CannaRoyalty Archives - Page 2 of 2 - Green Market Report

William SumnerWilliam SumnerMarch 16, 2018
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3min10600

CannaRoyalty Corp. (CRZ)  has announced that it has entered into an agreement with a syndicate of underwriters. Led by Canaccord Genuity Corp., the underwriters will, on a bought deal basis, purchase a total of 3,750,000 units of the company at a price of $4.00 CSD per unit, for a total value of $15 million.

One unit of the company consists of one common share and one half of one common share purchase warrant. A purchase warrant permits the holder to purchase one common share of the company, for up to a three year period following the closing of the deal, at a price of $5.50 per common share.

Each warrant is subject to adjustment in certain scenarios. If the volume-weighted average trading price of the common shares exceeds a price of $8.00 for a period of 15 days, the company may accelerate the exercise of the purchase warrant, no less than 21 days after the company provides warrant holders notice of the acceleration trigger.

Additionally, the underwriters have been granted an over-allotment option to purchase up to 562,500 units of the company, at a price of $4.00 per unit. The over-allotment option is exercisable 30 days following the closing of the deal. The underwriters have the ability to exercise the over-allotment options to acquire more warrants, common shares, or units.

“2018 is an exciting year for CannaRoyalty shareholders with California already operating under an adult-use recreational cannabis framework and Canada poised to make the transition later this year,” said Marc Lustig, CEO of CannaRoyalty, in a statement. “The Offering will enable us to continue to build on our leading platform of brands and supporting distribution and infrastructure assets in California through strategic acquisitions while driving penetration for our existing CR Brands product portfolio in the state.”

If the option is exercised, it would provide the company an additional $2.25 million, bringing the sum value of the deal to $17.25 million. The offering is expected to close on April 4, 2018.


Debra BorchardtDebra BorchardtMarch 15, 2018
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3min11860

Here are today’s quick hits:

TerraTech Corp.

TerraTech (TRTC) rescheduled its earnings call scheduled for Thursday and postponed it to Friday. Sometimes these types of postponements are purely technical in nature, i.e. the accountants need to confirm numbers or language needs to be tweaked. However, it is usually not a positive sign when things aren’t finalized at this late moment. Hopefully, the delay wasn’t due to something substantial.

DELTA 9 CANNABIS INC.

DELTA 9 CANNABIS (TSXV: NINE) has signed a Memorandum of Understanding to purchase up to 5,000 kilograms of cannabis from Alberta-based Sundial Growers Inc. The purchase is designed to increase Delta 9’s ability to meet the anticipated market demand following the full legalization of adult-use cannabis in Canada. The agreement commits Sundial to supply up to 5,000 kilograms of both dried cannabis and/or cannabis derivatives “to meet or exceed” Delta 9’s market demand in the period post-legalization. Delta 9 CEO John Arbuthnot says the agreement was reached as part of the company’s commitment to supply the Manitoba market.

CannaRoyalty Corp.

CannaRoyalty (CNNRF) announced that it has signed a binding term sheet to expand its business relationship with National Access Cannabis Corp. to carry CannaRoyalty products in NAC stores across Canada. According to a statement, NAC is in the process of applying for licenses in several Canadian jurisdictions and recently announced that it was one of four entities that have received conditional approval for a license to operate private retail cannabis stores across Manitoba. The agreement covers the purchase by NAC of certain CannaRoyalty products.

Marapharm Ventures Inc.

Marapharm Ventures (MRPHF) announced that its final plans for the company’s first cultivation facility in Desert Hot Springs, California are complete and ready for submission to the city. Basically saying that it was still on schedule to meet its construction goals.

Global Payout Inc.

Global Payout Inc. (GOHE) announced that its subsidiary MoneyTrac Technology had begun the soft launch of MTRAC, a full-service banking solution powered by software technology features that the company had acquired through its Joint Venture with GreenBox. MTRAC is an E-Wallet cash loading machine/kiosk that is supported by blockchain technology and will be leveraged by MTRAC in a system that will offer cannabis consumers and retailers an effective alternative to cash payment transactions.


StaffStaffMarch 14, 2018
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3min18760

CannaRoyalty Corp. (CNNRF) through its subsidiary, Trichome Yield Corp. will provide up to $2.5 million to 180 Smoke to fund an expansion of its retail footprint in anticipation of Canadian adult-use cannabis legalization.

180 Smoke was co-founded by world-renowned heart surgeon Dr. Gopal Bhatnagar, and is an Ontario-based vape products company. 180smoke.ca is the highest trafficked vaping website in Canada and currently attracts 64% of Canadian vape-related web traffic. The money will support 180 Smoke’s retail and cannabis product offering expansion and help the company open 11 new stores as well as expanding the company’s cannabis hardware offering. 180 Smoke and CannaRoyalty’s subsidiary, CR Advisory, will also work together to bring cannabis products to the Canadian marketplace.

“Forming a relationship with leading Canadian omnichannel retail leader 180 Smoke ahead of adult use legalization represents a compelling and unique first deal for Trichome. It also presents CannaRoyalty shareholders with multiple paths to value creation,” said Marc Lustig, CEO of CannaRoyalty. “180 Smoke’s harm reduction platform has enabled the company to develop an authentic and responsible Canadian retail experience that has served Canadian cannabis consumers for years. This unique model makes them a stand-out – not just in Canada – but also positions them favorably against established cannabis retailers we have seen in the mature California market, where we have benefited from investing in and securing distribution pipelines into retail sales channels.”

