Cannabis and Hemp Industry Investment News

() () investee Harvest One () () has been granted a US patent for its proprietary Gellpell™ technology through the US Patent and Trademark Office.

Through HVT’s wholly-owned subsidiary SantiPharm Ltd, the company has received a patent for the technology in key markets including the United States, Canada, United Kingdom, Australia and countries of the European Union.

CBD capsules

Santipharm produces CBD capsules powered by proprietary Gellpell™ technology, which take a different approach to other products on the market.

Gelpell™ capsules embed the full spectrum hemp extract CBD in seamless gelatine microspheres.

’s () () net asset value (NAV) has outshined the benchmark Alternative Harvest ETF during the four months ended October 31 2020.

MMJ NAV generated a negative return of 14% which compared to a negative 17% for the benchmark return for the same period.

It is a different story for the cannabis industry following the US elections with a potential Joe Biden win causing a major rally in cannabis stocks.

Most US states have passed some form of medical or recreational cannabis legalisation and MMJ believes federal legalisation of cannabis is now a question of when and not if.

Australis Capital (CSE: AUSA- OTC: AUSAF) CEO Harry DeMott joined Steve Darling from Proactive to bring news that a leading independent international corporate governance analysis and proxy advisory firm, has recommended that Australis shareholders vote with current management at the upcoming Annual General and Special Meeting of Shareholders.

DeMott tells Proactive the firm noted that the board has taken steps to refresh itself, as “the management slate includes two recently appointed independent directors with skills and expertise that could be beneficial to Australis”

() (OTCMKTS:MMJJF) investee Harvest One Cannabis Inc () anticipates sales volumes, net revenues and adjusted EBITDA to improve this fiscal year due to a full year of new cannabis 2.0 derivative products sales in Canada, improvements in gross margin and a continued focus on reducing costs.

Harvest One’s initial Cannabis 2.0 product offerings include a selection of pain relief topical creams, oils and vape pen cartridges.

In April 2020, initial load-ins of the LivReliefTM cannabis-infused topical creams were shipped to Shoppers Drug Mart, making the company one of the first to market with infused topicals in Canada.

As well, Cannabis 2.0 offerings were listed in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, with the first shipments made in April 2020.

(CSE: AUSA-OTC: AUSAF) CEO Harry DeMott joined Steve Darling from Proactive to share details about a letter he sent to current shareholders addressing some of the things a group of dissident shareholders have said about management and the company.

DeMott also told Proactive about his vision for the company as they look to the future following the proxy vote.

's () (OTCMKTS:MMJJF) Mike Curtis tells Proactive's Andrew Scott they're going to focus on liquidity for the next six months and he reckons a good number of their companies will get liquid in the near term. MMJ recently revealed its shares had beaten the benchmark Alternative Harvest ETF in the month of September by rising 1% from 9.3 cents to 9.4 cents. The Alternative Harvest ETF declined about 18% during the same period from US$12.52 to US$10.39.

’s () shares outshined the benchmark Alternative Harvest ETF in the month of September by rising 1% from 9.3 cents to 9.4 cents.

The Alternative Harvest ETF declined about 18% during the same period from US$12.52 to US$10.39.

MMJ shares also did better than the broader market represented by the ASX 200 which declined about 4% from 6060.50 to 5815.90 during the month.

The shares are continuing to rise with a 17% gain in October from 9.4 cents to 11 cents currently.

() (OTCMKTS:MMJJF) shares surged 30% today after its investee () (OTCMKTS: HRVOF) revealed a number of management and board changes including a new president and interim chief executive officer.

Harvest One is nearing completion of its strategic review process and is taking steps to right-size its organisational structure.

Having led the company through its strategic review, Andy Bayfield will transition to the board of directors from his role as interim chief executive Officer and Gord Davey has been appointed as president and interim chief executive officer.

Transition to cannabis-focused consumer packaged goods company

Davey has more than 20 years’ experience in the consumer packaged goods (CPG) industry, having successfully led CPG teams and product launches at Coca-Cola, Red Bull and Puratos.

() (OTC:AUSAF) has found a new head man, the company announced Monday, in cannabis and entertainment industry veteran Harry DeMott.

DeMott is a founder and managing partner of Hamerle Investments, which targets cannabis, music and entertainment companies. He also co-founded the investment firm Raptor Ventures I LP, where he has been a general partner since 2011. 

He was also a founding investor of Columbia Care Inc (CSE:CCHW) (OTCQX:CCHWF), a multi-state cannabis operator, and previously served on the board of Pandora Inc from 2006 through its initial public offer (IPO) in 2011. All told, DeMott brings some 30 years of experience in the US investment community.  

READ: Australis Capital appoints cannabis industry veteran Sameer Kumar as independent director

"I am excited to take the reins at Australis during this unprecedented time of opportunity in the US cannabis business," DeMott said in a statement. "Having witnessed the opportunities firsthand as an investor and operator in the space, I truly believe that the time to invest in and build branded cannabis assets is now.”

() () has named cannabis industry veteran Sameer Kumar as an independent director.

Sameer was the former president and chief operating officer (COO) of VIOLA Brands, a lifestyle-based cannabis management services organization (MSO), which was founded by former NBA player Al Harrington.

READ: Australis Capital says CocoonPod self-service kiosks launched at first of eight THRIVE Cannabis Marketplace locations

Sameer expanded the brand into five markets, drove operational and sales efficiencies, which led to a doubling of production, a double-digit increase in sales and an expansion of margins, propelling VIOLA to become one of the largest live resin concentrate brands in Colorado and Oregon, by market share, highlighted Australis.

