Cannabis Stock Report: Turn and Pivot (Pharmaceuticals); Plus CannTrust Trades Up, Nuuvera Comes Down
Reaching out is Pivot Pharmaceuticals Inc. (CSE:PVOT) (OTCQB:PVOTF), who announced on Thursday an arm's-length non-binding letter of intent to acquire Health Canada ACMPR licensed producer Agro-Biotech Inc. According to a statement, Pivot will invest $15 million towards growing and sustaining the Agro-Biotech business model. The acquired company expects to continue operations on a standalone basis following the hopeful completion of the proposed transaction.
With an approach to cannabinoids that looks to improve dosing and bioavailability through patented pharmaceutical technologies, Pivot intends the Agro-Biotech acquisition to create a vertically integrated company. They plan to control manufacturing processes from “seed to derivatives.” According to the company's strategic rationale for the acquisition, Pivot intends to undertake a whole host of industry-related activities from out of its Good Manufacturing Process (GMP) facility, including the extraction and sale of oils and isolates.
“Pivot will seek to expand its footprint in [Quebec] beginning immediately following financing activities which are underway,” remarked Pivot CEO Dr. Patrick Frankham. “After several months of identifying and discussing with potential partners in the cannabis space, the Pivot management team and our scientific advisors agreed that it was in the best interest of our shareholders to acquire the compliment [sic] of licenses which will enable us to develop our pipeline of patented formulation and delivery technologies all under one vertically integrated process from seed to derivatives.”
Pivot closed Friday up $0.02 per share, up 1.10 percent to close the day at $1.97 per share.
CannTrust Climbs The Mountaintop
Do you know how many presidential family members have smoked on the White House roof… Moving on up is CannTrust Holdings Inc. (CSE:TRST) who announced on Thursday the receipt of conditional approval to list its shares on the Toronto Stock Exchange (TSX). According to a statement, the company sees the move as an essential step towards growth and an opportunity to expand their base of shareholders. As part of their conditions, CannTrust assigned their interests in the U.S. cannabis market to another company for the price of one dollar, with the understanding that if federal legalization occurs in the U.S., they will reacquire those rights.
"Graduating to the TSX represents yet another important milestone for CannTrust as we continue on our successful journey as one of Canada's leading cannabis companies," remarked Eric Paul, CEO of CannTrust.
CannTrust fell $0.33 per share on Friday, a decline of 3.59n percent. The company closed out the week trading at $8.87 per share.
Something Old; Something Nuuvera
We talk to each other in code. 420. It was a time, a date, a symbol for passive resistance… Going fishing is Nuuvera Inc. (TSXV:NUU) who announced on Thursday a definitive share purchase agreement to acquire the remaining 49 percent of ARA-Avanti Rx Analytics Inc., which represents the holdings of a single minority shareholder. The company also has a 60-day option to purchase an Ontario-based facility owned by Avanti. According to a statement, the overall transaction looks to be around $43 million.
In related news, Aphria Inc. (TSX:APH) announced earlier this week an amendment to their previously announced agreement with Nuuvera. According to a statement, both companies agreed to lower “the required level of unrestricted cash and the consideration payable to holders of Nuuvera’s common share.” Under the amended agreement the consideration is now $0.60 in cash and 0.3546 of an Aphria share for each Nuuvera share.
Nuuvera fell $0.48 per share on Friday. The company lost 9.09 percent to close out the day at $4.80 per share.
Smoking helped put me in touch with the realm of the senses… Making things brighter is TopGrow Lighting who announced on Thursday the release of a unique horticulture photometry report, the TopGrow LED T5 benchmark report. The report is an analysis of TopGrow’s 24 watt LED T5 side-by-side versus their competition. Compiled by Underwriter Laboratories, the report shows TopGrow coming out on top, with their product consuming 30 watts less in power per lamp and outputting 17 micromol/s less photosynthetic active radiation.
News and Notes
The biggest killer on the planet is stress, and I still think the best medicine is and always has been cannabis… Changing guards is Nutritional High International Inc. (CSE:EAT) (OTCQB:SPLIF) who announced on Thursday the appointment of two new directors to the Board, Jim Frazier and Aaron Johnson. They replace Robert Keeler and David Caplan, the former of whom will continue on in his current role as Chief Operating Officer. David Caplan will remain with the company, holding a position on Nutritional High’s Advisory Board.
The weed is for the people. It’s the people’s weed… INSYS Therapeutics, Inc. (NASDAQ:INSY) will report their fourth quarter 2017 results on March 8… Heliospectra AB (OTCQB:HLSPY) released their year-end report for 2017… CannaRoyalty Corp. (CSE:CRZ) (OTCQX:CNNRF) will discuss fourth quarter 207 and full-year financial results on March 29.
Until next time…
*Photo Credit: By nodomain.cc (Flickr) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons