It’s time for your Daily Hit of cannabis financial news for July 2, 2019.
On The Website
Vertically integrated consumer cannabis company 1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) delivered its third quarter results for the three months ended April 30, 2019, in Canadian dollars. Revenues of $4.6 million increased 40% over last year’s $3.7 million for the same time period. The rise was a 28% increase sequentially.
The net loss rose to $7.2 million versus last year’s net loss of $2.9 million. The company attributed the increase in losses to the investment in the company’s consulting arm, Spire Global Strategy. 1933 said that it acquired Spire on the basis of an independent valuation, a strong team, and a solid business plan to provide services to the burgeoning cannabis sector in Canada. The company added that the expected revenue and future market development of Spire were not realized. 1933 said that its strategy has since shifted to consolidate its focus on the nation-wide growth of its consumer branded goods and supporting cultivation and extraction assets, where the value proposition of these sectors to the business provides a better return on investment.
International expansion is the words of the day as several companies announced plans to reach beyond the borders of Canada and the U.S. It seems Colombia is where all the action is.
MJ Freeway, a subsidiary of Akerna Corp. (NASDAQ: KERN) said it is expanding further into Europe by serving clients in two additional countries, Italy and Macedonia. The company also recently opened a Medellín, Colombia office to serve its growing footprint in South America. MJ Freeway client, Clever Leaves, is the first Colombian company authorized to export cannabis into Canada.
MYM Nutraceuticals Inc.
MYM Nutraceuticals Inc.(CSE: MYM) (OTCBB: MYMMF) announced that its subsidiary in Colombia, Colombia Organica S.A.S signed agreements in principle to cultivate both THC and CBD-rich cannabis with independent farmers for an initial five acres. The company said in a statement that cannabis will be cultivated by farmers who will be licensees under the existing Colombia Organica cannabis cultivation licenses. The first crops cultivated on the initial five acres will function as test crops with the intention to add subsequent acreage.
Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) said it received multiple Export Permits from Health Canada, which allow the Company to begin its first international cannabis product shipment. Aleafia said it expects to ship its branded medical cannabis oils in the next month, which will be distributed by Australian Licensed Producer CannaPacific Pty. Limited. Aleafia Health owns a 10 % equity stake in CannaPacific.
R&D pharmaceutical company FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) finalized its acquisition of Prismic in a deal valued at approximately $17.5 million or C$23.4 million. The company said that the deal will be satisfied by the issuance of approximately 102.7 million Class B subordinate voting shares in the capital of FSD Pharma at a deemed price of CAD$0.2275 (US$0.1704) per FSD Share.
In addition, FSD Pharma said it has agreed to assume approximately $3.05 million of outstanding Prismic long- and short-term liabilities. All of the outstanding Prismic stock options and warrants have been converted into options and warrants to purchase FSD shares, with the number and exercise price of such securities having been adjusted in accordance with the exchange ratio under the agreement.
In Other News
IONIC BRANDS CORP. (CSE: IONC) (OTC: IONKF) has signed an exclusive Heads of Agreement with Lifespot Health Limited (ASX: LSH) to develop and distribute Lifespot’s software and vaporizer technologies.
Lifespot, via its subsidiaries, Seng Vital and Bodytel GmbH, will provide its Bluetooth-enabled vaporizers, which can be used for recreational cannabis consumption, and the Bluetooth Bodytel™ platform, which collects and manages consumer data in a compliant record keeping system that is beneficial to consumers and meets privacy regulations. IONIC BRANDS and Lifespot, (collectively, the “Parties”) anticipate that a binding Joint Venture Agreement and Distribution Agreement will be completed within 60 days to formally implement the Joint Venture. The Joint Venture provides 12 months exclusive distribution of Lifespot vaporizers to Ionic in the United States and Canada and to the Ionic-owned brand, Astleys of London, in the United Kingdom. The Company may be granted additional territories over time as needed to meet market demand.