It’s time for your Daily Hit of cannabis financial news for February 20, 2019
On The Site
A letter to the (Food & Drug Administration) FDA Commissioner Scott Gottlieb was penned by a group of politicians requesting guidance with regards to CBD (cannabidiol). The letter referred to New York City’s ban on food products containing CBD and enforcement actions happening in the states of Maine and Ohio.
Representative Chellie Pingree posted the letter on her Twitter feed. It acknowledged that the FDA had posted a response with regards to CBD following the passage of the2018 Farm Bill. The letter also noted that there is a “tremendous amount of confusion among product manufacturers, hemp farmers, and consumers.”
The letter said, “We are calling on the FDA to swiftly provide guidance on lawful pathways for food products with CBD.” The group asked that answers to the following questions be provided by Friday, February 22.
In Other News
Tilray, Inc. (NASDAQ: TLRY) entered into a definitive agreement pursuant to acquire all of the issued and outstanding securities of FHF Holdings Ltd. from Compass Group Diversified Holdings, LLC (NYSE: CODI) and other shareholders of Manitoba Harvest. Tilray will acquire Manitoba Harvest on a cash and debt-free basis, for an aggregate purchase price, including cash and class 2 Common Stock in the capital of Tilray of up to C$419 million pending the achievement of certain milestones after the closing of the Transaction.
Tilray said it now expects to launch CBD-derived products in the U.S. as early as this summer. Manitoba Harvest Chief Executive Bill Chiasson said the company has been in business for more than 20 years and is the world’s largest hemp food maker. It generated C$94 million in 2018 sales. Manitoba Harvest makes products such as granola, protein powder, and hemp oil, and has 30,000 acres of cultivation contracted for this year.
Ascend Wellness Holdings (AWH) secured $37 million in a bridge round of preferred equity and $18 million in a senior secured cultivation note. The $55 million in raised funds will be used to build out market-leading operations in Massachusetts, as well as the continued expansion in limited market-leading markets.
AWH is entering Ohio through an agreement to purchase a tier II cultivation license. It is also in advanced discussions for dispensary licenses. Ohio allowed medical cannabis use in January and marks AWH’s fourth market. AWH will provide care to Ohio residents for different approved medical conditions, solidifying its commitments to limited license markets.
Cannabis Strategic Ventures
Los Angeles-based Cannabis Strategic Ventures, Inc. (OTC: NUGS) today announced it has secured up to a $3 million investment from TRITON FUNDS subsequent to an upcoming S1 registration statement. TRITON FUNDS is a San Diego-based investment fund focused on creating a greater sense of community through investments in local companies, entrepreneurs and philanthropy. The new partnership is led by TRITON FUNDS Advisor, Mr. Robert Hymers III CPA and alumni of California State University Northridge where TRITON FUNDS was founded.
The new financing will allow Cannabis Strategic Ventures to accelerate its business priorities related to cannabis cultivation operations in California and the expansion of existing portfolio brands such as The Asher House Wellness, Fitamins, and LYXR.
GW Pharmaceuticals (GWPH -2.8%) slips on below-average volume in apparent response to social media comments about an epileptic patient’s father who has been unable to procure Epidiolex for about a week and the frequency of his daughter’s seizures have increased.
Kona Gold Solutions, Inc. (OTC: KGKG) has entered into distribution agreements with three Missouri based Anheuser Busch distributors: River Eagle Distributing, Inc., Bradley Distributing, Inc. and Bob Ralph Dist. Co., Inc. The partnership between Kona Gold and River Eagle, Bradley, and Bob Ralph Dist., will cover the southeast of the state of Missouri. All three distributors will distribute the Company’s popular Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters.
CannTrust Holdings Inc. (TSX: TRST) has satisfied all the regulatory requirements to list its common shares on the New York Stock Exchange. Trading of the Company’s common shares on the NYSE will begin on Monday, February 25, 2019, under the ticker symbol “CTST”. The Company’s common shares will continue to be listed on the Toronto Stock Exchange under the ticker symbol “TRST”.