Assembling the team is Nasdaq darling Cronos Group Inc. (NASDAQ:CRON) (TSX-V:CRON) who announced on Monday a cross-border joint venture with Los Angeles based MedMen Inc. The partnership, called MedMen Canada Inc., will bring America’s largest retail weed brand up North to Canadian consumers. Combining Cronos’ Canadian connections and MedMen’s retail experience, the two pot stocks companies will develop new branded products and open stores across the country.
MedMed owns and operates factories and stores in California, Nevada, and New York and hopes to go public in Canada sometime later this year. Cronos operates Peace Naturals Project Inc. and Original BC Ltd., two wholly-owned Licensed Producers under Health Canada's Access to Cannabis for Medical Purposes Regulations. The joint venture will be an equal 50/50 partnership between the two companies, with MedMen Canada focusing on brand development throughout the country.
"MedMen Canada will give us entry into an important emerging market for adult use and broaden our exposure worldwide," remarked MedMen CEO and Co-founder Adam Bierman. "We always take a very disciplined and focused approach to our growth, and it was important that we find the right partner for our expansion into Canada. Cronos has been a leader in the Canadian medical cannabis space, and their international track record makes them the perfect partner. They have the right infrastructure and expertise to successfully execute this venture."
Cronos Group shares jumped nearly 12 percent on news of the agreement on Monday, to close out the day at $8.75 per share.
I mean, you're asking me to open my mind to the possible? What possibilities?! You want me to believe in the impossible… Finding Kamar-Taj is Horizons ETFs Management (Canada) Inc. who announced on Monday the quarterly rebalancing of their Horizons Marijuana Life Sciences Index ETF ("HMMJ") constituent holdings. According to a statement, as of March 16, ten new companies have been added to the fund. The portfolio is touted by the company as the largest ETF offering direct exposure to North American-listed securities in the weed stocks sector.
Horizon’s fund is a passively managed ETF that attempts to replicate the performance of the North American Marijuana Index. It focuses mainly on the life-sciences sector of the legal marijuana industry. Companies included in the fund operate in the fields of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary pot businesses.
"One of the key benefits of HMMJ is its diversification – providing access to a broad cross-section of stocks involved in the marijuana sector. It's exciting to see an increase in the number of investable companies that qualify to be included in HMMJ's portfolio," commented Steve Hawkins, President and Co-CEO of Horizons ETFs. "As we move closer to the Canadian government legalizing the recreational use of marijuana, we continue to watch the Cannabis sector rapidly grow in size and breadth."
Rebalancing occurs once every quarter. The fund is currently trading up $0.24 per share, or 1.25 percent. It closed out the day Monday at $19.44 per share.
Oversight. Oversight is not an idea that could be dismissed out-of-hand… Setting the standard is Aphria Inc. (TSX:APH) who announced on Friday the receipt of third-party independent GMP certification of its Leamington, Ontario growing and processing facilities. Certified explicitly for the Good Manufacturing Practice standards of CFR 21 parts 210/211, which were set forth by the Food and Drug Administration, the process was overseen by the firm SGS, a well-known group in these matters.
“Certification to the USFDA cGMP standards is a significant milestone in our continuous efforts to apply best practices to make the highest quality and safest products possible,” remarked Mary Jo Camboia, Director of Quality at Aphria. “It reflects the incredibly high standards we expect of ourselves and that our clients expect from their medical cannabis.”
They're not the '27 Yankees, but they'll do… Stamping out rumors is Canopy Growth Corp. (TSX:WEED) who announced on Monday the transfer of 1,500 cannabis clones to their partner in Madrid, opiate manufacturer Alcaliber SA. The move is the first phase of a partnership initially agreed to in September of last year. Furthermore, Canopy noted that rumors of their purchase of Alcaliber are false.
"Our view of the European continent mirrors our Canadian expansion strategy," noted Bruce Linton, Chairman and CEO, Canopy Growth. "We're diversifying our production capabilities on the continent in anticipation of rapid European market expansion. In addition to a large licensed production footprint in Odense, Denmark we are working closely with our partner Alcaliber to capture market share by scaling supply."
News and Notes
This is what S.H.I.E.L.D. is supposed to be… Branching out is Isodiol International Inc. (CSE:ISOL) who announced on Monday the signing of a deal with Kawacatoose First Nation. Among other initiatives, the two will cultivate and manufacture high-yielding industrial hemp CBD. “This is another strong step taken by the Company to expand our footprint in Canada. The Company will have significant access to the highest quality CBD, as KFN will provide the labour necessary to maintain and improve the farmland,” said Marcos Agramont, CEO of Isodiol.
Tetra Bio-Pharma Inc. (TSX-V:TBP)(OTCQB:TBPMF), completed their acquisition of the remaining 20 percent interest in PhytoPain Pharma Inc… Nutritional High International Inc. (CSE:EAT) (OTCQB:SPLIF) was added to the CSE25 Index as one of the 25 largest companies in the Canadian Securities Exchange Composite Index by market capitalization… Choom (CSE:CHOO) (OTCQB:CHOOF) and ABcann Global Corporation (TSX-V:ABCN) (OTCQB:ABCCF) announced a strategic supply investment agreement worth upwards of $4 million.