Cannabis and Hemp Industry Investment News

() (OTC:AUSAF) has released a corporate update, revealing that its revenue for the fiscal year ended March 31, 2021, is expected to have doubled year-over-year, as well as highlighting a batch of other recent news developments.

A big reason for that, according to Australis’s CFO on Jon Paul, is the company's 51% stake in commercial crops facility management firm 2750176 Ontario Inc (ALPS), even though the deal was closed less than a month before the fiscal year ended.

"Despite ALPS only contributing approximately 3 weeks to our year-end, AUSA's revenues are anticipated to more than double for the entire fiscal year ended March 31, 2021,” Paul said in the update. “With an array of current projects in progress and an expanding pipeline of new projects anticipated to be signed, the impact of ALPS on the first quarter of our fiscal 2022 will be even greater.”

READ: Australis finds its first chief science officer in University of Alberta lead cardiologist Jason Dyck

“Meanwhile," the CFO added, "we expect the sale of a land asset held through our other acquisition, Green Therapeutics, to close shortly, which will add approximately C$2.5 million in cash to our working capital position. With the anticipated growth at ALPS and GT, as well as other liquid assets held, AUSA is in robust shape financially for its current level of operations."

Australis Capital Inc (CSE:AUSA) (OTC:AUSAF) has released a corporate update, revealing that its revenue for the fiscal year ended March 31, 2021, is expected to have doubled year-over-year, as well as highlighting a batch of other recent news developments.

A big reason for that, according to Australis’s CFO on Jon Paul, is the company's 51% stake in commercial crops facility management firm 2750176 Ontario Inc (ALPS), even though the deal was closed less than a month before the fiscal year ended.

"Despite ALPS only contributing approximately 3 weeks to our year-end, AUSA's revenues are anticipated to more than double for the entire fiscal year ended March 31, 2021,” Paul said in the update. “With an array of current projects in progress and an expanding pipeline of new projects anticipated to be signed, the impact of ALPS on the first quarter of our fiscal 2022 will be even greater.”

READ: Australis finds its first chief science officer in University of Alberta lead cardiologist Jason Dyck

“Meanwhile," the CFO added, "we expect the sale of a land asset held through our other acquisition, Green Therapeutics, to close shortly, which will add approximately C$2.5 million in cash to our working capital position. With the anticipated growth at ALPS and GT, as well as other liquid assets held, AUSA is in robust shape financially for its current level of operations."

MMJ Group Holdings Ltd (ASX:MMJ) (OTCMKTS:MMJF) Canadian investee Embark Delta Inc, a wholly-owned subsidiary of Embark Health, has completed its second shipment of products to the British Columbia Liquor Distribution Branch (BCLDB) with Distilled + Infused liquid beverage shots.

Distilled + Infused is Embark’s inaugural product offering in the beverage category with the suite of products produced through Embark Nano’s ground-breaking technology.

The THC-infused Liquid Beverage Shot comes in an unflavoured option, which can be enjoyed with an adult’s drink of choice.

It also comes in strawberry lemonade and raspberry lemonade flavours which are naturally flavoured.

() () investee Embark Health Inc has continued to deliver its strategic business development priorities on several fronts during the first 11 weeks of 2021, including entering into supply agreements with the provincial boards of British Columbia, Alberta and Manitoba.

The company has also entered into a supply agreement with Shelter Market for supply into the national medical market through the Shelter Medical platform operated by Agro-Greens Natural Products Ltd.

Embark has shipped The Hank Co Bubble Hash to the province of British Columbia and Alberta in addition to Shelter Market and is targeting shipments to Saskatchewan and Manitoba through April as the business anticipates the receipt of a purchase order.

Sales execution

In support of sales execution, Embark’s retail sales team continues to conduct retail store tours and product knowledge sessions within the provinces.

() () (FRA:AC4) announced that through its majority-owned subsidiary ALPS, it has struck an agreement with Arizona's largest cannabis wholesaler, Copperstate Farms Management LLC for expanded capacity and expanded product lines. 

Copperstate Farms operates a 40-acre, 1.7 million-square-foot greenhouse in Snowflake, Arizona, cultivating medical and adult-use cannabis. The contract with ALPS will have an initial term of two years and is expected to consist of two phases. “Total contract value over two years is anticipated to be up to $6 million,” said the company.

During the first phase of the expansion, Copperstate has contracted ALPS to implement “a full technology and workflow upgrade” of its facility with industrial greenhouse management solutions, cultivation practices, compliance upgrades and computerized maintenance management services through the firm's APIS offering. This is expected to boost yield and product quality, enabling Copperstate to meet growing demand in the Arizona market, said the company.

READ: Australis Capital completes first phase of Green Therapeutics acquisition with cannabis subsidiary purchase

Phase 1 will also include engineering support for the construction of a world-class processing and manufacturing facility operated by Copperstate Farms in Tempe, Arizona. This facility is in the same building as the Sol Flower dispensary, noted the company. As part of the contract, ALPS will support Copperstate Farms in achieving GMP compliance for the facility.

