Proactiveinvestors USA & Canada Pyxus International Inc https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Pyxus International Inc RSS feed en Tue, 16 Jul 2019 05:27:59 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Pyxus' industrial hemp joint venture launches line of CBD products ]]> https://www.proactiveinvestors.com/companies/news/210492/pyxus-industrial-hemp-joint-venture-launches-line-of-cbd-products-210492.html Pyxus International Inc (NYSE:PYX), a value-added agricultural company, announced Tuesday that its joint venture, Criticality, a North Carolina-based industrial hemp company, launched Korent, a new line of cannabidiol (CBD) oil products.

The company said Korent's full-spectrum oil drops are available in Vanilla Mint and Grape flavors, in multiple sizes and concentrations. Flavors were custom designed for hemp products in partnership with Purilum LLC, a leading flavor manufacturer and Pyxus-affiliated company.

READ: Andrew Left’s Citron Research sets $65 price target for Pyxus International stock, says it's 'a perfect hedge'

"Criticality's science-based approach to the extraction, refinement and formulation of high-quality CBD products makes it well positioned in the market and presents a huge growth opportunity for both Criticality and Pyxus," said Pyxus International CEO Pieter Sikkel in a statement.

Criticality specializes in environmental-friendly, all-natural, solvent-free fluid extraction and purification. It recently announced the development of a 55,000 square feet CBD production facility in Wilson, North Carolina. Construction is expected to be finalized by the end of 2018.

"Criticality is excited about the launch of Korent and making our products available to consumers," said Criticality CEO Brian Moyer. "We believe in the efficacy of our CBD products. Given the considerable market interest, we're proud to offer products that meet the highest standards in the industry."

Criticality intends to continue to launch additional products from its innovation pipeline, including a CBD e-liquids line, topicals and other oral products, and expand retail distribution in the coming months.

Pyxus has an interest in the Canadian cannabis market through its indirect Canadian subsidiary FIGR. FIGR East, which is licensed under the name Canada’s Island Garden, is one of only 29 firms to receive an oil production and sales license from Health Canada.

Formerly known as Alliance One International, Pyxus began trading on the New York Stock Exchange under its ticker symbol PYX as of September, joining the ranks of the few other US-listed cannabis companies.

The North Carolina company offers products in the leaf tobacco, e-Liquids, industrial hemp and legal cannabis industries.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 04 Dec 2018 08:47:00 -0500 https://www.proactiveinvestors.com/companies/news/210492/pyxus-industrial-hemp-joint-venture-launches-line-of-cbd-products-210492.html
<![CDATA[News - Pyxus International swings to loss in fiscal 2Q as tobacco market takes a hit ]]> https://www.proactiveinvestors.com/companies/news/208859/pyxus-international-swings-to-loss-in-fiscal-2q-as-tobacco-market-takes-a-hit-208859.html Pyxus International Inc (NYSE:PYX) swung to a loss in its second fiscal quarter as the U.S. tobacco market took a hit from foreign tariffs, poor weather conditions and the strength of the US dollar.

In its latest quarter ended September 30, the Morrisville, North Carolina agriculture company reported a net loss of $54.6 million, or $6.04 per share, compared with a gain in the year-ago quarter of $1.0 million, or $0.11 per share.

Sales and other operating revenues also fell 11.7% in the latest quarter to $394.9 million compared with the year-ago quarter due to lower prices and volumes, stemming from the timing of shipments and a larger crop last year in South America.

In response to the results, investors sent Pyxus shares down 24% to $19.26 in Thursday's morning trading session.

“The second fiscal quarter typically is a seasonally lower quarter, and the second quarter this year overall was impacted by decreased volumes due to shipment timing, the larger crop in South America last year and a stronger US dollar in certain markets,” said Pieter Sikkel, Pyxus’s CEO, in a statement.

“The North American tobacco market, in particular, was impacted by new and increased foreign tariffs on US tobacco, adverse weather conditions and the strength of the US dollar,” he added.

Due to foreign tariffs and Hurricane Florence, Pyxus forecasts a “negative impact” to operating income for the full fiscal year of about $25 million related to the North American tobacco business and the new Argentina export tax, when compared to the prior year.

READ: Andrew Left’s Citron Research sets $65 price target for Pyxus International stock, says it's 'a perfect hedge'

Pyxus also saw a slower roll-out of its industrial hemp business due to weather and the impact of completing construction of its new facility in Eastern North Carolina. The impact of Hurricane Florence across North Carolina caused construction delays at its hemp manufacturing plant but had little impact on the current hemp crop.

