MjLink Cannabis Business News and Press
The cannabis company said $22 million Organigram shares were received at closing, and up to $13 million more will be received on achieving earn-out milestones
AgraFlora Organics International Inc () () (FRA:PU31) has said it and its shareholders have struck an agreement to sell The Edibles & Infusions Corporation (EIC), an entity in which AgraFlora owns 43%, to Organigram Holdings Inc (TSE:OGI) (NASDAQ:OGI) for $35 million.
The Vancouver, British Columbia-based company which grows, distributes, and markets premium cannabis and cannabis-infused products, said that the EIC transaction “strongly positions” AgraFlora with its net share of up to $35 million in aggregate proceeds as it continues to evolve its competitive strategy within the changing global cannabis industry.
“AgraFlora and Organigram have enjoyed working towards the closing of the EIC Transaction,” AgraFlora CEO Elise Coppens said in a statement.
READ: AgraFlora Organics International to sell non-core subsidiary AAA Heidelberg
Coppens noted that the EIC facility was designed to handle both smaller-batch artisanal manufacturing and, “more importantly, large-scale nutraceutical-grade and high-efficiency production with view to gaining EU GMP certification.”
AAA operates an 8,800 square foot (sq ft) indoor growing facility in London, Ontario
AgraFlora Organics International Inc (CSE:AGRA) (FRA:PU31) (OTCPINK:AGFAF), the cannabis-focused company, said it had struck a definitive agreement to sell its wholly-owned subsidiary AAA Heidelberg Inc (AAA) for around C$1 million in cash.
READ: AgraFlora Organics names Canadian cannabis industry veteran Elise Coppens as its new CEO and board director
AAA operates an 8,800 square foot (sq ft) indoor growing facility in London, Ontario and the closing of the deal is expected to occur in the second quarter of 2021.
"With the positive developments being experienced in Delta, BC at our Propagation Services Canada facility, the AAA Heidelberg subsidiary was deemed to be non-core to the company," said Elise Coppens, chief executive and director of AgraFlora.
"Further, streamlining AgraFlora’s strategy, focusing on our core assets and benefiting from the cash proceeds of this Transaction are all high priorities for us at this transformative time.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products
Australis Capital Inc (CSE:AUSA) (OTC:AUSAF) (FRA:AC4) announced Wednesday that it has completed the first stage of its previously announced acquisition of Nevada cannabis company Green Therapeutics LLC (GT), by purchasing one of its subsidiaries.
The subsidiary contains a number of unregulated assets, including the GT brands and certain ancillary agreements such as brand licensing and management agreements. Subsequently, the company will complete the acquisition of GT itself. In total, Australis will pay to the holders of the GT membership interests between C$8 million and C$10 million for 100% of the outstanding membership interests of both GT and the subsidiary.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products. GT was co-founded by former MedMen president — and current Australis COO — Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts.
READ: Australis Capital finalizes definitive agreement to acquire cannabis company Green Therapeutics
"We continue to execute at a high pace and will be accelerating our growth, now that the first stage of the GT transaction is closed," CEO Terry Booth said in a statement. "... the GT team brings productive and valuable cannabis operations and assets, very deep connections in the Nevada cannabis industry and elsewhere, and access to a host of potential partnerships and transactions. The credibility that GT has built in the Nevada market and beyond is of great value as we continue to build a new type of [multi-state operator]. Leveraging our majority ownership of ALPS creates other unique opportunities to scale the GT brands and positions us exceptionally well to capitalize on the enormous opportunity in the US cannabis space."
Australis Capital Corp (CSE: AUSA- ITC: AUSAF) CEO Terry Booth joined Steve Darling from Proactive with news the company has closed their 51% acquisition of ALPS, which is a global leader in facility design, construction management and (post) commissioning services to the horticultural sector.
Booth talks about the turning point for the company with this move as Australis now becomes a revenue-generating company.
