This past week, a leading Canadian cannabis retailer announced it plans to pursue business opportunities in the US market.
Meanwhile, two longstanding cannabis partners ended their relationship.
Keep reading to find out more cannabis highlights from the past five days.
Following US listing application, retailer pursues American marketplace
Fire & Flower said on Monday (February 22) that it will license its store brand, store operating system and Hifyre technology platform for the set up of dispensaries in California, Arizona and Nevada via a private company operating as American Acres Managers.
“Securing an agreement that will rapidly place Fire & Flower licensed stores in the United States is the first step in executing our vision well ahead of federal legalization in the United States,” CEO Trevor Fencott said in a statement.
The US market has quickly gained steam as the most in-demand sector to cover for Canadian cannabis companies as chatter has picked up about potential policy changes for the country.
The company went as far as to say it anticipates that the first Fire & Flower store will open in the initial half of the 2021 fiscal period in Palm Springs, California.
Canopy Growth closes relationship with spin-off company
As part of the transaction, Canopy Growth will walk away with a 20 percent stake in TerrAscend (CSE:TER,OTCQX:TRSSF), a cannabis operator with US assets. However, Canopy Growth can’t exercise the shares it owns in the company until there is a change in federal permissions for cannabis in the US.
For RIV Capital, this now means the company is free to fully pursue investments in the US cannabis market. “We believe that the evolving regulatory environment and market conditions make now an ideal time to enter the US, the most attractive cannabis market in the world,” Narbé Alexandrian, president and CEO of RIV Capital, said in a statement.
RIV Capital also told investors that the company “may initiate the process to de-list from the TSX and list its securities on a stock exchange that does not prohibit such investments or acquisitions at such time.”
Cannabis company news
- The Valens Company (TSX:VLNS,OTCQX:VLNCF) issued fiscal results for Q4 2020 as well as the full year. “Moving into 2021 with a transformed business model … Valens is focused on three key initiatives — growing unit volumes per SKU, increasing Cannabis 2.0 and 3.0 product market share, and driving revenues in new consumer verticals,” Valens CEO Tyler Robson said.
- High Tide (TSXV:HITI,OTCQB:HITIF) confirmed an update to its balance sheet. Raj Grover, president and CEO of High Tide, said the company’s financials have never been stronger. He added that the company will now go ahead and pursue potential acquisition deals.
- Aphria (NASDAQ:APHA,TSX:APHA) and Tilray (NASDAQ:TLRY) jointly announced the launch of a website (www.aphriatilraytogether.com) to share details and updates with investors on the progress of their combination deal. “Together, Aphria and Tilray expect to have a robust strategic footprint in Canada and internationally with the operational scale necessary to compete more effectively in today’s consolidating cannabis market,” Aphria CEO Irwin Simon said.
- Australis Capital (CSE:AUSA,OTCQB:AUSAF) completed its planned acquisition of a 51 percent stake in ALPS, which will lead to the appointment of Terry Booth as CEO once the deal closes.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.