Category Archives: Cannabis Legalization

Medipharm Labs International Growth Strategy Is Starting To Pay Off In A Big Way

Medipharm Labs International Growth Strategy Is Starting To Pay Off In A Big Way

MediPharm Labs Corp., (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) is a global leader in the cannabis extraction market that operates out of a Good Manufacturing Practices (GMP) facility with ISO standard-built clean rooms. The company represents a differentiated opportunity that specializes in the production of purified, pharmaceutical-quality cannabis oil and concentrates and advanced derivative products.

One of the ways that MediPharm has been able to stand out as an industry leader is through the continued delivery of sophisticated cannabinoid formulations in innovative formats with pharmaceutical level quality standards. The company provides a variety of services, depending on customer needs (i.e. formulation, sensory testing, processing, packaging, labelling, and distribution of cannabis extracts and advanced cannabinoid-based products) and we are favorable on how the story has advanced so far this year.

Through its wholesale and white label platforms, MediPharm has been capitalizing on the domestic and international cannabis oil market and has a leading position in this vertical. A few months ago, the company announced its first commercial export order to Australia, which recently started generating revenue, and completed the commercialization of its Australian extraction facility.

We believe that MediPharm is an opportunity that has been flying under the radar and is trading for a discount when compared to its peers. By gaining a first mover advantage in strategic international markets, MediPharm is positioning itself for long-term growth and we believe that the market discounts the growth potential that is associated with it.

Announces a Milestone with Avicanna

Last month, MediPharm Labs reported a major milestone and announced the completion of the production of a new product format, sublingual sprays, as part of its multi-faceted strategic pharmaceutical manufacturing agreement with Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF), a leading biopharmaceutical company.

In the near future, the sprays will be available to Canadian medical patients through the Medical Cannabis by Shoppers online healthcare platform. The sprays will be marketed under Avicanna’s RHO Phyto™ medical brand and we will monitor how the product line generates traction with medical patients. The sprays are an attractive option for medical patients since they are optimized for increased absorption and faster onset when compared to basic MCT (medium-chain triglyceride) sublingual sprays.

One of the reasons we are favorable on the new product format is related to the amount of time it takes to feel the effects. There is a large portion of medical and recreational customers that want to consume cannabis in ways that are healthier and more discreet than smoking (i.e. vaping and consumables). The sprays meet these specific criteria and are placed under the tongue to provide rapid absorption into the bloodstream.

MediPharm stands out as a leader in the Canadian cannabis oil market and was selected by Avicanna due to its state-of-the-art GMP extraction and processing facility and its pharmaceutical-quality production capabilities. Avicanna is executing on a strategy to bring new and innovative and sustainable plant-derived cannabinoid-based products to market and expect MediPharm to be a beneficiary of this.

The relationship between the companies is designed to provide patients and the medical community with advanced product offerings that are backed by science, data and world-class quality standards. Avicanna has an attractive pipeline of formulations that it has developed over the past four years in collaboration with leading Canadian research institutions.

A few months ago, the companies entered into a three-year, multi-faceted agreement that involves production, domestic and international distribution, and intellectual property licensing. The spray product is the second set of products to be developed by MediPharm and we are favorable on the amount of time it takes MediPharm’s technical team to bring a product to market. The spray product took MediPharm one-month to bring to market and we believe that this is a testament to the strength of the team and the amount of human capital that is on it.

Under the manufacturing segment of the agreement with Avicanna, MediPharm Labs uses its specialized capabilities to produce Avicanna’s advanced RHO Phyto™ medical cannabis products and Pura Earth™ dermacosmetic topicals. The first product that was produced as part of the relationship was Rho Phyto’s Blood Orange flavoured Micro Drops, in both high CBD and medium CBD formula made from full spectrum cannabis distillate.

Going forward, the companies plan to bring additional products to market and we are favorable on the track record of success so far. Additional product formats such as topicals, capsules and transdermal patches, are being finalized for production under the contract manufacturing agreement and we expect to see additional product brought to market in the near future.

In late 2019, Health Canada approved the sale of cannabis derivative products like edibles, drinkables, vape pens, concentrates, sublinguals, topicals, tinctures, salves, and more. This represented a major transformation of the Canadian market and is referred to as cannabis 2.0.

We believe that MediPharm is well positioned to be a beneficiary of the cannabis 2.0 market and expect it to report strong growth from this vertical on a going forward basis. The completion of the second product with Avicanna highlights how the Canadian cannabis market has changed and how MediPharm is increasing market share in the contract manufacturing space.

One of the ways that the cannabis 2.0 market has impacted the entire Canadian industry is through the formation of a new consumer segment that is not price sensitive and will pay a premium price for quality products. We like to compare this group of consumers to the wine industry which has a large segment of wine connoisseurs and who pay a massive premium for certain brands.

Through contract manufacturing and white label agreements with brand leaders, as well as its growing portfolio of pharmaceutical quality products that are produced from its GMP-certified facilities in Canada and Australia, MediPharm is well positioned to capitalize on the changing landscape of the domestic and international cannabis market.

By the end of the second quarter, MediPharm Labs had 60 concentrate-based product SKUs in production for medical, wellness and recreational brands. Some of the products that are in the portfolio are high-potency formulated oils, vape cartridges, topicals and sublingual sprays. We are favorable on the amount of MediPharm owned or produced products that are on the market and expect this trend to become more significant in the back half of the year.

MediPharm continues to enhance its capabilities in product innovation and flexible manufacturing and we are favorable on how it continues to focus on improving the process. The business is supported by a distinguished team of researchers and production professionals that have decades of pharmaceutical experience and this is an attractive aspect of the story. The company is systematically executing on a multi-faceted growth strategy as a differentiated, international pharmaceutical company and partner to leading cannabis brands.

