Category: Cannabis

Published by NCV Newswire

Judy Schmeling Appointed as Chair of the Canopy Growth Board of Directors and Jim Sabia Appointed to the Board

SMITHS FALLS, ON, Jan. 22, 2020 /PRNewswire/ – Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NYSE: CGC) is pleased to announce that Judy Schmeling has been appointed Chair of the Board of Directors and Jim Sabia has been appointed in principle as a member of the Company’s Board of Directors. Mr. Sabia will act as an observer to the Board as he and Canopy complete the standard Health Canada processes associated with the appointment.

It is my pleasure to welcome Judy Schmeling as our Chair of the Board of Directors and to welcome Jim to the Board. Judy’s leadership experience in highly competitive industries will be instrumental as we focus the business on its core priorities.

Both Judy and Jim’s contributions will be extremely valuable as we continue the journey of building iconic brands.

Ms. Schmeling has been serving on the Canopy Growth Board of Directors since November 2018 and is chair of the Audit Committee. She currently serves on the Board of Directors of Constellation Brands, Inc. as well as Casey’s General Stores, both Fortune 500 companies. She is the former Chief Operating Officer of HSN Inc., an interactive multichannel retailer, and the former President of HSN’s Cornerstone Brands. Ms. Schmeling brings to her new role proven leadership acumen, valuable operations experience and extensive accounting and financial expertise.

I’m honored to be named the new Board Chair at Canopy Growth. During my time as a board member of Canopy Growth, I personally witnessed the unfolding of one of the most exciting market opportunities of our lifetime. I look forward to working with my fellow board members and the entire Canopy Growth leadership team to help guide the company to lead the global cannabis industry.

Mr. Sabia is a world class marketer of iconic consumer brands, currently serving as Executive Vice President and Chief Marketing Officer, Constellation Brands, and a member of Constellation’s executive management committee. Mr. Sabia is responsible for leading the marketing strategy across Constellation’s diversified portfolio of wine, beer and spirit brands. As an industry veteran, Mr. Sabia brings a vast knowledge of building a portfolio of high-performing brands and developing a winning marketing strategy. Prior to joining Constellation in 2007, he served as Vice President of Marketing and Media at Molson Coors Brewing Company.

I’m excited to join Canopy’s Board. There is no company better positioned in the emerging global cannabis market and I look forward to working with Canopy Growth’s very talented leadership team to ensure that we continue achieving success and remain a global leader in the years ahead.

Judy’s full bio is available at www.canopygrowth.com

Here’s to Future Growth

About Canopy Growth Corporation

Canopy Growth (TSX:WEED,NYSE:CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents.

Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.

Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.

From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates eleven licensed cannabis production sites with over 10.5 million square feet of production capacity, including over one million square feet of GMP certified production space. For more information visit www.canopygrowth.com

Original Press Release

For fact-based information on Canopy Growth Corp, view the company’s sponsored Investor Dashboard.

Exclusive article by Susan R. Miller

New York’s medical cannabis program has developed substantially over the past several years and is now dominated by publicly traded companies. While it appeared that 2019 would be the year that the Big Apple would become the 12th state to legalize the recreational use of cannabis, the Marijuana Regulation and Taxation Act failed in the waning days of the legislative session. Despite this setback, many remain confident legalization of cannabis for recreational use is in the cards for New York. In this review, we take a look at the history of the medical cannabis program, the existing marketplace and the potential for future growth.

History and Program Rules

On September 11, 2014, New York Gov. Andrew Cuomo signed into law the Compassionate Care Act. It allowed doctors to prescribe marijuana in a non-smokable form to patients with serious ailments that are included on a predefined list of 14 conditions ranging from HIV/AIDS to Parkinson’s disease and which must be accompanied by a complicating condition such as chronic pain, seizures or wasting syndrome. A complete list is available here.

Pursuant to the Compassionate Care Act, there is a $50 application fee. However, the Department of Health is currently waiving the $50 fee for all patients and their designated caregivers.

The Medical Marijuana Program, which operates under the state’s Department of Health, oversees the certification, purchase and dispensing of medical marijuana. The program also handles the certification of practitioners and dispensaries.

A patient would have to be certified by a practitioner to obtain medical marijuana and that practitioner would be a physician, trained by and registered with the Department of Health, licensed by the state, and qualified to treat the serious condition for which the patient is seeking treatment.

The excise tax on medical marijuana in New York is a seven percent tax on the gross receipts from medical marijuana sold or furnished by a registered organization. The sale of medical marijuana, as well as the sale of related products to administer medical marijuana, are exempt from sales tax.

