It’s time for your Daily Hit of cannabis financial news for July 22, 2019.
On The Site
The Flowr Corp.
The Flowr Corp. (TSXV: FLWR.V) was originally thought to be listing shares last week on the NASDAQ Marketplace, but that was shelved. Instead, the company announced on Monday that it agreed to sell 10,610,000 units of the company at a price of C$4.10 per unit for approximately C$43,501,000 in proceeds.
The underwriters were led by GMP Securities L.P. The Flowr Corp. also agreed to an over-allotment option to purchase and additional 1,591,500 shares, which would bring in an additional C$6,525,150 in gross proceeds. If that happens, the gross proceeds will be C$50,026,150. The deal is expected to close on August 8, 2019.
Next week, the Senate will be holding a hearing on July 23 by the Committee on Banking, Housing and Urban Affairs. The Senate is making a move following a House cannabis banking bill that cleared that chamber’s Financial Services Committee with a bipartisan vote in March. Readers can follow the action on that bill for free on the Green Market Report under the Legislation tab.
That piece of legislation now has 206 cosponsors, almost half of the House while the Senate legislation has only 32 out of 100 senators signed on. The conservative politicians would prefer to stand down while cannabis is still federally illegal, but supporters of the legislation argue that forcing the industry to a cash system encourages theft and diversion.
Under a new policy announced by the Northam Administration, the Commonwealth of Virginia will soon officially authorize hemp processors to produce hemp extracts for human consumption.
For months, Virginia hemp farmers and processors have been operating under a cloud of regulatory uncertainty despite the enactment of legislation last March authorizing commercial hemp production, including extracts, in Virginia.
On July 16, the Virginia Department of Agriculture and Consumer Services (VDACS)announced that Governor Northan has directed VDACS “to treat hemp-derived extracts intended for human consumption as approved food additives and to place qualifying Registered Industrial Hemp Processors under food safety inspection so that inspected and approved processors may manufacture a hemp-derived extract intended for human consumption.”
In Other News
CannTrust Holdings Inc. (TSX: TRST)( NYSE: CTST) announced that as a result of months of discussions, CannTrust has agreed to waive the exclusivity provision under the Brokerage Agreement between CannTrust and Kindred Partners Inc. It is expected that this revised arrangement will over time allow CannTrust to reduce the expenditures incurred by CannTrust under the Brokerage Agreement.