Investor Ideas Potcasts, Cannabis News and Stocks on the Move: (TSX: LABS), Kiva Confections, NBA and Sequire Cannabis and Psychedelics Conference
Delta, Kelowna, BC - April 3, 2023 (Investorideas.com Newswire) investorideas.com, a global news source covering leading sectors including marijuana and hemp stocks and its potcast site 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: (TSX: LABS), KIva Confections, NBA and Sequire Cannabis and Psychedelics Conference
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Today's podcast overview/transcript:
In today's podcast we go over a few industry announcements, changes to NBA drug testing policy as well as upcoming events.
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) and VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) announced the completion of the previously announced plan of arrangement under section 192 of the Canada Business Corporations Act, pursuant to which MediPharm has acquired all of the issued and outstanding common shares of VIVO in an all-equity business combination transaction effective April 1, 2023. The Arrangement combines two highly complementary businesses, creating a unique and market differentiating international medical cannabis leader.
Key Transaction Highlights:
- Leading Pharmaceutical Cannabis Company: The acquisition of VIVO will add: established Australian and German medical cannabis brand Beacon Medical; an industry-leading medical cannabis clinic business Harvest Medicine; and a longstanding Canadian medical sales platform Canna Farms Medical.
- Direct to Patient Sales:(1)(3) Canna Farms was the first Licensed Producer in British Columbia, and its medical sales channel, Canna Farms Medical, has supported over 60,000 patients since 2014.(6) Following the Arrangement, it is anticipated that this platform will provide patients with a more diverse product portfolio that includes existing MediPharm products. Direct to patient sales generally result in a better gross margin with the ability to bypass provincial distributors. VIVO's clinic business Harvest Medicine will allow real-time product feedback and clinical insights on MediPharm products.
- Diversified Revenue Profile with Strong Canadian Base: (1)(3) The pro-forma combined company resulting from the Arrangement (the "Combined Company") is expected to provide fulsome Canadian market coverage with cultivation and manufacturing expertise, and a full suite of dried flower & derivative products with both established medical and adult-use wellness distribution channels.
- Expanding International Medical Cannabis Opportunity:(1)(2)(3)(4) The pro-forma Combined Company's international distribution will cover European and Asia-Pacific markets through established, revenue-generating agreements. The VIVO Napanee Ontario facility is EU-GMP certified for cultivating and packaging flower and the MediPharm Barrie Ontario facility is GMP certified for non-flower alternative format medical products. With two distinct international platforms, the pro-forma Combined Company is expected to open many new product offerings for existing distribution channels and geographies. The pro-forma Combined Company would have annualized international revenue of over $20M, representing approximately 40% of total revenues.(5)
- Revenue and Cost Synergies Realizable in the Near-Term:(1)(2)(3)(4) Using forecasts derived collaboratively by both management teams, along with revenue and cost synergy estimates, the pro-forma Combined Company aims to find positive EBITDA(6) synergies to the magnitude of between $7M to $9M on an annualized basis, and could reach positive EBITDA and cash flow in the first half of 2024.
- Balance Sheet Strength:(1)(2)(3)(4) Anticipated combined cash position of approximately $26 million (as reported December 31, 2022) and unencumbered ownership of all major assets. This strength is expected to provide confidence in the Combined Company's balance sheet to execute on its strategic growth roadmap, despite the macro backdrop of capital markets that continue to soften.
- Ownership Ratio Finalized: The Combined Company is owned approximately 73.1% by former MediPharm shareholders and approximately 26.9% by former VIVO shareholders.
"We are very excited to be starting a new chapter in the evolution of MediPharm Labs. VIVO is a strong cultural fit, and a great strategic fit. Together the two organizations have a much clearer path to profitability. I want to welcome all the VIVO employees and thank the teams on both sides that worked over many months to help bring us together," said David Pidduck, Chief Executive Officer of MediPharm.
"Our entire team has been working long and hard to achieve our goals of growth and profitability and this deal is a manifestation of that hard work. I cannot thank the team enough," said Ray Laflamme, Chief Executive Officer of VIVO. "Canna Farms and VIVO have been huge parts of my life and our team's lives for the past ten years. Personally, I am proud to be part of the cannabis industry, and I am proud that our company and our leadership are being recognized and validated by MediPharm's desire to merge with us. We are very proud of VIVO and the amazing new company that we will create with MediPharm."