Pursuant to an agreement between StoneBridge Partners LLC and Medipharm Labs we have been hired for a period of 180 days beginning August 18, 2020 and ending March 18, 2020 to publicly disseminate information about (LABS) including on the Website and other media including Facebook and Twitter. We are being paid $6,000 per month (LABS) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero (0) shares of (LABS), which we purchased in the open market. We plan to sell the “ZERO” shares of (LABS) 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 (LABS) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

Share

Share - Facebook


Share - Twitter

Published at Tue, 15 Sep 2020 11:35:44 +0000

Auxly Closes $2 Million Tranche of Financing

Auxly Closes $2 Million Tranche of Financing

Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) (“Auxly” or the “Company”) has issued an additional $2 million worth of unsecured convertible debentures (the “Tranche”) under its $25 million unsecured convertible debenture standby facility with an institutional investor (the “Investor”) as previously announced on April 28, 2020 (the “Original Offering”).

Under the Tranche, the convertible debentures issued to the Investor have a conversion price of $0.18 per common share of the Company (each a “Common Share”), and the Investor received warrants to purchase 6,111,111 Common Shares until September 8, 2022 at an exercise price of $0.216 per Common Share. Each convertible debenture will mature on September 8, 2022 and will bear guaranteed interest from the date of issue at 7.5% per annum, payable semi-annually on June 30 and December 31 of each year and has the same terms and conditions as described in the Original Offering and the transaction documents filed on the Company’s SEDAR profile.

In connection with the completion of the Tranche, the Company has agreed to indemnify (the “Indemnity”) certain of its directors and officers for any and all losses not otherwise recoverable from the collateral provided by the Investor for the Common Shares provided by such directors and officers to the Investor pursuant to the terms of the investment agreement. The Indemnity may constitute a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“), but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101. The Indemnity has been approved by the independent directors of the Company. No special committee was established in connection with the Original Offering, the completion of the Tranche or the granting of the Indemnity, and no materially contrary view or abstention was expressed or made by any director of the Company in relation thereto. Further details will be included in a material change report that will be filed by the Company in connection with the completion of the Tranche. The Company did not file the material change report more than 21 days before the expected closing date of the Tranche as the details of the Tranche and the terms of the Indemnity were not settled until shortly prior to the closing of the Tranche, and the Company wished to complete the Tranche on an expedited basis for sound business reasons.

All securities issued by the Company under the Tranche are subject to a statutory four-month hold period in accordance with applicable securities legislation and final approval of the TSX Venture Exchange.

AltaCorp Capital Inc. is acting as exclusive agent on the Tranche.

This news release does not constitute an offer to sell, or a solicitation of an offer to buy, any of the securities referenced herein in the United States. The securities referenced herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ON BEHALF OF THE BOARD

“Hugo Alves” CEO

About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)

Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading product research and development infrastructure in order to create trusted products and brands in an expanding global market.

Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.

Investor Relations:
For investor enquiries please contact our Investor Relations Team:
Email: IR@auxly.com
Phone: 1.833.695.2414

Media Enquiries (only): 
For media enquiries or to set up an interview please contact:
Email: press@auxly.com

Notice Regarding Forward Looking Information

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information in this press release includes, but is not limited to: the expected use of proceeds of the offering by the Company; obtaining the necessary regulatory approval for the offering; political change; future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting Auxly in particular and the cannabis industry generally.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information included in this release including, but not limited to: whether the Company can complete the offering on the anticipated terms and timeline; the ability to obtain regulatory approval of the offering on the proposed terms and timeline; and general economic, financial market, legislative, regulatory, competitive and political conditions in which Auxly operates will remain the same. Additional risk factors are disclosed in the annual information form of Auxly for the financial year ended December 31, 2019 dated May 13, 2020.

New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on Auxly’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. The purpose of forward-looking information is to provide the reader with a description of management’s expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.

The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release.

Neither 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.

Primary Logo

Published at Wed, 09 Sep 2020 11:34:39 +0000

Avicanna Advances its Supply Chain Business and Announces Filing of Amended Interim Financial Statements

Avicanna Advances its Supply Chain Business and Announces Filing of Amended Interim Financial Statements

Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products announces that through its majority owned subsidiary, Santa Marta Golden Hemp S.A.S. (“SMGH“), the Company has completed exports of CBD water soluble formula into the United States and CBD-based cosmetics into the United Kingdom. The Company is also pleased to announce that the Colombian Ministry of Health has granted SMGH a commercial and industrial fabrication quota to produce psychoactive THC derivatives.

Avicanna Inc. Logo (CNW Group/Avicanna Inc.)

The Company also announces that it has amended and refiled its interim financial statements for the period ended June 30, 2020 (the “Interim Financial Statements”) which amend the Company’s interim financial statements for the same period originally filed on SEDAR on August 14, 2020. At the request of the Ontario Securities Commission, the Interim Financial Statements have been updated to include comparative financial information for the corresponding interim period in the immediately preceding financial year as such information was inadvertently omitted in the initial filing. The changes are for presentation purposes and no figures have been restated. The Company has updated the Statement of Changes in Equity to include the immediately preceding financial year June 30, 2019 balances as required by Section 4.3(2)(b) of National Instrument 51-102 – Continuous Disclosure Obligations.

The export and sale of the commercial lot of isolated CBD water soluble formula into the United States was completed in parallel with an export of CBD-based cosmetics into the United Kingdom. The cultivation, extraction and purification of these products were all completed through Avicanna’s vertical integration at SMGH and validate the Company’s innovation and leadership in natural rare cannabinoid production. The CBD water soluble formula is part of the Aureus™ product portfolio that now includes feminized seeds and advanced formulations as well as CBD, CBG and THC API products. The CBD-based cosmetics were manufactured using CBD produced by SMGH and formulas developed by Avicanna.

The Colombian Ministry of Health granted SMGH a supplementary fabrication quota to receive 1.4 tons of dry flower and transform them into approximately 150 kg of psychoactive derivatives which will be used for commercial exports.