Due to a number of factors, Pyxus is opting to consolidate all of its US processing operations to its facility in Wilson, North Carolina, starting next year.

Pyxus has an interest in the Canadian cannabis market through its indirect Canadian subsidiary FIGR.

FIGR East, which is licensed under the name Canada’s Island Garden, is one of only 29 firms to receive an oil production and sales license from Health Canada.

Formerly known as Alliance One International, Pyxus began trading on the New York Stock Exchange under its ticker symbol PYX as of September, joining the ranks of the few other US-listed cannabis companies.

The North Carolina company offers products in the leaf tobacco, e-Liquids, industrial hemp and legal cannabis industries.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 08 Nov 2018 09:29:00 -0500 https://www.proactiveinvestors.com/companies/news/208859/pyxus-international-swings-to-loss-in-fiscal-2q-as-tobacco-market-takes-a-hit-208859.html
<![CDATA[Media files - Small-Cap Snapshot: Pyxus International soars thanks to rosy report about medical cannabis market ]]> https://www.proactiveinvestors.com/companies/stocktube/11107/small-cap-snapshot-pyxus-international-soars-thanks-to-rosy-report-about-medical-cannabis-market Mon, 05 Nov 2018 11:41:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/11107/small-cap-snapshot-pyxus-international-soars-thanks-to-rosy-report-about-medical-cannabis-market <![CDATA[News - Here's an artful—and hands-on—approach to micro-cap investing ]]> https://www.proactiveinvestors.com/companies/news/206927/here-s-an-artfuland-hands-onapproach-to-micro-cap-investing-206927.html “Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage.”  –Peter Lynch

Think back to your college days. How many times did a professor assign a project and the first emotion you felt was fear, with heart-pounding stress coming in a close second?

Your fear and stress were likely an immediate response to what seemed like a complicated and overwhelming project. But once you took a step back and began breaking down the project into more manageable, three- and four-hour tasks, the assignment wasn’t nearly as scary. 

There's a saying, sometimes attributed to Mark Twain, that says the secret to getting ahead is just getting started.

Investing is no different. 

By the end of my sophomore year in college, with a couple of finance and economics courses under my belt, I was sure my understanding of financial statements and valuation ratios would carry me to investing success. After all, if I can determine price/earnings and price/book multiple, surely, I can figure out whether a stock was priced for perfection or being sold for pennies on the dollar. 

While my college professors imparted a rudimentary understanding of fundamental financial analysis to me, they failed to explain the artful intricacies that go along with being able to decipher an income statement. And if you believe, as I do, that investing is three parts art and one part science, I'm sure you can appreciate the potential dangers of making decisions under the assumption that price/earnings multiples tell you everything you need to know.

WATCH: Recent cannabis stock volatility not dampening industry prospects

A scientific approach to stock analysis tends to focus on financial statements and primary valuation metrics. And while there are highly educated teams comprised of mathematicians, physicists, and statisticians making vast sums of money in the stock market, often a singularly left-brain approach to investing fails to produce market-beating results. 

Remember, if everyone has access to the same information — and in this case, I am referring to financial statements and valuation ratios — you probably don’t have an investment edge.

When investing legend Peter Lynch shared his view that investing in stocks is an art, not a science, he wasn’t suggesting we all begin studying charts, plotting out moving averages, and brushing up on our understanding of Relative Strength Indicators.

Lynch’s point was that while we must determine whether a company is financially sound, we also need to adopt an artful approach to our investing. And that means being willing to look where others won’t and developing the ability to think outside the box in a manner most cannot. 

Filling Wall Street's research void—by yourself

Analyzing microcap companies doesn’t need to be paralyzingly stressful, but it does require a set of skills most self-directed investors either lack or are unwilling to learn. 

You see, Wall Street makes its money by charging companies large investment banking fees. But since micro-cap companies with market capitalizations below $500 million rarely generate hefty investment banking fees, big Wall Street investment shops have little motivation to publish investment research on these micro-cap stocks. 

So, this means you need to learn how to be an investigative investor when it comes to analyzing a micro-cap company.

Always begin with some basic financials merely to determine whether the company is at risk of running out of money over the near term.

Then, after some fundamental analysis, you need to shift gears and set the problem-solving and logical side of your brain aside and start relying on your creative and intuitive side.

