Cannabis and Hemp Industry Investment News

() () (FRA:AC4) is teaming up with agricultural technology company 3 Rivers Biotech Inc on a tissue culture joint venture, the company announced Wednesday. 

3 Rivers specializes in commercial-scale micropropagation, or plant tissue culture (PTC), for cannabis, hemp and traditional crops. 

The two companies will work together to jointly market the 3 Rivers offering to growers and eventually provide access to other commercial-ready solutions in pest control, pathogen testing and genetic fingerprinting. 

READ: Australis Capital buys 51% stake in cannabis facility design/construction company ALPS

Under the terms of the partnership, Australis will own 15% and 3 Rivers will own 85% of the joint venture. 3 Rivers will provide access to its intellectual property and services, products and solutions to Australis-sourced clients through the joint venture.

() () (FRA:AC4) reported its third quarter 2021 results on Monday evening that saw the company end a transformational period with $7.6 million in cash. 

Revenue for the quarter came in at $90,000, consisting of consulting fees from BAMM and technology revenue from its Cocoon business, both legacy businesses that do not feature heavily in the Las Vegas-based company’s future plans. 

In a statement accompanying the results, the cannabis company said it was “positioned for rapid growth” following the closing of two major transactions to acquire cultivation facility construction firm ALPS and Green Therapeutics, a Nevada-based cannabis company. 

READ: Australis Capital buys 51% stake in cannabis facility design/construction company ALPS

Australis plans to leverage an ALPS-driven expansion model to scale up the Green Therapeutics brands throughout the US after both deals close by the end of March.

's () () (FRA:2P9) Mike Curtis caught up with Proactive's Andrew Scott soon after announcing they recorded a 182% hike in revenues to A$192,000 in the six months to December 31, 2020. Curtis says the portfolio they had last year is extremely stable now and they're starting to see the companies as they come out of the pandemic doing exceptionally well. ''We're a lot more excited than we were last year at this time'', he says.

() () (FRA:2P9) has revealed significant events in the operations of its investee Harvest One Cannabis (HVT:CVE) (OTCMKTS: HRVOF) (FRA:2CN) during February 2021.

These include a major capital raising, the sale of non-core assets and the execution of Asian product distribution agreement.

Importantly, these events have coincided with a 116% increase in the value of MMJ’s investment in HVT during February 2021 which now totals $13.4 million (representing 27% of MMJ’s investment portfolio as at 25 February, 2021).

Since 31 January 2021, HVT’s share price has increased from CAD9.5 cents to CAD19.5 cents as at 25 February 2021.

() () (FRA:2P9) has recorded a 182% hike in revenues from ordinary activities to A$192,000 in the six months to December 31, 2020. 

The global cannabis investment company has also sharply narrowed its losses for the half-year to A$2.186 million from a loss of A$31.131 million in the previous corresponding period.

Cash holdings for the consolidated entity increased by A$2.8 million to A$3.8 million, primarily as a result of the repayment of loan receivables.

Review of operations

There were gains of A$1.596 million from its Southern Cannabis Holdings investment and A$925,000 from its WeedMD investment.

() () (FRA:AC4) has reached a definitive agreement to acquire 51% of the issued and outstanding shares of cannabis facility design company ALPS, the company announced Wednesday. 

Australis will pay between C$13.7 million and nearly C$26 million in total consideration, the company said. Initially, the company will pay C$10 million in either common shares at a price of C$0.20, cash, or a mixture of both. An additional C$2 million will be paid once the deal closes, and a C$1.7 million indemnity holdback to follow after 18 months.  

The agreement also has an option for Australis to acquire the remaining 49% within three years. If sufficient milestone payments are made (the maximum milestone payment is $24 million in three installments if ALPS hits cumulative revenues of C$108.7 million and EBITDA of C$48.9 million), the payments will count in part toward that option.  

READ: Australis Capital says nearing completion of its acquisitions of ALPS and Green Therapeutics

Since its management buyout from Aurora Cannabis in May 2020, ALPS has built a blue-chip roster of global customers and a growing pipeline of potential new deals, the company said. ALPS is currently executing on a number of contracts, including Aurora, Cann Group, Vertical Harvest and Aldershot Greenhouses.

