Investor Ideas Potcasts #508, Cannabis News and Stocks on the Move; (TSX: APHA) (NASDAQ: APHA) (NASDAQ: TLRY) (OTC: EDXC) (OTCQX: INLB)
Delta, Kelowna, BC - December 16, 2020 (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 #508, Cannabis News and Stocks on the Move; (TSX: APHA) (NASDAQ: APHA) (NASDAQ: TLRY) (OTC: EDXC) (OTCQX: INLB)
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 will be looking at a few private and public company announcements.
Aphria Inc. (TSX: APHA) (Nasdaq: APHA), a leading global cannabis company inspiring and empowering the worldwide community to live their very best life, and Tilray, Inc. (Nasdaq: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced that they have entered into a definitive agreement to combine their businesses and create the world's largest global cannabis company based on pro forma revenue. The deal is pursuant to a plan of arrangement under the Business Corporations Act (Ontario), and the implied pro forma equity value of the Combined Company is approximately C$5.0 billion (US$3.9 billion), based on the share price of Aphria and Tilray at the close of market on December 15, 2020. Following the completion of the Arrangement, the Combined Company will have principal offices in the United States (New York and Seattle), Canada (Toronto, Leamington and Vancouver Island), Portugal and Germany, and it will operate under the Tilray corporate name with shares trading on NASDAQ under ticker symbol "TLRY".
The Combined Company, supported by low-cost, state-of-the-art cultivation, processing, and manufacturing facilities, will have a complete portfolio of branded Cannabis 2.0 products in Canada. Internationally, the Combined Company will be well-positioned to pursue growth opportunities with Aphria's medical cannabis and distribution footprint in Germany, and Tilray's European Union Good Manufacturing Practices low-cost cannabis production facility in Portugal, which has export capabilities and tariff-free access to the European Union to meet increasing global demand for medical cannabis. In the United States, the Combined Company will have a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater Brewing Company, a cannabis lifestyle branded craft brewer, and Manitoba Harvest, a leading hemp food manufacturer and a pioneer in branded CBD and wellness products. The Combined Company is expected to have a strong, flexible balance sheet, cash balance and access to capital giving it the ability to accelerate growth and deliver attractive returns for stockholders.
Under the terms of the Arrangement, the shareholders of Aphria will receive 0.8381 shares of Tilray for each Aphria common share, while holders of Tilray shares will continue to hold their Tilray shares with no adjustment to their holdings. Upon the completion of the Arrangement, Aphria Shareholders will own approximately 62 percent of the outstanding Tilray Shares on a fully diluted basis, resulting in a reverse acquisition of Tilray, representing a premium of 23 percent based on the share price at market close on December 15, 2020 to Tilray shareholders. On a pro forma basis for the last twelve months reported by each company, the Combined Company would have had revenue of C$874 million (US$685 million).
The Combined Company will be led by a best-in-class management team and board of directors, with strong track records in consumer-packaged goods and cannabis experience internationally. Upon completion of the Arrangement, Aphria's current Chairman and Chief Executive Officer, Irwin D. Simon, will lead the Combined Company as Chairman and Chief Executive Officer. The board of directors will consist of nine members, seven of which, including Mr. Simon, are current Aphria directors and two of which will be from Tilray, including Brendan Kennedy, and one of which is to be designated. Aphria and Tilray are confident that the leadership team and proposed board of directors of the Combined Company provides a strong foundation for the Combined Company to accelerate growth. Additional senior leadership positions at the Combined Company will be named at a later date.
"This is an exciting day for both companies including our 2,500 employees, for the cannabis industry, and for patients and consumers around the world. We are bringing together two world-class companies that share a culture of innovation, brand development and cultivation to enhance our Canadian, U.S., and international scale as we pursue opportunities for accelerated growth with the strength and flexibility of our balance sheet and access to capital," said Mr. Simon. "Our highly complementary businesses create a combined company with a leading branded product portfolio, including the most comprehensive Cannabis 2.0 product offerings for patients and consumers, along with significant synergies across our operations in Canada, Europe and the United States. Our business combination with Tilray aligns with our strategic focus and emphasis on our highest return priorities as we strive to generate value for all stakeholders."
"I am honored to work with Brendan Kennedy, a pioneer in the cannabis industry, and the Tilray team as they join forces with our talented employees at Aphria," continued Mr. Simon. "I look forward to leading the talented teams of both Aphria and Tilray as we seek to create a leading global cannabis and consumer packaged goods company with a portfolio of medical, wellness and adult-use brands consumers love."
