Investor Ideas Potcasts #579, Cannabis News and Stocks on the Move; (NEO: HALO) (OTCQX: HCANF), (CSE: RYAH), (CSE: AUSA), (TSX: WEED) (NASDAQ: CGC), (TSX: TGOD)
Delta, Kelowna, BC - June 23, 2021 (Investorideas.com Newswire) www.Investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today's podcast edition of cannabis news and stocks to watch plus insight from thought leaders and experts.
Listen to the podcast:
Investor Ideas Potcasts #579, Cannabis News and Stocks on the Move; (NEO: HALO) (OTCQX: HCANF), (CSE:RYAH), (CSE: AUSA), (TSX: WEED) (NASDAQ: CGC), (TSX: TGOD)
Today's podcast overview/transcript:
Good afternoon and welcome to another episode of Investorideas.com "Potcast" featuring cannabis news, stocks to watch as well as insights from thought leaders and experts.
In today's podcast we look at a few public company announcements.
RYAH Group, Inc. (CSE:RYAH) announced that it has completed an initial shipment of its proprietary RYAH Smart Dry Herb Inhalers for use in a pilot study to be conducted by Medicann in Jersey, the largest of the Channel Islands, located between England and France. Medicann is a premier cannabis-specialized clinic, providing patients with access to local specialist doctors and pharmacists that have experience prescribing cannabis-based medication. Medicann is launching an observational study using RYAH Smart Dry Herb Inhalers in order to collect patient feedback on consumption of cannabis strains available on the Island, including strains supplied by Aurora Europe, a subsidiary of Canadian-headquartered Aurora Cannabis Inc., a global leader in the cannabis industry serving both medical and consumer markets and dedicated to helping people improve their lives.
In addition to the pilot program, the parties are working toward an exclusive, definitive supply and distribution agreement, which, if entered into, is expected to position Medicann as the sole supplier and distributor of the RYAH Smart Dry Herb Inhalers in the region.
Jersey, Channel Islands, which is known to have one of the highest GDP per capita in the world, is a British dependency island ideally situated in the English Channel off the coast of France. In 2019, the island's economy grew by 2.1% in real terms to £4.97 billion.
By 2024, the medicinal cannabis market within the United Kingdom is predicted to be worth nearly US$1.3 billion, servicing nearly 340,000 active patients. According to a report by the United Nations International Narcotics Control Board, the U.K. has emerged as the largest supplier of medicinal cannabis in the world. The European cannabis market is forecast to grow with a compound annual growth rate (CAGR) of 67.4% to reach 3.2 billion euros ($3.75 billion) by 2025.
"We are excited to be initiating our pilot program with Medicann in Jersey, which represents a unique, 'ring-fenced' environment for establishing potentially numerous studies on the efficacy of treatments using plant-based therapies. RYAH is pleased to contribute RYAH's IoT devices and data platform and work with Medicann toward perfecting prescribing practices and dosing regimens," said Gregory Wagner, CEO of RYAH Group, Inc.
The Company has decided to rename its operations focused on the U.S. adult use market to Audacious Brands ("Audacious" or the "Company"). The Company's ticker symbol will remain AUSA on the CSE and AUSAF on the OTC. The Company will consolidate its brands under the new Audacious banner, as well intends to launch additional products lines under the new name. A full and official brand launch is anticipated in the coming months.
"Audacious as a name for our adult use operations is a much better reflection of our corporate culture and how we execute and operate," said Terry Booth, CEO. "Audacious stands for doing things differently, courageously breaking with tradition, being bold, brave and confident. As a Company, we are executing on a unique strategy that is very difficult to emulate, while at the same time de-risking our operations. In an increasingly fragmented market with largely converging strategies, it takes an audacious company to stand out. This is who we are, and this is how we operate. The new name also better reflects our motto to ignite, delight and excite our shareholder base and the customers enjoying our products."
Audacious also reported that the operation in Missouri, which the Company is acquiring as part of the Green Therapeutics transaction, has received its license to operate. Once the license transfer is complete, Audacious will own 25% of a processing and manufacturing license.
The Missouri operations comprise an 8,000 square foot facility for extraction and manufacturing, including a complete solventless extraction line, the current industry benchmark for high-end quality, with an initial capacity to extract approximately 100 lbs per day of raw material. The facility will allow for the expansion of the multiple award-winning Tsunami brand to penetrate the Missouri market. A final inspection was successfully completed, and the Missouri operation has received its license to operate. Sales are anticipated to commence within the next 45 days.
Missouri is a medical market that has been operational since October 2020. The Missouri market is anticipated to reach $225-$300 million for 2021, and is anticipated to show continued strong growth to $500-$625 million by 2025 (Marijuana Business Factbook 2021). To date 25 manufacturing licenses have been approved to operate. Further licensing is currently capped.
Dr. Duke Fu, COO commented, "Missouri is one of the hardest U.S. markets to enter, with a capped license regime, which makes it a highly attractive jurisdiction to operate in. Our partners are well known within the home healthcare market in Missouri, which should greatly boost our competitive position with healthcare professionals. We are in talks with several dispensaries for product placements, as well as are in talks with highly regarded out-of-state brands that are looking at us for white labelling to enter this attractive market. We are excited that we can now commence our operations and look forward to serving the medical market in Missouri with consistent, high-quality product."
The Company has also completed the acquisition of a 23-acre plot of land, which Audacious intends to become a hub for multiple operators covering the industry value chain from cultivation to extraction and manufacturing. In addition, the Company has acquired the last remaining water rights in this area, providing a substantial advantage in securing partners for development of this envisaged project.