Micro-cap investing: an artful approach

Micro-cap companies aren’t always unprofitable enterprises, but many are. So, if you’re using traditional valuation ratios to try and make sense of unprofitable companies, you’re probably going to abandon a ton of stocks that have enormous potential.

And remember, while the financials of a $25 billion company can provide a realistic roadmap for what that company can be expected to accomplish over the next six to 12 months, for a $20 million growth company, the financials are apt to be stale an hour after they’ve been filed with the SEC. 

An artful approach to investing requires you to look behind the balance sheet. For every 10 minutes you spend studying a micro-cap’s mix of assets and liabilities, you should spend 40 minutes or an hour understanding the company’s total addressable market, product growth potential, and industry expansion prospects.

Analysis in action

In mid-September 2018, I published a story on Proactive Investors about how Alliance International Inc (NYSE:AOI) changed its name to Pyxus International (NYSE:PYX) to better reflect the company’s transformation away from a tobacco packaging and growing company and into cannabis and other non-leaf growing areas of the industry.

What attracted me to Pyxus wasn’t the company’s financials; it was management’s vision and the story that executives were pitching to investors. And within an hour of reading past earnings transcripts and press releases, it was clear Wall Street was missing a great story.

READ: Tobacco player Alliance One International turns over a new (and greener) leaf as Pyxus International

Since that article first ran on Proactive’s website, Pyxus’ stock has run up from less than $20 to as high as $52. But the company’s financials haven’t changed a bit.

So, why did the stock more than double? 

Simply put, the company’s story gained traction and Pyxus morphed from an undiscovered gem into a short-term momentum darling.

--At the time of publication, Bob Byrne had no positions in the stocks mentioned.

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Fri, 12 Oct 2018 11:30:00 -0400 https://www.proactiveinvestors.com/companies/news/206927/here-s-an-artfuland-hands-onapproach-to-micro-cap-investing-206927.html
<![CDATA[Media files - Bob Byrne's bullish take on Pxyus International's pivot to cannabis is winning over investors ]]> https://www.proactiveinvestors.com/companies/stocktube/10825/bob-byrne-s-bullish-take-on-pxyus-international-s-pivot-to-cannabis-is-winning-over-investors-10825.html Thu, 11 Oct 2018 14:45:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10825/bob-byrne-s-bullish-take-on-pxyus-international-s-pivot-to-cannabis-is-winning-over-investors-10825.html <![CDATA[News - Andrew Left’s Citron Research sets $65 price target for Pyxus International stock, says it's 'a perfect hedge' ]]> https://www.proactiveinvestors.com/companies/news/206929/Andrew-Left%E2%80%99s-Citron-Research-sets-65-price-target-for-Pyxus-International-stock-says-it%27s-%27a-perfect-hedge%27-206929.html Shares of Pyxus International Inc (NYSE:PYX) jumped as high as 15% on Thursday in response to a bullish tweet and report released by Citron Research.

Long $PYX- tgt $65 Altria's interest in Aphria shows maturation of old tobacco. Pyxus has most to gain with a defined plan and management never seen before in Cannabis https://t.co/5XBT9w5Lyg

— Citron Research (@CitronResearch) October 11, 2018

It's a change of pace for short-seller Andrew Left's Citron Research, which has been shorting (and scrapping with) a number of cannabis companies, such as Cronos Group Inc (NASDAQ:CRON) and Namaste Technologies Inc (CVE:N, OTCQB:NXTTF).

However, the infamous short-seller is long on tobacco-meets-cannabis company Pyxus International Inc (NYSE:PYX), with a price target of $65. 

"Yesterday’s report that Altria is in talks to buy a stake in Aphria shows the maturation of legacy tobacco. PYX to be the greatest beneficiary," said the report. 

The North Carolina-based company offers products in the leaf tobacco, e-Liquids, industrial hemp and legal cannabis industries.

READ: Tobacco player Alliance One International turns over a new (and greener) leaf as Pyxus International

Citron Research highlighted the company’s strong management team and tight float.

"The board of directors is particularly impressive at Pyxus as it is stacked with agriculture and tobacco pedigree," wrote analysts at Citron. 

Citron said Pyxus is unlikely to have "execution risk" because it knows how to operate a successful business.

"What we think is interesting about PYX is that the legacy tobacco business is covered by the current valuation and as an investor, you get free upside on a real cannabis business," wrote the analysts.