Since its initial enactment, however, a number of improvements have been made to that law including:

• The authorization of nurse practitioners and physician assistants to certify patients for medical marijuana, thus expanding the scope of who can prescribe.
• Increasing the number of organizations registered to manufacture and dispense medical marijuana.
• Expanding the list of qualifying conditions to include chronic pain, post-traumatic stress disorder and any condition for which an opioid may be prescribed.
• Allowing registered organizations to wholesale to other registered organizations.
• Allowing registered organizations to deliver medical marijuana products to the homes of patients or their caregivers.

As a result of this expansion, the number of certified patients skyrocketed by a whopping 1,124 percent to more than 112K, while the number of registered medical practitioners increased from 611 in 2016 to 2,638 as of January 2020.

Existing Market

The U.S. Census Bureau estimates that New York state’s population in 2017 was 19.85 million, of which 14.9 million (74.9 percent) are 21 or older. Using NYS-specific data on marijuana use as reported in the 2016 National Survey on Drug Use and Health, the New York State Department of Health estimated 8.5 percent, or approximately 1.27 million residents, currently use marijuana in one form or another.

The most common conditions among medical marijuana patients are: chronic pain (53.16%), neuropathies (14.59%), and cancer (12.8), according to New York Department of Health data. Patients between the age of 51 and 60 make up the greatest percentage of certifications (23.06%), followed by those between the ages of 61 and 70 (19.21%).

There are currently ten vertically integrated registered organizations in New York state, each with the ability to operate up to four dispensaries. At this time, 37 of the possible 40 dispensaries are open.

The first five companies obtained their licenses in In July 2015.  These original five were all private at the time, but three have commenced trading publicly subsequently:

In July 2017, five more providers were licensed. All of the second group of license holders trade publicly at this time, though they were private at the time they received the licenses:

• New York Canna, DBA The Botanist, which was acquired by Acreage Holdings (CSE: ACRG) (OTC: ACRGF)
• Fiorello Pharmaceuticals, which was acquired in August 2019 by Green Thumb Industries (CSE: GTII) (OTC: GTBIF)
• Valley Agriceuticals, whose parent company Gloucester Street Capital LLC, merged with Cresco Labs (CSE: CL) (OTC: CRLBF) in October 2019;
• Citiva Medical, which was purchased in February 2018 by publicly traded iAnthus Capital Holdings (CSE: IAN) (OTC: ITHUF)
• PalliaTech NY, which in August 2018 changed its name to Curaleaf (CSE: CURA) (OTC: CURLF) before going public

These organizations can grow, manufacture, distribute and dispense medical marijuana to patients who have an approved medical condition.

Increasing demand is expected to favor the entry of new players into the market.

Form factors include: vape cartridge/pen, capsule, tablets, oil, oral spray, oral powder. Smoking medical marijuana is not allowed, though pods for vaporization are permitted. Edibles also are prohibited. Patients need to contact each registered organization to learn which products are available. Pricing varies among registered organizations.

Legalization for Adult-Use

On July 13, 2018, the New York State Department of Health released its report on the assessment of the potential impact of regulated marijuana. It concluded that the positive effects of a regulated marijuana market in New York outweighed the potential negative impacts, thus giving rise to expectations that the market would greatly expand.

Based on population usage, and the assumption that marijuana sells on the illegal market at $270 to $340 an ounce, the New York Department of Health estimated potential total tax revenue in the first year with a price of $297 and illegal market consumption of  6.5 million ounces ranges from $248.1 million (with a 7% tax rate) to $340.6 million (with a 15% tax rate). The estimated potential total tax revenue, with a price of $374 and illegal market consumption of 10.2 million ounces, ranges from $493.7 million (with a 7% tax rate) to $677.7 million (with a 15% tax rate).

In 2019, New York decriminalized the possession of amounts up to 2 ounces, making it a violation instead of a crime. Fines range from $50 for amounts of less than one ounce, to $100 for quantities between one and two ounces.

In his 2020 State of the State address, Gov. Cuomo reiterated his commitment to legalization for adult-use. He has promised to introduce legislation once again this year and has proposed the creation of a new state agency to oversee recreational and medical marijuana, as well as hemp. His proposal also would limit recreational sales to those over 21 to possess up to one ounce of marijuana and up to five grams of concentrated cannabis.

New York’s medical marijuana regime does not allow certified patients to cultivate or grow cannabis. Under the proposed adult-use regulations, consumers also would not be permitted to cultivate cannabis for personal use.

