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Acreage Holdings Inc (OTCMKTS:ACRGF) Gets Significant Advantage In The US Market On Acquisition Plans By Canopy Growth Corp (NYSE:CGC)

Canopy Growth Corp (NYSE:CGC)’s planned takeover provides an immediate and significant advantage in the competitive market of the US to Acreage Holdings Inc (OTCMKTS:ACRGF). As per the previously agreed acquisition plan, both the firms have submitted the management circulars under the approved arrangement by the court under the Business Corporations Act.

The transaction is subject to the waiver of changes in the federal law of the US to allow distribution, cultivation, and possession of marijuana. The deal is also subject to the approval of the Toronto Stock Exchange and New York Stock Exchange. It is also subject to the approval of the shareholders in a meeting scheduled on June 19, 2019.

Cash consideration

Following the deal, the shareholders of Acreage will receive upfront cash for each share up to $2.63. Each share of Acreage will be converted to 0.5818 share of Canopy. It is at a premium of 40% to the subordinate voting shares 30-day volume weighted average trading price on April 17, 2019, on the CSE. The shareholders of Acreage will also benefit from its ability to meet the set growth with reduced capital. The shareholders of Canopy will benefit from turnkey and accelerated access to the cannabis market in the US. This, together with the expertise of Canopy, will propel the growth.

Board approval

The board of directors of both the companies has unanimously supported the deal. Management circulars of both Canopy and Acreage outline the benefits and risks that arise from the transaction to the shareholders. The shareholders will receive the circulars by mail.

If the transaction is implemented, the combined entity will benefit from the improved product line, distribution networks, and complementary assets. Acreage will get access to the trademarks, operational expertise, and intellectual property of Canopy.

Canopy Stock surges

The stock of Canopy has surged on May 23, 2019, following the news of the acquisition of a This Works, skin Care Company based in the UK. The deal is valued at $54 million in cash. The product line of This Works comprises sleep aid products and skin care products. This is a crucial deal for Canopy since it banks on CBD and hemp strategy for integrated manufacturer/ marketing platform.

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Marijuana

Canopy Growth Corp (NYSE:CGC) Unveils Spectrum Therapeutics

Canopy Growth Corp (NYSE:CGC), a company specializing in the production and distribution of cannabis, hemp and cannabis devices today unveiled Spectrum Therapeutics. The business guru says Spectrum Therapeutics will be a global brand.

The purpose of Spectrum Therapeutics

The company has over the recent years directed resources towards clinical and medical research operations. These include the Canopy Health Innovations (CHI), Spectrum Cannabis, and C3 Cannabinoid Compound Company. The purpose for the formation of C3 Cannabinoid Compound Company was to develop cannabinoid-based medical therapies. Spectrum Therapeutics is set to encompass all these.

Analysts support the move to incorporate all these entities into a single unified ecosystem. According to them, this will help a huge deal in integrating the organization’s medical efforts. It is about establishing one diversified global healthcare enterprise.

Spectrum Therapeutics hopes is looking to focus in the production and the supply of the single and the full-spectrum cannabinoid medical products. Asides from that, it will promote education among patients and give them support they need. The healthcare practitioners also won’t be left behind in these efforts.

A lot of resources will be directed towards the pre-clinical and clinical research. Most importantly, the business hopes to succeed on its quest to develop leading cannabinoid-based medicines.

A focus into the future

Analysts have applauded Spectrum Therapeutics for the recent acquisition of C3.   They think it is at the brink of taking over market leadership in the medical cannabis on a global scale. Spectrum Therapeutics will dedicate resources and efforts empowering physicians in Europe and the world at large.

The goal will be to educate them on the wide range of therapies drawn from the various cannabinoid-based medicines. Dronabinol, which happens to be C3‘s cannabinoid pharmaceutical drug can now be traced in stores in Switzerland, Germany, Austria, and Denmark. Dronabinol is going to be markete4d under the Bionorica Ethics branding.

The Canopy Growth Chief Medical Officer Dr. Mark Ware opines, “We also offer education for patients and healthcare professionals and are engaged in research to define the safety and efficacy of cannabinoid medicines and the development of new cannabinoid-based treatments.”