"Put another way, assuming Pyxus' legacy tobacco business is worth $500 million (which covers the debt and half the equity when you remove inventory and AR), the cannabis opportunity is only valued at about $150 million. Given yesterday’s news, this makes the risk/reward for Pyxus very compelling especially as Altria gets involved with Aphria formally at a $5 billion valuation or you can instead by this call option in Pyxus," they added. 

Citron said it was short many names in the Canadian cannabis space, but believed that Pyxus is a "perfect hedge" as the company has a "solid underlying business" that has value.

"In the last 12 months, Canopy Growth Corp, Tilray Inc, and Cronos Group Inc have generated slightly over $100 million in combined revenue while Pyxus alone generated almost $2 billion. Despite this large discrepancy, Pyxus only has a market cap of about $350 million while the others each have multi-billion-dollar valuations," wrote the analysts.  

"As of 6/30/18, adjusted net debt was $709 million (debt minus cash minus seasonal borrowings supported by committed inventory), so enterprise value is only about $1 billion," they added.

The tobacco company’s Canadian subsidiary recently received a cannabis cultivation license from Health Canada. Pyxus also owns majority stakes in two Canadian licensed cannabis producers.

Shares of Pyxus were up 10.9% midday at $44.42

Contact Katie Lewis at katie@proactiveinvestors.com

Follow her on Twitter: @kelewis

-- Updates with new quotes from Citron report -- 

-- Uttara Choudhury contributed to this report  --

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Thu, 11 Oct 2018 12:43:00 -0400 https://www.proactiveinvestors.com/companies/news/206929/Andrew-Left%E2%80%99s-Citron-Research-sets-65-price-target-for-Pyxus-International-stock-says-it%27s-%27a-perfect-hedge%27-206929.html
<![CDATA[News - Pyxus International rockets after its indirect subsidiary receives a cannabis cultivation license from Health Canada ]]> https://www.proactiveinvestors.com/companies/news/206229/pyxus-international-rockets-after-its-indirect-subsidiary-receives-a-cannabis-cultivation-license-from-health-canada-206229.html Shares of Pyxus International Inc (NYSE:PYX) soared Tuesday after the North Carolina agriculture company announced that its indirect Canadian subsidiary, Goldleaf Pharm Inc, received a cultivation license from Health Canada.

Pyxus International stock shot up nearly 24% to $28.72.

The Access to Cannabis for Medical Purposes Regulations (ACMPR) cultivation license permits Goldleaf Pharm to begin cultivating medicinal cannabis at its Simcoe, Ontario facility.

"This is an important step, and an exciting time, for us at Goldleaf Pharm," Goldleaf Pharm co-founder Larry Huszczo, said in a statement.

READ: Criticality partners with Pyxus to bring industrial hemp extraction to North Carolina

"We have a state of the art 20,000 square foot indoor growing facility, and recently acquired 20-acres of adjacent property, giving us the ability to expand to more than 700,000 square feet of production space to cultivate cannabis. I am very proud of our team, which has worked diligently to meet Health Canada's requirements," he added.

Goldleaf Pharm is a subsidiary of Pyxus' indirect Canadian subsidiary, FIGR Inc. FIGR’s Charlottetown subsidiary, Canada's Island Garden also received a nod from Health Canada to sell medicinal cannabis oils.

Canada's Island Garden previously announced a supply agreement with the province of Prince Edward Island for 1,000 kilograms of cannabis products.

READ: Tobacco player Alliance One International turns over a new (and greener) leaf

Pyxus International recently changed its name from Alliance One International, joining the ranks of the few other US-listed cannabis companies.

The North Carolina company offers products in the leaf tobacco, e-Liquids, industrial hemp and legal cannabis industries.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 02 Oct 2018 14:00:00 -0400 https://www.proactiveinvestors.com/companies/news/206229/pyxus-international-rockets-after-its-indirect-subsidiary-receives-a-cannabis-cultivation-license-from-health-canada-206229.html
<![CDATA[News - Tobacco player Alliance One International turns over a new (and greener) leaf as Pyxus International ]]> https://www.proactiveinvestors.com/companies/news/204871/tobacco-player-alliance-one-international-turns-over-a-new-and-greener-leaf-as-pyxus-international-204871.html This article was originally published on Sept. 15, 2018:

Momentum-oriented investors are attracted to high-flying industries. In the mid- to late-1990s it was technology and the Dot.Com mania. In the early- to mid-2000s it was housing and energy-related companies. And from mid-2011 until mid-2015 momentum investors shifted their investing dollars to biotech. 

