During the past trading week (January 20 to 24), a Canadian cannabis producer announced a massive, multi-million dollar influx of cash from a mysterious benefactor.
TMX Group (TSX:X) unveiled a new index that tracks the performance of the biggest cannabis companies on its exchanges, and a pharmaceutical company that specializes in cannabinoid-based medicine enjoyed some major wins for product distribution across Canada.
Here’s a closer look at some of the biggest cannabis news over the week.
Aphria rakes in C$100 million from institutional investors
The Friday (January 24) announcement said the unnamed institution has agreed to purchase over 14 million units of Aphria at a price of C$7.12 per unit. Each unit is made up of one common share and a half of a purchase warrant. With a warrant, the investor will be able to buy additional common shares at C$9.26 a piece for up two years after the deal closes.
Aphria said it now boasts a cash balance pro forma of almost C$600 million. The company plans to use the new funding to finance international expansion, which has also been helped by the recent receipt of a European Union Good Manufacturing Practices certification from the Malta Medicines Authority for its facility in Leamington, Ontario, on Wednesday.
The money will also go towards working capital and other general corporate needs.
“Given the strength of our leadership team, the continued execution of our strategic plan and the robust opportunities we have for growth in the global cannabis industry, we were able to secure this additional capital from a single investor, a significant endorsement of Aphria in these market conditions,” said CFO Carl Merton in a press release.
The offering, subject to customary closing conditions and regulatory approval, is expected to close on January 31.
At the market open on Friday, Aphria prices were at C$7.85 in Toronto.
S&P/TSX Cannabis Index launches on TSX
The new exclusive index tracks 15 of the largest companies listed on the TSX or the TSX Venture Exchange (TSXV) that are “significantly involved in the cannabis market,” TMX Group said in a press release.
Firms on the list run the gamut from juggernauts like Canopy Growth (NYSE:CGC,TSX:WEED) and Aurora Cannabis (NYSE:ACB,TSX:ACB) to smaller companies focused on specialized sections of the supply chain like PharmaCielo (TSXV:PCLO,OTCQX:PCLOF) and MediPharm Labs (TSX:LABS,OTCQX:MEDIF).
The S&P/TSX Cannabis Index follows shortly after TMX launched the S&P/MX International Cannabis Index (TSX:MCAN) late last year. The global version of the index features 22 cannabis companies that list on the New York Stock Exchange and the NASDAQ, as well as the TSX exchanges in Canada.
On Friday, the S&P/TSX Cannabis Index opened at C$230.23.
Tetra Bio Pharma prepares for over-the-counter product distribution in Canada
Consumers in Canada will soon be able to get their hands on cannabinoid-based medicine without a prescription.
The distribution update comes after Tetra was granted two over-the-counter drug identification numbers from Health Canada earlier in January.
Prep work for the company leading up to its nation-wide distribution goals have included locking down undisclosed contracts with manufacturing and sales organizations to ensure the products are quickly developed and marketed.
The Ontario-based drug maker also told investors of a C$10 million bought deal offering on Tuesday (January 21). This round of financing is being completed by investment firm Echelon Wealth Partners, who has agreed to purchase almost 19 million units of Tetra for C$0.53 a piece.
An article from MarketWatch found that California-based MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF) is in a scramble for cash as it offers retailers shares of its company as payment for cannabis products.
In an email sent to MarketWatch, MedMen CFO Zeeshan Hyder confirmed that the company has been working with vendors on adjusting payment terms, which has included offering class B non-voting shares in a payment plan to clear outstanding debts.
PharmaCielo signed a distribution deal to send its cannabidiol (CBD) isolate and CBD oil across Europe with the Quebec-based CBD Export Global. As a part of the three year deal, the first shipments are expected to be sent out sometime in 2020.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: MediPharm Labs is a client of the Investing News Network. This article is not paid-for content.
In the evolving rush of mergers and acquisitions (M&A) in the Canadian cannabis market, Canopy Growth (NASDAQ:CGC,TSX:WEED) announced it will acquire The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) in a deal worth approximately C$435 million.
Meanwhile, a cannabis operator in the US confirmed this week that it will receive a financial boost from a partner to solidify its position in the burgeoning Pennsylvania state market.
The Board of Directors of Aphria Unanimously Recommends Shareholders Vote “For” the Arrangement
Aphria to Host Special Meeting of Shareholders on Wednesday, April 14, 2021 to Approve Proposed Aphria-Tilray Business Combination
Love Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and Hemp product suppliers, announces that as part of the equity fundraise announced yesterday, Antony Calamita and Andrew Male, Directors of the Company, subscribed for 285,714 Ordinary Shares and 1,428,571 Ordinary Shares respectively. The subscriptions are at a price of 3.5 pence per ordinary share for a total of £60,000. Following these subscriptions, Antony Calamita is now interested in 54,385,714 Ordinary Shares, representing 8.61% of the Company’s share capital as increased by the fundraising, and Andrew Male is now interested in 6,138,196 Ordinary Shares, representing 0.97% of the Company’s issued share capital as increased by the fundraising
Further, the timetable for receipt of applications under the Broker Option, which was also announced yesterday, has been extended until 5:00 pm 9 April 2021 to capture additional interest which was unable to be completed yesterday.
Revive Therapeutics Ltd. (“Revive” or the “Company”) (CSE: RVV, USA: RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, would like to provide the following dial-in information for the Company’s upcoming Annual and Special Meeting (the “Meeting”) scheduled to be held at 11:00 a.m. Eastern Daylight Time on April 12, 2021. Shareholders and proxyholders may access the Meeting via teleconference by dialing 647-723-3984 or 1-866-365-4406 from Canada or the United States, then entering participation code “8487744” followed by the pound (“#”) sign.
In consideration of the COVID-19 pandemic and the recent restrictions imposed by the Ontario Provincial Government, shareholders and proxyholders will only be able to attend the Meeting via teleconference and will not be permitted to attend the Meeting in person at the address provided on the Notice of Annual and Special Meeting of Shareholders.
Gage Cannabis Announces Exclusive Partnership With Blue River to Bring Award-Winning Cannabis Extracts to Michigan
Gage Growth Corp. (“Gage” or the “Company”) (CSE:GAGE), a leading high-quality craft cannabis brand and operator in Michigan, announced today that it has signed an agreement with Blue River™ Extracts & Terpenes (“Blue River™”) to bring the brand’s award-winning solventless technology and other trademark branded products to the state’s medical patients and cannabis consumers. The Company will have exclusive rights to Blue River™’s premium product offerings in Michigan.