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1933 Industries is a vertically-integrated, growth-orientated company, focusing on the cultivation and manufacturing of cannabis consumer branded goods in a wide range of product formats. Operating through two subsidiaries, the company controls all aspects of the value chain with cultivation, extraction, processing, and manufacturing assets supporting its diversified portfolio of cannabis brands and licensing partners. The company owns 91% of Alternative Medicine Association LLC (AMA), and 100% of Infused MFG LLC.
The “1933” in the company name is a nod to the year when the prohibition of alcohol ended in the US. Today, 1933 Industries aims to capitalize on opportunities that have come as a result of the industry legalization in a collection of US states and is focused on the high tourism Nevada market.
1933 Industries has two main subsidiaries. The first is Alternative Medicine Association (AMA), a licensed medical and adult-use cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis-based products and manufactures third-party brands. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to offer medical patients and recreational users alike a cannabis experience that’s exceptional, potent, and consistent in quality. AMA’s products include craft cannabis premium tier bud flower, pre-rolls and concentrated cannabis products such as Cake Batter, Crumble and Sugar, Live Resin, Shatter, Diamonds; vape pens and distillate oil.
The second subsidiary is Infused MFG, a Las Vegas-based manufacturer of hemp-based, cannabidiol (CBD) infused products. Infused MFG’s product line includes topicals, creams, vapes, elixirs, capsules, dabs, lip balms and pre and post-workout recovery sports products. The subsidiary manufacturers its products under its Canna Hemp brand, which utilizes the power of hemp and CBD to bring natural wellness.
In 2020, 1933 Industries appointed Paul Rosen as its CEO. Rosen is no stranger to the cannabis industry, having previously co-founded and served as CEO of PharmaCan Capital Corp that was later rebranded to The Cronos Group. The company also appointed experienced finance industry professional Tricia Kaelin as the company’s new chief financial officer.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products
() () (FRA:AC4) said Friday it had executed a definitive agreement to acquire Nevada-based cannabis company Green Therapeutics LLC.
GT is an award-winning, Nevada-based cannabis company with a strong brand portfolio of high-end dried flower and luxury derivative products. GT was co-founded by former MedMen president – and current Australis COO - Duke Fu and is led by a strong team of medical professionals and pharmaceutical manufacturing experts.
The company operates an 8,000 square foot facility in Nevada and its brands are carried by 52% of Nevada-based dispensaries, with further market penetration expected as production capacity is expanded. GT also has a manufacturing license in Oklahoma and a 25% interest in an extraction and processing license in Missouri.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
Australis said the transaction, once completed, will be immediately accretive to its results as the current Nevada assets - which are the subject of the settled legal dispute - are non-operational. It is anticipated that GT's brands will be scaled up across multiple US jurisdictions.
All told, the final price tag for ALPS could be between C$13.7 million and nearly C$26 million, and Australis also holds an option to acquire the remaining 49% of ALPS
() () (FRA:AC4) announced Tuesday it has completed the acquisition of a 51% ownership interest in 2750176 Ontario Inc (ALPS).
In addition, Australis as expected named Terry Booth - an ALPS principal and former CEO of Aurora Cannabis Inc (NYSE:ACB) - as its new CEO.
Under the deal, as an initial consideration, Australis will spend C$10 million in company shares and C$2 million in cash. All told, the final price tag could be between C$13.7 million and nearly C$26 million. Australis also holds an option to acquire the remaining 49% of ALPS over three years.
READ: Australis Capital teams up with 3 Rivers Biotech to offer plant tissue culture to growers
CEO Booth also has been appointed to Australis' board of directors. He takes over from Dr Duke Fu, who has been serving as the company's Interim CEO since November 2020. Dr Fu has been appointed COO and will remain on the board while Thomas Larssen, founder of ALPS, will remain as president of ALPS.
