Cannabis Stock Report: European Cannabis Projected at $59 Billion, Aurora Bids on CanniMed, Canopy Growth Acquires TerrAscend
Medical Cannabis Valued at $59 Billion Across Europe
Earlier this month UK-based consultancy Prohibition Partners released The European Cannabis Report. It predicts the European medical cannabis market to be worth upwards of €50 billion. That is roughly $59 billion American.
The valuation will be complete when regulatory frameworks are in place across Europe. Cannabinoid medications like Sativex were available as early as 2013 in some countries. Hemp cultivation has grown exponentially across the continent over the past two years.
“Production and data companies are generating most interest from international investors,” remarked one of the paper’s authors, Stephen Murphy. “We’ve seen these as the areas of interest from all investors we’ve talked with to date.”
CanniMed Mulls Aurora Offer
Investors reeled over Aurora Cannabis Inc.’s (TSX:ACB) takeover bid of CanniMed Therapeutics Inc. (TSX:CMED) on Monday. CanniMed is reviewing the offer and advised shareholders to wait in the interim. Aurora gave CanniMed until Friday to respond to the proposal.
Aurora’s all-share offer valued CanniMed’s stock at up to $24 per share. Shareholders of 38 percent of CanniMed's shares support the deal, according to Aurora. Plans are being made for a formal takeover bid if CanniMed's board fails to respond to the offer by Friday.
News of the takeover bid sent CanniMed’s share price up almost 30 percent, to $4.50. Meanwhile, CanniMed is negotiating a deal to acquire marijuana company Newstrike Resources Ltd. (TSXV:HIP).
“This could spark a wave of consolidation with the larger players ‘gobbling up’ the smaller ones,” said marijuana analyst Vahan Ajamian.
Canopy Growth Acquires Stock In TerrAscend
On Wednesday Canopy Growth Corporation (TSX: WEED) announced the acquisition of 47 million shares of TerrAscend Corp. at CAD$1.10 per share. The gross proceeds of the strategic investment were CAD$52,500,000. Canopy has 36 months from the closing date of the deal to buy more shares in TerrAscend, should they desire.
Canopy Growth is currently riding high as everyone’s favorite cannabis stock. TerrAscend is a Canadian company that deals in medical marijuana. Through subsidiary Solace Health Inc., TerrAscend produces medical cannabis. Most of their work is via Access to Cannabis for Medical Purposes Regulations.
“Canopy is excited to be partnering with an emerging pharma focused LP in TerrAscend,” commented Canopy’s Chairman and CEO, Bruce Linton. “Building upon what the team at TerrAscend has accomplished to date is an exciting, strategic, and mutually beneficial value proposition for all parties.”
Canadian venture capital firm ThreeD Capital Inc. acquired 2,000,000 shares of Global Cannabis Applications Corp. on Wednesday. Global Cannabis developed the Citizen Green platform. Its end-to-end infrastructure aggregates data to pre-qualify candidates for clinical studies.
Alternate Health Corp. (CSE:AHG) (OTC:AHGIF) acquired a new Mobile Payment Processing Application. That app acts as “turnkey payment solution and point-of-sale technology with comprehensive Blockchain reporting.” Plans are in the works to use the new software in both the medical and recreational cannabis sectors.
North American Cannabis Holdings, Inc. (USOTC: USMJ) is attempting to acquire a Canadian medical marijuana dispensary. The dispensary submitted a recreational license application in preparation for the legalization of marijuana across Canada in July 2018. "Any cannabis company developing a sector product or service offering should be looking to get into Canada. Operating in the piecemeal legal U.S. market is inherently inefficient,” said CEO Steven Rash.
News and Notes
Cannabis facilities company Surna Inc. (OTCQB: SRNA) announced financial results for the period ending September 30, 2017. Revenue was up 34 percent at just over $1.5 million. “Overall, we are pleased with the progress our team has made in the third quarter, particularly with the generation of almost $2.4 million in new sales contracts,” Surna CEO Chris Bechtel commented.
Kush Bottles Inc. (OTCQB: KSHB) named the chief executive officer of TIGER 21, LLC. Barbara Goodstein to its Board of Directors this week. Goodstein is among the Top 25 Women in Finance according to U.S. Banker's Most Powerful Women Annual Ranking of 2008 and 2009. "The cannabis market is undergoing a major evolution as it transitions out of the black market, presenting a unique and exciting opportunity for early players to participate in its growth,” commented Goodstein.
Freedom Leaf, Inc. (OTCQB: FRLF), known as the "The Marijuana Legalization Company®," released a research report on its operations. It laid out many developments, most notably the company’s projected expansion into the Latin American cannabis market.