CanniMed Fends Off Aurora
Don’t worry; I have a plan… The latest chapter in the unfolding soap-opera that is the Aurora-CanniMed affair took place on Wednesday. CanniMed Therapeutics Inc. (TSX:CMED) announced the adoption of a shareholder rights plan to fend off Aurora Cannabis Inc.’s (TSX:ACB) bid for a hostile takeover of the company. The play will allow CanniMed shareholders to vote on the company’s previously announced acquisition of Newstrike Resources Ltd. (TSXV:HIP) in what is becoming the cannabis sector’s most intriguing love triangle.
CanniMed is using the plan to prevent Aurora from obtaining any shares of the company aside from those already offered in the original hostile bid. The shareholder rights plan also puts a hold on any further lock-up agreements Aurora may attempt to sign. Aurora maintains that it has lock-up contracts that amount to 38 percent of CanniMed shares - representing four CanniMed shareholders.
For its part, CanniMed maintains that the Newstrike deal is a better move for shareholders. According to CanniMed, the Newstrike agreement will bring shareholders more value in comparison to Aurora.
MassRoots Partners With New Frontier
What’s on your mind today… On Wednesday marijuana social media site MassRoots Inc. (OTC:MSRT) agreed to a technology-sharing partnership with cannabis analytics firm New Frontier Data. The Denver-based social media company plans to use New Frontier’s “Big Data” engine to “aggregate, analyze and monetize” its 3 million person user base. Plans to collect consumer data for digital advertising and other commercial efforts are in the works.
MassRoots recently made headlines as their former CEO and founder Isaac Dietrich, who is still the company’s largest shareholder, filed a petition with the U.S. Securities and Exchange Commission to overhaul the company’s Board of Directors. The move came in response to a lawsuit filed by MassRoots against Dietrich alleging many serious improprieties, including misuse of funds. MassRoots relieved Dietrich of his duties as CEO in October.
The deal with New Frontier comes as MassRoots announced weak third-quarter earnings. SEC filings show that the company is in desperate need of at least $2.5 million by the end of the year to stave off going out of business. Interim CEO Scott Kveton claims that several deals are in the works to keep the company afloat, but has yet to release details.
mCig Forms New Hemp Corporation
I’m in a New York state of mind… Also announcing a new partnership on Wednesday was the diversified legal cannabis company mCig, Inc. (OTCQB: MCIG). Through a definitive Joint Venture agreement with New York-based Empire Farm's FarmOn! Foundation, mCig launched a new hemp project called NYAcres, Inc. The newly formed corporation will have a seed-to-sale philosophy, focusing on production, research, and distribution of both hemp and its by-products.
mCig Inc. is a diversified cannabis company with roots in vaporizer manufacturing. The company, based out of Nevada has lifestyle brands in the legal cannabis, hemp, and CBD markets. FarmOn! Foundation is a 501(c)(3)non-profit organization which uses its status to educate the youth of America about farming while attempting to preserve a culture of family farming in the United States.
"The opportunity between mCig and FarmOn! Foundation fosters innovative, profitable and sustainable farming,” mCig CEO Paul Rosenberg said of the new partnership. “We look to industrial hemp as an economic driver in the great state of New York, with the leadership of Governor Cuomo supporting our agricultural community, having a vision to rebuild for sustainability and rural prosperity through research and investment,"
First, you get the money… Thursday saw another slew of financial reports, with Kush Bottles Inc. (OTCMKTS:KSHB) announcing numbers for the fiscal year ending August 31. Year-over-year revenue for the company soared 129 percent to $18.8 million, with gross margins coming in at 33 percent, representing no change from the previous year. The numbers represented Kush Bottles’ CMP Wellness deal, which saw the company enter into the burgeoning vaporizer market.
First, you get the money, part II… In other investor news, AeroGrow International, Inc. (OTCMKTS:AERO) announced on Wednesday that sales for the fiscal year 2017 rose 20 percent. The company is in a great financial shape, with cash-on-hand of $9 million and no debt on the balance sheet. It is a remarkable position for a company that only a few years ago was near-bankruptcy and ready to shutter its doors.
News and Notes
Location, location, location… In grower news, Harvest One Cannabis Inc.’s (TSXV:HVST) announced plans to lease property in Chemainus, BC, with the intention of expanding its production abilities. The company is in both the medical and recreational cannabis space, with a focus on the cannabinoid-delivery system Gelpell. “The Chemainus Facility will allow [us] to capitalize on supplying the upcoming recreational market in Canada with large volumes of high quality dried cannabis buds,” company CEO Andreas Gedeon said.
Building a better mousetrap… American Diversified Holdings Corporation (OTCMKTS:ADHC) is developing what they consider to be “superior” CBD products. The product line includes the “Cannavape,” a versatile and portable vaporizer, and the “Continuum,” which has a single active button. Users of both cannabis and Hemp plus will be able to use these new vaporizers, according to a statement from the company.
You’re hired… Cannabis Compliance Inc., a consultancy agency focused on medical and recreational cannabis markets, appointed Mr. Maurizio Calconi Vice President of the Staffing Solutions division. His background is in executive recruitment, where he has spent 12 years developing contacts and top industry talent.