Tauriga Sciences Inc (OTCMKTS:TAUG) Reports Record E-Commerce Sales For April 2020: Designs Packaging For Black Currant Flavored CBG Infused Tauri-Gum

Tauriga Sciences Inc (OTCMKTS:TAUG) Reports Record E-Commerce Sales For April 2020: Designs Packaging For Black Currant Flavored CBG Infused Tauri-Gum

Tauriga Sciences Inc (OTCMKTS:TAUG) has posted record e-commerce sales in April 2020. The e-commerce arm of Tauriga continues to demonstrate overall strength, growth, and momentum.

Tauri-Gum available at five market locations

Tauriga receives strong demand for CBG and CBD infused versions of Tauri-Gum and Tauri-Gummies. The company is also receiving several international orders. It has reported gross margins of over 60% of the e-commerce segment. The company’s flagship brand – Tauri-Gum, is offered at the Beverly Drive Erewhon market. Tauri-Gum will be available at locations like Santa Monica, Venice, Pacific Palisades, Calabasas, and Los Angeles soon.

Completes package design for Black Currant Flavor

Tauriga has completed packaging for the black currant flavor of CBG infused Tauri-Gum. It is the second flavor of the CBG infused Tauri-Gum. The company has recently introduced Peach-Lemon flavored Tauri-Gum. It will introduce a third flavor of the CBG infused Tauri-Gum later this year.

Alibaba to list CBG infused Tauri-Gum on its e-commerce site

Alibaba has agreed to list CBG infused Tauri-Gum of Tauriga on its e-commerce site. The peach lemon and black currant flavored CBG infused Tauri-Gums comprise 80 mg of CBG isolate in each blister pack ($19.99). Alibaba also sells pomegranate, mint and blood orange flavor versions of CBD Tauri-Gum, Omega3/Collagen+ CBD Gummies, and plant-based CBD Tauri-Gummies. Tauriga has already established fulfillment centers across China.

Bags a large order from Japan

Tauriga is experiencing strong interest for its products through the portal of Alibaba. It has recently bagged a large purchase order from Japan. Tauriga has already fulfilled the order received from Japan-based Supermarket owner and received the payment. The company said its products are gaining significant acceptance and traction in Asia. Alibaba fulfills the needs of all the customers in Asia through the e-commerce segment.

Tauriga translates package into different languages

Tauriga has begun translating the package into various languages (Japanese and Chinese) to improve revenue opportunities.

Aegea prepares for coronavirus testing

Aegea Biotechnologies Inc is expanding its platform for the testing of coronavirus under a collaborative accord with Tauriga. The company will use its patented technologies for this initiative.  Founder and Chief Executive Officer of Aegea, Lyle Arnold Ph.D., said the company is excited to provide its patented technologies for COVID-19 testing.

Published at Tue, 05 May 2020 12:34:10 +0000

Aleafia Health Secures Health Canada Licence Amendment for Paris Production and Extraction Facility Phase II Expansion

Aleafia Health Secures Health Canada Licence Amendment for Paris Production and Extraction Facility Phase II Expansion

Aleafia Health Inc.’s (TSX: ALEF, OTC: ALEAF) (“Aleafia Health” or the “Company”) wholly owned subsidiary Emblem Cannabis Corp. (“Emblem”) has secured a Health Canada Licence Amendment for its Paris Facility’s 30,000 sq. ft. Phase II expansion, entirely dedicated to the extraction, production, packaging and distribution of finished cannabis products.

“The Phase II expansion, our crown jewel, permits an exponential increase in our ability to produce and sell high-margin cannabis health and wellness products in the medical, adult-use and international markets,” said Aleafia Health CEO Geoffrey Benic. “The Paris Facility’s state-of-the-art expansion, purpose built to meet EU-GMP standards, creates a unique competitive advantage with significant barriers to entry. Coupled with our ultra-low-cost outdoor cultivation, it sets us apart in the cannabis industry. This means greater breadth of formats, greater scale and automation, and ultimately higher margins as we utilize cannabis grown outdoors through our integrated production ecosystem.

“This breakthrough also accelerates our Cannabis 2.0 strategy and will allow us to produce new differentiated product formats. We have been preparing for months and have ordered equipment, completed formulations and have built up a large inventory of cannabis extracts to be used as input material for new formats for immediate use in the new facility. Now it’s time for execution.”

