With March in the rear view window, the Investing News Network (INN) presents a closer look at the biggest stories for the marijuana investing market last month.
Two critical cannabis markets — the US and Canada — held the attention of investors. As Florida lifted a ban on smokable products, companies were able to start selling the popular products, boosting predictions for the performance of this state.
In Canada, as Ontario prepared for the opening of its retail market, further deals were signed between publicly traded marijuana companies and some of the 25 lottery winners looking to open shops.
“As the realities of a compressed schedule and complex project became clear, the third winner realized that they would benefit from our help,” Raj Grover, president and CEO of High Tide, said in a release.
Canopy Growth (NYSE:CGC,TSX:WEED) secured a second branding deal for a store in Ontario, this time by lending the Tokyo Smoke brand to a location near the popular Yonge-Dundas Square in Toronto.
The Tokyo Smoke shop completed its public notice period on Tuesday (April 2). Bruce Linton, co-CEO of Canopy, previously told INN he hopes the brands attract consumers; for Canopy, the focus is on keeping cannabis supply up for the province.
As a result of the acquisition, HEXO will become more established with retailer Inner Spirit Holdings (CSE:ISH) due to Newstrike’s partnership with Inner Spirit. The stores from the public retailer, dubbed Spiritleaf, carry a special hub dedicated to the Up Cannabis brand from Newstrike. The stores include images from Canadian rock band The Tragically Hip, which has invested in Newstrike.
“We welcome and look forward to working with the HEXO team and building on the foundation that has been put in place,” Darren Bondar, president and CEO of Inner Spirit, told INN in an email statement.
Florida boosts performance of MSOs
The cannabis market in Florida was in the spotlight as smokable products were finally allowed to be sold in the state. The sunshine state was also in focus thanks to developments from some multi-state operators (MSOs) active in the market.
“Offering these whole flower products to our patients in their purest, most effective form is something we — and patients — have been looking forward to since we opened the doors of the state’s first dispensary,” Kim Rivers, CEO of Trulieve, said in a press release.
During a fiscal Q4 2018 results conference call, Joseph Lusardi, CEO of Curaleaf (CSE:CURA,OTCQX:CURLF), said he is expecting the market to double thanks to this policy change. He indicated that the company also expects to see some form of policy around edibles sometime this year.
Also last month, fellow MSO Cresco Labs (CSE:CL,OTCQX:CRLBF) confirmed the purchase of a stake in the promising Florida market. The company will pay US$120 million for local company VidaCann, which will grant it seven active dispensaries with more on the way.
Watch the video above for more on what happened during the month of March.
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.
Editorial Disclosure: Inner Spirit Holdings and High Tide are clients of the Investing News Network. This article is not paid-for content.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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.