StaffIt’s time for your Daily Hit of cannabis financial news for June 6, 2018.
On The Site
The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TGOD) is getting into the beverage businesses. On June 6, 2018, the company announced the official launch of its global division focused solely on the beverage industry, appropriately named The Green Organic Dutchman Beverage Division. Recognizing the similarities between the beverage industry and the cannabis industry, TGOD’s new division will focus on the creation of branded products and supplying organic ingredients for global beverage brands.
Stifel Predicts Price Fall
Will the nationwide legalization of cannabis in the United States lead to falling cannabis prices? According to a recent report published by the financial services company Stifel Financial Corp., the answer is yes. Published on May 30, 2018, the report details various market pressures and predictions regarding how the legal cannabis market will over the next several years. The report predicts that a national cannabis industry would most likely see cannabis sell for a wholesale price of $2.00 per gram and a retail price for $3.50 per gram for medicinal and $5.50 for recreational.
Namaste Technologies
The California cannabis company known for its marijuana flower crowns and special holiday products, Lowell Herb Co., is teaming up with Namaste Technologies (NXTTF) to launch its products in Canada. Namaste signed a supply and distribution agreement with Lowell Herb to launch ultra premium Lowell Smokes products for the Canadian recreational and medical cannabis markets. In anticipation of Canada’s roll-out of legal recreational cannabis, the deal represents a strategic partnership between Namaste and Lowell Smokes to leverage Namaste’s resources and Lowell’s international brand appeal.
cannabisMD
The effects of legalized marijuana are being felt far and wide across different sectors of the economy, especially media, as cannabisMD.com has officially launched, aiming to be the destination for consumers to learn about medical marijuana and how to treat particular ailments.
Described as WebMD meeting cannabis and CBD, cannabisMD.com will provide potential patients a plethora of curated and original content, including peer-reviewed research, original video content and more, to give readers the opportunity to make better-informed decisions about medicinal marijuana.
In Other News
Aphria Inc.
Aphria Inc. (APH.TO) entered into an agreement with Clarus Securities Inc., to purchase, on a “bought deal” basis, 18,987,400 common shares of Aphria at a price of C$11.85 per share for aggregate gross proceeds of C$225,000,690. The company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 2,848,110 common shares at the offering price, exercisable in whole or in part at any time for a period ending 30 days from the closing of the offering. In the event the over-allotment option is exercised in full, the aggregate gross proceeds will be C$258,750,794.
MedMen Enterprises Inc.
MedMen Enterprises Inc. (MMEN) announced that it has signed a definitive agreement to acquire dispensary and cultivation assets from Florida based Treadwell Simpson Partnership and affiliates. As part of the transaction, MedMen will acquire Treadwell Nursery’s cultivation facility situated on 5 acres in Eustis, Florida and the right to open 25 medical marijuana dispensaries in the State of Florida. The Company will pay US$53 million, subject to a working capital adjustment, half of which will be satisfied in cash and the other half of which will be satisfied by way of issuance of common units of MM Enterprises