The Paris Facility licence amendment, granted on May 1, 2020, authorizes cannabis production in the entire expanded building. The Company expects to commence production and packaging operations at the Phase II expansion in the next two weeks.


The expansion will allow the Company to process and package all flower cultivated at its Port Perry outdoor cultivation site and its Niagara Facility. The expanded production facility increases the Company’s licensed extraction, packaging and processing area from 2,500 sq. ft. to 20,000 sq. ft. It features multiple automated packaging lines and rooms dedicated to the production of new product formats, along with in-house Quality Control analytical testing and R&D.

The expansion is purpose-built to meet European Union Good Manufacturing Practices (“EU-GMP”), which represents the highest standard of pharmaceutical-grade production in the world, and as a result provides the greatest possible access to global markets. Members of Aleafia Health’s senior management have previously led the build-out, certification and operation of multiple EU-GMP pharmaceutical production facilities.

For Investor & Media Relations:

Nicholas Bergamini, VP Investor Relations
1-833-TSX-ALEF (879-2533)
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.

Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.

Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top performing company prior to its graduation to the TSX.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

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Published at Mon, 04 May 2020 11:31:25 +0000

Puration Inc (OTCMKTS:PURA) Maintains Steady Sales Of EVERx CBD Sports Water During Coronavirus Crisis

Puration Inc (OTCMKTS:PURA) Maintains Steady Sales Of EVERx CBD Sports Water During Coronavirus Crisis

Puration Inc (OTCMKTS:PURA) is maintaining steady sales of EVERx CBD Sports Water during coronavirus pandemic. The company has built sufficient inventory to maintain sales growth from its production run before the onset of coronavirus lockdown.

Puration is engaged in the distribution of EVERx CBD Sports Water, which comprises a performance-enhancing formula, in the US, Latin America, Africa, and Europe. The company has developed EVERx Sports Water in association with Xtreme Technology. The product also comprises electrolytes, antioxidants, and alkaline pH besides infused CBD. It helps the athletes to improve performance on the field.

Scouts for the takeover of small cannabis infusion companies

Puration is scouting for the takeover of smaller cannabis infusion companies to strengthen its presence in the cannabis space. The company possesses expertise and resources to produce beverages by infusing cannabis. It is planning to expand its capacity, that comprises food infusion.

Acquires Hemp4mula CBD Confections business

Puration has completed the takeover of the Hemp4mula CBD confections business of Kaly. The takeover allows Puration to add CBD infused gum and gummies to its product line. Following the sale, Kaly will focus on cannabis biopharmaceutical business.

Kaly has developed proprietary CBD formulation using its patented cannabis extraction process to treat COPD (Chronic Obstructive Pulmonary Disease) symptoms and other respiratory ailments. The patented CBD extracts of Kaly provides excellent anti-inflammatory responses for vitro. Puration is working on rebranding and introducing CBD confections products.

Launches a campaign to clinch CBD infused beverage

Puration has recently unveiled a campaign to clinch CBD infused beverage, topical, and edible operations. It has also announced the closing of an investment of $5 million to fund the takeover campaign. The structured debt facility of $5 million allows the company to draw funds required to close the acquisition. Secured assets back it. The company will repay the debt in stock at a share price of $0.10. Puration is eyeing to boost its acquisition pipeline.

Puration has recently acquired CBD Infused Pet Products operation. The takeover allows the company to provide concierge pet services online. Also, the market for CBD Pet products expects to reach $1.16 billion by the year 2022 in the US. It provides significant business potential for Puration.

Published at Mon, 04 May 2020 12:26:41 +0000

Investors Should Be Looking For Companies With Strong Balance Sheets During These Uncertain Times

Investors Should Be Looking For Companies With Strong Balance Sheets During These Uncertain Times

2020 has been a tough year for the global economy and the cannabis sector has been not been immune to COVID-19.

Now that earnings season is kicking into high gear, the market will be able to see how cannabis companies are holding up in a changing market environment. Cash is one of the main metrics that the market is analyzing in these quarterly financial reports and we continue to prefer businesses that have strong balance sheets.

So far this year, the capital markets have not been as friendly to the cannabis sector and companies are having a tougher time at raising capital. Today, we want to highlight 3 Canadian cannabis producers that are well capitalized (when compared to their peers) and are well positioned to execute on previously announced initiatives.