Mr. Booth, commented, "The Sandy Valley land has great potential for us to develop our multi-operator cannabis hub. In line with our capital light expansion strategy, we intend for ALPS to assist third party operators, be they cultivators, processors or manufacturers, in building their facilities, in exchange for a percentage of capacity to grow our own cultivars and manufacture our products. While through Green Therapeutics we already are a leading operator in the state, growth has been limited through lack of high-quality cannabis. This initiative, in addition to our other moves in the state, as announced recently, will change that. We are already in talks with a number of highly interested parties to realize our vision, on which we will report more in the coming months."
Halo Collective Inc. (NEO: HALO) (OTCQX: HCANF), a vertically integrated multinational cannabis company, announced that its board of directors has unanimously approved the reorganization of its non-U.S. operations, Bophelo Bioscience & Wellness Pty. Ltd. and Canmart Ltd., into a newly formed Alberta corporation called Akanda Corp. Akanda will be led by accomplished cannabis and corporate finance and banking industry executive Tej Virk.
Akanda will combine the scaled production capabilities of Bophelo, Halo's Lesotho-based cultivation and processing campus, located in the world's first Special Economic Zone (SEZ) containing a cannabis growth operation, with distribution and route-to-market through Canmart, Halo's UK-based fully approved pharmaceutical importer and distributor which supplies pharmacies and clinics within the UK. With a potential maximum licensed canopy area of 200 hectares, Bophelo has scalability that is arguably unmatched in the world today.
"The separation of Halo's U.S. and international businesses through the formation of Akanda is the right initial step to capitalize on the significant growth opportunities in global cannabis markets and to unlock significant unrealized value for all of Halo's stakeholders," said Kiran Sidhu, CEO and Co-Founder of Halo. "Akanda, with a unique strategy and scaled assets, will be positioned to be the low cost supplier of high quality and ethically sourced medical cannabis products to the fast-growing African, UK, European, and other international markets. I am excited to support Tej and Louisa as they build Akanda into a world-class company, leveraging Halo's trusted cannabis brands, technology, and know-how."
Tej Virk will join Akanda as CEO from Khiron Life Sciences, where he was President and Managing Director, Europe, establishing Khiron's medical and consumer packaged goods business in the region. Prior to his time at Khiron, Virk was Managing Director, Europe, for Canopy Growth Corporation, where he was responsible for driving the multinational expansion of Canopy's European operations. Working with top research doctors in the UK, Spain, and Germany, he has overseen the launch of multiple medical cannabis products in Europe, including flower for inhalation and oils. Virk has extensive cannabis sector M&A experience and has transacted on numerous IPOs and follow-on capital raises for global cannabis companies, including Canopy and Tilray. At the beginning of his career, Virk spent 15 years in investment banking and capital markets at BMO Financial Group.
"Akanda has the potential to be a truly great international medical cannabis company, cultivating high quality and ethically sourced cannabis at scale, leveraging trusted brands, at the industry's lowest cost. It is a special honor to be joining Akanda as its first CEO and I do so with an equal sense of excitement and responsibility," said Tej Virk, CEO and Director of Akanda.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF), a leading producer of premium certified organically grown cannabis, announced that its wholly owned Quebec subsidiary Medican Organic Inc. has completed the previously announced sale of the majority of its assets in Valleyfield, Quebec, including all industrial and agricultural land, main hybrid greenhouse, rooftop greenhouse, all support buildings and certain related equipment, to Cannara Biotech Inc. for the $27 million purchase price contemplated in the purchase and sale agreement relating to the Transaction. In addition, Medican received a $5.7 million deposit refund from Hydro-Quebec.
Concurrent with the closing of the Transaction, TGOD repaid approximately $31.8 million to its senior lender to settle all of its outstanding obligations and terminated the loan agreement with such lender.
As also agreed to with the Purchaser, Medican entered into a lease with the Purchaser concurrent with the closing of the Transaction, for approximately 80,000 square feet of cultivation and processing space in the Quebec Facility.
BMO Capital Markets acted as exclusive representative and financial advisor to the Company in connection with the Transaction, and Langlois Lawyers LLP acted as TGOD's legal counsel.
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) and The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) announced the completion of the previously announced arrangement whereby Canopy has acquired all of the issued and outstanding common shares of Supreme.
As Canopy continues to focus on the premium flower segment, the addition of 7ACRES and the 7ACRES Craft Collective enhances Canopy's leading market share position and supplements its production capacity through the acquisition of Supreme's low-cost, scalable cultivation facility in Kincardine, Ontario. This facility has a proven capability for producing high-quality flower from sought-after strains that have earned Supreme's brands their loyal consumer followings. Additionally, the acquisition of Supreme further strengthens Canopy's overall leadership position within the Canadian recreational market and creates a pro forma Q4 FY 2021 market share of 18.1%1. Furthermore, the acquisition creates the opportunity for immediate value creation with an estimated $30 million in synergies to be captured within the next two years.
"Through the addition of Supreme, we're strengthening our leadership position by offering Canadian consumers a differentiated brand portfolio – including the addition of 7ACRES, which further bolsters our premium product segment," said David Klein, Chief Executive Officer of Canopy. "Supreme has demonstrated the ability to cultivate premium quality flower at low cost and we're excited to leverage these capabilities to further our leadership in the Canadian market as we scale these newly added brands and accelerate revenue growth."
"We believe the acquisition of Supreme by Canopy represents the best path forward for Supreme's shareholders to generate long-term value," said Beena Goldenberg, Chief Executive Officer of Supreme. "We are proud to have built an attractive company with high-quality, sought-after premium products and brands. We feel joining with Canopy – a leader in the Canadian recreational market – is aligned with our ultimate goal of becoming a premier cannabis CPG company."
As a result of the Arrangement, Supreme has become a wholly-owned subsidiary of Canopy and the Supreme Shares are anticipated to be de-listed from the Toronto Stock Exchange on or about June 23, 2021.
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