Spectrum Therapeutics says it will confirm that countries seeking to benefit from its medical cannabis education fall within the legal regulatory frameworks.

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Marijuana

Canopy Growth Corp (NYSE:CGC) Gets Its Food Into The European Market Through Cafina Acquisition

Canopy Growth Corp (NYSE:CGC) recently announced that it finalized its acquisition of Cafina, a licensed cannabis producer that is based in Spain in an all-cash deal.

The acquisition marks a key milestone for Canopy Growth because it represents an opportunity to tap into the European cannabis market. Cafina which also goes by the name Cáñamo y Fibras Naturales, S.L is one of Europe’s companies that have acquired a license to produce cannabis. Cannabis Growth will use the European firm to expand its marijuana production activities in a region that is considered among the best for cannabis growth.

Canopy Growth acquires Cafina

Cafina is based in Spain where it is licensed to cultivate and distribute cannabis that contains over 0.2% of the 0.2% of tetrahydrocannabinol (THC) chemical. The firm’s products are mainly used for research and medical purposes and are even exported to other countries and it also has a license to. Cafina runs its production activities in a greenhouse that measures 1,600 sq. ft. Canopy Growth has also secured a supply agreement with another Spanish-company that produces cannabis flowers.

Cafina came into existence in 2014 and its operations are based in the Alicante province in Spain. It has a strong team that is focused on crop R&D, hemp seed sales and cannabis production. It received its research and general license for cannabis from the Spanish Agency for Medicines and Health Products (AEMPS) in November last year.

“Operating multiple production assets within Europe will allow us to increase revenue in the EU free of supply constraints,” stated Canopy Growth CEO, Mark Zekulin.

The CEO also noted that his company is investing in low-cost and scalable production facilities of the two European countries. According to Zekulin’s announcement, it is a strategic acquisition because it aligns with the strategy that the company uses in Canada where it has cannabis production facilities distributed across seven different provinces.

Canopy Growth is one of the most successful companies in the cannabis and hemp industry. Its stock grew by 79% in 2018 and the announcement about the Cafina acquisition influenced the stock to surge by more than 4%.

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Marijuana

Valens Groworks Corp (OTCMKTS:MYMSF) Agrees To Provide Proprietary Technology To Canopy Growth Corp To Produce High-Grade Cannabis Resin

Valens Groworks Corp (OTCMKTS:MYMSF) has entered into a pact with Canopy Growth Corp to share its technology and methodologies. As per the terms of the accord, Canopy will make use of the methods and proprietary technology of Valens to produce high-grade cannabis using the whole flower. Valens will receive the first shipment of the entire flower for extraction in December 2018.

Valens receives standard cultivation and processing License

Valens received the license for standard cultivation and processing under Cannabis Act. The company will introduce its branded products for the recreational and medical markets through the sales network of Canopy before the end of March 2019. Valens will utilize the CraftGrow program of Canopy to supply good quality cannabis products to the customers.

Chief Executive Officer of Valens, Tyler Robson said the company is pleased to offer support to Canopy to produce innovative products with the help of its specialized extraction services. It is also banking on the CraftGrow partnership with Canopy to launch Valens branded products in 2019. Valens is playing a vital role in cannabis oils and intends to extend the processes to edibles in the future in supporting the cannabis market.

Product portfolio

Co-CEO and President of Canopy, Mark Zekulin said the alliance with Valens helps the company to develop and offer good quality oils for use in Softgels and support innovations. The company is pleased with the availability of good quality cannabis products to recreational customers and patients.

Valens is capable of processing over 78,000 kgs of cannabis in a year through its subsidiaries including Supra THC Services, Valens Farms, and Valens Agritech. It is a big boost for the Canopy to capitalize on the demand for cannabis.

The multi-year accords with Tarukino Holdings allow Valens to expand into edibles, cannabis-infused drinks, and topical markets. Valens mobilized funds of $27.3 million through bought deal prospectus offering. The company intends to use the proceeds to enhance extraction capacity at its Kelowna facility. Improvement in extraction capability allows Valens to enhance its geographic and domestic presence.