Aleafia Health is Fully Funded and Positioned to Record Strong Growth

In our opinion, we believe that Aleafia Health (ALEF.TO) (ALEAF) is one of the most compelling opportunities from a valuation standpoint. Not only does the Canadian cannabis producer have a strong balance sheet (more than $40 million of cash) but it also has an attractive growth profile and is levered to some of the most profitable verticals of the cannabis value chain.

During the most recent quarters, Aleafia Health has reported impressive growth on a number of levels and this is a trend that we expect to continue on a going forward basis. The company has been focused on growing its production footprint while substantially increasing the number of registered medical cannabis patients that it serves.

One of the reasons we are excited about Aleafia Health is due to the cost-conscious approach that it has taken for growth. Unlike many of its peers, Aleafia Health did not expand to quickly or make massive acquisitions. The management team has been able to pinpoint assets that have improved the company’s leverage to the global cannabis market without overextending itself. When compared to many of its peers that completed massive acquisitions and expanded too quickly, we believe that Aleafia Health is well positioned to continue to increase market share.

Another reason we are excited about Aleafia Health is related to the structure of the business. The company is comprised of divisions that support each other, and we are favorable on the amount of synergies that can be found between these assets. From cannabis clinics to telemedicine, Aleafia Health represents a well-rounded business that has substantial growth prospects. The operating structure makes Aleafia Health a multi-faceted growth opportunity and we are favorable on the direction the management team is bringing the business.

Canopy Growth is a Global Cannabis Leader

Canopy Growth Corporation (WEED.TO) (CGC) is one of the best-known cannabis companies with the strongest balance sheet when compared to all other businesses in the industry. With almost $2 billion of cash on the balance sheet, the Canadian cannabis producer is well positioned to take advantage of unique growth opportunities and we believe that it puts the business in a league of its own.

During the last year, Canopy Growth has reported a number of developments that have not been positive for the story. From shutting down cultivation facilities to writing down more than $500 million of non-core assets, the company is cutting expenses and we will monitor how the management team continues to do so.

Although 2020 has been a tough year for the Canadian cannabis producer, the business is well positioned to survive the current market environment and we find this to be of significance. The same cannot be said for many of the company’s peers and we will monitor how the sector is able to bounce back. The recent trend for Canopy Growth has been to the upside and the shares have come well off its recent lows. We believe that the business has attractive growth prospects and is one that our readers need to be aware of.

Namaste has Developed a Multi-Faceted Platform for Growth

Namaste Technologies (N.V) (NXTTF) is a Canadian cannabis company that we believe deserves a mention. The company has a strong balance sheet and is well positioned to capitalize on the changing market landscape in Canada. At current levels, we believe that the market does not seem to be appropriately valuing the assets that fall under the Namaste umbrella and we find this to be of importance.

Namaste’s CannMart subsidiary is one of the most attractive aspects of the story and we are favorable on how the management team has been able to grow the business. CannMart has secured several strategic partners and we are favorable on the leverage that it has to the cannabis 2.0 market in Canada.

The Canadian cannabis company recently reported quarterly financial results and we found there to be a number of bright spots in the report. Through CannMart, Namaste is well positioned to capitalize on the Canadian recreational cannabis market and we are favorable on this aspect of the story. CannMart is working with several leading cannabis brands and we expect these brands to perform well on the platform.

At current levels, we believe that Namaste has a compelling valuation and a favorable risk-reward profile. We are bullish on the direction that the management team is bringing the business and believe that the market is discounting the growth prospects that are associated with the strategy. Going forward, we are favorable on Namaste’s opportunity to capitalize on burgeoning verticals of the cannabis market and is a company to be aware of.

Pursuant to an agreement between StoneBridge Partners LLC and Aleafia Health Inc. (ALEF) we have been hired for a period of 90 days beginning February 15, 2020 and ending June 15, 2020 to publicly disseminate information about (ALEF) including on the Website and other media including Facebook and Twitter. We are being paid $8,000 per month (ALEF) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero shares of (ALEF), which we purchased in the open market. We plan to sell the “ZERO” shares of (ALEF) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (ALEF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.


