Investopedia defines Initial Public Offerings (IPO) as the first time a company’s stock enters the market and becomes available for anyone to buy. Prior to entering the stock market, a company is considered private. Understandably, when a company enters the market, it results in excitement amongst investors, depending on the company doing so.
With the medical cannabis sector in Canada heating up, the recent IPO craze has been running parallel with recreational use slated for legalization in July 2018, making it an exciting space for publicly traded cannabis companies.
Indeed, the cannabis market well-positioned to be an exciting space to be in. For example, the first marijuana ETF launched in April 2017 on the Toronto Stock Exchange through the Horizons Medical Marijuana Life Sciences (TSX:HMMJ).


While the Canadian market is embracing cannabis with open arms, the situation is different in the US. Despite its legalization in a number of states, cannabis-related products are still illegal in the federal system.
On that note, the Investing News Network (INN) profiles some public cannabis companies with the biggest percentage gains since their IPO filings, and a look at who has filed to go public. The data below was acquired through stock information on Google Finance and company press releases.
These numbers are up to date as of 3:00 p.m. EST. on May 4, 2017.
Here’s a closer look at those publicly traded cannabis companies.

Canopy Growth (TSX:WEED)

The first on our list of publicly traded cannabis companies is Canopy Growth, who is the first Canadian marijuana company to surpass the $1 billion market cap. The company has received major buzz from investors as it was one of the first to receive official licensing from Health Canada. There are only 43 total licensed producers in Canada.
Since its upgrade from the TSX-Venture exchange to the TSX, Canopy was the only cannabis-related stock on the TSX until another member of the IPO boom was added.
Year-to-date, the company’s stocks have increased 0.66 percent to $9.20. Thanks to the acquisitions of Tweed, Bedrocan, and Mettrum Health, Canopy crossed the $1 billion market cap line.
Since going public on June 27, 2016, Canopy’s low-to-high gains total 1,0246.15 percent, with its highest trading date on November 15,  2016 when it reached $13.45.

Aphria (TSX:APH)

Aphria upgraded from the TSXXV and joined Canopy on the TSX on March 23, of this year.
Since the company’s promotion, its share price has increase 4.48 percent to $6.53.
Aprhia launched on the TSXV on December 8, 2014, then priced at $1.10. The company’s low-to-high gains total 669 percent, with its biggest trading day on April 10, 2017 when it reached $8.46.
On April 20, the company announced it had  raised $100 million for funding of continued expansion for a production facility.  Of that amount, $75 million was a bought equity financing, while the remaining totaled a  loan with the WFCU Credit Union. As noted by the release, that money is going towards securing Aphria’s expansion of production facilities.

Aurora Cannabis (TSXV:ACB)

On the much celebrated date of 4/20,  Aurora used that opportunity to announce it started selling ingestible cannabis oils thanks to a recent partnership with Radient Technologies (CVE:RTI).
Prior to that, the company announced that its  American stocks will be upgrading to the OTCQX market under the ABFF symbol.
As reported by Cantech Letter, Aurora closed its first day on the TSXV in October 2016 at 1.78.  This represents an 83.15 percent gain to its highest trading day on November 18, 2016, when it reached $3.26.
Year-to-date Aurora has seen a 19.13 percent increase to $2.74. In early 2017, the company completed a private placement deal for $75 million.


US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

Supreme Pharmaceuticals (CNSX:SL)

Supreme received conditional approval to be listed on the TSXV in early April. CEO John Fowler said the move would prepare the company for the next steps in the development of their cannabis business. The company expects the approval process to wrap up by mid-May.
Based on the company’s stock information, since its first day of trading at $0.25, Supreme’s low-to-high increase totals 696 percent, with its highest trading day on November 18, 2016 at $1.99.
Year-to-date, the company’s share price has gone down 5.06 percent to $1.52.
In 2016,  the company finished a private placement for $55 million, which will be used to expand its hybrid greenhouse facility in Ontario.

OrganiGram (TSXV:OGI)

Through a reverse takeover,  OriganiGram joined the TSXV on August 29, 2014 and closed its first day at$2.25. From then, up until its highest trading day on November 18, 2016 to$3.70, OrganiGram’s shares saw a 64.44 percent increase.
However, year-to-date OrganiGram’s shares have declined marginally by 1.03 percent to $2.87.
The company claims to grow its own product organically (hence the name), which the company describes as meaning “more care, more testing, more rules.” In addition to its cannabis products, the company also offers a variety of vaporizers.
The company is seeking to acquire Trauma Healing Centers.
“THC’s commitment to client care, specifically within the veteran community, is aligned with our client care commitment as part of our Canada’s Safest Cannabis initiatives,” Greg Engel, OrganiGram’s CEO said.
On that note, OrganiGram has been hit with a class action lawsuit from customers claiming damages from the banned pesticides found on the cannabis product. Earlier this year the company issued a recall based on this pesticide discovery
The CBC reported lawyers in the lawsuit have received “hundreds of calls” from consumers about the potential impact on their health.
“The Health Canada recall said dried marijuana and cannabis oil tested positive for low levels of myclobutanil and bifenazate,” reported CityNews.
OrganiGram issued a statement saying they would defend themselves relating to any recall incident.

