Proactiveinvestors USA & Canada Canopy Growth Corporation https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Canopy Growth Corporation RSS feed en Sat, 16 Feb 2019 05:37:21 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Canopy Growth rallies after cannabis giant almost quadruples 3Q revenue ]]> https://www.proactiveinvestors.com/companies/news/214725/canopy-growth-rallies-after-cannabis-giant-almost-quadruples-3q-revenue-214725.html Canopy Growth Corp (NYSE:CGC) (TSE:WEED) rallied Friday after reporting that third-quarter revenue almost quadrupled from a year earlier.

For the quarter ended December 31, the world’s largest marijuana company in terms of market cap posted net revenue of C$83 million, compared with C$21.7 million a year earlier.

Shares of the company advanced 4.8% to US$48.25 in Friday’s New York trading. 

READ: Canopy Growth pours C$30M into Canopy Rivers

Net income climbed to C$74.9 million, or C$0.22 per share, from C$11 million, or C$0.01 per share a year earlier. On a diluted basis, the company reported a loss of C$0.38 per share.

“Our successful first full quarter with recreational sales in Canada reinforces our long-held strategy of making meaningful investments early in order to secure market share,” Chairman and Co-CEO Bruce Linton said in a statement.

Canada legalized the recreational use of marijuana in October.

Constellation Brands investment

A highlight of the third quarter was the closing of a C$5 billion investment in Canopy Growth from the liquor giant Constellation Brands Inc (NYSE:STZ). In addition, Canopy Growth expanded into the UK and Peru and announced plans to set up in New York State, marking its first foray into the US hemp market.

Canopy Growth said its intellectual property portfolio grew to 32 issued patents and more than 140 patent applications, ranging from technology to genetics to clinical formulations.

Cannabis shipments for Canopy Growth totaled 10,102 kilograms and kilogram equivalents, the company reported.

–This story was updated to give the latest stock price and details from the earnings report–

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Fri, 15 Feb 2019 08:08:00 -0500 https://www.proactiveinvestors.com/companies/news/214725/canopy-growth-rallies-after-cannabis-giant-almost-quadruples-3q-revenue-214725.html
<![CDATA[Media files - Buds & Duds: Canopy Growth declines after announcing C$30M investment boost for Canopy Rivers spin-off ]]> https://www.proactiveinvestors.com/companies/stocktube/12142/buds--duds-canopy-growth-declines-after-announcing-c30m-investment-boost-for-canopy-rivers-spin-off-12142.html Thu, 07 Feb 2019 15:08:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12142/buds--duds-canopy-growth-declines-after-announcing-c30m-investment-boost-for-canopy-rivers-spin-off-12142.html <![CDATA[News - Canopy Growth pours C$30M into Canopy Rivers ]]> https://www.proactiveinvestors.com/companies/news/214209/canopy-growth-pours-c30m-into-canopy-rivers-214209.html Canopy Growth (TSE:WEED) NYSE:CGC) said Thursday that it intends to increase its total investment in its investing arm Canopy Rivers Inc (OTCMKTS:CNPOF) by C$30 million.

The investment by the Canadian cannabis company will be made via a private placement of subordinated voting shares in the capital of Canopy Rivers in parallel with Canopy Rivers bought deal offering of subordinate voting shares.

After the closing of the deal, Canopy Growth will increase its ownership of Canopy Rivers shares to 27.3% from about 26.5%.

READ: Canopy Growth stock climbs after Piper Jaffray raises price target to $60 from $40

"The advantage of a strengthened Canopy Rivers/Canopy Growth relationship is that it accelerates and de-risks execution for invested companies," said Bruce Linton, Canopy Growth's founder and co-CEO, in a statement.

"By increasing Canopy Growth's investment in Canopy Rivers, we are demonstrating our interest in growing great companies, developing selective opportunities and delivering Canopy's shareholders more growth," added Linton.

The investment is being co-led by CIBC Capital Markets and is expected to close on or around February 27.

New York-based beverage group Constellation Brands Inc (NYSE:STZ) last year invested $4 billion into Canopy, raising its stake to 37% as it becomes bullish on the future of the cannabis industry.

Canopy Growth shares held steady at $46.66 in afternoon trade on Thursday while Canopy Rivers stock slipped 1.92% to $3.57.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 07 Feb 2019 14:04:00 -0500 https://www.proactiveinvestors.com/companies/news/214209/canopy-growth-pours-c30m-into-canopy-rivers-214209.html
<![CDATA[Media files - Buds & Duds: Canopy Growth gains as spinoff completes investment in Italian cannabis company ]]> https://www.proactiveinvestors.com/companies/stocktube/12099/buds--duds-canopy-growth-gains-as-spinoff-completes-investment-in-italian-cannabis-company-12099.html Mon, 04 Feb 2019 16:09:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12099/buds--duds-canopy-growth-gains-as-spinoff-completes-investment-in-italian-cannabis-company-12099.html <![CDATA[News - Canopy Growth stock climbs after Piper Jaffray raises price target to $60 from $40 ]]> https://www.proactiveinvestors.com/companies/news/213347/canopy-growth-stock-climbs-after-piper-jaffray-raises-price-target-to-60-from-40-213347.html Shares in Canopy Growth Corp (TSE:WEED) (NYSE:CGC) moved higher Friday after Piper Jaffray raised its stock price target on the Canadian cannabis company, saying it is “well positioned” in the emerging and growing market.

MarketWatch reported that analysts Michael Lavery and Jeffrey Kratky raised their target late Thursday to $60 from $40 and reiterated their overweight rating on Canopy.

Canopy's US-listed shares were up 3.6% to $45.78 before the opening bell in New York.

READ: Canada's Canopy Growth shares bloom as it receives license to develop industrial hemp in New York

Piper is expecting the global cannabis market to be worth $250 billion to $500 billion in the long term and to be worth $15 billion to be $50 billion near term.

"We believe the long-term growth can be significant — both from transitioning illicit trade to legal sales, medical sales, and from transitioning sales in health & wellness categories to CBD-infused products," they wrote in a note to clients.

Canopy’s hemp ambitions were bolstered with the receipt of a license from New York state to grow and process the plant.

Hemp does not contain the psychoactive ingredient associated with cannabis but does contain CBD (or cannabidiol), which is of increasing interest to consumers as it is believed to combat a range of health problems, including stress and sleep disorders.

The analysts said Canopy's recent success in receiving a legal hemp license in New York is "a tangible first step forward in the US that points to the beginning of a long US growth trajectory."

Canopy wants to establish a large-scale production center in New York state and it is currently evaluating a number of sites in the Southern Tier. It will be the first such facility outside Canada.

READ: Canopy Growth remains the superior bet when playing cannabis stocks, says Jim Cramer

Canopy said it plans to invest between $100 million and $150 million in the site, which will be able to generate tons of hemp extracts a year.

“The analysts nonetheless trimmed their estimates for an initial sales build. They are now expecting 10,000 kg sold for Canopy in the Canadian recreational market in its fiscal third quarter, down from 14,000 kg, or for C$87 million ($65.3 million),” reported Market Watch.

Hemp also has industrial applications and Canopy wants to establish a large-scale production center in the state and it is currently evaluating a number of sites in the Southern Tier. It will be the first such facility outside Canada.

Canopy said it plans to invest between US$100 million and US$150 million in the site, which will be able to generate tons of hemp extract a year.

New York-based beverage group Constellation Brands Inc (NYSE:STZ), whose shares are up 1.2% at $161, recently invested $4 billion into Canopy, raising its stake to 37% as it becomes bullish on the future of the cannabis industry.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Fri, 25 Jan 2019 07:47:00 -0500 https://www.proactiveinvestors.com/companies/news/213347/canopy-growth-stock-climbs-after-piper-jaffray-raises-price-target-to-60-from-40-213347.html
<![CDATA[News - Canada's Canopy Growth shares bloom as it receives license to develop industrial hemp in New York ]]> https://www.proactiveinvestors.com/companies/news/212534/canada-s-canopy-growth-shares-bloom-as-it-receives-license-to-develop-industrial-hemp-in-new-york-212534.html Shares in Canada's Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) moved higher Monday as its hemp ambitions were bolstered with the receipt of a license from New York state to grow and process the plant.

Hemp does not contain the psychoactive ingredient associated with cannabis but does contain CBD (or cannabidiol), which is of increasing interest to consumers as it is believed to combat a range of health problems, including stress and sleep disorders.

Canopy Growth shares gained nearly 9% to $55.29 in Toronto.

READ: Constellation Brands closes $4B investment in Canopy Growth

Hemp also has industrial applications and Canopy wants to establish a large-scale production center in the state and it is currently evaluating a number of sites in the Southern Tier. It will be the first such facility outside Canada.

Canopy said it plans to invest between US$100 million and US$150 million in the site, which will be able to generate tons of hemp extract a year.

New York-based beverage group Constellation Brands Inc (NYSE:STZ), whose shares are up 1.2% at $161, recently invested US$4 billion into Canopy, raising its stake to 37% as it becomes bullish of the future of the cannabis industry.

Canopy Growth said it will source hemp exclusively from American farmers for the operation, once it is up and running.

The company highlighted in a press release the work of Governor Andrew Cuomo and US Senator Charles Schumer in helping to make the hemp deal happen.

"Governor Andrew M. Cuomo's leadership at the state level led to the creation of the Hemp Research Pilot Program, a standout in the nation," it said.

"US Senator Charles E. Schumer was instrumental in the passage of the Farm Bill, a transformative piece of legislation that gave Canopy Growth the federal guidance it needed to make a significant investment in New York."

Contact Giles at giles@proactiveinvestors.com

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Mon, 14 Jan 2019 14:54:00 -0500 https://www.proactiveinvestors.com/companies/news/212534/canada-s-canopy-growth-shares-bloom-as-it-receives-license-to-develop-industrial-hemp-in-new-york-212534.html
<![CDATA[News - Canopy Growth remains the superior bet when playing cannabis stocks, says Jim Cramer ]]> https://www.proactiveinvestors.com/companies/news/211077/canopy-growth-remains-the-superior-bet-when-playing-cannabis-stocks-says-jim-cramer-211077.html Canopy Growth (NYSE:CGC) is still the “best way” to play the Canadian cannabis market, said Jim Cramer, the much-followed stock-picker and host of CNBC’s “Mad Money”.

Cramer remains more bullish on Canopy Growth than on the Canadian cannabis company Cronos Group Inc (NASDAQ:CRON), the recent beneficiary of a $1.8 billion investment by the tobacco behemoth Altria Group (NYSE:MO).

“Even with Altria investing in Cronos, I believe that Canopy Growth remains the best way to play the Canadian cannabis market,” Cramer said, per a CNBC report.

The benefits Canopy Growth holds over Cronos are scale and the fresh injection of a $4 billion investment by beverage giant Constellation Brands Inc (NYSE"STZ), maker of Corona beer.  

READ: Canopy Growth Corporation splashes $165M on German vape maker

“Can Cronos compare to Canopy Growth? Honestly, it isn’t really a fair comparison,” Cramer said. “Canopy’s significantly larger than Cronos — we’re talking about an $11.4 billion company versus a $2.3 billion company. Canopy’s got scale and scale matters in this business.”

Canopy has a bigger repertoire of cannabis products than Cronos and also maintains its lead against its rival in medical marijuana. Canopy delivered almost 2,200 kilograms of medical cannabis, which was equal to about $23.3 million in sales last quarter, according to CNBC’s findings. Cronos, meanwhile, shipped 515 kilograms, which amounts to about $3.8 million in sales.

Constellation Brands also looks to be a better investor over the long run than Altria, which is finding it tough to widen its business beyond tobacco, said Cramer.

“To me, it seems like Constellation took its time [and] thoughtfully picked the best player to invest in, whereas Altria’s move feels a little rushed, maybe even intemperate and impulsive,” Cramer said. “When I say Canopy has a head-start, we’re talking about a big lead over the competition.”

Canopy Growth shares nudged up 0.42% to $33.31 in Wednesday’s morning trading session while Cronos shares slipped by 0.86% to $12.71.

 

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 12 Dec 2018 10:11:00 -0500 https://www.proactiveinvestors.com/companies/news/211077/canopy-growth-remains-the-superior-bet-when-playing-cannabis-stocks-says-jim-cramer-211077.html
<![CDATA[News - Canopy Growth Corporation splashes $165M on German vape maker ]]> https://www.proactiveinvestors.com/companies/news/210689/canopy-growth-corporation-splashes-165m-on-german-vape-maker-210689.html Canopy Growth Corporation (TSE:WEED) (NYSE:CGC) is splashing some of its estimated US$4 billion cash pile on a vape designer and manufacturer.

The giant of the cannabis industry is paying US$165 million (€145 million) for Germany’s Storz & Bickel, with chairman Bruce Linton calling the deal a “marquee acquisition”.

