iCAN Secures Financing Through A Convertible Loan Of CAD $4 million (US $3 million)

ISRAEL: iCAN: Israel-Cannabis has announced that it has issued a secured convertible loan in the amount of CAD $4,000,000 to a group of investors led by Plaza Capital.
 
The principal amount of each Convertible Security, plus accrued interest shall be convertible, for no additional consideration, into common shares of the Company at the option of the holders at any time following the completion of a subsequent Qualified Financing and prior to the close of business on the Maturity Date, at a conversion price equal to the price per share based on a valuation of US $20M. The Convertible Securities shall bear interest at a rate of 8.0% per annum from the date of issue and shall be accrued into the note. 
 
Saul Kaye, CEO of iCAN: Israel-Cannabis, stated: “We are excited at the opportunities this financing round will create for iCAN and proud to have Plaza Capital join our solid investor base. With the success of CannaTech Davos and Panama so far in 2019, we are now well positioned to take our premier events to even more countries and continue to push the medicalization of cannabis around the world, with Cape Town already planned for late 2019. Our flagship event in Tel Aviv this week, once again sold out, and brought together the best Cannabis minds from around the world, showcasing Israel’s leadership in research and technology. iCAN’s unique position at the forefront of this exploding industry creates a wave of opportunities and this strategic financing will grow our iCAN:Serve and iCAN:Incubate portfolios.
 
Jesse Kaplan and Sruli Weinreb, Managing Partners at Plaza Capital added: “We were hugely impressed with iCAN’s performance and leadership at the recent CannaTech Panama event and see immense opportunity in their global positioning and pipeline of new technologies. Saul Kaye is front and center of the global cannabis economy and we are thrilled to support him and iCAN.”
 
The investment funds will be used to acquire and incubate cannabis-related businesses and anchor iCAN Incubate with a broad portfolio of new cannabis technologies. The funds will also provide an injection into iCAN’s conference platform CannaTech to continue to expand the pipeline of opportunities and extend the global cannabis footprint.
 
Shwergold Aharonson & Co. acted as sole legal advisory to iCAN while Plaza Capital was advised by Garfinkle Biderman in Canada and Yigal Arnon & Co. in Israel

Acreage Holdings Closes $119 Million Private Round – Largest In U.S. Cannabis History

Company Announces Completion of Roll-up and Plans for Public Listing on Canadian Securities Exchange for Q3 2018

NEW YORK: Acreage Holdings, one of the United States’ largest vertically integrated multi-state cannabis operators,  announced it has successfully closed its Series E funding round. The Company secured $119 million of capital and concurrently completed the rollup of control positions in several U.S. states. The proceeds raised will be used to prepare the company for its impending public listing.

“The response we received from our investor partners was profoundly encouraging. The combination of monies raised and the rollup cements Acreage as one of the best capitalized companies in the industry with a footprint that is second to none,” Kevin Murphy, founder and CEO of Acreage Holdings said. “This gives us an exceptionally strong investment proposition to bring into the public markets in our upcoming listing.”

It is believed that the $119 million raised represents the largest private funding raise in U.S. cannabis history. Acreage currently owns or operates licenses in 13 states and plans to use the monies raised to acquire additional licenses, brands and other properties to increase its reach, breadth of offerings and depth of management team. Acreage intends to list the Company this fall on the Canadian Securities Exchange (the “CSE”).

“We are planning on listing on the CSE for many reasons, including the positive reception that the Canadian institutional investment community has shown to the U.S. cannabis industry and to Acreage in particular.  Additionally, the CSE has become the exchange of choice for U.S. companies like ours,” Murphy continued.  “The liquidity on the CSE is incredibly attractive to Acreage, and we know that retail investors in the U.S. have become comfortable with that exchange. We expect to see a tremendous response to our offering this fall.”

“Our objective with our investors is to set the standard in terms of professionalism and competency in order to remove as much risk from cannabis investing as possible,” said George Allen, the President of Acreage Holdings. “It is a mission that will remain paramount to us as we transition from a private to a public investor base.”

FSD Pharma Inks Saskatchewan Wholesale Supply MOU With High Tide Ventures

CANADA: FSD Pharma this week announced that its wholly-owned subsidiary, FV Pharma Inc. has entered into a non-binding memorandum of understanding with High Tide Ventures Inc. (“High Tide”) dated July 18, 2018 to supply the Saskatchewan market on a wholesale basis with up to 5,000 kilograms of cannabis products over the next year when available. FSD Pharma is working together with Auxly (formerly Cannabis Wheaton Income Corp.) to achieve its mission to develop the largest hydroponic indoor cannabis cultivation facility in Cobourg, Ontario, Canada.