According to the statement, 180 Smoke will receive up to $2.5 million from the financing, with an initial investment of $500,000 to be followed by additional investments up to the $2.5 million maximum, subject to satisfactory due diligence and other customary conditions. The Financing will be secured against the assets of 180 Smoke. Further, 180 will issue warrants to acquire shares of 180 Smoke at a pre-determined exercise price for a three-year term.

180 Smoke reported $7.7 million in net sales for 2017 and currently has 16 retail stores in its network. 87% of its net sales come from vape and nicotine related products, while only 12% comes from cannabis vape products.


StaffStaffMarch 13, 2018
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4min16341

Here are the quick hits for March 13, 2018:

Aurora Cannabis

Aurora Cannabis (ACBFF) announced the grant of three permits by the Australian Government, Department of Health, for the importation of cannabis into Australia for research purposes. The Permits were granted to the Pharmacy Australia Centre of Excellence (PACE) at the University of Queensland and allow PACE to import shipments of cannabis plant material for research purposes. Aurora, in turn, has received the required Canadian permits to export the cannabis to PACE. The cannabis will be shipped from Canada by Aurora and used for PreveCeutical’s soluble gel drug delivery research program, which is being conducted by PreveCeutical’s research partner UniQuest Pty Inc. and led by PreveCeutical’s Chief Research Officer, Dr. Harendra Parekh.

Nutritional High International Inc.

Nutritional High. (SPLIF) announced it has entered into an agreement to acquire a 75% interest in cannabis producer Green Therapeutics in the State of Nevada. In conjunction with the acquisition, the company will also purchase certain lands and premises owned by Nevada-based cultivation company Meridian Companies which is utilized by Green Therapeutics. Nutritional High and Green Therapeutics have also entered into a binding lock-up agreement while purchase and sale agreements are negotiated and due diligence is completed.

Aphria Inc.

Aphria (APHQF) announced that it received a license amendment from Health Canada that provides Aphria with additional production space of 200,000 square feet, as part of its Part III expansion at its facility in Leamington, Ontario. This will more than triple the Company’s production capacity of medical cannabis from 9,000 kg annually to 30,000 kg annually.

CannaRoyalty Corp. 

CannaRoyalty (CNNRF) announced the appointment of Brent Cox to the Board of Directors of Trichome Yield Corp. a subsidiary of CannaRoyalty. Following this board appointment, the board consists of five members, four of whom are independent of CannaRoyalty. Cox is a founding partner of The Inception Companies, a private investment vehicle focused on the global cannabis market, following a number of years at The Yucaipa Companies, where he helped invest and monitor over USD$4.0 billion of private equity transactions. He currently serves on the boards of two successful vertically integrated U.S. cannabis companies, MedMen and The Pharm.

The Hydropothecary Corporation

Hydropothecary announced the addition of three new members to its management team. Roch Vaillancourt (General Counsel), Sonia Isabel (Vice-President of Sales), and Jocelyn Racine (Vice-President of Finance) bring decades of management, financial, business, and legal experience to Hydropothecary as the company strengthens its leadership in the lead-up to the legalization of adult-use recreational cannabis.

TerraTech

TerraTech (TRTC) gave a business update ahead of the company’s earnings. It read as follows:
Company secures $40 million investment, to be made in eight tranches of $5 million over 24 months. Capex to be directed toward the build out of the Company’s cultivation, extraction and retail infrastructure in California, Nevada and New Jersey Capital injection positions the Company to leverage M&A opportunities and ramp its sales and marketing strategy 1 for 15 reverse split to be effected on March 13, 2018, to position the Company for a potential uplisting.


William SumnerWilliam SumnerJanuary 16, 2018
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3min14020

CannaRoyalty (CNNRF) has announced that one of its investee companies, Anandia Laboratories Inc., has closed a private placement financing of $13.4 million at a post-money valuation of $63 million.

Operating out of a 5,400 square foot facility in Vancouver, British Columbia, Anandia Labs is an independent cannabis analytics, testing, and genetics company. As one of Health Canada’s 33 licensed dealers, Anandia Labs is permitted to cultivate, extract, analyze, import/export and buy/sell/trade cannabis in any form

The financing will go towards the first phase of the Anandia Labs’ Cannabis Innovation Centre, a 40,000 square foot complex that includes a 20,000 square foot R&D cultivation facility and a 20,000 square foot building to meant for housing tissue culture and extraction infrastructure.

After accounting for the financing, CannaRoyalty owns approximately 17% of Anandia Labs.

In February 2017, CannaRoyalty invested $3.9 million in Anandia Labs at a post-money valuation of $18 million. The current financing’s post-money valuation represents a growth of approximately $7 million or 180% for CannaRoyalty shareholders.

CannaRoyalty’s wholly owned business unit, CR Advisory, which has an ongoing engagement with Anandia Labs, will receive approximately 229,421 Anandia Labs shares and a cash payment of $240,000 in exchange for services rendered

“Congratulations to Dr. Page and the entire team at Anandia Labs for the achievement of this milestone and for being named the Top Testing Lab in Canada for 20171,” said CannaRoyalty CEO Marc Lustig, in a statement. “With an approximate 20% market share of licensed producers under Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”), Anandia Labs continues to position itself as a Canadian leader in cannabis testing and analytics.”

Anandia Labs provides analytical testing services including potency, pesticides, microbes and terpenes to  Licensed Producers and patients. In addition, Anandia Labs uses its cannabis-specific scientific expertise to assist its customers in the analysis of their testing results and resolution of any detected non-conformities. Anandia Labs has also completed extensive research into cannabis genetics and has built a significant collection of cannabis germplasm.

Most recently, CannaRoyalty’s stock was trading at $4.23, down from its 52 week high of $5.05 but well above its 52 week low of $1.63.



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