READ: Canopy Growth completes strategic extract supply agreement with MediPharm Labs

He added that the transaction leaves Canopy “well positioned” for the next wave of federally-regulated products in Canada beyond dried flower and edible oils.

“By combining [our] existing designs and Canada's open environment for federally permissible R&D with Storz & Bickel's deep IP portfolio and management team, Canopy Growth is poised to lead the high-margin vaporizing category around the world," Linton explained.

Storz founder Jürgen Bickel will remain with the business.

Swoop fits with strategy

The swoop for S&B fits with Canopy’s strategy, which is to be a “category killer” in the international market for cannabis products.

It sells a wide range of products including the dried plant, oils and capsules for both medical and recreational use.

In August, the beer and spirits group Constellation Brands made a US$3.7 billion (C$5 billion) investment in the business and the two firms are currently working on a cannabis-infused beer.

The global market for medical cannabis is forecast to generate US$180 billion within the next few years.

In 11 countries

Canopy has a presence in 11 countries, including Australia, Germany and Spain.

Most have already legalized cannabis for medical use or are on the cusp of doing so.

Noteworthy is the fact that, while Canopy’s shares are listed in New York, the firm does not conduct business in the United States where cannabis possession is still a federal status.

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Thu, 06 Dec 2018 08:27:00 -0500 https://www.proactiveinvestors.com/companies/news/210689/canopy-growth-corporation-splashes-165m-on-german-vape-maker-210689.html
<![CDATA[News - Canopy Growth completes strategic extract supply agreement with MediPharm Labs ]]> https://www.proactiveinvestors.com/companies/news/210246/canopy-growth-completes-strategic-extract-supply-agreement-with-medipharm-labs-210246.html Canadian cannabis company Canopy Growth Corp (TSX:WEED) (NYSE:CGC) said Thursday that it had entered into a strategic supply agreement with specialized cannabis extractor MediPharm Labs Inc for value-added products.

Under the terms of the 18-month agreement, MediPharm will supply up to 900 kilograms of cannabis extract for sale to Canopy Growth and its subsidiaries. Canopy Growth has committed to purchasing a minimum of 450 kilograms with an option to purchase an additional 450 kilograms.

"As the industry matures we are seeing exciting businesses like MediPharm establish specialized skill sets that will drive the industry forward. Extraction is now and will continue to be an opportunity to develop expertise and intellectual property," said Canopy Growth chairman and co-CEO Bruce Linton.

"We continue to develop our own capacity in this area and are pleased to work with MediPharm," he added.

READ: Canopy Growth loss widens in fiscal 2Q as revenue misses estimates

Canopy said the agreement will establish “an early-mover advantage” for both companies to meet an immediate need across Canada for value-added products such as soft gels.

"We are thrilled to work with Canopy Growth, the world's leading cannabis producer, to deliver the highest quality cannabis oil concentrates for medical patients and recreational consumers," said MediPharm Labs CEO Pat McCutcheon.

"This sales agreement serves as a strong endorsement of MediPharm's industry-leading extraction-only business model," added McCutcheon.

As MediPharm finalizes its Good Manufacturing Practice certification, Canopy Growth said it will explore export opportunities as a part of the strategic agreement.

During the fiscal second quarter, Canopy sold 2,197 kilograms and kilogram equivalents of cannabis at an average sale price of $9.87, up from 2,020 kilograms and kilogram equivalents at an average price of $7.99 in the prior year period. Kilograms of cannabis produced from harvests, meanwhile, soared 265% to 15,127.

Sales of oils, including Canopy’s softgel capsules, accounted for 34% of its product revenue, up from 18% in the corresponding period last year.

Canopy was on the receiving end of a $5 billion investment from the maker of Corona beer Constellation Brands. 

Shares in Canopy Growth tumbled 4.18% to $32.58 Thursday in the New York Stock Exchange and were down 3.5% to C$43.53 on the Toronto Stock Exchange.

 

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Thu, 29 Nov 2018 10:39:00 -0500 https://www.proactiveinvestors.com/companies/news/210246/canopy-growth-completes-strategic-extract-supply-agreement-with-medipharm-labs-210246.html
<![CDATA[News - Canopy Growth loss widens in fiscal 2Q as revenue misses estimates ]]> https://www.proactiveinvestors.com/companies/news/209188/canopy-growth-loss-widens-in-fiscal-2q-as-revenue-misses-estimates-209188.html Shares of Canopy Growth (TSX:WEED; NYSE:CGC) slipped before Wednesday’s opening bell after the Canadian cannabis company posted a widening of its losses in its fiscal second-quarter and revenue that missed Wall Street’s estimates.

For the three months ended on September 30, Canopy’s net loss came to C$330.61 million, or $1.52 per share, compared with a loss of $1.61 million or $0.01 per share in the corresponding period last year. The company said that $115.7 million in expenses accounted for $0.52 of the reported $1.52 loss in the quarter.

Its revenue, meanwhile, came in at $23.3 million, falling short of the consensus estimate of $59 million.

Disappointed by the results, investors sent Canopy Growth shares down 8.5% to $35.22 in pre-market trading.

Sales of oils, including Canopy’s softgel capsules, accounted for 34% of its product revenue, up from 18% in the corresponding period last year.

READ: Canopy Growth acquires assets of Colorado-based Ebbu to speed up cannabis research programs

During the quarter, Canopy sold 2,197 kilograms and kilogram equivalents of cannabis at an average sale price of $9.87, up from 2,020 kilograms and kilogram equivalents at an average price of $7.99 in the prior year period. Kilograms of cannabis produced from harvests, meanwhile, soared 265% to 15,127.

"With extensive investments over the past year, including most notably in the second quarter, in branding and retail development, our entrance into the retail cannabis market has been a success with our SKU assortment obtaining over 30% listings market share in multi-store physical retail store networks nationwide," chairman and co-CEO Bruce Linton said in a statement.

READ: Why Canopy Growth’s deal with Constellation was the best - and worst - thing for the shares

"With substantial product inventories on hand, new product formats coming to market as planned, a captive sales force driving increased demand through physical retail stores and increasing internal and channel efficiencies, we believe based on market conditions today that we will attain significant and sustainable market share of the Canadian recreational market," Linton added.

The company ended the second quarter with supply commitments to Canada’s provinces and territories of 70,000 kg, not including Ontario.

During the quarter, Canopy was on the receiving end of a $5 billion investment from the US beverage company and maker of Corona beer Constellation Brands, which closed subsequent to the quarter. The funds will be spent on intellectual property development and replicating Canopy’s Canadian platform across a number of international markets.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 14 Nov 2018 08:06:00 -0500 https://www.proactiveinvestors.com/companies/news/209188/canopy-growth-loss-widens-in-fiscal-2q-as-revenue-misses-estimates-209188.html
<![CDATA[News - Shorts to hike positions in cannabis majors Canopy Growth, Aurora Cannabis, Cronos Group and Tilray, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/208953/shorts-to-hike-positions-in-cannabis-majors-canopy-growth-aurora-cannabis-cronos-group-and-tilray-says-s3-partners-208953.html Short trading in cannabis stocks is seen increasing further in the major companies of the sector because they remain a profitable, if expensive, bet for market players, a report by analytics company S3 Partners said Friday.

"We can expect more momentum short trading in the more largely shorted, more liquid and larger capitalized securities such as Canopy Growth Corp (NYSE:CGC), Aurora Cannabis Inc (NYSE:ACB), Cronos Group Inc (NASDAQ:CRON) and Tilray Inc (NASDAQ:TLRY)," said a report by Ihor Dusaniwsky, the managing director of Predictive Analytics at S3 Partners, a company that specializes in research on the short side of the market.

The rally in the cannabis sector in 2018 prompted short sellers to add billions of dollars of exposure since the middle of the year, as they bet on a reversal in what they feel is an overheated and overvalued sector.

Short interest in the Cannabis Sector has climbed to over $3.35 billion, with the biggest shorts being Canopy Growth $CGC, Aurora Pharma $ACB, Tilray $TLRY, GW Pharma $GWPH and Cronus $CRON. New research note: https://t.co/n6j5mZhXRS pic.twitter.com/txDP11KEGP

— Ihor Dusaniwsky (@ihors3) November 9, 2018

"Short interest is now $3.35 billion in the 141 securities we track in our cannabis basket. While short interest in the sector continues to grow in 2018, exposure is very extremely concentrated, with 94% of the short interest in only 10 securities," said Dusaniwsky.

The cannabis sector gyrated sharply this week, rallying over 8% Wednesday on news that Attorney General Jeff Sessions' resignation would lead to a loosening of US cannabis policy. A day later, the stocks gave back most of their gains after investors realized immediate changes to the policy was not coming soon.

READ: Tilray shorts fell by about 45,000 in the past week, says S3 Partners

Short-selling the sector is profitable, but the cost to borrow the stock is steep, with the average borrow fee in the sector at 13.44% and short-sellers spending heavily for financing costs. The fee in other companies would usually be seen at much lower levels.

The rate to borrow Tilray stock is a 38% fee and that for Cronos is a 42% fee.

"We should expect short-selling in the cannabis sector to continue to grow, providing a slight counterbalance to the long buying frenzy and also providing trading liquidity in some of the less broadly traded securities," said Dusaniwsky.

He added: "As price volatility and momentum continues to increase in the sector, short sellers will become more active entering and exiting their positions as shorter term trades become larger Alpha generators."

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Fri, 09 Nov 2018 13:28:00 -0500 https://www.proactiveinvestors.com/companies/news/208953/shorts-to-hike-positions-in-cannabis-majors-canopy-growth-aurora-cannabis-cronos-group-and-tilray-says-s3-partners-208953.html
<![CDATA[News - Constellation Brands closes $4B investment in Canopy Growth ]]> https://www.proactiveinvestors.com/companies/news/208432/constellation-brands-closes-4b-investment-in-canopy-growth-208432.html Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, has closed its $4 billion investment (C$5.24bn) in the Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED).

The transaction, which was unveiled last August, was approved by a majority of Canopy Growth shareholders. It has also been awarded the requisite approvals by regulators, including by the Canadian government under the Investment Canada act.

Constellation’s latest investment brings its stake in the company to 37%. The company held a 9.9% stake in October 2017 with the option for future investments.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

The investment provides Canopy Growth with substantial funding to build scale in more than 30 countries where medical cannabis programs are permissible. It also establishes the necessary foundation required to supply recreational marijuana as cannabis becomes legal.

“We’re excited to expand our strategic partnership with Canopy Growth and to begin helping them build the global scale needed to win long-term,” said Rob Sands, CEO of Constellation Brands.

Canopy Growth CEO Bruce Linton was similarly bullish about the tie-up. “This investment was a landmark moment for the entire sector when it was announced. Now that the capital is Canopy’s to deploy, we’re going to quickly get to work increasing our lead by adding strategic assets around the world,” Linton noted in a statement.

As part of the new partnership, Canopy Growth’s board will be redrafted. Taking seats on the board will be Constellation's chief operating officer Bill Newlands and its chief financial officer David Klein, as well as current Constellation board members Judy Schmeling and Robert Hanson.

Based in Smiths Falls, Ontario, Canopy Growth is a diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms.

Canopy Growth shares held steady at $37.10 in Friday’s morning trade session and shares of Constellation Brands were also flat at $201.78.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Fri, 02 Nov 2018 09:34:00 -0400 https://www.proactiveinvestors.com/companies/news/208432/constellation-brands-closes-4b-investment-in-canopy-growth-208432.html
<![CDATA[News - Cannabis short-sellers picked up more than $450M in gains on two-day price weakness, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/207774/cannabis-short-sellers-picked-up-more-than-450m-in-gains-on-two-day-price-weakness-says-s3-partners-207774.html Short-sellers in cannabis stocks, which had been on an extended rally ahead of the legalization of marijuana in Canada last week, are up more than $450 million on recent price weakness in the sector, according to analytics company and short specialist S3 Partners.

A report by Ihor Dusaniwsky said the ETFMG Alternative Harvest ETF (NYSEArca:MJ), Horizons Marijuana Life Sciences ETF (HMMJ.TO) and Evolve Marijuana ETF (SEED.TO) were up over 30% by October 15th and are now down more than 20% since then, including an 8%-plus drop on Tuesday.

Cannabis stock short sellers up $450 million in mark-to-market profits over the last two days of price weakness. $CGC $ACB $TLRY $GWPH $CRON See our research note on https://t.co/TdesABFLln https://t.co/b4eg8JcIDN pic.twitter.com/CNOmJSRvLi

— Ihor Dusaniwsky (@ihors3) October 24, 2018

"At the moment, there is a large concentration of short selling in the sector, with only seven stocks having over $100 million in short interest and the top twenty shorts in the Cannabis sector making up over 98% of the total short interest in the sector," Dusaniwsky said.

