PALM BEACH, Florida, September 7, 2018 /PRNewswire/ --
MarketNewsUpdates.com News Commentary
Dually listed U.S. and Canadian cannabis companies rallied this week as analysts cheered the latest link-ups in the sector and remained bullish on a market expected to grow quickly once Canada fully legalizes the substance on Oct. 17. Many are expecting Canada-based cannabis stocks to follow trends seen in the U.S. states where recreational cannabis has been legalized, where strong demand for cannabis products and oils are only growing. All eyes are on Canada as it prepares to legalize recreational marijuana in October, becoming only the second country to do so after Uruguay. Meanwhile Americans continue to change their minds about marijuana. In less than a generation, public opinion has turned sharply away from prohibition and penalties in favor of legalization which is expected to only push the industry to levels in the future. Active cannabis stocks in the markets today include: CROP Infrastructure Corp. (CSE:CROP) (OTC: CRXPF), MedMen Enterprises Inc. (CSE:MMEN) (OTC: MMNFF), Aphria Inc. (OTC: APHQF) (TSX:APH), Liberty Health Sciences Inc. (CSE:LHS) (OTC: LHSIF), Canopy Growth Corporation (TSX:WEED) (NYSE: CGC)
CROP Infrastructure Corp. (CSE:CROP) (OTCPK:CRXPF)) BREAKING NEWS: CROP Infrastructure announced today that it has completed the member interest purchase agreement with Elite Ventures LLC, of Nevada, to acquire a 49% member interest in the Nye County agricultural property. The company has agreed to pay $1,350,000 USD in cash and has currently loaned $1,697,148 USD for the property and equipment expenses, with no more than $200,000 in additional expenses expected for this first harvest.
The Nye County agricultural property is in central Nevada and was selected for its temperate climate which is ideal for greenhouse and outdoor growing. The property totals over 315 acres and includes 300 acres of private water rights, with 240 acres under automatic irrigation pivots that also have automatic fertilizer injection systems installed.
The previously announced 240 acres of CBD Hemp has been planted and is currently 2.5-3 feet tall and growing under pivot with the resulting harvest expected within 45 days. A recent plant count suggests 3,000 healthy plants per acre or 720,000 plants under pivot. All harvesting equipment has been secured for the resulting hemp biomass. The cost of production was not expected to exceed $700,000, with $350,000 incurred to date, and no more than $200,000 in additional costs expected to prepare our tenant for this harvest.
CROP Infrastructure Director and CEO, Michael Yorke, stated: "We are pleased to have completed this acquisition and see our operations coming in under budget for this first harvest. This further demonstrates that our tenant and brand licensee was the correct choice for our Nevada farm. The next phase of development will be a state-of-the-art extraction facility to make high-value CBD isolate." Read this full announcement and more news for CROP Infrastructure at: http://www.marketnewsupdates.com/news/crop.html
Additional cannabis industry related developments from around the markets:
The MedMen of Nevada 2 LLC, located at 10115 Jefferson Blvd, Culver City, CA 90232, announced this week that on September 5, 2018 it disposed of, by way of distribution in accordance with its constating documents to the members of the Securityholder, 16,574,460 Class B Common Shares of MM Can USA, Inc., a subsidiary of MedMen Enterprises Inc. (CSE:MMEN.CN) (OTCQB:MMNFF), which is located at 10115 Jefferson Blvd, Culver City, CA 90232. Pursuant to the articles of incorporation of PC Corp and the Support Agreement dated as of May 28, 2018 between the Issuer, PC Corp and MM Enterprises USA, LLC, and subject to the terms and conditions thereof, such distributed Class B Shares may be redeemed from time to time by the holders thereof for cash or an equivalent number of Class B Subordinate Voting Shares of the Issuer, with the form of such redemption consideration being at the option of PC Corp.
Aphria Inc. (TSX:APH.TO) (OTCQB:APHQF) this week announced that it has entered into a share purchase agreement with a group of buyers, each acting individually and not in concert, including a member of the Serruya family, and has completed the sale of 64,118,462 shares (the "Shares") in Liberty Health Sciences, Inc. ("Liberty"), representing 100% of the Company's outstanding investment in Liberty. As part of the transaction, Aphria retains an irrevocable option to repurchase the Shares or any replacement securities from the buyers for a period of up to five years, subject to the satisfaction of certain conditions as further described below. As a result of the transaction, Aphria has divested its remaining U.S. cannabis assets from its balance sheet in accordance with the staff notice and requirements of the Toronto Stock Exchange ("TSX"). As a result of this divestiture, the Company has significantly improved its liquidity position while it continues to focus on the many opportunities within Canada and in other legal cannabis markets around the world.
Liberty Health Sciences Inc. (CNQ:LHS.CN) (OTCQX:LHSIF), a provider of high quality cannabis, announced this week that they experienced a 95% increase in sales revenue in the three-month period ended August 31, 2018 compared to the previous three-month period which ended May 31, 2018. Liberty's recent quarterly revenue totaled $2.2 million compared to $1.1 million for the previous quarter, a 95% increase. The growth in revenue reflects the wider recognition of the Liberty brands in terms of quality and consistency as well as the patient-centric approach that the Company uses. The corresponding patient count increased to almost 10,000 patients at the end of August from 4,600 at the end of May, a 112% increase over this time period. "We are proud of our operational successes and as we move into the next quarter and we will focus on continuing to lead the way in the legal cannabis space with our portfolio of high-quality cannabis products, all while increasing shareholder value," said George Scorsis, CEO of Liberty Health Sciences.
Canopy Growth Corporation (TSX:WEED.TO) (NYSE: CGC) and Hiku Brands Company Ltd. (CNQ:HIKU.CN) (together, the "Companies") recently announced the closing of the previously announced acquisition of Hiku by Canopy Growth (the "Transaction"). The announcement follows Hiku's special meeting of shareholders held on August 30, 2018 where holders of the common shares of Hiku (the "Hiku Shares") voted to approve the Transaction. "Leaves begin to turn. Canopy adds bold new brands. Ready for retail," commented Bruce Linton , Chairman & Co-CEO, Canopy Growth. "The Tweed and Vert brands we've built are now complemented with the likes of DOJA, Tokyo Smoke, Maitri, and Van der Pop , placing the taste-makers of tomorrow's cannabis industry on the same team."Since day one we've believed in a singular vision - that recreational cannabis is a consumer product and that consumers will ultimately choose brands they identify with from exceptional retail environments," said Alan Gertner , CEO, Hiku. "Today is a pivotal moment in our journey as it represents the chance to tell our story on the biggest stage with the greatest cannabis company the world has ever seen. We could not be more honoured to bring best in class brands and retail to consumers alongside Canopy Growth."
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