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As 2019 wraps up, marijuana industry observers are left to pick up the pieces of a chaotic year — a period that gave investors one of the strongest market reality checks so far.
Despite critical political movement alongside the development of new product varieties, investors and companies faced the crushing aspect of growing pains for marijuana stocks. Long gone are the days of inexplicable double-digit price jumps based on sentiment.
Here, the Investing News Network (INN) offers a look back at the most critical developments in the industry alongside commentary about cannabis trends from 2019.
Cannabis trends 2019: New financial reality for marijuana investments
This past year has offered a new set of standards for those interested in investing in marijuana stocks. A fresh reality has set in, with analysts and investors demanding higher scrutiny from their picks and no longer taking announcements purely at face value.
“Investors have started to ask more discerning questions about each opportunity, to differentiate business models and to focus on the path to profitability,” Jeff Fallows, president of Valens GroWorks (TSXV:VGW,OTCQX:VGWCF), told INN.
But what’s at the core of these drastic sentiment changes? For many experts, the sector is simply maturing; while it’s been a difficult time for investors, it is a necessary step in the creation of a market.
While in the past companies with little relation to the established players in the industry would enjoy share price boosts during upswings for the entire market, the key now is differentiation.
Although many expected that the opening of legal sales in Canada would create a thriving market, the actual results have highlighted the slow pace of expansion in the country.
Due to a limited amount of stores in critical markets such as Ontario and British Columbia, sales have been a disappointment, according to Mark Noble, senior vice president of exchange-traded fund (ETF) strategy at Horizons ETFs Management (Canada).
In an email, Sherri Altshuler, partner and co-chair of capital markets and cannabis groups at Aird & Berlis, said the volatility this past year was due to “growing investor distrust and demand for results.”
Yet one of the hotbeds for the cannabis market — the Canadian Securities Exchange (CSE) — saw another year of growth regarding its marijuana holdings.
“The top 10 companies that have raised the most money on the CSE in 2019 are all cannabis companies, and the number of cannabis companies listed on the CSE have remained constant through the year,” Richard Carleton, CEO of the CSE, said in a newsletter from Aird & Berlis.
This shift, according to Altshuler, has also caused a drop in go-public transactions and financing activity across the board.
“The concern about valuations was certainly warranted, as we’ve seen more than a 40 percent decline in the sector year-over-year,” Noble told INN.
Investors have adjusted in many different ways throughout 2019. Ashley Chiu, EY’s cannabis strategic growth and risk leader, told INN she noticed a change from talk about “funded capacity” as a metric for cannabis companies to more direct discussions on the road to profitability instead.
Volatility was also strong in the market given the strong Canadian retail investor base for cannabis stocks, Noble told INN.
“There is very little institutional money in the marijuana sector, so these investors can be deterred by changes in the market very quickly,” he said.
Cannabis trends 2019: US investor interest picks up
This past year served as the culmination of a shift in investor attention from Canada to the US. While interest remains present for Canadian leaders, experts have noticed more interest in US stocks, mostly due to the bigger opportunity attached to the country and the discount in valuations for US names.
“While we correctly judged that the US market would grow faster than Canada during 2019, we were surprised by the magnitude of the underperformance in Canada,” said Charles Taerk, president and CEO of Faircourt Asset Management, and Doug Waterson, CFO and portfolio manager with Faircourt Asset Management. The duo co-manages the Ninepoint Alternative Health Fund.
Multi-state operators commanded the attention of investors with constant state expansions and with solidification in particular states. However, these companies faced a critical challenge thanks to antitrust reviews from the federal government because of the size of their acquisitions in the space.
While these reviews caused some investors to worry about the state of the market, one expert views them as a beneficial marker for the industry moving forward.
Russell Stanley, an analyst covering the sector with Beacon Securities, told INN he noticed the uncertainty rising within the sector due to the delay in deal completions associated with Hart-Scott-Rodino antitrust regulations. But he indicated the oversight may benefit the space since the companies will be able to better structure their transactions, or might even completely change course.
“This has reduced the balance sheet strain faced by companies today, while minimizing the risk and magnitude of eventual acquisition-related writeoffs,” Stanley commented to INN. “Buyer’s remorse is not necessarily a bad thing.”