"AUSA continues to take decisive action to position the company for growth," said director Harry DeMott in a statement, adding that Sameer brought valuable external skills and perspectives.

"On behalf of AUSA and the other directors, I welcome Sameer and look forward to working with him as the company breaks with its recent past, focuses on the US cannabis market, and moves along the path to value creation," he said.

() (OTCMKTS:MMJJF) is focused on adding to its portfolio of investments in the cannabis value chain in Australia, Canada and Europe.

The addition of . () () (FSE:4WE) in September 2019 is proving to be valuable, with the company producing cannabis products for both the medicinal and adult-use markets in Canada across its three branches - StarSeed Medical Inc, Color Cannabis and CX Industries.

WeedMe announced a C$2.5 million capital raising in March 2020 which strengthened its balance sheet to support its growth plans.

StarSeed Medical Inc

The unique direct-to-consumer medical platform StarSeed Medical is the market leader in insured medical cannabis.

() (OTCMKTS:MMJJF) believes that the current market and industry sentiment surrounding cannabis companies create investment opportunities in Canada and other countries at attractive valuations and prices.

In its annual report, the company was particularly upbeat about opportunities to invest in listed and unlisted cannabis businesses in Canada and it was well-placed to do so.

Chairman Peter Wall said that FY20 had seen the company implement its investment strategy to recycle capital raised from the sale of in 2018/19 into investment opportunities provided by existing and new investees.

New investments

He said: “Significant new investments included existing investees Weed Me Inc and Embark Health Inc, whilst we also added new investees in , Sequoya Cannabis Limited and Bespoke A Limited Partnership.

() (OTCMKTS:MMJJF) investee Embark Health Inc has completed the acquisition of Axiomm Technologies Ltd effective from September 11.

The acquisition was completed by way of a three-cornered amalgamation to which 2278991 Alberta Ltd, a wholly-owned subsidiary of Embark, amalgamated with Axiomm to form a newly amalgamated company under the name Embark Nano Inc.

Embark has issued 2,152,257 common shares to the shareholders of Axiomm in exchange for all the issued and outstanding shares of Axiomm.

The Axiomm team will remain engaged with Embark Nano to continue the operations of Embark Nano in addition to taking on expanded roles within the Embark Health organisation.

’s () investee businesses are starting to capitalise on the growing demand for CBD (cannabidiol) and cannabis products in North America and Europe.

During August, MMJ’s material investments made significant announcements in terms of achievement of business objectives and funding their operations:

Harvest One Cannabis Inc () completed the sale of the Duncan Facility and its related operations in line with its transition to a cannabis-focused consumer packaged goods company.

MMJ believes that the HVT share price materially undervalues the opportunities provided by its existing portfolio as the Canadian investment market recovers and provides the opportunity for investors to acquire MMJ shares at an attractive price to their intrinsic value.

() () revealed on Thursday that its subsidiary Cocoon Technology has installed its CocoonPod self-service kiosks at the first of eight locations operated by one of Nevada’s largest cannabis retailers, THRIVE Cannabis Marketplace.

Cocoon Technology LLC, which manufactures consumer-facing kiosks as stand-alone units or multi-unit pods for consumers has put up the CocoonPod kiosks at THRIVE’s dispensary location on 2755 W Cheyenne Avenue, in North Las Vegas.

Las Vegas-based Australis Capital which was spun out from cannabis behemoth Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) in September 2018 as its US investment vehicle, said the launch is a “positive step” towards the company's continued commitment to its US-focused cannabis operations. Installations at the remaining seven locations are anticipated in the coming months, said the company.

READ: Australis Capital reaches settlement with Passport Technology, reveals departure of executive chairman Scott Dowty

() () announced that it has reached a settlement agreement with Passport Technology Inc regarding the termination of its previously announced acquisition agreement.

Las Vegas-based Australis Capital also revealed that the company’s executive chairman Scott Dowty would be stepping down from the board.  

READ: Australis Capital announces the termination by Passport Technology of pending acquisition agreement

Australis first announced on June 25 that it planned to acquire Passport Technology, which partners with casino operators to deliver funds to the casino floor through cash and cashless payment portals. Passport is in 72 casinos with 124 unattended kiosks in five countries. 

() investee Embark Health Inc is continuing its focus on delivering strategic priorities for the remainder of 2020 after making significant process in operationalising its Delta Facility.

B2B Solventless 2.0 product sales began in May of 2020 and have continued to scale throughout the North American summer months.

Embark has continued to lift capacity and production capabilities, expanding its customer network, increasing product innovation and submitting its Sales Licence Amendment and Provincial Product Sales Applications.

The company believes that focusing on these priorities will generate long-term shareholder value and accelerate the path to profitability.

() (OTC:AUSAF) has scheduled its annual general and special meeting of shareholders for November 17, the company announced Thursday. 

The company postponed the meeting after Passport Technology Inc, a casino fintech company that Australis has agreed to acquire, terminated the acquisition deal. In response, dissident shareholders submitted nominations to elect six new people to the board of directors, the company said.

Postponing the meeting gives the company and its shareholders time to process these recent events.

READ: Australis Capital announces the termination by Passport Technology of pending acquisition agreement

“Against the backdrop of a small group of dissident shareholders intent on leveraging the current challenges AUSA faces to take over the entire company, the board of directors is putting the interests of shareholders first by methodically charting the company's course for the foreseeable future,” Australis wrote in a statement.