Isodiol Agrees To Acquire 51% Of Round Mountain Technologies, Commences Certified Organic Hemp Farming in Nevada

CANADA: Isodiol International, a global CBD innovator specializing in hemp based health and wellness products, the development of pharmaceutical CBD delivery methods and the manufacturing of a pure, natural CBD as an Active Pharmaceutical Ingredient for use in finished pharmaceutical products, is pleased to announce that it has entered into a binding agreement to acquire 51% of Round Mountain Technologies, a cultivator of organic hemp with operations in Nevada.

RMT holds a license from the State of Nevada to cultivate organic hemp in Nye County.  The property consists of approximately 155 acres, of which RMT and Isodiol intend to plant 70 acres within the coming weeks, initially.  RMT and Isodiol will contribute to Nevada’s local economy by ensuring that all hemp harvested by RMT will be processed within the State of Nevada.

Logo-Isodiol-1500wUnder the terms of the agreement, Isodiol will commit funding of US$400,000 in cash to RMT for working capital and general obligations and issue US$250,000 in Isodiol stock based on the May 22, 2018 closing price, subject to 36-month lock-up/leak-out guidelines, in exchange for the 51% RMT ownership interest.

“This transaction is another significant milestone in Isodiol’s storied path to success,” said Marcos Agramont, CEO of Isodiol.  Mr. Agramont continued, stating, “We are pleased to be working with RMT and increasing our US organic hemp biomass supply for CBD production.”

Isodiol has successfully pursued its strategy of establishing a globally dominant position in the cultivation of jurisdictionally compliant industrial hemp and manufacturing of jurisdictionally compliant CBD consumer products.  To date, Isodiol has the ability to legally source, cultivate, and/or manufacture industrial hemp on three continents, North America, Europe, and Asia.  Additionally, Isodiol’s UK Subsidiary, BSPG Laboratories Ltd. produces CBD that has been approved as an Active Pharmaceutical Ingredient (API) by the United Kingdom Medicines and Healthcare Products Regulatory Agency (MHRA) for use in Finished Pharmaceutical Products (FPPs).

“We believe we produce the purest, natural CBD in the industry.  The API is recognition of that achievement.  Isodiol will continue to pursue global recognition and approval of the API grade CBD and expand our distribution of CBD consumer products in new jurisdictions while continuing to expand our manufacturing capabilities throughout the world,” said Agramont.

“Isodiol has come to embrace the positive legal developments in legislation, regulations, and agency interpretations in jurisdictions throughout the world that have paved a legal pathway for Isodiol to legally and commercially produce pure, natural CBD from industrial hemp,” said Agramont.  Agramont went further to say, “Isodiol’s previous efforts to seek alternative sources of CBD, such as through novel hop strains, are still of interest to Isodiol, but due to favorable legislative and regulatory outcomes, Isodiol is focusing on cannabinoids produced from hemp. Presently, sources for Cannabinoids other than hemp would take longer and cost substantially more to develop.”

Global Cannabis-Infused Edible Products Expected To Grow +25% CAGR 2018-2022

IRELAND: Analysts forecast the Global Cannabis-Infused Edible Products Market to grow at a CAGR of 25.01% during the period 2018-2022, according to the recently published “Global Cannabis-infused Edible Products Market 2018-2022” report.

Cannabis-infused edible products comprise of liquid edible or a drinkable. It is a cannabis product that comprises cannabinoid compounds such as cannabidiol (CBD) and tetrahydrocannabinol (THC).

The report covers the present scenario and the growth prospects of the cannabis-infused edible products market. To calculate the market size, the report considers the revenue generated from the sales of cannabis-infused edible products.

The increasing number of countries decriminalizing cannabis will be a key trend driving the market growth. Several nations have decriminalized the use of marijuana both for recreational and medical purposes. In 2016, Canada legalized the use of marijuana for both recreational and medical purposes..