The legislation would also promote social equity in the cannabis industry through various programs. Cuomo said he hopes to work with Connecticut, New Jersey and Pennsylvania to coordinate policy reform efforts. He also has called for the State University of New York to create a cannabis and hemp research center.

Conclusion

While the medical cannabis program was slow to start in New York, several changes have helped it grow substantially. The market is served by a limited number of vertically integrated providers, with 8 of the 10 licenses held by publicly traded companies. Looking ahead, New York state could become one of the largest state markets for adult-use should the state move forward with legalization.

Susan R. Miller, an award-winning South Florida-based writer and editor, has spent her career writing about a wide range of subjects in print and online, with a focus on the business of healthcare, law, and nonprofits. She launched her own PR and content marketing firm in 2013 and continues to write for a variety of clients and publications.

Published by NCV Newswire

CAMBRIDGE, Mass., Jan. 21, 2020 (GLOBE NEWSWIRE) — TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQB: TLLTF), a foundational technology cannabis platform comprised of assets to support brands worldwide, released the following letter today from the Company’s interim Chief Executive Officer Mark Scatterday.

Dear Shareholders:

As we progress in 2020, we are moving forward with a reinvigorated sense of purpose and energy. Our vision is clear: TILT supports cannabis businesses across the globe through our portfolio of innovative technology companies. From software solutions to inhalation technology and more, TILT helps over 2,000 brands and retailers achieve success in this ever-changing industry. While 2019 was a challenging year for public companies in our industry, l am encouraged and reassured knowing that we have such a strong and supportive group of people working together with us and toward the same goals.

The new year is off to a great start, following on the heels of a productive fourth quarter. A few recent updates include:

• The successful migration of Baker Technologies Inc. (“Baker”) clients into the Blackbird Logistics Corporation (“Blackbird”) platform quadruples existing clients across its software platform – right in time for the recent expansion of our product offering. This is an impressive feat, and with all these clients on a single software platform we have one of the largest footprints in the industry;
• Jupiter Research, LLC (“Jupiter”) releasing several new proprietary devices that we debuted in Las Vegas last month. We also have several new exciting opportunities on the horizon.

In support of our technology and innovation businesses, our plant touching assets continue to generate revenue and free cash flow which will help fund the expansion of Jupiter and Blackbird:

• In Massachusetts, we are working closely with our operations and construction team in Taunton to finalize our Certificate of Occupancy. With this additional capacity online (50,000 square feet), we expect to double our cultivation footprint and increase our packaging space. We are expecting to see a significant increase in revenue from this effort once complete. We have also been working closely with our affiliate partners and the Cannabis Control Commission (CCC) to revise legacy supply and services agreements that are not in line with our refined business focus or our approach to social justice and advocacy. This resulted in our friend Elev8 Cannabis receiving its provisional licenses in Massachusetts, and while additional obstacles remain, brings us one step toward our own recreational licenses in the State.
• In Ohio, our production facility is operational – we have purchased cannabis biomass from local providers and successfully produced cannabis products. We are finalizing our go-to-market strategy and expect revenue to follow shortly.

We will continue to innovate and lead the industry in supporting brands and retailers through our focus on technology and services. This continued progress shows the underlying and inherent value of TILT: a portfolio of complementary businesses driving growth across the global cannabis industry.

Sincerely,

Mark Scatterday
Interim Chief Executive Officer

About TILT

TILT Holdings serves cannabis brands worldwide through a strong network of portfolio companies committed to technological innovations that support long-term success. TILT services more than 2,000 brands and cannabis retailers across 33 states in the U.S., as well as in Canada, Israel, Mexico, South America and the European Union. As a market leader in cannabis technology and related products and services, the Company’s core assets include wholly-owned subsidiaries Jupiter, a company that focuses on the vast potential of inhalation through innovative design, development and manufacturing; Blackbird, a company that provides operations and software solutions for wholesale and retail distribution; and Baker, a CRM platform helping dispensaries grow their business. The Company also owns cannabis operations in states including Massachusetts, led by Commonwealth Alternative Care, Inc.; and in Pennsylvania, led by Standard Farms, LLC. Headquartered in Cambridge, Massachusetts, with offices throughout the U.S., and London, TILT has over 400 employees and has sales in the U.S., Canada and Europe. For more information, visit www.tiltholdings.com.

Original press release

ROCKFORD (WREX) — Illinois adult use cannabis has been legal for nearly a month, but some Rockford medical cannabis patients say they fear the shortage may affect their medication.

“Terror…” says Alicia Neubauer, about the thought of not having her medicine. Neubauer is an Illinois medical marijuana patient who says she is living with Triple Negative Metastatic Breast Cancer. A disease she says without cannabis would leave her with immense pain.

