Table of contents WeedMD gets $39-million credit facility from BMO • High Tide reports Q1 loss on increase in revenue • Canopy Rivers portfolio company gets second licence • Pure Sunfarms doubles annual targeted production • Liberty Health Sciences approved to sell pre-rolls in Florida
WeedMD gets $39-million credit facility from BMO
WeedMD said Monday its has entered into a credit facility with Bank of Montreal. The licensed producer and distributor of medical-grade cannabis says BMO will provide up to $39-million of secured debt financing at a rate of interest that is expected to average in the low-to-high 5-per-cent-a-year range over a three-year term. The facility consists of a $33.1-million term loan, a $3-million equipment term loan and a $3-million revolving credit facility, all of which mature in 2022. Toronto-based WeedMD also said Monday it has exercised its option to purchase the Health Canada-licensed, 98-acre Strathroy property from Perfect Pick Farms. The Strathroy purchase includes the licensed 610,000 sq. greenhouse, more than 100,000 sq. ft. of ancillary structures and all other infrastructure and equipment as well as 50 acres of land upon which the company intends to cultivate outdoor cannabis.
High Tide reports Q1 loss on increase in revenue
Calgary-based cannabis retailer High Tide Inc. said on Monday its first-quarter 2019 revenue jumped to $5 million but it reported a loss of $3.8 million in its first financial period to include three full months of sales post-legalization, which have been hindered by the national supply shortage and caused a licence moratorium in Alberta and limited opportunities in Ontario. In the three-month period ended Jan. 31, High Tide, which owns Canna Cabana stores, received $1.8 million in gross margins, or 35.8 per cent, compared with $1.5 million in the year-ago quarter, or 53 per cent. Company assets rose to $39.1 million by Jan. 31 from $25.9 million three months prior.
– Marcy Nicholson
Canopy Rivers portfolio company gets second licence
Canopy Rivers Inc. said Monday that James E. Wagner Cultivation Corporation – one of Canopy Rivers’ portfolio companies – has received a cultivation licence from Health Canada for its Kitchener, Ont.-based commercial scale production facility (”JWC2”). This second licence launches the initial phase of JWC2, a 345,000 square foot production and distribution complex where JWC is rolling out more than 130 individual production rooms. The company says the newly licenced facility is located just minutes from JWC’s already licenced pilot facility, JWC said it expects to commence cannabis production at JWC2 immediately. Canopy Rivers currently holds approximately 13 per cent of the issued and outstanding common shares in the capital of JWC on a fully-diluted basis.
Pure Sunfarms doubles annual targeted production
Village Farms International, Inc. announced Monday that Pure Sunfarms, its 50 per-cent-owned joint venture for large-scale cannabis production, has exercised its option on the existing 1.1 million square foot Delta 2 greenhouse facility currently owned by Village Farms in Delta, British Columbia. The Delta 2 facility is a newer, nearly identical “sister” facility immediately adjacent to the 1.1 million square foot Delta 3 greenhouse facility. The company says the addition of the Delta 2 greenhouse operation doubles Pure Sunfarms’ total production area to 2.2 million square feet and with total production about 150,000 kilograms.
Liberty Health Sciences approved to sell pre-rolls in Florida
Liberty Health Sciences Inc. said Monday it had received approval from the Florida Department of Health (DOH) last week to sell pre-rolls along with whole flower smokable products to medical cannabis patients in Florida. Liberty says it will be one of the first companies to offer pre-rolls of cannabis in a variety of strains and potencies, which will be available for purchase in Liberty dispensaries across the state. Patients will now be able to smoke the substance legally under a bill (SB 182) signed into law last week by Governor Ron DeSantis, which revoked the existing ban on smoking medical marijuana. The new law provides patients the ability to access medicine in the form their doctor determines best for them, whether it’s smoking medical marijuana or utilizing other delivery systems. Liberty operates 12 dispensaries in Florida.