The growing social acceptance of cannabis will drive the market growth. The growing demand and growth of the cannabis market influences the sales and revenues of major corporations. Also, the increasing social acceptance of recreational marijuana and cannabis-infused edible products globally offers high growth opportunities to the vendors.

The report states that the lack of funds and investments in cannabis sector will impact the market growth. Numerous investment organizations decline to provide investment and loans to vendors in the legal cannabis industry. Vendors struggle to increase their profit margins due to lack of support from government organizations and high-interest rates of the private sector.

Companies Mentioned

  • Bhang Corporation
  • Cannabis Energy Drink
  • KIVA CONFECTIONS
  • Mentor Capital
  • VCC BRANDS

Aphria Signs Agreement To Supply Cannabis To The Manitoba Adult-Use Market

CANADA: Aphria has signed a Supply Agreement with the Manitoba Liquor and Lotteries Corporation to provide a portfolio of high-quality, branded cannabis and cannabis derivative products for sale in Manitoba’s adult-use market.

“We are thrilled to finalize this Agreement with the MBLL,” said Jakob Ripshtein, Chief Commercial Officer at Aphria. “Our broad portfolio of adult-use brands and products has been specifically developed to meet the needs of distinct consumer segments, whether new to cannabis or long-time aficionados. We’re excited that Manitoba’s adult consumers will have the opportunity to discover our thoughtfully developed brands and products.”

Under the terms of the Agreement, the Company will supply up to 2.7 million grams of cannabis and cannabis derivative products in the first year of the agreement, including both Ontario and BC dried flower, pre-rolls and cannabis oils. The wide range of products will be available for sale at licensed retailers across the province. It is anticipated that additional products currently being developed by Aphria, such as vapes and edibles, will also be made available in Manitoba when authorized for sale under the Cannabis Act.

“This partnership with Manitoba represents yet another significant step towards the future as we continue to make history across Canada in the march towards legal sales this fall” said Vic Neufeld, Chief Executive Officer at Aphria. “With our annual production capacity reaching 255,000 kg in early 2019 and our recently announced partnership with Great North Distributors, we are incredibly prepared to meet the anticipated demand in Manitoba and across Canada.”

Aurora Cannabis Announces $200 Million Debt Facility With Bank Of Montreal

CANADA:  Aurora Cannabis has agreed to a new $200 million debt facility, with a potential upsize to $250 million, with the Bank of Montreal (“BMO”).

The facility will consist of a $150 million term loan and a $50 million revolving credit facility (together, the “Loans”), both of which will mature in 2021. A short period after the implementation of Bill C-45 in October 2018, the Company may request an increase of up to a further $45 million to the term loan subject to agreement by BMO and satisfaction of certain legal and business conditions. BMO will also be providing up to $5 million in other credit instruments. Closing of the debt facility is subject to completion of final due diligence, negotiation of definitive documentation, and satisfaction of conditions precedent customary to a financing of this nature.

The debt facility will be primarily secured by Aurora’s production facilities, including Aurora Sky, Aurora Mountain, and Aurora Vie. Strategically located at Edmonton International Airport, Aurora Sky is the world’s most technologically advanced cannabis facility, projected to produce in excess of 100,000 kg per year of high-quality cannabis at low per gram costs, and slated to deliver its first harvest this week.

“Having successfully met all of BMO’s stringent risk assessment and other due diligence criteria to establish this facility reflects well on the maturity, progress and prospects of Aurora, as well as the quality and economic value of our production facilities,” said Terry Booth, CEO. “This is by far the largest traditional debt facility in the cannabis industry to date. The funds provide us additional fuel to complement our end-to-end portfolio of vertically integrated, geographically and horizontally diversified assets, aimed at building a pre-eminent global cannabis company with a superior margin profile.”

Glen Ibbott, CFO of Aurora, added, “The shift to traditional debt financing is significant.  Our cost of capital continues to decrease, providing us a distinct competitive advantage as we execute on our growth strategy. The non-dilutive nature and attractive pricing are consistent with Aurora’s commitment to generating shareholder value. We believe this is a major milestone in the cannabis industry and a validation of our operational effectiveness. It also marks an exciting new stage of our long-term relationship with BMO, a Tier 1 bank with a sterling domestic and international reputation.”