“[It] means that… I won’t have any relief. Cause the only time… that I actually have relief… of pain. is when I am sleeping,” says Neubauer.

She says having the drug helps her avoid waking with pain.

“It’s absolutely important and it helps to keep me asleep,” says Neubauer. “It helps to prevent break through pain keeping me awake.”

Alicia says doctors offer her opioid drugs for her nausea and pain, but she chooses cannabis.

“I choose cannabis because the side effects of the other medications are too great for me,” says Neubauer.

She says she’s been using medical cannabis for a little over two years, around the time she received her diagnosis. She says since the legalization of adult use cannabis, the products she says work best for her have become harder to find.

Mapleglen Care Center in Rockford agrees.

“We’re kind of doing battles with the growers every day to purchase as much as we possibly can,” says Amy Manganelli, Mapleglen Care Center owner. “And to get it onto our shelves as quickly as possible.”

The dispensary says the key to getting through the shortage will mean patience, something it understands is not an easy ask.

“Saying I know, and my heart’s breaking for you, and I’m sorry it doesn’t really cut it,” says Manganelli.

Mapleglen Care Center has the proper license to sell recreational, adult use cannabis, but it says it chooses not to. They say it’s because supplies are not stable enough.

“I really feel it’s my responsibility to stay medical,” says Manganelli.

13 News reached out to Rockford’s Sunnyside dispensary, but did not hear back. Last week it sent a statement:

“Sunnyside dispensaries continue to make medical patients our top priority and will be open for them only for Wednesday and Thursday of this week, reserving our supply to make sure they can always get their medicine.”

Sunnyside

By Alexxis Kerry

LONDON, Ontario, Jan. 20, 2020 (GLOBE NEWSWIRE) — Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF) is pleased to announce that further to its news release dated December 9, 2019, and December 23, 2019, it has closed the second and final tranche of its non-brokered private placement of unsecured convertible debentures (the “Debentures”) in the aggregate principal amount of $1,040,000 (the “Final Tranche”). This brings the total funds raised for this private placement to $3,155,000 (the “Offering”).

As previously announced in the Company’s December 9, 2019, news release, the Debentures will mature on the date that is 36 months from the date of issuance, bear interest at the rate of 10% per annum, computed on the basis of a 360-day year composed of twelve 30-day months, and payable semi-annually on the last day of June and December of each year, commencing on June 30, 2020. The Debentures will be issued at a price of $1,000 per Debenture with each Debenture being convertible, at the option of the holder, into 5,000 common shares in the capital of the Company (each, a “Share”) at a conversion price of $0.20 per Share, subject to adjustments. The Offering is subject to final approval from the TSX Venture Exchange.

The Company expects that the proceeds of the Offering will be used for capital expenditures, equipment purchases and working capital purposes.

The Company has paid a cash finder’s fee in connection with the Final Tranche to a finder in the aggregate amount of $3,500, which represents 7% of the gross proceeds received from the investor introduced to the Company by the finder. Insider participation in the Offering totalled $760,000.

MI 61-101 Disclosure

Three insiders of the Company participated in the Final Tranche and, as such, the issuance of the Debentures to such insiders is a “related-party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). However, the issuance is exempt from: (i) the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b), as the shares into which the Debentures are convertible are not listed on a market specified in MI 61-101, and (ii) from the minority shareholder approval requirement of MI 61-101 by virtue of the exemption contained in Section 5.7(1)(a) of MI 61-101, as the fair market value of the Debentures does not exceed 25% of the Company’s market capitalization. A material change report was not filed by the Company 21 days before the closing of the Final Tranche as the level of insider participation was not known at that time and the Company moved to close the Final Tranche immediately upon satisfaction of all applicable closing conditions. In the view of the Company, this was reasonable in the circumstances because the Company wished to complete the Final Tranche as soon as possible.

The Offering will be conducted by the Company utilizing the “accredited investor” exemption of National Instrument 45-106 – Prospectus and Registration Exemptions, and also other applicable exemptions available to the Company.

The Debentures issued in the Final Tranche, and the shares into which the Debentures issued in the Final Tranche may be converted (collectively, the “Securities”), are subject to restrictions on resale under applicable Canadian securities laws for a period of four months and one day from January 20, 2020, the issue date of the Debentures issued in the Final Tranche.

None of the Securities have been or will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities, in any jurisdiction in which such offer, solicitation or sale would require registration or otherwise be unlawful.