() (FRA:2P9) () investee Harvest One Cannabis Inc () has entered a definitive sale agreement to sell all issued and outstanding shares of wholly-owned subsidiaries Satipharm Limited, Satipharm AG and Phytotech Therapeutics Ltd to Cann Group Limited (), a diversified medical cannabis company headquartered in Melbourne, Australia.

Cann Group will issue ordinary shares representing total aggregate consideration of around C$4 million, subject to certain adjustments pursuant to the provisions of the agreement.

“Another milestone”

Harvest One president and CEO Gord Davey said: “The agreement to sell Satipharm and its related subsidiaries is another milestone for Harvest One in the successful completion of the company’s strategic review process. ‘

“The company has undergone significant transformative change over the past 12 months and has completed a number of substantial divestitures, which now allow our team to focus on the core business of cannabis-infused CPG product development and distribution.

() (FRA:2P9) () investee () () has welcomed the Canadian launch of acclaimed US-based wellness brand Mary’s Medicinals, which is part of the Mary’s Brands portfolio.

As the exclusive manufacturer and distributor for Mary’s Medicinals’ suite of products in Canada, WeedMD will launch Mary’s Medicinals Transdermal Compound topical as its first release, with expected availability to the company’s Starseed Medicinal patients starting late February.

WeedMD will expand availability starting with Ontario expected in March 2021, to be followed by additional provinces.

The launch will eventually expand to include new product formats, including Mary’s Medicinals transdermal gels and patches, and will become available to both medical and direct-to-consumer markets.

() () investee Harvest One Cannabis Inc () continues its international expansion with the signing of an agreement with leading distributor Golden River Services Ltd, based in China.

Under the distribution agreement, Golden River will sell and distribute Dream Water products throughout China and other Asian countries, including Hong Kong, Macao and Taiwan. 

Golden River is a leading Asian consumer goods distributor representing prominent brands such as Nestle, Brita, Durex and Jamieson with a significant online presence with retail partners such as Taoboa Global Shopping and TMall Global Shopping.

The Chinese company also has retail access through airlines and duty-free shops which aligns with Dream Waters’s existing business in North America.

() stock has remained flat at 12 cents per share over the course of January 2021 compared to a 0.3% rise for the broader market as represented by the ASX 200.

However, the benchmark Alternative Harvest ETF has dramatically risen in January by about 33% from US$14.35 to US$18.97.

Thus far in February the ETF has moved up another 82% and closed at US$34.6 on February 11.

MMJ is witnessing significant follow through on the buying action that now appears to have come “down cap” into many of its investee companies as well.

() stock has remained flat at 12 cents per share over the course of January 2021 compared to a 0.3% rise for the broader market as represented by the ASX 200.

However, the benchmark Alternative Harvest ETF has dramatically risen in January by about 33% from US$14.35 to US$18.97.

Thus far in February the ETF has moved up another 82% and closed at US$34.6 on February 11.

MMJ is witnessing significant follow through on the buying action that now appears to have come “down cap” into many of its investee companies as well.

() () said Tuesday it is progressing well towards the completion of its proposed acquisitions of ALPS and Green Therapeutics LLC (GT).

Australis is seeking a 51% interest in ALPS and the 100% acquisition of the outstanding membership interest in Green Therapeutics, which includes the discontinuation of all previous litigation with Green Therapeutics. 

“As per the Company's commitment to keep our shareholders fully informed and apprised, we are expecting to enter into definitive agreements with ALPS in short order,” the Nevada-based company said in a statement.

READ: Australis Capital acquiree ALPS inks deal to build a high-tech California greenhouse

 () () (FRA:AC4) reported that ALPS, a company in which Australis is in the process of acquiring, has entered into an agreement with Bluehouse Greenhouse (BHGH) for the development of a 62 acre (2.7 million square foot), high-tech, fully integrated greenhouse for the sustainable production of vegetables in California. 

Australis said the greenhouse facility, which will be developed by ALPS’ wholly-owned subsidiary Larssen Greenhouse Consulting (LGC), is expected to save up to 90% on water use and 90% on labour while growing 48 million pounds of produce on a footprint 1/30th the size of a traditional farm.  

