With the cannabis market growing and excitement over its potential legalization, cannabis stocks have been reaping the benefits lately.
As the market blooms, the Investing News Network (INN) recently caught up with cannabis stock analyst Alan Brochstein for his thoughts on the Bill Blair report to prime minister Justin Trudeau expected this month, sector catalysts and the recent stock rally in the US Marijuana stocks.
Alan Brochstein’s 420 Investor is the go-to community for investors to learn, explore, and profit from the marijuana companies. The main goal of 420 Investor is to provide real-time, objective information about the top marijuana companies in the market in order to help investors capitalize on cannabis.
In particular, highlights of the conversation included:
- The Bill Blair Task Force Report
- The US cannabis stocks rally
- Cannabis sector Catalysts, including Sanjay Gupta’s infamous reversal and the Coleman Memorandum in Oregon and Washington.
- Recent mergers and acquisitions in the cannabis sector
- How the marijuana sector is attracting technology entrepreneurs from Silicon Valley
Below is a transcript of our conversation. It has been edited for clarity and brevity. Read on to see what Brochstein had to say.
INN: For readers that might not be familiar with your work, can you give us some background on yourself and new cannabis ventures?
AB: I’ve been in the cannabis industry since 2013, fulltime since early 2014.
Right after college, I went to work on Wall Street in the bond market and later in my career moved into investment management and shifted into equities. At the end of 2006, I started my own firm as an independent equity analyst providing research and consulting services to money managers. I was also was a blogger on Seeking Alpha and ran a few model portfolio services. That put me in a position in early 2013 when I first realised I was one of the first people to research cannabis stocks from an analytical perspective.
INN: What prompted you to start covering the cannabis sector? Can you give us some insight into new cannabis ventures?
AB: In early 2013 right after the 2012 elections,(cannabis was) legalized in Colorado and Washington. All of a sudden there were about eight to ten cannabis stocks–or purported cannabis stocks–that doubled in value.
I was a writer on Seeking Alpha and somebody published an article about one of these companies.
This article really spoke to me because on one hand, it pointed to the promise of legalization, but highlighted that there were scam companies out there..
As that year progressed, Sanjay Gupta issued his famous reversal. He was the Chief Medical Officer for CNN. He had been a pretty adamant opponent to medical cannabis and said it was a fraud. He then released the documentary Weeds and issued a Mea Culpa. He said he was wrong and that was one of the things I was looking for in terms of a major media figure embracing cannabis legalization for medicinal purposes.
In August, the federal government allowed Colorado and Washington to move forward by issuing the Coleman Memorandum. This was huge because everybody wanted to move forward, so the government gave Colorado and Washington the green light.
So, I launched 420 Investor in September 2013 to focus on the cannabis sector, the publicly traded stocks, and more recently New Cannabis Ventures.
INN: The cannabis sector’s heating up on both sides of the border with the US election arand the Bill Blair report to the Prime minister expected out this month. The report will follow the lead with states like Washington and Oregon which has successfully implemented recreational use of cannabis. Do you see something completely different in Canada?
AB: Yes. Canada’s a huge focus of mine. About a year ago in mid-October, right before the elections, I hosted a panel in Denver that had some of the leading CEOs from the sector there and it was like an empty room. . Part of Trudeau’s platform is to legalize cannabis. It’s been really interesting to see this play out.
I don’t think people widely appreciate that this Task Force Report will not be publically disseminated at first, so that’s the first thing. That’s something people should be aware of; there’s a timeline and the only things on it right now are the Task Force and introduction of the legislation which has been pinpointed to be in the spring of 2017. Then there’s a timeline beyond that what the legalization will look like.
I think what’s going to be complex about this is – and I don’t have any answers – is what’s the distribution going to look like? Right now every single gram of cannabis is sold legally in the ACMPR system, which is through mail order and. ‘Will it even be an option?’ is the question for legal. I think it will.
I think that what the ultimate legislation will show is that it’s not going to be a “one size fits all”approach. Each province will have control over the distribution, so it’s going to be different in the east and the west. ill we have dispensaries like in Colorado and Washington? Will it be only the producers that are allowed to have physical stores? Will it be the LCBOs type model? Will it be the drug store type model? I really don’t know how it’s going to play out.
INN: Can you give our readers some insight into the big rally of late in the US cannabis stocks? Do you see it’s sustainable?