Coppens’ previous roles have included but are not limited to serving as president of Bloomera, marketing director for Aurora Cannabis, and the director of international sales for Ample Organics
AgraFlora Organics International Inc () (FRA:PU31) (OTCPINK:AGFAF) announced Monday that Canadian cannabis industry veteran Elise Coppens has been appointed as its new CEO.
Coppens was also named to the company’s board of directors. Both appointments are effective from March 8 but subject to the final acceptance of the Canadian Securities Exchange.
During her career in the Canadian cannabis industry, AgraFlora noted that Coppens’ roles have included but are not limited to serving as president of Bloomera, marketing director for Aurora Cannabis, and the director of international sales for Ample Organics.
READ: AgraFlora Organics anticipates first PSC sales and revenue in summer of 2021
“I would like to thank the board of AgraFlora for welcoming me to the organization and I look forward to implementing my vision for the company immediately,” Coppens said in a statement. “AgraFlora has great assets and human capital, and with that foundation I am confident that we can add great value to the Company for the benefit of all stakeholders.”
1933 Industries (CSE: TGIF- OTCQB: TGIFF) CEO Paul Rosen joined Steve Darling from Proactive to bring news the company has completed their recent oversubscribed financing bringing in over 5 million dollars.
Rosen sharing with Proactive this capital along with some work on the balance sheet has put the company in a much better position. Rosen also talking about some things they plan on doing to help with yields from their operations.
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The two companies will work together to jointly market the 3 Rivers offering to growers and eventually provide access to other commercial-ready solutions in pest control, pathogen testing and genetic fingerprinting
Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) is teaming up with agricultural technology company 3 Rivers Biotech Inc on a tissue culture joint venture, the company announced Wednesday.
3 Rivers specializes in commercial-scale micropropagation, or plant tissue culture (PTC), for cannabis, hemp and traditional crops.
The two companies will work together to jointly market the 3 Rivers offering to growers and eventually provide access to other commercial-ready solutions in pest control, pathogen testing and genetic fingerprinting.
READ: Australis Capital buys 51% stake in cannabis facility design/construction company ALPS
Under the terms of the partnership, Australis will own 15% and 3 Rivers will own 85% of the joint venture. 3 Rivers will provide access to its intellectual property and services, products and solutions to Australis-sourced clients through the joint venture.
The company's 3Q results were impacted by a number of non-cash impairment charges against legacy assets and operations that do not feature heavily in its future trajectory
() () (FRA:AC4) reported its third quarter 2021 results on Monday evening that saw the company end a transformational period with $7.6 million in cash.
Revenue for the quarter came in at $90,000, consisting of consulting fees from BAMM and technology revenue from its Cocoon business, both legacy businesses that do not feature heavily in the Las Vegas-based company’s future plans.
In a statement accompanying the results, the cannabis company said it was “positioned for rapid growth” following the closing of two major transactions to acquire cultivation facility construction firm ALPS and Green Therapeutics, a Nevada-based cannabis company.
READ: Australis Capital buys 51% stake in cannabis facility design/construction company ALPS
Australis plans to leverage an ALPS-driven expansion model to scale up the Green Therapeutics brands throughout the US after both deals close by the end of March.
Since its management buyout from Aurora Cannabis in May 2020, ALPS has built a blue-chip roster of global customers and a growing pipeline of potential new deals
Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) has reached a definitive agreement to acquire 51% of the issued and outstanding shares of cannabis facility design company ALPS, the company announced Wednesday.
Australis will pay between C$13.7 million and nearly C$26 million in total consideration, the company said. Initially, the company will pay C$10 million in either common shares at a price of C$0.20, cash, or a mixture of both. An additional C$2 million will be paid once the deal closes, and a C$1.7 million indemnity holdback to follow after 18 months.
The agreement also has an option for Australis to acquire the remaining 49% within three years. If sufficient milestone payments are made (the maximum milestone payment is $24 million in three installments if ALPS hits cumulative revenues of C$108.7 million and EBITDA of C$48.9 million), the payments will count in part toward that option.
