A new mega-merger deal was confirmed this week in the cannabis space.
Meanwhile, a Canadian cannabis producer announced more cuts to its operations, along with reductions in its staff, in a bid to improve its operational balance.
Keep reading to find out more cannabis highlights from the past five days.
Two cannabis producers announce intention to join forces
Under a newly announced merger deal, the two companies will join up, retaining the Tilray name and as well as Tilray’s stock symbol. However, Aphria CEO Irwin Simon will lead the entire operation, while Brendan Kennedy, CEO of Tilray, will become a board member.
According to estimations from the two companies, the resulting entity will hold a market valuation of C$5 billion and will post a combined C$900 million in pro forma revenue in 2020.
After the deal was confirmed, a panel of experts in the cannabis industry gathered to discuss the next steps for the market at large — but not before clamoring for more deals like the Aphria/Tilray tie up.
“(Tuesday’s) announcement is something that we’ve been suggesting for some time, (something) I think the industry needs and has been looking for, which is consolidation amongst the many operators that do sit in Canada,” Som Seif, founder and CEO of Purpose Financial, told an online audience.
The deal is expected to close sometime in Q2 of the 2021 calendar year.
Even more cuts seen in the Canadian cannabis space
An Aurora spokesperson confirmed to CBC that 214 workers will be dismissed for a proposed 75 percent reduction in operations at the company’s Aurora Sky facility in Edmonton, Alberta.
Miguel Martin, CEO of Aurora, said in a statement that some of the company’s previous cost-saving moves are already paying off. He said scaling back production at the Aurora Sky facility will make it so this space can transform into a “high-value cultivation center for our premium strains, and in turn, better align production with current demand for premium flower.”
After confirming an undisclosed agreement with its credit facility lenders, the company told investors that as of Tuesday (December 15) it held $450 million in cash.
Cannabis company news
- Halo Labs (NEO:HALO,OTCQX:AGEEF) shared an update on a financing program through which the company sold 134,454,000 shares for gross proceeds of C$7 million.
- Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWF) issued its Q3 financial results, highlighting C$1.2 million in positive adjusted EBITDA and sequential growth in revenue of 15.8 percent from the previous quarter.
- VIVO Cannabis (TSX:VIVO,OTCQX:VVCIF) confirmed that a selection of its medical cannabis products in Canada are now available through the Medical Cannabis by Shoppers online platform.
- AMP German Cannabis Group (CSE:XCX) sent a letter to shareholders evaluating its operating year highlights in the German cannabis market and what may be on the way in 2021.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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).