Shorting the cannabis sector is not cheap, he added, with the average fee on outstanding shorts running between 15% and 43%, with the fee for Tilray Inc (NASDAQ:TLRY) alone costing up to 72% to borrow.

READ: Waiting to inhale? Cannabis stocks like Tilray are only going to go higher

"One of the reasons for the high cost is the relative lack of institutional holders in these securities due to the fact that many of these securities trade in Canada or the OTC market in the US. which precludes some long only funds from holding them in their portfolios," the S3 analyst said.

Another reason for institutional investors shying away from cannabis is the sector's characterization as a "sin" stock along with tobacco, liquor, gambling and gun stocks. This precludes some long-only funds from participating. "Once institutional ownership increases in the sector we can expect stock borrow costs to decline significantly," he said.

For now, the short interest in the sector is growing slowly with some demand seen in Canopy Growth Corp (NYSE:CGC), Aphria Inc (OTC:APHQF) and Tilray among others.

READ: Recent cannabis stock volatility not dampening industry prospects

"If the cost to borrow cannabis stocks begins to cheapen in the larger cap names, we may see more short sellers enter this over-heated sector looking for stock prices to ease back down to more reasonable value based multiples," Dusaniwsky said.

"In the meantime, large institutional short sellers will be standing on the sidelines until the smoke clears and further large price drops will be due to longs shareholders selling stock to realize some of their profits," he concluded.

Canada legalized cannabis on October 17. The sector has swung wildly in volatile trade and become a battleground between bulls and shortsellers in the market. 

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com  

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Wed, 24 Oct 2018 10:56:00 -0400 https://www.proactiveinvestors.com/companies/news/207774/cannabis-short-sellers-picked-up-more-than-450m-in-gains-on-two-day-price-weakness-says-s3-partners-207774.html
<![CDATA[Media files - CryptoCann™ Report: Barclays reportedly puts crypto plans on the back burner; Uber and Lyft offer discounts to discourage driving while high ]]> https://www.proactiveinvestors.com/companies/stocktube/10856/cryptocann-report-barclays-reportedly-puts-crypto-plans-on-the-back-burner-uber-and-lyft-offer-discounts-to-discourage-driving-while-high-10856.html Mon, 15 Oct 2018 13:44:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10856/cryptocann-report-barclays-reportedly-puts-crypto-plans-on-the-back-burner-uber-and-lyft-offer-discounts-to-discourage-driving-while-high-10856.html <![CDATA[News - Canopy Growth acquires assets of Colorado-based Ebbu to speed up cannabis research programs ]]> https://www.proactiveinvestors.com/companies/news/207116/canopy-growth-acquires-assets-of-colorado-based-ebbu-to-speed-up-cannabis-research-programs-207116.html Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) announced on Monday it has agreed to acquire the assets of Ebbu Inc, a Colorado-based hemp researcher which will complement and accelerate several initiatives under its group of companies.

Intellectual property and R&D advancements achieved by Ebbu's team will flow directly to Canopy Growth's hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities, the company said in a statement.

In addition, Ebbu's IP portfolio will contribute to the clinical formulations program being executed by Canopy Health Innovations, a wholly owned subsidiary of the company. Canopy Growth operates a field-scale hemp operation based in Saskatchewan. By applying Ebbu's IP, that will have the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces.

"Beyond the technological edge this transaction provides, we are pursuing this acquisition because Canopy shares Ebbu's core ethos of building consumer trust," said Mark Zekulin, the Co-CEO and president of Canopy Growth. 

READ: Canopy Growth cements strategic tie-up with Centric Health to supply medical cannabis

Canopy Growth, through a newly formed subsidiary, will employ Ebbu's assets and personnel to conduct R&D. There will be no production or sale of products resulting from such R&D in the United States unless and until it would be federally legal to do so.

At closing, Canopy Growth will pay C$25 million in cash and issue 6,221,210 of the company's common shares to ebbu in exchange for the assets being acquired. A further C$100 million in purchase price shall be payable if certain scientific related milestones are achieved within two years following the closing.

Canopy Growth will have the option of satisfying such milestone payments in cash, shares or a combination of cash and shares. If such payments are satisfied in shares, the number of shares shall be calculated based on the volume weighted average price of the shares on the TSX for the 20 trading days immediately prior to the date of achievement of the applicable milestone.

Shares of Canopy Growth in Canada were up 9.78% to C$71.25. The shares in New York gained 10.09% to US$54.82.

The transaction requires regulatory approval by the Toronto Stock Exchange and New York Stock Exchange. The acquisition is expected to close in November 2018.

Canopy Growth is a diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms.

Canopy Growth is based in Smiths Falls, Ontario.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Mon, 15 Oct 2018 13:38:00 -0400 https://www.proactiveinvestors.com/companies/news/207116/canopy-growth-acquires-assets-of-colorado-based-ebbu-to-speed-up-cannabis-research-programs-207116.html
<![CDATA[News - Veritas kicks off coverage of Canada's cannabis industry with Sell ratings Canopy Growth, Aphria, Aurora Cannabis and Cronos ]]> https://www.proactiveinvestors.com/companies/news/207016/veritas-kicks-off-coverage-of-canada-s-cannabis-industry-with-sell-ratings-canopy-growth-aphria-aurora-cannabis-and-cronos-207016.html A pessimistic stock analyst from Veritas Investment Research is initiating his coverage of Canada’s cannabis stocks with four Sell ratings on Canopy Growth (NYSE:CGC), Aphria (OTCMKTS:APHQF),  Aurora Cannabis (OTCMKTS:ACBFF) and Cronos Group (NASDAQ:CRON).

In a note dubbed “End of the Rainbow”, Veritas’s Stuart Rolfe write that he believes Canada’s cannabis industry “looks wildly overvalued” even if 60% of the country’s black market converts to legal sales following the country’s legalization of recreational marijuana next week.

Rolfe makes the point that eager investors have already driven stock valuations for the eight-largest publicly-traded Canadian cannabis producers to a combined market cap of $55 billion on trailing twelve months sales of $250 million at a time when “oversupply risks are rampant”.

READ: Canadian regulators release pivotal review showing cannabis companies not providing enough disclosure

“Our analysis suggests that the market still lacks perspective when it comes to the size, shape and sustainability of Canada’s proverbial pot of gold,” argues Rolfe.

Uncertain pricing, the presence of a hyper-competitive black market and inordinately high expectations for profits are just three of the factors leading Rolfe to conclude that Canadian cannabis valuations are “at risk of falling precipitously.”

Canopy Growth has much to lose if markets disappoint

Drilling down to the details, Rolfe views the medical marijuana company Canopy Growth as having an intrinsic value of C$30, per a report in the business news site TheFly. He thinks the Ontario-based company seems to have “the most to lose if market conditions disappoint” as it “bet heavily on brand power and novel formulations”. While Canopy is “well-positioned” for scale and should get its product to customers, Rolfe argues that its branding efforts might draw negative attention from regulators. Canopy’s cost disclosures are also among the “least compelling and perhaps least consistent,” according to Rolfe.

Move onto Aphria and Rolfe takes a more sympathetic view, calling the company a “star unicorn” and praising its useful disclosure on strategies and operations. Rolphe says Aphria’s focus on cost management, cash-flow generation and accounting bodes well for its performance. He also thinks Aphria is “best positioned” to become a takeout candidate if industry consolidation gathers pace. Rolfe sets its price target at C$19.

Aurora suffers from being a 'touch unfocused'

The analyst’s take on Aurora, meanwhile, remains mixed, according to TheFly. Via acquisitions, Aurora has morphed into one of the largest scale bets on cannabis capacity available to investors, but its approach seems to be “a touch unfocused”, according to Rolfe. The company’s loss of momentum has corrected its valuation. But the capacity Aurora has built through a string of acquisitions is “remarkable” and could pose a threat to competitors. Rolfe sets the target at C$13 for Aurora shares.

Lastly, Rolfe adopts a harsher view of Cronos Group, calling it “an undifferentiated grower” with a few “solid” cannabis-related investments. Rolfe stresses that some of Cronos’s investments may be plateauing and not adding growth. Without an “ahead-of-the-game” strategy for its capital deployment, he sees few upside catalysts for the Toronto-based company. While its current capabilities are “overvalued”, Cronos might be able to benefit, however, by pushing further internationally and into the market for medical cannabis. Rolfe sets a price target of $4.50 for Cronos shares.

Cronos shares traded nearly 7% higher at $9.66 in Friday’s afternoon trade while Aphria shares fell 2.5% to $14.72. Aurora Cannabis shares picked up 5.25% to hit $10.22 and Canopy Growth added 4.2% to reach $49.15.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Fri, 12 Oct 2018 13:56:00 -0400 https://www.proactiveinvestors.com/companies/news/207016/veritas-kicks-off-coverage-of-canada-s-cannabis-industry-with-sell-ratings-canopy-growth-aphria-aurora-cannabis-and-cronos-207016.html
<![CDATA[News - Canopy Growth shares rise as it completes legal medical cannabis export to US from Canada ]]> https://www.proactiveinvestors.com/companies/news/206686/canopy-growth-shares-rise-as-it-completes-legal-medical-cannabis-export-to-us-from-canada-206686.html Shares of Canopy Growth Corporation (TSE:WEED, NYSE:CGC) firmed up Tuesday in premarket trade after the Canadian cannabis grower said it had completed a legal transfer of cannabis products to a research partner in the US.

Just last month, shares in Tilray Inc (NASDAQ:TLRY) had shot up after it announced that the US Drug Enforcement Administration (DEA) had approved the import of a Canadian cannabinoid study drug made by the company for a clinical trial at the University of California, San Diego. 

Both Canopy Growth and Tilray’s shipments were for the sole purpose of supporting medical research and development, with permits from the DEA.

"The United States presents a unique market opportunity and as the most established cannabis business in the world we, in turn, offer a unique ability to advance standardization, IP development, and clinical research that can improve the understanding and legal application of cannabis and cannabinoids," Mark Zekulin, Co-CEO of Canopy Growth said in a statement.

READ: Tilray receives approval from US to import a medical cannabis study drug, shares soar almost 30%

"By engaging in the market through federally legal means and with the right partners, we can create a US-based centre of expertise while also supporting our rapidly expanding global business," added Zekulin.

Shares of the Canadian cannabis company climbed 1.5% to $51.19 before the opening bell.

Canopy has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.

Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, has an Outperform rating on the stock and expects the $4 billion cash infusion from Constellation Brands, the maker of Corona beer, to give Canopy Growth a head start in international markets.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 09 Oct 2018 08:37:00 -0400 https://www.proactiveinvestors.com/companies/news/206686/canopy-growth-shares-rise-as-it-completes-legal-medical-cannabis-export-to-us-from-canada-206686.html
<![CDATA[News - Canadian cannabis stocks have more than doubled since Constellation deal with Canopy Growth, says Stifel ]]> https://www.proactiveinvestors.com/companies/news/205352/canadian-cannabis-stocks-have-more-than-doubled-since-constellation-deal-with-canopy-growth-says-stifel-205352.html Tilray Inc (NASDAQ:TLRY) was the talk of the town Wednesday as it took shareholders on a wild ride with trading halted twice. Its shares nearly doubled from its previous close, dipped into negative territory and then soared again just before the closing bell to end the day on a high note.

The cannabis company’s performance pushed the total market capitalization for Canadian Licensed Producers above $C80bn at its peak, closing at around C$73bn, as per a Stifel note shared by TheFly.com.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

Tilray’s performance was impressive, but Canadian cannabis stocks have been on the rise since Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, invested an additional US$4bn in Canopy Growth Corp (NYSE:CGC, TSX:WEED).

Since then, Canadian cannabis stocks have soared 127%, according to Stifel analyst Christopher Growe.

The analyst estimates the Canadian market to be worth around C$10bn, so more global opportunities will need to present themselves for the valuations to be realized.

Canada is set to legalize cannabis this fall, but no other countries have announced similar plans just yet.

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Thu, 20 Sep 2018 09:54:00 -0400 https://www.proactiveinvestors.com/companies/news/205352/canadian-cannabis-stocks-have-more-than-doubled-since-constellation-deal-with-canopy-growth-says-stifel-205352.html
<![CDATA[News - Why Canopy Growth’s deal with Constellation was the best - and worst - thing for the shares ]]> https://www.proactiveinvestors.com/companies/news/205260/why-canopy-growths-deal-with-constellation-was-the-best-and-worst-thing-for-the-shares-205260.html For Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED), an additional US$4bn investment from beer producer Constellation Brands Inc (NYSE:STZ) may have felt like a godsend, boosting its shares double digits after less-than-impressive quarterly results.