Mr. Kennedy, Tilray's Chief Executive Officer, commented, "We are thrilled to bring together two cannabis industry leaders. At this nascent stage of development and expansion of the global cannabis market, we believe companies with leading geographic scale, product range and brand expertise are most likely to benefit long-term. By leveraging our combined strengths and capabilities, we expect to be able to meet the needs of consumers more effectively all over the world and advance patient care. With a strong financial profile, low-cost production, leading brands, distribution network and unique partnerships, we believe the Combined Company will be well-positioned to deliver sustainable, attractive returns for stockholders. I look forward to working with Irwin and the Combined Company's management team to make our consumer products more accessible around the world."
Emerald Bioscience, Inc. (OTCQB: EMBI), a preclinical biopharmaceutical company focused on developing proprietary molecules with strong clinical and commercial differentiation, announced the publication of a peer-reviewed paper reporting that THCVHS, the Company's novel THC prodrug, was optimized through a nanoemulsion formulation (THCVHS-NE) for drug delivery into the eye and demonstrated significantly better reduction of intraocular pressure (IOP) compared to the commercially approved standard of care in normotensive rabbits.
Response was determined by measuring reduction in IOP from baseline following a single treatment with either THCVHS-NE (1% w/v), latanoprost (0.005% w/v), or timolol (0.25% w/v), which was measured every 30 minutes post-treatment up to 180 minutes, followed by measurements at 240, 360 and 480 minutes post-treatment. Duration of response was determined as the time required for IOP to return to 90% of baseline. THCVHS-NE achieved a maximum drop in IOP of 23% compared to latanoprost (13%) and timolol (14%). In addition, duration of response for THCVHS-NE was ≤480 minutes, compared to latanoprost (≤360 minutes) and timolol (≤90 minutes) (p<0.05) in normotensive rabbits. Therefore, a nanoemulsion formulation of THCVHS appears to not only be more effective at reducing IOP, but also has a longer duration of response when compared to standard of care treatment for glaucoma.
The article, entitled "Effect of surfactant concentration and sterilization process on intraocular pressure-lowering activity of Δ9 ‑tetrahydrocannabinol‑ valine‑hemisuccinate (NB1111) nanoemulsions," authored by Sweeney, C., Dudhipala, N., Thakkar, R. et al, was published in the November 2020 issue of Drug Delivery and Translational Research. The experiments were conducted by researchers at the University of Mississippi.
"Our aim is to be able to offer ophthalmologists and their patients a superior new class of treatment for glaucoma, with better intraocular-pressure-lowering activity to prevent vision loss. The intriguing scenario is that THC's ability to lower intraocular pressure is already validated - we know it works, based on prior human studies! We also know, however, that to successfully employ THC as a good medicine for glaucoma we need to have an effective method of local delivery into the eye, consistent with the American Academy of Ophthalmology's recommendation against systemic use of cannabis to manage glaucoma. This is precisely what our drug offers," said Punit Dhillon, CEO of Emerald.
"What is additionally and particularly notable is that our unique, synthetic bioengineered THCVHS molecule has potential capabilities that current treatments are unable to provide. A large percentage of glaucoma patients do not experience increased IOP but nevertheless experience vision loss believed to result from other neurodegenerative effects on the cells of the optical nerve. THC is also known to have neuroprotective properties. If our drug can protect against vision loss in patients with normal IOP as well, we would have an extraordinary new solution to offer for the prevention of glaucoma-related vision loss.
"We are working to complete our preclinical work in the near term and then start our planned human study in the third quarter of 2021. The nature of this disease will allow us to simultaneously provide safety and early efficacy outcomes in a first human study that is relatively fast and low-cost compared to the typical realization of such results in the clinical trial process," added Mr. Dhillon.
Endexx Corporation (OTC: EDXC): Music magnate, mega producer and GRAMMY® Award-winning artist DJ Khaled announced his entrance into the CBD industry. Inspired by his personal wellness journey, Khaled, in partnership with Endexx, a leading producer and manufacturer of hemp-derived CBD wellness products, will introduce his new company and debut the first collection in 2021.
Although most well-known for his contributions to the music world, the self-made businessman turned international music icon is also a dedicated family man -- committed to instilling the importance of health and wellness into everyday life. Grateful to be a father, he released two albums in honor of his children, Father of Asahd in 2019 and Grateful in 2017. With all of these blessings, Khaled continues building his legacy and success by focusing his energies on the health and wellness sector.
