Cannabis Investor Webcast Recap: Cannabis Companies to Watch
Investor Webcast held its monthly Cannabis Investor Webcast last Thursday, and it included presentations from both private and publicly traded cannabis companies, as well as research consultants that cover the space. Participants gave a presentation and then answered audience questions.
The full webcast, which ran from 9:00 a.m. to 4:45 p.m. EST, will be made available on the company’s YouTube channel in about a week’s time. For those that can’t wait to find out more about the featured companies, here’s a recap of those included in the webcast and what analysts had to say about the industry. The Investing News Network also had the chance to speak to Derwin Wallace, founder of Investor Webcast, about why he started the company and the various other webcasts it has.
“I thought, why doesn’t somebody create something using technology so CEOs don’t have to travel around and take time off work to meet with investors. That’s when I came up with the idea for Investor Webcast, to make it easier for CEOs and CFOs to connect with investors,” Wallace explained. “We do it in all industries — we started off with cannabis, but we have metals and mining, energy, small cap, micro cap. We are going to spread it out to 20 industries and four market caps.”
Here is a rundown of some of the entities that presented at July’s Cannabis Investor Webcast.
NEMUS Bioscience (OTCMKTS:NMUS)
The first presenter on the roster was Nemus Bioscience, a biopharmaceutical company that’s partnered up with the University of Mississippi for the development and commercialization of drugs derived from cannabis extracts and cannabinoids. The partnership is unique in that the university is the only US entity authorized to cultivate cannabis on behalf of the federal government.
The company’s most recent focus is on the medical utility of cannabinoids as anti-infective therapeutics. “While the company remains focused on bringing forward our leading candidate molecule, a pro-drug of THC, for the management of glaucoma, the anti-infective potential of botanicals, especially the cannabinoids, should not be ignored,” Nemus CEO John Hollister said in a press release. “We are launching these initial studies to assess our target molecule portfolio against methicillin-resistant Staphylococcus aureus (MRSA).”
Affinor Growers (CSE:AFI)
The second presenter was a company focused on helping solve the world’s food-security problems using its patented vertical farming technology. According to the company, a vertical farm the size of one square block that is 30 stories high could produce the same amount of food as a farm that is 24,000 acres in size.
Affinor’s flagship greenhouse, which is located in Quebec, will be used to grow strawberries and other crops once constructed. The company also owns 49 percent of a medical marijuana dispensary and grower in Washington as well as 49 percent of Herbal Analytics, a full-service analytical and consulting laboratory for natural product drug development, also located in Washington.
Chardan Capital Markets
Chardan is an investment banking firm that focuses on micro-, small- and mid-cap markets and offers a variety of services, such as M&A advisory, strategic advisory and equity research. Considering the controversy that remains around the medical marijuana industry, finding banking firms that venture into that territory hasn’t been an easy task. However, Chardan recognizes the value of the growing industry, which increased by 74 percent in 2014 from the previous year and is expected to be worth $11 billion as soon as 2019, as per The Huffington Post.
This Colorado-based company doesn’t produce or distribute cannabis, but instead aims to provide cannabis entrepreneurs and investors with the knowledge, expertise and capital to explore the emerging industry. AmeriCann is also developing the Denver Cannabis Center in Colorado, a facility that will include greenhouse and indoor cultivation areas, a dispensary, a research facility and an infused product production facility. The company plans to build similar facilities elsewhere once more states allow for and regulate cannabis.
Kaya Holdings (OTCMKTS:KAYS)
Kaya produces, distributes and sells cannabis products, including baked goods, at its KAYA Shack™ MMD dispensaries. According to its website, the company is “the first fully reporting US public company to own and operate a vertically integrated seed-to-sale legal marijuana enterprise in the United States.” Its first KAYA Shack was opened in Portland in July 2014.
Just last month, Kaya received marijuana license approval for its second KAYA Shack location, which will also be located in Oregon.
Naturally Splendid Enterprises (TSXV:NSP,OTCMKTS:NSPDF)
Naturally Splendid is slightly different in that it uses Cannabis sativa, industrial hemp, and cannabinoids to create a variety of natural healthcare products. The company is currently focused on its three product lines: HempOmega®, NATERA™ and PAWSITIVE FX™. The first of the three is a dry powder supplement made from hemp oil that offers a vegetarian source of Omega 3 and 6. Then there is NATERA, which comes in seed and powder form and naturally contains vitamins, minerals and antioxidants. Finally, PAWSITIVE FX™ is the company’s pet-care line; it uses hemp seed oil and other organic ingredients in its products.