To the knowledge of the Company, it carries out its operations in compliance with all applicable laws in the jurisdictions in which it operates.

About Avicanna

Avicanna is a diversified and vertically integrated Canadian biopharmaceutical company focused on the research, development and commercialization of plant-derived cannabinoid-based products for the global consumer, medical, and pharmaceutical market segments.

Avicanna is an established leader in cannabinoid research and development, which it primarily conducts at its R&D headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto, Canada and in collaboration with leading Canadian academic and medical institutions. In addition to its developing pharmaceutical pipeline, Avicanna’s team of experts have developed and commercialized several industry leading product lines, including:

  • Pura H&W™: an advanced and clinically tested line of CBD consumer derma-cosmetic products; and,
  • RHO Phyto™: an advanced line of medical cannabis products containing varying ratios of CBD and THC currently available nation-wide across Canada in partnership with Medical Cannabis by Shoppers™, a subsidiary of Shoppers Drug Mart. RHO Phyto is the first strictly medical formulary of advanced “Cannabis 2.0” products, containing oils, sprays, capsules, creams, and gels, all developed with scientific rigour, manufactured under GMP standards and supported by pre-clinical data.

With ongoing clinical trials on its derma-cosmetic (Pura H&W), medical cannabis (RHO Phyto) and a pipeline of pharmaceutical products, Avicanna’s dedication to researching the important role that cannabinoids play in an increasingly wider scope of products has been at the core of the Company’s vision since its inception. Furthermore, Avicanna’s commitment to education is demonstrated through its annual medical symposium, the Avicanna Academy educational platform, and the My Cannabis Clinic patient program through its subsidiary company.

Avicanna manages its own supply chain including cultivation and extraction through its two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia. Through these sustainable, economical, and industrial scale subsidiaries, Avicanna cultivates, processes, and commercializes a range of cannabis and hemp cultivars dominant in CBD, CBG, THC, and other cannabinoids for use as active pharmaceutical ingredients. Avicanna’s Avesta Genetica program specializes in the development and optimization of rare cultivars for commercial production along with feminized seeds for global export. In June 2020, Avicanna made history with a shipment of hemp seeds to the United States of America by completing the first ever export of hemp seeds from Colombia.

Stay Connected

For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email at info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and includes statements with respect to the ability of the Company to complete additional exports of  CBD water soluble formula to the United States, the ability of the Company to complete additional exports of CBD-based cosmetics in to the United Kingdom, the ability of the Company to continue manufacturing CBD-based cosmetics using CBD produced by SMGH, the ability of SMGH to receive 1.4 tons of dry flower for the purposes of extracting psychoactive derivatives, and the ability of SMGH to produce 150 kg of psychoactive derivatives. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to current and future market conditions, including the market price of the common shares of the Company, and the risk factors set out in the Company’s annual information form dated April 15, 2020, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com.

The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE Avicanna Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2020/04/c5603.html

Published at Fri, 04 Sep 2020 12:10:44 +0000

World High Life Investment Strategy Update

World High Life Investment Strategy Update

World High Life Plc (AQSE:LIFE)(OTCQB:WRHLF) is pleased to announce that, in accordance with the Company’s investment strategy, and building upon momentum from its wholly owned subsidiary, London based Love Hemp Limited (“Love Hemp”), the Company is now actively considering investment targets in the medicinal cannabis space, including new technologies and synthetic cannabinoids with potential for wide applications in multiple jurisdictions.

“There are compelling opportunities to achieve our mandate, improving quality of life and wellness through innovations in medicinal cannabis, synthetic pharmaceutical derivatives, CBD and Hemp, with a number of investment opportunities that our team is actively pursuing,” noted Mr. David Stadnyk, World High Life CEO.

World High Life Investment Strategy Highlights

  • Building on Love Hemp’s continued growth, World High Life leadership is seeking new strategic investments in the medicinal cannabis sector, including pharmaceutical applications
  • Potential areas of interest include new technologies, synthetic cannabinoids, CBD, and Hemp, where they can be applied to scale globally
  • Within this scope, the Company intends to invest in and scale innovative, early stage, uses of cannabinoids, which have existing approvals in place to benefit patients/users

“The Love Hemp team is doing terrific work, advancing its business model under difficult circumstances, due to COVID-19, and growing on many fronts. That momentum has allowed our World High Life team to become more active on the investment side of our business as we see tremendous opportunities, especially in the cannabinoid pharmaceutical space,” added Mr. Stadnyk.

For further information please contact:

David Stadnyk
Founder & CEO
North America: 1 (236) 521-7211
North America toll-free: 1 (888) 616-WRHLF (9745)
+44 (0) 7926 397 675

info@worldhighlife.uk

AQSE Corporate Adviser
Mark Anwyl/Allie Feuerlein
Peterhouse Capital Limited
+44 (0) 20 7469 0930
ma@peterhousecap.com
af@peterhousecap.com

Financial PR
Camilla Horsfall/Megan Ray
Blytheweigh
+44 (0) 20 7138 3224
Camilla.horsfall@blytheweigh.com
Megan.Ray@blytheweigh.com

For more information on World High Life please visit: www.worldhighlife.uk

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Cautionary Note Regarding Forward Looking Information

We seek safe harbour. Some statements contained in this news release are “forward looking information” within the meaning of securities laws. Forward looking information include, but are not limited to, statements regarding the use of proceeds of the non-brokered private placement and payment of the debt settlements. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Investors are cautioned that forward-looking information is inherently uncertain and involves risks, assumptions and uncertainties that could cause actual results to differ materially. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forward-looking information contained in this press release constitutes management’s current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. We do not undertake to update any estimate at any particular time or in response to any particular event, except as required by law.

SOURCE: World High Life Plc

Share

Share - Facebook


Share - Twitter

Authored By

Michael Berger

Michael Berger is Managing Partner 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 Fri, 04 Sep 2020 12:14:01 +0000

When Will Aurora Cannabis Snap Out Of This Perpetual Trend To The Downside?