However, trader and market commentator Tim Collins said the deal may be the worst thing to ever happen to Canopy in the short-term, shaping the company’s narrative in a way that makes unattached Tilray Inc (NASDAQ:TLRY) the more appealing cannabis stock.

$CGC getting money from $STZ may have been the worst thing that could happen to it (short-term) from a stock performance standpoint when you compare it to $TLRY

However, unless TLRY gets a cap raise done soon, CGC made the better long-term move

— Tim Collins (@RetroWallSt) September 18, 2018

“Everyone loves a mystery; the excitement of the unknown, the potential of what may come,” Collins told Proactive Investors in an email. “Without a deal, bulls can dream about whatever potential fits their narrative.”

The deal gave Constellation a 38% stake with the option to scoop up even more shares, bringing its ownership stake to 50%.

READ: Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners

Constellation can buy another 88.5 million shares for just over US$40 per share and then an additional 51.3 million shares at the volume weight average price at the time of exercise.

“The potential for a ‘dream’ deal is gone. Pushing shares speculatively higher loses appeal when Constellation can buy them ‘below’ market. Would they quickly sell? Probably not, but you can never say never,” said Collins.

Canopy secured long-term stability via its deal, but lightning almost never strikes the same place twice.

It’s unlikely another deal like this will come its way, shifting investor attention to the potential of other cannabis stocks, like Tilray.

“Anticipation flew past unabated excitement straight into delirium and short-squeezes,” said Collins, who is well-known for his options trading strategies.

However, don’t expect Canopy Growth to go up in smoke anytime soon.

READ: StoneCastle Cannabis Growth Fund gives investors exposure to high-flying cannabis stocks

When comparing the two cannabis companies, Collins notes that at the end of the day, Canopy has the money in the bank.

Tilray has the higher market cap but Canopy has US$4bn in cash while Tilray’s balance sheet is less impressive.

The company raised around US$150mln in its initial public offering in July, but Collins forecasts a secondary offering on the horizon if Tilray doesn’t land a multi-billion dollar deal of its own.

“It's going to need a doozy of a deal to keep the price elevated. It's simply hard to imagine any big name will pay significantly more in terms of valuation than what Constellation paid for CGC,” said Collins.

For those debating between Canopy Growth and Tilray, Collins said that he would bet on the company with money in the bank rather than money on paper.

--At the time of publication, Collins had a position in Tilray put butterfly options

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Wed, 19 Sep 2018 14:42:00 -0400 https://www.proactiveinvestors.com/companies/news/205260/why-canopy-growths-deal-with-constellation-was-the-best-and-worst-thing-for-the-shares-205260.html
<![CDATA[News - StoneCastle Cannabis Growth Fund gives investors exposure to high-flying cannabis stocks ]]> https://www.proactiveinvestors.com/companies/news/204956/stonecastle-cannabis-growth-fund-gives-investors-exposure-to-high-flying-cannabis-stocks-204956.html Relax and inhale. The marijuana rally still isn’t over, says Bruce Campbell, founder of StoneCastle Investment Management Inc, who is launching Canada’s first large cannabis mutual fund Friday.

The StoneCastle Cannabis Growth Fund comes into play a month before recreational cannabis is set to become legal in Canada on October 17.

“I wouldn’t be surprised if we saw a steep, sharp pullback, which will scare all the people that got in late, have a little bit of consolidation, and then we start the next phase up,” Bruce Campbell, founder of StoneCastle Investment Management Inc., which has about C$150mln (US$115mln) in assets, told Bloomberg.

Campbell advised investors to get ready for some more “scary down days” just as cannabis-related stocks tumbled Thursday following a report that the US may bar Canadians who invest in the companies from entering the country.

A Politico headline shrilled that “Canadian marijuana users, workers and investors risk lifetime border ban.”

“The move has potential to disrupt border crossings between the US and Canada for travelers who run afoul of American drug laws, even if their activities are legal in Canada,” reported Politico, quoting Todd Owen, executive assistant commissioner for the Office of Field Operations.

Owen gave Politico a detailed preview of how the US Customs and Border Protection agency will continue to apply long-standing US federal laws that treat marijuana as a banned substance and participants in the cannabis industry as drug traffickers.

The cannabis market may still have upside after a period of consolidation as the hype surrounding Big Alcohol/Big Tobacco partnerships continue to generate headlines. Cannabis stocks which retreated over the last few trading days found their mojo Friday with Canopy Growth Corp (NYSE:CGC) up 6.2% to US$46.84 and Cronos Group Inc (NASDAQ:CRON) up a similar 6.7% to US$10.79.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Fri, 14 Sep 2018 10:43:00 -0400 https://www.proactiveinvestors.com/companies/news/204956/stonecastle-cannabis-growth-fund-gives-investors-exposure-to-high-flying-cannabis-stocks-204956.html
<![CDATA[News - Canopy Growth cements strategic tie-up with Centric Health to supply medical cannabis ]]> https://www.proactiveinvestors.com/companies/news/204252/canopy-growth-cements-strategic-tie-up-with-centric-health-to-supply-medical-cannabis-204252.html Centric Health Corporation (TSX:CHH) announced Wednesday that it has entered into multi-year supply and service agreements with Canopy Growth Corporation (TSX:WEED, NYSE:CGC) for the provision of medical cannabis.

Canopy Growth will be the preferred education partner and supplier of choice of medical cannabis primarily through its Spectrum Cannabis brand to Centric Health and the seniors that it serves both in long-term care and retirement residences, as well as seniors living in the community.

"We believe that our partnership with Centric Health will help reduce many of the existing gaps in the continuing care space by having a trusted partner at our side who can provide education, assist in policy development and, most importantly, provide clinical pharmacist oversight of medical cannabis through medication management," said Mark Zekulin, president and co-CEO of Canopy Growth. "The continuing care space is comprised of a patient population that can greatly benefit from the therapeutic effects of medical cannabis."

READ: Canopy Growth shares jump after Cowen analyst raises price target

As part of a separate business development agreement, Canopy Growth will advance funds to Centric Health to educate clinical pharmacists, as well as other healthcare partners, residents and seniors and their families, on the benefits and potential applications of medical cannabis.

In exchange, Centric Health issued 850,000 warrants to Canopy Growth at an exercise price of C$0.25 per common share for a life of 48 months with the vesting date set at September 4, 2020.

"Our strategic relationship with Canopy Growth leverages Centric's national specialty pharmacy footprint and respected clinical pharmacists with their sophisticated educational platform and range of medical cannabis products, including the Spectrum Cannabis line that makes it easy for seniors to understand the strength and dosage of the medical cannabis they are using as part of their treatment program," said Centric Health CEO David Murphy.

Murphy said the partnership would ensure seniors and home operators would have the “best possible support” and oversight for medical cannabis treatments.

READ: Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada

Canopy has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.

Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, reiterated an Outperform rating and raised the company’s price target to C$74 from C$56 on Tuesday.

Azer expects the US$4bn cash infusion from Constellation Brands, the maker of Corona beer, to give Canopy Growth a head start in international markets.

Shares of Canopy Growth were down 2.2% to US$51.34 in the New York stock Exchange and 2.4% to C$67.15 in the Canadian stock exchange.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

(Updates with additional quotes from company officials, business development pact) 

 

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Wed, 05 Sep 2018 10:40:00 -0400 https://www.proactiveinvestors.com/companies/news/204252/canopy-growth-cements-strategic-tie-up-with-centric-health-to-supply-medical-cannabis-204252.html
<![CDATA[News - Canopy Growth shares jump after Cowen analyst raises price target ]]> https://www.proactiveinvestors.com/companies/news/204157/canopy-growth-shares-jump-after-cowen-analyst-raises-price-target-204157.html Cannabis company Canopy Growth Corporation (TSX:WEED, NYSE:CGC) has been riding high this summer, securing a multi-billion investment from beer giant Constellation Brands Inc (NYSE:STZ) and inking deals with Health Canada to increase its growing capacity.

Cowen analyst Vivien Azer, a senior research analyst in the beverage, tobacco and cannabis sectors, reiterated an Outperform rating and raised the company’s price target to C$74 from C$56.

READ: Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada

Azer met with Canopy Growth’s management and said she was confident in the company’s “ability to establish an early lead in the adult use cannabis market, as well as domestic and international medical cannabis markets,” as per a note shared by TheFly.com.

Its US$4bn cash infusion from Constellation Brands, the maker of Corona beer, is expected to give the company a head start in international markets, according to the analyst.

The company operates 10 licensed cannabis production sites with over 2.7 million square feet of fully-licensed production capacity.

Shares of the Ontario-based company were up more than 4% to US$47.63 in Tuesday Morning trading.

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Tue, 04 Sep 2018 10:02:00 -0400 https://www.proactiveinvestors.com/companies/news/204157/canopy-growth-shares-jump-after-cowen-analyst-raises-price-target-204157.html
<![CDATA[Media files - CryptoCann™ Report: Teen hacker allegedly steals US$1mln in crypto via SIM card scheme; Cannabis lighting company Solis Tek adds Peter Najarian to board ]]> https://www.proactiveinvestors.com/companies/stocktube/10229/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-10229.html Thu, 23 Aug 2018 15:36:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10229/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-10229.html <![CDATA[News - CryptoCann™ Report: Teen hacker allegedly steals US$1mln in crypto via SIM card scheme; Cannabis lighting company Solis Tek adds Peter Najarian to board ]]> https://www.proactiveinvestors.com/companies/news/203508/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-203508.html Cryptocurrency thefts are on the rise this year with exchanges like Bithumb and Coinrail losing millions at the hands of hackers.

A California teen was arrested for allegedly stealing more than US$1mln in Bitcoin via a cellphone hijacking scheme, as per a CoinTelegraph report.

The teen reportedly used a “SIM swapping” technique, a process in which hackers have telecom providers transfer a person’s phone number to a SIM card and then use the phone number to reset passwords on cryptocurrency exchange accounts.

Photos of the hacker’s spoils, including a 2018 McLaren luxury sportscar, were reportedly posted to Instagram.

A US investor and co-founder of an angel group for Bitcoin investors sued AT&T for US$224mln earlier this month when his cryptocurrency was stolen via a similar scheme. He argued that the wireless carrier was complicit in the theft by not following the proper safety measures to transfer his information.

The Cann' Report

Solis Tek Inc (OTCQB:SLTK), a horticulture lighting specialist, welcomed a famous face to its board of directors.

Peter Najarian, a contributor to CNBC’s “Halftime Report” and “Fast Money”, will join the board of the cannabis tech company.

“With my experience in capital markets, I am positioned to provide knowledge that will help Solis Tek achieve its mission to bring safe, consistent and quality products to patients and legal consumers,” said Najarian in a press release.

Tiffany Davis, Solis Tek’s chief operating officer, will also a new addition to the board.

An RBC Capital Markets analyst estimated that the legal cannabis market in the US could be worth US$47bn within a decade, as per a Business Insider report.

Analyst Nik Modi said recreational use, particularly concentrates and edibles, is driving the market’s growth.

"Estimates already suggest that the US category alone is $50 billion, which compares to spirits $58 billion, wine $65 billion, and beer $117 billion," wrote Modi. The US$50bn estimate includes illegal sales as well.

The analyst praised Constellation Brands Inc’s (NYSE:STZ) recent US$4bn investment in Canadian cannabis company Canopy Growth Corp (NYSE:CGC), saying that more companies should have “the foresight to invest in future revenue streams.”

Cannabis-focused private equity firm CannaRoyalty Corp (CNSX:CRZ) reported its second-quarter results.

The Ontario-based company reported earnings of C$0.18 per share on revenue of C$3.5mln

Back in the US, MedMen Enterprises Inc (OTC:MMNFF) signed a deal granting the cannabis company the use of the Woodstock name.

The company has the right to manufacture and distribute Woodstock branded cannabis products in six states, including California and Nevada.

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Thu, 23 Aug 2018 12:04:00 -0400 https://www.proactiveinvestors.com/companies/news/203508/cryptocann-report-teen-hacker-allegedly-steals-us1mln-in-crypto-via-sim-card-scheme-cannabis-lighting-company-solis-tek-adds-peter-najarian-to-board-203508.html
<![CDATA[News - Canopy Growth to increase growing capacity after receiving amended licenses from Health Canada ]]> https://www.proactiveinvestors.com/companies/news/203401/canopy-growth-to-increase-growing-capacity-after-receiving-amended-licenses-from-health-canada-203401.html Canopy Growth Corp (CSE:WEED, NYSE:CGC) will be able to increase its growing capacity after receiving amended licenses from Health Canada.

The Canadian cannabis company will nearly double its growing capacity at its Smith Falls Campus in Ontario, the former site of a Hershey’s chocolate factory.

READ: Cronos shares jump after reaching supply deals in Canada

The Ontario campus has also received a license for an automated distribution center.

