During the past trading week (December 2 to 6), a cannabinoid-based drug manufacturer in Canada obtained critical status for one of its candidates in the US.
An executive at a Canadian marijuana producer was forced to address the volatility surrounding his company after a new acquisition was confirmed, and Canopy Growth (NYSE:CGC,TSX:WEED) unveiled its lineup of edible and infused products, set to launch later this year.
Here’s a closer look at some of the biggest cannabis news over the week.
Cannabis drug maker gets orphan drug designation
Tetra Bio-Pharma (TSXV:TBP,OTCQB:TBPMF) secured a critical orphan drug designation from the US Food and Drug Administration (FDA) for its delta-9-tetrahydrocannabinol (THC) drug as a treatment for hepatocellular carcinoma.
“This second (orphan drug designation) for cannabinoids demonstrates our innovation and successful drug development program that will soon include hepatocellular carcinoma,” Guy Chamberland, CEO and chief regulatory officer of the company, said.
The executive explained that the company will now move forward with a modified formulation of its drug for hepatocellular carcinoma as part of a clinical trial in Q1 2020.
Over the past trading week, shares of the company jumped nearly 50 percent thanks in large part to the drug classification from the regulatory authority.
Lineup of Cannabis 2.0 products comes into focus
Canopy Growth held an event in Toronto to unveil its line of infused and edible products as part of the second wave of marijuana legalization in Canada.
“It’s the first time that the legal industry has had an opportunity to compete with the black market … while allowing us to create new products that we believe will disrupt not only the cannabis industry, but the beverage alcohol industry as well,” Canopy Growth President Rade Kovacevic said in a presentation.
The executive told the Investing News Network (INN) that the plan is for the company to launch 30 products as part of the official debut of these items in Canada, while 20 other products are being developed for launch in 2020.
For a full breakdown of the new products and closeup pictures of the actual packages, click here to read INN’s full dispatch.
Brazil is inching closer to opening up its medical cannabis market. This past week, the country’s National Sanitary Surveillance Agency (Anvisa) unveiled its regulation model for this proposed market.
“Until now, the rules to access medical cannabis in Brazil were very restrictive, and this … has the objective to ease access,” Alfredo Pascual, an international analyst at Marijuana Business Daily, told INN.
Canadian pharmacy Shoppers Drug Mart, a Loblaw Companies (TSX:L,OTC Pink:LBLCF) division, confirmed it is expanding the availability of its online medical cannabis sales portal to now include British Columbia, Prince Edward Island, New Brunswick, Manitoba, Saskatchewan, Nova Scotia and Newfoundland and Labrador.
“We expanded Medical Cannabis by Shoppers nationally to provide enhanced service to more patients so they can feel empowered to access medical cannabis through the medical market with the guidance of healthcare professionals,” said Jeff Leger, president of Shoppers Drug Mart.
The program offers patients products from 12 marijuana licensed producers in Canada.
After announcing a brand new acquisition, shares of WeedMD (TSXV:WMD,OTCQX:WDDMF) went down a tumultuous path. In response to the volatility, CEO Keith Merker wrote a letter to shareholders in an attempt to clarify the situation at the company before and after the transaction was made public.
“Capital has become scarce and expensive, and the adult-use market has been slower to ramp and at thinner margins for licensed producers than many originally anticipated,” Merker wrote to investors in his letter. “These market pressures have forced us, like many others, to reevaluate our business.”
WeedMD is pursuing a C$78 million all-share deal for Starseed Holdings, a fellow cannabis producer in Canada. The deal also includes a C$25 million investment into the resulting company from Starseed’s largest backer.
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.
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.