Staff
It’s time for your Daily Hit of cannabis financial news for January 13, 2020.
On The Site
GW Pharmaceuticals
GW Pharmaceuticals plc (GWPH) reported preliminary, unaudited net product sales for the fourth quarter and full-year 2019 and key priorities for 2020. The cannabis-based biotech firm said that it expects total net product sales to be approximately $108 million for the fourth quarter and approximately $309 million for the year ending December 31, 2019.
The bulk of the fourth quarter sales for GW Pharmaceuticals comes from the epileptic drug Epidiolex, which are expected to be roughly $104 million for the fourth quarter and approximately $296 million for the full year. The company said that official results were expected to be posted on February 25th. Cash and cash equivalents on December 31, 2019, were approximately $536 million.
Acquisitions
Rogue Station
Rogue Station Companies, Inc. (OTC Pink: RGST) has acquired Brahman LLC, d/b/a Terpp Extractors, a Fort Collins, Colorado-based manufacturer of cannabis processing equipment in an all stock transaction. Rogue Station said it issued 3,000,000 shares of common stock to the owners of Brahman and immediately assumed management and operations.The value was not disclosed, but Rogue Station shares were lately trading at 13 cents, giving the shares an approximate value of $390,000.
Manifest 7
ManifestSeven (formerly known as MJIC) has acquired San Francisco-based legal cannabis delivery service company Lady Chatterley Health, which is focused on high-end women’s products for an undisclosed amount.
The company will be integrated into M7’s retail arm Weden, which has storefront and delivery operations across the state. The acquisition also gives M7 direct entry into the San Francisco market, complementing its licensed operations in Oakland and Brisbane.
In Other News
Westleaf
Westleaf Inc. (TSX-V:WL) (OTCQB:WSLFF) announced that following the closing of the merger of Westleaf and We Grow B.C. Ltd., Scott Hurd, President and Co-Founder, has resigned effective January 24, 2019. Scott will work to formally transition his responsibilities over the coming weeks and will be available to support the organization as needed as a strategic advisor. Ben Sze, the former CEO of We Grow and current CEO of Westleaf, will succeed Scott as the President of Westleaf.
“As a founder of Westleaf, it is with a heavy heart that I announce my resignation today,” states Scott Hurd. “It has been an honour and a privilege to lead Westleaf through a period of immense growth in a new and dynamic industry. Our recently completed transformative merger with We Grow has positioned Westleaf to be one of the leading ultra-premium cannabis producers in Canada with best in class realized retail pricing, strong brand awareness and significant scalability and growth potential. With the merger now closed and a new leadership team in place, I have made the difficult decision to step back from the company. I have great confidence in the new management team and board to lead Westleaf through its next stage of growth. I wish Cody, Ben and the rest of the Westleaf team and board continued success in 2020 and beyond.”
Namaste
Namaste Technologies Inc. (TSXV: N) (OTCMKTS: NXTTF) announced that Choklat Inc., an Alberta-based craft chocolate manufacturer, and chocolatier in which Namaste holds a 49% equity position, has received a processing license from Health Canada to produce a line of chocolate bars, drink mixes and infused sugar.
“Receiving the processing license from Health Canada is a significant achievement and milestone,” said Brad Churchill, CEO of Choklat. “We look forward to introducing our cannabis-infused product line, products with a pure chocolatey taste with no aftertaste, across Canada leveraging the extensive B2B sales channels that CannMart Inc. has built. Our high-quality cannabis-infused bars and beverages will be based on our own chocolate recipe made from a special cocoa bean sourced from the jungles of South America. This is an exciting time for Choklat, CannMart, and Namaste as we enter the competitive cannabis 2.0 landscape.”
Neptune Wellness
Neptune Wellness Solutions Inc. (Nasdaq: NEPT) (TSX: NEPT) said it sold 1,964,695 shares of Acasti Pharma Inc. (Nasdaq: ACST) for net proceeds of US$4 million as part of a monetizing process for the Company’s non-core investments. Neptune still owns 1 million shares in Acasti. The net proceeds are intended to be channeled towards the deployment of Neptune’s cannabis 2.0 products.
