Canada Senate Voted in Favor of Legalizing the Recreational Use of Marijuana
Canada Senate voted on June 7 to pass the Bill C-45 clearing a major milestone in the legalization process. However, it is important to note that the Senate has made several amendments to the Bill and it will now be sent back to the House of Commons to review and vote on the amendments. Some of the amendments are non-essential but others could have a profound impact on the cannabis sector and stocks involved.
After House approval, the government expects to launch legal sales as soon as 10 to 12 weeks from now. If so, the country will be the first from the G7 to allow recreational use on a national level.
According to Deloitte’s new study, Canadians are expected to spend as much as $7.17 billion on cannabis products in 2019 and increase their overall consumption by up to 35 per cent once recreational cannabis is legalized later this year. Legal recreational cannabis sales could generate up to $4.34 billion in sales, accounting for more than half of total cannabis sales, but the illegal market could still be worth more than $1 billion a year.
Ohio Names 56 Medical Cannabis Dispensary Provisional License Winners
The State of Ohio Board of Pharmacy awarded 56 medical marijuana provisional dispensary licenses. The licenses were awarded after an extensive review of 376 submitted dispensary applications.
48North and JMC Debut on the Public Markets
48North, the parent of Delshen Therapeutics in Northern Ontario, has a licensed indoor facility of 40,000 sq. ft. that it projects can produce 2.5 million grams annually, though it isn’t yet approved for selling. It has licensed genetics from Maripharm B.V. in the Netherlands and is evaluating an expansion on its 800 acres in Kirkland Lake to build a 200,000 sq. ft. facility in two phases that would add 40 million grams to its annual production capacity. The company is expected to begin trading on the TSX Venture with the symbol “NRTH”.
JWC, which is licensed to cultivate and to sell, is based in Ontario and produces aeroponically grown cannabis, using its GrowthStorm cultivation platform. Its current facility is 15,000 sq. ft. and produces 1.5 million grams annually in 7 grow rooms, and the company is targeting 28.5 million grams in its second facility under development, a 345,000 sq. ft. retrofit that it expects to complete in the second quarter of 2019. The company has a strategic relationship with Canopy Growth through its CraftGrow and Tweed Main Street programs, its genetics and its extraction infrastructure and Canopy Rivers, which provides it with capital and owns 13.7% of the company on a fully-diluted basis. The company is expected to begin trading on the TSX Venture with the symbol “JWCA” on June 11th.
Aurora Enters into Global Softgel Business with Capcium
Aurora Cannabis announced that the companies have signed a strategic agreement to produce high quality cannabis-based softgels for patients. Additionally, Aurora has acquired a 19.99% ownership interest in Capcium by way of a non-brokered private placement for consideration of $10 million.
Capcium intends to use the proceeds from the Aurora investment to expand its cannabis softgel manufacturing business, which includes the construction and operation of a large, state-of-the-art facility, to be completed in Q4 2019.
Aphria to Raise $225 Million Selling Shares at $11.85
Aphria announced that it has entered into an agreement with Clarus Securities, on behalf of a syndicate of underwriters pursuant to which the underwriters have agreed to purchase, on a “bought deal” basis, 18,987,400 Common Shares of the Company at a price of C$11.85 per Common Share for aggregate gross proceeds to the Company of C$225,000,690. In the event the over-allotment option is exercised in full, the aggregate gross proceeds of the offering will be C$258,750,794.
Cannabis Wheaton Income Changed its Name to Auxly Cannabis Group
Auxly Cannabis Group has changed its corporate name from “Cannabis Wheaton Income Corp.” (OTCQB: CBWTF) to “Auxly Cannabis Group Inc.”. The company commenced trading on the TSX Venture Exchange under the Company’s new name and under the trading symbol “XLY”, indicating the evolution of the business from a dedicated streaming platform to one that is immersed in all aspects of the cannabis value chain.
MedMen to Acquire Florida Cannabis License for $53 Million
MedMen Enterprises announced that it has signed a definitive agreement to acquire dispensary and cultivation assets from Florida based Treadwell Simpson Partnership and affiliates. As part of the transaction, MedMen will acquire Treadwell Nursery’s cultivation facility situated on 5 acres in Eustis, Florida and the right to open 25 medical marijuana dispensaries in the State of Florida.