Valens signed a supply accord with Medigrowth Australia to provide cannabis products. The LOI is valid for three years. The deal allows Medigrowth to become a global leader.

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Marijuana

Canopy Growth Corp (NYSE:CGC) To Acquire Hiku Brands Co.; CEO Linton Confident Of Making Money Even If Pot Prices Drop

Canopy Growth Corp (NYSE:CGC) recently struck a fully diluted deal worth $350 million with Hiku Brands Co. Ltd. the owner of cannabis clothing and accessories selling Tokyo Smoke chain of coffee shops. With this deal that also includes options and warrants, the Ontario-based cannabis producer will gain 100% acquisition of the retailer.

Hiku is a budding company with all its attention focused on retail and its early steps have helped it create a brand identity among the clients by giving them an exclusive experience at its stores. The Chief Executive Officer at Canopy, Bruce Linton said that the retailer is thinking about products, brands, and alcoholic customer loyalty in a very smart way. Going forward, Hiku will sell recreational cannabis through its stores once it becomes legal from October 17, 2018.

The retailer has also applied for licenses in Alberta and will use the strategy in every province where private ownership is allowed. It seems that there will be a give and take relationship between Canopy and Hiku. According to Linton, “They need product to fill the stores. And we want to be able to have more and more stores. The reason Apple and Lululemon do well is they don’t sell you a computer or a workout outfit; they give an education platform and an experience. I think when you exit prohibition, you want to do that.”

The deal between Canopy and Hiku will be sealed only after two-thirds of shareholders of the retailer approves of it. The meeting for approval is expected to take place in August.

Drop in price will not affect Canopy, says Linton

 The CEO of Canopy, the largest marijuana company in the world is dreaming big as very shortly recreational cannabis will be legalized in Canada. The company has already started planning beyond dried bud and is aiming to get pharmaceutical patents and a big slice of the future marijuana beverage industry. According to Linton, even if the price of cannabis and related products comes down to zero, his company will still continue to make money.

The current month has been quite a busy one for Canopy as it acquired a medical marijuana company from Columbia, launched a Latin American subsidiary and then now has struck a deal with Hiku, the retail cannabis chain.

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Marijuana

North American Cannabis Holdings Inc (OTCMKTS:USMJ) Targets Merger Madness In Canadian Cannabis Market

North American Cannabis Holdings Inc (OTCMKTS:USMJ) reported expanding its M&A locations beyond the previously reported negotiations to buy a renowned medical marijuana dispensary in Canada. Steven Rash, the CEO, expressed that a countrywide legal recreational industry in Canada is going to advance the cannabis industry forward significantly.

The details

When the United States approves recreational marijuana countrywide, the firms that have the impetus from being developed in Canada will have a notable leg up on dominating the prospect in the U.S. They record a remarkable start with the initial dispensary acquisition under talks. The company is not stopping there. They project to witness major consolidation in the Canadian pot industry and they are beginning to advance a consolidation pipeline of their own.

CBS News recently announced on the cannabis consolidation activity in Canada in a publication. This article showcases an analysis by Ernst & Young on the industry and features current high-profile merger plans to include Aurora Cannabis hostile bid to buy CanniMed Therapeutics, and in turn, CanniMed’s attempt to takeover NewStrike Resources. It mentions Bruce Linton, the Chief Executive Officer of Canopy Growth Corp (OTCMKTS:TWMJF) told Ernst & Young that he anticipates the count of cannabis firms to narrow. Over the long term, he expects an industry with just two or three major players and group of craft producers.

In unrelated news, North American Cannabis and Puration Inc (OTCMKTS: PURA) reported combining initiatives on former’s previously reported talks to buy a renowned medical marijuana dispensary in Canada. Puration recently reported plans to launch cannabis infused drinks into the approved $8 billion Canadian marijuana industry. The two firms have added to North American talks an anticipated exclusive right for the Canadian dispensary cannabis extractions to originate exclusively from Puration using its patented extraction process.

In the last trading session, the stock price of North American Cannabis traded in a narrow range to close flat at $0.00040.

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