Hydropothecary (TSXV:THCX)

One of the newest players to join the TSXV, by way of a reverse takeover, is  Hydropothecary. The company joined the stock market on March 21, 2017. Hydropothecary closed its first day at $1.55, while its highest trading day so far was April 11, 2017 when the company’s stock reached $2.79, representing an 80 percent increase since its launch.
Hydropothecary is the only Quebec-based producer officially licensed by Health Canada. The company received a license to sell cannabis oils last year – and said it plans to begin sales in the late spring of this year.
Despite wanting to go public prior to entering the market based, the company finally did so when marijuana legalization was announced in Canada.
“We really decided to do it because of our forecasting for the legalization of a recreational market,” Sebastien St. Louis, the company’s CEO, told the Financial Post.

Next cannabis IPOs?

Aaron Salz, founder, and CEO of Stoic Advisory and advisor for the cannabis market tweeted at the beginning of the year some of the licensed producers he thinks would be going public during 2017. Among those, he included ABcann Global, which The Seed Investor also suggested could be moving forward with a future IPO.


MedReleaf has announced their intention to go public, although the share price and the number of shares haven’t been revealed just yet.
Did we miss a marijuana IPO that’s filed to go public? Let us know in the comments? And don’t forget to follow us @INN_LifeScience 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: ABcann Global and Mettrum Health is a client of the Investing News Network. This article is not paid-for content.


US Election 2020 and Cannabis

 
Investing in cannabis? Read what experts have to say about cannabis and the US Election!
 

Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Aurora Cannibas, Inc. (“Aurora” or the “Company”) (NYSE:ACB) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired Aurora securities between February 13, 2020, and September 4, 2020, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.comacb

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.

Keep reading... Show less

Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”) reported its first quarter results for period ended Sept 30, 2020. A complete set of financial statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.

FY21 First Quarter Financial Highlights

Keep reading... Show less

Signed LOI for CAD$23 million sale to Ionic provides shareholder value

Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce that it has received and signed a non-binding letter of intent dated November 30, 2020 with IONIC Brands Corp. (“Ionic”) for the proposed sale to Ionic of certain assets held by Lobe related to Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) (the “Transaction”). Cowlitz is one of the top five licensed cannabis producersprocessors located in Washington State.

The assets being sold to Ionic may include, but are not limited to, the assignment of all property leases relating exclusively to Cowlitz’s business, the assignment of Lobe’s option agreement to acquire all of the outstanding shares of Cowlitz, and the assignment of other contracts and rights related exclusively to Cowlitz including service contracts and equipment leases (the “Assets“).

The Transaction is subject to several closing conditions, including but not limited to: (i) satisfactory due diligence by both Ionic and Lobe; (ii) completion of a definitive agreement with binding terms and conditions for the Transaction, including finalization of the specific Assets that will be sold and certain Cowlitz assets that may be retained by Lobe; (iii) all respective directors and officers of Lobe and Ionic entering into support agreements for the Transaction; (iv) approval by the boards of directors of both Lobe and Ionic; (v) the completion of a share consolidation by Ionic on a minimum of one new Ionic common share for every four and a half (4.5) old Ionic common shares (the “Ionic Consolidation“); (vi) the conversion of all Ionic debentures (with principal amount of approximately CAD$14.7 million) into a secured equity or a similar instrument (“Debt Conversion“); (vii) completion of a concurrent financing by Ionic for gross proceeds of at least US$2 million (the “Ionic Concurrent Financing“); (viii) Ionic having all cease trade orders issued against it lifted(2); (ix) Ionic applying to the CSE for requalification and qualifying for listing and resumption of trading(2); and (x) the receipt of all required shareholder and regulatory approvals, including the approval of the CSE. Following the closing of the Transaction, Ionic’s board of directors is expected to be comprised of five (5) members and Lobe will have the right to appoint two (2) directors to the Ionic board.

The sale price for the Assets shall be a minimum of CAD$23 million, payable through the issuance of Ionic post-consolidation common shares (being approximately 49% of Ionic’s estimated $47 million capitalization post-restructuring (after giving effect to the Ionic Consolidation and Debt Conversion)), prior to giving effect to the Ionic Concurrent Financing. Following the closing of the Transaction, it is expected that the Lobe will own approximately 49% of Ionic’s common shares, on a post-consolidation and pre-Ionic Concurrent Financing basis. Ionic is expected to have a minimum total capitalization valuation of CAD$47 million, pre-Ionic Concurrent Financing.