Despite the rush for the US markets, Stanley told INN he was surprised to see the failure of full legalization in key states like New York, New Jersey and Connecticut.
“There had been so many state-level victories leading up to spring 2019 that the loss of momentum caught many off guard,” he said.
Cannabis trends 2019: Scandals tarnish industry’s reputation
The Canadian cannabis market took a brutal hit as revelations of wrongdoings from established licensed producer CannTrust Holdings (NYSE:CTST,TSX:TRST) came in. The firm willingly operated outside regulations from Health Canada and paid the price.
Alongside the downfall for CannTrust, including the public outing of its then-CEO Peter Aceto and Eric Paul, a former CEO and chairman, the sector faced increased questions of accountability and regulations.
“Unfortunately, these revelations caused investors to lose confidence in a sector that was already having a difficult year,” Taerk and Waterson told INN.
Scott Cuthbertson, vice president of investor relations with Biome Grow (CSE:BIO,OTCQB:BIOIF), told INN he still views this case as the most striking item of the year. Cuthbertson said CannTrust, being “foolish enough to try and do what they did,” dragged the entire sector with it.
Cannabis trends 2019: Investor takeaway
During 2019, investors learned of the very real pitfalls in the marijuana stock market; however, the sector still enjoyed a period of maturation that may — in the long run — benefit the entire space.
At the MJBizCon year-end event in Las Vegas, Nevada, an immediate theme appearing out of the first day of panels was the need to understand that investing in marijuana is still a desirable activity; put simply, the market has evolved enough that fundamentals will now dominate the picks in the space.
“In our view, 2019 showed investors that not all business models are the same, and potential investment gains lie in identifying the companies that have a strategic advantage, a strong balance sheet and a clear path to profitability,” Fallows from Valens GroWorks told INN.
As equity becomes more expensive and a variety of companies are set to face an even more critical market, investors will have to be wary of the names they support as differentiation becomes key among cannabis competitors.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Biome Grow, Heritage Cannabis Holdings and Valens GroWorks are clients of the Investing News Network. This article is not paid-for content.
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.
Aphria Inc.’s Adult-Use Brands Good Supply and Solei Introduce High Potency Oils to its Product Lineup
Good Supply enters the oil category for the first time with THC 30:0, formulated to contain the highest allowable, cannabinoid content currently available in the Canadian market.
Solei expands successful oil lineup to include Solei Plus+ in Free and Balance Moments.
Aphria Inc. (” Aphria “, ” we “, or the ” Company “) (TSX: APHA) ( NASDAQ: APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their best life, today announced the addition of Good Supply’s THC 30:0 and Solei Plus+ high potency oils to its award-winning adult-use brand portfolio, which join a range of other formats available, including whole dried flower, pre-rolls, oral sprays, soft gels, vapes and topicals.
Based on Headset data, high potency oils dominate the category with nine out of the top 10 bottled oils sold being high potency oils 1 in BC, Alberta , Saskatchewan and Ontario . To meet this demand, Solei and Good Supply’s new high potency oils offer consumers convenient and versatile options that are distillate-based for a virtually odorless and tasteless experience.
“At Aphria Inc. we understand the importance of offering consumers flexibility when it comes to consumption options, which is why expanding our portfolio to include high potency oils was a priority to the team,” said Irwin D. Simon , Chief Executive Officer at Aphria Inc. “We continue to make it our priority to provide Canadians with the highest quality cannabis and the addition to high potency oils is no exception.”
Good Supply is one of Canada’s leading cannabis brands in the vapes and flower category 2 and a favourite among budtenders 3 . For the first time, Good Supply is introducing a distillate-based oil, which is available in select markets in April 2021 . Good Supply THC 30:0 is a convenient, high potency option containing the maximum allowable THC content (30mg per gram) on the market, but without the after taste.
Widely known for its success in the oils category as one of the best-selling CBD oil of 2020 4 and KIND Magazine’s CBD Brand of the year in 2020 5 , Solei continues to build its distillate-based oil offerings, by adding the new Solei Plus+ high potency oil to its innovation lineup. Solei Plus+ is made from sungrown cannabis, which is diluted into RSPO 6 certified MCT oil. This smoke-free option has three times the cannabinoid content of Solei’s current oils. Solei Plus+ is available in two cannabinoid profiles: Balance (15mg CBD, 15mg THC) and Free (30mg CBD, 1mg THC) and is available in select markets.
