It’s time for your Daily Hit of cannabis financial news for May 7, 2019.
On the Site
Investors Are Bullish On Cannabis, According to KCSA Survey
Investors are feeling bullish about the cannabis industry, according to a new survey released by KCSA Strategic Communications. Titled the Cannabis Investor Survey, KCSA polled over 250 retail cannabis investors about their investments and outlook on the legal cannabis industry in the United States.
Illinois Releases Plan For Full Legalization
This past Saturday, Illinois Governor J.B. Pritzker released the plan for full cannabis legalization which is set to begin on January 1, 2020. Companies that currently had medical cannabis licenses would get a jump on other companies with regards to applying for licenses. According to the plan, new licenses for dispensaries would begin on May 1 and processors, craft growers and transporters would begin licensing on July 1. It wouldn’t be until late 2021, that the next round of businesses would receive licenses.
Long-awaited German Tenders Handed to Specialist Trio
White smoke emanating from Germany’s medical agency signals the wait is over to find out which firms have been awarded medicinal cannabis tenders for Europe’s top market. Two Canadian firms, Aphria, and Aurora Cannabis and Germany’s Demecan have won out, it has emerged. The three companies will split a four-year tender to grow 10,400kg between them. Aphria won five of the 13 lots, with Aurora Cannabis and Demecan handed five and three lots respectively.
In Other News
MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) today released their fourth quarter and full year financial results for 2018. Revenue for the year was $27.5 million. Adjusted net loss from operations was $27.4 million and adjusted EBITDA was $12.2 million. “2018 was a year of significant change in the company as we expanded in to another US state, entered the Canadian market via acquisition, and became a publicly traded company on both the CSE and OTC,” remarked Adrian Montgomery, MJardin Chairman of the Board and Interim CEO. “In addition, we have restructured our corporate size and organization to better integrate and align with our core business goals in both countries.”
Heritage Cannabis Holdings Corp. (CSE: CANN) announced that it has closed a $17.3 million bought deal offering, selling approximately 32.6 million units of the company at a price of $0.53 per unit. Each unit consisted of one common share and one-half of one common shar purchase warrant. Proceeds from the offering will be used to increase extraction capacity and follow-on investments in existing portfolio companies, new domestic and international opportunities, working capital and general corporate purposes.
TerrAscend Corp. (CSE: TER) announced that it has completed the book-build for its previously announced upsized private placement. The gross proceeds from the offering totaled $52 million. The company is issuing common shares in the private placement at the previously announced price of C$7.64, which is a 5% discount from Monday’s closing price.
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) announced that is has opened a cannabinoid device R&D facility in Israel. Dubbed Cronos Device Labs, the facility will feature a 23-member team and is comprised of product designers, mechanical, electrical and software engineers, and analytical and formulation scientists. “The launch of Cronos Device Labs is an exciting next step on our journey to become a leader in cannabinoid innovation,” said Cronos Group Chairman, President and Chief Executive Officer Mike Gorenstein. “Vapor is already one of the most popular forms of cannabis consumption, and we see a clear opportunity for Cronos Group to introduce the next-generation of vaporizer products designed specifically for cannabinoid formulations.”
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of Spectrum Therapeutics, a new global brand that will encompass all of the company’s ongoing commercial medical and clinical research operations including Spectrum Cannabis, Canopy Health Innovations , and Bionorica SE-founded C3 Cannabinoid Compound Company. Spectrum will be involved with the production and distribution of full-spectrum and single cannabinoid medical cannabis products; education, resources and support for patients and healthcare practitioners; as well as pre-clinical and clinical research and the development of cannabinoid-based medicines.