“The new highly automated Distribution Centre is critical to operating in an efficient and cost-effective manner, while meeting the needs of our provincial partners" said CEO Mark Zekulin in the company’s press release.

In Quebec, the company will add 223,200 square feet of cultivation space at its majority-owned Les Serres Vert Cannabis Inc greenhouse.

The company now has more than 2.7 million square feet of fully-licensed capacity.

Canopy Growth will welcome visitors into the Tweed Visitor Centre at its Smith Falls Campus starting Saturday, allowing guests over the age of 19 to walk along the catwalk left by Hershey’s factory and peek in at specific licensed rooms.

Shares of the Ontario-based company were down lightly to US$38.11 in Wednesday pre-market trading.

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Wed, 22 Aug 2018 08:27:00 -0400 https://www.proactiveinvestors.com/companies/news/203401/canopy-growth-to-increase-growing-capacity-after-receiving-amended-licenses-from-health-canada-203401.html
<![CDATA[News - Cannabis stocks in Canada recover after a whirlwind week; Canopy Growth up 8.6% on Friday ]]> https://www.proactiveinvestors.com/companies/news/203172/cannabis-stocks-in-canada-recover-after-a-whirlwind-week-canopy-growth-up-86-on-friday-203172.html Canadian cannabis stocks had a roller-coaster week, this week with extreme highs and lows but ended generally on a positive note. 

The biggest news this week was the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp (CSE:WEED), sending shares up 8.6% at C$44.18 on Friday. The company reported a quarterly C$90mln net loss on Tuesday.

READ: Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln

For Canopy, Constellation Brands, the New York-based beverage company, announced it will spend about C$5bn (US$3.8bn) to boost its stake in Canopy Growth, in a bet that legalization will gain traction around the world. Constellation said that it would buy 104.5 million Canopy shares priced at C$48.60 each.

“This is rocket fuel,” said chief executive officer Bruce Linton, of Canopy in an earnings calls on Wednesday. “We’re going to be way more global.”

READ: Kaneh Bosom Biotechnology: experienced management, access to capital and a clear strategy paves the way for success for the cannabis company

Other significant players in the market, including Aurora Cannabis Inc. (TSE:ACB:CA) was up 4.0%, at C$6.50 on Friday. Aphria Inc. (TSE:APH:CA) was up 1.8%, at C$10.58.

Hiku Brands (CSE:HIKU) soared 9.9% at C$2.00.

The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, rose 2.80%, to C$16.55.

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Fri, 17 Aug 2018 17:34:00 -0400 https://www.proactiveinvestors.com/companies/news/203172/cannabis-stocks-in-canada-recover-after-a-whirlwind-week-canopy-growth-up-86-on-friday-203172.html
<![CDATA[News - Cannabis stocks rocket upwards in Canada on the back of funding and acquisition announcements; Canopy Growth up 31% ]]> https://www.proactiveinvestors.com/companies/news/203004/cannabis-stocks-rocket-upwards-in-canada-on-the-back-of-funding-and-acquisition-announcements-canopy-growth-up-31-203004.html Canadian cannabis stocks rocketed upwards on Wednesday as investors reacted to a host of news, notably the fact that Constellation Brands (NYSE:STZ) will spend C$5bln to boost its stake in Canopy Growth Corp (CSE:WEED), sending shares up 31.3% at C$42.20.

Other significant players in the market, including Aurora Cannabis Inc. (TSE:ACB:CA) were up 19.5%, at C$6.38. Aphria Inc. (TSE:APH:CA) was up 20.5%, at C$10.51. Hiku Brands (CSE:HIKU) was up 30.1% at C$1.90. 

In the case of Canopy Growth, Constellation Brands, the New York-based beverage company, announced it will spend about C$5 billion (US$3.8 billion) to boost its stake in Canopy Growth, in a bet that legalization will gain traction around the world. Constellation said that it would buy 104.5 million Canopy shares priced at C$48.60 each, marking a significant premium over Tuesday’s closing price of C$32.15.

“This is rocket fuel,” said chief executive officer Bruce Linton, of Canopy in an earnings calls on Wednesday. “We’re going to be way more global.”

READ: Cannabis stocks plummet in Canada on the back of Ontario rule changes

In the case of Aphria, Perennial Inc., a subsidiary of Data Communications Management Corp., and Aphria have signed a letter of intent to establish a joint venture to develop new, consumer-centric cannabis products and brands for the Canadian adult-use market.

For Aurora, news that its acquisition of Anandia Laboratories Inc. is now complete helped bolster the stock.

The Horizons Marijuana Life Sciences Exchange Traded Fund, a group of marijuana stocks that trades on the Toronto Stock Exchange, rose 9%, to C$15.90.

The market movements point to an emerging trend in the Canadian cannabis space, where investors appear to have increased confidence in the cannabis sector, despite significant ups and downs in recent months. 

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Wed, 15 Aug 2018 18:48:00 -0400 https://www.proactiveinvestors.com/companies/news/203004/cannabis-stocks-rocket-upwards-in-canada-on-the-back-of-funding-and-acquisition-announcements-canopy-growth-up-31-203004.html
<![CDATA[News - Canopy Growth reports quarterly earnings in-line with analyst expectations; net loss of C$90.9mln ]]> https://www.proactiveinvestors.com/companies/news/202899/canopy-growth-reports-quarterly-earnings-in-line-with-analyst-expectations-net-loss-of-c909mln-202899.html Canopy Growth Corp. (NYSE:CGC, TSE:WEED), the world's largest marijuana company and the first to trade on the New York Stock Exchange, reported its quarterly earnings today, posting a net loss of C$90.9mln and a net loss per share of C$0.40.

The company reported its earnings today ahead of a monumental move for Canada in a few months, which will legalize recreational marijuana.

Canopy Growth reported revenue of C$25.9mln, in line with analyst expectations. 

Analysts expected the company to report C$25.8mln, an increase of 62.76% over the prior year's quarter.

"With our unparalleled success in Canada and Europe, Spectrum Cannabis' expanding global operational footprint now covering 11 countries, our active regulatory and global market development efforts, as well as approvals to proceed with the first of many planned clinical trials of cannabis-based medical therapies for both humans and animals, our leadership position in international medical cannabis markets continues to strengthen," said chairman and co-CEO Bruce Linton in a statement. 

"With an estimated 36% of the total supply committed to date to the provinces and territories, we have secured by far the deepest channel into the Canadian recreational cannabis market. Considering our substantial inventory, large cultivation footprint in production and the millions of additional sq. ft. of greenhouses and our new state-of-the-art distribution centre that are ready and waiting for licenses, we remain very confident in our ability to succeed in capturing significant market share."

Earlier on Tuesday, shares of Canopy Growth dipped after news that the government of Ontario announced it would allow recreational sales in privately-run pot retailers starting by April 1, months later than expected. Customers will be able to buy cannabis online as of Oct. 17, the day recreational sales in Canada are legal. 

READ: Cannabis stocks plummet in Canada on the back of Ontario rule changes

The company announced on Tuesday that it has issued C$2,500,000 in common shares of Canopy Growth in connection with the expansion of an existing commercial arrangement.

Last week, the company received a go-ahead from the Veterinary Drug Directorate of Health Canada to research the effectiveness of cannabidiol (CBD) to treat anxiety in certain animals.

Shares of Canopy Growth closed down 8.2% in Toronto on Tuesday at C$32.15.

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Tue, 14 Aug 2018 16:44:00 -0400 https://www.proactiveinvestors.com/companies/news/202899/canopy-growth-reports-quarterly-earnings-in-line-with-analyst-expectations-net-loss-of-c909mln-202899.html
<![CDATA[News - Cannabis stocks plummet in Canada on the back of Ontario rule changes ]]> https://www.proactiveinvestors.com/companies/news/202891/cannabis-stocks-plummet-in-canada-on-the-back-of-ontario-rule-changes-202891.html Canadian cannabis stocks tumbled on Tuesday as investors reacted to the news that Ontario will limit sales of the drug when it becomes legal on Oct. 17.

Ontario had previously planned to open government-run retail stores this October, however, a shift in provincial government has changed the timeline. The new provincial government in Ontario, under Doug Ford, has decided to allow the private sector to operate stores, but not until April.

The government says it plans to sell cannabis online starting in October.

Markets responded to the news, with stocks like Canopy Growth (TSE:WEED) and Aurora Cannabis Inc. (TSE:ACB:CA) tumbling 7.00% and 8.78%, respectively.

Aphria Inc. (TSE:APH:CA) was down 7.88%.

READ: CROP Infrastructure strikes supply deal for hemp products

The delay in the opening of Canada’s largest market for cannabis is a blow for the industry.

However, some believe the additional time is warranted -- and needed.

On Monday, the government (elected in June) said it will begin to consult with businesses, consumer groups, municipalities, law enforcement and others next week and will examine the retail models planned by Alberta, Saskatchewan and Manitoba. 

Recreational cannabis will be sold online in Ontario when legalized Oct. 17 through a government agency, the Ontario Cannabis Store.

Brick and mortar stores will be in place by April 2019. 

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Tue, 14 Aug 2018 15:17:00 -0400 https://www.proactiveinvestors.com/companies/news/202891/cannabis-stocks-plummet-in-canada-on-the-back-of-ontario-rule-changes-202891.html
<![CDATA[News - Daily CryptoCann™ Report: Litecoin price jumps after acquiring stake in German bank; Canopy Growth to acquire Hiku Brands ]]> https://www.proactiveinvestors.com/companies/news/200618/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-200618.html A new study predicts that blockchain technology is poised to explode in the telecoms sector. Global market research firm Research and Markets expects the industry to jump from US$46.6mln in 2018 to US$993.8mln in 2023.

The report credits increased security concerns as one of the driving factors behind the rise of blockchain. However, the study does point to “uncertain regulatory status and the lack of common standards” as a potential obstacle to growth.

READ: Daily CryptoCann™ Report: Walmart files a patent for blockchain delivery system; Michigan approves new conditions for its medicinal marijuana program

Moving from blockchain to crypto, the price of Litecoin shot up amid acquisition news.

The Litecoin Foundation acquired a nearly 10% stake in Germany-based WEG Bank by means of a partnership with Token Pay, a crypto-to-fiat payments provider, according to a Coin Desk report.

Litecoin founder Charlie Lee described the partnership as a “huge win-win” for all involved.

The price of Litecoin, the world’s sixth-largest cryptocurrency based on market value, was up more than 2.5% to US$77.96.

The Cann Report

Canopy Growth Corp (NYSE:CGC, TSX:WEED) announced that it plans to acquire craft cannabis company Hiku Brands Company Ltd (CSE:HIKU). Hiku was offered C$1.91 per share, adding up to a deal of C$269.2mln, or US$205.3mln.

The company said that it has terminated its deal with WeedMd Inc (CSE:WMD), calling Canopy’s offer a “superior proposal" in a press release.

Shares of Ontario-based Canopy Growth were up more than 2% to US$29.71.

READ: Crop Infrastructure Corp's Italian joint venture partner plants up 25 acres

In other news from the Great White North, Crop Infrastructure Corp (CSE:CROP, OTCMKTS:CRXPF) joint venture partner has begun production in Europe. XHemplar Italia has planted 25 acres of high-cannabidiol Cannabis Light in Italy.

"The company is extremely encouraged by the fast pace with which the team at XHemplar has commenced production in Italy," said Crop Infrastructure CEO Michael Yorke.

Crop intends to use the production to infuse its new therapeutic and cosmetics lines.

Meanwhile, back in the States, Oklahoma’s State Board of Health has banned the sale of smokable medical marijuana, according to a High Times report.

The Bible Belt state legalized medical marijuana at the end of June.

The Oklahoma State Medical Association called for the ban as well as limiting the number of dispensary licenses available and suggested requiring pharmacists to be on staff at dispensaries.

The ban only applies to dispensary sales. Cannabis grown in a patient’s residence can still be smoked.

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Wed, 11 Jul 2018 14:52:00 -0400 https://www.proactiveinvestors.com/companies/news/200618/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-200618.html
<![CDATA[Media files - Daily CryptoCann™ Report: Litecoin price jumps after acquiring stake in German bank; Canopy Growth to acquire Hiku Brands ]]> https://www.proactiveinvestors.com/companies/stocktube/9835/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-9835.html Wed, 11 Jul 2018 09:30:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/9835/daily-cryptocann-report-litecoin-price-jumps-after-acquiring-stake-in-german-bank-canopy-growth-to-acquire-hiku-brands-9835.html <![CDATA[News - Canopy Growth swings to net loss in fiscal quarter as it spends to prepare for Canada's roll-out of legal cannabis ]]> https://www.proactiveinvestors.com/companies/news/199684/canopy-growth-swings-to-net-loss-in-fiscal-quarter-as-it-spends-to-prepare-for-canada-s-roll-out-of-legal-cannabis-199684.html Canopy Growth Corp (TSX:WEED) (NYSE:CGC), swung to a staggering net loss for its fiscal fourth quarter but saw a pickup in revenue helped by its robust business in Canada and Germany.

