NEW YORK, February 23, 2018 /PRNewswire/ --
According to a reportby Ameri Research Inc., the global legal cannabis market was valued at $14.3 billion in 2016 and is estimated to grow at a CAGR of 21.1% between 2017 to 2024 or culminating to $63.5 billion
According to CBC, Canada is one of only two countries, together with the Netherlands - that currently exports cannabis, allowing firms in Canada to take instant benefit of recent medical cannabis legalizations in more than 20 countries. CBC reported that the, "offerings in today's Canada medical marijuana market differ little from those used recreationally - the smokable plant and, more recently, oil extracts. More than 70 companies have licenses from the federal drug regulator, Health Canada, to cultivate, produce and sell medical marijuana, with more than half those licenses granted in 2017 or 2018."
Pivot Pharmaceuticals Inc. (OTCQB: PVOTF) also listed on the Canadian Stock Exchange under the Ticker 'PVOT'. Yesterday after the market close the company announced breaking news that, "it has entered into an arm's-length non-binding letter of intent (the "LOI") pursuant to which Pivot proposes to acquire (the "Proposed Transaction") Agro-Biotech Inc. ("Agro-Biotech"), a Health Canada ACMPR Licensed Producer located in Saint-Eustache, Québec. Following the completion of the Proposed Transaction, which is anticipated to occur by April 15, 2018, Agro-Biotech will continue to operate on a standalone basis.
The Proposed Transaction contemplates the acquisition by Pivot of: (i) all of the issued and outstanding shares (the "Agro-Biotech Shares") of Agro-Biotech; and (ii) all of the issued and outstanding shares (the "Property Holdco Shares") of a separate corporation (the "Property Holdco") which owns the premises occupied by Agro-Biotech. The consideration to be paid by Pivot to Agro-Biotech's shareholders for the Agro-Biotech Shares is comprised of: (i) a cash component of $25,000,000 payable in tranches; and (ii) an equity component of 35,000,000 common shares of Pivot to be issued at a deemed price per share of $2.0571 (representing a deemed value of $72,000,000), for an aggregate deemed value for the Agro-Biotech Shares of $97,000,000. The consideration to be paid by the Issuer to Property Holdco's shareholders for the Property Holdco Shares is a single cash payment of $3,600,000 payable within one year of the closing of the Proposed Transaction. The aggregate deemed value of the Proposed Transaction (for the acquisition of both the Agro-Biotech Shares and the Property Holdco Shares) is $100,600,000.
Pivot is a differentiated player in the cannabis industry due to its approach to improving dosing and bioavailability of cannabinoids with proven pharmaceutical and patented formulation and delivery technologies. Upon the addition of Agro-Biotech, the Company will become vertically integrated, controlling the entire manufacturing process from "seed to derivatives" and capturing margin along the entire supply chain.
Upon closing of the Proposed Transaction and Agro-Biotech being granted a Dealer's License, Pivot intends to extract and sell oils and isolates, formulate pharmaceutical grade preparations, perform analytical testing, undertake research and development, produce and sell derivatives and be able to conduct import and export activities in its Good Manufacturing Process (GMP) facility. This will ensure that our formulators will have the purest cannabinoids needed to develop and commercialize quality products using patented drug delivery technologies from cannabis oils. Securing the upstream supply ensures a competitive advantage for products derived from Pivot's patented formulation technologies. This includes semi-solid creams, gels, capsules, transdermal patches and ready-to-infuse beverage formulations.
Agro-Biotech operates a fully licensed, purpose-built, indoor hydroponic cannabis production facility located in Saint-Eustache, Québec, 40 kilometres north of Montréal. Phase I is now complete and Phase II and Phase III are expected to be completed by the end of September 2018, resulting in a total grow area of 75,000 sq. ft., capable of producing a cumulative 10,000 kgs per year. Agro-Biotech received its Producer's License from the Office of Medical Cannabis on January 12, 2018. Upon the anticipated issuance of a Sales License from Health Canada initial revenue is expected in June 2018. The facility design includes extraction and purification areas expected to be operational following the successful application and receipt of a Dealer's License from Health Canada. Agro-Biotech is one of only six Licensed Producers in Québec, Canada's second largest province with a population of over 8.4 million people. Owners of 75 high quality cannabis strains, including high expressors of CBD, Agro-Biotech's genetics will enable it to bring unique, differentiated cannabis products to market.