AB: Yes. This has been amazing. Some would say there were rallies before but there just weren’t enough stocks. That first rally was in February of 2013 where the stocks basically doubled and then they lost two thirds of their value, until the summer of 2013. The second rally is what I’d like to call The Mother of all Rallies. In that rally, I have an index that bottomed out at 70 in the summer of 2013 and I think it was at about 150.
In the next two and a half months, that index went from about 150 to over 1000. The reason for that was people were waking up to what I had learned in early 2013 because it was on national media, international media.
In that rally there weren’t that many companies that people could buy and there were a lot of people that wanted to buy simple.. You had stocks go up way more than they should have and it was not fundamentally driven. The valuations were insane.
Now fast forward to this year. I’ve been telling my subscribers that we’re going to have a very big rally at the end of the year due to these elections. I published on August 31 a report not only saying what I expected to happen and when, but which stocks should be bought as well. I warned people that it’s not sustainable. It’s a trade.
On October 31st I called the end of the rally. To answer your question about sustainability, unfortunately it’s not sustainable. The valuations are too high.
INN: Canopy Growth (TSX:CGC) made headlines with the acquisition of Verdi Medical and Groupe Hemp. Can you give us some insights into this acquisition?
AB: Canopy Growth is the largest in terms of market cap and sales of a publically traded license producer in Canada. They have two brands that they operate under: Tweed which consumers will be familiar with and Bedrocan which uses the license to produce a medicinal minded product.Vert Medicalin Quebec is a really different animal from the rest of Canada.I think it was smart that they established a toe-hold there in Quebec. They bought what’s now Tweed Farms, a large greenhouse.. They were able to use their clout with Health Canada to get that license pushed through pretty quickly.
Mettrum Health (TSXV:MT) did the same thing with another pre-licensed LP. I think we should expect to see more consolidation. Canopy Growth is the biggest company will probably continue to be a consolidator.
INN: Do you think we’re going to see more mergers and acquisitions to cannabis sector?
AB: There actually are some decent companies listed on the OTC. I think one thing that you can do with your high valued stock is use it to make acquisitions. We’ve seen a couple examples of that and I do expect to see a little bit of that. It’d be really nice to see a real company, like one that shines in the private sector, merge with one of these publically traded companies. I don’t know if we’ll see that.
In Canada, I think it’s going to be really hard for a lot of these LPs,depending on how the rules play out if we move to a system where there are a lot of storefronts, it’s a little different. You don’t have to establish your own brand but then you have to grow at a very low cost. It’s going to be really tough for some of these pre-license companies that plan on having their own brands and all that, it’s going to be really tough. If they want to succeed. I think they’re going to have to be part of a larger company.
Right now, there is one more that about to go public, so there’ll be about 10 companies that are publically trading. There’s 36 licenses, but some of those are multiple licenses that are held by some public companies. There’s probably another 20 companies that I think don’t have good access to capital. The LPs definitely have good access to capital so that suggests consolidation as well.
INN: You recently published an article rg on how the sector’s attracting technology entrepreneurs from Silicon Valley. Is there anyone in particular you’re following or think investors should watch out for?
AB: Yes. The article you referenced, done by Melia Robinson on Business Insider picked out some great companies,
I would point to even among that list, there’s just some bigger themes. Everybody always likes to think about “Who are the big players in cannabis? They must be the people selling it or growing it.” That’s really not the case. There are some. It’s really hard to make money in that business because of punitive taxation, not only is there the state and local taxes that we’re all familiar with, but w something called 280E . It’s a more than 30-year-old rule for the Miami drug lords, the cocaine industry. They wanted to collect taxes on these people that were engaging in illegal activities.
They use this antiquated law today to push marginal tax rates 75 to 80 percent. I think where companies are able to attract more capital is where I would point people they need to be looking at.
Big picture I would suggest focusing on some of these ancillary companies that are outside the growing and selling part of the industry.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Editorial Disclosure: Mettrum Health is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Aphria Inc.’s Adult-Use Brands Good Supply and Solei Introduce High Potency Oils to its Product Lineup
Good Supply enters the oil category for the first time with THC 30:0, formulated to contain the highest allowable, cannabinoid content currently available in the Canadian market.
Solei expands successful oil lineup to include Solei Plus+ in Free and Balance Moments.
Aphria Inc. (” Aphria “, ” we “, or the ” Company “) (TSX: APHA) ( NASDAQ: APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their best life, today announced the addition of Good Supply’s THC 30:0 and Solei Plus+ high potency oils to its award-winning adult-use brand portfolio, which join a range of other formats available, including whole dried flower, pre-rolls, oral sprays, soft gels, vapes and topicals.