When Will Aurora Cannabis Snap Out Of This Perpetual Trend To The Downside?

Although Aurora Cannabis (ACB.TO) (ACB) does not have the best track record with maintaining business relationships, the new management team has help keep things under control…until now.

Yesterday, CTT Pharmaceutical Holdings, Inc., (CTTH), an innovative life sciences company with a portfolio of intellectual property (IP) in novel drug delivery systems, reported to have filed a statement of claim with the Ontario Superior Court of Justice against Aurora Cannabis.

CTT is seeking compensation for Aurora’s denial of contractual commitments with the company’s wholly owned subsidiary, which includes expenses, royalties due, lost royalties and damages.

This development comes after the companies entered into an agreement and after they launched CTT’s patented sublingual cannabis-infused strips under the brand name Aurora Dissolve Strips in October 2019. CTT said the product was generating traction and that demand for the product was strong. The company also said that it held meetings with Aurora to discuss an expanded product line and production planned for the end of the first quarter of 2020.

When it came time to write a check and expand the product line, CTT stated that Aurora was unwilling to commit further resources to the partnership and claimed the original agreement was no longer in force. Aurora made this claim at a time when payments were due to CTT under the original agreement and this was the catalyst for legal action being taken.

CTT had originally entered into a commercialization agreement with CanniMed, which was acquired by Aurora in 2018. CTT and Aurora jointly worked towards commercialization, with the initial production run selling out in less than 60 days. These numbers are impressive, and we are surprised that Aurora did not want to continue to build out the vertical.

CTT is led by a management team that had the foresight to know what it needed to have a relationship with Aurora. Since inception, the company has put a major emphasis on owning valuable IP and had the sublingual strip technology patented in the US, Canada, and has international patents pending in over 50 countries.

Concurrent with the filing of a statement of claim, CTT announced announces the appointment of Dr. Shane Morris to its advisory board. We believe that the addition is slap to Aurora as he is the former Chief Product Officer at Aurora and was a key player in the commercialization of the CTT strips. As a member of the board, Dr. Morris will provide advice on product and market development as well as regulatory issues. CTT will also leverage Dr. Morris’s extensive knowledge of the global cannabis industry to pursue additional opportunities.

Dr. Morris founded Morris and Associates Consulting. Prior to this, he held the position of Chief Product Officer at Aurora Cannabis, where his proven leadership and expertise in quality assurance, cannabis operations, regulatory affairs and food safety helped ensure success in launching a large portfolio of new products, resulting in Aurora commanding substantial share of the Canadian cannabis 2.0 market.

As Chief Product Officer at Aurora Cannabis, Dr. Morris played an important role with the launching a large portfolio of cannabis 2.0 products While at Aurora, Dr. Morris led a world class regulatory affairs team, managing the largest number of cannabis site licenses in Canada, in addition to many international regulatory initiatives and market launches. We expect Dr. Morris to play an important role in the success of CTT and will monitor how the story continues to evolve.

If you are interested in learning about the relationship between CTT and Aurora as well as the potential outcome of the claim, please email support@technical420.com to be added to our distribution list.

Share

Share - Facebook


Share - Twitter

Authored By

Michael Berger

Michael Berger is Managing Partner 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 Fri, 28 Aug 2020 12:02:12 +0000

MediPharm Labs Launches New Sublingual Sprays for Sale via Medical Cannabis by Shoppers™ Under Agreement With Avicanna

MediPharm Labs Launches New Sublingual Sprays for Sale via Medical Cannabis by Shoppers™ Under Agreement With Avicanna

MediPharm Labs Corp., (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) (“MediPharm Labs” or the “Company”) a global leader in specialized, research-driven pharmaceutical-quality cannabis extraction, distillation and derivative products, today announced its wholly-owned subsidiary, MediPharm Labs Inc., has launched and completed production of a new product format, sublingual sprays, as part of its multi-faceted strategic pharmaceutical manufacturing agreement with Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) (“Avicanna”), a leading biopharmaceutical company.

Marketed under Avicanna’s RHO Phyto™ medical brand, the high-performance RHO Phyto Rapid Act Sprays will be available nationally to Canadian medical patients through the Medical Cannabis by Shoppers™ online healthcare platform in the coming weeks. RHO Phyto Rapid Act Sprays are optimized for increased absorption and faster onset in comparison to basic MCT (medium-chain triglyceride) sublingual sprays. The products are discreet, easy to use, administered under the tongue to provide more direct absorption into the bloodstream, convenient and pleasing to taste.

“Avicanna chose MediPharm Labs to be their manufacturing partner across a wide range of product formulations because of our pharmaceutical-quality production capabilities and I’m proud to say these were used to great effect in fulfilling this important order,” said Pat McCutcheon, CEO, MediPharm Labs. “Medical cannabis users will be delighted with the quality and reliability of RHO Phyto Rapid Act Sprays and more broadly with the fact that Avicanna is leading the way in bringing new and innovative sustainable plant-derived cannabinoid-based products to assist in their care and wellbeing.”

The alliance between the two companies is designed to provide patients and the medical community with the most advanced product offerings backed by scientific rigour, data and world-class quality standards. Avicanna has a rich pipeline of formulations that it has developed over the past four years in collaboration with leading Canadian research institutions.

“The team at MediPharm continues to impress as they deliver sophisticated cannabinoid formulations in innovative delivery formats with pharmaceutical level quality standards,” said Aras Azadian, CEO, Avicanna. “Our RHO Phyto Rapid Act Sprays, which are the second set of products delivered by MediPharm’s technical team within only one month, provide patients and the medical community with an advanced solution for acute relief and an incredible candidate for replacing inhalation products.