"As a father, an entrepreneur, a music exec and visionary I am blessed with daily inspiration, a drive to work hard and a passion for success. CBD has become a part of my daily routine and allows me to focus myself and my energies, while striving to better myself every day," says DJ Khaled. "I was drawn to Endexx Corporation because they're an innovative company that has proven they have the keys to deliver consistent, top of the line, high-quality products."
"We are excited to announce our partnership with DJ Khaled," stated Todd Davis, CEO of Endexx Corporation. "Khaled's knowledge and passion for CBD is bountiful and we realized we are aligned in our approach towards product quality and business acumen. We understand and share the values that a brand goes beyond physical products; it needs to help people feel good about themselves and be part of a day-to-day lifestyle."
Miami based IMPACT Brokers, the third party in the joint venture, will be spearheading sales and integrated marketing efforts on behalf of the brand. "We are committed to accelerating innovation and diversity throughout this developing industry while offering strategic guidance to best-in-class CBD suppliers. IMPACT Brokers sits at the forefront of culture and has the ability to predict industry trends. We look forward to taking this newest business nationwide," says Ryan Stender, CEO of IMPACT Brokers.
The hemp-derived, cannabidiol-rich collection is anticipated to launch in early 2021.
Item 9 Labs Corp. (OTCQX: INLB), a vertically integrated cannabis operator that produces premium products, announced today that it has finalized its merger agreement with ONE Cannabis Group (OCG, Inc.) and expects to close the merger in January 2021.
ONE Cannabis Group, based in Colorado, is the parent company to the cannabis dispensary franchise Unity Rd. Built up from the legacy of a 10-plus year, award-winning Colorado dispensary & cultivator and infused with decades of franchise experience, the company helps eager operators enter the complex industry with ease. The cannabis franchise pioneer offers its partners the knowledge, resources, and ongoing support needed to compliantly and profitably operate a dispensary. Currently, Unity Rd. has franchise agreements signed for the development of more than two dozen shops across multiple states and expects the first store to open in quarter one 2021.
Recently, it was named one of the top cannabis retail leaders in the nation by MJBizDaily magazine and one of the "Best Cannabis Companies to Work For" in both the dispensary and cultivation categories in Cannabis Business Times' elite 2020 list. The company is also the first cannabis business to earn a Franchise Times Dealmakers award - a recognition presented to the boldest players driving mergers and acquisitions in franchising. For more information on ONE Cannabis Group, visit ocginc.com and head to unityrd.com for details on the Unity Rd. franchise opportunity.
"Our teams have been working on parallel paths to ensure a smooth integration and are eager to officially operate as one unit. This was a significant milestone for all and we look forward to closing [the merger] in January 2021," Item 9 Labs' Chief Executive Officer, Andrew Bowden, commented. "The merger with ONE Cannabis Group greatly enhances our business capabilities with its retail distribution and unique franchise operation. Their business model and national network of Unity Rd. franchise partners create highly predictable, recurring revenue streams."
Investor ideas reminds all listeners to read our disclaimers and disclosures on the Investorideas.com website and that this podcast is not an endorsement to buy products or services or securities. Investors are reminded all investment involves risk and possible loss of investment.
Learn more about our cannabis podcasts at https://www.investorideas.com/Audio/Potcasts.asp
To hear more Investorideas.com podcasts visit: https://www.investorideas.com/Audio/.
Investorideas.com podcasts are also available on iTunes, Spotify, Google Play Music, Stitcher, Spreaker, YouTube via Spreaker, iHeartradio and Tunein.
Potcasts is now a certified word mark Trademark on the blockchain through Cognate, Inc. CM Certification-Registration Number: 10468217708
Investors can trade these stocks and other ideas on our site using our list of top stock trading apps including Robinhood, Acorn, Stash and others.
About Investorideas.com - News that Inspires Big Investing Ideas
Investorideas.com is a recognized news source publishing third party news, research and original financial content. Learn about investing in stocks and sector trends with our news alerts, articles, podcasts and videos, looking at cannabis, crypto, AI and IoT, mining, sports biotech, water, renewable energy and more. Investor Idea's original branded content includes the following podcasts and columns: Crypto Corner, Play by Play sports and stock news column, Investor Ideas Potcasts Cannabis News and Stocks on the Move podcast and column, Cleantech and Climate Change, Exploring Mining the AI Eye.
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com
Investor Ideas does not condone the use of cannabis except where permissible by law. Our site does not possess, distribute, or sell cannabis products.
Follow us on Cannabis Social Media
Download our Mobile App for iPhone and Android