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Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Mon, 04 May 2020 11:53:22 +0000

Eagle Processing & Distribution Agrees To Provide Consultancy Services To Rocky Mountain High Brands Inc (OTCMKTS:RMHB) For 3 Years: Eagle Received 50 Million Shares

Eagle Processing & Distribution Agrees To Provide Consultancy Services To Rocky Mountain High Brands Inc (OTCMKTS:RMHB) For 3 Years: Eagle Received 50 Million Shares

Rocky Mountain High Brands Inc (OTCMKTS:RMHB) has signed a 3-year consultancy agreement with Eagle Processing & Distribution. As per the terms of the accord, Eagle Processing will assist Rocky Mountain in arranging the financing for production, inventory, purchase orders; logistics and order fulfillment; marketing, sales and distribution, risk management, customer service, and production of all the products.

Eagle received 50 million shares

As per the rule 144, Rocky Mountain has issued 50 million shares to Eagle for the services rendered in the initial eight months of the agreement. The company will negotiate compensation for the balance term.

Benefits of agreement with Eagle

Rocky Mountain expects to enjoy a reduction in overhead costs related to contractors, wages, storage, rent, insurance costs, and logistics because Rocky Mountain will bear these costs. CEO and President of Rocky Mountain, Michael Welch, said the company gets access to technical expertise, management expertise, supply chain, co-packaging capabilities, and sales and distribution channels of Eagle.

CBD Life unveils beverages in Mexico

On April 20, 2020, CBD Life has introduced California Saber Te Negro, California Limonada, and Rocket High in Mexico. With this launch, both Rocky Mountain and CBD Life have achieved a significant milestone. According to Michael, Rocky Mountain has introduced the beverages manufactured for CBD Life in Mexico under the Master Manufacturing agreement. CBD Life has created a marketing campaign and innovative look for these beverages. Michael said the inspirational marketing, great taste of the beverages, and distribution channels will make them a big hit. Also, the agreement with Eagle will provide expertise in manufacturing that helps Rocky Mountain to meet the production needs of CBD Life.

Rocky Mountain has moved into normal production run at its copacking facility. The company will ship ten truckloads of beverages that comprise California Black Tea, California Lemonade, and Rocket High from this production facility.

Creates an exploratory committee

The board of directors of Rocky Mountain has approved to create an exploratory committee to explore the possibility of building a supply chain in Puerto Rico to manufacture Rocky Mountain products and white label/ private label products for other firms. The team of Rocky Mountain has met the officials of the Department of Economic Development and Commerce in Puerto Rico to discuss the benefits of conducting business in Puerto Rico.

Published at Thu, 30 Apr 2020 12:05:34 +0000

Illinois Delays Awarding New Cannabis Dispensary Licenses, Canopy Growth Lays off 200 More Workers: Week in Review

Illinois Delays Awarding New Cannabis Dispensary Licenses, Canopy Growth Lays off 200 More Workers: Week in Review

Editor’s note: This article was updated on 5/1/2020 at 1:50 p.m. A reference to an equity fund that targets distressed assets has been removed. The fund is not yet active.

The global COVID-19 pandemic and the ensuing stay-at-home orders have forced businesses to shutdown or drastically change their operations, distorted companies’ top and bottom lines, and shrunk the U.S. gross domestic product (GDP) by 4.8% in the first quarter of 2020. The U.S. GDP is expected to take an even bigger hit in the second quarter, as the Congressional Budget Office (CBO) projects the country’s economy will shrink another 35% by the end of June.

Now, experts say these market conditions might exacerbate a phenomenon that was already taking off in the cannabis industry prior to the coronavirus outbreak: vulture investing.

Vulture investment funds—investors that target “distressed assets” (companies that are near/at insolvency)—have been taking more interest in the cannabis industry, according to Hilary Bricken, attorney at Harris Bricken. These investors are “wheeler-dealer” types, she says, and take on more risk in exchange for a much larger stake in the company (in equity deals) or massive interest rates (in debt deals). They also generally attach more conditions to their investments, including taking ownership of the assets should the company continue to struggle (or, worse yet, after the company finds success).

“Their whole model is to go after these businesses that are hurting,” Bricken tells Cannabis Business Times, “and here in California, that is not going to be difficult to find because the industry was already suffering before coronavirus.”

