- Financialnewsmedia.com News Commentary
PALM BEACH, Florida, Nov. 12, 2019 /PRNewswire/ -- The global cannabis market is still in the early innings of a multi-year boom. Thanks in large part to growing acceptance of cannabis – including Canada's legalization in October 2018, further U.S. state approval, and the 2018 Farm Bill, the global market is expected to reach $146.4 billion by 2025, according to Grand View Research Inc. from $7.06 billion in 2016. In addition, the growing adoption of cannabis in medical applications such as cancer, mental disorders, and chronic pain is expected to propel revenue growth even more. That's leading to a wide range of opportunity for companies including Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF), Cronos Group Inc. (NASDAQ:CRON), Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNHF), and Origin House (CSE:OH) (OTCQX:ORHOF).
Rubicon Organics Inc. (CSE:ROMJ) (OTCQX:ROMJF) BREAKING NEWS: Rubicon Organics Inc. just announced that it successfully completed its first commercial-scale harvest of certified organic, high-quality cannabis at the Company's flagship 125,000-square-foot hybrid greenhouse facility in Delta, B.C. The initial harvest passed all microbiology and contaminant testing to be fully compliant with Health Canada standards and has enabled the company to submit its sales license amendment with Health Canada -- marking a significant milestone in the company's execution strategy as it moves towards brand launch in Canada. "The success of our first commercial-scale harvest is proof of concept that Rubicon Organics' proprietary cultivation methods – developed over years of research and development – can grow fully compliant, exceptional quality, certified organic cannabis at scale in Canada," stated Jesse McConnell, CEO of Rubicon Organics. "We are very proud of our dedicated cultivation team which has fully delivered against the design expectations and target yields of our hybrid facility in Delta. We are now moving down the path towards securing our sales license to bring high-quality, certified organic products directly to the market in the coming months."
Rubicon Organics' initial commercial-scale crop was plantmatued in mid-June and harvested from the end of September to mid-October, yielding high-quality flower in line with facility design capacity specifications. The crop has passed analytical testing to ensure safety and compliance with Health Canada standards, which places stringent limits on the presence of heavy metals, pesticides, microorganisms, mold and other contaminants. The crop has now been dried, bulk packaged and will be entering the final packaging stage in preparation for brand launch.
Other cannabis-related developments from around the markets include:
Cronos Group Inc. (NASDAQ:CRON) noted the separately announced closing of the AUD$20 million initial public offering of Cronos Australia Limited. Under the offering, Cronos Australia issued 40 million new shares at an offering price of AUD$0.50 per share. Cronos Australia expects to start trading on the Australian Securities Exchange on a deferred settlement basis on November 7, 2019.
Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) announced the voting results from its Annual General Meeting of Shareholders, held in Edmonton, Alberta, on November 8, 2019. The total number of shares represented by shareholders present in person and by proxy at the meeting was approximately 437.9 million, representing 42.6% of Aurora's issued and outstanding Common Shares. All of the matters put forward before shareholders for consideration and approval as set out in the Company's Management Information Circular dated September 17, 2019, were approved by the requisite majority of votes cast at the Meeting. The shareholders also approved the: (i) appointment of KPMG LLP as auditors of the Company for the ensuing year; and (ii) non-binding advisory resolution on the Company's approach to executive compensation.
Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNHF) announced that it served an average of 1,923 customers per day in October at an average ticket of $94.48 from the Planet 13 Las Vegas Cannabis Entertainment Complex. Planet 13 has provided monthly traffic updates for the first year of operations. Going forward, Planet 13 will provide traffic updates as part of its quarterly Management Discussion and Analysis. "The SuperStore opened a year ago, and in that time has grown to be a key part of the Las Vegas Strip experience. We've consistently averaged 9% of the state's total cannabis sales out of one location," said Larry Scheffler, Co-CEO of Planet 13. "We opened our Phase II expansion last week and are excited about delivering another year of growth and strong results for our shareholders."
Origin House (CSE:OH)(OTCQX:ORHOF) announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has expired with respect to the proposed acquisition of Origin House by Cresco Labs. The expiration of the waiting period under the HSR Act satisfies one of the remaining conditions to completing the Transaction. With the waiting period passed, the parties are now working towards closing the Transaction on terms that will be mutually agreeable to both parties. "We look forward to working through the remaining steps required to close the Transaction" said Charlie Bachtell, CEO and Co-founder of Cresco Labs. Marc Lustig, Chairman and CEO of Origin House, added "the expiration of the HSR Act waiting period is a significant milestone for this transaction and for the entire cannabis industry."
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