() (OTC:AUSAF) (FRA:AC4) has appointed Jason Dyck, director of the Cardiovascular Research Centre at the University of Alberta, as its new chief science officer and chairman of its scientific advisory board, the company announced. 

Dyck has a wealth of experience leading cannabis-related medical research and has deep connections and high standing in the industry, the company said. He previously led the research and science team at Aurora Cannabis Inc (NYSE:ACB) (TSE:ACB) (FRA:21P1) in its formative years, playing a significant role in helping it become the medical cannabis industry leader that it is today, Australis said. 

The company’s appointments strategy is to leverage the roots of its management team in medical cannabis, while developing offerings and partnerships aimed at the medical and wellness markets. 

READ: Australis Capital completes first phase of Green Therapeutics acquisition with cannabis subsidiary purchase

Dyck also established and co-directs a province-wide clinical heart failure research program called Alberta HEART that is a translational research program in heart failure. 

() portfolio holdings are in a much better position than they were one quarter ago with more cash on hand and solid plans for achieving shareholder liquidity, according to MMJ’s investment portfolio report as at March 31, 2021.

The company has provided a detailed update on its various investments:

Embark Health

Embark has engaged an investment bank to pursue a direct listing of its shares.

The company has built out a solid sales order book and has shipped significant product in February and March.

Australis Capital Inc (CSE:AUSA) (OTC:AUSAF) (FRA:AC4) announced Wednesday that it has completed the first stage of its previously announced acquisition of Nevada cannabis company Green Therapeutics LLC (GT), by purchasing one of its subsidiaries.  

The subsidiary contains a number of unregulated assets, including the GT brands and certain ancillary agreements such as brand licensing and management agreements. Subsequently, the company will complete the acquisition of GT itself. In total, Australis will pay to the holders of the GT membership interests between C$8 million and C$10 million for 100% of the outstanding membership interests of both GT and the subsidiary.

GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products. GT was co-founded by former MedMen president — and current Australis COO — Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts. 

READ: Australis Capital finalizes definitive agreement to acquire cannabis company Green Therapeutics

"We continue to execute at a high pace and will be accelerating our growth, now that the first stage of the GT transaction is closed," CEO Terry Booth said in a statement. "... the GT team brings productive and valuable cannabis operations and assets, very deep connections in the Nevada cannabis industry and elsewhere, and access to a host of potential partnerships and transactions. The credibility that GT has built in the Nevada market and beyond is of great value as we continue to build a new type of [multi-state operator]. Leveraging our majority ownership of ALPS creates other unique opportunities to scale the GT brands and positions us exceptionally well to capitalize on the enormous opportunity in the US cannabis space."

Australis Capital Corp (CSE: AUSA- ITC: AUSAF) CEO Terry Booth joined Steve Darling from Proactive with news the company has closed their 51% acquisition of ALPS, which is a global leader in facility design, construction management and (post) commissioning services to the horticultural sector.

Booth talks about the turning point for the company with this move as Australis now becomes a revenue-generating company.

Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) said Friday it had executed a definitive agreement to acquire Nevada-based cannabis company Green Therapeutics LLC. 

GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products. GT was co-founded by former MedMen president – and current Australis COO - Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts. 

The company operates an 8,000 square foot facility in Nevada and its brands are carried by 52% of Nevada-based dispensaries, with further market penetration expected as production capacity is expanded. GT also has a manufacturing license in Oklahoma and a 25% interest in an extraction and processing license in Missouri. 

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

Australis said the transaction, once completed, will be immediately accretive to its results as the current Nevada assets - which are the subject of the settled legal dispute - are non-operational. It is anticipated that GT's brands will be scaled up across multiple US jurisdictions.

’s () publicly listed portfolio companies have taken advantage of continued positive news on the regulatory front for cannabis.

Companies in the cannabis sector are also taking on much less debt with the focus shifting to equity.

2.5x equity has been raised so far in the first 2 months of 2021 and 1/5th the debt compared with the same time frame in 2020, according to a report by Viridian Capital.

Harvest One Cannabis

MMJ investee Harvest One Cannabis Inc () () (FRA:2CN) recently raised C$5.75 million in new equity (unit deal priced at C$0.155 with a full warrant at C$0.19).

() () (FRA:AC4) announced Tuesday it has completed the acquisition of a 51% ownership interest in 2750176 Ontario Inc (ALPS).

In addition, Australis as expected named Terry Booth - an ALPS principal and former CEO of Aurora Cannabis Inc (NYSE:ACB) - as its new CEO. 

Under the deal, as an initial consideration, Australis will spend C$10 million in company shares and C$2 million in cash. All told, the final price tag could be between C$13.7 million and nearly C$26 million. Australis also holds an option to acquire the remaining 49% of ALPS over three years.

READ: Australis Capital teams up with 3 Rivers Biotech to offer plant tissue culture to growers

CEO Booth also has been appointed to Australis' board of directors. He takes over from Dr Duke Fu, who has been serving as the company's Interim CEO since November 2020. Dr Fu has been appointed COO and will remain on the board while Thomas Larssen, founder of ALPS, will remain as president of ALPS.

() () (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.