Hashish Canada Weekly: Aurora CEO Goals for Capital Flexibility; Cronos brings pot merchandise from the laboratory to the market – Articles
According to Aurora Cannabis, the deal it bought offers “maximum flexibility” on the US push
It was time Aurora Cannabis Inc. signed another sales deal last week. The cannabis company wanted to capitalize on a recent surge in its stocks earlier in the year as a broad investor switched to cannabis.
Net income is an additional $ 137 million in proceeds to Aurora’s balance sheet, albeit with an additional dilution of the company’s stock. While some shareholders may be fed up with Aurora’s equity movements, the additional capital will give the company more flexibility as it searches for additional deals south of the border, its chief executive officer told BNN Bloomberg. One analyst estimated that this move will give Aurora approximately $ 700 million in capital for further investments.
“The reality is that our current funding consortium currently has a risk tolerance for us that is likely much more conservative than ours,” Miguel Martin said in a recent interview.
“We had to put ourselves in a position where if something happened, especially in the US, we could take it out and have maximum flexibility.”
What role Aurora will play in the U.S. cannabis market remains to be seen. The company has some activity there through the acquisition of CBD retailer Reliva LLC, but Martin sees the company’s expertise in plant genetics and cultivation as a potential asset to be used once it can operate in the U.S.
Martin refers to Canopy Growth Corp’s recent lawsuit. v. GW Pharmaceuticals PLC in the US for CBD extraction methods as a pivotal moment that could help determine the value of some cannabis genetics and intellectual property.
“Companies like Aurora and Canopy have some of the deepest genetic libraries in the world,” he said. “Someone will look like this [agricultural seed supplier] Monsanto. I’m not saying it’s us, but someone will look like Monsanto. “
But Martin adds that he believes if the US legalizes cannabis at the federal level – something that may take longer than some people are eagerly predicting – it will look much more regulated when the US Food and Drug Administration borrows the same playbook, that is used by Health Canada.
“I just think people are a little naive if they don’t believe that Canada and the Wild West will be very similar when it comes to federal cannabis regulation,” Martin said.
THE TOP STORIES OF THIS WEEK
Cronos is well on its way to bringing laboratory-grown cannabis products to market this year
Would you consume cannabis grown in the laboratory? The Cronos Group is confident that you will as they plan to bring their first products out of the laboratory containing cannabinoids made using biosynthesis, a technical process similar to brewing beer. This process could result in Cronos making cannabis with THC and CBD for pennies on the dollar. “We are awaiting licensing, but one of our biggest initiatives this year is to make sure we can actually get something to market,” Mike Gorenstein, executive chairman of Cronos, told BNN Bloomberg.
Horizons launches first ETF for psychedelics companies
Horizons launched the world’s first exchange-traded fund for psychedelics companies earlier this week. The ETF operator announced that its PSYK-listed Psychedelic Stock Index ETF traded on the NEO exchange on Wednesday to give investors access to a number of companies involved in potential psychiatric treatments with the drugs. Companies held in the ETF include Compass Pathways, supported by MindMed and Peter Thiel. The fund tracks the North American Psychedelics Index.
High Tide takes a look at US accession with the Smoke Cartel deal
Canadian cannabis retailer High Tide plays for the US market and announces plans to buy e-commerce accessories seller Smoke Cartel on Monday. High Tide will purchase Smoke Cartel for $ 8 million in cash and stock. After its closure, the company will operate the world’s two largest cannabis accessories e-commerce platforms. High Tide stated in a press release that the acquisition will give it access to the U.S. cannabis market once the country nears federal legalization. Smoke Cartel reportedly had sales of $ 7.4 million in 2020 with an EBITDA margin of 16 percent.
Senate drafts new law to legalize cannabis: Schumer
The U.S. Senate is in the process of drafting new cannabis laws that will bring together a number of existing bills to consolidate reforms during the current session of Congress, according to Marihuana Moment. Senate Majority Leader Chuck Schumer spoke to former NBA player Al Harrington, who owns cannabis company Viola Brands, and outlined the Senate’s plans to potentially legalize cannabis. While it’s not clear what other bills will be merged, it would likely look at the federal marijuana expropriation and funding effort to clear previous cannabis records.
The adult market in Arizona is off to a good start
Arizona’s recreational cannabis market got off to a rapid start three months after voters gave the green light to start adult sales, MJBizDaily reports. The branch trading office said initial adult sales in Arizona were two to three times the usual sales of medicinal cannabis with supposedly high-demand flower products. MJBizDaily found that demand is so strong that it can lead to product shortages. Nearly 100 pharmacies in the state are licensed for recreational sales, but Arizona is expected to issue 26 more licenses under a social equity program.
Analyst Call of the Week – Valens Company
Canadian cannabis extractor Valens Company has been downgraded by Raymond James analysts Rahul Sarugaser and Michael W. Freeman. The company has now been awarded an “underperform” rating and a 12-month price target of $ 2 per share. Raymond James calls the sales forecast for the fourth quarter well below the consensus estimates as well as the low sales from the acquisition of the edible manufacturer LYF Food Technologies. Valens announced that it will buy LYF for $ 24.9 million plus an additional $ 17.5 million if certain milestones are met. If you
More information about Valens can be found here.
|CANNABIS SPOT PRICE: $ 5.89 per gram – This week’s price is up 1.0 percent from the previous week, according to the Canada Cannabis Spot Index of the cannabis benchmark. This is equivalent to $ 2,097 per pound at current exchange rates.|
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