In global cannabis news, Medical Marijuana, Inc. (OTC: MJNA) announced on Wednesday the expansion of subsidiary Kannaway into the European market. The company will use European-sourced materials to create a distribution network throughout European Union member nations and non-member nations as well. According to a statement, Kannaway is the first company to make hemp-based CBD wellness products available to the whole of the European market.
Medical Marijuana Inc. holds the distinction of being the United States first publicly traded cannabis company. Kannaway offers phyto-cannabinoid botanical products and is the first hemp lifestyle network to make such products available. Expectations are high for the new European venture, as direct selling companies generated more than $35 billion in retail sales in 2015, as per The World Federation of Direct Selling Associations.
"There is already a huge sense of enthusiasm in the air when I meet with potential customers in Europe," Kannaway’s International Vice President, Alex Grapov commented. "People are excited by the opportunity to get involved in our exploding industry with such a credible company and amazing product offering."
CanniMed Signs PharmaChoice
I can tell that we are going to be friends… On the heels of Aphria Inc.’s game-changing Shoppers Drug Mart announcement comes similar news from CanniMed Therapeutics Inc. (TSX:CMED). On Wednesday the medical cannabis company announced an exclusivity deal with PharmaChoice, Canada’s second largest independent pharmacy. CanniMed will be the sole supplier of cannabis products to PharmaChoice’s 750 retail locations across the country.
News of the deal comes as CanniMed is in a protracted dispute with Aurora Cannabis Inc. (OTCMKTS:ACBFF) over Aurora’s attempted hostile takeover of the company. On Tuesday the company announced that the TSX deferred consideration of CanniMed’s shareholder rights plan, enacted as a stop-gap measure to keep Aurora from acquiring further shares of CanniMed stock. The PharmaChoice deal is complete, barring approval from Health Canada for the sale of cannabis products through pharmacies.
“As Canada’s second largest independent pharmacy banner, we anticipate that PharmaChoice will become a major product distributor for us,” said CanniMed CEO Brent Zettl. “PharmaChoice recognizes the value that CanniMed brings to the table, our focus on producing pharmaceutical-grade cannabis and our manufacturing capabilities to provide reliably safe products for our patients.”
Aurora Increases Stake In Radient
A seven nation army couldn't hold me back… On Monday CanniMed foe Aurora Cannabis Inc. (TSX:ACB) announced they would take on a more substantial ownership stake in Radient Technologies Inc. (TSX-V:RTI). As per the investor rights agreement signed by both companies, Aurora will invest an extra $12 million. The deal is subject to the approval of the TSX Venture Exchange, as well as other necessary approvals as listed in the original agreement.
According to a joint statement by both companies, $5.8 million will go towards the exercise of all 15,856,321 common share purchase warrants of Radient currently held by Aurora. Additionally, Aurora will invest $6.2 million through a private placement. Once finalized, the deal will increase Aurora’s stake in Radient from 8.8 percent to 19.18 percent on an undiluted basis.
"With multiple Aurora facilities coming online and ramping up production in the coming quarters, as well as the anticipated export of cannabis oils and preparations for the legalization of adult consumer use in Canada, Radient's planned expansion positions both companies exceptionally well to accelerate revenue growth," Aurora CEO Terry Booth noted. "This investment reflects our strategy to build a constellation of vertically integrated partners and subsidiaries.”
Just feel that you're the hardest little button to button… Mobile and web technology company Metatron announced on Monday their cannabis cryptocurrency transaction and tracking app Bitweed is in the final stage of development. The company plans for the app to develop into its own CryptoCoin in the future organically. “We plan on integrating the upcoming Bitweed and the popular Cannaboids apps to make [payment solutions] more efficient for retailers and consumers,” Metatron CEO Joe Riehl stated.
I just don’t know what to do with myself… This week Future Farm Technologies Inc. (CSE:FFT) (OTCQB:FFRMF) announced that RwE Growth Partners Inc. would perform a business valuation of the company’s augmented reality asset. The company plans to spin-off the asset in a stock dividend which will be issued to shareholders within 120 days. Future Farms believes the newly formed group will grab an otherwise unexplored market segment that combines alternate realities and cannabis.
News and Notes
Cause if I'm the man that you love the most you could say "I do" at least… Canopy Growth Corp.’s (TSX:WEED) overseas joint venture with Danish Cannabis, a project called Spectrum Cannabis Denmark announced on Tuesday plans for a 40,000 square meter production facility in Denmark. Plans to convert at least 30,000 square meters of existing infrastructure by early 2018 are underway, assuming approvals and licenses from the proper authorities. “The Danish market is a stable, attractive market for a number of strategic reasons,” said Canopy CEO Bruce Linton.
See you just can't take the effect and make it the cause… On Wednesday Affinor Growers (CSE:AFI) announced a 30 percent reduction in cost due to design improvements and optimized growing conditions. Over the summer the company improved tower technology, helping plant resource availability and versatility. Estimates claim the new life of these towers to be about 20 years.
Sugar never tasted so good… On Thursday Puration, Inc. (OTC:PURA) and Greenbelt Resources Corporation (OTC:GRCO) announced the signing of a Letter of Intent for the joint development of a cannabis extraction facility in California.
I'm thinkin' about my doorbell, when ya gonna ring it… Grow Condos Inc. (OTCMKTS:GRWC) announced $0.01 earnings per share in their quarterly announcement on Monday. Revenue was $0.03 million for the quarter.