FSD PHARMA ENTERS INTO SASKATCHEWAN WHOLESALE SUPPLY MOU OF UP TO 5,000 KILOGRAMS WITH HIGH TIDE VENTURES

FSD PHARMA ENTERS INTO SASKATCHEWAN WHOLESALE SUPPLY MOU OF UP TO 5,000 KILOGRAMS WITH HIGH TIDE VENTURES

High Tide is in the process of becoming a licensed wholesaler of cannabis products in the province of Saskatchewan. Thomas Fairfull, President and CEO of FSD Pharma, stated, “This non-binding MOU is the result of FSD Pharma’s focus on growing high quality indoor hydroponic cannabis, which I expect will yield more opportunities to build on our relationship in the near future.” Raj Grover, President & Chief Executive Officer of High Tide, added, “High Tide has achieved an important strategic milestone by securing its first wholesale business partner for Saskatchewan and the province’s 51 retail cannabis outlets. It is very important to us to be able to provide the highest quality of indoor grown cannabis. We want to ensure that High Tide is able to offer consumers a variety of options that they actually enjoy.”

High Tide is focused on becoming a strong downstream player in the legal recreational cannabis industry in Canada. Through its subsidiaries, High Tide has also applied for over 30 retail cannabis licenses and associated development permits in Alberta, with applications in British Columbia expected to be submitted shortly.

 

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.”

MassRoots Enters Into Definitive Agreement To Acquire Whaxy

COLORADO: MassRoots, one of the leading technology platforms for the cannabis industry, this week announced it has entered into a definitive agreement to acquire DDDigtal Inc. d.b.a. “Whaxy” & Cannabuild for $100,000 cash and 2,926,830 million shares of MassRoots’ common stock.

Since launching in May 2016Whaxy‘s menu management and online ordering platform for licensed cannabis businesses has processed over $5 million in volume across 40,000 unique transactions. The acquisition is subject to customary closing conditions.

screenshot-2016-12-17-10-31-57“This acquisition, when completed, will expand MassRoots’ offerings to include a full suite of dispensary software solutions – online ordering, marketing, and real-time inventory management— for cannabis businesses,” stated Isaac Dietrich, MassRoots CEO. “Zach Marburger is a brilliant strategist whom we’ve known for years and Whaxy’s CTO Micah Davidson engineered one of the best technology platforms on the market with a lean budget. We could not be more excited to welcome them to the MassRoots team. Over the next few months, our main focus will be increasing the number of dispensaries utilizing the MassRoots/Whaxy platform.”

“We could not be more excited to be joining forces with MassRoots, enabling Whaxy’s system to scale its transaction volume, provide new capabilities to our customers, and add more enterprise value far more rapidly than we would have on our own,” stated Zach Marburger, Whaxy founder and CEO. “MassRoots comes to the table with hundreds of thousands of end-cannabis consumer relationships, hundreds of dispensary clients, a world-class development team, and one of the largest shareholder bases in the industry. The synergies between our two companies are strong and together, we’re building a cannabis technology powerhouse.”

Whaxy’s platform seamlessly integrates with nearly every major point-of-sale system used dispensaries and will seamlessly connect to the MassRoots network, allowing for live pricing, online ordering, and product feedback. Over the last six months, Whaxy has been used by some of the leading businesses in the industry, including Harborside, GreenHouse, Cresco Labs, and more.

2016 Cannabis Investment Study: 68% Of Investors Open to Businesses That Touch Marijuana

DISTRICT OF COLUMBIA: New Frontier Data, in partnership with Arcview Market Research and The Arcview Investor Network has released its 2016 Cannabis Investment Study. The study unveils insights from Arcview’s members and shows that despite the differences in regulations affecting businesses that touch cannabis and ancillary businesses that do not touch cannabis, the majority of investors (68%) are now interested in opportunities on both sides of the market.

“It is notable to see investors’ appetite is now broadening beyond just ancillary services where there has been less stigma and risk attached in the past. With the cannabis industry forecasted to grow at a compounded annual rate of 29% over the next four years, making it one of the fastest growing industries in the U.S., investors are now open to exploring any opportunity in the sector whether it touches the plant or not,” said New Frontier Data CEO and Founder Giadha DeCarcer.

“The Arcview Investor Network is, by far, the largest single source of deal flow in the fastest growing industry in America and the largest single group of investors placing capital in the sector. We were honored to be the focus of the first ever deep-dive study on actual investor’s attitudes and actions so far. There are many interesting insights in this report that could have far reaching impacts for entrepreneurs raising capital and other investors considering placing bets in this sector,” said Arcview Group CEO Troy Dayton.

When looking at the industry’s specific verticals, the highest proportion of investors were interested in ancillary commercial products (62%). Nearly half the investors (46%) were interested in non-flower products, reflecting the very strong growth in consumer demand for edibles and concentrates over the past few years. Cultivation facilities, which are the third most popular investor focus (38%), are especially attractive in markets that tightly limit the number of grower licenses. Other areas, including industrial equipment, hemp and consulting services, were of interest to a smaller group of investors, reflecting the more limited opportunities and the specialized business expertise required for those sectors.