Based on Headset data, high potency oils dominate the category with nine out of the top 10 bottled oils sold being high potency oils 1 in BC, Alberta , Saskatchewan and Ontario . To meet this demand, Solei and Good Supply’s new high potency oils offer consumers convenient and versatile options that are distillate-based for a virtually odorless and tasteless experience.
“At Aphria Inc. we understand the importance of offering consumers flexibility when it comes to consumption options, which is why expanding our portfolio to include high potency oils was a priority to the team,” said Irwin D. Simon , Chief Executive Officer at Aphria Inc. “We continue to make it our priority to provide Canadians with the highest quality cannabis and the addition to high potency oils is no exception.”
Good Supply is one of Canada’s leading cannabis brands in the vapes and flower category 2 and a favourite among budtenders 3 . For the first time, Good Supply is introducing a distillate-based oil, which is available in select markets in April 2021 . Good Supply THC 30:0 is a convenient, high potency option containing the maximum allowable THC content (30mg per gram) on the market, but without the after taste.
Widely known for its success in the oils category as one of the best-selling CBD oil of 2020 4 and KIND Magazine’s CBD Brand of the year in 2020 5 , Solei continues to build its distillate-based oil offerings, by adding the new Solei Plus+ high potency oil to its innovation lineup. Solei Plus+ is made from sungrown cannabis, which is diluted into RSPO 6 certified MCT oil. This smoke-free option has three times the cannabinoid content of Solei’s current oils. Solei Plus+ is available in two cannabinoid profiles: Balance (15mg CBD, 15mg THC) and Free (30mg CBD, 1mg THC) and is available in select markets.
About Aphria Inc.
Aphria Inc. is a leading global cannabis-lifestyle consumer packaged goods company with operations in Canada , United States , Europe and Latin America , that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body and soul and invoke a sense of wellbeing. Aphria’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. Headquartered in Leamington, Ontario , Aphria cultivates, processes, markets and sells medical and adult-use cannabis, cannabis-derived extracts and derivative cannabis products in Canada under the provisions of the Cannabis Act and globally pursuant to applicable international regulations. Aphria also manufactures, markets and sells alcoholic beverages in the United States.
For more information, visit: aphriainc.com
1 Headset Canadian Insights (AB, BC, SK, ON retail stores) – Jan to Mar 2021
2 Headset Canadian Insights (BC, AB, SK, ON retail stores) – Jan to Mar 2021
3 Kind Magazine Awards – Dec 2020
4 Headset Canadian Insights (BC, AB, SK, ON retail stores) – Jan to Dec 2020
5 Kind Magazine Awards – Dec 2020
6 Roundtable on Sustainable Palm Oil (RSPO), https://rspo.org/
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SOURCE Aphria Inc.
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Aphria Inc. (” Aphria “) (TSX: APHA) (NASDAQ: APHA), a leading global cannabis-lifestyle consumer packaged goods company, today announced that its holders (the ” Aphria Shareholders “) of Aphria’s common shares (the ” Aphria Shares “) at the special meeting of Aphria Shareholders (the ” Meeting “) approved the previously announced arrangement (the ” Arrangement “) under the Business Corporations Act ( Ontario ), pursuant to which, among other things, Tilray, Inc. (” Tilray “) and following the Arrangement, the ” Combined Company “) will acquire all of the issued and outstanding Aphria Shares. Pursuant to the Arrangement, the Aphria Shareholders will receive 0.8381 (the ” Exchange Ratio “) of a Tilray share of class 2 common stock (the ” Tilray Shares “) for each Aphria Share held, while holders of Tilray Shares (the ” Tilray Stockholders “) will continue to hold their Tilray Shares with no adjustment to their holdings.
The special resolution approving the Arrangement (the ” Arrangement Resolution “) was required to be passed by at least two-thirds (66 2/3%) of the votes cast at the Meeting by the Aphria Shareholders voting virtually or represented by proxy at the Meeting. A total of 108,409,367 Aphria Shares were represented by proxy at the Meeting, representing approximately 34.43% of the issued and outstanding Aphria Shares. Of the total Aphria Shares voted, 99.38% voted FOR the Arrangement.
Irwin D. Simon , Aphria’s Chairman and Chief Executive Officer, who will hold these same roles with the Combined Company, commented, “I want to thank all Aphria Shareholders for voting and approving the Arrangement. We appreciate their support, as we believe the business combination will create a Combined Company with a strong financial profile, low-cost production, market share leading brands, distribution network and unique partnerships,.The Combined Company will be increasingly well positioned to deliver a sustainable attractive return for our combined shareholder base.”
