On Tuesday (June 19) two Canadian cannabis companies gave their shareholders a progress update on their respective expansions for Australian ventures.
The Australian cannabis market has grown at a remarkable pace so far in 2018 with multiple Canadian companies announcing expansions into the jurisdiction.
This market is currently only legal for medical cannabis with the patient population estimated at over 30,000 according to research firm Deloitte in 2016.
Cronos offers licensing update for Australian division
Cronos Group (NASDAQ:CRON,TSX:CRON) shared with its shareholders the Australian joint venture created earlier this year by the company, named Cronos Australia, obtained a manufacturing license from the Australian Office of Drug Control.
The license increased the offerings of Cronos Australia as the company can now legally manufacture cannabinoid-based products.
“This is a key step for expanding our research and product development while also allowing us to produce the full scope of cannabis products for the region,” Mike Gorenstein, CEO of Cronos Group said in a statement.
Rodney Cocks, CEO of the Australian division, said he sees the venture in a solid position to even expand its outreach and export cannabis product to New Zealand and the Southeast of Asia.
Cronos’ Canadian stock finished the day C$9.11 per share, a 2.13 percent increase from its previous close, while the company’s Nasdaq shares have risen 1.18 percent to reach a US$6.86 price per share.
On the analyst research aggregator site TipRanks, Cronos’ Canadian stock is currently split on opinions with one analyst, Matt Bottomley from Canaccord Genuity, recommending investors to sell, while Martin Landry’s latest report still has a “Buy” recommendation for investors.
A technical analysis summary on charting tool TradingView reveals a “Buy” recommendation as well.
Update from an Australian venture overseen by a Canadian operator stock
Investment company LGC Capital (TSXV:LG) announced Little Green Pharma, a private Australian company holding a license to grow medical cannabis, received a positive result from a mandatory inspection from a designated laboratory for medical cannabis tests.
This is one of the last steps before Little Green Pharma is allowed to sell its medical cannabis products. According to LGC, the products from the Australian producer will be tested for stability which the company estimates require close to a month and a half.
“The group to benefit most from this are patients and we are proud to be able to have our unique product offering available in August 2018,” Fleta Solomon, Little Green Pharma’s managing director said in a statement.
Little Green was also confirmed for a renewal of its medicinal cannabis license for the next two years by the Office of Drug Control (ODC) in the country, a development which John McMullen the CEO of LGC called a success. The new license will not expire until May 2020.
After completing its first ever harvest in April, the Australian producer is expecting its second harvest in eight to 10 weeks.
At the end of Tuesday’s trading session, LGC’s share price had increased 4.55 percent in value, reaching a price of C$0.12 per share.
The first half of 2018 has been volatile for LGC’s stock. Earlier in the year, the C$45.21 million market cap company reached some of its highest share price in years, hovering close to a C$1 price per share. However, since then the stock has seen a steady decrease up to its most recent closing price of C$0.11.
LGC increased its interest in the Australian venture to 14.99 percent by purchasing 2,283,495 shares of Little Green Pharma, at a price of AU$1.16398 per share. The total cost of the transaction, a little over C$2.6 million, was paid by way of issuing 5 million shares of LGC at a deemed price of C$0.53, the company’s closing price on January 19, 2018.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.