Dai Truong's Cannabis Newsletter - Issue #19
“The Board decided today, and I agreed, my turn is over. Mark has been my partner since this Company began and has played an integral role in Canopy’s success,” Linton said in a statement. “While change is never easy, I have full confidence in the team at Canopy – from Mark and Rade’s leadership to the full suite of leadership – as we progress through this transition and into the future.”
California's track-and-trace system slowly spreading through marijuana supply chain, but hiccups remain
The marijuana inventory tracking system for the world’s largest cannabis market in California isn’t fully online, despite its rollout in January. But it’s getting there.
Point-of-sale software systems used by retailers that isn’t set up to interface properly with CCTT, or account for the lack of data from supply-chain points of origin, such as cultivators or manufacturers still operating on temporary licenses.
A central issue is that the underlying program that supports the inventory tracking system, Metrc, wasn’t designed with California’s complicated supply chain in mind. It’s more in line with simpler state systems such as Colorado’s, which doesn’t require mandatory distribution.
Jay-Z will join the California-based cannabis company Caliva as Chief Brand Strategist as part of a new multi-year partnership. The rapper will help the company with creative decisions, outreach efforts and strategy, though a big component of his role will focus on the social justice issues surrounding legalization.
California cannabis manufacturer Apex Extractions announced on Tuesday that it is launching a new subscription program that will deliver top-quality cannabis concentrates directly to California consumers. The Apex Fresh Club, as the program is known, will send a selection of three concentrates with cannabis sourced from some of California’s finest cultivators to a discerning clientele.
Riverside County issues first 69 permit recommendations for cannabis businesses in unincorporated areas
More than a year after recreational cannabis became legal in California, Riverside County has moved forward with its first permit recommendations for cannabis businesses in the unincorporated areas throughout the county.
On July 2, the county Board of Supervisors approved a list of recommendations for 50 permits for cannabis cultivation and 19 permits for cannabis retail. With county approval, the 69 businesses — which may operate in areas including Anza and Mecca — can start seeking state licenses to operate.
Beleaguered cannabis grower CannTrust shipped some unlicensed medical cannabis overseas. The overseas shipments of unlicensed product raise questions about CannTrust’s own quality controls and Health Canada’s overall capability to monitor medical cannabis exports, according to experts.
The province plans to issue 42 new licences for private-sector retailers who successfully pre-qualify to be part of a new lottery system later this month. The remaining eight licences will be allocated for outlets in First Nations communities. There are currently 22 cannabis stores operating in Ontario with three retailers still awaiting final approval to obtain their licences, according to the Alcohol and Gaming Commission of Ontario (AGCO).
“The completion of our new cultivation facility marks an incredible milestone for our Alternative Medicine Association (AMA) subsidiary”, said Company CEO Mr. Chris Rebentisch. “We are extremely pleased to be able to move into our new facility and begin operations. This is a 5x increase in flower cultivation to fuel the growth of our proprietary AMA branded products and deliver on our white label contracts. Securing a consistent supply of raw materials will have a positive effect on our margins and future revenues and will enable us to attract additional partners.”
The 65-year-old became a gentleman weed farmer a few years ago after Oregon legalized cannabis use. Now he wants Belushi Farms to go national, using the well-known Blues Brothers brand and building a serious company. He grows and sells products under other brand names in Oregon.
When it comes to cannabis-infused products for women’s health, such as suppositories and tampons, some people see the value while others don’t.
DT: Other than Foria, Quim or Cosmic View - what other brands are out there? Let me know of some others we should be looking at.
Organigram Announces Expanded Development of Rapid-Onset Nano-Emulsification Technology for Cannabis Beverages
In anticipation of the legalization of adult use recreational cannabis edibles in Canada, as well as consumer demand for cannabis-infused beverages, Organigram Holdings Inc. (TSX VENTURE: OGI) (NASDAQ: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, has developed a proprietary nano-emulsification technology that will allow for the production of both liquid and powdered cannabinoid products.
