Cannabis and Hemp Industry Investment News

AgraFlora Organics International Inc () (OTCMKTS:AGFAF) revealed it has taken a further step towards gaining a cultivation licence for its large-scale commercial greenhouse in Delta, British Columbia.

In a statement, the international cannabis firm confirmed that it will deliver the cultivation license at its Delta Facility before the end of the second quarter this year, barring any material change in Health Canada’s service standards as a result of "prevailing socioeconomic conditions".

READ: AgraFlora Organics nabs Health Canada approval to launch Toronto CBD business

The group's Propagation Services Canada, otherwise known as the 'Delta Facility', is a 2.2 million square foot commercial greenhouse, aiming to reshape the Canadian market with high-potency, low-cost cannabis flower.

On April 3 this year, AgraFlora said the Delta Facility had submitted responses to the third request for more information (RMI) from Health Canada over the cultivation application.

Inc () (OTCPINK:EURFF) (FSE:3CMA) is moving forward with a shareholder relief plan to reprice more than 59 million repurchase warrants in response to the market impact caused by the coronavirus (COVID-19).

The company is repricing all warrants to $C0.05, including those with a previous exercise price of between C$0.05 and C$0.125 and an expiry date between May 4, 2020 and January 15, 2022. 

The lower price increases the likelihood that warrant holders will be able to exercise their warrants prior to May 4. If all the warrants subject to the shareholder relief plan are exercised during that period, EuroLife expects to generate roughly C$2.96 million in proceeds.

READ: EuroLife Brands names Dean Callaway as new finance chief; closes in on Dresden Hemp deal

Any warrants not exercised by May 4 will remain outstanding and exercisable under their original terms. This excludes the warrants issued on May 4, 2018, which will expire at 5 pm Pacific Time (PT) on that date.

The Green Organic Dutchman Holdings Ltd () (OTCQX:TGODF) announced Wednesday that it has entered into a $30 million secured revolving credit facility with a private lender. 

The company said the facility, secured on accounts receivable and inventory with a second lien over the company's other assets, has an initial term of one year and is subject to renewal for up to an additional year.

Upon closing, TGOD will be able to draw $10 million. The remaining $20 million will become available as cannabis company ramps up its operations and an additional borrowing base becomes available from inventory and accounts receivable generated from operations. 

READ: Green Organic Dutchman says Ancaster processing facility gets Health Canada nod

The Ontario-based company said its existing senior lender has also agreed to advance an incremental $5 million on the company's accordion facility, pending the amendment of the existing credit agreement.

Asterion Cannabis Inc and its wholly-owned subsidiary Asterion (Australia) Pty Ltd are finalizing the development, construction, maintenance and financing of the first phase of a $400 million greenhouse project in Toowoomba, Queensland. 

In a statement Tuesday, the privately-owned Vancouver-based company said it has entered into an exclusive Definitive Association Agreement (DAA) with entities within the Limited group.  

Watpac is a large and well-known contractor in Australia and part of the BESIX Group, a global construction, property development and concessions company.

READ: Asterion Cannabis welcomes business executive Robert Coltura to its board of directors

The DAA sets out a process for the parties to rapidly enter into design, construction and facilities maintenance agreements. As part of the DAA, Watpac will work with Asterion to finalize acceptable standard Australian commercial terms for these agreements and separately investigate opportunities for investment in the project.

The Green Organic Dutchman Holdings Ltd () (OTCQX:TGODF) announced Monday that its Ancaster processing facility is ready to begin production after receiving approval of a license amendment from Health Canada.

The facility expansion at Ancaster includes dedicated areas for the packaging of flower, oils, pre-rolls, as well as Cannabis 2.0 edible and ingestible products.

"Receiving this licence amendment was a key element of our 2020 operating plan,” TGOD CEO Brian Athaide said in a statement. “We made significant investments in this state-of-the-art facility, and now that it is fully licensed, Ancaster can finalize the ramp-up of its production capacity."

READ: The Green Organic Dutchman arranges C$5M bought deal financing agreement

With the new facility up and running, TGOD can get more done in-house without needing to turn to third-party companies.