An increase in spending in the quarter contributed to the net loss as the Canadian medical cannabis company prepares for the roll-out of legalized cannabis across Canada.

“Canopy Growth is uniquely positioned to go beyond our current commitments to provincial agencies and cannabis retailers in order to successfully open the regulated recreational cannabis market in Canada as a producer of choice nationwide,” said Canopy’s chairman and CEO Bruce Linton.

The company’s net loss for its fourth quarter ended March 31 came to C$61.5mln, or C$0.31 per basic and diluted share, which was more than five times its net loss of C$12mln, or C$0.08 per share in the same period a year ago.

READ: Canopy Growth, Canopy Rivers to collaborate with LiveWell Foods on giant cannabis projects

But the company spent more in the quarter ahead of Canada's legalization of cannabis, with its net cash used for investing activities climbing to C$93.2mln in the quarter from C$1.16m in the same period last year.

For the full fiscal year, its net loss swung to C$70.4mln, or C$0.40 per share, up from C$7.5mln, or C$0.06 per share in the previous fiscal year.

Its fiscal fourth-quarter revenue came to C$22.8mln, which was up 55% from the same period a year ago. Revenue for the fiscal year amounted to C$77.9mln, which was up 95% from the previous year’s revenue of C$39.9mln.

Oil sales, including soft gel capsules, comprised 23% of fourth-quarter product revenue. Sales in Canada were strong as the company secured online cannabis retail licenses in Manitoba, Newfoundland and Labrador and Saskatchewan. It also saw booming interest from Germany, which accounted for C$2.3mln in quarterly sales.

“With the recent launch of our Spectrum Softgels, strong sales in Canada and Germany and the expansion of our global footprint into Africa and further into Europe and Australia, we continue to drive our global leadership position in medical cannabis forward,” said Linton.

Canopy’s cash and cash equivalents jumped in the quarter to C$322.6mln, up from C$220.8mln in the year-ago period.

Separately, Canopy announced that its current president Mark Zekulin, has been tapped as its co-chief executive as well, and will report to chairman and CEO Bruce Linton.

In pre-market trade, Canopy Growth shares inched 2.3% lower to US$30.25.

Contact Ellen Kelleher: ellen@proactiveinvestors.com

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Wed, 27 Jun 2018 08:19:00 -0400 https://www.proactiveinvestors.com/companies/news/199684/canopy-growth-swings-to-net-loss-in-fiscal-quarter-as-it-spends-to-prepare-for-canada-s-roll-out-of-legal-cannabis-199684.html
<![CDATA[News - Canopy Growth, Canopy Rivers to collaborate with LiveWell Foods on giant cannabis projects ]]> https://www.proactiveinvestors.com/companies/news/194350/canopy-growth-canopy-rivers-to-collaborate-with-livewell-foods-on-giant-cannabis-projects-194350.html The Canadian weed industry was back in the spotlight Thursday as Canopy Growth Corp (TSX:WEED), Canopy Rivers and LiveWell Foods Canada Inc are to collaborate to commercialise Livewell's two large scale pot projects in Ontario and Quebec.

LiveWell is a vertically integrated cannabis company with a full seed-to-sale solution, including two large greenhouse projects in development totalling over 1.5mln sq ft.

READ: Canopy Growth and Delta 9 given green light to open cannabis retail stores in Manitoba

The private firm has established partnerships with leading names in the sector and also distributes retail and bulk hemp products under the O-Hemp brand and plans to distribute cannabis edibles and infused products.

Canopy's team will provide LiveWell with high-quality genetics for initial cultivation, access to trained personnel for guidance/support, and other strategic and financial support .

"This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector," said Bruce Linton, Canopy Growth chief executive and chairman.

"Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise."

LiveWell has received an initial purchase agreement from Canopy, for cannabis production at the Ottawa project.

LiveWell also has the option to draw on up to $20,000,000 of debt financing from Canopy Rivers (subject to certain milestones) to support the firm's continued growth.

Canopy Growth shares added 0.22% Thursday to stand at C$27.70.

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Thu, 05 Apr 2018 09:26:00 -0400 https://www.proactiveinvestors.com/companies/news/194350/canopy-growth-canopy-rivers-to-collaborate-with-livewell-foods-on-giant-cannabis-projects-194350.html
<![CDATA[News - Canopy Growth and Delta 9 given green light to open cannabis retail stores in Manitoba ]]> https://www.proactiveinvestors.com/companies/news/191793/canopy-growth-and-delta-9-given-green-light-to-open-cannabis-retail-stores-in-manitoba-191793.html Delta 9 and Canopy Growth Corporation (TSX:CGC) have been selected by the government of Manitoba to build and operate recreational cannabis retail stores in the province.

The two partners were one of only four successful candidates chosen to operate a number of stores in the region.

Delta 9 boss John Arbuthnot said: “It is hard to overstate how important this award is for our company, our shareholders, and for the future of the legal cannabis industry in Manitoba.”

At the moment, the licence is only conditional, but the formal agreement, which includes meeting a series of conditions, is expected to be a formality.

Once official, this will mark Canopy Growth’s second provincial retail agreement after the world’s largest cannabis company previously announcing plans to apply to operate four retail stores in Newfoundland & Labrador.

“We look forward to establishing friendly and modern retail spaces that prioritise consumer education and superior customer service, resulting in a safe and positive experience for adult consumers,” added Canopy’s President Mark Zekulin.

The first of Delta and Canopy’s stores has already been constructed in Winnipeg and has been operating for several months as a resource centre. That will be the first of many stores, the two parties said.

Delta 9 has estimated that the provincial cannabis market is worth up to US$500mln annually.

On a side note, Delta said its products will be distributed through Canopy Growth’s outlets in other provinces.

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Fri, 16 Feb 2018 13:25:00 -0500 https://www.proactiveinvestors.com/companies/news/191793/canopy-growth-and-delta-9-given-green-light-to-open-cannabis-retail-stores-in-manitoba-191793.html
<![CDATA[News - Pot stocks take a hit as Trump gets tough on legal cannabis industry ]]> https://www.proactiveinvestors.com/companies/news/189595/pot-stocks-take-a-hit-as-trump-gets-tough-on-legal-cannabis-industry-189595.html Cannabis stocks have seen share prices hit as President Trump's Republican government got tough on the North American pot industry.

Yesterday, it emerged that US Attorney General Jeff Sessions had said he was rescinding policy brought in by former President Obama, which offered protection to states that have legalized marijuana as long as they follow guidelines.

Put simply, it allows US prosecutors to target legal marijuana operations

READ - High times for cannabis stocks as California becomes sixth state to sell drug for recreational use

It came just days after Californians were celebrating the introduction of the sale of recreational pot, which was made legal in the most populous state in the USA. It became the sixth US state to do so.

Experts reckon it is now the largest market for the herbal drug in the world.

"There should be no doubt that President Trump has officially declared war on California," quoted UK newspaper The Guardian on Thursday, quoting the state's senate leader Kevin de León.

New research out this week suggests the legal cannabis industry in the USA is expected to generate nearly US$40bn in economic impact by 2021.

That would be around a 150% increase in economic output from the US$16bn of cannabis generated in 2017.

But the latest Trump move could put those sort of numbers in doubt, and was felt strongly among cannabis-focused companies.

California-based Terra Tech Corp (OTCQ:TRTC), the largest US pot company with a US$407mln market cap, was down over 31% to US$0.28 on Thursday.

Denver-based GrowGeneration Corp (OTC:GRWG) shed over 21% to US$3.35 and fell 0.60% after hours.

Canada set to fully legalise marijuana 

Cannabis Sativa Inc (OTC:CBDS), based in Nevada, where recreational cannabis got the go-ahead last July, shed around 24% to US$7.40.

Meanwhile, many of the listed cannabis companies in North America are based in Canada, which is gearing up to fully legalize marijuana later this year.

Supreme Cannabis Company Inc (CVE:FIRE), shed 7.46% to C$3.04, while Ontario-based rival Canopy Growth Corp (TSE:WEED) shed almost 10% to C$32.32.

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Fri, 05 Jan 2018 08:26:00 -0500 https://www.proactiveinvestors.com/companies/news/189595/pot-stocks-take-a-hit-as-trump-gets-tough-on-legal-cannabis-industry-189595.html
<![CDATA[News - Canopy Health teams up with Quebec consultancy firm ]]> https://www.proactiveinvestors.com/companies/news/173000/canopy-health-teams-up-with-quebec-consultancy-firm-173000.html Canopy Health Innovations, partly-owned by Canopy Growth Corporation (TSE:WEED), has brought on board a consultancy firm to help it develop and commercialise cannabis-based medicines as quickly as possible.

CHI and Quebec-based EPIC Consulting Inc. have agreed a three-year partnership during which they will work together to develop drug formulations and delivery systems targeting unmet medical needs.

EPIC is also the firm of Dr Mark Ware who has been conducting medical cannabis research for the best part of two decades and is well-respected in the field.

“We have a unique opportunity here in Canada to study cannabis and develop products that will change the world,” said Canopy Health President Marc Wayne.

“Bringing Dr Ware in at this exciting moment to consult on our clinical research strategy is an important step towards our vision of bringing validated cannabis medicines to market as quickly as possible.”

Canopy Growth Corp has first refusal to commercialise any resulting intellectual property developed by CHI.

Shares in Canopy Growth were up 1%, or C$0.10, to C$12.16.

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Fri, 10 Feb 2017 10:11:00 -0500 https://www.proactiveinvestors.com/companies/news/173000/canopy-health-teams-up-with-quebec-consultancy-firm-173000.html
<![CDATA[News - Canopy launches Brazil joint venture ]]> https://www.proactiveinvestors.com/companies/news/127602/canopy-launches-brazil-joint-venture-127602.html Cannabis firm Canopy Growth Corporation (CVE:CGC) has agreed a deal with São Paulo-based Entourage Phytolab to develop medicinal products in Brazil.

The deal will see the two firms work together to develop innovative cannabis-based medical products for the Brazilian and international markets.

“Brazil represents a large emerging market, and has a favourable regulatory framework for medical cannabis products as well as competitive clinical trial and production costs,” said Canopy chairman and chief executive Bruce Linton.

Entourage already has permission from ANVISA – the Brazlian health surveillance agency – for the research and development of cannabis-based therapeutics.

The JV will take on the name Bedrocan Brazil as Canopy already has a North American subsidiary called Bedrocan Canada.

The agreement will allow the JV to hold the exclusive local rights to use the “world-leading” Bedrocan brand.

Canopy says that Bedrocan Brazil will import cannabis products from Canada or the Netherlands initially, with a view to establishing domestic cultivation facilities in Brazil in the future.

Shares in Canopy were unchanged at C$2.67.

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Tue, 28 Jun 2016 08:42:00 -0400 https://www.proactiveinvestors.com/companies/news/127602/canopy-launches-brazil-joint-venture-127602.html
<![CDATA[News - Canopy Growth Corporation gets green light for Ontario grow operation ]]> https://www.proactiveinvestors.com/companies/news/124277/canopy-growth-corporation-gets-green-light-for-ontario-grow-operation-124277.html Canopy Growth Corporation (CVE:CGC) told investors that is wholly owned subsidiary Tweed Farms Inc has been given a seal of approval from Health Canada for its marijuana at its facilities in Niagara-on-the-Lake, Ontario.

The new Health Canada licence allows Tweed Farms to produce 1,200 kilograms of dried marijuana.

The licence marks the completion of a major infrastructure expansion which, according to Tweed Farms, has seen it develop a vertically integrated cannabis campus.

At a 375,000 square feet facility it is now capable of growing, trimming, curing and storing Tweed Farm’s product. Canopy Growth said Tweed Farms would now seek a final sales licence, as soon as the first cannabis crop has been harvested and tested for sale.

Bruce Linton, chief executive of Canopy Growth, said: "This infrastructure completion and Health Canada approval milestone is a testament to the team at Tweed Farms who continue to execute our capacity-building as planned."

He added: “We acquired the greenhouse twenty two months ago to position ourselves as a large scale, low-cost producer capable of supplying a sizeable percentage of the market.

"We now have three distinct facilities licensed to produce a significant amount of finished goods, offering a growing number of patients a reliable, diverse and secure supply of cannabis and related oils products."

