Investor Ideas Potcasts, Cannabis News and Stocks on the Move; (CSE: PLTH) (TSX: FAF) (CSE: OILS) (CSE: AGRA) (CSE: IPOT)
Delta, Kelowna, BC - December 17, 2019 (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.
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Investor Ideas Potcasts, #Cannabis News and #Stocks on the Move; (CSE: PLTH) (TSX: FAF) (CSE: OILS) (CSE: AGRA) (CSE: IPOT)
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 early announcements.
Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF), a leading vertically-integrated Nevada cannabis company, announced today that it received the top award in the retail category during the MJBizDaily Awards Gala. The inaugural award was presented to the Company as part of the MJBiz Conference in Las Vegas, the world's largest cannabis conference and tradeshow. The award program recognizes global leaders, both companies and individuals, for their excellence and impact on the hemp and cannabis industries.
"We are thrilled to be recognized by MJBizDaily as the leader in American cannabis retail. Our focus on creating a unique cannabis retail destination centered on customer experience, innovation, and entertainment has been key to our success in driving ~2,000 paying customers on average per day and generating ~10% of Nevada's cannabis sales," said Larry Scheffler Co-CEO of Planet 13.
The award follows on the heels of a Clio Cannabis Award in Brand Design Planet 13 received weeks ago for the packaging of its new Dreamland Chocolates™ line of products - awarded by Clio Cannabis/High Times that celebrates the creators at the forefront of cannabis marketing and communications. In addition to the MJBiz Retail award and the High Times design award one of Planet 13's budtenders was recently voted as a top ten budtenders in America at the inaugural Budtender awards.
Some of the Financial and Operational Highlights for the thirteen weeks ended November 2, 2019 were:
- As at the end of the quarter, the Company operated 30 cannabis retail stores across the provinces of Alberta, Manitoba, Saskatchewan and the Yukon, including 10 cannabis retail stores that commenced operations during the quarter. In addition, the Company provided consulting and licensing services to two branded cannabis retail stores in Ontario.
- $18.6 million in system sales which includes corporate and licensed stores representing a 19.7% increase over Q2-2019.
- Total revenue of $13.7 million at a gross profit of 34.7%, compared to $11.1 million in Q2-2019 at a gross profit of 36.5%.
- Closed the strategic investment with Alimentation Couche-Tard Inc. ("Couche-Tard") with an initial investment of $25.9 million (through its subsidiary). The strategic investment would result in Couche-Tard obtaining a controlling interest in Fire & Flower if all securities issued in connection with the strategic investment are converted/exercised in full.
- Closed asset purchase agreements with wholly-owned subsidiaries of Cannabis Cowboy Inc. in relation to 8 cannabis retail stores in the province of Alberta including stores in the key urban market of Calgary.
- HifyreTM launched the Spark PerksTM members program providing benefits such as Fastlane checkout, exclusive deals and access to member-only events. Since its launch the program has enrolled more than 50,000 members.
There were also subsequent Financial and Operational Highlights post November 2, 2019 which included receiving 9 additional cannabis retail store licences and commencing operations at 3 additional cannabis retail stores in the province of Alberta as well as entering into the final stages of the application process for cannabis retail store licensing in the province of British Columbia.
"With the emerging Canadian cannabis industry facing headwinds, Fire & Flower continues to deliver a track record of growth and meeting our objectives" shared Trevor Fencott, Fire & Flower's Chief Executive Officer. "We anticipate meeting our goal of 45 open and operating stores by the end of our fiscal year. Our industry-leading Spark Perks members program ensures that our customers are engaged with the Fire & Flower brand as their cannabis retailer of choice."
Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF), a Coquitlam-based company developing intellectual property for the extraction and purification of cannabinoids, announced that it has entered into a strategic agreement with a British Columbia-based cannabis processing equipment distribution company.
The Agreement permits the Licensee, on a non-exclusive basis, to commercialize and distribute certain intellectual property, specifically, three issued and pending patents related to post-extraction processing equipment developed by Nextleaf. OILS will provide the Licensee with initial working capital and strategic support during the indefinite term of the Agreement. OILS may terminate the Agreement if the Licensee does not meet certain minimum annual sales targets.