On May 14, 2020, MediPharm Labs entered a 3-year, multi-faceted agreement with Avicanna involving production, domestic and international distribution and intellectual property licensing that will drive growth for both parties. Under the manufacturing segment of the agreement, MediPharm Labs uses its specialized capabilities to produce Avicanna’s advanced RHO Phyto™ medical cannabis products and Pura Earth™ dermacosmetic topicals. The RHO Phyto Rapid Act Sprays represent the second Avicanna product format produced at MediPharm Labs GMP-certified facility in Barrie, Ontario. The first was Rho Phyto’s Blood Orange flavoured Micro Drops, in both high CBD and medium CBD formula made from full spectrum cannabis distillate. Additional product formats, including topicals, capsules and transdermal patches, are being finalized for production under the contract manufacturing agreement.

Growing Medical Cannabis Product Offerings

The introduction of Avicanna’s RHO Phyto Rapid Act Sprays is another example of the maturation of the Canadian medical cannabis market and MediPharm Labs growing share of the contract manufacturing space.

As online and retail healthcare clinics expand to provide cannabis users with greater access to product formulations and invaluable information and advice on strains and product classes, customer preferences are now beginning to emerge. This is elevating the importance of quality formulations from trusted brand names. Through contract manufacturing and white label agreements with brand leaders, as well as its own expanding portfolio of pharma-quality products produced from its GMP-certified facilities in Canada and Australia, MediPharm Labs is well positioned to address emerging and growing market needs.

At the end of Q2, MediPharm Labs had 60 concentrate-based product SKUs in production for medical, wellness and adult-use brands – including high-potency formulated oils, vapourizer cartridges, topicals and sublingual sprays.

“We continue to build our capabilities both in product innovation and flexible manufacturing, supported by a distinguished team of researchers and production professionals with deep pharma experience,” said Mr. McCutcheon. “We are systematically executing on our vision as a differentiated, international pharma company and partner to leading medical, wellness and adult-use brands.”

Spray Filling

Sublingual Spray Filling at MediPharm Labs involves precision manufacturing, packaging and quality testing. See more here.

MediPharm Labs provides a variety of services, depending on customer needs including formulation, sensory testing, processing, packaging, labelling, and distribution of cannabis extracts and advanced cannabinoid-based products.

About Avicanna

Avicanna is a diversified and vertically integrated Canadian biopharmaceutical company focused on the research, development and commercialization of plant-derived cannabinoid-based products for the global consumer, medical, and pharmaceutical market segment. Avicanna is an established leader in cannabinoid research and development, which it primarily conducts at its R&D headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto, Canada and in collaboration with leading Canadian academic and medical institutions. In addition to its developing pharmaceutical pipeline, Avicanna’s team of experts have developed and commercialized several industry leading product lines, including:

  • Pura H&W: an advanced and clinically tested line of CBD consumer derma-cosmetic products; and,
  • RHO Phyto: an advanced line of medical cannabis products containing varying ratios of CBD and THC currently available nation-wide across Canada in partnership with Medical Cannabis by Shoppers™, a subsidiary of Shoppers Drug Mart. RHO Phyto is the first strictly medical formulary of advanced “Cannabis 2.0” products, containing oils, sprays, capsules, creams, and gels, all developed with scientific rigour, manufactured to rigorous quality standards and supported by pre-clinical data.

About MediPharm Labs

Founded in 2015, MediPharm Labs specializes in the production of purified, pharmaceutical-quality cannabis oil and concentrates and advanced derivative products utilizing a Good Manufacturing Practices certified facility with ISO standard-built clean rooms. MediPharm Labs has invested in an expert, research driven team, state-of-the-art technology, downstream purification methodologies and purpose-built facilities with five primary extraction lines for delivery of pure, trusted and precision-dosed cannabis products for its customers. Through its wholesale and white label platforms, MediPharm Labs formulates, develops (including through sensory testing), processes, packages and distributes cannabis extracts and advanced cannabinoid-based products to domestic and international markets. As a global leader, MediPharm Labs has completed commercial exports to Australia and completed commercialization of its Australian extraction facility which generated its first revenues in H1 2020. MediPharm Labs Australia was established in 2017.

For further information, please contact:
Laura Lepore, VP, Investor Relations
Telephone: +1 416.913.7425 ext. 1525
Email: investors@medipharmlabs.com
Website: www.medipharmlabs.com

Cautionary Note Regarding Forward-Looking Information:

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, the successful performance of the agreement and shipping of products thereunder as planned; additional product formats being finalized for production under the agreement; and addressing emerging and growing market needs. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of MediPharm Labs to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in MediPharm Labs’ filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, MediPharm Labs assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

All information contained in this press release with respect to Avicanna was supplied by Avicanna for inclusion herein.

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/abef1a40-cdda-4ae1-98e6-a8eddd5747f2

Primary Logo

Published at Wed, 26 Aug 2020 11:02:15 +0000

Hexo Corp. and Molson Coors Long Awaited Cannabis Beverage Collaboration Is Finally Here

Hexo Corp. and Molson Coors Long Awaited Cannabis Beverage Collaboration Is Finally Here

Although Health Canada did not make the rollout of the cannabis 2.0 market as seamless as possible, we believe that some of the big issues with the program have been fixed. As companies successfully bring cannabis 2.0 products to market, we expect medical and recreational sales numbers to continue to rise and this is a trend that we are bullish on.

Even though we like to blame Health Canada for many of the issues with the cannabis market, much of the blame can be put on the companies. For example, HEXO Corp. (HEXO.TO) (HEXO) was expected to be a leader in the cannabis 2.0 market due to the strategic relationship that it has with Molson Coors (TAP.CN).

After more than 18 months, the HEXO and Coors partnership seems to be gaining traction and this is a development that we are closely following. During the last year, HEXO has been under substantial pressure and we believe that the relationship with Coors could prove to be the catalyst that the Canadian cannabis producer needed.

