In the cannabis space this week, two key players in the industry agreed to adjust a major deal that they first announced to investors last year.

Meanwhile, expert speakers at an online marijuana event discussed ongoing issues in the market, including where investors are directing attention and the slow path to federal legalization in the US.

Read on for a closer look at some of the biggest cannabis news over the last five days.


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Canopy/Acreage deal value drops to US$843 million

News hit on Thursday (April 25) that Canopy Growth (TSX:WEED,NYSE:CGC) and Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF) have amended the terms of a unique deal that gives Canopy the option to acquire Acreage when cannabis becomes federally legal in the US.

The deal between the companies was first announced last April and was valued at a whopping US$3.4 billion. At the time, the arrangement was touted as a win for both parties — Canopy would eventually gain access to the US market, while Acreage would be able to draw on Canopy’s “deep pockets.”

This week’s announcement decreases the value of the transaction to US$843 million, according to BNN Bloomberg, a far cry from the original multibillion-dollar amount. According to the companies, the change was made partially due to current market conditions:

Considering the challenging economic environment and increasingly tighter and volatile financial market conditions, particularly for cannabis companies, Acreage determined that the New Arrangement represents the best available prospect that is compliant with the terms of the Arrangement Agreement to maximize potential value for Acreage shareholders.

Under the adjusted agreement, Canopy will make an upfront US$37.5 million payment to Acreage shareholders, which works out to about US$0.30 per existing share.

The arrangement will also see Acreage’s shares get split into fixed and floating classes — 70 percent of each existing Acreage share will be converted into a fixed share, with the remaining 30 percent converted into a floating share. Completion of the deal is still contingent on US federal legalization, and once it occurs Canopy will trade 0.3048 of a Canopy share for each Acreage fixed share; Canopy will also have the option to buy each floating Acreage share for a minimum of US$6.41.

Finally, Canopy will loan Acreage up to US$100 million to advance its hemp business.

Market watchers have had mixed reactions to the changes. Marijuana Business Daily quotes Cowen’s Vivien Azer as saying that it “significantly reduces potential dilution from the deal and provides some optionality.” The news outlet reported a less favorable reaction from Owen Bennett of Jefferies.


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“Assuming Acreage can remain a going concern until such time as we reach federal legalization … Canopy faces guaranteed dilution from a business that, given its current problems and huge cost base, is only likely to add to the pressures currently being faced,” he said in a note. Acreage took a share price hit earlier this month when it announced a short-term $15 million loan with an interest rate of 60 percent.

For its part, Canopy has been in the news lately due to its turnaround strategy, which was announced in April. It also released its most recent quarterly results about a month ago, disappointing investors.

Key takeaways from Prohibition Partners LIVE

Many events in the cannabis space have gone online recently due to COVID-19 restrictions, and the latest was this week’s Prohibition Partners LIVE conference. The two day gathering touched on a number of key issues in the space, including changes in what investors want to see from companies.

On the whole, there was agreement that investors have matured and now prefer a simplified approach with a focus on cash flow — in fact, Alan Brochstein of 420 Investor and New Cannabis Ventures went as far as to say that investors will penalize companies whose business models are too complex.

Click here to skip to the Investing News Network’s overview of Prohibition Partners LIVE.

Aside from that, speakers at the web-based event discussed what’s happening with federal legalization in the US, a process that has ended up being much more slow and complicated than many market watchers had hoped. Brochstein suggested that for reforms to happen, the Democrats will probably need to control both the House and the Senate.

For his part, Narbe Alexandrian, CEO of cannabis investment firm Canopy Rivers (TSX:RIV,OTC Pink:CNPOF), believes that it will take two to five years for federal legalization to come to the country.

Cannabis company news

  • Aleafia Health (TSX:AH,OTCQX:ALEAF) and Aphria (TSX:APHA,NASDAQ:APHA) have entered into a settlement agreement for a dispute surrounding a wholesale cannabis supply agreement. As per a press release from Aleafia, its subsidiary Emblem Cannabis will receive total consideration of C$29.1 million from Aphria. The deal was signed in 2018 and canceled in 2019.
  • Aurora Cannabis (TSX:ACB,NYSE:ACB) shared an update on its corporate restructuring plan, which was announced this past February. Among other adjustments, the company said it has put a plan in place to close five facilities over the next quarters, a move that will impact about 700 employees; Aurora’s aim is to focus production on its larger-scale and more efficient sites.
  • Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) signed an amended agreement for its acquisition of privately held GR Companies. The deal was first announced last year, and its value was pegged at US$875 million; now, like the Canopy/Acreage agreement, it has been downsized due to market conditions — in total, the acquisition is reportedly worth $700 million under the new terms. It is expected to close in the coming weeks, according to Curaleaf.
  • VIVO Cannabis (TSX:VIVO,OTCQX:VVCIF) entered into two deals with Shoppers Drug Mart, one for product supply and one for clinic services. The company will provide the store with branded medical cannabis products, as well as cannabis education services for patients.