About Aphria Inc.
Aphria Inc. is a leading global cannabis-lifestyle consumer packaged goods company with operations in Canada , United States , Europe and Latin America , that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body and soul and invoke a sense of wellbeing. Aphria’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. Headquartered in Leamington, Ontario , Aphria cultivates, processes, markets and sells medical and adult-use cannabis, cannabis-derived extracts and derivative cannabis products in Canada under the provisions of the Cannabis Act and globally pursuant to applicable international regulations. Aphria also manufactures, markets and sells alcoholic beverages in the United States.
For more information, visit: aphriainc.com
1 Headset Canadian Insights (AB, BC, SK, ON retail stores) – Jan to Mar 2021
2 Headset Canadian Insights (BC, AB, SK, ON retail stores) – Jan to Mar 2021
3 Kind Magazine Awards – Dec 2020
4 Headset Canadian Insights (BC, AB, SK, ON retail stores) – Jan to Dec 2020
5 Kind Magazine Awards – Dec 2020
6 Roundtable on Sustainable Palm Oil (RSPO), https://rspo.org/
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SOURCE Aphria Inc.
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Aphria Inc. (” Aphria “) (TSX: APHA) (NASDAQ: APHA), a leading global cannabis-lifestyle consumer packaged goods company, today announced that its holders (the ” Aphria Shareholders “) of Aphria’s common shares (the ” Aphria Shares “) at the special meeting of Aphria Shareholders (the ” Meeting “) approved the previously announced arrangement (the ” Arrangement “) under the Business Corporations Act ( Ontario ), pursuant to which, among other things, Tilray, Inc. (” Tilray “) and following the Arrangement, the ” Combined Company “) will acquire all of the issued and outstanding Aphria Shares. Pursuant to the Arrangement, the Aphria Shareholders will receive 0.8381 (the ” Exchange Ratio “) of a Tilray share of class 2 common stock (the ” Tilray Shares “) for each Aphria Share held, while holders of Tilray Shares (the ” Tilray Stockholders “) will continue to hold their Tilray Shares with no adjustment to their holdings.
The special resolution approving the Arrangement (the ” Arrangement Resolution “) was required to be passed by at least two-thirds (66 2/3%) of the votes cast at the Meeting by the Aphria Shareholders voting virtually or represented by proxy at the Meeting. A total of 108,409,367 Aphria Shares were represented by proxy at the Meeting, representing approximately 34.43% of the issued and outstanding Aphria Shares. Of the total Aphria Shares voted, 99.38% voted FOR the Arrangement.
Irwin D. Simon , Aphria’s Chairman and Chief Executive Officer, who will hold these same roles with the Combined Company, commented, “I want to thank all Aphria Shareholders for voting and approving the Arrangement. We appreciate their support, as we believe the business combination will create a Combined Company with a strong financial profile, low-cost production, market share leading brands, distribution network and unique partnerships,.The Combined Company will be increasingly well positioned to deliver a sustainable attractive return for our combined shareholder base.”
Closing of the Arrangement remains subject to certain customary closing conditions, including court approval and the approval of Tilray Stockholders.
Aphria Shareholder Questions and Assistance
Aphria Shareholders who have questions or require further information about the Arrangement may contact Laurel Hill Advisory Group, Aphria’s proxy solicitation agent, by telephone at 1-877-452-7184 (North American Toll-Free), or 1-416-304-0211 (Outside North America), or by email to firstname.lastname@example.org .
We Have A Good Thing Growing
About Aphria Inc.