Truss Beverage Co. is the name of brand that was formed by the companies and we will monitor how the brand is able to gain traction with consumers. According to a new study from Truss Beverage, 71% of Canadians of legal age cite smoking as the primary barrier to consuming cannabis, with 74% saying the smell of cannabis on their clothing is an issue (based on the Cannabis Culture Report 2020: Cannabis Usage & Attitudes, DIG Insights, May 2020).

Earlier this week, Truss Beverage introduced 5 cannabis beverage brands and plans to rollout one of the widest cannabis beverage portfolios to the Canadian market. The market has responded very favorably to developments that are related to the partnership with Molson Coors and expect this announcement to serve as a catalyst for the stock.

Truss’ cannabis beverage portfolio includes a variety of CBD and THC products that are full of natural flavors and we are favorable on the diversity of the product line. The products that were rolled out include:

  • Little Victory: Naturally flavored sparkling beverages
  • House of Terpenes: A range of sparkling tonics with botanically sourced terpenes
  • Mollo: Crisp with an easy drinking taste
  • Veryvell: A complete line-up of products to support self-care
  • XMG: Bold and high intensity flavored beverages

One of the reasons we are excited about the relationship with Molson Coors is due to the experience and the track record that the alcohol conglomerate has. Backed by 150 years of beverage experience, Truss Beverage is highly focused on the development of a range of cannabis beverages that focus on great taste, consistency and choice.

Truss Beverage has a well-rounded portfolio of cannabis beverages that are designed to meet the needs of consumers and we are favorable on the brand that is backing the product line. We believe that the launch of high-profile brands like Truss will bring new consumers to the cannabis market and expect this development to support the growth of the entire industry.

As mainstream brands continue to jump on the cannabis (CBD and THC) bandwagon, we expect more consumers to join the movement. We continue to believe that the cannabis industry is in the early innings of a major growth cycle and believe that companies like Molson Coors add more credibility to the industry.

Over the next few months, Truss Beverage plans to continue to roll out new cannabis beverage products. All beverages within Truss’ portfolio offer a controlled dosage and we expect this aspect of the brand to attract new consumers. Many consumers trust the Molson Coors brand and we expect this to benefit HEXO over the long-term.

If you are interested in learning more about how HEXO and Molson Coors plan to capitalize on the cannabis beverage market through Truss Beverage, please send an email to support@technical420.com to be added to our distribution list.

Share

Share - Facebook


Share - Twitter

Authored By

Michael Berger

Michael Berger is Managing Partner 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 Wed, 26 Aug 2020 11:28:00 +0000

Cardiol Therapeutics Initiates Health Canada Approved Phase 1 Clinical Study of CardiolRx(TM)

Cardiol Therapeutics Initiates Health Canada Approved Phase 1 Clinical Study of CardiolRx(TM)

Cardiol Therapeutics Inc. (TSX: CRDL) (OTCQX: CRTPF) (“Cardiol” or the “Company“), a leader in the development of pharmaceutical cannabidiol formulations for the treatment of cardiovascular diseases, including heart failure and acute myocarditis, is pleased to announce the initiation of its Health Canada approved Phase 1 clinical study of CardiolRx™. CardiolRx is an extra strength formulation of pharmaceutical cannabidiol that has been formulated to set the highest industry standard for purity, consistency, and stability.

Cardiol’s Phase 1 clinical trial is a double-blind, placebo-controlled, randomized study to assess safety, tolerability, and pharmacokinetics of single followed by multiple day ascending doses of CardiolRx administered orally in up to 55 healthy adult subjects, both in the fasting and fed states. The study is expected to be completed during Q4, 2020, and is believed to represent the first Health Canada approved study of a high concentration (100 mg/mL) cannabidiol formulation that contains virtually no THC (<5 ppm). This level of purity is extremely important for patient populations who should not take THC, particularly children, where THC can impact brain development, and older individuals who wish to avoid intoxication and who may be more susceptible to adverse drug effects.

By measuring standard safety parameters and the pharmacokinetics of CardiolRx, including the degree of drug absorption and resulting blood levels at escalating doses, the Phase 1 study will provide important information to optimize dosing levels for the Company’s planned Phase 2 international trial in acute myocarditis. Cardiol’s acute myocarditis trial has been designed by an independent steering committee comprising highly distinguished thought leaders in heart failure and myocarditis from international centers of excellence, including: the Cleveland Clinic, the Mayo Clinic, the Houston Methodist DeBakey Heart and Vascular Center, the University of Ottawa Heart Institute, McGill University Health Centre, University of Pittsburgh Medical Center, and Charité Hospital Berlin.

Acute myocarditis is an inflammatory condition of the heart that represents a leading cause of sudden cardiac death in children and otherwise healthy young adults. The most common cause of acute myocarditis is a viral infection of the heart tissue which is initially responsible for the inflammation. Based on the large body of experimental evidence of the anti-inflammatory and cardioprotective properties of cannabidiol in models of cardiovascular disease, the Company believes there is an opportunity to develop a potential breakthrough therapy for acute myocarditis that would be eligible for designation as an orphan drug. The U.S. orphan drug program was created to offer companies significant incentives, including multi-year marketing exclusivity, to develop treatments for diseases that affect fewer than 200,000 people in the U.S. The program was successfully utilized to accelerate the first FDA approval of cannabidiol for the treatment of two pediatric epilepsy syndromes as orphan diseases. Cardiol believes there is a similar opportunity to fast track the development of its CardiolRx formulation as an orphan drug for the treatment of acute myocarditis, for which there is currently no accepted standard of care.

“There is now increasing evidence that the SARS-CoV-2 virus (responsible for COVID-19) is causing a disturbing number of new cases of myocarditis in young adults, perhaps most notably Red Sox pitcher Eduardo Rodriguez and several U.S. college football players. As global awareness of the devastating consequences of acute myocarditis increases in the wake of the COVID-19 pandemic, we see an opportunity to accelerate the development of CardiolRx as an important new cardioprotective therapy,” said David Elsley President and CEO of Cardiol Therapeutics Inc. “The initiation of our Phase 1 clinical study represents another significant milestone for Cardiol, as we aim to position the Company at the forefront of heart failure research.”