Growth-oriented investors aren’t as concerned with valuations as they are with sales growth. And in today’s market, investors looking for the next area of explosive growth are right to be focused on the cannabis industry.

But for US-based investors, cannabis companies present a unique challenge.

Cannabis is still listed as a Schedule 1 drug under the Controlled Substances Act, and that means most US-based institutions have relatively few ways to invest in the cannabis space.  

Currently, investors unwilling to dabble in the under-regulated over-the-counter bulletin board market are limited to investing in companies like Canopy Growth Corp (NYSE:CGC), Tilray Inc (NASDAQ:TLRY) and Cronos Group Inc (NASDAQ:CRON).

But these three names have become overrun with speculative money likely to jump ship at the first sign of trouble. 

US investors need to face a basic fact: Demand for legitimate cannabis investment exposure is swamping the available supply.  

Now, because an increasing number of investors want exposure to the cannabis space via the major stock exchanges (Nasdaq and NYSE), investors can either chase the red-hot price momentum in a stock like Tilray, which has risen nearly 300% in the last month, or they can dig deep and find the under-the-radar companies just beginning to get involved in cannabis.

I, for one, prefer to do some digging.   

Transforming Tobacco into Cannabis

Morrisville, North Carolina-based Alliance One International (NYSE: AOI) is a $226 million company that’s traditionally been known as a small player in the tobacco packaging and growing industry. But earlier this year Alliance One’s management announced a bold initiative aimed at both changing the public’s perception of the company and clearing a path for the company to grow and expand into non-leaf growing areas of its industry.  

On February 8, 2018, Alliance One International’s president and chief executive, Pieter Sikkel, sent a letter to shareholders announcing a series of developments aimed at driving the company’s growth over the next two to three years.

In Sikkel’s letter, he highlighted the fact that AOI is no longer a pure tobacco grower or packaging company. And to underscore the fact that AOI is and will continue to become more than a run-of-the-mill tobacco company, the board announced the One Tomorrow transformation campaign. 

When AOI announced the One Tomorrow campaign in early February, management made sure to provide enough color to keep investors from thinking they were merely trying to gloss over legacy issues and stabilize the declining stock price.  

After Sikkel told investors that he believes the One Tomorrow campaign will “drive future growth opportunities and reshape our brand as the trusted provider of responsibly produce, independently verified, sustainable, and traceable agricultural products and services,” he went on to lay out what the company believes are compelling market opportunities.  

Here’s what Sikkel told investors back on February 8:  

“Most of our new business lines focus on products that are value-added or require some degree of processing. These products generally have higher margin potential than our core business and play well to our strengths. In January, we successfully acquired majority stakes in two new joint ventures. The extension into growth segments, namely e-liquids, industrial hemp, and cannabis, expands Alliance One’s presence in higher margin, fast-growing categories.”

A Foray into Cannabis

Shortly before announcing the One Tomorrow campaign, in January 2018, the company’s wholly owned indirect subsidiary, Canadian Cultivated Products, acquired a 75% equity position in Canada’s Island Garden Inc. (CIG) and an 80% stake in Goldleaf Pharm Inc. (Goldleaf).  

In May 2018, Canadian Cultivated Products was rebranded to FIGR Cannabis, Canada’s Island Garden was rebranded to FIGR East, and Goldleaf Pharm was changed to FIGR Norfolk. FIGR products are expected to become available  in Canada on October 17 when the recreational adult market is fully legalized, though medical patients can already purchase cannabis under current Canada’s Island Garden brand.  

Alliance One Rebranded

In the company’s most recent earnings conference call, Pieter Sikkel said this to investors:

“The measured investments we are making in our industrial hemp, e-liquids and legal Canadian cannabis business lines will allow us to build out our capabilities to position us for further success in evolving regulatory and consumer environments. We believe our new businesses afford us more than just growth opportunities. As we build upon our agronomy expertise and traceability capabilities, we can create different and better consumer products as well as offering value-added services and processes that research shows, both business customers and consumers are seeking.”

But new investments aren’t the only focus. To drive home how crucial it is that investors recognized the company’s commitment to One Tomorrow and its new growth initiatives, Alliance One International has changed its name and rebranded itself as Pyxus International (NYSE: PYX).  

A Long-Term Breakout

Alliance One (now Pyxus International) broke out of a long-term downtrend in February 2018 when the company announced its One Tomorrow Campaign and began discussing its move into legal cannabis.  