MedReleaf Corp. (OTC: MEDFF), Voted Top Licensed Producer at the 2017 Lift Canadian Cannabis Awards, is an R&D-driven company dedicated to innovation, operational excellence and the production of top-quality cannabis. Recently, the company announced that it has signed a Letter of Intent with Société des alcools du Québec to supply the Province of Quebec with a guaranteed volume of high quality adult recreational-use cannabis. Under the terms of the LOI, MedReleaf will supply the Quebec market with a minimum of 8,000 kilograms of cannabis products per year. As Canada's leading supplier of premium medical cannabis, MedReleaf is recognized for its commitment to cultivating consistent, safe, high-quality cannabis. At the voter-driven 2017 Lift Canadian Cannabis Awards, MedReleaf led the industry by winning LP of the year and placing in 10 different categories including first place awards in several product categories: Top Indica Flower, Top CBD Flower, Top High THC Flower, and Top High CBD Oil.
Cronos Group Inc. (OTC: PRMCF) is a globally diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two wholly-owned Canadian Licensed Producers regulated under Health Canada's Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. (Ontario), which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd. (British Columbia), which is based in the Okanagan Valley. On February 5, 2018, the company announce the launch of Cronos Australia Pty Ltd. and the grant of medicinal cannabis cultivation and research licenses. Cronos Australia is a 50/50 joint venture between the Group and NewSouthern Capital Pty Ltd, led by Mr. Rodney Cocks and Mr. Peter Righetti. Cronos Australia will serve as the Group's hub for Australia, New Zealand, and South East Asia, bolstering the Group's import/export supply capabilities and distribution network. Cronos Australia will leverage the Group's intellectual property and iconic brands to deliver premium cannabinoid based products to Australasia.
Organigram Holdings Inc. (OTCQB: OGRMF) is a leading licensed producer of medical marijuana based in Moncton, New Brunswick. On February 12, 2018, the company announced that it has received an expanded cultivation license from Health Canada related to its previously announced Phase 2 expansion. As a result of this approval, cannabis plants were moved into these new rooms on a rolling basis beginning on February 10, 2018. The Company will be in a position to begin staggered harvests from these new rooms by the third week of April. The remaining 13 rooms are expected to come on line by March 10 pending Health Canada approval. With the company's unique three-level canopy growing system, the 23 planned cultivation rooms represent an additional 10,800 kg/year of production capacity increasing the Company's capacity from approximately 5,200 kg/year to an estimated 16,000 kg/year.
Aurora Cannabis Inc. (OTCQX: ACBFF) is a world-renowned integrated cannabis company with an industry-leading reputation for continuously elevating and setting the global cannabis industry standard. Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis pursuant to Health Canada's Access to Cannabis for Medical Purposes Regulations. Recently, the company announced the closing of the previously announced strategic investment by Aurora in Liquor Stores by way of a non-brokered private placement. Liquor Stores intends to use the net proceeds from the Private Placement to establish and launch a leading brand of cannabis retail outlets, whereby it will convert some number of Liquor Stores' existing retail locations into cannabis retail stores and establish new cannabis retail stores. Liquor Stores will also use a portion of the proceeds to continue to strengthen its existing liquor retail brands by renovating current liquor store locations, and also for general corporate purposes.
Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/
FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.
For further information: Media Contact: email@example.com +1-877-601-1879
Subscribe to our Free Newsletters!
Donating blood is a life-saving act. Consider increasing your iron intake before and after you ...
Exfoliative dermatitis or erythroderma is a skin condition where the skin becomes reddened and ...
Alström syndrome, a rare genetic disorder due to ALMS1 mutations, occurs in the first year of ...View All