In the marijuana space this week, two of Canada’s big-name cannabis producers provided updates on their respective beverage businesses.

The opportunity attached to cannabis drinks has fluctuated from mere fad to potentially key for the industry, and now Aphria (NASDAQ:APHA,TSX:APHA) and Canopy Growth (NYSE:CGC,TSX:WEED) are ready to share more about their plans.

Keep reading to find out more cannabis highlights from the past five days.


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Aphria and Canopy make beverage moves

In an unexpected move, Aphria has elected to acquire SweetWater Brewing Company in a deal that according to the producer is worth US$300 million. The Aphria management team wasn’t shy in confirming this acquisition was done in anticipation of an entry into the US market.

“We will establish and grow our US presence through SweetWater’s robust, profitable platform of craft brewing innovation, manufacturing, marketing and distribution expertise,” Irwin Simon, Aphria’s chairman and CEO, said in a statement.

The executive explained that Aphria plans to leverage its existing brand portfolio with the sole intention of building awareness ahead of potential legalization in the country, which would allow it to enter the market.

Freddy Bensch, SweetWater’s founder and CEO, said his firm has brands that complement Aphria’s cannabis business. The brewing company has moved ahead in experimenting with craft brews using terpenes and hemp flavors to recreate “flavors and aromas of popular cannabis strains.”

Meanwhile, fellow Canadian producer Canopy Growth indicated this week that it plans to upsize its offerings with a new lineup of CBD drinks called Quatreau. The lineup will include four different flavors, and will be the first primary CBD drink collection from Canopy Growth.

“We created Quatreau as an alternative to sugary, caffeinated beverages or even alcohol,” David Klein, CEO of Canopy Growth, said in a statement.

Earlier this year, analysts at CIBC Capital Markets issued a note to investors saying they don’t expect to see cannabis drinks evolve into a leading marketplace item for consumers until regulations change around their availability. Until then, the analysts believe these beverage offerings will remain a niche product.

Cannabis company news

  • TerrAscend (CSE:TER,OTCQX:TRSSF) went ahead and released preliminary results from its latest quarter, indicating net sales of C$51 million.
  • PharmaCielo (TSXV:PCLO,OTCQX:PCLOF) upsized a planned placement offering from C$5 million to C$10 million. The company will issue 20 million shares at a price of C$0.50 each.
  • The Valens Company (TSX:VLNS,OTCQX:VLNCF) confirmed that its subsidiary has obtained wholesale licenses to begin offering medical cannabis products in Australia.
  • 48North Cannabis (TSXV:NRTH) released year-end results for its 2020 fiscal year and provided guidance for the first quarter of its 2021 fiscal year.

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.

  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

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  • Q3 Systemwide Pro Forma Revenue increased 18% quarter-over-quarter to $22.3 million , 170% year-over-year – Company became cash flow positive from operations in August
  • Company sale leaseback transaction with Innovative Industrial Properties scheduled to close within two weeks. As a result of close, together with proceeds from the recently closed bought deal financing, the Company will have $16 million of cash and $43 million in long-term debt
  • Company is in the process of acquiring acreage to construct up to 210,000 square feet of flowering canopy and supporting manufacturing facility in Cook County, Illinois to exponentially increase capacity in state
  • Initial guidance for 2021 with Systemwide Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million
  • The Company’s existing projects at maturity represent a long-term revenue and EBITDA opportunity upwards of $650 million and $250 million

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) today announced its financial results for the third quarter of 2020. All financial information is presented in U.S. dollars unless otherwise indicated.

Third Quarter 2020 Financial Results Highlights

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Shareholders with losses exceeding $50,000 are encouraged to contact the firm

The Law Offices of Frank R. Cruz reminds investors of the upcoming December 1, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Aurora Cannabis, Inc. (“Aurora” or the “Company”) (NYSE: ACB ) securities between February 13, 2020 and September 4, 2020 , inclusive (the “Class Period”).

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Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce the launch of preclinical research studies using psilocybin and N-Acetylcysteine (“NAC”) for the treatment of mild traumatic brain injuryconcussion (“mTBI”) with post-traumatic stress disorder (“PTSD”). The study is in collaboration with a multidisciplinary team of scientists and physicians at the University of Miami Miller School of Medicine under the lead of Michael E. Hoffer, M.D., professor of otolaryngology and neurological surgery.

NAC has been shown to be safe and efficacious in a phase I human clinical study in treating military personnel who had suffered mTBI. The initial research focus is to demonstrate the safety and efficacy of the combination of psilocybin and NAC using broadly accepted rodent models. Final results are expected in 2021. Once this is established, more specific work can examine dose response, medicine uptake, and medicine levels. The research team at the Miller School of Medicine has conducted prior studies involving NAC with mTBI and has a license from the United States Drug Enforcement Administration to conduct research using Schedule I controlled substances, which includes psilocybin.

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Aphria Inc. (” Aphria “, ” we ” or the ” Company “) (TSX: APHA) (NASDAQ: APHA), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, announced it has closed the accretive, strategic acquisition (the ” Acquisition “) of  SW Brewing Company, LLC (” SweetWater Brewing Company ” or ” SweetWater “), one of the largest independent craft brewers in the United States (“U.S.”) based on volume. Beginning with the flagship 420 beverage offerings, SweetWater has created an award-winning lineup of year-round, seasonal and specialty beers, a portfolio of brands closely aligned with a cannabis lifestyle.

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