About Cardiol Therapeutics

Cardiol Therapeutics Inc. (TSX: CRDL) (OTCQX: CRTPF) is a leader in the development of pharmaceutical cannabidiol formulations for the treatment of cardiovascular diseases, including heart failure and acute myocarditis. The Company’s lead product, CardiolRx™, is pharmaceutically produced, manufactured under cGMP, and is THC free (<5 ppm). The Company plans to commercialize CardiolRx in the billion-dollar market for medicinal cannabinoids in Canada.

Cardiol is planning a Phase 2 international trial of CardiolRx in acute myocarditis, a condition caused by inflammation in heart tissue, which remains the most common cause of sudden cardiac death in people less than 35 years of age. The Company is also developing proprietary cannabidiol formulations for the treatment of inflammation in the heart that is associated with the development and progression of heart failure. Heart failure is the leading cause of death and hospitalization in North America, with associated annual healthcare costs in the U.S. alone exceeding $30 billion. For further information about Cardiol Therapeutics, please visit cardiolrx.com.

For further information, please contact:

David Elsley, President & CEO +1-289-910-0850
david.elsley@cardiolrx.com

Trevor Burns, Investor Relations +1-289-910-0855
trevor.burns@cardiolrx.com

Cautionary statement regarding forward-looking information:

This news release contains “forward-looking information” within the meaning of applicable Canadian securities laws. All statements, other than statements of historical fact, that address activities, events, or developments that Cardiol Therapeutics Inc. (“Cardiol” or the “Company”) believes, expects, or anticipates will, may, could or might occur in the future are “forward- looking information”. Forward-looking information contained herein may include, but is not limited to, statements with respect to the expected completion of the Phase 1 clinical study in Q4, 2020 and the Company’s plans to commercialize CardiolRx and for an international clinical study of CardiolRx. Forward-looking information contained herein reflects the current expectations or beliefs of Cardiol based on information currently available to it and is subject to a variety of known and unknown risks and uncertainties and other factors that could cause the actual events or results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. These risks and uncertainties and other factors include that the risks and uncertainties associated with product commercialization and clinical studies referred to in the Company’s Annual Information Form dated March 30, 2020. These risks, uncertainties and other factors should be considered carefully, and investors should not place undue reliance on the forward-looking information. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Cardiol disclaims any intent or obligation to update or revise such forward-looking information, whether as a result of new information, future events or results or otherwise. Although Cardiol believes that the expectations reflected in the forward-looking information are reasonable, they do involve certain assumptions, risks, and uncertainties and are not (and should not be considered to be) guarantees of future performance. It is important that each person reviewing this news release understands the significant risks attendant to the operations of Cardiol.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/62556

copyright (c) newsfile corp. 2020

Published at Wed, 26 Aug 2020 11:37:03 +0000

Surna Introduces Expanded Services and Technology Offerings

Surna Introduces Expanded Services and Technology Offerings

Surna Inc. (OTCQB: SRNA) today announced an expansion of its portfolio of services and products.

While Surna has been historically known for its expertise in 2 and 4-pipe chilled water solutions (also known as hydronic cooling and dehumidification), its new technology offerings include:

  • Direct expansion (DX) units with standalone dehumidification options, including split systems, mini-splits and packaged roof top units (RTUs).
  • Complex DX system options with integrated dehumidification via hot gas reheat and wintertime economization.
  • Desiccant solutions for low humidity applications.
  • Racking solutions for optimal airflow designs in tiered layouts.

Many clients have already benefited from Surna’s expanded MEP (mechanical, electrical, plumbing) engineering services incorporating the new technologies. Four recent contracts include the following designs:

  • Project in Missouri: Surna will provide engineering design services for cooling, dehumidification and wintertime economization using its new Complex DX RTU systems in a 33,000 square foot facility. Surna is also providing its new racking airflow design and technology in this tiered grow room design.
  • Project in Iowa: Surna is providing its design services and DX split systems with hot gas reheat for a 5,000 square foot indoor drying facility for industrial hemp production.
  • Project in Michigan: Surna provided engineering design services for cooling and dehumidification using its new DX split systems with hot gas reheat in a 1,200 square foot facility.
  • Project in Pennsylvania Surna will provide engineering design services using its new Complex DX RTU systems with integrated dehumidification in a 52,000 square foot facility.

The new technology offerings are driven by customer feedback and are evidence of Surna’s commitment to deliver innovative environmental control solutions to its customers, with the added convenience of obtaining products and MEP design services from a single source.

“These new products and services demonstrate Surna’s evolution and deliver on promises we have made to our customers and shareholders,” said Tony McDonald, Surna’s Chairman and CEO. “With this broader range of design services and greatly expanded product portfolio, we are able to provide optimal environmental control solutions for virtually any size and sophistication of cultivation facilities.”

About Surna Inc.

Surna Inc. (www.surna.com) designs, engineers and sells cultivation technologies for controlled environment agriculture including: (i) liquid-based process cooling systems and other climate control systems, (ii) air handling equipment and systems, (iii) a full-service engineering package for designing and engineering commercial scale thermodynamic systems specific to cannabis cultivation facilities, and (iv) automation and control devices, systems and technologies used for environmental, lighting and climate control. Our customers include commercial, state- and provincial-regulated cannabis growers in the U.S. and Canada as well as other international locations, including those growers building new facilities and those expanding or retrofitting existing facilities. Currently, our revenue stream is derived primarily from supplying our products, services and technologies to commercial indoor and hybrid sealed greenhouse facilities ranging from several thousand to more than 100,000 square feet.