AgraFlora Organics International Inc () (OTCMKTS:AGFAF) said it's subsidiary Sustainable Growth Strategic Capital Corp has received approval from Health Canada to begin extraction at its Greater Toronto Area facility, under an amendment to its standard processing license.

SGSC has been working with partner farmers in the Canadian CBD business to optimize its harvest and maximize the subsequent CBD extraction. In March, the company conducted a trial extraction of hemp-biomass, which will be extracted by third-party services and sold as CBD crude oil, distillate and isolate.

SGSC also holds standard cultivation and medical sales licenses

.READ: AgraFlora Organics completes acquisition of Canadian cannabis producer Sanna Health Corp

The Green Organic Dutchman Holdings Ltd () (OTCMKTS:TGODF), a producer of premium organic cannabis, announced Friday it has entered into an agreement with Corp to raise C$5 million in financing.

In a statement, TGOD said Canaccord has agreed to purchase, on a bought deal basis,17,858,000 units in the company at a price of C$0.28 per unit.

TGOD said it intends to use the proceeds for the development of key product lines and for general corporate purposes.

READ: The Green Organic Dutchman cuts costs while expanding its product portfolio

The Ontario-based company said each unit consists of one common share in the group and one-half of a one common share purchase warrant. Each warrant shall be exercisable to acquire one common share for a period of 36 months from the closing of the transaction at an exercise price of C$0.38 per warrant.

The Green Organic Dutchman Holdings Ltd () (OTCMKTS:TGODF), a producer of premium organic cannabis, on Thursday said it would cut spending aggressively due to market conditions, but still expand its product portfolio in the midst of the coronavirus (COVD-19) pandemic.

In a statement, the company said it had postponed the start-up of its Valleyfield facility located in Quebec to “centralize cultivation operations” at its outpost in Ancaster, Ontario. The company has temporarily laid off the majority of its Valleyfield employees and intends to restart operations there later in the year. Ancaster is not impacted and continues to grow and harvest premium organic cannabis for the recreational and medical markets.

“The Ontario facility is able to produce larger volumes than initially anticipated, enabling the company to delay cultivation operations in Valleyfield saving costs and capital,” the company noted.

READ: The Green Organic Dutchman expects ‘continued sales momentum’ in 2020

Cannabis One Holdings Inc () is strengthening its board with the addition of veteran Colorado businessman C Regan Hauptman.

Hauptman, CEO of residential developer Remington Homes, has been an investor in Vancouver’s Cannabis One since 2016.

The Canadian cannabis company is commercializing a house of brands throughout North America, including its flagship brand, The Joint.

READ: Cannabis One Holdings kicks off cultivation at Fox Street facility

"I am pleased to accept a directorship with Cannabis One Holdings Inc and I look forward to contributing to the company's growth as it continues to expand its retail footprint and its infused product offerings across Nevada, Colorado, Oregon and Washington," Hauptman said in a statement on Wednesday.

Inc (NASDAQ:HUGE) () has announced a series of steps designed to mitigate the impact of the coronavirus pandemic on its Canadian operations.

The Toronto-based medical cannabis company said it was scaling back cultivation operations in Cobourg, Ontario in line with guidance from the provincial and local health officials.

“Following a COVID-19 Declaration of Emergency by the Government of Ontario and confirmation of the presence of coronavirus infections in the town of Cobourg with nearly 19,000 residents, we have taken necessary steps to ensure the safety of FV Pharma’s employees, the Cobourg community and our in-facility partners," Raza Bokhari, FSD’s CEO said in a statement.

READ: FSD Pharma kicks off in-human study of micro-PEA in Australia

“The COVID-19 pandemic is rapidly shifting and we have assembled a working group within FSD Pharma to perpetually monitor the unprecedented market realities that are shaping the local and global business landscape.”

Harvest One Cannabis Inc () (OTCMKTS:HRVOF) said Friday that its board has appointed Andy Bayfield, the company’s current chief commercial officer as its interim CEO, replacing Grant Froese who has resigned.

