A Canadian cannabis company is celebrating a decision that will allow it to take full control of a third-party producer.
Also in the market this week, two companies confirmed their merger and told shareholders the details about the new resulting company.
Keep reading to find out more cannabis highlights from the past five days.
LP ownership showdown comes to an end
Village Farms International (NASDAQ:VFF,TSX:VFF) confirmed that Emerald Health Therapeutics (TSXV:EMH,OTCQX:EMHTF) shareholders have decided to allow Emerald to sell its stake in Pure Sunfarms, a licensed producer (LP) of cannabis.
On Thursday (October 29), both publicly traded companies announced the decision. Emerald CEO Riaz Bandali thanked investors for the decision as the company undergoes a rebalancing period. According to Emerald, a 98.65 percent majority of shareholders approved the transaction.
While the two companies originally joined forces to launch and oversee Pure Sunfarms, conflict ensued between Village Farms and Emerald as the two first disputed a wholesale agreement stipulation.
In September, the two companies finally came together to settle the ownership dispute, and it was agreed Village Farms would acquire the 41.3 percent stake in Pure Sunfarms owned by Emerald.
Two US cannabis companies close merger plan
Also on Thursday, Dixie Brands (CSE:DIXI.U,OTCQX:DXBRF) told the market its planned reverse takeover deal with BR Brands will complete at the end of October. The new company will be called BellRock Brands and will trade under the ticker symbol “BRCK.”
“Under BellRock management, the platform is poised for exponential growth, through both M&A and organic R&D, and is purposely built to cater to all of the industry’s fastest growing segments,” Andrew Schweibold, chairman of BellRock, said in a statement.
In terms of management, Dixie CEO Chuck Smith will retain the top position. “Our mission is to build the first national cannabis house of brands,” he said.
Cannabis company news
- IntelGenx (TSXV:IGX,OTCQB:IGXT) announced a planned supply agreement deal with Heritage Cannabis Holdings (CSE:CANN,OTCQX:HERTF) to provide filmstrip products with CBD, with distribution planned for the Canadian and Australian markets.
- Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) expanded the presence of its Select-branded stores to the Illinois state market. The company’s branded stores are now available in 15 states.
- Inner Spirit Holdings (CSE:ISH) added six new stores in October to its portfolio across Canada. The new stores are located in Ontario, Alberta and Newfoundland and Labrador.
- Liberty Health Sciences (CSE:LHS,OTCQX:LHSIF) reported its financial results for its second fiscal quarter of 2021. The company highlighted its 26 dispensaries in the Florida market and reported net sales of C$18 million for the period.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Heritage Cannabis Holdings is a client of the Investing News Network. This article is not paid-for content.
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.