Headquartered in Boulder, Colorado, we leverage our experience in this space to bring value-added climate control solutions to our customers that help improve their overall crop quality and yield, optimize energy and water efficiency, and satisfy the evolving state and local codes, permitting and regulatory requirements. Although our customers do, we neither produce nor sell cannabis.

Statement about Cannabis Markets

The use, possession, cultivation, and distribution of marijuana is prohibited by U.S. federal law for medical and recreational purposes. Although certain states have legalized medical and recreational cannabis, companies and individuals involved in the sector are still at risk of being prosecuted by federal authorities. Further, the landscape in the cannabis industry changes rapidly. This means that at any time the city, county, or state where cannabis is permitted can change the current laws and/or the federal government can supersede those laws and take prosecutorial action. Given the uncertain legal nature of the cannabis industry, it is imperative that investors understand that investments in the cannabis industry should be considered very high risk. A change in the current laws or enforcement policy can negatively affect the status and operation of our business, require additional fees, stricter operational guidelines and unanticipated shutdowns.

Surna Marketing

Jamie English
Managing Director of Marketing
jamie.english@surna.com
(303) 993-5271

Primary Logo

Source: GlobeNewswire (August 25, 2020 – 9:15 AM EDT)

News by QuoteMedia
www.quotemedia.com

Published at Tue, 25 Aug 2020 13:19:23 +0000

ManifestSeven Reports Second Quarter 2020 Financial Results

ManifestSeven Reports Second Quarter 2020 Financial Results

ManifestSeven, California’s first integrated omnichannel platform for legal cannabis, today announced its financial results for the second quarter ended May 31, 2020. The results follow the Company’s receipt last month of conditional approval for the listing of its common shares on the Canadian Securities Exchange (“CSE”). All financial information in this press release is provided in U.S. dollars unless otherwise indicated.

Financial Highlights:

  • Revenue increased 116% year-over-year and 23% sequentially to $5.0 million.
  • Gross profit increased 216% year-over-year and 40% sequentially to $1.8 million.
  • Gross margin was 35.1% of revenue, up from 24.0% of revenue for the second quarter ended May 31, 2019, and 30.8% of revenue for the first quarter ended February 29, 2020.
  • Net loss decreased 64% year-over-year and 79% sequentially to ($1.1) million.

Operational Highlights:

  • The Company achieved robust growth across all of its core operating segments, demonstrating growing demand for M7’s distribution, delivery, and retail services despite the impact of COVID-19.
  • M7 significantly expanded the scope of its distribution coverage of California, with the number of licensed retailer accounts serviced by the Company’s distribution division totaling 211 as of May 31, 2020.
  • The Company increased its retail presence in core markets throughout California, with the number of customers in California serviced by M7’s delivery and retail division increasing 268% year-over-year.
  • M7 successfully implemented a targeted cost reduction program focused on non-core assets and operations without materially impacting its ability to generate revenue, resulting in a 31% sequential reduction in operating expenses and advancing the Company on its pathway to net profitability.

Management Commentary:

“We embarked upon a new quarter just as the COVID-19 crisis began to express itself around the world and seemingly without any warning, bringing with it an unprecedented operating environment and capital markets landscape,” said Sturges Karban, M7’s Chief Executive Officer. “We focused our efforts during the quarter primarily on two core missions: preserving our longstanding trend of sequential top-line growth, while also aligning our cost structure to accelerate the Company’s efforts to achieve net profitability.”

Mr. Karban added, “We are proud to announce that, as borne out by this quarter’s financial results, we have successfully delivered on both of these critical objectives as we look toward our impending public listing on the CSE later this summer. In particular, we achieved significant growth in our delivery operations during this three-month period, as consumers adjusted their buying behavior to comply with statewide shelter-in-place orders, resulting in the acquisition of a considerable number of new customers who discovered and utilized our delivery services during the COVID-19 crisis for the first time.”

“While the extraordinary global events that shaped the first half of this calendar year have presented new and unexpected challenges, it is impossible to ignore how the same events have also energized and validated the cannabis industry at large, for example, by reminding legislators at every level that legal cannabis constitutes a growing force within state and local economies, a robust engine for legitimate job creation, and a product category that will sustain consumer demand even in the face of the most economically constraining contexts. In many ways, COVID-19 has proven that legal cannabis is here to stay—and, after successfully persevering through the last several months, so is M7,” concluded Mr. Karban.

Summary Financial Results:

Three Months Ended

% Change

May 31,
2020

February 29,
2020

May 31,
2019

Sequential

Year-Over-
Year

Revenue

$

4,994,711

$

4,064,655

$

2,310,484

23

%

116

%

Gross Profit

$

1,753,884

$

1,252,182

$

554,969

40

%

216

%

Gross Margin

35.1

%

30.8

%

24.0

%

14

%

46

%

Operating Expenses

$

3,783,003

$

5,452,383

$

4,328,065

(31

%)

(13

%)

Net Income (Loss)

($

1,080,924

)

($

5,095,913

)

($

3,025,975

)

(79

%)

(64

%)

ABOUT MANIFESTSEVEN:

ManifestSeven is the first integrated omnichannel platform for legal cannabis, merging compliant distribution with a retail superhighway. M7, with offices in Commerce and Irvine, California, services the needs of lawful operators across the supply chain, from the cultivator to the consumer, through an expansive network of four facilities stretching from the San Francisco Bay Area to San Diego. M7 further augments its business-to-business value proposition with a growing portfolio of owned and operated retail operations located in major metro markets, including brick-and-mortar dispensaries, local on-demand delivery services, e-commerce, and subscription offerings.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS:

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs and assumptions regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. This forward-looking information is based on certain assumptions made by management and other factors used by management in developing such information. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in its entirety by this notice.

Copyright Business Wire 2020

Source: Business Wire (August 5, 2020 – 9:14 AM EDT)

News by QuoteMedia
www.quotemedia.com

Published at Wed, 05 Aug 2020 14:05:59 +0000