It’s time for your Daily Hit of cannabis financial news for the week ending December 19, 2018.
On The Site
Aleafia Health Inc.
Aleafia Health Inc. (TSXV: ALEF) is acquiring Emblem Corp. (TSXV: EMC, OTCQX: EMMBF) are in an all-stock deal valued at approximately $173.2 Million. The combination will create Canada’s largest medical cannabis clinic network with 40 clinics and education centers.
Aleafia’s stock slid slightly by 1% to $1.05, while Emblem’s stock jumped over 13% to lately trade at 81 cents on the OTC Markets.
As a result of the acquisition, Aleafia’s patients will get access to Emblem’s products including capsules, oils and oral sprays. They will also get access to the Emblem e-commerce platform. Aleafia will also get to use Emblem’s license to process medical cannabis products and sell these directly to the patients.
Terra Tech Corp.
The war between Terra Tech Corp. (OTC: TRTC) and its investor Heidi Loeb Hegerich is heating up. The first attack began with a lawsuit filed last week by the Reno, Nevada woman claiming fraud. Loeb Hegerich entered into a partnership with Terra Tech and became a co-owner of a Blum dispensary in midtown Reno. Loeb made some 50 different claims in the case and ultimately is unhappy that she hasn’t received any money back from her investment.
Among the claims, she says she contributed $633,156, and Terra Tech has only contributed $513,706, which was not as much as they had originally agreed to invest. Loeb also claims that Terra Tech’s financials weren’t audited properly as the company claimed and that funds were commingled with other joint ventures.
Terra Tech said it will defend itself vigorously against the meritless claims filed in the State of Nevada. The company strongly denies these allegations and would like to highlight that these are only allegations by a business partner which have not been proven. Terra Tech also intends to pursue numerous counter-claims against Ms. Hegerich.
Cannabis loyalty software company springbig completed its latest Series A fundraise for $5 million bringing its total amount raised to $11.3 million. This round was led by venture capital firm Altitude Investment Partners which has behind several winners in the cannabis industry.
Springbig is a technology company that provides SMS, loyalty marketing, and other tools to help encourage repeat business for cannabis retailers. The company grew 685% from September 2017 to September 2018 when it hit 1.9 million consumers on its platform.
In Other News
AB InBev, the world’s leading brewer, and Tilray, a global pioneer in cannabis production and distribution, announced a partnership to research non-alcohol beverages containing tetrahydrocannabinol (THC) and cannabidiol (CBD). The partnership is limited to Canada and decisions regarding the commercialization of the beverages will be made in the future.
The research partnership combines AB InBev’s deep experience in beverages with Tilray’s expertise in cannabis products. AB InBev’s participation will be through its subsidiary Labatt Breweries of Canada, one of the country’s founding businesses and its leading brewery, and Tilray’s participation will be through its Canadian adult-use cannabis subsidiary High Park Company, which develops, sells, and distributes a portfolio of socially responsible cannabis brands and products in Canada. Each company intends to invest up to $50 million USD, for a total of up to $100 million USD.
Cresco Labs (CSE: CL), one of the largest vertically integrated multistate cannabis operators in the United States, today announced that it has been awarded a second merit-based license for dispensary operations in Pennsylvania. The permit allows Cresco Labs six months in which to become operational before it can begin dispensing medical marijuana. The Company is licensed for three dispensaries under its second license.
Baristas Coffee Company, Inc.
Baristas Coffee Company, Inc. (OTCPK:BCCI) and Flower Power have partnered to bring high-end CBD Coffee to the masses, launching Baristas EnrichaRoast CBD as the first of its new line of infused coffee that promotes healthy living. The first production run of this ground-breaking Coffee by the two leading Coffee Companies is anticipated to be ready for consumers by year’s end, allowing those who are making resolutions to consume CBD daily in 2019 to be able to kick off the year enjoying this truly special blend of coffee.