ABOUT INDIVA

Indiva’s family of cannabis brands set the standard for quality and innovation. Indiva aims to bring its exceptional portfolio of products to Canadians and cannabis enthusiasts around the world as laws permit. Indiva’s production facility, based in London, Ontario, includes a craft grow operation and an extraction and manufacturing space, which can process 70 tonnes of biomass annually and produce safe, high-quality, cannabis-infused edibles. In Canada, Indiva will produce and distribute the award-winning Bhang® Chocolate, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, Gems™, and other derivative products through license agreements and joint ventures. Click here to connect with Indiva on social media and here to find more information on the Company and its products.

Original press release

Exclusive Interview with Legion of Bloom Co-Founder and Chief Procurement Officer Brandt Collings

California cannabis company Legion of Bloom uses a proprietary extraction process to develop its vape products. This year, the company is driving more revenue with cultivation and an expanding distribution platform. Co-Founder and Chief Procurement Officer Brandt Collings spoke with New Cannabis Ventures about the company’s market presence, funding and expectations for growth. The audio of the entire conversation is available at the end of this written summary.

The Company’s Founders

Collings, originally from Florida, was drawn to the cannabis market in California and moved to the state in 2009. He started his first farm in 2010 and developed an entrepreneurial sense for the industry. He and four other farmers (and friends) decided to pool their knowledge and assets to create Legion of Bloom as the recreational market began to take off in the state.

Together, the team is focused on creating a trusted brand. Russell Weisman serves as CEO; Matthew Woolley is the Vice President of Sales; Troy Meadows is the company’s Chief Marketing Officer; and Marcos Morales is Extract Director. A few months after starting the company, James Doherty joined as COO, and, more recently, Adam Banke joined as Director of Sales.

California Market Presence

Legion of Bloom has a 44,000-square-foot indoor facility in Oakland, California, and the company does manufacturing and distribution out of Santa Rosa. The company’s administrative offices are located at the latter site. Legion of Bloom distributes its products to approximately 200 dispensaries in the state.

Cultivation and Extraction

The Legion of Bloom team came from a background of outdoor and greenhouse growing, but the company had the opportunity to move inside in Oakland. Now, experimenting with a couple of different lighting technologies, it is focused on using grow methods to increase the plants’ cannabinoid and terpene content.

The company’s proprietary extraction method is a version of steam distillation adapted for the cannabis plant. Traditional steam distillation results in a high level of THC-to-CBN conversion, but Legion of Bloom’s method eliminates that conversion, according to Collings.

Over time, the company has used this method to scale while maintaining quality and yield. Right now, the company is able to do 350 to 400 pounds a week with a single shift, but its new machine will allow for 600 to 700 pounds per day with one shift, according to Collings.

Product Portfolio

The Legion of Bloom product portfolio includes its flagship product The Monarch, its California Sauce live resins and Pax pods. The Monarch is a single-origin, solventless cartridge available in half a gram or one gram. The California Sauce live resins, just launched in Q4 of 2019, are gaining a lot of traction, according to Collings. Legion of Bloom has been a Pax brand partner since 2017, and the company offers a strain-specific product, a one-to-one THC and CBD product and a live resin Pax Pod. There are no immediate plans to launch new products.

A Growing Distribution Platform

The company has always done self-distribution, but now, it is adding other brands in different product categories to its distribution platform. For example, the company took on Humboldt Trees as its first flower brand. The company is looking to add other companies, including an edible brand and a dabbable, solventless brand. The goal is to build a platform that supports a handful of brands with demos, sales and detailed reporting, according to Collings. Legion of Bloom is aiming to create a house of brands, one in each category, to round out its portfolio.

Looking Beyond California

Moving beyond California has always been of interest to Legion of Bloom. Rather than investing heavily in infrastructure, the company would expand its presence through licensing agreements. Recreational states are of the most interest. Collings notes Illinois as a market of interest, as well as Arizona and Nevada. He would also like to find a way into the Florida market but acknowledges the high barrier of entry.

Funding

The founders self-funded Legion of Bloom until November 2018, at which point the company took on $3 million in funding (a minority stake), according to Collings. Now, the company is in the process of raising $4 million to help support its operating expenses and expansion plans.

Going forward, Collings is interested in funding via an equity deal or a convertible note. He recognizes the possibility of fundraising via debt financing and remains open to any conversation around raising capital.

With the shrinking capital markets in mind, M&A will be a big topic of discussion this year, according to Collings. He foresees many companies merging, acquiring others, or being acquired. Becoming profitable, focusing more on metrics like EBITDA and profit margin, will be a key focus for the industry this year, he notes.