The cannabis announcement was good for more than 120%, as AOI’s stock rocketed to $30 from $13 between early February and mid-March. But like most cannabis stocks, the shares came under pressure and drifted from near $30 to below $14 by late July. 

Investors rediscovered AOI/PYX and its foray into the Canadian cannabis industry on September 11, when the company’s wholly owned indirect subsidiary, FIGR Inc., announced expansion plans related to Goldenleaf Pharm.  

FIGR's announced expansion plans drove the stock 36% higher, and, once again, became a focal point for US-based cannabis investors.  

The bottom line is US investors are limited in their choices for cannabis investments. But with AOI/PYX being listed on the NYSE and relatively known among cannabis investors, this is a fantastic stock for cannabis traders to follow.

Shares of Pyxus were down just under 2% to US$12.12 in Friday morning trading in New York.

At the time of publication, Bob Byrne had no positions in the stocks mentioned.

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Thu, 13 Sep 2018 17:30:00 -0400 https://www.proactiveinvestors.com/companies/news/204871/tobacco-player-alliance-one-international-turns-over-a-new-and-greener-leaf-as-pyxus-international-204871.html
<![CDATA[News - Criticality partners with Pyxus to bring industrial hemp extraction to North Carolina ]]> https://www.proactiveinvestors.com/companies/news/204746/criticality-partners-with-pyxus-to-bring-industrial-hemp-extraction-to-north-carolina-204746.html Industrial hemp company Criticality has plans for a new extraction and purification facility in its home state of North Carolina.  

The 55,000 square foot facility will be used for the extraction and purification of locally grown industrial hemp, which will then be turned into cannabidiol liquids and oils under the company’s Korent brand.

Shares of Pyxus were up 37% to US$23.95 in morning trading.

READ: Alliance One International stock soars after subsidiary signs deal to sell medicinal cannabis oils

The hemp processor is teaming up with agricultural company Pyxus International Inc (NYSE:PYX) , formerly known as Alliance One International Inc. (NYSE: AOI), to keep tabs on the new operations.

Pyxus’ SENTRITM track and trace technology gives insight into the lifecycle of the products by monitoring data related to the growth, cultivation, harvest, processing, formulation, testing and release of individual batches.

The renovation is expected to be completed in fall 2018.

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Wed, 12 Sep 2018 09:28:00 -0400 https://www.proactiveinvestors.com/companies/news/204746/criticality-partners-with-pyxus-to-bring-industrial-hemp-extraction-to-north-carolina-204746.html
<![CDATA[News - Alliance One International stock soars after subsidiary signs deal to sell medicinal cannabis oils ]]> https://www.proactiveinvestors.com/companies/news/204672/alliance-one-international-stock-soars-after-subsidiary-signs-deal-to-sell-medicinal-cannabis-oils-204672.html Alliance One International Inc (NYSE:AOI) stock rallied on Tuesday after its wholly-owned indirect subsidiary, FIGR Inc, received permission from Health Canada allowing the sale of medicinal cannabis oils. 

The permit was granted to a subsidiary of FIGR, Canada's Island Garden (CIG), which was given a sales license authorizing it to sell medicinal cannabis oil products. The company had received a sales license for dried cannabis flower on February 7, 2017.

"As the only licensed producer in Prince Edward Island, we can now participate in the derivative cannabis market by further expanding our product line for patients and offering an alternative to inhaled products," said CIG president Edwin Jewell.  

Shares of Alliance One surged nearly 40% to US$24.40, having touched a session peak of US$25.40.

READ: Aurora Cannabis acquires ICC Labs to expand in South American market

CIG previously announced a supply agreement with the province of Prince Edward Island for 1,000 kilograms/kilogram equivalent of cannabis products, which will now include cannabis oils.

Cannabis oils are extracts that are derived from the cannabis plant. Cannabidiol, or CBD, is used to treat epileptic seizures among others.

FIGR is a holding company that owns majority stakes in two Canadian cannabis producers, Canada's Island Garden, a licensed producer in Charlottetown, Prince Edward Island, and Goldleaf Pharm, a late-stage licensed producer applicant in Simcoe, Ontario.

AOI, on the other hand, is an agricultural company that provides sustainable and traceable products and ingredients. The company is based in Morrisville, North Carolina.

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Tue, 11 Sep 2018 14:07:00 -0400 https://www.proactiveinvestors.com/companies/news/204672/alliance-one-international-stock-soars-after-subsidiary-signs-deal-to-sell-medicinal-cannabis-oils-204672.html