Closing of the Arrangement remains subject to certain customary closing conditions, including court approval and the approval of Tilray Stockholders.
Aphria Shareholder Questions and Assistance
Aphria Shareholders who have questions or require further information about the Arrangement may contact Laurel Hill Advisory Group, Aphria’s proxy solicitation agent, by telephone at 1-877-452-7184 (North American Toll-Free), or 1-416-304-0211 (Outside North America), or by email to email@example.com .
We Have A Good Thing Growing
About Aphria Inc.
Aphria Inc. is a leading global cannabis-lifestyle consumer packaged goods company with operations in Canada , United States , Europe and Latin America , that is changing people’s lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body and soul and invoke a sense of wellbeing. Aphria’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. Headquartered in Leamington, Ontario , Aphria cultivates, processes, markets and sells medical and adult-use cannabis, cannabis-derived extracts and derivative cannabis products in Canada under the provisions of the Cannabis Act and globally pursuant to applicable international regulations. Aphria also manufactures, markets and sells alcoholic beverages in the United States . For more information, visit: aphriainc.com .
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes forward-looking information or forward-looking statements (together, ” forward-looking statements “) under Canadian securities laws or within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. The forward-looking statements are expressly qualified by this cautionary statement. Forward-looking statements are provided for the purpose of presenting information about management’s current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. Any information or statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements, including, but not limited to, statements in this news release with regards to: (i) the Arrangement; (ii) the expected strategic and financial benefits of the Arrangement; and (iii) statements regarding the value and returns to Aphria Shareholders expected to be generated by the Arrangement. Aphria uses words such as “forecast”, “future”, “should”, “could”, “enable”, “potential”, “contemplate”, “believe”, “anticipate”, “estimate”, “plan”, “expect”, “intend”, “may”, “project”, “will”, “would” and the negative of these terms or similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Certain material factors or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this news release, including the ability of Aphria and Tilray to receive, if at all, , in a timely manner and on satisfactory terms, the necessary shareholder and court approvals for the Arrangement, the conditions to closing of the Arrangement being satisfied, that the Arrangement will yield the expected strategic and financial benefits and generate returns for shareholders and other expectations and assumptions concerning the Arrangement. Forward-looking statements reflect current beliefs of management of Aphria with respect to future events and are based on information currently available to its management team, including the reasonable assumptions, estimates, analysis and opinions of management of Aphria considering its experience, perception of trends, current conditions and expected developments as well as other factors that management believes to be relevant as at the date such statements are made. Forward-looking statements involve significant known and unknown risks and uncertainties. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. Factors that may cause such differences include, but are not limited to, risks assumptions and expectations described in Aphria’s and Tilray’s critical accounting policies and estimates; the adoption and impact of certain accounting pronouncements; Aphria’s and Tilray’s future financial and operating performance; the competitive and business strategies of Aphria and Tilray; the intention to grow the business, operations and potential activities of Aphria and Tilray; the ability of Aphria to complete the Arrangement; Tilray’s ability to provide a return on investment; Tilray’s ability to maintain a strong financial position and manage costs; the ability of Aphria and Tilray to maximize the utilization of their existing assets and investments and that the completion of the Arrangement is subject to the satisfaction or waiver of a number of conditions as set forth in the arrangement agreement entered into between Aphria and Tilray dated December 15, 2020 , as amended on February 19, 2021 (the ” Arrangement Agreement “). There can be no assurance as to when these conditions will be satisfied or waived, if at all, or that other events will not intervene to delay or result in the failure to complete the Arrangement. There is a risk that some or all the expected benefits of the Arrangement may fail to materialize or may not occur within the time periods anticipated by Aphria. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of the Combined Company difficult. Material risks that could cause actual results to differ from forward-looking statements also include the inherent uncertainty associated with the financial and other projections a well as market changes arising from governmental actions or market conditions in response to the COVID-19 public health crisis; the prompt and effective integration of the Combined Company; the ability to achieve the anticipated synergies and value-creation anticipated by Aphria; the risk associated with Aphria’s and Tilray’s ability to obtain the approvals of their shareholders required to consummate the Arrangement and the timing of the closing of the Arrangement, including the risk that the conditions to closing are not satisfied on a timely basis or at all; the outcome of any legal proceedings that may be instituted against Aphria and/or Tilray related to the Arrangement Agreement; the response of business partners and retention as a result of the announcement and pendency of the Arrangement; risks relating to the value of the Tilray Shares to be issued in connection with the Arrangement; the impact of competitive responses to the announcement of the Arrangement; and the diversion of management time on transaction-related issues. Readers are cautioned that the foregoing list of factors is not exhaustive. Other risks and uncertainties not presently known to Aphria or that Aphria presently believes are not material could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of risks and other factors, see the most recently filed annual information form of Aphria made with applicable securities regulatory authorities and available on SEDAR and EDGAR. The forward-looking statements included in this news release are made as of the date of this news release and Aphria does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Additional Information About the Arrangement and Where to Find It
This news release is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. This release is being made in respect of the proposed Arrangement involving Aphria and Tilray pursuant to the terms of an Arrangement Agreement and may be deemed to be soliciting material relating to the proposed Arrangement.
