Two Canadian marijuana companies have expanded a partnership to include an investment agreement and a supply deal.

On Tuesday (February 25), cannabis licensed producer (LP) Delta 9 Cannabis (TSX:DN,OTCQX:VRNDF) confirmed it would begin distributing the edible and infused products from the diverse line-up of Auxly Cannabis Group (TSXV:XLY,OTCQX:CBWTF), both online and through its four Manitoba stores.


Alongside the supply partnership, Auxly will be investing C$16.25 million in Delta 9 by way of a nearly six million share purchase in the LP.

The new supply and investment agreement arrives on the heels of an existing partnership between the two public firms for cannabis product development.

John Arbuthnot, CEO of Delta 9, said the products from Auxly have captured the attention of consumers. He particularly highlighted products under the Foray and Kolab Project brand names.

“Delta 9 was one of our first strategic partners, and we are so excited to reaffirm our partnership and joint commitment to developing a robust platform for the recreational cannabis market across Canada,” Hugo Alves, CEO of Auxly.

At the opening of Tuesday’s trading session, Delta 9 saw a minimal reaction to the supply deal and investment, while shares of Auxly dropped nearly 2 percent as of 10:23 a.m. EST.

The two partners have struggled in the open market given the state of the capital markets in relation to the marijuana industry, particularly in Canada where both companies are heavily focused at the moment.

After becoming CEO of Auxly last year, Alves told the Investing News Network (INN) that he viewed the launch of edible products in Canada, often referred to as the 2.0 stage of legalization in the country, as a reset for the entire industry.

Over the past six months, both companies have dropped in value by over 30 percent as the entire marijuana stock universe continues to struggle with critical issues of low sales and limited points of sale in specific Canadian markets.

Amid the increased pressure for cannabis firms, many players have been forced to make serious cuts in the workforce in order to better find the right operating balance. Bigger names in the industry, such as Tilray (NASDAQ:TLRY), Aurora Cannabis (NYSE:ACB,TSX:ACB) and most recently The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) have been forced to announce layoffs.

“(Companies now understand) they have to have tight operations (and) cost-effective operations to compete in this market where there’s a plethora of producers and really not as many consumers have switched over from the black market,” Nawan Butt, a portfolio manager at Purpose Investments, told INN in the wake of the increase in firings.

According to analyst data aggregator site TipRanks, Greg McLeish, an analyst with Mackie Research, holds a “buy” rating for both Delta 9 and Auxly with respective price targets of C$1.13 and C$1.32.

stock chart for auxly

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.

 BioHarvest Sciences Inc. (CSE: BHSC) (the “Company” or “BioHarvest”) invites its shareholders and the general public to join a Live Video Conference (“Webinar”) on Thursday, January 21st, 2021 at 2:00 PM Eastern Standard Time (11:00 AM Pacific Standard Time). Ilan Sobel, CEO of BHSC, will host the event and discuss progress on Bioharvest’s Growth Plan, which will include highlights of the 2020 milestones achieved, key business capabilities built, and will provide an important overview of 2021 Priorities.

The presentation will be approximately 35 minutes, followed by a live question and answer session.

Keep reading... Show less

World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the “Company” or “World-Class”), reports that it has sold its 50% interest in Cobra Ventures Inc. (“Cobra”), which sale included all funds previously advanced by World Class to Cobra, to the remaining shareholder of Cobra, for $2,500,000 in cash

An investment group led by Richard Goldstein retains 100% control of Cobra, and its senior secured debenture of Hydrx Farms Ltd. (“Hydrx”), acquired by Cobra in October 2020.

Keep reading... Show less

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”), an innovative global cannabinoid company, today announced that Kurt Schmidt, President and Chief Executive Officer, will speak at the 24th Annual CIBC Western Institutional Investor Conference on Friday, January 22, 2021 at 4:10 p.m. EST.

A recording will be available on the Investors section of the Company’s website at https://ir.thecronosgroup.com/events-presentations .

Keep reading... Show less
  • Disease control of root-rot Aphanomyces zoospores in laboratory tests.
  • Outstanding Efficacy: 100% control at economic application rates within 24 hours.
  • Aphanomyces is a soil-borne root-rot disease that destroys peas, lentils, and legume crops.

MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) (FSE: 0C0) (the “Company”, “MustGrow”) is pleased to announce successful laboratory test results of its patented mustard-derived biopesticide on Aphanomyces euteiches zoospores (“Aphanomyces”) via an independent third party facility: 100% control at economic application rates within 24 hours. MustGrow will now advance to larger scale greenhouse and field tests. Study results and applicability are patent-protected under MustGrow’s existing suite of issued patents.

MustGrow’s remarkably safe and effective organic biopesticide is plant-based – harnessing the mustard seed’s natural defense mechanism to control diseases, pests, and weeds with an organic food-grade biopesticide.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or “the Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced the hiring of CPG industry veteran Ty Gent as the Company’s new Chief Operating Officer (“COO”). As COO, Gent will be responsible for operational consistency and efficiency across markets and implementation of structural enhancements to facilitate scaling.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210119005322/en/

Keep reading... Show less