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Thu, 31 Mar 2016 08:54:00 -0400 https://www.proactiveinvestors.com/companies/news/124277/canopy-growth-corporation-gets-green-light-for-ontario-grow-operation-124277.html
<![CDATA[News - Tweed gets marijuana licence renewed ]]> https://www.proactiveinvestors.com/companies/news/119496/tweed-gets-marijuana-licence-renewed-119496.html Fri, 20 Nov 2015 08:14:00 -0500 https://www.proactiveinvestors.com/companies/news/119496/tweed-gets-marijuana-licence-renewed-119496.html <![CDATA[News - Tweed Marijuana set to buy MedCannAccess in all share deal ]]> https://www.proactiveinvestors.com/companies/news/115467/tweed-marijuana-set-to-buy-medcannaccess-in-all-share-deal-115467.html Tweed Marijuana (CVE:TWD), Canada's first publicly traded medical marijuana company, is set to buy MedCannAccess in a deal, which it says, will allow it to connect with clients in person via community access centres.

Tweed's lead product is in development and is a mist that can be sprayed into the mouth.

“Tweed has always placed a heavy emphasis on customer service,” chief executive Bruce Linton told investors.

"Until today, that meant people could call us and talk to a customer care associate or find us on social media to learn more about our products and services.

"Now they can walk into a physical location and get that same level of service, face to face.”

Tweed will also acquire from MedCannAccess a 33% stake in CannScience Innovations Inc - a health science research company in Toronto which is working to provide standardised doses of medicinal cannabis.

Shareholders in MedCannAccess, not traded on any public stock market, will receive $1.5 million in Tweed shares upon closing, plus another $4.24 million in Tweed shares provided that certain milestones - including international expansion goals - are met.

Last month, Tweed said it had received authorisation from Health Canada to begin the production of cannabis extracts in the company's state-of-the-art facility in Smiths Falls, Ontario.

Tweed will use preeminent pharmaceutical grade extraction methods to produce purified cannabis derivatives, the company said.

 

Shares in Tweed in Toronto eased 0.63% down to C$1.57.

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Fri, 04 Sep 2015 14:00:00 -0400 https://www.proactiveinvestors.com/companies/news/115467/tweed-marijuana-set-to-buy-medcannaccess-in-all-share-deal-115467.html
<![CDATA[News - Tweed Marijuana starts Cannabis extraction ]]> https://www.proactiveinvestors.com/companies/news/115466/tweed-marijuana-starts-cannabis-extraction-115466.html Tweed Marijuana (CVE:TWD), Canada's first publicly traded medical marijuana company, said its wholly owned unit, Tweed Inc., has received authorization from Health Canada to begin the production of cannabis extracts in the company's state-of-the-art facility in Smiths Falls, Ontario.

Tweed will use preeminent pharmaceutical grade extraction methods to produce purified cannabis derivatives, the company said in a statement on Thursday.

"The major advantage that comes with commercial scale is that you can provide products to customers that they couldn't make themselves at home, offering a higher level of quality and purity," chief executive officer Bruce Linton said in the statement.

Seven new precision climate-controlled drying rooms, a dedicated trimming room, extraction room and processing room were also all approved for use by Health Canada. 

Enhanced infrastructure will allow the company to continue providing access to premium, dried cannabis while simultaneously scaling for diversified derivative production, the company said.

Tweed Marijuana said its pending Bedrocan Canada Corp. acquisition and facility enhancements at Tweed Farms will provide the basis for accelerated extract production. 

The introduction of cannabis derivatives into the Canadian market will require large-scale production in order to satisfy the immediate and growing demand for non-smoked forms of cannabinoids, the company said.

Shares fell 1.7% to C$1.79 at 11.19 a.m. in Toronto.

Tweed Marijuana will be releasing its quarterly results for the period ended June 30 on August 31.

 


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Thu, 20 Aug 2015 11:46:00 -0400 https://www.proactiveinvestors.com/companies/news/115466/tweed-marijuana-starts-cannabis-extraction-115466.html
<![CDATA[News - Tweed and Bedrocan to join, creating largest medical marijuana company in Canada ]]> https://www.proactiveinvestors.com/companies/news/115465/tweed-and-bedrocan-to-join-creating-largest-medical-marijuana-company-in-canada-115465.html

Shares of Tweed Marijuana (CVE:TWD) were 15% higher today as the company made a friendly takeover for Bedrocan Cannabis (CVE:BED) that would result in the creation of Canada’s largest licensed producer of marijuana with a combined capacity of six tonnes of marijuana a year, across various product lines.

Bedrocan’s investors may have felt a high of their own as the company’s shares soared 27.5%, trading at a C$0.86, a price not seen since last September.

Under the deal, Bedrocan's shareholders will receive 33.9 million common shares of Tweed, valued at C$61 million as the end of business on June 23.

Tweed and Bedrocan are an ideal fit because they have different specialities. Tweed is a more consumer oriented business based on production while Bedrocan brings research capabilities as it has made a name for itself in the clinical research sector.

The combined company would avail itself of three production facilities in Ontario and distributes marijuana to patients across Canada under federal licences that allow the use of cannabis for treatment of certain medical conditions.

The deal is the first merger in the emerging Canadian cannabis and marijuana sector, which earned legal status on April 2014.

It will have three production facilities in Ontario, and a total licensed sales capacity roughly of 6,000 kilograms of medical pot per year. The combined market cap of the two firms is triple the size of its closest rivals.

Tweed and Bedrocan were already two of Canada’s three top authorized producers of medical cannabis in Canada. Mettrum Health (TSE:MT) being the third.

Tweed, Bedrocan and Mettrum, along with Quebec’s College des medecins (CMQ), said they would begin finance the creation of a registry for medical cannabis users in the Province of Quebec.

The industry partners and CMQ will provide funding to the Canadian Consortium for the Investigation of Cannabinoids (CCIC) to finance the first registry of cannabis users, a research project conducted by Dr. Mark Ware, a pain specialist and researcher-clinician of IRCUSM.

The Register Cannabis Québec was created the CMQ’s demand for guidelines for the use of medical cannabis. It will compile and store clinical data collected directly from patients who use cannabis for medical purposes. The registry will also track the efficacy and safety of cannabis used in the management of symptoms associated with particular health problems.

This project will extend over a total period of ten years, will provide one of the largest global research databases on the use of cannabis for medical purposes, collecting valuable data on safety and efficacy, and consequently it gives health professionals the confidence they seek to recommend this option to their patients, potentially increasing demand and legitimacy in the opinion of lawmakers.
 
"This initiative will provide access to medical cannabis for a larger number of patients. Whether it will replace other treatment options similar to cannabis or treat symptoms that cannot be effectively managed by traditional drugs, this will put an end to long waits for many in Quebec," said Tweed’s president and CEO, Bruce Linton.

Several entrepreneurs in Canada and North America have jumped on the opportunities to produce cannabis in response to many States and Provinces having legalized marijuana for medical and even recreational use.

Since April 1, 2014, Health Canada has permitted individuals or companies to possess, hold production licenses for personal and commercial use (in accordance with the interim injunction from the Federal Court).

Tweed Marijuana is the first Canadian cannabis company to be publicly traded with operations in Smith Falls, Ontario.

In the interest of consumers and investors alike, authorized medical cannabis producers cannabis must comply with a series of standards in order to produce and distribute. In addition, the measure provides patients the opportunity to choose their supplier. Currently, patients who use marijuana for therapeutic use will require a medical written consent.

Producers will have to confirm that authorization medical clearance is correct and the patient can get the necessary amount of marijuana for treatment during a specified period. The doctor may also sell, deliver and administer cannabis to patients in addition to allowing them to consume.

 

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Wed, 24 Jun 2015 15:43:00 -0400 https://www.proactiveinvestors.com/companies/news/115465/tweed-and-bedrocan-to-join-creating-largest-medical-marijuana-company-in-canada-115465.html
<![CDATA[News - Tweed's Q4 gross margin improves 36% quarter-on-quarter amid increasing order volumes ]]> https://www.proactiveinvestors.com/companies/news/105554/tweeds-q4-gross-margin-improves-36-quarter-on-quarter-amid-increasing-order-volumes-59942.html Tweed Marijuana (CVE:TWD), parent company of licensed medical marijuana producers Tweed Inc. and Tweed Farms Inc., reported improved sequential gross margin, while providing operational updates.

Fourth-quarter revenue was $641,309, the Smiths Falls, Ontario-based company said in a statement today.

The company sold 87,138 grams during the quarter, giving a gross margin of 36 percent, up from 23.6 percent in the previous quarter.

Shares climbed 15 percent to C$2.22 at 2:41 p.m. in Toronto.

The processing area at Tweed continues to manage an increasing volume of orders, which as of February 17 totalled just over 75,000 grams sold and shipped, calendar year-to-date, the company said.

The company said it has completed the build out of three additional growing rooms and an in-house laboratory within the 168,000 square feet licensed facility operated by Tweed at 1 Hershey Drive in Smiths Falls.

The in-house laboratory, when approved, will allow for a more cost-effective testing process, while also giving Tweed the tools to analyze plants during every stage of the production process and optimize the reliability and quality of its final product.

With between 9 and 11 strains continuously available, average order size and average price per gram have increased during December 2014 and year-to-date in 2015, the company said.

Production and inventory levels from the indoor and greenhouse facilities harvested in late 2014 have been supported by three harvests to date in 2015 with ongoing harvests scheduled for both facilities.

"We invested in a large growing platform early so we could remove any customer onboarding roadblocks," Tweed’s chief executive officer Bruce Linton said in the statement.

"This investment began to yield significant inventory in November, clients in December, and sustained growth to date. The volume of supply this market needs requires scale. Tweed has been an early leader in almost all respects in this sector, and I fully intend to continue this trend as we approach 3,000 patients."

Tweed Farms, the company's second licensed subsidiary, is in the midst of broad scale infrastructure enhancements.

The entire Tweed Farms greenhouse, located in Niagara-on-the-Lake, Ontario is being transformed to meet the detailed specifications of the Marihuana for Medical Purposes Regulations. The greenhouse will house approximately 340,000 square feet of low-cost production space. Plans to add a large-scale processing facility in 2015 are already underway.

Tweed Marijuana will release results on February 26.

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Wed, 18 Feb 2015 14:56:00 -0500 https://www.proactiveinvestors.com/companies/news/105554/tweeds-q4-gross-margin-improves-36-quarter-on-quarter-amid-increasing-order-volumes-59942.html
<![CDATA[News - Tweed teams up with Canabo for industry first research partnership in Canada ]]> https://www.proactiveinvestors.com/companies/news/105441/tweed-teams-up-with-canabo-for-industry-first-research-partnership-in-canada-59792.html Tweed Marijuana (CVE:TWD) has signed a collaborative research arrangement with Canabo Medical Corporation, with the data to be used to clarify the role of marijuana in various chronic conditions.

The company said the partnership will focus on research on marijuana for medical purposes, including for the management of chronic pain. Canabo will conduct scientific research through its network of healthcare practitioners at its medical clinics, according to the joint statement.

"Tweed's focus has been on research and medical education since the very beginning," said chairman and chief executive officer, Bruce Linton. 

"We are proud to be the first partner in this exciting project and hope and expect to see further Licensed Producers become involved in this important work over the coming months."

Tweed, the first publicly traded Canadian producer of the drug, said the scientific and medical research program will be based on "real-world datasets", with 1,100 patients currently enrolled. The figure is projected to climb to over 15,000 patients.

The subjects will have their data anonymously collected, and will answer a range of research questions, with the information expected to provide preliminary indications as to the effect of various cannabis strains on a range of chronic conditions.

The study will also serve to give more information on specific dosages and modes of administration, the compny added.

"Healthcare practitioners are seeking more information on how to practically incorporate cannabis into their practices, and accumulating a large-scale and reliable clinical dataset on the use of cannabinoids in clinical practice will be a major step forward in this endeavor," said Canabo CEO JC St-Amour.

Canabo has referral-only clinics which incorporate evidence-based medicine in combination with expert opinion to treat the needs of patients suffering from chronic illnesses. It is focused on treatments through the use of prescription cannabinoids and herbal cannabis. 

Tweed Marijuana has dual licenses to produce medical marijuana under Canada's new regulations.  Its online shop has “an industry-leading” nine strains available for sale to customers. Shares have surged more than 788 percent since its IPO in April.

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Tue, 10 Feb 2015 14:25:00 -0500 https://www.proactiveinvestors.com/companies/news/105441/tweed-teams-up-with-canabo-for-industry-first-research-partnership-in-canada-59792.html
<![CDATA[News - Tweed Marijuana gets 2nd license renewal, says December revenue outperforms Q3 ]]> https://www.proactiveinvestors.com/companies/news/104892/tweed-marijuana-gets-2nd-license-renewal-says-december-revenue-outperforms-q3-59075.html Tweed Marijuana (CVE:TWD), the first publicly traded Canadian producer of the drug, said its wholly owned unit Tweed Farms has obtained a license renewal for the cultivation of medical marijuana at its facility in Niagara-on-the-Lake, Ontario.