Aphria Inc. is a leading global cannabis-lifestyle consumer packaged goods company with operations in Canada , United States , Europe and Latin America , that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body and soul and invoke a sense of wellbeing. Aphria’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. Headquartered in Leamington, Ontario , Aphria cultivates, processes, markets and sells medical and adult-use cannabis, cannabis-derived extracts and derivative cannabis products in Canada under the provisions of the Cannabis Act and globally pursuant to applicable international regulations. Aphria also manufactures, markets and sells alcoholic beverages in the United States . For more information, visit: aphriainc.com .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking information or forward-looking statements (together, ” forward-looking statements “) under Canadian securities laws or within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. The forward-looking statements are expressly qualified by this cautionary statement. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. Any information or statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements, including, but not limited to, statements in this news release with regards to: (i) the Arrangement; (ii) the expected strategic and financial benefits of the Arrangement; and (iii) statements regarding the value and returns to Aphria Shareholders expected to be generated by the Arrangement. Aphria uses words such as “forecast”, “future”, “should”, “could”, “enable”, “potential”, “contemplate”, “believe”, “anticipate”, “estimate”, “plan”, “expect”, “intend”, “may”, “project”, “will”, “would” and the negative of these terms or similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Certain material factors or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this news release, including the ability of Aphria and Tilray to receive, if at all, , in a timely manner and on satisfactory terms, the necessary shareholder and court approvals for the Arrangement, the conditions to closing of the Arrangement being satisfied, that the Arrangement will yield the expected strategic and financial benefits and generate returns for shareholders and other expectations and assumptions concerning the Arrangement. Forward-looking statements reflect current beliefs of management of Aphria with respect to future events and are based on information currently available to its management team, including the reasonable assumptions, estimates, analysis and opinions of management of Aphria considering its experience, perception of trends, current conditions and expected developments as well as other factors that management believes to be relevant as at the date such statements are made. Forward-looking statements involve significant known and unknown risks and uncertainties. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. Factors that may cause such differences include, but are not limited to, risks assumptions and expectations described in Aphria’s and Tilray’s critical accounting policies and estimates; the adoption and impact of certain accounting pronouncements; Aphria’s and Tilray’s future financial and operating performance; the competitive and business strategies of Aphria and Tilray; the intention to grow the business, operations and potential activities of Aphria and Tilray; the ability of Aphria to complete the Arrangement; Tilray’s ability to provide a return on investment; Tilray’s ability to maintain a strong financial position and manage costs; the ability of Aphria and Tilray to maximize the utilization of their existing assets and investments and that the completion of the Arrangement is subject to the satisfaction or waiver of a number of conditions as set forth in the arrangement agreement entered into between Aphria and Tilray dated December 15, 2020 , as amended on February 19, 2021 (the ” Arrangement Agreement “). There can be no assurance as to when these conditions will be satisfied or waived, if at all, or that other events will not intervene to delay or result in the failure to complete the Arrangement. There is a risk that some or all the expected benefits of the Arrangement may fail to materialize or may not occur within the time periods anticipated by Aphria. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Combined Company difficult. Material risks that could cause actual results to differ from forward-looking statements also include the inherent uncertainty associated with the financial and other projections a well as market changes arising from governmental actions or market conditions in response to the COVID-19 public health crisis; the prompt and effective integration of the Combined Company; the ability to achieve the anticipated synergies and value-creation anticipated by Aphria; the risk associated with Aphria’s and Tilray’s ability to obtain the approvals of their shareholders required to consummate the Arrangement and the timing of the closing of the Arrangement, including the risk that the conditions to closing are not satisfied on a timely basis or at all; the outcome of any legal proceedings that may be instituted against Aphria and/or Tilray related to the Arrangement Agreement; the response of business partners and retention as a result of the announcement and pendency of the Arrangement; risks relating to the value of the Tilray Shares to be issued in connection with the Arrangement; the impact of competitive responses to the announcement of the Arrangement; and the diversion of management time on transaction-related issues. Readers are cautioned that the foregoing list of factors is not exhaustive. Other risks and uncertainties not presently known to Aphria or that Aphria presently believes are not material could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of risks and other factors, see the most recently filed annual information form of Aphria made with applicable securities regulatory authorities and available on SEDAR and EDGAR. The forward-looking statements included in this news release are made as of the date of this news release and Aphria does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Additional Information About the Arrangement and Where to Find It
This news release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. This release is being made in respect of the proposed Arrangement involving Aphria and Tilray pursuant to the terms of an Arrangement Agreement and may be deemed to be soliciting material relating to the proposed Arrangement.
