Cannabis and Hemp Industry Investment News

() (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. 

() () announced on Tuesday that Passport Technology Inc has informed it that the company has terminated a previously announced acquisition agreement.

“The terms of the acquisition agreement require Passport to pay a break fee and the company's demonstrated expenses,” Australis Capital said in a statement.

On June 25, Las Vegas-based Australis first announced that it planned to acquire Passport Technology, which partners with casino operators to increase gaming revenue by delivering funds to the casino floor through cash and cashless payment portals. Passport is in 72 physical casinos with 124 unattended kiosks throughout five countries.

Passport would have complemented Australis’ existing fintech assets – Cocoon Technology and Paytron – to leverage purpose-built technology for highly regulated industries with a growing need for unattended kiosk solutions with a global market expected to surpass $46 billion by 2026. 

Australis Capital Corp () () noted that its pending acquisition Passport Technology has launched its cashless solutions at two new Alberta-based casinos.

Passport will launch its ACM Owl solutions at Cash Casino Calgary and Cash Casino Red Deer. The firm also said it is debuting its POSpod kiosks, which are custom-built with unique features designed for the demands of the high-traffic casino environment. The POSpod line of self-service kiosks includes freestanding, countertop and new mobile cashier enhancements.

READ: Australis Capital to acquire casino payment platform Passport Technology, leveraging fintech assets globally

Passport’s ACM Owl technology provides ATM services that combine transaction speed, maximum throughput and local support within the kiosk. The firm’s CashValet PCI-DSS Level 1, P2PE-certified solution, and cloud-based application allows for immediate and maximum approval amounts and supports real-time reporting of the transaction cycle.

Casino guests also get dynamic fee structures, free play credits, self-exclusion options, and numerous security and regulatory compliance features.

() () said it had amended some of the terms of its planned acquisition of Passport Technology Inc.

The move is designed to reflect 16 additional contracts that Passport has signed since Australis announced the acquisition in June.

As a result of the new contracts with Gateway Casinos in British Columbia and Alberta, Passport revised its revenue forecast to $12 million in 2021 and operating income of $4 million.

READ: Australis Capital to acquire casino payment platform Passport Technology, leveraging fintech assets globally

The new terms stipulate that Passport will receive $2 million in Australis and shares if it achieves over $8.5 million in revenue in 2021 and an additional $2 million in shares of both companies if revenue surpasses $9.5 million the same year, as well as 25% of revenue if Passport’s EBITDA, or earnings before interest, taxes, depreciation, and amortization is over $3 million.

() () has acquired 2.9 million shares in US multi-state operator (), the group said in a release on Friday.

The Vancouver-based company acquired the shares through the conversion of unsecured debentures valued at $1.6 million at a price of C$0.55 per share.

Australis converted the debentures on July 1, 2020, as part of a July 2019 conversion agreement. The debentures were acquired in a private placement from November 2018.

READ: Australis Capital pleased with shareholder response to pending Passport Technology acquisition

In consideration for the conversion agreement, Body and Mind paid Australis $148,339.72 as an advanced payment of interest payable under the debentures for the period beginning November 2, 2018, and ending July 1, 2020.

Passport Technology Inc, a provider of cash access services to casinos, announced Thursday that it had expanded its services, by adding 16 casinos in British Columbia and Alberta to its platform.

This is on top of its 12 Gateway Casinos & Entertainment (GCEL) locations already supported by Passport in the state of Ontario.

"We’re excited to expand our long-term relationship with GCEL across three Canadian Provinces," said Kurt Sullivan, the president of Passport. 

READ: Australis Capital to acquire casino payment platform Passport Technology, leveraging fintech assets globally

"Passport has accelerated growth in 2020 and based on executed long term agreements in Canada, UK, and Europe, we expect to achieve US$12M in revenue in 2021 with $4 million in operating income, understanding COVID-19 does represent some uncertainty to the global casino industry," he added.

() investee Embark Health Inc and Mesa Exploration Corp (CVE:MSA) have signed a binding letter of intent to complete a business combination or other similarly structured transaction which will constitute a reverse takeover of Mesa.

Mesa is listed on Toronto Stock Exchange’s Venture Exchange, but it is expected that the company will have no commercial operations and no assets other than cash prior to the closing of the reverse merger.

Focus on vape pens

Earlier this month, Embark entered into a definitive agreement to develop, produce and distribute Volero’s Flyte cannabis 2.0 products for the Canadian market.

The co-production agreement provides for the production and distribution of vape pens through 2021.

() () CEO Cleve Tzung said the firm was “pleased” with the response it is receiving from shareholders after announcing a transformative deal to acquire Passport Technology Inc.

The acquisition “enhances the company's ability to drive growing and sustainable value creation for all shareholders," Tzung told shareholders in a statement Monday.

"We're pleased with the early, overwhelmingly supportive inbound comments we have received from shareholders since we announced the Passport acquisition and look forward to its successful completion."

READ: Australis Capital to acquire casino payment platform Passport Technology, leveraging fintech assets globally

Passport partners with casino operators to increase gaming revenue by delivering funds to the casino floor through cash and cashless payment portals. The technology is in 72 physical casinos with 124 unattended kiosks throughout five countries.

() Canadian investee Harvest One Cannabis Inc () () has entered into an agreement to sell its United Greeneries cannabis cultivation and processing business to Costa Canna Production Ltd Liability Partnership for C$8.2 million.

Sale of the business in Duncan, British Columbia, and its related operations confirms Harvest One’s strategic transition to a cannabis-focused Consumer Packaged Goods (CPG) company.

The Canadian company will retain all assets and intellectual property associated with its Cannabis 2.0 product portfolio including, the company’s LivReliefTM cannabis-infused topicals currently on sale in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.

Harvest One chief executive officer Andrew Bayfield said: “The agreement to sell our Duncan Facility and its related operations represents a strategic step forward for Harvest One, further divesting from its capital intensive cultivation activities and firmly establishing ourselves as a cannabis-focused CPG company.

() () is boosting its fintech assets with the addition of a new, revenue-generating gaming platform with an international footprint.  

In a statement Thursday, the company announced a series of moves related to the acquisition, including a new financing, management reshuffle and name change.

The Las Vegas-based company is acquiring Passport Technology Inc, which partners with casino operators to increase gaming revenue by delivering funds to the casino floor through cash and cashless payment portals. Passport is in 72 physical casinos with 124 unattended kiosks throughout five countries.

READ: Australis Capital says Cocoon Technology helps dispensaries to reopen with the launch of contactless, self-service kiosks

Passport will complement Australis’ existing fintech assets – Cocoon Technology and Paytron – to leverage purpose-built technology for highly regulated industries with a growing need for unattended kiosk solutions with a global market expected to surpass $46 billion by 2026, according to Australis. As a Platform-as-a-Service (PaaS) technology, both Passport and Cocoon reside in the cloud and are easily duplicated to new jurisdictions and markets.

(ASX MMJ) is creating a diversified portfolio of cannabidiol (CBD) and cannabis investments in cultivation, extraction and consumer products with material investments in Embark Health, Weed Me, (), Sequoya, Volero and Bespoke.

The company has also been actively supporting the operational and financial restructuring plans of its investee Harvest One Cannabis Inc ().

MMJ’s investment portfolio as at May 31 2020