On Thursday (October 4) new details were revealed on the joint venture between a Canadian licensed producer (LP) and beverage company Molson Coors Brewing (NYSE:TAP;TSX:TAP).

The alcohol company and HEXO (TSX:HEXO) unveiled the partnership between the two as it seeks to develop cannabis infused beverages for the recreational market. The joint venture, called Truss, will have former Molson executive Brett Vye act as CEO.


“When consumable cannabis is legalized in Canada, Truss will be ready to make its mark as a responsible leader in providing high-quality beverages for the Canadian consumer,” Vye said in a press release.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

The joint venture was first announced in August, with Molson taking a 57.5 percent controlling stake and HEXO, formerly known as Hydropothecary, gaining the remaining 42.5 percent.

Sebastien St-Louis, CEO of HEXO, will get a seat in the board of directors. As part of the transaction between the two companies closing, HEXO issued 11.5 million warrants to the Canadian division of Molson. These shares are excerisable to buy one HEXO share for a price of C$6.

“While we remain a beer business at our core, we are excited to create a separate new venture with a trusted partner that will be a market leader in offering Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages,” Frederic Landtmeters, president and CEO of Molson Coors Canada, said when the partnership was first unveiled.

These infused beverages have become a trend item of investment from cannabis producers and now beverage companies join other established seeking entries into the emerging cannabis space.

On Tuesday (October 2), Hugh Johnston, chief financial officer (CFO) of PepsiCo (NASDAQ:PEP) said the beverage company will be taking a critical look at the cannabis market. However, no deals were in place at the time.

The Coca-Cola Company (NYSE:KO) was forced to issue a statement in response to a report from BNN Bloomberg showing the soft drinks giant was in the final stages of a deal with Aurora Cannabis (TSX:ACB).

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

“Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time,” Coca-Cola said.

HEXO faces criticism from large investor

In September a letter from Riposte Capital, a company claiming to be the second largest public shareholder of HEXO, was made public demanding the company take critical steps to increase the value of its stock.

The letter even suggested for management to consider selling the company. In its letter, Riposte Capital estimated HEXO’s joint venture “could be worth multiples of the current market capitalization of HEXO today.”

One of the suggestions for action to take by HEXO included obtaining a “meaningful direct investment” from the alcohol partner. “In lieu of your pending proposal to issue warrants with a $6 strike, consider a direct placement for up to 20 percent of the equity at current levels in order to underpin the balance sheet and solidify distribution partnership,” the letter indicated.

Investor takeaway

Infused beverages, alongside edibles, will not be allowed in Canada at the start of legalization on October 17. However, the interest from these alcohol companies is clear to form partnerships and, in the case of Molson, participate in the creation of a new product.

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.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

First Units on Sale Today at Newburgh Dispensary with Availability Tomorrow at Carle Place , Forest Hills , and Plattsburgh Locations

With Enough Product to Supply Wholesale Partners by Month’s End

Keep reading... Show less

Aurora Cannabis Inc. (the “Company” or “Aurora”) (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today that it has scheduled a conference call to discuss the results for its first quarter fiscal year 2022 on Tuesday, November 9, 2021 at 5:00 p.m. Eastern Time | 3:00 p.m. Mountain Time . The Company will report its financial results for the first quarter fiscal year 2022 after the close of markets that same day.

Keep reading... Show less

Cannabis legalization in Canada brought the promise of global business opportunities, but it also led to missed potential in research on the medical side. 

Even before the days of adult-use legalization in Canada, the market had seen a barrage-like cycle of ups and downs, creating uncertainty about where to find solid investment opportunities.

Keep reading... Show less

Numinus Wellness Inc. (“Numinus” or the “Company”) (TSXV: NUMI), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced that it will participate in two upcoming events hosted by Microdose:

  • Psychedelic Capital to be held virtually on Thursday, October 28, 2021 . Payton Nyquvest , Founder and CEO of Numinus, will present at 1:45 p.m. ET . To attend, please register here .
  • Wonderland: Miami to be held at the Adrienne Arsht Center for the Performing Arts in Miami, FL on November 8-9, 2021 . Mr. Nyquvest and Dr. Evan Lewis , Founder & Director of the Neurology Centre of Toronto , will give a presentation called Psychedelic Neurology in the Treatment of Trauma on Monday, November 8 at 4:40 p.m. ET . In addition, Sharan Sidhu , Science Officer & General Manager of Numinus, will participate in the Patent Wars panel on Tuesday, November 9 at 4:30 p.m. ET . To attend, please register here .

For more information about the events or to schedule a one-on-one meeting with Numinus‘ management, please contact KCSA Strategic Communications at NuminusIR@kcsa.com .

Keep reading... Show less

Florida’s leading cannabis company to open three new Miami dispensaries

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), the largest multi-state operator (MSO) in the United States today announced the reopening of three medical marijuana dispensaries in Miami, Florida . The locations were formerly branded as Harvest House of Cannabis.

Keep reading... Show less