In a statement, the company said that Bayfield will start immediately as its temporary boss and will also be appointed to the company's board of directors.

At the same time as Bayfield’s appointment, the group has also appointed Frank Holler, currently chairman of its board, to the position of executive chairman. Holler has also served as chair of the special committee overseeing a strategic review of the business.

READ: MMJ Group investment Harvest One makes progress with strategic review

The cannabis company said that while it had accepted the resignation of Froese as CEO, in order to create a seamless transition, he  will continue to support Bayfield on “a consulting basis.”

Heritage Cannabis Holdings Corp () (OTCMKTS:HERTF) has revealed it is adjusting capacity at its production facilities amid the coronavirus pandemic.

Beginning on March 18 this year, the group said it will be focusing on "necessary production to complete current customer shipments" and will temporarily adjust to one shift per location per day until further notice.

READ: Heritage Cannabis and Empower Clinics getting ready to begin manufacturing CBD oil in the US

"We are focused on the safety of our people and the communities in which we operate. While this is a challenging time, and plans are difficult to make, it is the responsible path for the company and its stakeholders at this time," Clint Sharples, Heritage's chief executive said in a statement.

"Our management team is constantly reviewing the best response to this health threat and is committed to safety and ensuring Heritage remains strong and ready to move forward once this threat is behind us."

Biome Grow Inc () (OTCMKTS:BIOIF), the cannabis company, said it has terminated a supply deal with the Province of Newfoundland and Labrador, which was announced in 2018, but added that it does not believe it will materially affect the firm's business, operations or results.

Two years ago, Biome Grow subsidiary Back Home struck a 24,000 kg three-year deal with the Province and the Newfoundland and Labrador Liquor Corporation (NLC) to produce and supply cannabis product to the province's market. It also meant Biome Grow had access to five retail licenses.

READ: Biome Grow announces strategic updates amid cannabis market uncertainty

In a statement on Tuesday, Khurram Malik, the chief executive of Biome Grow said: "Understandably, we are all disappointed that things did not work out as originally planned.

"However, it's evidently clear, the cannabis market, and markets in general, have changed significantly over the past year. It would be foolish to continue on a previously announced path when it's clear the strategy no longer applies given the environment."

AgraFlora Organics International Inc () (OTCMKTS:AGFAF) has closed the acquisition of Candian cannabis company Sanna Health Corp, originally announced back in December.

Sanna Health, based in Toronto, operates a 16-acre, 27,000 sq ft Health Canada licensed cultivation and processing space. The company holds an option to expand its production to 89,000 sq ft in addition to more commercial-industrial space.

AgraFlora acquired all of the issued and outstanding shares of Sanna in exchange for 76,666,666 shares.

READ: AgraFlora Organics German subsidiary Farmako posts C$3.1M in FY2019 revenue

() (OCTMKTS:NTTHF) announced Wednesday it has produced battery-grade lithium carbonate at its pilot plant in Fiambala using concentrated brine from its wholly owned Tres Quebradas lithium project (3Q project) in Argentina's Catamarca province. In a statement, Neo Lithium said the brine was extracted from the high-grade zone located in the northern zone of the 3Q Project and then evaporated at the company's industrial-scale ponds at the same location under similar conditions as production scale. The company achieved 99.599% purity using an improved process, which may decrease operational and capital costs while minimizing reagent, water and power consumption. 

The surge in market volatility triggered by the deadly coronavirus outbreak is prompting A/S (CPH:BIOPOR) to start a rights issue, which will allow for the subscription of up to 24,992,054 new shares, instead of going the route of a private placement. The move to strengthen the Danish in-vitro diagnostic company’s financial position is set to raise up to US$8.3 million or roughly 55 million in Danish Krones, and provides a subscription price of DKK2.20 per share ($0.33). All proceeds from the rights issue will be put towards funding BioPorto’s applications to the US Food and Drug Administration for clearance in 2020 of its flagship NGAL test, which provides an early risk assessment of acute kidney injury, as well as to raise awareness about the NGAL platform, particularly in the US.