Other key insights in this report include:

  • 65% of investors made their first investment in 2014 or later, and 71% expect to invest more in 2016 than they did in 2015.
  • Nine in ten investors are interested in medical and adult use markets, but only 36% are interested in CBD-only markets.
  • At the state level, the two markets investors are most interested in are California (57%) and Colorado (37%).
  • However, looking globally, 64% of investors expressed interest in the Canadian market, (a higher level of interest than was seen in any individual U.S. state market).
  • Preferred stock is the favored deal structure for 76% of the investors, followed by convertible debt at 73%. Public stocks were the least preferred investment approach.

The report is downloadable at https://frontierfinancials.com/investor2016 and www.ArcViewMarketResearch.com and can be ordered for $349.

Investors Should Be Encouraged by 3 New Marijuana Statistics From The “Greenest” State

OREGON: We can assume there were quite a few cheers when California passed Proposition 215 in 1996, becoming the first state to legalize marijuana’s medical use, but 2016 could go down as the most remarkable year for the marijuana industry to date.

Since this first approval 20 years ago, the marijuana industry has witnessed 24 states in total legalize medical marijuana, of which Pennsylvania became the latest just this past week. Additionally, four states – Colorado, Washington, Oregon, and Alaska – have legalized the use of marijuana for recreational purposes. The 2016 elections could result in a sizable boost to both figures as favorability to marijuana among the American public continues to rise. Gallup’s national poll from Oct. 2015 showed that 58% of its respondents favor the idea of nationwide legalization, whereas a CBS News poll conducted a year ago this month demonstrated that roughly five in six people want to see medical marijuana legalized.

But just as exciting for the industry is the opportunity that may be at hand for investors. Marijuana is among the fastest-growing industries in the U.S., with ArcView Market Research expecting the industry to grow at a brisk compounded annual rate of 30% between 2016 and 2020, ultimately reaching an approximate market value of $22 billion by 2020. Investment opportunities where industries can sustain a 30% growth rate for a half-decade or longer simply don’t come around very often, making marijuana a seemingly attractive investment opportunity.

Investment Firm That Specializes In Marijuana Businesses Opens Local Office

ILLINOIS: A private equity fund management firm that specializes in investments in marijuana-related businesses is opening a Chicago office.

First Harvest Financial said it’s opening an office at the Chicago Board of Trade Building, 141 West Jackson Blvd., to fund companies in the medical cannabis market.

“We are fortunate to be an early entrant in the legal cannabis capital markets, which allows us to seek and fund the best proven companies in the cannabis space,” said Kevin Gillespie of First Harvest Financial, in a statement.

Marijuana Will Be The Single Best Investment Idea Of The Next Decade: Todd Harrison

NEW YORK:  Call it a drug trade for investors. Todd Harrison, CEO and founder of Internet-based financial media company MInyanville, thinks cannabis “will be the single best investment idea for the next ten years.”

But while the public has watched recreational marijuana take off in Colorado this year, how can they profit from it as an investment theme? [Read more…]

Don’t Invest in Medical Marijuana Public Companies Just Yet

Nineteen states plus Washington DC have legalized medical marijuana with legislation pending in six more states. Washington and Colorado have even legalized the sale of marijuana for recreational purposes. In the wake of this trend, I was hired by a consortium of successful California medical marijuana growers to explore how they could create a public company, attract investors and sell shares; perhaps making their pot stock the next Apple.

After extensive research, which included retaining the top marijuana defense attorneys in California, the results were not encouraging.

The growers wanted to go public for a variety of reasons, but mainly to eliminate Federal, state and local raids and arrests, and destruction and confiscation of their property. Every grower I had met had spent time in jail.

Legalizing marijuana and welcoming it into the mainstream makes too much sense not to happen, but it is not going to happen today. First off, the anti-marijuana establishment has too much at stake. The Drug Enforcement Agency employs over 10,000 people and has an annual budget of $3 billion. The U.S. has spent over $1 trillion fighting the Drug War with over half of Federal inmates in jail on drug related charges. In 2009 alone, 1.66 million people were arrested on drug charges in the U.S., with 4 out of 5 merely for possession.

According to MarijuanaBusinessNews.com, based upon information from the Drug Enforcement Agency and other published sources, the domestic marijuana market is about $100 billion annually. This is about the same size as the domestic market for distilled alcohol – an industry that is regulated and pays lots of taxes. In 2012, federal tax revenues for alcohol were $10 billion, and there was an additional $6 billion per year in state & local tax revenues from the sale of alcohol. A 2008 study by a Harvard economist indicated that full legalization of drugs in the U.S. would result in a $44.1 billion savings from law enforcement costs. Considering both the tax revenues that would result from legalization and the costs of keeping drugs prohibited, legalization is inevitable.