Following the release of its fiscal Q1 2020 earnings report on Tuesday (August 27), Canopy Rivers (TSXV:RIV,OTC Pink:CNPOF) earned a glowing review from CIBC Capital Markets.

John Zamparo, equity research analyst with CIBC Capital Markets, reaffirmed that the Canadian company remains his top pick in the sector and assigned a 12 to 18 month price target of C$7.

The cannabis company, an investment division launched by Canopy Growth (NYSE:CGC,TSX:WEED), reported a net loss of C$2.9 million for its most recent quarter.

The analyst said he has rated the stock an “outperformer” because of the company’s approach when it comes to capital allocation, its supply contracts and its valuation, which he said is at an all-time low.

Zamparo noted that, despite the third straight monthly double-digit increase in sales for the cannabis space, there’s been a drop in the performance for some of the players. To explain why this is, the analyst said, “(The industry has) rarely traded on fundamentals.”

Canopy Rivers informed investors it expects to see continuing losses due to the development of its investments across the global cannabis market.

“As these equity method investees continue to ramp-up operationally over the coming quarters, management expects to continue to recognize its share of net losses during the remainder of the fiscal year,” the company said in a statement.

Narbe Alexandrian, president and CEO of the firm, also highlighted the development of its investee PharmHouse, which signed a supply agreement with Canopy Growth in May.

Despite its losses, Canopy Rivers CFO Eddie Lucarelli said the company holds strong potential to maintain its position moving forward. In a statement, he said:

“While some of our financial results are linked to the public markets and therefore subject to volatility, we believe that several factors — including significant business catalysts within our portfolio, operational improvements that translate into increased production at our royalty investees, and an operating expense base that is low by cannabis sector standards — position us well to create value for our shareholders in the long term.”

Shares of Canopy Rivers fell after its results release. The decline of just over 5 percent resulted in the company opening Wednesday’s trading session at a price per share of C$2.22. As of 3:48 p.m. EDT on Wednesday, shares of Canopy Rivers were trading at C$2.20, indicating a drop of almost 1 percent.

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 (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.

Keep reading... Show less

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.

Keep reading... Show less

Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.

Keep reading... Show less

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”).

Keep reading... Show less

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.

Keep reading... Show less