As previously announced, Lobe has been pursuing strategic alternatives for Cowlitz, aimed at maximizing its value to the Company. Cowlitz reported over US$14.6 million in gross sales revenues for the nine month period ended September 30, 2020, according to data provided on reports to the Washington State Department of Revenues(1). Lobe generates revenues through licensing and leasing agreements in place with Cowlitz.

Ionic is listed on the Canadian Securities Exchange(2) (the “CSE“) (CSE: IONC) and is a growing US-based cannabis company that focuses on premium cannabis products with current operations in Washington and Oregon. Ionic has completed a number of strategic synergistic acquisitions since 2019 aimed at growing revenues as a multi-state operator, and increasing their overall product lines and intellectual property portfolio. Ionic’s strategy has been focused on building a regionalized multistate operation of cannabis brands in the Pacific Northwest markets with an eye to expansion into other recreational markets and aggressive national expansion.

John Gorst, CEO of Ionic said, “We are excited about this opportunity to expand our presence in Washington State. Cowlitz has tremendous brand presence and following in Washington State, which we feel is a natural fit, complementing our existing operations. The combination will make us one of the largest premier cannabis companies in the Pacific Northwest markets. The acquisition of the Cowlitz Assets will represent a complimentary synergistic acquisition that achieves our goal of operational expansion and growth of our product portfolio.”

“The proposed transaction with Ionic is accretive to both parties, successfully meets our M&A initiatives and keeps Lobe active in the cannabis and overall transformation psychedelic medicine space,” states Tom Baird, CEO of Lobe. “The Transaction provides Lobe with significant ownership and board presence in Ionic. With its already significant operations in Washington State and Oregon, we feel Ionic’s proposed product expansion initiatives together with the addition of the Cowlitz Assets can lead to aggressive growth.”

About Ionic Brands Corp.

Ionic is dedicated to building a regionally based multi-state consumer-focused cannabis concentrate brand portfolio with strong roots in the premium and luxury segments of vape concentrates and edibles. The cornerstone brand of the portfolio, IONIC, is the #3 vaporizer brand in Washington State and has aggressively expanded throughout the Pacific Northwest of the United States. The brand is currently operating in Washington and Oregon. Ionic’s strategy is to be the leader of the highest-value segments of the cannabis market.

About Lobe Sciences Ltd.

Lobe is a growth-oriented research, technology & services company that provides financial, management, IP and branding support to businesses. The Company operates a portfolio of companies focused on developing transformational medicines and applies refined strategies to help partner companies reach their full potential. Based in Vancouver, BC, Lobe Sciences creates value through acquisitions and development of assets, products and technologies by leveraging its scientific, engineering, branding and operational expertise supported by strong capital markets acumen.

For further information please contact:

Lobe Sciences Ltd.
Thomas Baird, CEO
info@lobesciences.com
Tel: (949) 505-5623

THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

Disclaimer for Forward Looking Statements

This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact included in this release, including statements regarding the future plans and objectives of the Company, the Company’s expectations surrounding its development of treatments and/or therapeutics for mTBI and PTSD, the proposed Transaction and terms with Ionic and estimated capitalization of Ionic and share value to Lobe, Ionic having its cease trader orders lifted and resumption for trading on the CSE, future sales and expected revenues of Cowlitz and enhancing its value to the Company, are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are risks detailed from time to time in the filings made by the Company with securities regulations. Readers are cautioned that assumptions used in the preparation of the forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including changes to the regulatory environment; and that the current Board and management may not be able to attain the Company’s corporate goals and objectives. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made only as of the date of this news release and the Company does not intend to update any of the included forward-looking statements except as expressly required by applicable Canadian securities laws.

Keep reading... Show less

 Next Green Wave Holdings Inc. (CSE: NGW) (OTCQX: NXGWF) (“Next Green Wave“, “NGW” or the “Company”) is pleased to announce the following operational and financial milestones:

– In November 2020, the Company’s Adjusted EBITDA* was approximately US$1,000,000. This after already recording approximately US$1,000,000 in October 2020.

Keep reading... Show less

Wonder debuts in Illinois with low-dose Wonder Minis hard sweets for category newcomers to consume and control their experience with confidence

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 the launch of Wonder Wellness Co. (“Wonder”), the newest brand to join its expanding portfolio of national cannabis brands. Wonder addresses the direct needs of the large segment of consumers who are accepting of cannabis but have yet to enter the category. Created to take the guesswork out of cannabis, the portfolio offers low-dose, approachable forms that are simple to use with packaging that is easy to understand, so newcomers can explore the plant and control their experience with confidence. The brand debuts in Illinois with Wonder Minis, a line of 3 mg hard sweets focused on effects-driven benefits.

Keep reading... Show less