Ramping Up in 2020

Legion of Bloom is aiming to go from $6 million in brand sales to $12 to $15 million this year. The company will also add revenue with its cultivation operations, which is expected to generate an additional $20 to $30 million in revenue when completed. With a focus on ramping up this year, that number could be a little less, according to Collings. The distribution platform adds another revenue stream.

While tax implications and capital issues remain a challenge, the 44,000 square feet of cultivation represents a significant opportunity for Legion of Bloom in 2020, according to Collings.

To learn more, visit the Legion of Bloom website.

HEXO Corp Announces US$20.0 Million Registered Direct Offering

OTTAWA, Jan. 17, 2020 (GLOBE NEWSWIRE) — HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced it has entered into a definitive agreement with institutional investors for the purchase and sale of 11,976,048 common shares at an offering price of US$1.67 per share for gross proceeds of US$20.0 million before deducting fees and other estimated offering expenses, pursuant to a registered direct offering (the “Offering”). The Company has also agreed to issue to the investors common share purchase warrants to purchase 5,988,024 common shares of the Company. The warrants will have a five year-term and an exercise price of US$2.45 per share.

The Company expects to use the net proceeds from the Offering for working capital and other general corporate purposes, including funding the Company’s research and development to further advance the Company’s innovation strategies. The Offering is expected to close on or about January 22, 2020, subject to the satisfaction of customary closing conditions, including, but not limited to, the listing of the common shares on the Toronto Stock Exchange and the New York Stock Exchange and any required approvals of each exchange.

A.G.P./Alliance Global Partners is acting as sole placement agent for the Offering.

The Offering is being made in the United States only under the Company’s amended and ‎restated short form base shelf prospectus dated December 14, 2018 (the “Base Shelf ‎Prospectus”), filed with the securities regulatory authorities in each of the provinces and ‎territories of Canada, and the corresponding registration statement on Form F-10 (the ‎‎“Registration Statement”) filed by the Company with the U.S. Securities and Exchange ‎Commission (“SEC”) under the U.S./Canada Multijurisdictional Disclosure System (“MJDS”). ‎The Company will file a prospectus supplement (the “Supplement”) to the Base Shelf Prospectus on a non-offering basis with applicable securities regulatory authorities in Canada. The Supplement will also be filed with the SEC as part of the Registration Statement under the MJDS. Copies of the Supplement and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com and copies of the Supplement and the Registration Statement will be available on EDGAR at www.sec.gov.

Copies of the Supplement, the Base Shelf Prospectus and the Registration Statement may also be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 36th Floor, New York, NY 10022 or via telephone at 212-624-2060 or email: prospectus@allianceg.com.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About HEXO

HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and ‎distributes innovative products to serve the global cannabis market. Through its hub and spoke ‎business strategy, HEXO is partnering with Fortune 500 companies, bringing its brand ‎value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to ‎established companies, leveraging their distribution networks and capacity. As one of the largest ‎licensed cannabis companies in Canada, HEXO operates facilities in Ontario and Quebec. ‎The Company is also expanding internationally and has a foothold in Greece to establish a ‎Eurozone processing, production and distribution centre. The Company serves the Canadian ‎adult-use markets under its HEXO Cannabis, Up Cannabis and Original Stash brands, and the ‎medical market under HEXO medical cannabis. For more information please visit hexocorp.com. ‎

Original press release

Cultivation to Commence Immediately

TORONTO, Jan. 16, 2020 /CNW/ – TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend” or “the Company”), the first and only global cannabis company licensed for sales in Canada, the U.S., and the EU, today announced that TerrAscend NJ, LLC (“TerrAscend NJ”) has been issued a permit to cultivate medical marijuana by the New Jersey Department of Health (“NJ DOH”). TerrAscend NJ is the second entity to receive its cultivation permit among the six applicants chosen by the NJ DOH in December 2018. Cultivation operations will commence immediately at its facility in Boonton Township, located in northern New Jersey.

In December 2018, TerrAscend was awarded the right to apply for one of six permits, out of 146 applications, for a vertically-integrated permit to cultivate, process and dispense medical cannabis in the State of New Jersey. After securing additional processing and dispensing approvals, the full permit will allow TerrAscend NJ to operate a production facility and up to three Alternative Treatment Centers (“ATCs”), or dispensaries, in the North region of New Jersey. TerrAscend’s minority partners in TerrAscend NJ are BWH NJ, LLC and Blue Marble Ventures, LLC.