Green Growth Brands to Create First "360 Degree" Cannabis Company Through a Combination with Moxie for $310M
The combination of Moxie and GGB would create one of the first cannabis companies to provide consumers a comprehensive product offering, including both CBD and tetrahydrocannabinol (THC) product lines and distribution that runs from mainstream retail to cannabis dispensaries, all led by management with decades of expertise and credibility.
Alberta-based licensed producer Sundial Growers has filed its IPO registration in an attempt to become the second Canadian LP to list solely on the NASDAQ, following Tilray’s (TLRY) listing a year ago. The proposed $100M offering doesn’t yet have pricing information, but the company has reserved the ticker “SNDL”. Underwriters include Cowen, BMO and Barclays. The company, which received its license in June 2017, has three categories of products, “Heal, Help and Play” and grows a select number of strains that are marketed by characteristics and effects.
The Company intends to use the net proceeds for working capital and general corporate purposes and to primarily finance the continued build-out of SOL Global’s robust hemp and CBD strategy via Heavenly Rx Ltd. and the build-out and acquisition of additional assets in Florida , Michigan and California.
Harvest Health & Recreation Acquires Only Licensed Dispensary in Casa Grande, Arizona - Leaf Life.
Jushi Holdings Inc. (NEO: JUSH.B), a globally-focused, multi-state cannabis and hemp operator, announced it has signed a definitive agreement to acquire its first operational adult-use and medicinal dispensary in San Diego. The purchase price is ~$12M, of which 50% is paid in cash and 50% is paid by way of issuance of certain 8% secured notes to the sellers maturing after 18 months, and convertible at the option of the holders on or prior to the maturity date into Subordinate Voting Shares of the Company, at a conversion price based on a specified historical volume weighted average trading price of the Shares on the NEO exchange, subject to a minimum of US$2.30 and a maximum of US$2.875 per Share.
Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) announced the Company has entered into a definitive asset purchase agreement to acquire a 100% ownership interest in ShowGrow’s Long Beach, California dispensary for $6.7M, a settlement agreement to acquire a 60% ownership interest in ShowGrow’s San Diego, California dispensary for $2M, and a lease assignment (the “Lease Assignment”) on the San Diego operation.
SLANG Worldwide Inc. (CNSX: SLNG) (84S.F), (“SLANG”), a CPG company with a robust portfolio of brands distributed across 2,600 stores in 12 US states, announced that its RESERVE line of vaporizer cartridges is now on sale in the State of Florida through Trulieve Cannabis Corp. (CSE: TRUL & OTC: TCNNF) (“Trulieve”).
Neptune Wellness Solutions (NASDAQ: NEPT) (TSX: NEPT) announced the appointment of Michael Cammarata, a successful entrepreneur and innovator in the wellness industry, as its CEO and Member of the Board of Directors. After over 4 years, Jim Hamilton has stepped down from his role as CEO and Director but will remain as an advisor to the Board.
36-Year CPG Executive Brings Extensive Experience in Identifying, Developing and Commercializing Breakthrough Technology for Consumer Goods Sector from Mondelēz International, Nabisco, Pillsbury, and Procter & Gamble.
Tilray, Inc. (NASDAQ:TLRY) announced the expansion of its European leadership team with the appointment of Arne Wilkens as Vice President, Business Expansion, Europe; José Tempero as Medical Affairs Director, Europe; Maike Gerlach as Vice President, Marketing, Europe; and Nadja Frenzel as Vice President, Commercial Development, Europe and Natalie Bucceri as Director, Global Portfolio Expansion.
Sonny Newman is the founder of Silver State Relief and Silver State Cultivation in Nevada, and has several other companies in electronics, manufacturing, electronics distribution, real estate development and an investment company. Mr. Newman was the sole owner of the Silver State companies when they were purchased by C21 Investments earlier this year and is today the largest shareholder of C21 Investments holding approximately 15.3% of the outstanding shares.