Additionally, a cannabis retail operator announced its intention to list its shares on the NASDAQ.
Keep reading to find out more cannabis highlights from the past five days.
Two Canadian producers join forces
The deal between Quebec-based HEXO and Zenabis represents another union between previous competitors, and is a sign of consolidation in the Canadian cannabis sector.
“We are proceeding with this transaction because we believe it should be accretive for our shareholders, and it also positions HEXO for accelerated domestic and international growth while supporting near-term requirements for additional licensed capacity,” said Sebastien St-Louis, CEO and co-founder of HEXO.
As part of the deal, Zenabis shareholders will get 0.01772 of a HEXO share per each Zenabis share.
The news this week from HEXO and Zenabis comes on the heels of the recent blockbuster combination between Tilray (NASDAQ:TLRY) and Aphria (NASDAQ:APHA,TSX:APHA). As mentioned, it’s part of a theme of more and more Canadian cannabis companies banding together.
Shai Altman, CEO of Zenabis, said the arrangement will benefit Zenabis and will pair the two companies on a path for international expansion. The deal comes after Zenabis confirmed in early January that it was investigating strategic alternatives to better serve investors.
Retailer on the rise after announcing NASDAQ listing
Shares of Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWF) rose this past week after the retail operator confirmed its application to list on the NASDAQ.
“This application to list on Nasdaq is a major step forward in expanding our shareholder base in the United States,” Fire & Flower CEO Trevor Fencott said in a statement to investors.
The company reaffirmed its intention to continue expanding in the Canadian market, while also pursuing “international opportunities for accelerated growth in the years ahead.”
In its announcement, the company said it hopes the US-based listing will help it reach a deeper pool of both retail and institutional investors looking for cannabis opportunities.
No timeline has yet been revealed for Fire & Flower’s NASDAQ listing. The company said it will retain its Toronto Stock Exchange listing as well.
Cannabis company news
- Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) issued a financial report for its third fiscal quarter of 2021. The company reported a net loss of C$73,799, blaming it partially on impairment charges and an accelerated amortization charge for a previous acquisition.
- Halo Collective (NEO:HALO,OTCQX:HCANF) added imported cannabis products to its lineup in the UK through its subsidiary Canmart. “We are pleased that Canmart has already been fulfilling medical prescriptions for patients as well as increasing awareness with educational programs for UK patients and physicians,” said Kiran Sidhu, CEO and co-founder of Halo Collective.
- Sundial Growers (NASDAQ:SNDL) confirmed a strategic investment agreement in Indiva (TSXV:NDVA,OTCQX:NDVAF) worth C$22 million, set to be completed by way of a brokered private placement. The investment funds will be used to end the company’s debt and establish a partnership between the two cannabis players.
- TerrAscend (CSE:TER,OTCQX:TRSSF) released its preliminary results for Q4 2020 and the full 2020 year. The company is expected to report strong Q4 sales, resulting in full-year sales worth C$198 million. It also still expects to hit its 2021 net sales target of C$360 million to C$380 million.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
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 that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).