It’s time for your Daily Hit of cannabis financial news for February 25, 2019.
On The Site
SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) is forming a new international hemp-focused subsidiary, Heavenly Rx Ltd. Its initial focus will be on hemp cultivation, processing and the manufacturing of a diverse range of traditional CBD products including oils, tinctures, balms, and vape-ready products. The company said it plans on holding a controlling ownership interest in various industry-leading assets in the hemp/CBD and THC-free cannabinoid wellness space.
One of the first strategic assets will be its investment in Knoxville, Tennessee-based Blühen Botanicals LLC. Heavenly Rx is investing $30.6 million in Blühen, which will allow Blühen to expand its research and engineering teams as well as focus on the development and expansion of its retail operations. According to the statement, Blühen is an industry leading and technologically advanced hemp biomass processing and extraction company that will be GMP and EUGMP certified with farming and distribution partners across the southeastern United States.
48North Cannabis Corp.
48North Cannabis Corp. (TSXV: NRTH) released its financial and operating results for the three and six months ended December 31, 2018, with revenue for fiscal second-quarter of C$2.4 million. This was an 88% sequential increase over the first quarter. The company reported a net loss of C$872,628, down from the first quarter loss of $1 million.
James E. Wagner Cultivation Corp.
James E. Wagner Cultivation Corporation (TSX VENTURE: JWCA) reported its unaudited financial and operational results, for the first quarter of fiscal 2019 ending December 31, 2018. The company reported $549,000 in operating revenue, but a net loss of $2.3 million.
In Other News
CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) began trading on the New York Stock Exchange today. CannTrust’s shares will trade on the NYSE 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”. Shareholders that purchased common shares on the OTC Markets Pink Open Market may now trade their shares on the NYSE.
Grown Rogue International Inc. (CSE: GRIN) (OTC: NVSIF) signed a binding agreement which provides the Company the right to acquire operational control of certain cannabis licenses and related assets as part of its expansion into the Michigan cannabis market, pending certain regulatory approvals. Grown Rogue has entered into a binding agreement with Blue Zebra Community LLC. The Agreement provides for the option to acquire operational control of the following cannabis related assets in Michigan pending Municipal and State regulatory approval:
- Two strategically located proposed provisioning centers (retail dispensaries) in high demand regions in Midtown Detroit and Hazel Park where limited municipal licenses have been granted.
- A proposed 19,000 sq ft indoor cultivation and processing facility in Detroit, Michigan capable of producing 1,500,000 grams of dried cannabis flower annually at full production; and
- An entity that has received multiple municipal cultivation licenses for a 28-acre parcel located in the northern portion of the lower Michigan peninsula.
Cresco Labs (CSE: CL) (OTC: CRLBF) announced the formation of a new wellness subsidiary, Well Beings, that will provide the Company the ability to expand its house of branded products to all 50 states to potentially reach a new customer base outside of the licensed dispensary channel. Well Beings, led by Cresco’s Chief Experience Officer, MINIMAL principal, and former Nike Global Creative Director Scott Wilson will offer a full line of high-quality hemp-based CBD wellness products eligible for national distribution. The subsidiary will have its own unique product line and produce CBD versions of Cresco Labs’ house of branded products including Cresco, Remedi and Mindy’s Edibles
Helix TCS, Inc. (OTCQB: HLIX has added the former President of Mexico, Mr. Vicente Fox Quesada, to its Board of Directors. Mr. Fox will support the company as a strategic advisor as it continues its growth into the international cannabis market. Mr. Fox was the 55th President of Mexico and prior to that, he was the CEO of Coca Cola’s Latin American operations. He currently serves on the Board of Directors of a leading U.S.-based cannabis publication advocating legalization, as well as on the Board of Directors of Khiron Life Sciences, a leading, vertically integrated Latin American cannabis producer.
Cannex Capital Holdings Inc. (CSE: CNNX) (OTCQX: CNXXF) has signed a binding letter agreement to acquire 100% of San Diego, California based Pure Ratios Holdings, Inc., in a cash and stock transaction. Cannex will pay Pure Ratios’ shareholder’s total consideration of up US$2,000,000 in cash, 3,500,000 shares of Cannex stock, US$2,500,000 of contingent cash consideration and the assumption of US$500,000 of Pure Ratios’ existing debt for total maximum consideration of US$8,000,000. Upon closing of the Transaction Cannex will pay the Pure Ratios’ shareholders US$1,4000,000 in cash with an additional US$100,000 per month for 6 months for total cash consideration of US$2,000,000 and will issue 3,500,000 shares of Cannex.