It’s time for your Daily Hit of cannabis news for May 4, 2018.
May the 4th be with you.
Aurora Cannabis, MedReleaf
The rumor mill was pretty heated with talk of a big deal between Aurora Cannabis (ACBFF) and MedReleaf (MEDFF). Both company stocks were halted as trading levels entered the “unusual trading” territory. Both companies issued statements saying that there was no deal on the table. Aurora said it engages in such talks with many companies and had even talked to MedReleaf, but there was no deal this time. Aurora is number two in the Canadian marketplace and a combination with MedReleaf would put it within shooting distance of Canopy Growth.
CannaRoyalty Corp. (CNNRF) announced that its wholly-owned California-based distribution subsidiary, Alta Supply, generated record monthly revenue of ~US$840,000 in the month of April 2018.
The company said in a statement that the number of licensed dispensaries in California decreased from December 2017 to January 2018 as enhanced state-wide regulation was implemented concurrently with the transition to a full recreational adult-use market. As a result, fewer licensed dispensaries exist in the state today than in December 2017. This is a short-term phenomenon as operators work towards compliance. Because of this rapid market reset from December 2017 to January 2018 Alta Supply and RVR experienced a year-over-year decline in revenue at the beginning of 2018 along with their peers. However, as the April revenue figures reported today demonstrate, both companies have steadily and powerfully grown revenue even over a lower dispensary base.
Isodiol International Inc.
Isodiol International Inc. (ISOLF) announced that it has signed a Letter of Intent with Zenabis Ltd. one of Canada’s largest Licensed Producers, to import CBD isolate as an Active Pharmaceutical Ingredient, into Canada from Isodiol’s GMP-certified production facility in the United Kingdom. Marcos Agramont, CEO of Isodiol, stated: “Isodiol is pleased to announce another supply agreement for its highest quality, pharma grade CBD isolate. Zenabis’s team is working on various R&D projects focused on developing new products and applications, and we are pleased to be a key partner in enabling this R&D process.”