It’s time for your Daily Hit of cannabis financial news for November 5, 2018.
On The Site
Aurora Cannabis Inc. (ACB) has made a $20 million investment in the emerging adult-use cannabis company Choom Holdings Inc. (OTCQB: CHOOF). The conversion price is approximately C$1.25 per share. Aurora has also secured the ability to purchase up to 40% of the company at a price of C$2.75 a share.
In addition to the investment in the company’s cannabis products, Choom is also developing a chain of retail stores with a “strong focus on elevated customer experiences.” In a company statement, Choom said it has the rights to open 45 retail stores across Western Canada, granted these stores are subject to local approvals. So far, 45 applications have been submitted, along with 27 development permits and 18 building permits received from various towns.
Golden Leaf Holdings
Golden Leaf Holdings Ltd. (OTCQB: GLDFF) announced financial results for the fiscal third quarter ending September 30, 2018. The company delivered quarterly revenues of US$5.1 million for Q3 2018, compared to US$3.1 million for Q3 2017. The net loss for Q3 2018 was $5.5 million or $0.01 per share loss, compared with a net loss of $3.2 million or $0.01 per share loss, for Q3 2017. Net loss for Q3 2018 increased primarily attributed to the effect of the changes in fair value of non-cash assets and debt, specifically, biological assets and warrant liability.
Golden Leaf also announced it was merging with Terra Tech as the CEO William Simpson will step down as CEO to become President and Derek Peterson will take over as CEO.
In Other News
Green Growth Brands closed on an additional private placement investment of approximately C$30.5 million with a strategic partner, at a post-transaction consolidation price of C$2.00 per share. According to the statement, the subscriber further intends to exercise approximately C$24.5 million of common share purchase warrants of GGB issued under the private placement, with each exercisable on the same consolidation price of C$2.00 per share. The subscriber will be required to make payment of the C$24.5 million exercise price within 30 days. Assuming exercise of and full payment for the warrants, the total funds raised by GGB following the announcement of the Transaction will exceed C$140 million.