“With this sizeable $1.9 million project, ALPS continues to capitalize on opportunities and grow revenues at a rapid pace,” AUSA Interim CEO Dr. Duke Fu said in a statement. 

READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS

He added: “Conversion of ALPS's substantial business development pipeline in both the cannabis and traditional horticulture sectors will provide AUSA, once the acquisition is completed, with cash flow to further fuel the execution of its capital-light expansion strategy.”

 () () (FRA:2P9) investee Embark Health Inc has successfully completed its first shipment of products to the British Columbia Liquor Distribution Branch. 

Its Hank Co. Bubble Hash is now available across British Columbia and Embark Health anticipates further purchase orders imminently with the province of Alberta. 

The company is working with additional provincial boards to register products and increase the distribution capabilities for its branded products. 

Product on shelves in weeks

Embark chief executive officer Dr. Luc C. Duchesne said: “The Embark team has worked tirelessly to move from a definitive agreement to product on shelves in a matter of weeks.

() () (FRA:2P9) investee Embark Health Inc has ended the 2020 year with a processing licence as well as a sales licence to sell edibles, extracts and topicals from Health Canada.

This comes after beginning 2020 as a pre-revenue applicant to Health Canada.

Embark continues its focus on selling its direct-to-consumer branded products through the provincial boards in addition to contract manufacturing activities.

In 2021, the company aims to deliver its strategic development priorities, with contract manufacturing services having proceeded to scale throughout Q3 and Q4 2020.

() () (FRA:AC4) announced Tuesday its acquisition target ALPS inked an agreement with Cann Group Limited to deliver end-to-end design, construction and commissioning services for the latter’s planned Australian greenhouse. 

The $2.5 million agreement for the 363,000 square foot facility includes the installation of a computerized compliance and maintenance management system, APIS, and an ongoing service contract, the company said in a statement. 

ALPS is a leading design, construction management, commissioning and post commissioning consultancy company for horticultural crops. The company has been involved in cannabis projects across the globe with a total grow area in excess of 340 acres for a total cultivation capacity of around 2,000,000 kilograms of cannabis per year.

READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS

"This is a significant contract for us in terms of size, and acknowledges the respect ALPS has garnered in the global cannabis space,” ALPS president Thomas Larssen said in a statement accompanying the news.

Chemistree Technology Inc (CSE:CHM) (OTCMKST:CHMJF) says investee company ImmunoFlex, a life sciences company developing clinically validated, pharmaceutical-grade natural health products based on advancements in genomics research, has received approval for its Flex 10 product from Health Canada.

"At ImmunoFlex, we work with the immune system to strengthen, support, and enhance our body's natural surveillance and response system," said ImmunoFlex CEO Chris Wagner in a statement.

READ: Chemistree to unveil virtual reality tour of Washington State cannabis facility at industry expo

"FLEX 10 is the first product in our line up of products designed to achieve this goal so we could not be more delighted with the Health Canada approval," Wagner noted. 

Chemistree President Karl Kottmeier added: "This is great news. We view the approval from Health Canada as a significant milestone for Immunoflex and look forward to announcing further advancements for this and their other products."

Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) provided an operations update on its pending acquisitions of Green Therapeutics LLC and ALPS, as part of its shift from an investment company into a US multi-state operator (MSO).   

Australis said Green Therapeutics (GT) saw a record 47% year-over-year increase in December sales, and recently reached an agreement to sell its land in North Las Vegas, which would result in AUSA receiving approximately US$1.95 million if the transaction is completed.

Meanwhile ALPS, through its wholly-owned subsidiary Larssen Greenhouse Consulting (LGC), has executed a number of contracts for the development of facilities for the cultivation of high-quality, low-cost crops such as fruits, vegetables and microgreens.

READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS 

“The new board is rapidly changing AUSA from an ‘investment’ company into a multi-state operator with expected meaningful revenue growth, resulting in profitable operations,” Australis Capital CEO designate Terry Booth said in a statement.

Australis Capital (CSE: AUSA- OTC: AUSAF) new CEO Terry Booth joined Steve Darling from Proactive with news the company is planning to utilize a new strategy for the company as they look to capitalize on a number of opportunities.

Booth shared with Proactive what that strategy will be and how he plans on measuring performance and making sure they are accountable to shareholders.