Medical marijuana plants are pictured in this file photoDave Chan/The Globe and Mail
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Liberty Health Sciences Inc. (LHS-CN) issued a statement late Thursday in response to the memorandum on marijuana enforcement issued by U.S. attorney general Jeff Sessions.
"It is our interpretation that the memorandum ... is largely in response to the recreational cannabis marketplace in California becoming effective on Jan. 1, 2018. It does not affect the medical cannabis marketplace," the company stated. "The memorandum does nothing other than rescind the Obama-era Cole Memorandum, and it restates the well-established criteria associated with prosecutorial authority and decisions within the U.S. Attorney General's Office."
The company also said it believes the memorandum is "not in tune with the realities of the modern-day U.S. cannabis marketplace, and that the apparent shift in policy ignores the strong bi-partisan support for medical and recreational cannabis within the U.S."
The company said it remains "committed to producing medical – not recreational – cannabis in the U.S. states where medical cannabis is legal."
Liberty Health Sciences issued a separate release on Friday saying it's raising $15-million in a bought-deal agreement with Clarus Securities Inc., on behalf of a syndicate of underwriters. They will buy 7.1 million units at $2.10 each. The company said it intends to use the net proceeds for working capital and general corporate purposes.
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MPX Bioceutical Corp. (MPX-CN) also issued a statement after markets closed about the memo from Mr. Sessions: "The company is interpreting the memo to mean that enforcement decisions will be left up to the U.S. attorney's in the respective states," the company stated, "clearly indicating that the burden is with federal prosecutors deciding which cases to prosecute by weighing all relevant considerations.'"
Chairman Scott Boyes described it as a "rather innocuous directive and consider it unlikely that federal prosecutors will take much enforcement action in those states where the legalization of cannabis has been implemented as a result of a ballot initiative supported by a majority of the state's electorate or by an act of the respective state's legislature." Mr. Boyes also stated that, "while the Sessions memo has caused some consternation in the industry, we do not expect it to have any material impact on the growth of the sector as a whole, or to weigh down the prospects for MPX. For us it's business as usual."
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Reitmans Canada Ltd (RET.A-T) says sales for the five weeks ended Dec. 30 dropped 1.1 per cent, with a net reduction of 38 stores. Same-store sales increased 0.9 per cent, with stores decreasing 2.1 per cent and e-commerce sales increasing 20.9 per cent.
Sales for the nine weeks ended Dec. 30 decreased 0.3 per cent with 38 fewer stores in operation. Same-store sales increased 1.7 per cent, with stores decreasing 1.5 per cent and e-commerce sales increasing 25.1 per cent.
In the fourth quarter to date, the company said it opened seven stores and closed four. It had 655 stores in operation as of Dec. 30, compared to 693 stores for the same period a year earlier.
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Aurora Cannabis Inc. (ACB-T) says it purchased 91,800 common shares of CanniMed Therapeutics Inc. (CMED-T), bringing its stake to about 2.7 per cent or about 657,800 shares. Its average price paid is $22.98. The stock closed Thursday at $24.52. The company launched a hostile bid for CanniMed late last year.
Aurora has said it's allowed to buy up to about five per cent of the Saskatoon-headquartered CanniMed's stock on the open market. On Wednesday, CanniMed urged shareholders not to sell, arguing Aurora's hostile proposed all-stock deal has had a detrimental effect on its share price.
--with a file from The Canadian Press
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Automotive Properties Real Estate Investment Trust (APR.UN-T) says it has an agreement to buy a dealership property in Kitchener-Waterloo, Ont. to be redeveloped for a luxury high-end car company. "The REIT expects to invest approximately $7.5-million including the purchase price, redevelopment costs and related expenses," it stated. "The REIT intends to satisfy the purchase price through draws on its existing credit facilities."
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MYM Nutraceuticals Inc. (MYM-CN) issued a statement Friday noting that Australia will "expunge the export ban on cannabis products" next month and allow the worldwide exportation of cannabis-based treatments such as oils, patches, sprays, lozenges and tablets.
"The Australian federal government has big ambitions for Australia to become the largest producer of medicinal cannabis products in the world," the company stated.
MYM has an Australian joint venture company, Solaris Nutraceuticals, that is currently in the assessment phase of the licensing process to build a 1.2 million-square-foot greenhouse facility.
"MYM expects that exportation of cannabis products from Australia will be big business and could even outstrip domestic sales," the company said.
In a separate release, MYM Nutraceuticals Inc. said it plans to buy Budly Software Inc., a software company that has developed a smartphone-enabled sales and distribution system. The system connects medicinal cannabis patients with local dispensary drivers for delivery and monitoring of orders.
"The Budly software is a game-changer for MYM because it brings us one step closer to becoming a fully integrated global cannabis company," commented Rob Gietl, CEO of MYM.
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Newstrike Resources Ltd. (HIP-X), which has a friendly offer to be taken over by CanniMed Therapeutics (CMED-T), says Health Canada has approved the application by its subsidiary, Up Cannabis Inc. to amend its license. The change allows Up Cannabis to sell cannabis in dried marijuana form, in accordance with Access to Cannabis for Medical Purposes Regulations, the company said.
"We are delighted to have achieved this major strategic milestone in our growth strategy," said Jay Wilgar, CEO of Newstrike and Up Cannabis in a release. "We already have a significant inventory in place, a supply agreement with CanniMed, and a unique marketing strategy being developed with our creative partners, The Tragically Hip. Up Cannabis is extremely well-positioned to succeed and very excited to launch when the adult-use market opens in the coming months."
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