The week in marijuana deals: MedReleaf goes for greenhouses, Nuuvera’s Maltese move
Last week saw Cronos Group Inc. list on the Nasdaq, becoming the first Canadian cannabis company to trade on a U.S. exchange. The move was seen by analysts as further legitimizing Canada’s young industry. At the same time, Maricann Group Inc. put something of a dent in the market’s credibility, revealing on Thursday that a $70-million dollar financing deal had been scrapped and two board members had resigned amid questions from securities regulators about potential insider trading.
Here are a few deals you may have missed last week.
MedReleaf goes for greenhouses
MedReleaf Corp. announced an agreement to buy one million square feet of existing greenhouse facilities in Exeter, Ont. and a further 95 acres of land nearby for $21.5 million and 225,083 common shares.
“The existing Exeter Facility, after retrofitting, will have production capacity of up to 105,000 kilograms of cannabis product annually with a first harvest anticipated by the end of 2018, subject to receipt of a licence from Health Canada,” the company said in a press release.
Nuuvera’s Maltese move
Nuuvera Inc. continued its international push, announcing on Tuesday the acquisition of a GMP certified pharmaceutical lab, ASG Pharma, in Malta. The tiny Mediterranean island is in the process of legalizing medical cannabis. As a European Union member, Malta is being eyed by several cannabis companies as a potential distribution hub.
Nuuvera also signed a 3,000-kilogram offtake agreement with Lesotho-based Verve Dynamics Inc., the company’s first publicly announced deal in Africa. Aphria Inc. is still in the process of acquiring Nuuvera and expects to close the deal by April, even though it significantly lowered its cash offer for Nuuvera two weeks ago.
Alberta-based Sundial Growers Inc. became the latest company to team up with Cannabis Wheaton Income Corp., raising $7 million from Wheaton Income to help fund the expansion of a facility in Olds, Alta. The business-to-business lending, however, comes with strict terms: Sundial has only six months to pay back Wheaton Income in cash or cannabis, or else pay a penalty to delay repayment by another six months. That financing is on top of $56-million debt financing Sundial announced it had secured from Crown corporation ATB Financial earlier in the week.
Aurora Cannabis Inc. announced on Tuesday that it had signed a supply agreement with Shoppers Drug Mart, becoming the fourth cannabis company to sign on with the pharmacy chain. Shoppers has applied for an ACMPR licence but is still waiting on approval from Health Canada before it can start selling medical cannabis.
TSX Venture-listed ICC Labs Inc. secured medical cannabis cultivation and production licences from the Colombian government this week. ICC Labs already had a licence for non-psychoactive cannabis plant production, but the new cultivation licence gives it the ability to grow high-THC products. The company also operates in Uruguay. “ICC Labs has become the first public Canadian company fully licensed for the production and distribution of cannabis in both Latin American countries that allow it,” the company said in a press release.
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