Rising High: An exclusive talk with cannabis CPG company SLANG » 12:2605/1305/13/21
SLGWF, ACB, CVSI, CTST, CGC, CRON, CANN, IGC, TLRY, TCNNF, ZYNE
In this edition of…
Aleafia Health reports Q1 revenue C$7.07M vs. C$14.6M last year » 07:4105/1105/11/21
Medical cannabis net…
Medical cannabis net revenue was $2.7 million, an increase of 95% over the prior year's quarter, in line with the previous quarter, and the Company's best Canadian medical cannabis revenue reported to date. Active registered patients increased to 17,637, an increase of 61% over the prior year's quarter Medical cannabis adjusted gross margin before FV adjustments improved for the second consecutive quarter to 53% Revenue per gram equivalent sold improved for the fourth consecutive quarter to $8.46 Adult-use cannabis net revenue was $1.7 million, an increase of 22% and 143% over the previous quarter and prior year's quarter respectively. Adult-use cannabis adjusted gross margin before FV adjustments improved substantially to 56%, from 31% and 30% in the previous quarter and prior year's quarter respectively. Adult-use cannabis revenue in the first 41 days of Q2 2021 has surpassed total adult-use cannabis revenue for Q1 2021. As previously disclosed in the Company's fiscal year 2020 MD&A, domestic wholesale was expected to decline, relative to Q4 2020. Repayment of $25.0 million of convertible debt reduces the Company's total debt by 43%. "This quarter saw us achieve important executional breakthroughs as we realized the exponential increase of our cannabis product portfolio. Likewise, as we benefit from greater scale, we are demonstrating substantial improvements in the profitability of our core adult-use and medical cannabis product sales, contrasting with the broader industry trend of price and margin compression," said Aleafia Health CEO Geoffrey Benic. "To further leverage product portfolio expansion, we have only just begun the deployment of our highly differentiated medical cannabis ecosystem through the trailblazing exclusive agreement with Unifor, Canada's largest private sector union. The ability to service a captive audience of union members who receive insurance coverage for medical cannabis is an important catalyst. We believe that this sets the table for a strong 2021, driven by repeatable, profitable sales in the medical, adult-use and international markets."
Aleafia Health completes clinic assets transaction with Myconic » 08:4105/1005/10/21
Aleafia Health is pleased…
Aleafia Health is pleased to announce that its wholly-owned subsidiaries, Canabo Medical Corporation and GrowWise Health Limited have closed a transaction with Myconic Capital Corp. whereby the Vendors sold certain of their respective clinic assets to Myconic. Additionally, Canabo has agreed to continue to staff and generally operate the clinics for the benefit of Myconic for a period of ten years, through a Clinic Services and License Agreement between Canabo and Myconic, ensuring that there will be no interruption to medical services offered to existing patients. Pursuant to an Asset Purchase Agreement, the Vendors sold to Myconic certain clinic leases, inventory, equipment and contracts, all relating to clinic operations. As consideration for the Purchased Assets, Canabo and GrowWise were issued and delivered an aggregate of 7,000,000 common shares in the capital of Myconic, issued at an issue price of $1.50 per share, in satisfaction of a purchase price of $10.5 million, on the closing of the Transaction. The Consideration Shares are subject to a contractual lockup whereby the Consideration Shares will be released and become freely tradeable in several tranches over a period of 12 months following closing. No finder's fees are payable as a result of the Transaction. As previously announced due to the COVID-19 pandemic, since March 2020 the Company's clinic network has conducted 100 per cent of cannabis patient consultations virtually and will continue to provide best-in-class cannabinoid therapy to patients under the virtual-only model through the clinics and other Purchased Assets licensed from Myconic. Under the Services Agreement, Canabo will provide such services as are necessary to maintain the operation of the Clinics in respect of medical cannabinoid education, therapy and treatment substantially consistent with past practice (the "Services"). Canabo will pay Myconic a licensing fee for the use of the Purchased Assets in connection with the Services as it will retain certain third party revenue generated from the performance of the Services. Additionally, Canabo will receive a fee from Myconic for performing the Services. Myconic intends to expand the services offered at the purchased clinics to include a broader scope of mental health treatments, including ketamine-assisted psychotherapy. In addition, Aleafia Health and Myconic have entered into a nomination rights agreement, which provides Aleafia with, among other things, the right to nominate or appoint one of the five members of Myconic's board of directors following closing and will be entitled to exercise this right at each of annual meetings of shareholders provided it continues to own, control or direct at least 1,000,000 common shares of Myconic.