The Loans can be repaid without penalty at Aurora’s discretion. The pricing of the Loans is a set margin over the BMO CAD Prime Rate or a Bankers’ Acceptance of appropriate term. Based on the current BMO CAD Prime Rate, the interest payable is expected to be in the mid to high 4% per annum range over the term of the Loans.

Tilray Files Application To IPO On Nasdaq

Company has also filed a Canadian Preliminary Prospectus for Proposed IPO, in order to qualify the offering of securities in Canada and to ensure purchasers in Canada are not subject to resale restrictions 

CANADA: Tilray, a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, has announced the filing of a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for a proposed initial public offering (“IPO”) of shares of its Class 2 common stock in the United States. Tilray intends to list its Class 2 common stock on the Nasdaq Global Select Market under the ticker symbol “TLRY.”

The number of shares to be offered and the price range for the offering have not yet been determined. In order to qualify the offering of securities in Canada and to ensure that purchasers in Canada are not subject to restrictions on resale, Tilray has also filed a preliminary prospectus for a proposed IPO in Canada with the securities regulatory authorities in each province of Canada other than the Province of Quebec. Tilray does not intend to list on any stock exchange in Canada.

Cowen and BMO Capital Markets will jointly act as book-runners for the proposed IPO. Cowen will act as the sole book-running manager for the IPO in the United States, and BMO Capital Markets will act as the sole book-running manager for the IPO in Canada. Eight Capital will act as a lead manager for the IPO in Canada. Roth Capital Partners will act as a lead manager and Northland Capital Markets will act as a co-manager for the IPO in the United States.

Farmer Tom Travels To Spain

Last fall Farmer Tom had a chance to take an international trip to Spain to participate in Spannabis.  I have a long history with one of the private cannabis social clubs in Barcelona, Greenardos.  I first met them when they stayed with us on the farm for about a month, four years ago. During their visit, they got ahold of one of my seeds — a cross between Amnesia Haze and our Power Kush– and it turned out to be an amazing phenotype.  The club has carried it at their location for the last three years, and it has been one of their top strains.

Farmer Tom Spain

 

Spannabis was a blast.  I got to connect with cannabis enthusiast’s from around the world — all the top players were there. During my stay in Barcelona, I was warmly welcomed — not just because my strain had won many competitions throughout Europe — the locals are just genuinely very nice, gracious people.

 

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One of the highlights of my trip was seeing BC Barcelona play football. We watched them win, and Messi score the winning goal.  I spent a day making high quality solvent-less hash with the Dank Duchess and Blue Eyes. I learned a lot and had a wonderful experience with these great people. The best thing about Spain was the food.  I had some of the most amazing, high quality food I’ve ever eaten. From the seafood — fresh from the Mediterranean Seat and North Atlantic — to the fresh fruits and veggies.  My favorite was Hamon — a kind of ham made 100% from Ibérico pigs who are allowed to feed and roam completely free range.  The stuff you live for.

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After Spannabis I spent a day touring LaRambla, where we stopped by Weedmaps Spanish headquarters, and also went to visit Sensi magazine’s Cannabis and Hash Museum.  I was warmly welcomed at both locations.  We sat on the roof and smoked fatties at Weedmaps, and I got a personal tour of the cannabis museum by the curator and manager — it was quite an experience.

 

Cannabis Sales On The Rise In North America

NEW YORK: The global legal cannabis market was valued at $14.3 billion in 2016 and is projected to grow at a CAGR of 21.1% between 2017 to 2024, while reaching a value of $63.5 billion by 2024, according to a report by Ameri Research.

The market is going through a period of robust growth because of increasing legalization and decriminalization of cannabis products across North America. The report specifies that legalization trends are moving beyond the U.S. region.