OILS will receive a royalty equal to 20% of the Licensee's gross revenue from all sources in exchange for, among other considerations, the licensed IP. Based on the Licensee's current product backlog and 2020 projections, OILS estimates the Royalty could yield over $3,000,000 in royalty fees to Nextleaf in the 2020 calendar year, with initial revenue expected to commence in the immediate term.
"We believe this is an ideal partnership with a company whose management has a proven track record of building one of the industry's largest cannabis processing equipment distributors," stated Charles Ackerman, Chief Financial Officer of Nextleaf. "This deal allows OILS to continue its work to efficiently monetize its patent portfolio globally. It also brings closer to its previously announced goal of $5,000,000-$10,000,000 in gross revenue from IP licensing alone in the next 12 months.ii We believe IP licensing has the potential to represent up to 10-20% of our gross annual revenue" continued Ackerman.
In addition to the development and monetization of its IP portfolio, OILS continues to focus on assisting Nextleaf Labs Ltd., a Health Canada licensed standard processor, to reach full commercial production including the production and sale of bulk CBD and THC oils. Nextleaf expects to be in a position to announce additional commercial agreements during the first calendar quarter of 2020.
AgraFlora Organics International Inc. (CSE: AGRA) (OTC: AGFAF), a growth oriented and diversified international cannabis company, announced that the Company's 50 per-cent owned joint venture subsidiary, Eurasia Infused Cosmetics Inc. is preparing to import a suite of Toronto Wolfpack RLFC/ HowlBrands CBD performance products into 2019 Rugby World Cup host nation, Japan, as well as the Hong Kong special administrative region.
By way of an exclusive manufacturing and distribution agreement with the Toronto Wolfpack and HowlBrands, AgraFlora is positioned at the nexus of the burgeoning CBD-infused performance products marketplace and the vast captive audience of professional sports. The exclusive agreement is further bolstered by TWP's recent Super League promotion and transatlantic professional sports team status, affording AgraFlora with a noteworthy platform to capture material market share within the sports nutrition and rehabilitation segments.
In October 2019 AgraFlora's exclusive CBD sports partner, the Toronto Wolfpack, was promoted to the 2020 RLF Super League competition; an accomplishment that positions the TWP in the highest tier of English rugby league, boasting international broadcast reach to over 250 million homes. The Toronto Wolfpack achieved 704 million unique views from associated print and web articles throughout the 2019 season, as well as 40.4 million views attributed from its global Rugby Strength product announcement.
The 2019 Rugby World Cup hosted by Japan garnered total viewership of over 1.7 billion digital video views world wide, affording advertisers an embedded and captive fan base already familiar with the familiar with the gladiatorial nature of rugby, as well as the associated maladies which may be remedied by the next generation of CBD sport products.
Eurasia and the Toronto Wolfpack/HowlBrands will collaborate to import the following hemp-derived, CO2 extracted and GMP certified CBD-infused performance stock keeping units ("SKUs):
- CBD isolate performance tincture;
- CBD-infused sports rejuvenation gummies; and,
- CBD sport capsules.
Eurasia Infused, by way of a commercial concession with Hong Kong-domiciled CBD Group Asia Ltd. ("CBD Group Asia"), controls a distribution agreement for CBD and hemp-derived beauty, wellness and performance products within the South Asian and Pacific Rim theatres.
CBD Group Asia's principals boast more than a decade experience specializing in the importation and customization of premium Canadian consumer packaged goods ("CPGs") for the Chinese marketplace. The CBD Group Asia management team has previously distributed premium Canadian CPGs into China's largest retail chains and C-stores, including RT-Mart International Ltd. ("RT-Mart") and Carrefour SA. RT-Mart alone operates over 484 retail locations covering 233 cities and 29 provinces in China and generated $20-billion in sales in 2018.
