Cannabis Stock Report: Canopy Growth Strikes Landmark Deal With Newfoundland and Labrador Province
On Friday industry leader Canopy Growth Corp. (TSX:WEED) announced a deal with the province of Newfoundland and Labrador for the supply, development, and retail of cannabis. The landmark deal will see Canopy supply the province with 8000 kg of product annually for the first two years. Also, the company plans to make a significant capital investment in the region, setting up shop with a new production facility expected to produce 12,000 kg per year. As a result of the deal, 145 new jobs will come to the region as well.
Under the agreement, Canopy subsidiary Tweed Inc. will open four new retail locations in the province, pending an application review. If granted, the four license would represent a milestone in the cannabis industry, becoming the first legal private retail operations in Canada. The company is currently searching out locations, with the Avalon Peninsula, and West of the Avalon Peninsula touted as possibilities.
"The Newfoundland and Labrador retail framework will allow us to take our existing e-commerce business and well-recognized house of brands including Tweed, DNA Genetics, Leafs By Snoop, and our CraftGrow program, and present that pride and dedication in a "brick and mortar" retail environment,” said Canopy CEO Bruce Linton. “I want to congratulate the Government of Newfoundland and Labrador for choosing a retail model that encourages local growth and a made-at-home experience while balancing private and public involvement."
The deal is another in a series of watershed moments for the industry, just before legalization across Canada in July 2018. As the Marijuana Index continues to gain, investors are cautiously optimistic about the long-term future of the cannabis sector.
Pro Football Legends Endorse CBD Product
In football you wear a helmet; In baseball, you wear a cap… Nutraceutical innovator and CBD specialist Gridiron BioNutrients (OTC:MYYZ) announced on Thursday they will begin production on Gridiron CBD H2O Probiotics. The water product is endorsed by the National Football League Alumni under commercial marketing arm Pro Football Legends. Together, the two groups hope to promote wellness education and healthy lifestyles.
As a company, Gridiron focuses on the health and wellness marketplace through the development of CBD products. The company offers a variety of products, including Gridiron Premium Hemp Salve, Gridiron Premium Hemp Oil, and Gridiron Premium Hemp Oil Capsules, with plans to provide more in the upcoming year. Gridiron MVP water, the company’s flagship product, includes Premium Nano CBD with a pH of 10.
"The formulation of Gridiron CBD H2O Probiotics is a significant development for the Company," said Gridiron CEO Darren Long. "We believe this exceptional product will allow Gridiron to strategically enter the ever-growing CBD water marketplace at a competitive price point.”
New Cannabis IPO Seeks $50 Million
This year I invested in pumpkins. They've been going up the whole month of October… Several cannabis industry veterans launched a new IPO, word of which came in an announcement on Friday. MTech Acquisition Corp. filed an S-1 preliminary prospectus, seeking to raise $50 million. Using the symbol MTECU, the company plans to list on the Nasdaq, trading the stock (MTEC) and warrants (MTECW) separately.
The corporation plans to invest in ancillary cannabis businesses. EarlyBirdCapital underwrites the company, who is looking at a possible $1.25 million in fees from the new firm. Scott Sozio and Steven Van Dyke from cannabis investment firm Hypur Ventures head MTech. Over the past three years, MTech’s management team has put more than $30 million into cannabis-related business ventures.
“Although the cannabis industry has evolved significantly and continues to mature, we believe the industry is still undercapitalized and companies operating across multiple verticals consistently have trouble accessing capital from traditional resources,” wrote MTech officials. Sozio and Van Dyke were unavailable for comment at the time of filing.
How to move into his apartment without taking over his closet… In exciting news, on Friday, publicly listed company Rainmaker Resources Limited was the victim of a reverse takeover by Canadian cannabis firm INDIVA. Rainmaker closed at the end of last week and planned to reopen on the TSX as Indiva Limited on Monday. The two companies earned over $15,000,000 in subscription shares last month in two separate offerings.
How much time would you say you spend each week dealing with these TPS reports… CLS Holdings (OTC:CLSH), who recently acquired Oasis Cannabis, announced on Friday the commencement of a private offering of its securities under Rule 506(c) under the Securities Act of 1933. The company filed a Form 8-K with the SEC. They are offering a minimum of 1,800,000 shares and a maximum of 4,000,000 shares at a share price of $1.25 per unit.
News and Notes
There's no "I" in team. There's a "me" though if you jumble it up… Veritas Pharma Inc. (CSE:VRT) announced last week the hiring of Dr. M. Scott Alexander as the new Medical Director of the company. He will work directly with the Cannevert Therapeutics Ltd. cannabis research programs, ensuring integrity. Also, the doctor will help to develop a strategy for medical affairs about cannabis strains currently in preclinical and clinical development.
The media is really, the word, one of the greatest of all terms I've come up with, is 'fake’... Speaking of Canopy Growth, CEO Bruce Linton sat down with The Motley Fool for an Interview and had some interesting things to say. Of note, Linton mentioned the deal his company made with Constellation Brands earlier this year, stating their 9.9 percent stake in Canopy is “not about money.” He also had an in-depth discussion about how legalized cannabis will compete with the black market. The entire interview is worth a read.
Honey Century City's got everything covered… The Justice Department, in an article in the American Bankruptcy Institute print journal, clarified whether or not cannabis-related businesses can make bankruptcy claims. Not surprisingly, they cannot.