Since January, she has seen a handful of new equity funds pop up that are targeted toward distressed assets. In a March 4 interview with CBT, Joe Caltabiano, former president of Cresco Labs, stated his interest in working with distressed assets after resigning from the company he helped launch

Since January, Bricken says, “very aggressive vulture investors and funds based around only debt buy-ups [have] come to me not for representation—they already have attorneys—but asking ‘Do you have deals? Do you have deals that you can bring to us? Do you know anyone that’s dying or hurting?’

“There has been an uptick, it’s not rampant, but it’s starting to become the finance vehicle of the year, and it’s probably not going to stop in the wake of the pandemic,” she adds.

The biggest effect the pandemic brings to the market, according to Canaccord Genuity analyst Bobby Burleson, “is the potential for other industries to start to compete with cannabis companies for access to capital.”

Burleson highlights how the cash crunch prior to the pandemic forced many investors to look at debt financing instead of equity financing in order to generate cash flow. With that cash crunch spreading across the economy thanks to the supply chain gridlock accompanying the COVID-19 outbreak, investors have more options to make similar returns in less volatile markets. “I think the types of rates that cannabis companies were paying for their debt, up in the teens interest in some cases, you might start to see debt investors have opportunities in other sectors where they can get really high rates simply because there’s going to be so much distress,” he says.

Burleson adds this will make it more difficult for cannabis companies to access capital when they might need it most. This sets the table perfectly in favor of vulture investors.

“Normally, a vulture investor is going to take a first position security interest and will align themselves up to be the number one creditor in the event of bankruptcy or liquidity if the business doesn’t turn around,” Bricken says.

It’s in the nature of vulture investors to take risks, but those risks are exponentially higher when dealing with cannabis companies, as bankruptcy is not an option for those federally illegal businesses. Combining current market conditions with a potential acquisition target’s poor performance means vulture investors generally will be setting the conditions to the deal with little to no room for negotiation.

“There’s definitely a buyer’s market today as opposed to a seller’s market where valuations were through the roof and there was just a lot of money being thrown at the industry,” says Hershel Gerson, CEO and Managing Director at the MGO | ELLO Cannabis Alliance, a professional services company offering financial, tax and advisory services to the cannabis market.

Hemp vs. Cannabis

Investors evaluate cannabis (meaning THC-rich) and hemp (meaning cannabis containing a maximum of 0.3% THC) companies differently for a variety of reasons: different federal statuses, access to national a market vs. locked in single-state markets, and available biomass all play into how analysts and investors look at each market. While the fundamentals of evaluation remain the same, Burleson says, these market forces (along with others such as state license caps) weigh heavily into company valuations and projections.

Despite hemp companies having access to federal bankruptcy (thanks to the 2018 Farm Bill legalizing the crop), Gerson believes THC companies in general are in a better position to negotiate with vulture investors compared to their low-THC counterparts. While sales remain steady—or have risen—for THC companies, “what we’re hearing in [the hemp] industry is that the demand is way behind the relative biomass and extraction capacity that is currently in the market,”  he says.

Another issue with the hemp/CBD side of the marketplace making it difficult for those companies to navigate debt or equity markets, according to Gerson, is CBD tinctures can be expensive: a 30 ml bottle of Premium Jane tincture with 1,000mg CBD retails for $124.00 on the company’s website, for example. “In a recession market, that discretionary spend isn’t there,” Gerson says.

Colin Kelley, operating partner at Merida Capital, a cannabis investment fund, puts the current situation for hemp companies a bit more bluntly. “Hemp and CBD companies are not only managing through the current COVID-19 environment, they are also navigating a national market where true commoditization is occurring,” Kelley says. “Capital will be difficult to acquire for companies that do not have a solid plan and a team who can execute.”

Attractive Assets

Different parts of the supply chain bring different value to vulture investors. For example, dispensaries generally have more consistent cashflow than a cultivation company as they are public-facing, Bricken says. Likewise, distributors (where such licenses exist) that try to become brand houses with exclusive access to products and retailers can better assure product movement, increasing their value to investors.

Cultivation operations, on the other hand, might not be as attractive to vulture investors because “it’s extremely expensive to run a cultivation site, especially if it’s indoors because of all the environmental factors that go on, the electricity and other utilities,” Bricken says.

