It’s time for your Daily Hit of cannabis financial news for September 17, 2018.
On The Site
Coco Cola Looking At CBD Drinks
A report from Bloomberg stated that beverage giant Coca-Cola (KO) was keeping its eyes on the CBD beverage market and it could be considering Aurora Cannabis(ACBFF) as its partner. Neither party confirmed they were in talks.
Cannabidiol or CBD is the part of the cannabis plant that provides wellness benefits but does not give the consumer a psychoactive response. Green Market Report had heard for many months that Coca Cola was actually stockpiling CBD in a very hush hush operation, that could not be confirmed.
Auxly Cannabis Group
Auxly Cannabis Group Inc. (CBWTF) completed a strategic investment and a commercial rights agreement with Kaneh Bosm BioTechnology Inc. (KNHBF). The deal will give Auxly access to a significant and established portfolio of international cannabis licenses, assets and distribution networks.
Kaneh Bosm is changing its name to ICC International Cannabis Corp. but will continue to use its existing stock symbol. The shares should begin trading under the new name on September 20.
In Other News
GrowGeneration Corp. (GRWG) purchased HeavyGardens.com, an online seller of hydroponic and grow supplies. HeavyGardens.com is projected to generate over $5,000,000 in sales for GrowGen for fiscal year-end 2019. The company said that HG generates over 100,000 views per month.
Darren Lampert, Co-Founder a, d CEO, said, “The acquisition of HeavyGardens adds another sales channel for growers to find and shop with GrowGenertion. HeavyGardens has grown month over month by 10% and since its launch in July of 2017, it has quickly become a leader in the online sales of hydroponic supplies. GrowGen will leverage this online platform to increase its sales, add new commercial customers, as well as allow online shoppers to interact with our staff of over 100 professional growers and product specialists.”
Valens GroWorks Corp. (CSE: VGW) entered into an agreement with AltaCorp Capital Inc., under which AltaCorp Capital Inc. has agreed to purchase, on a bought deal basis, 12,820,513 units of Valens at a price of C$1.95 per unit representing aggregate gross proceeds to Valens of approximately C$25 million. AltaCorp. Is the co-lead underwriter and sole bookrunner, along with Mackie Research Capital Corp. as co-lead underwriter, and including Beacon Securities Ltd.
Pure Global Cannabis
Pure Global Cannabis Inc. (PRCNF) completed a brokered private placement offering of convertible debenture units of the Company, with a syndicate of investment dealers led by Eventus Capital Corp. and including PI Financial Corp., for gross proceeds of $10 million.
The net proceeds are intended to be used primarily to fund the acquisition of a 60% interest in Sativa Nativa S.A.S., a Colombian subsidiary of Avicanna Inc. If the acquisition is not completed, the Company intends to use the net proceeds of the Offering to fund alternate acquisition opportunities, organic growth initiatives and for general working capital purposes.
48North Cannabis Corp.
48North Cannabis Corp. (TSXV:NRTH), Canada’s leading licensed cannabis producer focused on the female health and wellness market, has released its operating and financial results for the fiscal year ended June 30, 2018. The net loss for the year was $12.8 million versus the previous year’s loss of $7.1 million. The company does have $12 million in cash on hand.
“Since receiving our cannabis sales license in late June 2018, we began to sell our cannabis to a number of other licensed producers,” continued Ms. Gordon. “The craft-like quality and carefully selected cultivars backstop the 48North brand and has resulted in competitive bids for our product. To diversify our revenue and leverage our brand beyond dried cannabis sales, our focus will be on the future legalization of extracted products like vape pens, cannabis-infused edibles, cosmetics and skincare.”
High Times Holdings Corp.
High Times Holdings Corp. announced that it had received subscriptions and funds in excess of $5 million and that this has enabled the company to complete a milestone for its Reg A+ offering. The deadline to invest with High Times has been extended to October 31, 2018.