In connection with the Arrangement, Aphria and Tilray have filed a joint proxy statement/management information circular (the ” Circular “) containing important information about the Arrangement and related matters. The Circular has been made available by Aphria on its SEDAR profile and is available on EDGAR. Additionally, Aphria will file other relevant materials in connection with the Arrangement with the applicable securities regulatory authorities. Investors and security holders of Aphria are urged to carefully read the entire Circular (including any amendments or supplements to such documents), respectively, before making any voting decision with respect to the Arrangement Resolution because they contain important information about the Arrangement and the parties to the Arrangement. The Circular has been mailed to Aphria Shareholders and is accessible on Aphria’s SEDAR and EDGAR profile.
Investors and security holders of Aphria are able to obtain a free copy of the Circular, as well as other relevant filings containing information about Aphria and the Arrangement, including materials incorporated by reference into the Circular, without charge, under Aphria’s profile on SEDAR at www.sedar.com or from Aphria by contacting Aphria’s investor relations at firstname.lastname@example.org .
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SOURCE Aphria Inc.
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OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 11,000 U.S. and global securities, today announced the first quarter 2021 performance and quarterly rebalancing of the OTCQX® and OTCQB® indexes, including the OTCQX Canada Index and the OTCQX Dividend Index.
The OTCQX Composite Index (.OTCQX), a benchmark for the overall OTCQX Best Market, was up 3.9% in the first quarter. Fifty-eight new companies were added to the index, including: AYR WELLNESS INC. (OTCQX: AYRWF); Blackstone Minerals Ltd . (OTCQX: BLSTF); Integrated BioPharma, Inc. (OTCQX: INBP); Newcore Gold Ltd. (OTCQX: NCAUF); Tilt Holdings Inc. (OTCQX: TLLTF); The Trendlines Group Ltd . (OTCQX: TRNLY), and Zoetic International PLC (OTCQX: ZOEIF). Twenty-seven were removed from the index, including Lexaria Bioscience Corp. (LEXX) which graduated to Nasdaq on 1/12/2021 and URBAN-GRO. (UGRO) which graduated to Nasdaq on 2/12/2021. Midas Gold Corp. changed its name to Perpetua Resources Corp. (PPTA) and graduated to Nasdaq on 2/18/2021. Ferguson Plc (FERG) graduated to NYSE on 3/8/2021.
The OTCQX Billion+ Index (.OTCQXBIL), which tracks the performance of $1 billion -plus market cap OTCQX companies, was up 3.6% for the quarter. Nine companies were added to the index including: Atlantic Sapphire ASA (OTCQX: AASZF); Bombardier Inc. (OTCQX: BDRBF); Bitwise 10 Crypto Index Fund (OTCQX: BITW), and TerrAscend Corp. (OTCXQ: TRSSF)
The OTCQX Dividend Index (.OTCQXDIV), which tracks dividend-paying U.S. and international OTCQX companies, was up 3.6% in the quarter. Fourteen new companies were added to the index including: Britvic plc (OTCQX: BTVCY); Endeavour Mining Corporation (OTCQX: EDVMF); Prime Meridian Holding Co. (OTCQX: PMHG), and TAG Oil Ltd. (OTCQX: TAOIF)
Fifteen companies were removed.
