During the past trading week (June 24 to 28), the state of Illinois announced the start date for its recreational marijuana program.
The creation of a new league of marijuana corporations seeking to protect their interests made headlines, while an international shipping announcement also caught attention.
Here’s a closer look at some of the biggest news during last week’s trading period.
Illinois sets date for recreational marijuana sales
The state of Illinois announced the launch of its adult-use cannabis program after Governor J.B. Pritzker signed a legalizing bill on Tuesday (June 25).
Illinois is now the 11th state to legalize adult-use marijuana use, with sales beginning in 2020. As with other emerging cannabis markets in the US, a variety of publicly traded multi-state operators will vie for a stake in this market.
Marijuana Business Daily indicates that Illinois’ recreational program will reach a value of US$2.5 billion per year.
Canadian cannabis leaders join forces for business interest advocacy
As a way to protect the business interests of the Canadian cannabis industry, the Canadian Chamber of Commerce unveiled a new association on Tuesday.
The National Cannabis Working Group will seek to advocate for and participate in the development of policies affecting the market.
The initial members of the group include some of the leading public cannabis producers. Ryan Greer, senior director and cannabis policy lead for the Canadian Chamber of Commerce, told the Investing News Network that the door is open for new members to join.
“There’s … an opportunity to continue to educate elected officials, those who may be putting their names on the ballot for the federal elections this fall, federal servants and regulators and the broader public … (about) what the economic potential for this sector can be if we get a lot of (marijuana policies) right,” Greer said.
Greg Engel, CEO of Organigram Holdings (NASDAQ:OGI,TSXV:OGI), told Yahoo Finance Canada that this new group will seek to protect the Canadian market and its stakeholders from growing business threats.
“What I really do see as a threat to the Canadian industry is changes in the US from a regulatory framework perspective,” Engel said. “We’ve got an opportunity to build on the advantage we have in the near-term.”
Tilray (NASDAQ:TLRY) confirmed on Tuesday that it has started importing “cannabis oral solutions in bulk” from Canada to its UK-based operation. The marijuana producer informed shareholders that it will be able to serve patients in the European nation.
Sascha Mielcarek, managing director of Tilray Europe, said more countries on the continent are recognizing and getting up to speed with the medical cannabis market.
“Regulations are progressing as more and more countries across Europe are recognizing the benefits of medical cannabis and its potential to improve patients’ quality of life,” Mielcarek said.
The note says the company could see losses before interest, taxes, depreciation and amortization (EBITDA) of C$314 million and C$77 million in 2020 and 2021, respectively, due to current operating costs seen by the firm.
“We believe the operating expense needed to ramp manufacturing and processing capabilities in fiscal 2020 could be higher than expected,” the BMO analysts wrote.
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.