After several names in the Canadian cannabis space invested early into Australia, some firms are choosing to adjust their plans with respect to the country’s burgeoning medical marijuana sector.

In the past two weeks, Canopy Growth (NYSE:CGC,TSX:WEED), Cronos Group (NASDAQ:CRON,TSX:CRON) and Aphria (NYSE:APHA,TSX:APHA) all announced a significant change in plans for their Australian operations. Aphria’s was the most recent, coming on Wednesday (October 23).

Aphria is reportedly looking to sell 37 million shares of its minority stake in Australian cannabis producer Althea Group Holdings (ASX:AGH), according to a report from Australian Financial Review.

How does the cannabis market fare in Australia? Read our FREE outlook report on Australian cannabis investing!

Get an in depth market report for free!

The Ontario-based company has a total of 50.1 million shares, representing a 25 percent ownership stake in Althea.

Aphria originally invested C$2.5 million in the Melbourne cannabis firm back in 2018, allowing Aphria to sell marijuana products into Australia’s medical cannabis space.

In 2018, Althea received cultivation and manufacturing licenses and also launched its initial public offering (IPO) to list on the Australian Securities Exchange (ASX).

Cannabis giant Canopy Growth also announced it was divesting its stake in an Australia-based marijuana company.

Canopy Growth confirmed the sale of its 13.2 percent interest in AusCann Group Holdings (ASX:AC8), or over 42 million shares, ending the three-year relationship between the two firms. The company came away with C$6.3 million from the sale.

“The decision to divest our position in AusCann … will allow us to sharpen our focus on our wholly-owned operations in the market, while continuing to collaborate with our partners at AusCann,” Canopy Growth CEO Mark Zekulin said in the press release.

Cronos Group will split up with its Australian division by way of a new listing. Cronos Australia, a joint venture with NewSouthern Capital, plans to issue 40 million shares at AU$0.50 a piece ahead of its listing on the ASX, where it expects to list by November 11.

Like Aphria, Cronos plans on helping its Australian counterpart develop its position in the Australian cannabis landscape, according to Cronos Chairman and CEO Mike Gorenstein.

In a prospectus for the proposed company, it is noted that Cronos Australia seeks to lead the health and wellness space in the Asia-Pacific region, which will include export opportunities to New Zealand, though the distribution of tetrahydrocannabinol and cannabidiol products.

Medical marijuana was first legalized in the country in 2016 and since then the sector has grown. A report from Prohibition Partners projected medical cannabis in the country could be worth up to US$2.1 billion by 2028. In September, the Australian Capital Territory became the first region in Australia to fully legalize the recreational use of marijuana.

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.

Which Australian stocks are worth your investment? What do experts forecast for the Australian stock market? Read our FREE outlook report to learn more!

Get an in depth market report for free!

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