Myconic Capital acquires clinical assets from Aleafia Health » 07:4605/1005/10/21
Myconic Capital announced…
Myconic Capital announced that the Company has executed and closed an asset purchase agreement for the acquisition of certain clinical assets as an investment from Canabo Medical Corporation, a wholly-owned subsidiary of Aleafia Health. The Company intends to expand the services offered through the network of 14 national medical cannabis clinics to include a broader scope of mental health treatments including intravenous ketamine treatments, ketamine-assisted psychotherapy and the administration of esketamine nasal spray. During 2020, the Clinics generated approximately $3.5 million in revenues for Aleafia, which has since increased on an annual run-rate basis due to providing treatments related to the mental health effects of the COVID-19 pandemic. Pursuant to the terms of the Purchase Agreement, Myconic will acquire certain assets relating to the Clinics in exchange for 7,000,000 common shares of the Company at a deemed price of $1.50 per common share of the Company as at the closing dates. The Consideration Shares are subject to a lock-up period of 12 months on issuance, with 5% of the Consideration Shares released at closing, one fourth of the Consideration Shares released at intervals of four, six and nine months and the remaining 20% released on the first anniversary following the closing of the acquisition, as required in the Purchase Agreement. In connection with the completion of the transaction, the Company has issued 500,000 common shares to an arm's-length third party that assisted in the facilitation of the Asset Purchase. To ensure the stability of the current cash flow stream being acquired, Myconic and Canabo have entered into a services agreement pursuant to which Canabo will provide the services necessary to maintain the current operations of the Clinics. In consideration for the Services, Myconic will pay a fee equal to Canabo's cost of performing the Services plus a 5.0% margin. The Services Agreement has a term of 10 years and shall be renewable at Aleafia's option. The Company's planned conversion of the Clinics is not expected to negatively impact the Clinics' existing revenue streams. Based on the Clinics' established stream of cash flows, the Company believes that the Asset Purchase can provide a clear path to profitability with relatively low-risk business opportunities available to build upon current operations. The Company intends to retain key team members to assist with the Clinics' management as Myconic seeks to expand the Clinics' offerings.
|Over a week ago|
Rising High: Tilray closes merger with Aphria, expects $81M of synergies » 11:3505/0605/06/21
ACB, CVSI, CTST, CGC, CRON, CANN, IGC, TCNNF, ZYNE, ALEAF, GTBIF, HITIF, INSHF, SNDL, APHA, TLRY
In this week's "Rising…
IM Cannabis announces common stock offering, no amount given » 18:4205/0405/04/21
IM Cannabis announces…
IM Cannabis announces that it has commenced an overnight marketed offering of the company's common shares on a best-efforts agency basis. The company may also issue to purchasers of Offered Shares, for no additional consideration, common share purchase warrants that would entitle the holder to purchase common shares of the company at a price and for a term to be determined in the context of marketing for the Offering. A.G.P./Alliance Global Partners and Roth Capital Partners have agreed to act as co-lead agents for the proposed Offering in connection with offers and sales in the United States and Roth Canada, ULC will act as the sole agent in Canada.
Slang Worldwide downgraded to Hold from Speculative Buy at Canaccord » 05:2705/0405/04/21
Canaccord Genuity analyst…
Canaccord Genuity analyst Bobby Burleson downgraded Slang Worldwide to Hold from Speculative Buy with a C$0.31 price target.
Aleafia Health secures Health Canada research license for trials » 07:3005/0305/03/21
Aleafia Health has…
Aleafia Health has secured a Health Canada Research Licence for its cannabis product manufacturing and innovation centre in Paris, Ont. The licence allows the Company to conduct human sensory analysis and palatability trials, evaluating the taste, touch, smell and sight of its growing portfolio of differentiated medical and consumer cannabis products. Aleafia Health is currently developing a number of new product formats and line extensions to complement its existing cannabis portfolio of dried flower, edibles, sublingual strips, soft gels, extracts, and vape cartridges. The Company intends to conduct sensory assessment studies consistently during product development, allowing human panels to evaluate objective product characteristics, and evaluate preference between comparable products.
Stem Holdings initiated with an Outperform at Noble Capital » 15:0104/2604/26/21
Earlier, Noble Capital…
Earlier, Noble Capital analyst Joe Gomes initiated coverage of Stem Holdings with an Outperform rating and $2 price target.
IM Cannabis Corporation trading resumes 09:4004/2604/26/21