As a result of the Arrangement, VIVO has become a wholly-owned subsidiary of MediPharm, and the VIVO Shares are anticipated to be de-listed from the Toronto Stock Exchange on or about April 4, 2023.
Kiva Confections, California's market leader in premium, award-winning cannabis edibles, recently announced a partnership with iconic burger chain Fatburger for this coming 4/20 holiday to release a limited edition cannabis-infused Kiva x Fatburger Ketchup. The first-of-its-kind Cannabis Ketchup, available for a limited time only beginning April 6th at participating Artist Tree and Sweet Flower Los Angeles locations, encourages consumers to heighten their favourite munchies, Fatburger's famous burgers and french fries, while furthering Kiva's mission to continue the conversation around cannabis normalisation in California and beyond.
The partnership between the two nationally recognized brands supports the increased interest around cannabis as it continues to be integrated into consumers' daily lifestyles. Currently, recreational cannabis sales continue to grow in over 20 states across the U.S., and the number of cannabis users in the country is predicted to reach nearly 71 million users by 2030.
"As the market leader in cannabis edibles, we're thrilled to continue pioneering innovative, yet everyday products that pave the way for cannabis normalisation," commented Kristi Palmer, Co-Founder of Kiva Confections. "We can't think of a better partner for this than our favourite West Coast burger chain. Though the partnership may seem unconventional, Fatburger and Kiva are both California-founded and beloved institutions. What better way for cannabis fans to celebrate 420 than with a delicious, elevated munchies meal - and for the cannacurious to take their first dip into cannabis one fry at a time."
Kiva x Fatburger Ketchup will feature 10mg of THC per packet, making it the ultimate "condiment" for all of your Fatburger made-to-order burgers and fries ahead of the popular 4/20 holiday.
"Every year, we look to bring our own special flavour to the 4/20 holiday," said Taylor Fischer, Vice President of Marketing for Fatburger. "Kiva was the perfect fit from a collaboration standpoint as they not only have an incredibly strong California fan base like Fatburger, but the quality of their edibles is unmatched in the cannabis space, similar to how we are viewed in the burger industry. Our special sauce will be sure to take the munchie game to a higher level."
Kiva x Fatburger Infused Ketchup will be available for purchase for a limited time only at select Artist Tree and Sweet Flower Los Angeles locations beginning April 6th, retailing at $5 while supplies last. For more information on the partnership, Kiva x Fatburger Ketchup, upcoming special Kiva x Fatburger events and more, visit kivaconfections.com, fatburger.com, or visit the brands on Instagram @madebykiva and @fatburger.
In recent news, The NBA will no longer be testing for cannabis, according to a tentative deal between the league and the National Basketball Players Association.
The two sides announced the collective bargaining agreement, which still needs to be ratified before it becomes official, on Saturday morning, according to The Athletic.
If the CBA is ratified by the players and team governors, the seven-year deal would include a stipulation that cannabis will be removed from the drug testing program and NBA players will no longer be penalised for its use.
In a statement posted to Twitter, the National Basketball Players Association said: "Specific details will be made available once a term sheet is finalised."
"Since day one, the goal of the NBPA in this negotiation was to protect our players, enrich their lives on and off the court, and establish a framework that recognizes our players as true partners with the governors in both the NBA and the business world at large!" NBPA executive director Tamika Tremaglio said in a tweet.
Amid the pandemic, the NBA announced in late 2021 that it would no longer randomly test players for marijuana use after suspending testing in March 2020. At the time, NBA spokesman Mike Bass said the league would instead "focus our random testing program on performance-enhancing products and drugs of abuse."
Some NBA athletes – including Hall of Famers Kareem Abdul-Jabbar and Allen Iverson – have been open about their own cannabis use and advocated for cannabis legalisation as have athletes from other leagues, like the NFL, MLB and UFC.
Finally,in upcoming events, the Sequire Cannabis & Psychedelics Conference, a free virtual event, will be hosted on Wednesday, April 5 from 10 am to 4 pm ET. It's gonna be a trip, featuring speakers from the industry's top companies in the cannabis, CBD, and psychedelic space alongside keynotes and more. Register today to hear more about an industry expected to reach $72 billion annually by 2030. Companies attending will be Numinus Wellness Inc. (TSX: NUMI), Red Light Holland (OTC: TRUFF), Mindset Pharma (CSE: MSET) Nextleaf Solutions (CSE: OILS), Clever Leaves (NASDAQ: CLVR), High Tide Inc. (NASDAQ: HITI) and Silo Pharma (NASDAQ: SILO).
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