In connection with the Arrangement, Aphria and Tilray have filed a joint proxy statement/management information circular (the ” Circular “) containing important information about the Arrangement and related matters. The Circular has been made available by Aphria on its SEDAR profile and is available on EDGAR. Additionally, Aphria will file other relevant materials in connection with the Arrangement with the applicable securities regulatory authorities. Investors and security holders of Aphria are urged to carefully read the entire Circular (including any amendments or supplements to such documents), respectively, before making any voting decision with respect to the Arrangement Resolution because they contain important information about the Arrangement and the parties to the Arrangement. The Circular has been mailed to Aphria Shareholders and is accessible on Aphria’s SEDAR and EDGAR profile.
Investors and security holders of Aphria are able to obtain a free copy of the Circular, as well as other relevant filings containing information about Aphria and the Arrangement, including materials incorporated by reference into the Circular, without charge, under Aphria’s profile on SEDAR at www.sedar.com or from Aphria by contacting Aphria’s investor relations at email@example.com .
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SOURCE Aphria Inc.
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OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 11,000 U.S. and global securities, today announced the first quarter 2021 performance and quarterly rebalancing of the OTCQX® and OTCQB® indexes, including the OTCQX Canada Index and the OTCQX Dividend Index.
The OTCQX Composite Index (.OTCQX), a benchmark for the overall OTCQX Best Market, was up 3.9% in the first quarter. Fifty-eight new companies were added to the index, including: AYR WELLNESS INC. (OTCQX: AYRWF); Blackstone Minerals Ltd . (OTCQX: BLSTF); Integrated BioPharma, Inc. (OTCQX: INBP); Newcore Gold Ltd. (OTCQX: NCAUF); Tilt Holdings Inc. (OTCQX: TLLTF); The Trendlines Group Ltd . (OTCQX: TRNLY), and Zoetic International PLC (OTCQX: ZOEIF). Twenty-seven were removed from the index, including Lexaria Bioscience Corp. (LEXX) which graduated to Nasdaq on 1/12/2021 and URBAN-GRO. (UGRO) which graduated to Nasdaq on 2/12/2021. Midas Gold Corp. changed its name to Perpetua Resources Corp. (PPTA) and graduated to Nasdaq on 2/18/2021. Ferguson Plc (FERG) graduated to NYSE on 3/8/2021.
The OTCQX Billion+ Index (.OTCQXBIL), which tracks the performance of $1 billion -plus market cap OTCQX companies, was up 3.6% for the quarter. Nine companies were added to the index including: Atlantic Sapphire ASA (OTCQX: AASZF); Bombardier Inc. (OTCQX: BDRBF); Bitwise 10 Crypto Index Fund (OTCQX: BITW), and TerrAscend Corp. (OTCXQ: TRSSF)
The OTCQX Dividend Index (.OTCQXDIV), which tracks dividend-paying U.S. and international OTCQX companies, was up 3.6% in the quarter. Fourteen new companies were added to the index including: Britvic plc (OTCQX: BTVCY); Endeavour Mining Corporation (OTCQX: EDVMF); Prime Meridian Holding Co. (OTCQX: PMHG), and TAG Oil Ltd. (OTCQX: TAOIF)
Fifteen companies were removed.
The OTCQX Banks Index (.OTCQXBK), comprised of OTCQX community and regional banks, increased 15.9% in the first quarter. Twelve banks were added to the index in the quarter and four companies were removed. The twelve banks added were: Century Next Financial Corp (OTCQX: CTUY); Equitable Financial Corp. (OTCQX: EQFN); Grand River Commerce Inc. (OTCQX: GNRV); InBankshares, Corp (OTCQX: INBC); JD Bancshares, Inc. (OTCQX: JDVB); Morris State Bancshares, Inc. (OTCX: MBLU); Merchants & Marine Bancorp Inc. (OTCQX: MNMB); Pilot Bancshares, Inc. (OTCQX: PLBN); Prime Meridian Holding Co. (OTCQX: PMHG); Town Center Bank (IL) (OTCQX: TCNB); Two Rivers Financial Group, Inc. (OTCQX: TRVR), and Uwharrie Capital Corp (OTCQX: UWHR).
