Cannabis Stock Report: Tetra Bio-Pharma Brings The (Phyto)Pain

Rolling right into the new year, Tetra Bio-Pharma Inc. (TSX VENTURE:TBP) announced on Tuesday the acquisition of the remaining shares of their subsidiary Phytopain Pharma Inc. The share purchase agreement, which represents 20 percent of Phytopain’s outstanding shares, calls for a purchase price of around $12 million in exchange for Phytopain becoming a wholly-owned subsidiary of Tetra. Chairman of the Board André Rancourt and Chief Scientific Officer Guy Chamberland signed the agreement with Tetra as controlling entities of the company.

December was a busy month for Tetra, beginning with CEO Bernard Fortier opening the Toronto Stock Exchange early in the month. By mid-December, the company signed a research and development agreement with Constance Therapeutics and received a National Sciences and Engineering Research Council of Canada (NSERC) grant for work at McGill University. More recently, Tetra announced a deal to monetize their subsidiary GrowPros MMP Inc., netting the company $350,000 to focus on drug development activities.

“Upon completion, this transaction will be a significant milestone for Tetra Bio-Pharma and all our stakeholders,” said Tetra CEO Bernard Fortier. “This transaction will allow Tetra to gain 100 percent control of Phytopain Pharma, a key asset in the development of our pipeline of cannabinoid-based drugs and gives our company full flexibility to enter into other partnerships or agreements in the future.”

Tetra is currently trading at $1.27 per share, with a 52 week low of $1.15 and a high of $1.34. The company has a market cap of $155 million.

Cronos Announces $30 Million Bought Deal

Doesn’t the idea of making nature against the law seem to you a bit - unnatural… Also starting the new year on a high note is Cronos Group Inc. (MJN.V) who announced on Tuesday a $30 million bought deal with PI Financial Corp. The agreement sees Cronos handing over almost 3.5 million shares of company stock to a group of underwriters led by PI, for a price of $8.75 per share. Included in the deal is an opportunity for the underwriters to increase the option by 15 percent, assuming certain restrictions are met.

Cronos is considered by experts to be one of the more stable cannabis stocks available to investors on the market today. Recently, they entered into a partnership with Pohl-Boskamp, a German pharmaceutical company, which will allow them to distribute their Peace Naturals branded cannabis products throughout Germany. The company also has a new production facility in Israel, which, according to some experts, allows for cheaper production costs and a stronger bottom line.

Proceeds from the bought deal expect to go towards general funds for the company, including growth and research purposes. The agreement intends to close at the end of January, pending proper approvals from the Toronto Stock Exchange and other regulatory bodies. Cronos shares are selling at just under $10.00 per unit, with the company seeing some significant growth this year. Over a 52 week period, their low was $1.49 with a high of $10.43.

CanniMed Moves Up (Cannabis)

When I was a kid, I inhaled frequently. That was the point… Apparently looking to move past the Aurora brouhaha is CanniMed Therapeutics Inc. (TSX:CMED) who announced on Tuesday a supply agreement with Newstrike Resources Ltd. (TSX-V:HIP) wholly-owned licensed producer Up Cannabis Inc. The deal is for different types of medical cannabis strains which will help CanniMed meet the demand for their oils and oil-derivative products. According to a statement, both companies plan to work on a “THC-rich, whole dried flower, medical cannabis product, demanded by patients.”

It appears that CanniMed is using the deal to show shareholders and the public-at-large the value of their proposed contract with Newstrike resources in contrast to the hostile takeover attempt by Aurora Cannabis Inc. (TSX:ACB). The statement prepared by both companies trumpets the deal a “value-add” that will be of immense benefit to shareholders in the future. CanniMed and Aurora have both upped their war of words following a split decision by regulators concerning their dispute over Aurora’s attempted takeover of the company.

“This is the first of many anticipated synergies between CanniMed and Up Cannabis, and demonstrates the accretive combined value of the two companies,” said CanniMed President and CEO, Brent Zettl. “With sales of CanniMed 1:20 oil surging, this supply agreement allows continued growth to meet increasing demand for our medical cannabis products domestically and internationally. Access to consistent supply is the key differentiator in today’s fast-growing medical cannabis market.”

Over a 52 week period, CanniMed shares grew from $7.32 to a high of $23.97. They currently have a market cap of $582.5 million.

Patent Filings

I think people need to be educated to the fact that marijuana is not a drug. Marijuana is a flower… Lifestyle Delivery Systems Inc. (CSE:LDS) upped their game on Tuesday with the announcement of an enhanced provisional patent filing for their CannaStrips technology. Furthermore, the company filed for trademark protection for CannStrips in the United Kingdom and the European Union. According to a statement released by the company, the new patent builds upon the old CannaStrips formula and will be available to the market this year.

"We strongly believe that the CannaStripsTM delivery system is so unique that with clinical trials from a recognized health organization to substantiate the efficacy of the technology it would have to be at the top of the list of preferred delivery solutions anywhere in the world," remarked company CEO Brad Eckenweiler.

California News and Notes

It makes me feel the way I need to feel… Taking advantage of California’s new recreational market is Leafbuyer Technologies, Inc. (OTCMKTS:LBUY), purveyor of an online platform that allows consumers to search for cannabis deals by connecting them with dispensaries. The company announced on Tuesday that their platform is set-up to assist consumers in wading through the new California market. “We have had ample time to ramp up our presence in California and early January we will be fully operational in the largest, global, cannabis market,” said Kurt Rossner, CEO of Leafbuyer.

It really puzzles me to see marijuana connected with narcotics - dope and all that crap… Not to be outdone is CannaRoyalty Corp. (CSE:CRZ) who welcomed California’s recreational market on Tuesday through an announcement of the company’s various holdings in the state. Of note is subsidiary Kaya Management Inc., who received a Temporary Cannabis Manufacturing License in the state. "January 1st marked the transition of the largest and most sophisticated cannabis market globally into a recreational adult-use market and CannaRoyalty is strongly positioned to benefit as this market grows over the next five years," commented Marc Lustig, CannaRoyalty CEO.

Quick Bites

When you smoke the herb, it reveals you to yourself… Digipath, Inc. (OTCQB:DIGP) announced on Tuesday their financial results for the year ending September 30, 2017. Most notably, the company concluded the year with no debt and $380,000 of working capital.

Of course I know how to roll a joint… Trading publicly today for the first time on the OTCQX is Marapharm Ventures Inc. The company will trade under the symbol MRPHF.

Until tomorrow…

Add comment