CANOPY GROWTH ACQUIRES C3: Canopy Growth (CGC) announced Thursday that it has acquired German-based, Bionorica SE-founded C3 Cannabinoid Compound Company for EUR225.9M in cash. The company said the deal “furthers Canopy Growth's expansion into European markets with prescription medicines and gives the company immediate access to a wealth of knowledge and intellectual property that C3 has developed in its nearly 20 years of research and development into synthetic and natural cannabis medical products.” C3's primary medicinal offering is dronabinol, a pure chemical compound with standardized concentrations of tetrahydrocannabinol. C3 has a total of five medicines in the market and its commercial operations generated EUR27.1M in 2018. In addition, the Canopy Growth announced Monday that it secured a 308,000 sq. ft. facility on a 48-acre property in Kirkwood, NY for establishing its Hemp Industrial Park. Construction will commence this summer.
HEXO CORP NAMES INTERIM CFO: HEXO Corp. (HEXO) announced Wednesday that the nomination of Steve Burwash as interim chief financial officer. As previously disclosed by the company in January, the company has been working on a transition plan with current CFO Ed Chaplin since his departure was announced, and has been undertaking a search process for Chaplin's successor, seeking a candidate with global consumer packaged goods company experience. The company expects to conclude this process and hire a new CFO in the near future.
AURORA, ENWAVE ENTER LICENSE AGREEMENT: Aurora Cannabis (ACB) and EnWave announced Friday that the companies entered into a royalty-bearing commercial license agreement, providing Aurora with the exclusive rights to EnWave's patented Radiant Energy Vacuum drying technology for the production of cannabis materials in the European Union, excluding Portugal. Aurora has also secured exclusive license options for both Australia and South America, excluding Peru, exercisable pursuant to minimum REV machine purchase order requirements. In addition, Aurora has made a $10M strategic equity investment in EnWave. Aurora has purchased 5,302,227 common shares in the capital of EnWave at a deemed price of $1.886 per share. As consideration for the EnWave Shares, Aurora issued to EnWave 840,576 common shares in the capital of Aurora at a deemed price of $11.8966 per share. The EnWave Shares represent approximately 4.91% of the issued and outstanding common shares of EnWave on a non-diluted basis.
ANALYST CUTS TILRAY PRICE TARGET: In a Monday research note, Piper Jaffray analyst Michael Lavery lowered his price target for Tilray (TLRY) to $84 from $90 after trimming his Q1 revenue estimate by $9M to reflect more modest industry sales growth. However, the analyst expects "strong" industry growth long-term. Tilray is well positioned to be one of several likely winners, especially given its relationships in medical, in the U.S., and in beverages, Lavery said. While Tilray is less focused on near-term growth than its competitors, it looks well positioned for medium to long-term success, says the analyst, who keeps an Overweight rating on the shares.
ANALYST INITIATES CANNABIS STOCKS: Desjardins analyst John Chu initiated HEXO Corp, Canopy Growth, and Aurora Cannabis with a Buy rating and respective price targets of C$14, C$74, and C$16.50 as part of a broad Friday research note, saying the "hype" around legalization of adult-use cannabis in Canada remains strong in spite of "underwhelming" early months of sales. The analyst attributes the challenges to ramp-up, logistical and distribution issues, but expects investors to consider the opportunity as a "global" one. Chu believes that "major" consumer packaged goods companies as well as retailers should "help push cannabis and hemp into the mainstream."
OTHER CANNABIS STOCKS: Other publicly-traded companies in the space include Wayland Group (MRRCF), KushCo (KSHB), MedMen Enterprises (MMNFF), Cronos Group (CRON), Aphria (APHA), CV Sciences (CVSI), CannTrust Holdings (CNTTF), General Cannabis (CANN), Innovative Industrial Properties (IIPR), India Globalization Capital (IGC), ICC International Cannabis (KNHBF), Biome Grow (ORTFD), MediPharm Labs (MLCPF), Indiva (NDVAF), OrganiGram (OGRMF), Elixinol Global (ELLXF), Planet 13 Holdings (PLNHF), Khiron Life Sciences (KHRNF), Liberty Health Sciences (LHSIF), Origin House (ORHOF), Sunniva (SNNVF), Sproutly (SRUTF) and DionyMed Brands (HMDEF).
Canopy Growth
-0.72 (-1.45%)
Hexo
-0.39 (-4.99%)
Aurora Cannabis
-0.26 (-2.89%)
Tilray
-2.1 (-4.08%)
Wayland Group
+ (+0.00%)
KushCo Holdings
+ (+0.00%)
MedMen
+ (+0.00%)
Cronos Group
-0.5 (-2.95%)
APHA
+
CV Sciences
+ (+0.00%)
CNTTF
+
Trees Corporation
+ (+0.00%)
Innovative Industrial Properties
+1.13 (+1.32%)
IGC Pharma
+ (+0.00%)
ICC International Cannabis
+ (+0.00%)
ORTFD
+
Changed to MEDIF
+ (+0.00%)
Organigram
+ (+0.00%)
Elixinol Global
+ (+0.00%)
Planet 13 Holdings
+ (+0.00%)
Liberty Health Sciences
+ (+0.00%)
Origin House
+ (+0.00%)
Sunniva
+ (+0.00%)
Sproutly
+ (+0.00%)
HMDEF
+
INDIVA
+ (+0.00%)
Khiron Life Sciences
+ (+0.00%)