AURORA TO ACQUIRE CHEMI: Aurora Cannabis (ACB) announced Thursday that the company has signed a binding share purchase agreement whereby it has acquired privately-held Chemi Pharmaceutical, an Ontario-based laboratory that specializses in providing analytics services to the pharmaceutical and cannabis industries. The cash and share transaction is comprised of an undisclosed cash payment and share consideration of 83,299 shares paid on closing and 41,649 payable upon achievement of certain Chemi milestones. Chemi will be integrated into the company's Anandia Laboratories, expanding analytics capabilities to meet client demand and diversifying its testing services for both the medical and the upcoming edible and derivatives markets.
WAYLAND TO SELL INTEREST IN INTERNATIONAL BUSINESS: Wayland Group (MRRCF) announced Tuesday that the company has signed a definitive agreement to sell a 49.9% interest in its international portfolio of assets to ICC International Cannabis Corp. Wayland will receive 300,000,000 shares of ICC under the agreement, representing approximately 35% of the current outstanding ICC shares on a fully diluted basis. Wayland also announced that Matthew McLeod, current general counsel and VP operations and compliance, has been appointed as president effective immediately. In addition, under the proposed transaction Wayland will sign a three-year supply agreement with ICC that will supply ICC with 10,000kg of EU-GMP certified product per year, for a total of 30,000kg during the term. Prior to closing, Wayland’s international business will be reorganized and held in a subsidiary which will be jointly owned by Wayland and ICC. Wayland will retain the right to appoint the board of directors and management of the Wayland international subsidiary.
KUSHCO, SUNGROWN ENTER MANUFACTURING AGREEMENT: KushCo Holdings (KSHB) announced Monday it has entered a manufacturing and distribution agreement with SunGrown Packaging, a California-based provider of sustainable, customized packaging solutions to the cannabis industry. KushCo will immediately begin offering SunGrown’s current biodegradable and child-resistant packaging options to itscustomer network of over 6000 businesses. In addition, the companies will work together to launch a new line of compostable and biodegradable packaging products for use in the cannabis, hemp and CBD industries. The company said, “Pursuant to the agreement, SunGrown will partner with KushCo to develop products designed for the unique demands of the cannabis, hemp and CBD industries, while ensuring that all new products are environmentally friendly by featuring proprietary, biodegradable materials from renewable resources. This will have an immediate impact to KushCo’s top and bottom line as KushCo expects to recognize up to $12M in revenue in the first two years of this partnership.”
COO, GENERAL COUNSEL RESIGN AT MEDMEN: MedMen Enterprises (MMNFF) announced Friday that the company has accepted the resignations of Ben Cook, chief operating officer, and Lisa Sergi, general counsel and a member of the MedMen board of directors. The leaders of the operations group will now report directly to the chief executive officer. The leaders of the legal team include Dan Edwards, who will continue in his role of senior vice president of legal affairs, and report directly to the CEO. Also, during its fiscal quarter ended March 30, the company named Ryan Lissack chief technology officer.
ANALYSTS REACT TO CANOPY DEAL: GMP Securities analyst Martin Landry upgraded Canopy Growth (CGC) to Buy from Hold on Monday after the company confirmed a deal giving it the right to acquire Acreage Holdings (ACRGF) upon cannabis production and sale becoming federally legal in the U.S. The analyst said he sees significant near-term synergies and believes "the price is right," arguing that the takeout multiple is low given the strategic nature of the acquisition and Acreage's potential for continued strong growth. Landry raised his price target on Canopy shares to C$72 from C$65. Additionally on Monday, Benchmark analyst Mike Hickey said the acquisition provides a path for Canopy Growth to enter the U.S. market upon eventual federal legalization of cannabis production and sale. The analyst estimates the U.S. cannabis market is 10 times the Canadian market. He kept a Buy rating on Canopy Growth shares with a C$100 price target.
OTHER CANNABIS STOCKS: Other publicly-traded companies in the space include Cronos Group (CRON), HEXO Corp. (HEXO), Aphria (APHA), Tilray (TLRY), CV Sciences (CVSI), CannTrust Holdings (CNTTF), General Cannabis (CANN), Innovative Industrial Properties (IIPR), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), Elixinol Global (ELLXF), Planet 13 Holdings (PLNHF), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), Origin House (ORHOF), Sunniva (SNNVF), Sproutly (SRUTF) and DionyMed Brands (HMDEF).