The license is valid through December 31st, 2015 and will allow Tweed Marijuana to cultivate up to 11,500 cannabis plants at its greenhouse facility, the Smiths Falls, Ontario-based company said in a statement today.

Currently, plants grown in the natural environment of the Niagara sun are then transferred to the Tweed Inc. Smiths Falls facility where they are harvested, manicured, cured and tested before final sale to customers. Tweed Farms plans to establish capacity to harvest and store dried product on site in 2015.

"The extension is timely, coming only weeks after we released our first greenhouse grown product to customers," Bruce Linton, chairman and co-founder of Tweed, said in the statement.

"We have already learned so much from the initial grow cycle at Tweed Farms and applied that knowledge to our second growing cycle that's growing now. We will continue to refine the model of greenhouse and indoor growth to ensure an optimal model of low cost, high yield, and top quality production."

Also today, Tweed said the company’s December revenue exceeded the $316,117 of revenue reported in the last quarter “even with the shortened month, due to the holiday season.” 

The company said its online shop has “an industry-leading” nine strains available for sale to customers, and that the waiting list for registration has been eliminated to ensure timely access to medicine.

“With nine flowering rooms in operation and a further three awaiting Health Canada inspection, continuous harvesting and product release have now been achieved, supporting streamlined operations and customer supply,” the company said.

Shares of Tweed have shot up nine times over the past year and closed at C$2.08 in Toronto on Jan. 2.

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Mon, 05 Jan 2015 09:38:00 -0500 https://www.proactiveinvestors.com/companies/news/104892/tweed-marijuana-gets-2nd-license-renewal-says-december-revenue-outperforms-q3-59075.html
<![CDATA[News - Tweed Marijuana reports lower-than-estimated Q3 sales ]]> https://www.proactiveinvestors.com/companies/news/104390/tweed-marijuana-reports-lower-than-estimated-q3-sales-58401.html Tweed Marijuana (CVE:TWD) stumbled in morning trades after the first publicly traded Canadian producer of the drug reported lower-than-expected sales in the third quarter.

Shares fell 15 percent to C$2.43 at 10:04 a.m. in Toronto.

Sales in the three months that ended September 30 totalled $0.32 million, the Smiths Falls, Ontario-based company said in a statement late yesterday. One analyst predicted sales of $1.02 million.

Net loss amounted to $2.4 million.

The company said its cash position was $8.4 million at the end of the quarter.

Tweed had three grow rooms in production by the end of July and on August 31 had an additional three grow rooms brought online, bringing production capacity to six grow rooms by the end of the quarter, meaning that harvests are now six-fold larger than early harvests.

Tweed said yesterday that it has committed to introducing an additional six rooms by the end of 2014 and remains on pace to reach this target.

Last June, Tweed Marijuana acquired all the assets of Prime 1 Construction Services Corp., including related land, greenhouse and building. In August, Tweed Farms, its wholly owned subsidiary, received its Health Canada license to grow and ship marijuana plants and subsequently started a growing cycle in 10 percent of the 350,000 square foot facility.

In October, Tweed Farms started shipping its plants to Tweed for harvesting. This month, the harvest had been cut, trimmed and was drying and curing so as to be available for sale in the beginning of next month along with Tweed harvests from six growing rooms at its Smiths Falls facility that had started in October.

Last week, the company said it had successfully renewed its license to cultivate and sell marijuana under Canada's new regulations. The renewed license allows Tweed to produce up to 3,500 kilograms of marijuana over the next year, reflecting Tweed's present built-out production capacity.

Tweed Marijuana also announced that Tweed Farms has been approved to begin another growing cycle next month in a footprint representing approximately 10 percent of the entire facility.

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Wed, 26 Nov 2014 10:17:00 -0500 https://www.proactiveinvestors.com/companies/news/104390/tweed-marijuana-reports-lower-than-estimated-q3-sales-58401.html
<![CDATA[News - Tweed Marijuana says Niagara-on-the-Lake facility gets government license ]]> https://www.proactiveinvestors.com/companies/news/102733/tweed-marijuana-says-niagara-on-the-lake-facility-gets-government-license-56048.html Tweed Marijuana Inc. (CVE:TWD), Canada's first publicly traded medical marijuana company, rose in morning trades after saying its recently acquired greenhouse facility in Niagara-on-the-Lake, Tweed Farm, has obtained its Health Canada license.

Shares were up 5 percent at C$2.71 at 9:58 a.m. in Toronto.

The license has enabled Tweed to start growing activities in approximately 10% of the entire 350,000 square foot facility, the Ottawa-based company said in a statement today.

Tweed Farms will produce the initial crop while concurrently working to expand its growing area and other permitted activities under the MMPR (Marihuana for Medical Purposes Regulations) license as issued on August 8.

Tweed Farms utilizes rainwater harvesting from the roof surface of our glass greenhouse, water recirculation and re-use, and carbon dioxide capture strategies to produce medical marijuana in a very sustainable way. 

The entire facility is expected to have the potential to produce up to 45 million grams per year of marijuana based upon expanding our licensing to the full square footage of the greenhouse.

"Tweed is now the first geographically diversified, multi-licensed producer in Canada and will seek to accelerate production from this leadership position," Bruce Linton, Chairman & Co-Founder, said in the statement.

There are currently 17 strains in production at Tweed Farms, including Bakerstreet (Hindu Kush), Donegal (Chem Dawg), and High Lands (East Coast Sour Diesel).

The first harvest is anticipated in the fourth quarter, Tweed said.

Tweed is producing and selling marijuana out of its facilities in Smiths Falls and Niagara-on-the-Lake, Ontario as regulated by the MMPR.

 

 

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Mon, 11 Aug 2014 10:35:00 -0400 https://www.proactiveinvestors.com/companies/news/102733/tweed-marijuana-says-niagara-on-the-lake-facility-gets-government-license-56048.html
<![CDATA[News - Tweed Marijuana gains as more product to allow registration of new customers shortly ]]> https://www.proactiveinvestors.com/companies/news/102599/tweed-marijuana-gains-as-more-product-to-allow-registration-of-new-customers-shortly-55844.html Tweed Marijuana's (CVE:TWD) shares rallied over 5 percent on Thursday after the company said it will be releasing up to 18 additional marijuana varieties beginning next week, for sale in August and September. 

The new varieties come as the company's second and third flowering room harvests complete their growing cycle. On July 30, it also added Norfolk and Buddy inventory to its online shop, it said.

With these product releases, the company will be able to begin registering new customers from its waiting list shortly.

Tweed Marijuana was Canada's first publicly traded medical marijuana company and started trading on the Toronto Venture Exchange in April, with its shares soaring 5,400% since.

Canada's new Marijuana for Medical Purposes Regulations (MMPR), which were introduced back in April, led to a whole surge of new entrants into the sector. The MMPR program was developed to replace the Medical Marijuana Access Regulations (MMAR) license regime, which had proven difficult to monitor owing to the many thousands of small-scale growers it covered.  

The idea behind MMPR is to put licensed growing into the hands of a much smaller number of large commercial operations. Health Canada has been inundated with MMPR application requests, as the department predicts the burgeoning industry will be worth some $1.3 billion by 2024, and that the number of users could increase 10-fold within five years. 

In an effort to diversify operations and become a national provider of medical marijuana, Tweed announced in June that it bought Prime1 Construction Services Corp, which owns a facility in Niagara-on-the-Lake, for $3.6 million. The deal added more than 350,000 square feet of greenhouse facility in Niagara-on-the-Lake, expanding on Tweed's current 168,000 square foot indoor operations in Tweed, Ontario, which is already licensed to produce up to 15,000 kg of marijuana per year. 

The acquisition diversified the company into a multi-platform producer, with both indoor and greenhouse production, while also providing it with more than one license in Canada and the ability to offer a selection of varieties and price points. Prime1 has already applied for a license to produce medical marijuana under Health Canada's new regulations, with its application undergoing review as of last month.

Shares of Tweed climbed 5.1 percent on Thursday to C$2.47 in Toronto.

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Thu, 31 Jul 2014 15:14:00 -0400 https://www.proactiveinvestors.com/companies/news/102599/tweed-marijuana-gains-as-more-product-to-allow-registration-of-new-customers-shortly-55844.html
<![CDATA[News - Tweed aims to become national public force in medical marijuana sector ]]> https://www.proactiveinvestors.com/companies/news/101901/tweed-aims-to-become-national-public-force-in-medical-marijuana-sector-54875.html In an effort to diversify operations and become a national provider of medical marijuana, Tweed Marijuana (CVE:TWD) has bought Prime1 Construction Services Corp, which owns a facility in Niagara-on-the-Lake, for $3.6 million. 

Prime1 has already applied for a license to produce medical marijuana under Health Canada's new regulations, with its application undergoing review.

The deal will add more than 350,000 square feet of greenhouse facility in Niagara-on-the-Lake, expanding on Tweed's current 168,000 square foot indoor operations in Tweed, Ontario, which is already licensed to produce up to 15,000 kg of marijuana per year. 

Tweed said the acquisition will diversify the company into a multi-platform producer, with both indoor and greenhouse production, while also providing the company with more than one license in Canada and the ability to offer a selection of varieties and price points.

Canada's new Marijuana for Medical Purposes Regulations (MMPR), which were introduced back in April, led to a whole surge of new entrants into the sector. The MMPR program was developed to replace the Medical Marijuana Access Regulations (MMAR) license regime, which had proven difficult to monitor owing to the many thousands of small-scale growers it covered.  The idea behind MMPR is to put licensed growing into the hands of a much smaller number of large commercial operations.

Tweed Marijuana was Canada's first publicly traded medical marijuana company and started trading on the Toronto Venture Exchange in April, with its shares soaring more than 6,400% since.

Health Canada has been inundated with MMPR application requests, as the department predicts the burgeoning industry will be worth some $1.3 billion by 2024, and that the number of users could increase 10-fold within five years. So far, Canadian health regulators have only granted 13 licenses, but have received over 850 applications as of late last month.

"Tweed is pleased to announce the first material transaction that begins to consolidate the sector on the first anniversary of the issuance of the MMPR," said Tweed co-founder and Chairman, Bruce Linton.

"The opportunity for Tweed to become a geographically distributed and multi-Licensed producer is extremely exciting and builds on Tweed's commitment to provide a reliable supply of the highest quality medicine in Canada."

The company will pay $3.6 million in cash on closing and up to an additional $100,000 once it has achieved certain milestones. Tweed will also issue up to 519,031 shares if and when specific milestones are met over the next 12 months. 

The medical marijuana producer said it is optimistic that a portion of the purchase price will be eligible for traditional debt financing, secured by the facilities and land owned by Prime1. 

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Thu, 19 Jun 2014 11:39:00 -0400 https://www.proactiveinvestors.com/companies/news/101901/tweed-aims-to-become-national-public-force-in-medical-marijuana-sector-54875.html
<![CDATA[News - Tweed Marijuana rises as company expects to generate limited revenue in Q2 ]]> https://www.proactiveinvestors.com/companies/news/101573/tweed-marijuana-rises-as-company-expects-to-generate-limited-revenue-in-q2-54456.html Tweed Marijuana Inc. (CVE:TWD), the first publicly traded Canadian producer of the drug that has not generated revenue yet, advanced in morning trading after saying it expects to generate limited revenue in current quarter.

Shares of the Ottawa, Ontario-based company rose 0.7 percent to C$3.03 at 9:44 a.m. in Toronto.

The company said in a statement today that it shipped its first product on May 5 and that it will incur losses in the second quarter until revenues reach a level where operations become profitable.

For the first quarter, the company said it had no revenue to report, as it had not shipped product as of March 31.

At March 31, the company had cash available of $7.7 million. The company consumed $2.9 million in operating activities during the quarter; generated cash from equity financing activities in the amount of $9.8 million and used cash of $1.5 million for investing activities associated with long-term assets. The company said it has incurred losses to date. 

"I am pleased to report our progress in this first quarter as a public company," Chief Executive Officer Chuck Rifici said in the statement. "During this period, the Company's focus and operating spending has been on achieving commercial production to be able to sell medical marijuana to Canadians in need."

Tweed, based in a former chocolate factory in Smiths Falls, Ontario, began trading on the Toronto Stock Exchange on April 4.

The company, with a market value of C$121 million, won a government license to grow and sell marijuana to patients who have a doctor’s prescription. The system was supposed to replace home-grown medical pot on April 1 before a recent court challenge by individual growers. Health Canada has estimated the market could be worth C$1.3 billion in 10 years.

 

 

 

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Fri, 30 May 2014 10:26:00 -0400 https://www.proactiveinvestors.com/companies/news/101573/tweed-marijuana-rises-as-company-expects-to-generate-limited-revenue-in-q2-54456.html