Currently a medical-use market, New Jersey is the 11th largest state in the U.S. with nearly 9 million residents. According to the NJ DOH, as of January 2020, over 66,000 patients have gained access to the state’s medical marijuana program, of which the highest density of patients is concentrated in the populous North region where TerrAscend is one of four permittees. The number of registered medical marijuana patients in the state has tripled since the beginning of 2018. The state currently has a robust list of 17 approved debilitating medical conditions, including opioid use disorder, post-traumatic stress disorder (PTSD), anxiety and chronic pain, which were all added over the past year.

We are pleased to receive our cultivation permit in New Jersey after a rigorous inspection of our facility and operating procedures by the NJ DOH. Achieving this important regulatory milestone indicates that the TerrAscend model of compliance, quality and safety resonates with state regulatory agencies. Bringing safe and effective products to patients is our priority, and we look forward to introducing the TerrAscend house of brands to the state’s medical-use patients.

TerrAscend has secured a 16-acre site in Boonton Township, located in Morris County. Construction of a 227,000 sq. ft. production facility is underway with the first phase covering approximately 80,000 sq. ft. of cultivation, processing and support space. This facility is expected to be fully operational within the first half of 2020. Future expansion plans are anticipated to provide an additional 120,000 sq. ft. The scaled cultivation capacity of the Boonton Township facility will supply cannabis products and brands to TerrAscend’s ATCs, as well as to wholesale customers. In addition, the facility could supply cannabis to the projected 15 new retail ATCs expected to be awarded permits by NJ DOH this year.

The Company plans to leverage the strong brand equity and operational expertise of The Apothecarium as its retail banner in New Jersey. The Apothecarium has four existing locations in San Francisco and Las Vegas, and is recognized as one of the nation’s premier dispensaries. The first Apothecarium-branded ATC is slated to open in Phillipsburg, NJ in Q2 2020, followed by two additional ATCs upon regulatory approval. The Company’s Phillipsburg ATC will be the state’s first in Warren County and the first East Coast location of The Apothecarium. TerrAscend intends to introduce New Jersey patients to the Company’s family of brands and formulations, including State Flower, Ilera and its leading premium Haven St. brand from Canada.

The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

About TerrAscend

TerrAscend provides quality products, brands and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the U.S., the Company participates in the medical and legal adult-use market across Canada and in several U.S. states where cannabis has been legalized for therapeutic or adult use. TerrAscend is the first and only cannabis company with sales in the U.S., Canada, and Europe. TerrAscend operates a number of synergistic businesses, including The Apothecarium, an award-winning cannabis dispensary with several retail locations in California and Nevada; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, Pennsylvania’s premier medical marijuana cultivator, processor and dispenser; Ascendant Laboratories Inc., a biotechnology and licensing company committed to the continuous improvement of cannabinoid expressing plants; Solace RX Inc., a proposed Drug Preparation Premises (DPP) focused on the development of novel formulations and delivery forms; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles. For more information, visit www.terrascend.com.

Original press release

Agreement highlights Company’s strong commitment to Canada’s medical cannabis community

MONCTON, New Brunswick, January 16, 2020–(BUSINESS WIRE)–Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the “Company” or “Organigram”), a leading licensed producer of cannabis, is pleased to announce it has secured a supply agreement with Medical Cannabis by Shoppers, the online medical cannabis platform by Shoppers Drug Mart Inc. (“Shoppers”).

This agreement reflects the companies’ shared commitment to offering Canadian consumers access to high quality medical cannabis products.

We are extremely proud to partner with Shoppers and believe that our complementary approach to the medical cannabis market will offer the full strength of our combined national networks to Canadian patients.

We are pleased that we will now be able to offer medical cannabis patients across the country even greater access to our growing portfolio of high-quality products.

Under the terms of the agreement, Organigram will provide Shoppers with a wide range of products including dried flower, oils and other future derivative products as they become available. The agreement is for a three-year term subject to renewal for an additional two years.

Since our inception, patients have been an important priority for our team. We want patients to feel supported and to know that we are working on developing products, technology and partnerships with their best interests in mind.

About Organigram Holdings Inc.

Organigram Holdings Inc. is a NASDAQ Global Select and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada.

Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult use recreational cannabis brands including The Edison Cannabis Company, Ankr Organics and Trailblazer. Organigram’s primary facility is located in Moncton, New Brunswick and the Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada).

Original press release

/ TOP THINGS TO KNOW

A new bill filed by House Agriculture Committee Chairman Collin Peterson (D-MN) and bipartisan cosponsors would force the Food and Drug Administration to allow the marketing of CBD as a dietary supplement.

Sen. Bernie Sanders (I-VT), a presidential candidate, urged marijuana business employees to unionize—and they seemed to listen, with an “overwhelming majority” at a Cresco Labs cultivation facility in Illinois voting on Tuesday night to do so.