One of the most important factors to investors is brand recognition. “There are definitely brands out there that we feel are quality brands that are going to be available that are distressed,” Gerson says. That doesn’t necessarily mean that recognized brands are in any better negotiation position with vultures, however.

“The problem with unlocking that distress is that a lot of these brands are [owned by] equity holders that are still coming to terms with the fact they are in a bad spot,” Gerson says. The question surrounding those companies’ survival, he poses, is, “Can they activate an investor quick enough to protect them and be rational enough to understand that they’re coming from a position of vulnerability?”

On the hemp side, farms are likely to be less attractive to vultures given the current supply glut. Hemp seed breeders and specialty processors (those who manufacture more than isolate and distillate) are “the two ends … where people want to play and there’s value added and margins to be had,” Gerson continues.

Ultimately, however, the pandemic and economic turmoil that has ensued places nearly everyone in the same unenviable negotiating position, Burleson says. “I don’t really see any particular segment of the supply chain escaping this [market].”

What Cannabis and Hemp Companies Can Do

While investment terms might be onerous, cannabis companies should remain open to vulture investors, especially in critical times like these, Bricken advises. “The name is a bit of a misnomer. It’s gotten that name for obvious reasons in that no other money is going to touch these companies,” she says, adding, “The good thing about the vulture is … they’ve been in distressed markets before, they likely know how to turn business around, and this is not their first rodeo.”

Cannabis companies looking for an urgent cash-infusion “should be looking for seasoned vulture investors who would be more open to a more middle-of-the-road restructure where the target still gets to participate at the end of the day even after there’s been success,” Bricken says. “And the seasoned vulture is going to be more likely, probably, to agree to something like that because they’ve been around the block with various entrepreneurs.”

Cash-strapped companies looking to find the best terms for financing deals (debt or equity) are going to be hard-pressed to find favorable terms, according to Burleson. “I don’t know that you can artificially put yourself in a better bargaining position,” he says. “Being organized, having all your ducks in a row probably counts more than ever.”

In the end, some companies seeking capital will simply have to accept unfavorable terms, Kelley says. “My advice is to do so with capital partners who want you to weaponize the cash; not somebody just angling to flip their investment when the market ‘returns.’”

Published at Sat, 02 May 2020 12:30:00 +0000

USPTO Offers Notice Of Patent Allowance To CV Sciences Inc (OTCMKTS:CVSI) For Its Patent Application 15/426, 617: The Patent Allows Methods To Treat Smokeless Tobacco Addiction

USPTO Offers Notice Of Patent Allowance To CV Sciences Inc (OTCMKTS:CVSI) For Its Patent Application 15/426, 617: The Patent Allows Methods To Treat Smokeless Tobacco Addiction

According to an announcement on April 3, 2020, the US Patent and Trademark Office (USPTO) will be awarding notice of allowance to CV Sciences Inc (OTCMKTS:CVSI) for its patent application 15/426, 617.

Methods to treat smokeless tobacco addiction

The patent comprises methods to treat smokeless tobacco addiction by providing pharmaceutical formulations that comprise nicotine and CBD. USPTO will issue the patent on receiving the requisite fee from CV Sciences and after completing the administrative procedures. CV Sciences has applied for subsequent patents, which enables the company to get similar patent protection in vital areas across the world.

CEO of CV Sciences, Joseph Dowling, said the company is excited to receive notice of allowance from the USPTO for its proprietary technology to treat smokeless tobacco addiction. The IP allows the company to commercialize innovative cannabidiol based pharmaceutical drug to address unmet medical needs.

The market for smokeless tobacco addiction

The worldwide market for smokeless tobacco addiction is estimated at over $2 billion. CV Sciences expects to cash on this trend for long term growth. Also, CV Sciences is targeting the consumer segment for continuous growth. It will take steps to commercialize CVSI-007 and discussing with strategic partners.

The initial drug candidate of CV Sciences – CVSI-007 comprises CBD and nicotine to help users to quit tobacco smoking. It expects a formal patent soon from FDA and continues the development efforts of the first cure for smokeless tobacco addiction.

Misses revenue estimates

CV Sciences has reported revenues of $9.33 million in Q4 2019. It has missed the revenue estimates by 18.91%. However, the company ended the year 2019 on a positive note posting higher annual revenues in its history. It has built a strong foundation for long term growth and broadened retail distribution.