Technical420, the second research and analysis company featured on the Cannabis Investor Webcast, is solely focused on cannabis stocks, providing independent, unbiased recommendations to clients through newsletters, reports and tailored watch lists. The company’s founder, Michael Berger, is a former analyst at Raymond James who ventured out to focus on the cannabis industry in 2012. He said that at the moment he is very bullish on how cannabis as it relates to the pharmaceutical and biotech sectors “because there is so much that can be done on that end. It’s amazing what you can do with cannabis and the diseases that it can treat. So that is one of the sectors I am very bullish on at the moment.”
One company in particular on his radar is Zynerba Pharmaceuticals, a private specialty pharmaceutical company that has just registered with the US Securities and Exchange Commission for a proposed initial public offering. If the offering goes through it will be just the third cannabis-related company to trade on the NASDAQ.
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
World Class Extractions Provides Corporate Update
World-Class Extractions Inc. (CSE:PUMP) (FRA:WCF) (OTCQB:WCEXF) (the “Company” or “World-Class”), is pleased to provide a corporate update
Update regarding Pineapple Express Delivery
Pineapple Express Delivery Inc. (“Pineapple Express Delivery“), a company in which World-Class has a controlling interest, offers compliant and secure delivery of controlled substances and regulated products, including medical and recreational cannabis delivery in Ontario, Manitoba, and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan.
Pineapple Express Delivery’s September revenues total $767,545 (unaudited). B2B monthly revenue has more than doubled since April 2020 with gross margin of 52%, with revenue from its B2C segment over the last 4-months remaining relatively consistent, with gross margin of 30%. B2B deliveries continue to increase month over month with over 415,000 deliveries completed to date, and retail deliveries expanding to 6-days per week, 2-3 runs per day. Within the province of Ontario, Pineapple Express Delivery offers same-day cannabis delivery to 17 jurisdictions and offers 3-day delivery to 31 jurisdictions. Pineapple Express Delivery will soon be launching in three (3) new jurisdictions in Ontario and working to launch alcohol delivery to service the Greater Toronto Area (GTA).
Randy Rolph, CEO & Founder of Pineapple Express Delivery, stated: “I am very proud of Pineapple Express Deliveries achievements and growth so far this year. In Ontario, we have increased to over 150 drivers and 5 delivery hubs. In October 2020, our drivers logged 375,00 kms (versus 80,000 kms in January 2020) with 268 new Forward Sortation Areas (FSA) added (an FSA is a geographical unit based on the first three characters in a Canadian postal code). In addition, Pineapple Express is seeing the rise in demand for same-day delivery of all types of goods and is looking to integrate a new brand under Pineapple Express Delivery to capitalize on this demand.”
Rosy Mondin, CEO of World-Class, stated: “We are pleased with our investment in Pineapple Express and proud of their successes, achieving a monthly order volume of
54,000 orders (up from
6,500 in January 2020), with a 99.90% On-Time delivery success rate. With the continuing potential for increases in COVID-19 lockdown measures and with winter coming, coupled with the continuing growth in its B2B sector, Pineapple Express Delivery anticipates that its revenues will increase over the coming months.”
Update regarding Cobra Ventures & HydRx Farms Debenture Investment
The Company recently announced that it holds a 50% equity interest in Cobra Ventures Inc. (“Cobra“), which acquired an 8% Senior Convertible Debenture of HydRx Farms Ltd. o/a Scientus Pharma (“HydRx“) in the principal amount of $11,500,000 plus accrued and unpaid interest and charges, from Aphria Inc. (a non-related party) and originally due August 14, 2019 (the “Debenture“). The purchase price for the Debenture was $5,000,000.
World-Class has loaned Cobra $2,500,000, which is secured by the Debenture, along with other secured debt obtained by Cobra. As a senior loan instrument, Cobra has the right to make demand for repayment at any time. This loan obligation is secured against all assets of HydRx, including its cannabis production facility and land located at 1130 Champlain Court, Whitby, Ontario.
