July 12th Cannabis Daily Recap
Today finished with the lowest total volume we’ve seen in a while. HORIZONS MARIJUANA ETF (TSE: HMMJ) seems to have flatlined the past couple of weeks which is a pretty good representation of how most companies have been trading lately. Besides the continuation of BCLDB supply agreement deals, there wasn’t any exciting news.
CannaRoyalty Corp. (CSE: CRZ) started the day by announcing that it had acquired the exclusive rights to distribute and manufacture Pacific Remedy LLC’s industry-leading infused pre-rolls in California. The Agreement also provides CannaRoyalty with the option to purchase global brand rights for the premium infused pre-roll manufacturer. Which is fitting seeing how Aurora Cannabis (TSE: ACB) bought their current pre-rolled technology.
FSD Pharma Inc (CSE: HUGE) announced a binding agreement to purchase 51% of Atlantic Island Cannabis Inc. In all, they expect it will cost $40 million to drive production and sales of cannabis in the province of Newfoundland. The construction of phase 1, which will be a 45k sq foot cannabis production facility, hopes to create 200 local jobs and the final phase once finished will provide the partnership with approximately 300k sq feet of indoor grow facility for the production and processing of legal cannabis. The purchase price for 51% of Atlantic Island Cannabis Inc. is $6,500,000 payable in Class B subordinated shares of FSD based on a 15 day Volume Weighted Average Price. With today’s close, 6.5million shares are approximately 40m shares being added to their already HUGE float. In total, once all their facilities are fully expanded and finished with this deal and their partnership with Cannara Biotech Inc they will have access to over 1.5 million sq feet worth of growing space, which is definitely industry leading, but how high can their share price go with all those shares?
MedReleaf Corp. (TSX: LEAF) will sponsor a cancer trial to improve the management of cancer pain using medical grade cannabis oil. News like this is definitely what the sector should be about, using cannabis as medicine and to help the population. The one-two year study will be conducted at the HHS Juravinski Cancer Center. MedReleaf’s uniquely formatted cannabis oil capsules will be administered to patients with cancer-related pain with the objective of improving pain management. If successful this will not only be huge for Leaf but the industry as a whole, this would be increasing cannabis related revenue for the sector.
Emerald Health Therapeutics (TSXV: EMH) gave an update on its different strategy and progress. Emerald heath which is currently trading at 1/3 of its 52 week high and half the price of their last 2 raises explained its 3 pillar business plan. Emh who currently holds a cultivation licence for their, Village farm partnered, 1.1m sq foot facility explained that Product Innovation, Branding & Sales, and Production and Raw Material Sourcing are their key strategies for future profitability. They also mentioned that their 53% owned Northern Vine Labs (which Abattis Bioceuticals Corp (CSE: ATT) owns the other 47%) who has a Dealers Licence is key in helping EMH research new products and import and export dried cannabis internationally. Hopefully, in the near future, Northern Vine Labs will help provide revenue for Abattis and EMH, which will then see a much-needed increase in share prices for both companies. Just like Huge with their 75k sq foot Quebec indoor facility once fully expanded they will have over 1.5m sq feet of growing space.
As expected with GTEC Holdings’ (TSXV: GTEC) news yesterday an additional potential of 240k growing space pleased investors and GTEC finished with a 24% increase in share price. Crop infrastructure Corp (CSE: CROP) volume, unfortunately, cooled down let’s keep an eye out to see where the new support levels build.
Namaste Technologies’ (CVE: N) Ceo Sean Dollinger was on BNN yesterday. There was 2 main point in the interview 1) he explains the deal IcMD deal which gives them access a population of over 1.5 million people, if they can convert 10% of that to Namaste MD and they spend 1000$ a year that’s a potential revenue of $150 million a year, and those are very conservative numbers. 2) Cannmart’s inspection from Health Canada is expected within the next couple weeks, therefore sell licence should follow afterwards, let’s all hope its just before the Namaste party, so that gives a huge reason to party. Unfortunately today from yesterdays namaste 420 and Sean’s Bnn interview the share price just traded side ways.
Lastly, High Hampton (CSE: HC) recently updated their investor’s presentation with the recent acquisition of CALIGOLD and now 2 distribution networks hopefully, revenue should start coming in. Also if you add California’s close to 40 million population and High Hampton’s strong management team those are definitely good reasons to keep an eye on High Hampton.