New Hampshire lawmakers, frustrated with the initial advancement but ultimate failure of marijuana legalization bills in past sessions, are taking a new approach in 2020 that would legalize low-level cannabis possession and home cultivation without adding a commercial market—similar to neighboring Vermont’s law.

Rep. Earl Blumenauer (D-OR) weighed in on Wednesday’s congressional cannabis hearing in an interview with Marijuana Moment, saying that the Veterans’ Affairs Committee risks being seen “asleep at the switch” if it lets the Energy and Commerce panel vote on a veterans marijuana bill before they get around to it.

• “I hope they get their act together and move quickly.”

The U.S. Attorney for the District of Utah said he’s worried that marijuana legalization is going to “bring down our society.”

/ FEDERAL

The National Institute on Drug Abuse said that for its upcoming International Forum in June it will give priority to abstracts that “address any aspect of cannabis or cannabinoids, including but not limited to routes of administration, prevalence, neurobiology, drugged driving, potential therapeutic benefits, and harms.”

Customs and Border Protection’s Great Lakes Region office tweeted, “#TravelAdvisory All travelers are prohibited from possessing marijuana when crossing the border. If caught you may be subject to seizure, fines, arrest, or in the case of aliens, denial of admission into the U.S.”

A federal judge ruled that CBD maker Green Roads shouldn’t face liability claims in a class action lawsuit until the Food and Drug Administration completes a review of policies for such products.

Sen. Tammy Duckworth (D-IL) tweeted, “I had a great meeting this weekend with @LtGovStratton, @toihutchinson & other local leaders on how Illinois is working to make legalization of recreational cannabis equitable for all. I’ll keep working with them to make sure equity & justice are at the forefront of this process.”

Rep. Hakeem Jeffries (D-NY) tweeted, “The war on drugs has been a spectacular failure. Families have been broken up and communities decimated. It’s time to decriminalize marijuana and #EndMassIncarceration. NOW.”

Rep. Barbara Lee (D-CA) tweeted, “Congress must pass my Veterans Medical Marijuana Safe Harbor Act to provide protection for veterans and their doctors in using medical marijuana where it’s legal. It’s past time we acknowledged the benefits of marijuana to help our struggling veterans heal.”

Rep. Denver Riggleman (R-VA) tweeted, “I am proud to co-sponsor @RepAlexMooney’s 2nd Amendment Protection Act which allows law-abiding citizens to keep and bear arms as they legally use medical marijuana in their home state. Use of medical marijuana should not infringe on 2A rights.”

The House bill to require the Department of Veterans Affairs to study medical cannabis got four new cosponsors for a total of 101.

/ STATES

South Dakota Gov. Kristi Noem (R) discussed her willingness to sign a hemp bill that falls within certain “guardrails” during her State of the State speech.

Pennsylvania’s lieutenant governor facetiously tweeted, “I’m grateful alcohol is illegal, because it’s so deadly. Thankfully in PA, marijuana -a plant- is perfectly legal, accessible, regulated, and taxed, with zero documented overdose deaths. So we’re good. and safe. ”

Texas’s agriculture commissioner will host a public hearing on proposed hemp rules on January 22.

The Florida Senate asked the state Supreme Court to dismiss as moot a review of a proposed marijuana legalization ballot measure after organizers said they would not continue to seek to qualify the initiative for 2020.

Kentucky’s Senate president said he thinks “there’s a path forward on medicinal marijuana.”

Oregon lawmakers approved regulators’ request for funding to hire two specialists focused on hemp inspections and enforcement.

Minnesota’s Office of the Legislative Auditor found that regulators’ “internal controls were generally not adequate to safeguard financial assets and ensure compliance with selected legal requirements for the medical cannabis program.”

Illinois regulators posted the application for social equity cannabis business development fund loans. They also announced areas across the state that are eligible for Restore, Reinvest and Renew Program grant funding aimed at investing in communities that have been disproportionately harmed by the war on drugs.

Michigan regulators will hold a public hearing about proposed marijuana rules on February 12.

A Tennessee representative filed a bill to decriminalize marijuana and allow counties to hold cannabis legalization referendums.

Colorado lawmakers introduced legislation to protect workers from being fired for using marijuana on their own time.

A Maine representative filed a resolution calling on the federal government to increase marijuana businesses’ access to banks and insurance coverage.

Nevada collected $9.8 million in marijuana tax revenue in October.

Washington State regulators removed a marijuana transportation manifest form from their website due to “low to no utilization.”

ByTom Angell