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

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


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Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) (“Nextleaf”, “OILS”, or the “Company”), a federally regulated producer of cannabis oil that owns one of the largest portfolios of U.S. patents for the extraction and distillation of cannabinoids, is pleased to announce the Company has entered into a supply agreement with Quebec-based licensed producer Medicibis (“Mendo”) to supply its medical platform with Glacial Gold™ branded products.

Mendo operates an online portal for medical patients that ships nationwide through Glacial Gold™ CBD and THC vapes and distilled oils will be distributed by Mendo to their medical cannabis clients in Quebec and across Canada.

Quebec is the third-largest cannabis market in Canada, representing approximately 15%[1] of Canadian cannabis retail sales in the country, and approximately 22% of the Canadian population[2].

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Figure 1: Glacial Gold CBD and THC Vapes and Distilled Oils

To view an enhanced version of Figure 1, please visit:

Canadian spending on medical cannabis totaled $587 million in 2020[3]. Medical cannabis has become an important component of Canadian healthcare, with $119 million of medical cannabis purchases reimbursed by the Federal Government through Veterans Affairs Canada in 2020[4]. Despite Canada’s progressive cannabis regulation, price is still a major barrier for many medical patients.

Nextleaf leverages its patented high-efficiency ingredient processing technology to gain a competitive advantage and improve cannabis oil economics through the low-cost production of cannabis distillate standardized for potency and purity.

“Launching accessibly priced Glacial Gold™ vapes and distilled oils in Canada’s medical market and in Quebec have been important milestones for Nextleaf. We believe Mendo and their Quebec-based medical platform is positioned to become one of the leading suppliers of medical cannabis to patients and veterans in this country,” said Paul Pedersen, co-founder and CEO of Nextleaf Solutions. “Our innovative technology enables us to produce high purity ingredients at a low cost per molecule to offer patients quality CBD and THC products.”

“We are delighted to work with Nextleaf to offer Glacial Gold™ products through our recently expanded national portal, accessible by medical patients Canada-wide,” said Jay Schwartz, Director of Mendo Medical. “We are excited to feature the seven Glacial Gold™ SKUs that launched last month in British Columbia and to help them launch two new CBD SKUs that we think patients will be eager to experience.”

Nextleaf launched its award-winning, prohibition-era brand Glacial Gold™ in British Columbia last month, receiving national attention for quality products at disruptive price points. Included in the initial launch of Glacial Gold™ were seven total SKUs, consisting of four 1-gram vape SKUs and three distilled oil SKUs.

Glacial GoldDistilled CBD 50 Oil, Distilled THC 30 Oil, and Distilled 30:30 Blend feature high-purity distillate in a base of organic coconut MCT oil for a premium consumption experience, without premium pricing. A clean tasting and neutral oil allows for the greatest flexibility in use and consumption occasions.

The initial vape lineup from Glacial Gold is offered in two potency levels to match the consumer’s tolerance level or consumption occasion. The Session THC Vape features a full potency THC profile for cannabis enthusiasts who seek a more elevated experience and connection. The Anytime 1:1 Vape is formulated with a balanced THC and CBD profile for consumers looking for a more moderate, go-to vape.

About Medicibis

Medicibis is a federally licensed producer of dried cannabis and distributes its products under the brand name ENDO. Medicibis operates out of its 20,000 sq.ft. facility located 15 minutes from downtown Montreal in St Jean Sur Richelieu. Medicibis operates an online portal for medical patients that ships nationwide through their website Mendo’s menu has been carefully curated to offer a variety of products from licensed producers from all over Canada. Mendo is positioned to become one of the leading suppliers of medical cannabis to patients and veterans in the country.

About Nextleaf®

Nextleaf is a federally regulated producer of cannabis oil that owns one of the largest portfolios of U.S. patents for the extraction and distillation of cannabinoids. Nextleaf distributes cannabis vapes and distilled oils under its award-winning prohibition-era brand, Glacial Gold™, and supplies cannabis distillate to its wholesale customers. Nextleaf’s proprietary closed-loop automated extraction plant in Metro Vancouver efficiently transforms cannabis and hemp grown in B.C. and throughout Canada into high-purity cannabis distillate at an industrial scale. Nextleaf is developing delivery technology and differentiated cannabinoid-based formulations through its Health Canada Research Licence with sensory evaluation of cannabis via human testing. The Company owns 17 U.S. patents and has been issued 95 patents globally.

Nextleaf Solutions trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.

Follow the Company across social platforms: Twitter, LinkedIn, Facebook, and Instagram.

Follow Glacial Gold™ across social platforms: Instagram, Twitter, and Facebook. www.Glacial.Gold

For more information please contact:
Jason McBride, Corporate Development
604-283-2301 (ext. 219)

On behalf of the Board of Directors of the Company,
Paul Pedersen, CEO

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s ability to capitalize on its IP portfolio, the Company’s strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company’s MD&A for the most recent fiscal period. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The CSE has not reviewed or approved the contents of this press release.

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