MGX Renewables Inc, doing business as (), has settled the debt claimed by MGX Minerals Inc () (OCTMKTS:MGXMF) by agreement to pay to it $1.5 million over the next four months. Also as part of the settlement, MGX Minerals has agreed to sell to Zimtu Capital Corp 5.5 million shares of Zinc8 for $550,000 that are to be held in escrow and released over two years. The remaining Zinc8 shares in escrow will be retained by MGX Minerals. In other news, Jared Lazerson, the former CEO of Zinc8, has resigned as a director. The board of Zinc8 now is composed of CEO Ron MacDonald, Michael Reimann, Lyndon Patrick and David Hodge.

Newgioco Group (NASDAQ:NWGI), the sports betting and gaming group, has been forced to close about 150 of its betting shops across Italy in the wake of the outbreak of the deadly coronavirus in the Mediterranean country. However, CEO Michele Ciavarella says the company’s long-term fundamentals remain robust and Newgioco is still proceeding according to plan with its planned investments like the development of its US betting platform. Further financial updates, as well as earnings and the publishing of cash flow from operations, will be made available during the fiscal second quarter of this year.

AgraFlora Organics International Inc () (OCTMKTS:AGFAF) said Wednesday that its wholly-owned subsidiary Farmako GmbH has submitted an application to the regional authorities in Germany for EU Good Manufacturing Practice (EU-GMP) certification, and a manufacturing and import authorization (MIA) license under the German Medicinal Products Act. 

In a statement, the diversified international cannabis company said that with the submission of its application documents, it anticipated the EU-GMP and MIA licensing processes to be completed by the summer. 

If the company is successful in its bid to win MIA authorization and GMP certification, Farmako will be able to import medical cannabis products from outside the European Economic Community. The company said this will “dramatically increase” supply and allow Farmako greater flexibility — a key milestone as it scales its German and European medical cannabis distribution business.

READ: AgraFlora subsidiary Farmako GmbH wins special license to sell irradiated medical cannabis

“Germany has put in place the highest standards in the world to ensure the safety of the medical patient, as well as bolster trust that patients, physicians and pharmacists have in the program. As a result, it is very challenging for new businesses to enter the market which has created a limited amount of medical cannabis supply for the German marketplace,” said Farmako CEO Katrin Eckmans.

Inc () (OTCMKTS:EURPF), the cannabis-focused group, revealed it had a new chief financial officer, Dean Callaway, who will provide his services on a contractual basis. 

It comes as Miroslav Beganovic steps down as finance chief and corporate secretary and leaves with the firm's best wishes, while chairman and chief executive Shawn Moniz becomes corporate secretary. 

READ: EuroLife Brands signs LOI licensing cannabis education platform to Empower Clinics

Accountant Callaway holds a Bachelor of Commerce degree from Dalhousie University and an MBA from Nijenrode University in the Netherlands.

He has more than 25 years of financial leadership experience with the likes of Merrill Lynch, TransAlta, Enbridge and Terasen where he worked in corporate finance, project development, and mergers and acquisitions, said the firm. For over the last ten years, he has worked for private and Toronto-listed public companies operating in the oil and gas and cannabis sectors in international jurisdictions.

The Green Organic Dutchman Holdings Ltd () (OTCMKTS:TGODF) announced Tuesday that it generated $11.16 million in revenue in 2019 and expects “continued sales momentum” in 2020. 

In reporting its financial results for the fourth quarter and fiscal year ended December 31, the cannabis company said sales in Europe increased across all product lines, including HemPoland's newly launched line of CBD topicals.

Also, TGOD said quarterly sales in Canada increased marginally due to limited production from the Ancaster facility. It initiated production in its hybrid greenhouse in November 2019, with an eight-week flowering cycle.

READ: The Green Organic Dutchman says new research license will help product development

Overall, the company posted quarterly revenue of $3.25 million, consisting of hemp-derived product sales in Europe of $2.56 million ($9.88 million for the year) and sales from cannabis products in Canada of $0.69 million ($1.28 million for the year).