The Canadian stock market was closed for Victoria Day yesterday and today, three marijuana stocks reported several significant developments. We have highlighted these developments below to help you focus on important trends sweeping the industry.
New Cannabis IPO to Raise $50+ Million
One of newest and most differentiated Canadian cannabis producers, Cannabis Wheaton (CBW.V: TSX Venture) (KWFLF) announced a $50 million private placement and engaged a syndicate of agents co-led by Eight Capital and Canaccord Genuity.
The firm is selling special warrants and convertible debenture units and will use the net proceeds for general corporate purposes, for the financing of its streaming partners pursuant its streaming agreements, and for general and administrative expenses.
Cannabis Wheaton is off to a great start after the company reported that MMCAP International Inc. SPC intends to subscribe for up to $20,000,000 of the offering. The offering is expected to occur on June 21st and the company granted the underwriters an over-allotment option which increases the offering to $57.5 million.
Cronos’ Breaks Ground on a Brand New 315,000 sq. ft. Facility
Today, Cronos Group’s (MJN.V: TSX Venture) (PRMCF) wholly-owned licensed producer, the Peace Naturals Project broke ground on a 315,000 sq. ft. expansion that includes a 286,000 sq. ft. production facility, a 28,000 sq. ft. greenhouse, and an additional 1,200 sq. ft. extraction lab.
Upon completion, the facility is expected to be the largest purpose-built indoor cannabis production facility in the world. The facility is expected to complete by November and fully operational by summer 2018. This expansion will bring Peace’s total estimated production capacity to 40,000 kg a year.
The facility is designed to GMP certification standards and will include:
- An area for proprietary genetic breeding
- Pharma lab for cannabinoid and terpene extraction, identification, and formulation
- R&D space for analyzing metabolite enhancement and new lighting technologies
- Tissue culture laboratory
- Industrial-grade kitchen
- Processing infrastructure that supports production from other facilities
Cronos is breaking ground on the greenhouse today and the facility will be used to collect data and implement advanced cultivation techniques that can be replicated at its other production facilities. The company’s extraction lab will augment capabilities in both purification and recombination of cannabinoid compounds to create innovative formulated products. The greenhouse and lab are expected by the end of the summer.
Aurora to Supply Resources to Support a Groundbreaking Legal Case
CFAMM announced that Aurora has committed financial and other resources to support Gordon Skinner’s defense in what might be a potentially precedent-setting medical cannabis insurance coverage case. CFAMM has been providing strategic support to Skinner and Aurora’s resources will ensure that Skinner can defend his case.
On January 30th, the Nova Scotia Human Rights Commission ruled that the Board of Trustees of the Canadian Elevator Industry Welfare Trust Fund committed discrimination by denying coverage for the medical cannabis Skinner uses to manage chronic pain and other conditions resulting from a work-related injury that left him permanently impaired. Following the decision, the Board of Trustees filed an appeal against Skinner and the Commission in the Nova Scotia Court of Appeal. The appeal has been set for October 2, 2017.
Founded in 2014, Canadians for Fair Access to Medical Marijuana (CFAMM) is a federal non-profit, patient-run organization dedicated to protecting and improving the rights of medical cannabis patients. CFAMM’s goal is to enable patients to obtain fair and safe access to medical cannabis with a special focus on affordability, including private and public insurance coverage.
We want to commend Aurora on its commitment to improving the cannabis industry and supporting patients in need. This decision may have a lasting impact on the sector and could change the landscape of the Canadian medical cannabis industry.
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