Rosy Mondin, Director and CEO of World-Class, has been also been appointed to the board of directors of HydRx as the parties continue to review HydRx’s operations with a view to streamline and continue operations as a going concern.
The Company further announces that Donal Carrol has resigned from the board of directors of the Company. The Company would like to thank Mr. Carroll for his contributions to the Company and wishes him well in his future endeavours.
World-Class is an innovation-driven company with a principle focus on the rapidly evolving cannabis and hemp industries. Through its subsidiaries Soma Labs Scientific Inc. and Greenmantle Products Inc., World-Class deploys and manages custom-built extraction centres utilizing its custom systems, technology, and processes to efficiently produce high-quality cannabis and hemp concentrates and end-products. In addition, through its subsidiary Pineapple Express Delivery Inc., the Company offers compliant and secure delivery of government-regulated products, including medical and recreational cannabis in Ontario, Manitoba, and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals, and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events, or results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise unless required by law.
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World Class Extractions
Aurora Cannabis Closes Previously Announced Upsized Underwritten Public Offering
Aurora Cannabis Inc. (the “Company” or “Aurora”) (NYSE | TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, announced today the closing of its previously announced overnight marketed public offering (the “Offering”) of units of the Company (the “Units”) for total gross proceeds of US$172,500,000. The Company sold 23,000,000 Units at a price of US$7.50 per Unit, including 3,000,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option.
Each Unit is comprised of one common share of the Company (a “Common Share”) and one half of one
common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant is exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 40 months following the closing date of the Offering at an exercise price of US$9.00 per Warrant Share, subject to adjustment in certain events.
BMO Capital Markets and ATB Capital Markets acted as the bookrunners for the Offering.
The Company plans to use the net proceeds of the Offering to fund growth opportunities, working capital, and other general corporate purposes.
In connection with the Offering, the Company filed a prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated October 28, 2020 (the “Base Shelf Prospectus”) with the securities commissions or similar securities regulatory authorities in each of the provinces of Canada, except Quebec, and with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s registration statement on Form F-10 (the “Registration Statement”) under the U.S./Canada Multijurisdictional Disclosure System. The Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement contain important detailed information about the Company and the Offering.
Copies of the Prospectus Supplement and the Base Shelf Prospectus are available on SEDAR at www.sedar.com and copies of the Prospectus Supplement and the Registration Statement are available on EDGAR at www.sec.gov . Copies of the Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement may also be obtained from BMO Capital Markets by contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905) 791-3151 Ext 431 or by email at [email protected] or from BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at (800) 414-3627 or by email at [email protected] . Copies of such documents may also be obtained from ATB Capital Markets Inc., Attn: Gail O’Connor, 410-585 8th Ave SW, Calgary, Alberta, T2P 1G1, (403) 539-8629 or by email from [email protected] .
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company’s brand portfolio includes Aurora, Aurora Drift, San Rafael ‘71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva CBD. Providing customers with innovative, high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website at www.auroramj.com .
Aurora’s common shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.
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|Michelle Lefler||ICR, Inc.|
|VP, Communications & PR||Investor Relations|
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Forward Looking Statements
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (” forward-looking statements “). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements made in this news release include statements regarding the expected use of proceeds of the Offering. These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward looking statements are based on the opinions, estimates and assumptions of management in light of management’s experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the ability to maintain SG&A costs in line with current expectations, the ability to achieve high margin revenues in the Canadian consumer market, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including the risks associated with: entering the U.S. market, the ability to realize the anticipated benefits associated with the acquisition of Reliva, achievement of Aurora’s business transformation plan, general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition, the effects of and responses to the COVID-19 pandemic and other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual information form dated September 24, 2020 (the “ AIF ”) and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC’s website at www.edgar.gov , any of which could cause the Company to change its use of proceeds from the Offering. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
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Harvest Health & Recreation Inc. Announces Divestiture of Arkansas Assets
Harvest Health & Recreation Inc. (“Harvest”) (CSE: HARV, OTCQX: HRVSF), a vertically integrated cannabis company and multi-state operator in the U.S., has completed the divestiture of its dispensary and cultivation assets in Arkansas .
