As the cannabidiol (CBD) from hemp market continues to entice cannabis companies, a new partnership for this market was created between two public players in the space.
Invictus MD Strategies (TSXV:GENE), an owner of a Canadian licensed producer, confirmed on Monday (January 7) it will form a joint venture with relatively newcomer CannAmerica Brands (CSE:CANA), a cannabis brands company pursuing the US market.
The two will create this new venture alongside CBDistribution Company (CBDC).
According to the details of the partnership, Invictus will provide a C$5 million credit set to be used as the funding for working capital and operations.
George Kveton, CEO of Invictus, said this new partnership will offer his company a chance to expand beyond the Canadian cannabis market.
CannAmerica is set to participate in the extraction and post processing segment of the production with expertise on dosing and the formulation of concentrates.
“[CannAmerica] will contribute operational expertise, will source the property, extraction equipment, staffing and manage operations,” said the company. “CBDC will contribute the sourcing of Hemp Biomass procurement, branding, marketing and the commercialization of the finished product, including but not limited to CBD Isolate.”
This move is boosted by the signing of a new US$867 farm bill that legalized the hemp industry in the US. Cannabis companies are starting to target the CBD derived from hemp market thanks to this new bill.
A CNBC report indicated the approval of this bill could create a US$20 billion industry by 2022.
Dan Anglin, CEO and co-founder of CannAmerica, said this move accelerates the timetable for his company to come into the CBD-derived from hemp market in the US.
CannAmerica went public on the Canadian Securities Exchange in October; since then, the share price of the company has declined 17.65 percent.
Following Monday’s announcement, the market deemed the move favorable for Invictus, which saw its stock raise in value 7.14 percent. Shares finished the day at a price of [C$price].
However, CannAmerica declined sharply during the trading session by 10.71 percent to a price of C$0.75.
The passing of the farm bill has opened the floodgates for companies in the space to set out roadmaps for plans in this emerging marketplace.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Invictus MD Strategies is a client of the Investing News Network. This article is not paid-for content.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).