READ: Australis Capital says nearing completion of its acquisitions of ALPS and Green Therapeutics
Since its management buyout from Aurora Cannabis in May 2020, ALPS has built a blue-chip roster of global customers and a growing pipeline of potential new deals, the company said. ALPS is currently executing on a number of contracts, including Aurora, Cann Group, Vertical Harvest and Aldershot Greenhouses.
The company said Propagation Services Canada, its flagship cultivation asset, is continuing its momentum towards first commercial sales
AgraFlora Organics International Inc () (FRA:PU31) (OTCPINK:AGFAF) has said Propagation Services Canada Inc (PSC), its flagship cultivation asset located in Delta, British Columbia, is continuing its momentum towards first commercial sales and is expected to report initial revenues in the summer of 2021.
The cannabis firm noted that the first commercial crop for sale will include three proprietary strains - Mimosa 37, Kosher Kush, and Gelato - which it said have been selected for their strong demand in Canada’s dried flower market, as well as their growing attributes within the greenhouse environment which align with their low-cost high-THC cannabis attributes.
READ: AgraFlora Organics expects to enter Canadian edibles market in 1Q 2021
AgraFlora added that PSC has gathered valuable data from crops grown to date and continues to “develop and strategize to further aid in its positioning as a leader in low-cost product”.
The firm also said recent modifications and calibrations provided by an international partner to existing drying rooms have allowed PSC to almost double anticipated drying capacity for a minimal investment, and that PSC will be optimizing its propagation operations by fine-tuning its climate strategy to produce healthy, rooted cuttings more quickly with high success rate monitoring irrigation mixtures to produce custom nutrient formulations for each stage of plant growth.
() () aims to build companies through early-stage, opportunistic, and diversified investments in the cannabis value chain in the US and abroad.
The Nevada-based company’s business and assets include investments in Cocoon Technology LLC, , Green Therapeutics LLC, Quality Green, Folium Biosciences, and land assets in Washington state and Michigan.
Australis was spun out from cannabis behemoth Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) in September 2018 as its US investment vehicle. Aurora is not allowed to invest in US cannabis assets due to Toronto Stock Exchange and NYSE listing rules. Australis is therefore Aurora’s arm to establish a foothold in the US, before a potential US federal legalization shift.
As part of the new strategy to scale up its award-winning brands across the US and global cannabis markets, the company is seeking a 51% interest in cash-flow-healthy ALPS - the world’s premier design, construction management, commissioning, and post-commissioning consultancy for horticultural crops such as cannabis. Australis is also seeking 100% acquisition of the outstanding membership interest in Nevada-based cannabis cultivator Green Therapeutics (GT).
But the ALPS acquisition - expected to close in late February 2021 - is central to the company’s new growth blueprint.
The company is seeking a 51% interest in ALPS and the 100% acquisition of the outstanding membership interest in Green Therapeutics
() () said Tuesday it is progressing well towards the completion of its proposed acquisitions of ALPS and Green Therapeutics LLC (GT).
Australis is seeking a 51% interest in ALPS and the 100% acquisition of the outstanding membership interest in Green Therapeutics, which includes the discontinuation of all previous litigation with Green Therapeutics.
“As per the Company's commitment to keep our shareholders fully informed and apprised, we are expecting to enter into definitive agreements with ALPS in short order,” the Nevada-based company said in a statement.
READ: Australis Capital acquiree ALPS inks deal to build a high-tech California greenhouse
The company said it has never been in a better position to achieve sustainable and profitable top line revenue growth going forward
1933 Industries Inc (CSE:TGIF) (OTCQB:TGIFF) reported that its company-wide total sales and open orders reached C$1.4 million in January, which it called a “significant milestone” as 1933 continues to scale-up production from its state-of-the-art Las Vegas cultivation facility.
The company also noted that its Alternative Medicine Association (AMA) cultivation subsidiary saw its revenue surge 113% increase year over year, which represents its strongest monthly sales to date since launching its AMA branded cannabis flower and pre-rolls in late August 2020.