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora stated: "Fifteen to twenty years ago, protein powder and performance supplements were health and wellness products only consumed by body builders and triathletes, today these products have become ubiquitous in the daily routine of many from accountants, to trades people, to stay-at-home parents; we speculate that CBD's societal permeation will replicate this trajectory.
Our continued commitment to cross-functional integration and knowledge sharing across our various subsidiaries further magnifies the accretive nature of our diverse operating business units. With the guidance of CBD Group Asia we continue to occupy trailblazer status within the global CBD sports market, all while occupying the intersection between wellness and sports. With numerous, notable SKUs in the pipeline and several jurisdictions already identified for future roll-outs, our objective is to create brands that transcend beyond sport; delivering specific benefits that appeal to and reach all consumers who value proper care of their bodies.
Our CBD performance SKUs earmarked for Japan and Hong Kong are developed and formulated by a team of medical professionals and natural health experts and boast THC-free, gluten-free, non-GMO status, with vegan and organic accreditations. GMP-certified manufacturing partners are mandated to comply with the industry's highest standards including full, batch-specific documentation and rigorous third party testing."
Isracann Biosciences Inc. (CSE: IPOT) (OTC: ISCNF), an Israel-based company focused on becoming a premier low cost, high quality cannabis producer for both domestic and European export sales, announced that it has entered into an MOU for a joint venture with an additional farm property consisting of a late stage buildout of a cannabis cultivation facility in an agricultural centre proximal to several licensed producers west of Be'er Sheva, Israel.
Under the joint venture, the Company will capitalize the buildout of the remaining construction in return for an economic interest in the project in compliance with Israeli laws. Terms of the joint venture will be released upon signing of a definitive agreement, which is subject to continued due diligence of the Be'er Sheva Farm by the Company.
The Be'er Sheva Farm consists of over 880,000 sq. ft. of agricultural land with two recently assembled steel greenhouse structures having a footprint of nearly 200,000 sq. ft. Upon full build-out the facility will represent an approximate 100% increase in the Company's current potential production capacity from its existing Nir Israel farm. The Be'er Sheva Farm also provides unused land with the potential for four times cultivation expansion capability. The new facility is designed to cannabis production standards and is ready to be enclosed with high quality application-specific polycarbonate cladding. The facility has all construction and land use permits in-place and an experienced and knowledgeable cultivation team which has local agronomic expertise with regional cannabis operations.
Isracann CEO Darryl Jones advises, "Our agronomic consultants brought this enterprise to our attention recently and the economics of the opportunity impressed us enough to move quickly to lock in a partnership. The facility is poised to greatly expand our existing footprint and advances our timeline to production by several months."
Isracann has moved quickly to develop a definitive agreement subject to completion of commercial due diligence. A preliminary assessment by Isracann's agronomic team projects full scale planting during the upcoming 2020 spring season. Initial production projections indicate a first-year yield consistent with the Company's Nir Israel farm projected output.
Matt Chatterton, VP Operations for Isracann recently visited the Be'er Sheva Farm and comments, "We've been evaluating several opportunities to expedite our commercialization plans and based on my inspection of the property this farm offers the ability to shorten our time-to-market. The fundamentals are already in place, including building permits, and the basic infrastructure is already constructed which accelerates timing. Once we conclude our due diligence efforts, the proposed plan will be to advance the technical efforts including completion of the greenhouse and concurrently implementing a project characterization strategy in preparation to planting. There is still a lot of work to complete, but our efforts at our Nir Israel farm have already provided us with regional business relationships, experienced advisors, and extensive preparations that we can readily extend and implement across both locations."
"The region has already proven suitable for high quality cannabis production," continues Company CEO Jones. "Of significant interest is that the farm operator will participate in the arrangement and is a highly experienced manager of cost effective large-scale agricultural operations within the region. There are also several corporate and economic advantages open to us as we move ahead to finalize our definitive agreement. The opportunity to achieve production sooner than anticipated is a very attractive part of this strategic acquisition and directly reflects our commitment to our partners, stakeholders and shareholders alike as we grow our presence as cannabis industry leaders in Israel."
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