Strengthens leadership

CV Sciences strengthened its leadership and corporate governance in 2019. The company has appointed Joerg as a Chief Finance Officer in early 2019. He brings an invaluable accounting experience to the company. The company has appointed Dr. Duffy MacKay as SVP (Senior Vice President – Scientific and Regulatory Affairs) in Q1 2019. Shane Hart, the new SVP (Marketing and Communications), has made significant improvements by refreshing its flagship brand – PlusCBD Oil.

Published at Fri, 01 May 2020 12:05:16 +0000

Namaste Technologies Announces Letter to Shareholders

Namaste Technologies Announces Letter to Shareholders

Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF), an online platform for cannabis products, accessories, and responsible education, today announced a letter to shareholders from CEO, Meni Morim.

Namaste Technologies Inc. (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) (CNW Group/Namaste Technologies Inc.)

Dear Fellow Shareholders and Friends,

I’m reaching out to you today for a singular reason: I don’t get the opportunity to speak directly to you as often as I would like. I’ll be frank; it has been a tough year, for the company and for shareholders. Many of you have been with us right from the start, while some of you are brand new to Namaste. Either way, this letter is for you.

In February 2019, I was asked to consider the position of CEO by the Board of Directors. After careful deliberation, I agreed, together with the team, to lead Namaste into the next phase of growth. I saw (and still see) many opportunities in the Cannabis industry that Namaste is in a unique position to take advantage of. I also knew that 2019 would be our ground-zero, and difficult challenges needed to be overcome to position ourselves to capitalize on those opportunities in 2020.

As I settled into my new role, there was no question this company’s future was, and remains, bright.  However, I also recognized the imperative need for change – refocusing on what we want our business to become, and letting go of distractions not aligned with that focus. I believe that the first step toward enacting change is to learn from our past. The second is to start a rebuild from the ground up. Once we worked through a deep, holistic self-audit, one unified element stood strong: we have all the necessary pieces to forge a defensible path in becoming a trusted leader in cannabis & cannabis-derivative products.

Though 2019 was challenging, we did pass several significant milestones, including:

  • Settling class-action lawsuits in Canada and the US in principle, followed by early 2020 final court approval
  • Rebuilding the management team, and the board of directors
  • Terminating vendor and supply agreements that did not make financial sense
  • Parting ways with several consulting companies deemed no longer a fit for Namaste
  • Re-negotiating contracts with partners and adjusted our commercial strategy to drive EBITDA growth in 2020

While tying up loose ends on the above was costly, and distracting, it allowed us to build a lean, efficient foundation and close the chapter on residual legacy items. While this was happening, we also worked on moving the business forward. We were able to:

  • Build a brand new business to business revenue channel through securing agreements and strengthening our relationship with various Provincial governments, and we now have a direct path to the recreational market
  • Introduce our consignment and services model, which optimizes our cash flow and opens up a new revenue stream that helps us leverage our license and positioning
  • Obtain our oils license, and were among the first to market with Cannabis 2.0 products
  • Focus our technology on the online user experience, eliminating friction and improving CannMart’s customer funnel end-to-end
  • Secure licensing agreements with well-known brands, which we view as crucial as we see the industry shifting to Consumer Packaged Goods

I can confidently say that I believe our team understands the risks inherent in supply chain and the necessity of balance in upstream vs. downstream and that Namaste now has a much clearer vision of where we need to sit in the value chain. Cannabis and cannabis-derivative products are inarguably our short-term future, however, we are looking past short-term to understand and define both the scope and competitive edge of what lies ahead. In anticipation, we are reinforcing and adding to Namaste’s bench strength to ensure our team is beyond adequately skilled and prepared for our next steps. We have also cleared old inventory and made room for the products that satisfy our customers’ needs.

So where do we go from here? What I can tell you is, Namaste is treating 2020 as an opportunity to turn a new page and “show” rather than “tell”. We have shifted our focus to meaningful long-term success, and you may finally start to see the pieces come together to form a new, promising picture in the months ahead. By mid-2020, just a few months away, we hope to show the impact of the investments, restructuring, and launch of new revenue channels in our midyear results.