“As seasoned operators, we are pleased with the progress to date and we believe that the company has never been in a better position to achieve sustainable and profitable top line revenue growth going forward,” 1933 Industries CEO Paul Rosen said in a statement.
READ: 1933 Industries expects stronger finances in fiscal 2021 as it looks to grow Nevada market share
He added: “Our execution strategy is completely aligned with our shareholders as we continue to build the business, utilizing our competitive advantages in operating large-scale cultivation to solidify a dominant position within our core market.”
Australis said the greenhouse facility is expected to save up to 90% on water use and 90% on labour compared to a traditional farm
() () (FRA:AC4) reported that ALPS, a company in which Australis is in the process of acquiring, has entered into an agreement with Bluehouse Greenhouse (BHGH) for the development of a 62 acre (2.7 million square foot), high-tech, fully integrated greenhouse for the sustainable production of vegetables in California.
Australis said the greenhouse facility, which will be developed by ALPS’ wholly-owned subsidiary Larssen Greenhouse Consulting (LGC), is expected to save up to 90% on water use and 90% on labour while growing 48 million pounds of produce on a footprint 1/30th the size of a traditional farm.
“With this sizeable $1.9 million project, ALPS continues to capitalize on opportunities and grow revenues at a rapid pace,” AUSA Interim CEO Dr. Duke Fu said in a statement.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
He added: “Conversion of ALPS's substantial business development pipeline in both the cannabis and traditional horticulture sectors will provide AUSA, once the acquisition is completed, with cash flow to further fuel the execution of its capital-light expansion strategy.”
The agreement for the 363,000 square foot facility includes the installation of a computerized compliance and maintenance management system, APIS
() () (FRA:AC4) announced Tuesday its acquisition target ALPS inked an agreement with Cann Group Limited to deliver end-to-end design, construction and commissioning services for the latter’s planned Australian greenhouse.
The $2.5 million agreement for the 363,000 square foot facility includes the installation of a computerized compliance and maintenance management system, APIS, and an ongoing service contract, the company said in a statement.
ALPS is a leading design, construction management, commissioning and post commissioning consultancy company for horticultural crops. The company has been involved in cannabis projects across the globe with a total grow area in excess of 340 acres for a total cultivation capacity of around 2,000,000 kilograms of cannabis per year.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
"This is a significant contract for us in terms of size, and acknowledges the respect ALPS has garnered in the global cannabis space,” ALPS president Thomas Larssen said in a statement accompanying the news.
Australis Capital's pending acquisitions of Green Therapeutics LLC and ALPS is part of its shift from an investment company into a US multi-state operator
Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) provided an operations update on its pending acquisitions of Green Therapeutics LLC and ALPS, as part of its shift from an investment company into a US multi-state operator (MSO).
Australis said Green Therapeutics (GT) saw a record 47% year-over-year increase in December sales, and recently reached an agreement to sell its land in North Las Vegas, which would result in AUSA receiving approximately US$1.95 million if the transaction is completed.
Meanwhile ALPS, through its wholly-owned subsidiary Larssen Greenhouse Consulting (LGC), has executed a number of contracts for the development of facilities for the cultivation of high-quality, low-cost crops such as fruits, vegetables and microgreens.
READ: Australis Capital unveils significant expansion moves with plans to acquire both Green Therapeutics and ALPS
“The new board is rapidly changing AUSA from an ‘investment’ company into a multi-state operator with expected meaningful revenue growth, resulting in profitable operations,” Australis Capital CEO designate Terry Booth said in a statement.
Australis Capital (CSE: AUSA- OTC: AUSAF) new CEO Terry Booth joined Steve Darling from Proactive with news the company is planning to utilize a new strategy for the company as they look to capitalize on a number of opportunities.
Booth shared with Proactive what that strategy will be and how he plans on measuring performance and making sure they are accountable to shareholders.
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