The OTCQX International Index (.OTCQXINT), a benchmark for international OTCQX companies, was up 3.0% for the quarter. Thirty-one new companies were added to the index including: Apollo Healthcare Corp. (OTCQX: AHCCF); BIGG Digital Assets Inc. (OTCQX: BBKCF); Earthasia International Holdings Limited (OTCQX: ETIHY); Frontier Lithium (OTCQX: LITOF); Steppe Gold Limited (OTCQX: STPGF) and Victory Square Technologies Inc (OTCQX: VSQTF). Twenty-two companies were removed.
The OTCQX Canada Index (.OTCQXCAN), which tracks Canadian OTCQX companies, was up 11.9% in the first quarter. Twenty-five companies were added to the index and eight companies were removed.
OTCQX U.S. Index (.OTCQXUS), a benchmark for U.S. OTCQX companies, was up 16.5% in the first quarter. Twenty-five companies were added to the index and thirteen companies were removed.
OTCQX Cannabis Index (.OTCQXMJ), a benchmark for cannabis companies, was up 26.0% in the first quarter. Eleven new companies joined the index. The eleven companies added were: Columbia Care Inc. (OTCQX: CCHWF); TPCO HLDG CORP. (OTCQX: GRAMF); Green Thumb Industries Inc. (OTCQX: GTBIF); Indiva Ltd. (OTCQX: NDVAF); Next Green Wave (OTCQX: NXGWF); Red White & Bloom Brands Inc. (OTCQX: RWBYF); Tilt Holdings Inc. (OTCQX: TLLTF); TerrAscend Corp. (OTCQX: TRSSF); Vireo Health International Inc. (OTCQX: VREOF); WeedMD Inc (OTCQX: WDDMF); Zoetic International PLC (OTCQX: ZOEIF). Eight companies were removed.
The OTCQB Venture Index (.OTCQB), which tracks the overall OTCQB Venture Market, was up 20.3% in the first quarter. One hundred-seven companies were added to the index and sixty-six companies were removed. FingerMotion (FNGR) graduated to OTCQX on 1/7/2021. KemPharm Inc. (KMPH) graduated to NASDAQ on 1/8/2021. Zoetic International PLC (ZOEIF) graduated to OTCQX on 1/8/2021. Tilt Holdings Inc. (TLLTF) graduated to OTCQX on 1/8/2021. Versus Systems (VS) graduated to NASDAQ on 1/15/2021. ComSovereign Holding Corp. (COMS) graduated to NASDAQ on 1/22/2021. AiXin Life International, Inc. (AIXN) graduated to OTCQX on 1/22/2021; Integrated BioPharma, Inc. (INBP) graduated to OTCQX on 1/22/2021; Crossroads Systems, Inc. (CRSS) graduated to OTCQX on 1/28/2021; Cuentas Inc. (CUEN) graduated to NASDAQ on 2/2/2021; Simply Inc. (SIMP) graduated to OTCQX on 2/8/2021; Reliance Global Group Inc. (RELI) graduated to NASDAQ on 2/9/2021; MustGrow BioLogics Corporation (MGROF) graduated to OTCQX on 2/12/2021; Antibe Therapeutics, Inc. (ATBPF) graduated to OTCQX on 2/16/2021; Amplitech Group Inc. (AMPG) graduated to NASDAQ on 2/17/2021; Greenbox POS (GBOX) graduated to NASDAQ on 2/17/2021; Novo Integrated Sciences, Inc. (NVOS) graduated to NASDAQ on 2/23/2021; BIGG Digital Assets Inc. (BBKCF) graduated to OTCQX on 2/23/2021; Briacell Therapeutics Corp. (BCTXF) graduated to NASDAQ on 2/24/2021; Ares Strategic Mining Inc (ARSMF) graduated to OTCQX on 3/2/2021; PyroGenesis Canada Inc. (PYR) graduated to NASDAQ on 3/11/2021; Taat Lifestyle & Wellness Ltd. (TOBAF) graduated to OTCQX on 3/23/2021; Gratomic Inc. (CBULF) graduated to OTCQX on 3/26/2021, and Franklin Wireless Corp. (FKWL) graduated to NASDAQ on 3/29/2021.
For a list of all index additions and deletions, visit https://www.otcmarkets.com/files/Quarterly_Index_Constituent_Changes.pdf
All indexes are market capitalization-weighted and adjusted on a quarterly basis for additions and share changes over 5% during the months of March, June, September and December. In the case of ADRs, the DR ratio is considered. Dividends are re-invested as of the close of business the day before the ex-dividend date.