Natural State Wellness Dispensary, LLC and Natural State Wellness Enterprises, LLC, which own and operate a medical dispensary and cultivation facility, were sold on Friday, November 13, 2020 . The total purchase price paid by the buyer was $25 million . Following repayment of approximately $1.9 million in loans associated with the assets, the portion of net proceeds received by Harvest for its interests totaled approximately $12.9 million in cash. Harvest retains ownership of the real estate for the dispensary and cultivation facilities.
“We are pleased to have completed this divestiture as part of our strategic plan to streamline our business and focus on core markets,” said Chief Executive Officer Steve White . “The additional cash on our balance sheet adds flexibility at a time when we are pursuing growth opportunities such as recreational sales in Arizona .”
Following the completion of this divestiture, Harvest maintains its 2020 guidance of greater than $225 million in revenue.
About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona , Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com
This press release contains statements which constitute “forward-looking information” within the meaning of Canadian and U.S. securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Harvest with respect to future business activities. Forward-looking information is often identified by the words “may,” “would,” “could,” “should,” “will,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “expect” or similar expressions and include information regarding: (i) expectations regarding the size of the U.S. cannabis market, (ii) the ability of Harvest to successfully achieve its business objectives, (iii) plans for expansion of Harvest, and (iv) expectations for other economic, business, and/or competitive factors. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects Harvest management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Harvest believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the effects of the weather, natural disasters, and health pandemics, including the novel coronavirus (COVID-19), on customer demand, Harvest’s supply chain as well as its consolidated results of operation, financial position and cash flows, the ability of Harvest to develop Harvest’s brand and meet its revenue, growth and profitability objectives, the ability of Harvest to locate and execute acquisitions of companies, properties or assets that are accretive to its revenue and business objectives, the ability of Harvest to obtain and/or maintain licenses or other contractual rights to operate in the jurisdictions in which it operates or in which it expects or plans to operate; changes in general economic, business and political conditions, including changes in the financial markets; and in particular in the ability of Harvest to raise debt and equity capital in the amounts needed and at the costs that it expects; adverse changes in the public perception of cannabis; decreases in the prevailing prices for cannabis and cannabis products in the markets that Harvest operates in; adverse changes in applicable laws; or adverse changes in the application or enforcement of current laws, including those related to taxation; and increasing costs of compliance with extensive government regulation. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Although Harvest has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this press release is based on Harvest’s current estimates, expectations and projections, which Harvest believes are reasonable as of the current date. Harvest can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking statements, which are based on the information available as of the date of this press release. Forward-looking statements contained in this press release are made of the date of this press release and, except as required by applicable law, Harvest assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements contained in this press release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. In this regard, certain financial information contained herein has been extracted from, or based upon, information available in the public domain and/or provided by Harvest. In particular historical results should not be taken as a representation that such trends will be replicated in the future. No statement in this press release is intended to be a profit forecast. While the information contained herein is believed to be accurate, Harvest, its affiliates, and their respective stockholders, members, partners, directors, managers, officers, employees, agents, advisors, and other representatives each expressly disclaims any and all liability for representations, expressed or implied, contained in or omitted from this press release or any other written or oral communications transmitted to any interested party in the course of its evaluation of Harvest. Nothing contained herein is or shall be relied upon as a promise or representation by Harvest or their affiliates or any of their respective stockholders, members, partners, directors, managers, officers, employees, agents, advisors, or other representatives as to the past or future performance of Harvest. Only those particular representations and warranties made by Harvest in a written definitive agreement, when and if one is executed, and subject to such limitations and restrictions as may be specified in such agreement, shall have any legal effect .
This forward-looking information may be affected by risks and uncertainties in the business of Harvest and market conditions. Please see the heading “Risk Factors” in our Canadian filings, and the heading “Item 1A. Risk Factors” in our Form 10, filed with the U.S. Securities and Exchange Commission on November 5, 2020 , as well as our subsequent filings in the United States and Canada , for a discussion of material risk factors that could cause actual results to differ materially from the forward-looking information. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Harvest has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Harvest does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.
SOURCE Harvest Health & Recreation Inc.
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Investor Webcast held a Cannabis Investor Webcast last Thursday. It included a line up of presentations from both private and publicly traded cannabis companies to watch, as well as research consultants that cover the space.