The OTCQX Banks Index (.OTCQXBK), comprised of OTCQX community and regional banks, increased 15.9% in the first quarter. Twelve banks were added to the index in the quarter and four companies were removed. The twelve banks added were: Century Next Financial Corp (OTCQX: CTUY); Equitable Financial Corp. (OTCQX: EQFN); Grand River Commerce Inc. (OTCQX: GNRV); InBankshares, Corp (OTCQX: INBC); JD Bancshares, Inc. (OTCQX: JDVB); Morris State Bancshares, Inc. (OTCX: MBLU); Merchants & Marine Bancorp Inc. (OTCQX: MNMB); Pilot Bancshares, Inc. (OTCQX: PLBN); Prime Meridian Holding Co. (OTCQX: PMHG); Town Center Bank (IL) (OTCQX: TCNB); Two Rivers Financial Group, Inc. (OTCQX: TRVR), and Uwharrie Capital Corp (OTCQX: UWHR).
The OTCQX International Index (.OTCQXINT), a benchmark for international OTCQX companies, was up 3.0% for the quarter. Thirty-one new companies were added to the index including: Apollo Healthcare Corp. (OTCQX: AHCCF); BIGG Digital Assets Inc. (OTCQX: BBKCF); Earthasia International Holdings Limited (OTCQX: ETIHY); Frontier Lithium (OTCQX: LITOF); Steppe Gold Limited (OTCQX: STPGF) and Victory Square Technologies Inc (OTCQX: VSQTF). Twenty-two companies were removed.
The OTCQX Canada Index (.OTCQXCAN), which tracks Canadian OTCQX companies, was up 11.9% in the first quarter. Twenty-five companies were added to the index and eight companies were removed.
OTCQX U.S. Index (.OTCQXUS), a benchmark for U.S. OTCQX companies, was up 16.5% in the first quarter. Twenty-five companies were added to the index and thirteen companies were removed.
OTCQX Cannabis Index (.OTCQXMJ), a benchmark for cannabis companies, was up 26.0% in the first quarter. Eleven new companies joined the index. The eleven companies added were: Columbia Care Inc. (OTCQX: CCHWF); TPCO HLDG CORP. (OTCQX: GRAMF); Green Thumb Industries Inc. (OTCQX: GTBIF); Indiva Ltd. (OTCQX: NDVAF); Next Green Wave (OTCQX: NXGWF); Red White & Bloom Brands Inc. (OTCQX: RWBYF); Tilt Holdings Inc. (OTCQX: TLLTF); TerrAscend Corp. (OTCQX: TRSSF); Vireo Health International Inc. (OTCQX: VREOF); WeedMD Inc (OTCQX: WDDMF); Zoetic International PLC (OTCQX: ZOEIF). Eight companies were removed.
The OTCQB Venture Index (.OTCQB), which tracks the overall OTCQB Venture Market, was up 20.3% in the first quarter. One hundred-seven companies were added to the index and sixty-six companies were removed. FingerMotion (FNGR) graduated to OTCQX on 1/7/2021. KemPharm Inc. (KMPH) graduated to NASDAQ on 1/8/2021. Zoetic International PLC (ZOEIF) graduated to OTCQX on 1/8/2021. Tilt Holdings Inc. (TLLTF) graduated to OTCQX on 1/8/2021. Versus Systems (VS) graduated to NASDAQ on 1/15/2021. ComSovereign Holding Corp. (COMS) graduated to NASDAQ on 1/22/2021. AiXin Life International, Inc. (AIXN) graduated to OTCQX on 1/22/2021; Integrated BioPharma, Inc. (INBP) graduated to OTCQX on 1/22/2021; Crossroads Systems, Inc. (CRSS) graduated to OTCQX on 1/28/2021; Cuentas Inc. (CUEN) graduated to NASDAQ on 2/2/2021; Simply Inc. (SIMP) graduated to OTCQX on 2/8/2021; Reliance Global Group Inc. (RELI) graduated to NASDAQ on 2/9/2021; MustGrow BioLogics Corporation (MGROF) graduated to OTCQX on 2/12/2021; Antibe Therapeutics, Inc. (ATBPF) graduated to OTCQX on 2/16/2021; Amplitech Group Inc. (AMPG) graduated to NASDAQ on 2/17/2021; Greenbox POS (GBOX) graduated to NASDAQ on 2/17/2021; Novo Integrated Sciences, Inc. (NVOS) graduated to NASDAQ on 2/23/2021; BIGG Digital Assets Inc. (BBKCF) graduated to OTCQX on 2/23/2021; Briacell Therapeutics Corp. (BCTXF) graduated to NASDAQ on 2/24/2021; Ares Strategic Mining Inc (ARSMF) graduated to OTCQX on 3/2/2021; PyroGenesis Canada Inc. (PYR) graduated to NASDAQ on 3/11/2021; Taat Lifestyle & Wellness Ltd. (TOBAF) graduated to OTCQX on 3/23/2021; Gratomic Inc. (CBULF) graduated to OTCQX on 3/26/2021, and Franklin Wireless Corp. (FKWL) graduated to NASDAQ on 3/29/2021.