Aphria Selects Great North Distributors For Canadian Distribution Of Adult-Use Cannabis

CANADA: Aphria and Great North Distributors, a wholly-owned Canadian subsidiary of Southern Glazer’s Wine & Spirits, have signed an agreement for Great North Distributors to serve as exclusive manufacturer’s representative for Aphria’s adult-use cannabis products throughout Canada, following the legalization of recreational cannabis for adult-use anticipated later this year.

Under the terms of the agreement, Great North Distributors will be Aphria’s exclusive cannabis representative in Canada. The first-of-its kind deal gives Aphria 100% coverage of all cannabis retailers, whether provincially or privately operated, across Canada from the first day of legal adult-use sales.

“With this agreement, Aphria has established an unparalleled sales network, and will hit the ground running from the very first day of legal adult-use sales,” said Jakob Ripshtein, Chief Commercial Officer of Aphria. “Great North Distributors provides us with an experienced, dedicated team with a proven track record of driving sales and exceptional performance across all provinces. This deal will ensure that Aphria’s brands and products are proudly represented by cannabis retailers throughout the country.”

As a subsidiary of Southern Glazer’s, North America’s largest wine and spirits distributor, Great North Distributors has reach across every province across Canada, including established relationships and expertise in working with provincially owned and operated retailers and private retailers alike. Great North Distributors will establish a dedicated cannabis sales team that will be responsible for acting as the selling agent of Aphria’s broad portfolio of adult-use cannabis brands and products to provincial retailers throughout Canada, from the most populated cities to the most remote locations.

Patients Dramatically Reduce Their Opioid Use Following Cannabis Access

CANADA: Pain patients enrolled in Canada’s legal medical cannabis access program significantly reduce their use of opioids over the long-term, according to longitudinal data provided by Tilray Canada Ltd – one of the nation’s largest, licensed provider of medicinal marijuana products.

Investigators assessed opioid use patterns in a cohort of 573 patients using Tilray-provided products. Among those patients who acknowledged using opioids upon enrollment in the trial, 51 percent reported ceasing their opiate use within six-months.

“The high rate of cannabis use for the treatment of chronic pain – and subsequent substitution for opioids – suggests that cannabis may play a harm-reduction role in the ongoing opioid dependence and overdose crisis,” said Philippe Lucas, lead investigator of the Tilray Observational Patient Study. “While the cannabis substitution effect for prescription drugs has been identified and assessed via cross-sectional and population-level research, this study provides a granular individual-level perspective of cannabis substitution for prescription drugs and associated improvement in quality of life over time.”

The study’s findings are similar to those reported among enrollees in medical cannabis programs in the United States, such as the experiences of patients in IllinoisMichiganMinnesotaNew Mexico, New York, and elsewhere.


For more information, contact Paul Armentano, NORML Deputy Director, at: paul@norml.org. NORML’s fact-sheet highlighting the relevant, peer-reviewed research specific to the relationship between cannabis and opioids is available online.

AltMed Raises $35.4 Million To Fuel Growth In Florida, Arizona & Internationally

FLORIDA: Alternative Medical Enterprises, a fully integrated company that brings pharmaceutical industry precision to the development, production and dispensing of medical cannabis, announced it has closed a private placement financing of $35.4 million with an affiliate of MainLine Investment Partners and other investors.

altmed logo

“This Financing will help us to conduct a robust launch in the massive medical marijuana marketplace of Florida and build out our 25 authorized dispensaries,” said Matthew Duffy, AltMed President and COO. “It will also enable us to accelerate the expansion of our cultivation capabilities and increase our footprint in Arizona. We anticipate significant growth over the next few years as we expand our licensed facilities to meet the needs of medical cannabis patients in Florida and Arizona.”

Additionally, the investment will provide capital to grow AltMed’s award winning MÜV brand of premium cannabis products nationally & internationally. Funding will also clear the balance sheet of debt and allow AltMed’s industry leading R&D to continue to prosper.