On Thursday (October 4) new details were revealed on the joint venture between a Canadian licensed producer (LP) and beverage company Molson Coors Brewing (NYSE:TAP;TSX:TAP).

The alcohol company and HEXO (TSX:HEXO) unveiled the partnership between the two as it seeks to develop cannabis infused beverages for the recreational market. The joint venture, called Truss, will have former Molson executive Brett Vye act as CEO.

“When consumable cannabis is legalized in Canada, Truss will be ready to make its mark as a responsible leader in providing high-quality beverages for the Canadian consumer,” Vye said in a press release.

The joint venture was first announced in August, with Molson taking a 57.5 percent controlling stake and HEXO, formerly known as Hydropothecary, gaining the remaining 42.5 percent.

Sebastien St-Louis, CEO of HEXO, will get a seat in the board of directors. As part of the transaction between the two companies closing, HEXO issued 11.5 million warrants to the Canadian division of Molson. These shares are excerisable to buy one HEXO share for a price of C$6.

“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages,” Frederic Landtmeters, president and CEO of Molson Coors Canada, said when the partnership was first unveiled.

These infused beverages have become a trend item of investment from cannabis producers and now beverage companies join other established seeking entries into the emerging cannabis space.

On Tuesday (October 2), Hugh Johnston, chief financial officer (CFO) of PepsiCo (NASDAQ:PEP) said the beverage company will be taking a critical look at the cannabis market. However, no deals were in place at the time.

The Coca-Cola Company (NYSE:KO) was forced to issue a statement in response to a report from BNN Bloomberg showing the soft drinks giant was in the final stages of a deal with Aurora Cannabis (TSX:ACB).

US Election 2020 and Cannabis

Investing in cannabis? Read what experts have to say about cannabis and the US Election!

“Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time,” Coca-Cola said.

HEXO faces criticism from large investor

In September a letter from Riposte Capital, a company claiming to be the second largest public shareholder of HEXO, was made public demanding the company take critical steps to increase the value of its stock.

The letter even suggested for management to consider selling the company. In its letter, Riposte Capital estimated HEXO’s joint venture “could be worth multiples of the current market capitalization of HEXO today.”

One of the suggestions for action to take by HEXO included obtaining a “meaningful direct investment” from the alcohol partner. “In lieu of your pending proposal to issue warrants with a $6 strike, consider a direct placement for up to 20 percent of the equity at current levels in order to underpin the balance sheet and solidify distribution partnership,” the letter indicated.

Investor takeaway

Infused beverages, alongside edibles, will not be allowed in Canada at the start of legalization on October 17. However, the interest from these alcohol companies is clear to form partnerships and, in the case of Molson, participate in the creation of a new product.

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.

US Election 2020 and Cannabis

Investing in cannabis? Read what experts have to say about cannabis and the US Election!

Codebase Ventures Inc. (“Codebase” or the “Company”) (CSE:CODE)(FSE:C5B)(OTCQB:BKLLF) announces it has completed a first closing of a non-brokered private placement of up to $2,000,000. The Company accepted subscriptions for 13,740,000 units at a price of $0.05 per unit, for gross proceeds of $687,000. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at $0.075 for a period of two years from the date of closing, subject to the option of the Company to accelerate the expiry date in the event that its shares trade at $0.15 or more for 10 consecutive days

The Company paid $18,000 in cash and issued 160,000 warrants on the same terms as noted above to qualified finders. Securities issued pursuant to this tranche are subject to trading restrictions until April 5, 2021. The Company is expecting to complete the financing by December 16, 2020. Proceeds will be used for working capital and to fund future investments.

Keep reading... Show less

Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”), announces that further to its press release dated December 3, 2020, the TSX Venture Exchange has approved the repricing of 19,405,804 warrants of the Company that were originally issued on July 27, 2018, to $0.10. These warrants are set to expire on December 31, 2020.

For anybody wishing to exercise these Warrants, please contact the Chief Executive Officer, Terry Donnelly at the particulars below.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN), Aurora Cannabis (NYSE: ACB) (TSX: ACB), and HEXO Corp. (NYSE: HEXO)

Cannabis leaders are focusing on innovation in premium branding, global expansion, and tight operational execution in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders:

Keep reading... Show less

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce that it has closed the 2nd and final tranche of its Unit financing. In connection with the closing, the Company issued 1,356,873 Units at a price of $0.55 per Unit, for gross proceeds of $746,280.15. Each Unit consists of one (1) common share and one (1) warrant. Each warrant entitles the holder to purchase one common share of the Company, at an exercise price of $0.75 per share, for a period of two years from the date of issuance. The warrants are subject to an acceleration right that allows the Company to give notice of an earlier expiry date if the Company’s share price on the CSE (or such other stock exchange the Company’s shares may be trading on) is equal to or greater than $1.25 for a period of 20 consecutive trading days. Finder’s fees of $42,542, 3,200 Finder’s shares and 80,550 Finder’s warrants were issued in connection with finder’s fees payable.

In total, the Company raised gross proceeds of $1,757,180 and issued 3,194,873 Units.

Keep reading... Show less

 Sweet Earth Holdings Corp. (CSE: SE) (FSE: 1KZ1) (OTCQB: SEHCF) (“Sweet Earth” the “Company”) is pleased to announce that it has received full Depository Trust Company (“DTC”) eligibility in the United States. On October 20, 2020, Sweet Earth announced that its shares had been listed on the United States’ Over-The-Counter Bulletin (“OTCQB”) under the ticker SEHCF.

DTC status means that Sweet Earth shares are now eligible to be transferred between brokerage accounts within the United States and significantly augments the ease in which American-based investors are able to trade Sweet Earth shares.

Keep reading... Show less