For a list of all index additions and deletions, visit https://www.otcmarkets.com/files/Quarterly_Index_Constituent_Changes.pdf
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Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco Labs” or the “Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products and Bluma Wellness Inc. (“Bluma Wellness”), a vertically integrated operator in Florida, today announced the closing of the Company’s previously announced acquisition of Bluma Wellness.
– Cresco Labs now has meaningful operations in 10 states.
– The Company’s footprint includes all 7 of the top-10 most populated states in the country with cannabis programs.
– Florida, with more than 525,000 1 medical cannabis patients and a state population greater than 21 million people, represents one of the largest absolute growth opportunities among cannabis markets.
– Bluma Wellness’ competitive advantages in Florida include one of the state’s only cultivation facilities producing ultra-premium quality flower as well as a differentiated retail model including strategic, high-volume storefronts and an omnichannel sales platform.
– Operations include 8 dispensaries strategically located around the state, offering same-day delivery and curbside pickup. 7 more dispensaries are currently in permitting and/or are under construction.
– 54,000ft 2 of cultivation in Indiantown is currently under expansion and will continue to deliver premium craft flower at greater scale to support additional store openings and expanded product offerings.
“The closing today represents yet another strategic acquisition in a top-5 market that is true to our strategy – building the most strategic geographic footprint and achieving material market share positions within each state. Cresco Labs and Bluma Wellness have proven track records of operational execution and together have key advantages for growth and a clear pathway to scale. We look forward to amplifying operations and executing our playbook in Florida this year and in the years to come.” said Charlie Bachtell, CEO and Co-Founder of Cresco Labs.
“We couldn’t be more excited to begin working with Cresco Labs to execute our shared vision for aggressive expansion in Florida,” said Brady Cobb, CEO of Bluma Wellness. “Cresco’s deep operational efficiency and relentless focus on quality, combined with Bluma’s best-in-state cultivation operations and innovative approach to retail, creates the perfect operating environment for our continued success in Florida.”
The acquisition was completed by way of a plan of arrangement (the “Arrangement”) under the provisions of the Business Corporations Act (British Columbia). Pursuant to the terms of the Arrangement, holders of common shares of Bluma Wellness (“Bluma Shares”) received 0.0859 subordinate voting shares of Cresco Labs (“Cresco Shares”) for each Bluma Share held. In total, Cresco Labs acquired 184,814,281 Bluma Shares, representing all of the issued and outstanding Bluma Shares, in exchange for 15,875,449 Cresco Shares.
It is anticipated that the Bluma Shares will be delisted from the Canadian Securities Exchange (“CSE”) as of the close of trading on April 14, 2021, and Bluma intends to submit an application to the applicable securities regulators to cease to be a reporting issuer and to terminate its public reporting obligations.
Pursuant to the letter of transmittal mailed to shareholders of Bluma Wellness as part of the materials in connection with the special meeting of Bluma Wellness shareholders held on March 19, 2021, in order to receive the portion of the Cresco Shares to which they are entitled, registered holders of Bluma Shares are required to deposit their share certificate(s) or DRS statements representing their Bluma Shares, together with a duly completed letter of transmittal, with Odyssey Trust Company, the depositary under the Arrangement. Shareholders whose Bluma Shares are registered in the name of a broker, dealer, bank, trust company or other nominee must contact their nominee to deposit their Bluma Shares.
About Cresco Labs Inc.
Cresco Labs is one of the largest vertically integrated multistate cannabis operators in the United States, with a mission to normalize and professionalize the cannabis industry. Employing a consumer-packaged goods (“CPG”) approach, Cresco Labs is the largest wholesaler of branded cannabis products in the U.S. Its brands are designed to meet the needs of all consumer segments and comprised of some of the most recognized and trusted national brands including Cresco, High Supply, Mindy’s Edibles, Good News, Remedi, Wonder Wellness Co. and FloraCal Farms. Sunnyside, Cresco Labs’ national dispensary brand, is a wellness-focused retailer created to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco Labs operates the industry’s largest Social Equity and Educational Development initiative, SEED, which was established to ensure that all members of society have the skills, knowledge and opportunity to work and own businesses in the cannabis industry. Learn more about Cresco Labs at www.crescolabs.com .
Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms and includes, but is not limited to, statements relating to the expected timing by which Bluma Wellness will be de-listed from the CSE and the intention to apply to have Bluma Wellness cease to be a reporting issuer and terminate its public reporting obligations. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the Company’s Annual Information Form for the year ended December 31, 2020 dated March 26, 2021, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs’ shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.
1 Florida Office of Medical Marijuana
Jason Erkes, Cresco Labs
Chief Communications Officer
Jake Graves, Cresco Labs
Manager, Investor Relations
For general Cresco Labs inquiries:
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Construction of New Facility Under Way
TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce the appointment of commercial farming and construction expert, Josh Baker, to its Board of Directors today.
The appointment comes in conjunction with the Company’s first draw down of its recently secured $2M construction loan. Mr. Baker is the US-based lender’s nominee to the Board, who will provide guidance and stewardship while the loan is deployed to increase production capacity at the Company’s Daly Facility in Modesto, California.
Mr. Baker brings a wealth of relevant experience to the Board. He is a 6th generation farmer local to the Central Valley, with decades of experience building and operating commercial and residential family farms, giving him an intimate understanding of everything that goes into agricultural construction and how to optimally and efficiently grow and market crops.
As the Board Member representing the lender’s interests, Mr. Baker will monitor the construction project and confirm when each phase is complete.
Phase One, currently underway, includes the construction of a 6,000 sq ft vegetative room, and five new cultivation rooms that can produce up to 200 lbs of harvest every two weeks.
“I’m extremely excited to join TransCanna, and would not have joined if I didn’t see the tremendous potential here,” said Mr. Baker. “The $2M construction loan will help bring it to profitability, and I really see it becoming one of the greatest cannabis companies in California in the next three years.”
Bob Blink, Company CEO, said, “Everyone has hit the ground running with this new loan. As of today, we already have new construction workers at the facility, and expect to have plants in the new cultivation rooms within the next three weeks.”
The Company wishes to provide an update with respect to the previously announced Management Cease Trade Order (the “MCTO”) issued by the British Columbia Securities Commission on March 31, 2021. The MCTO was issued in connection with the delay by the Company in filing its annual financial statements, management’s discussion and analysis and related officer certifications for the financial year ended November 30, 2020 (collectively, the “Required Filings”) before the prescribed deadline of March 30, 2021. The Company continues to work closely with its auditor and expects to file the Required Filings on or before May 31, 2021.
The Company is providing this status update in accordance with National Policy 12-203 Management Cease Trade Orders (“NP 12-203”). The Company intends to follow the provisions of the Alternative Information Guidelines set out in NP 12-203, including the issuance of bi-weekly default status reports in the form of news releases. The Company confirms as of the date of this news release that there has been no material change in the information contained in the announcement issued on April 1, 2021, and there is no other material information concerning the affairs of the Company that has not been generally disclosed.
TransCanna Holdings Inc. is a California-based, Canadian-listed company building cannabis-focused brands for the California lifestyle, through its wholly-owned California subsidiaries.
TransCanna‘s wholly owned subsidiary Lyfted Farms is California’s authentic cannabis brand whose pioneering spirit has been continuously providing the finest cannabis flower genetics and cultivation methods since 1984. The Lyfted Farms brand of exclusive cannabis flower is sold at premium retailers throughout the state. With its new cultivation facility in Daly, California, the company is now poised to become one of the largest and most efficient vertically integrated cannabis companies in the California market.
On behalf of the Board of Directors
Bob Blink, CEO
Certain information in this release may contain forward-looking statements, such as statements regarding future expansions and cost savings and plans regarding production increases and financings. This information is based on current expectations and assumptions, including assumptions concerning the completion of the expansion of the Daly Facility, government approval of pro-cannabis policies, greater access to financial services and increased cultivation capacity, that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Risks that could cause results to differ from those stated in the forward-looking statements in this release include unexpected increases in operating costs, a continued strain on farmers due to fires and the Coronavirus pandemic and competition from other retailers. All forward-looking statements, including any financial outlook or future-oriented financial information, contained in this release are made as of the date of this release and are included for the purpose of providing information about management’s current expectations and plans relating to the future. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company’s filings with the Canadian securities regulators, which filings are available at www.sedar.com.
Neither the Canadian Securities Exchange (“CSE”) nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
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