We are attracting premium brands and value added partners as a growing number of licensed producers and provincial agencies are recognizing CannMart’s value proposition and expertise in e-commerce, production, packaging, and distribution in this highly regulated industry. Our debut in Cannabis 2.0 was a tremendous opportunity for us and we worked very hard to be one of the first licensed sellers to offer these products in the legal market. Beyond the immediate benefit of navigating this uncharted territory among other pioneers, a strong presence in Cannabis 2.0 opens up opportunities for Namaste within what we believe is the swiftly approaching era of Consumer Packaged Goods.

We are committed to delivering value now, but not at the expense of future viability. Therefore, we remain cash conscious and focused on our balance sheet. We have also made significant shifts in internal processes, and while progress may not happen overnight, I can confirm we are finally starting to see these labors bear fruit.

Throughout this journey, it’s clear we’ve had one constant: you. Despite the ups and downs; our challenges, growing pains, and under-delivered assurances of the past, you remained with us. I can’t begin to convey our immense gratitude for your continuous support, your tough questions, and your suggestions as we work to improve Namaste. You provide us with encouragement and motivation to do better, and it’s made all the difference to myself and this team. Our shareholders also represent our customers, and in 2020 and beyond, we will obsessively work to grow both segments, and finally – start overdelivering on our promises.

Thank you. And here’s to the future,

Meni Morim
Chief Executive Officer
Namaste Technologies Inc.

About Namaste Technologies Inc.
With headquarters in Toronto, ON, and offices in both B.C. and around the globe, Namaste Technologies is a leading online platform for cannabis products, accessories, and responsible education. The company’s ‘everything cannabis store’, CannMart.com, provides customers with a diverse selection of hand-picked products from a multitude of federally-licensed cultivators, all on one convenient site. Namaste’s global technology and continuous innovation address local needs in a burgeoning cannabis industry requiring smart solutions.

Information on the Company and its many products can be accessed through the links below:


FORWARD-LOOKING INFORMATION – This news release contains “forward-looking information” within the meaning of applicable securities laws. All statements contained herein that are not historical in nature contain forward-looking information. Forward-looking information can be identified by words or phrases such as “may”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen. The forward-looking information contained herein is made as of the date of this press release and is based on assumptions management believed to be reasonable at the time such statements were made, including management’s perceptions of Namaste’s standing in the online marketplace; Namaste entering a phase of growth; the opportunities in the Cannabis industry and management’s belief that Namaste is in a unique position to take advantage of such opportunities; that Namaste was able to overcome difficult challenges in 2019 and is now positioned to capitalize on opportunities in 2020; the belief that Namaste’s future prospects are positive, that the Company has the necessary pieces to become a trusted leader in cannabis and cannabis derivative products, that the vendor and supply agreements and consulting arrangements which were terminated in 2019 were positive developments, that the Company’s adjusted strategy will drive EBITDA growth in 2020, that the changes in 2019 helped to build a lean, efficient foundation for Namaste’s business; management’s views regarding the strength of the Company’s relationships with various Provincial governments; the potential positive impacts that the consignment and services model may have on revenue and cash flow; the public perception of various brands carried by CannMart and partners of Namaste; the Company’s understanding of supply chain risks and the Company’s vision as to where it can provide value in the supply chain; the belief that Namaste has a team of people who are adequately skilled and prepared for future initiatives of the Company; the potential for the Company’s midyear results to show the impact of the prior investments, restructuring and new revenue channels; the opportunities which may be available to the Company as a result of being an early provider of Cannabis 2.0 products; the Company’s beliefs regarding the approaching era of Consumer Packaged Goods; the current and anticipated future effect of changes to the Company’s internal processes; the Company’s commitment to work obsessively to grow its shareholders and customer bases and to deliver on anticipated results;  and the results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While we consider these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this press release. Such factors include, without limitation: risks relating to the Company’s ability to execute its business strategy and the benefits realizable therefrom, risks specifically related to the Company’s international operations, and risks relating to the market price of Namaste common shares. Additional risk factors can also be found in the Company’s current MD&A and annual information form, both of which have been filed under the Company’s SEDAR profile at www.sedar.com. Readers are cautioned not to put undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.


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SOURCE Namaste Technologies Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2020/01/c7284.html

Incite Capital Markets, Eric Negraeff / Darren Seed, Ph: 604.493.2004; For Meni Morim, CEO, Email: ir@namastetechnologies.comCopyright CNW Group 2020

Published at Fri, 01 May 2020 12:02:48 +0000