 4, 2018. The company also announced that it intends on implementing an early warrant exercise incentive program for outstanding common share purchase warrants issued on Feb. 15, 2017. Under the incentive program, each warrant exercised between 9:00 AM on the closing date of the previously announced offering and the 30th of the day following the closing date will entitle the holder to purchase one common share at a price of $5.50.

Kanabo Research

Kanabo Research, an Israeli medical cannabis research and development firm based in Tel-Aviv, announced that it had signed a partnership agreement with Jupiter Research, a Phoenix-based manufacturer of vaporizer products. Under the agreement, Kanabo will distribute Jupiter’s L9 vaporizer platform under the VapePod brand. The Israeli Ministry of Health has granted conditional approval for Kanabo’s VapePod vaporizer, making Israel the first country in the world to grant a medical device approval to a vaporizer intended to be used with medical cannabis.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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