The OTCQX Composite Index, OTCQX Billion+ Index, OTCQX Dividend Index, OTCQX International Index, OTCQX U.S. Index, OTCQX Banks Index, OTCQX Cannabis Index, and OTCQB Venture Index have minimum liquidity screens to ensure tradability.
All index data is priced in real-time and is available on the OTC Markets Group website, www.otcmarkets.com , and via major financial data distributors and websites, including Bloomberg, Reuters and FT.com.
Past performance does not guarantee future results. Investors cannot invest directly in any of these indexes.
OTC Markets Group Inc. provides no advice, recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 11,000 U.S. and global securities. Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.
To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com .
OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.
OTC Markets Group Inc., +1 (212) 896-4428, firstname.lastname@example.org
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Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products and Bluma Wellness Inc. (“Bluma Wellness”), a vertically integrated operator in Florida, today announced the closing of the Company’s previously announced acquisition of Bluma Wellness.
– Cresco Labs now has meaningful operations in 10 states.
– The Company’s footprint includes all 7 of the top-10 most populated states in the country with cannabis programs.
– Florida, with more than 525,000 1 medical cannabis patients and a state population greater than 21 million people, represents one of the largest absolute growth opportunities among cannabis markets.
– Bluma Wellness’ competitive advantages in Florida include one of the state’s only cultivation facilities producing ultra-premium quality flower as well as a differentiated retail model including strategic, high-volume storefronts and an omnichannel sales platform.
– Operations include 8 dispensaries strategically located around the state, offering same-day delivery and curbside pickup. 7 more dispensaries are currently in permitting and/or are under construction.
– 54,000ft 2 of cultivation in Indiantown is currently under expansion and will continue to deliver premium craft flower at greater scale to support additional store openings and expanded product offerings.
“The closing today represents yet another strategic acquisition in a top-5 market that is true to our strategy – building the most strategic geographic footprint and achieving material market share positions within each state. Cresco Labs and Bluma Wellness have proven track records of operational execution and together have key advantages for growth and a clear pathway to scale. We look forward to amplifying operations and executing our playbook in Florida this year and in the years to come.” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs.
“We couldn’t be more excited to begin working with Cresco Labs to execute our shared vision for aggressive expansion in Florida,” said Brady Cobb, CEO of Bluma Wellness. “Cresco’s deep operational efficiency and relentless focus on quality, combined with Bluma’s best-in-state cultivation operations and innovative approach to retail, creates the perfect operating environment for our continued success in Florida.”
The acquisition was completed by way of a plan of arrangement (the “Arrangement”) under the provisions of the Business Corporations Act (British Columbia). Pursuant to the terms of the Arrangement, holders of common shares of Bluma Wellness (“Bluma Shares”) received 0.0859 subordinate voting shares of Cresco Labs (“Cresco Shares”) for each Bluma Share held. In total, Cresco Labs acquired 184,814,281 Bluma Shares, representing all of the issued and outstanding Bluma Shares, in exchange for 15,875,449 Cresco Shares.
It is anticipated that the Bluma Shares will be delisted from the Canadian Securities Exchange (“CSE”) as of the close of trading on April 14, 2021, and Bluma intends to submit an application to the applicable securities regulators to cease to be a reporting issuer and to terminate its public reporting obligations.
Pursuant to the letter of transmittal mailed to shareholders of Bluma Wellness as part of the materials in connection with the special meeting of Bluma Wellness shareholders held on March 19, 2021, in order to receive the portion of the Cresco Shares to which they are entitled, registered holders of Bluma Shares are required to deposit their share certificate(s) or DRS statements representing their Bluma Shares, together with a duly completed letter of transmittal, with Odyssey Trust Company, the depositary under the Arrangement. Shareholders whose Bluma Shares are registered in the name of a broker, dealer, bank, trust company or other nominee must contact their nominee to deposit their Bluma Shares.
About Cresco Labs Inc.
Cresco Labs is one of the largest vertically integrated multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer-packaged goods (“CPG”) approach, Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and comprised of some of the most recognized and trusted national brands including Cresco, High Supply, Mindy’s Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry’s largest Social Equity and Educational Development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com .
Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms and includes, but is not limited to, statements relating to the expected timing by which Bluma Wellness will be de-listed from the CSE and the intention to apply to have Bluma Wellness cease to be a reporting issuer and terminate its public reporting obligations. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2020 dated March 26, 2021, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs’ shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.
1 Florida Office of Medical Marijuana
Jason Erkes, Cresco Labs
Chief Communications Officer
Jake Graves, Cresco Labs
Manager, Investor Relations
For general Cresco Labs inquiries:
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Construction of New Facility Under Way
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce the appointment of commercial farming and construction expert, Josh Baker, to its Board of Directors today.
The appointment comes in conjunction with the Company’s first draw down of its recently secured $2M construction loan. Mr. Baker is the US-based lender’s nominee to the Board, who will provide guidance and stewardship while the loan is deployed to increase production capacity at the Company’s Daly Facility in Modesto, California.
Mr. Baker brings a wealth of relevant experience to the Board. He is a 6th generation farmer local to the Central Valley, with decades of experience building and operating commercial and residential family farms, giving him an intimate understanding of everything that goes into agricultural construction and how to optimally and efficiently grow and market crops.
As the Board Member representing the lender’s interests, Mr. Baker will monitor the construction project and confirm when each phase is complete.
Phase One, currently underway, includes the construction of a 6,000 sq ft vegetative room, and five new cultivation rooms that can produce up to 200 lbs of harvest every two weeks.
“I’m extremely excited to join TransCanna, and would not have joined if I didn’t see the tremendous potential here,” said Mr. Baker. “The $2M construction loan will help bring it to profitability, and I really see it becoming one of the greatest cannabis companies in California in the next three years.”
Bob Blink, Company CEO, said, “Everyone has hit the ground running with this new loan. As of today, we already have new construction workers at the facility, and expect to have plants in the new cultivation rooms within the next three weeks.”
The Company wishes to provide an update with respect to the previously announced Management Cease Trade Order (the “MCTO”) issued by the British Columbia Securities Commission on March 31, 2021. The MCTO was issued in connection with the delay by the Company in filing its annual financial statements, management’s discussion and analysis and related officer certifications for the financial year ended November 30, 2020 (collectively, the “Required Filings”) before the prescribed deadline of March 30, 2021. The Company continues to work closely with its auditor and expects to file the Required Filings on or before May 31, 2021.
The Company is providing this status update in accordance with National Policy 12-203 Management Cease Trade Orders (“NP 12-203”). The Company intends to follow the provisions of the Alternative Information Guidelines set out in NP 12-203, including the issuance of bi-weekly default status reports in the form of news releases. The Company confirms as of the date of this news release that there has been no material change in the information contained in the announcement issued on April 1, 2021, and there is no other material information concerning the affairs of the Company that has not been generally disclosed.
TransCanna Holdings Inc. is a California-based, Canadian-listed company building cannabis-focused brands for the California lifestyle, through its wholly-owned California subsidiaries.
TransCanna‘s wholly owned subsidiary Lyfted Farms is California’s authentic cannabis brand whose pioneering spirit has been continuously providing the finest cannabis flower genetics and cultivation methods since 1984. The Lyfted Farms brand of exclusive cannabis flower is sold at premium retailers throughout the state. With its new cultivation facility in Daly, California, the company is now poised to become one of the largest and most efficient vertically integrated cannabis companies in the California market.
On behalf of the Board of Directors
Bob Blink, CEO
Certain information in this release may contain forward-looking statements, such as statements regarding future expansions and cost savings and plans regarding production increases and financings. This information is based on current expectations and assumptions, including assumptions concerning the completion of the expansion of the Daly Facility, government approval of pro-cannabis policies, greater access to financial services and increased cultivation capacity, that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Risks that could cause results to differ from those stated in the forward-looking statements in this release include unexpected increases in operating costs, a continued strain on farmers due to fires and the Coronavirus pandemic and competition from other retailers. All forward-looking statements, including any financial outlook or future-oriented financial information, contained in this release are made as of the date of this release and are included for the purpose of providing information about management’s current expectations and plans relating to the future. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
Neither the Canadian Securities Exchange (“CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
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