In an agitating move, two Canadian cannabis companies have made recent moves to offload operational facilities.

Both Aurora Cannabis (NYSE:ACB,TSX:ACB) and Golden Leaf Holdings (CSE:GLH,OTCQB:GLDFF) are looking to get rid of some of their assets following a taxing summer for the marijuana markets.

The two firms are looking to dispose of these assets at low prices, compared to the previous valuation attached to licensed cultivation operations in Canada.

On Saturday (January 4), The Deep Dive reported on a new listing through Cushman & Wakefield of a former MedReleaf greenhouse based in Exeter, Ontario, for a price tag of just under C$17 million.

Aurora originally got its hands on the facility, which has a 105,000 kilogram annual production capacity, when it acquired MedReleaf in May 2018 in an all-stock transaction worth C$3.2 billion.

MedReleaf itself had purchased the 1 million square foot greenhouse a month prior to its acquisition for C$26 million.

The listing includes the 22 acre greenhouse, which sits on 70 acres of land, with an additional 95 acres of land available for C$2 million.

Though the listing isn’t explicitly labeled as an Aurora property, the address matches previous filings made by the company, according to The Deep Dive.

In an emailed statement to the Investing News Network (INN), Michelle Lefler, Aurora’s vice president of communications, confirmed the property for sale was indeed the one inherited by Aurora with its purchase of MedReleaf. Lefler added that the firm took time to evaluate the potential of the greenhouse for research and extraction purposes but “concluded that this non-operational greenhouse would require retrofit and significant capital investment in order to meet Aurora’s production standards.”

Lefler told INN that the planned sale of the Exeter facility is a part of Aurora’s goal to rationalize capital expenditure with concerns to its cultivation footprint.

“We expect that our production capacity, including the anticipated completion of 6 grow rooms at Aurora Sun, to be sufficient for near term demand,” said Lefler.

The news comes after Aurora told investors it would be halting the construction of two of its planned facilities to save a total of C$190 million in November.

Aurora’s share prices slipped 4.3 percent on Monday (January 6) and currently sit at C$2.48 as of 1:13 p.m. EST.

Golden Leaf is also relieving itself of some of its assets.

On Monday, the firm announced it would be selling its two Canadian subsidiaries, Medical Marihuana Group Corporation (MMG) and Medical Marijuana Group Consulting (MMC), to global cannabis company Sensi Brands for a total of C$3.4 million. The firm said the move was in preparation to shift towards the more “attractive” markets in the US, where operations have seen more lucrative cash flows.

Sensi Brands received all of the outstanding shares of MMG and MMC, while Golden Leaf will obtain C$1.8 million in cash, C$200,000 in an unsecured loan and C$1 million in a secured vendor take-back loan.

The sale includes the passing of Golden Leaf’s mortgage debt of C$400,000, as well.

Golden Leaf said that, while MMG consumed about C$475,000 in cash during Q3 2019, it recorded zero dollars in sales.

The company also said the sale of MMG and MMC helped strengthen its balance sheet, while maintaining its right to sell its proprietary line of Chalice Farms products in Canada, subject to the receipt of approval from Health Canada, the country’s federal cannabis regulator.

The company currently oversees operations in Nevada and California and dispensaries under its Chalice Farms brand across the Oregon market.

According to the US asset operator, this sale will be enough to fund its “key ongoing operations,” so it may meet its fiscal 2020 goals.

Over the past six months, shares for Golden Leaf have seen a steep decline of 71.4 percent, and prices opened at C$0.02 on Monday.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, is pleased to announce the appointment of Mr. Al Reese, Jr., to its Board of Directors

Mr. Reese has over 40 years experience in public and private businesses including as CFO of a formerly Nasdaq-listed energy company where he arranged finance transactions totaling over $10 billion dollars during his 20-year tenure. Mr. Reese was a Director and Chairman of the Audit Committee of a community bank in Texas for ten years until such time as it was acquired by a larger banking group in 2018.

Keep reading... Show less

Mexico looks to be closer than ever to cannabis reform, with the country releasing its regulation plans to make the drug legal in medical settings.

Meanwhile, despite the financial hardships seen recently in the Canadian cannabis market, CEOs in the country are still receiving top dollar, as per a new study.

Keep reading... Show less

Not for Distribution to United States Newswire Services or for Dissemination in the United States

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the pricing of its previously announced best efforts overnight marketed offering (the “Offering”) of subordinate voting shares (the “Offered Securities”) of the Company at a price of C$16.00 per share for a total gross proceeds of approximately US$125 Million. The issue price represents a 3.3% discount to the last close of the Company’s subordinate voting shares traded on the Canadian Securities Exchange as of January 14, 2021. 100% of the Offering is expected to be purchased by a total of seven new and existing institutional investors, including current shareholder, Wasatch Global Investors.

Keep reading... Show less

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN) Red Light Holland (OTC: TRUFF) (CSE: TRIP) and Aphria, Inc. (NASDAQ: APHA).

Investors are cheering new and expected legislation which is opening new market opportunities for both cannabis and psychedelics globally. Innovation in premium branding, growing technologies, manufacturing, with operational execution are key, in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders in cannabis and psychedelics:

Keep reading... Show less

Lexaria Bioscience Corp. (NASDAQ:LEXX)(NASDAQ:LEXXW)(CSE:LXX) (the “Company”) today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,828,571 units, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at a public offering price of $5.25 per unit (all prices in US$). The warrants have an exercise price of $6.58 per share, are immediately exercisable and will expire five years following the date of issuance. In connection with the Offering, the underwriter exercised in full its option to purchase an additional 274,285 shares of common stock and additional warrants to purchase 274,285 shares of common stock. The gross proceeds from the Offering were approximately $11.04 million, before deducting underwriting discounts and estimated offering expenses. No securities were offered or sold in Canada, including through the CSE or any other trading market in Canada

H.C. Wainwright & Co. (“Wainwright”) acted as the sole book-running manager for the Offering and is a non-related party to the Company.

Keep reading... Show less