Cannabis Stock Report: Aurora Comes Out Swinging

Following Wednesday’s announcement of CanniMed Therapeutics Inc. (TSX:CMED) shareholder rights plan to fend off Aurora Cannabis Inc.’s (TSX:ACB) hostile takeover bid, Aurora shot back with a response of is own. Aurora had harsh words for CanniMed, stating that they were “astonished” by the company’s unwillingness to negotiate, calling the shareholder rights plan a “poison pill” that “limits the rights and choices of shareholders.” Furthermore, Aurora argued that CanniMed’s actions are “self-serving” and could lead to “inferior CanniMed shareholder value.”

Aurora is not taking the move by CanniMed lightly. The Canadian cannabis giant plans to challenge the so-called “poison-pill” by applying for a hearing with the Financial and Consumer Affairs Authority of Saskatchewan and Ontario Securities Commission. Also, Aurora filed a complaint with the Financial and Consumer Affairs Authority of Saskatchewan and the Ontario Securities Commission claiming that CanniMed’s alternative deal with Newstrike Resources Ltd. (TSXV:HIP) breaches specific securities laws by failing to disclose certain information.

"Since launching our offer, the feedback we have received from CanniMed's shareholders has been overwhelmingly positive,” Aurora's Executive Vice President Cam Battley said in a statement. “Many of CanniMed's shareholders are telling us that our offer represents an excellent premium for their CanniMed shares, and clearly see the considerable upside potential by becoming Aurora shareholders."

Keep the popcorn nearby for this one.

Creso Pharma Enters Beverage Market

Raise your glass to the hard working people…  In friendlier news, Creso Pharma Limited (ASX:CPH) announced on Wednesday that the company is partnering with LGC Capital Ltd. and Baltic Beer Company to produce a new line of alcoholic and non-alcoholic drinks derived from cannabis and hemp. The new craft beer mimics essential oils of the cannabis plant called terpenes, which the U.S. Food and Drug Administration classifies as a food additive. All three companies signed a binding letter of intent.

Creso Pharma, based out of Australia and Switzerland, is a medical cannabis company that researches therapeutic products for both animals and humans. LGC Capital comes from Canada, while Baltic Beer is a U.K. company, making the agreement an international joint venture. LGC noted in a statement that research into the planned beverages has already begun in Switzerland, Estonia, and the U.K.

“This new joint venture combines Creso Pharma’s cannabis and hemp expertise with the prestigious and multiple award-winning beer creators, Baltic Beer Company, to develop and provide consumers with innovative, high-quality hemp and cannabis-derived beverages,” remarked Creso Pharma’s CEO and Co-Founder, Dr. Halperin Wernli.

AppSwarm Develops Bitcoin Payment Solution

Pay me my money down… Mobile application and gaming company AppSwarm Inc. (OTCMKTS:SWRM) announced this week that they are teaming up with technology-acquisition company SinglePoint Inc. (OTCMKTS:SING) to develop Bitcoin payment solutions for the cannabis industry. The two companies joined together to create mobile applications using Blockchain technology and Bitcoin payments. SinglePoint subsidiary SingleSeed will market the app while AppSwarm will provide technical support, with both companies splitting revenue down the middle.

Cannabis-related industries are often forced to do business in cash. Everyone from the big banks to PayPal has given cannabis the no-go. Stuck dealing with a black market cannabis insiders have turned to cryptocurrencies to protect their investment. Bitcoin provides the large-scale protection of financial institutions, something which without no business can prosper. Even IBM now promotes Blockchain as the answer to Canada’s need for a regulatory framework for legal cannabis.

“This JV with SinglePoint allows them unfettered access to all of the technology we currently have in-house, as well as what we are and will be developing in the near future,” said AppSwarm CEO Ron Brewer in a statement. “With the Crypto space expanding at mind-boggling speed it only makes sense to be partnering with such a prestigious industry leader in SinglePoint.”

Market Updates

I'm the king of Milwaukee…  On Thursday Marijuana Company of America Inc. (OTC:MCOA) announced a partnership with HoneyB Healthy Living. The two companies will develop a line of products branded under Convenient Hemp Mart, LLC's "BeniHemp" name. “BeniHemp” products will include CBD infused tinctures and edibles targeted towards impulse buyers at convenience stores.

Retail Therapy… Growlife Inc. (OTCMKTS:PHOT), which dubs itself as the nation’s largest cultivation facilities service provider, opened up its flagship retail location in Calgary, Alberta this week. The store will offer traditional retail products along with the advice of industry experts. Growlife’s market share continues to expand in preparation for nationwide legalization of cannabis next year.

News and Notes

Mo’ Money... Liverpool cannabis producer Aqualitis is preparing to close a $6.5-million funding round, setting up a market launch for sometime next year. The Nova Scotia startup raised about $11.5 million in this funding round. “We’ve got a great project and people who are familiar with the industry know we have something very special in this team,” said Aqualitis CEO Myrna Gillis.

If you really want to know someone, you should live with them… One of Arizona’s largest wholesalers of medical-grade cannabis, The Pharm LLC., signed a 15-year lease on some new property in the state. The company is the owner and operator of the bulk of Arizona’s dispensaries, retailing under the name “Sunday Goods." According to reports, the transaction will complete in the fourth quarter of this year.

Quick Bites

A nickel ain't worth a dime anymore, part III… TerrAscend (OTCMKTS:TRSSF) announced the company’s third-quarter financials on Thursday, with the company showing a net loss of $1,481,450. Most of that is the result of increased employee compensation, as well as consultant fees, according to a company statement.

Until next week…

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