Newstrike invests $5-million in vape maker Green Tank
Newstrike Brands Ltd. said Thursday it is making a US$5-million investment in Green Tank Technologies, a manufacturer of cannabis vape hardware and technology. The investment by Newstrike strengthens the existing partnership between Newstrike’s wholly-owned subsidiary, Up Cannabis, and Green Tank, as both companies prepare for the legalization of cannabis oil vaping. “Our strategic investment in Green Tank puts us in a strong position to become a preferred supplier of end-to-end vape solutions to the adult use recreational market,” said Mark Burton, chief strategy officer at Newstrike Brands. Newstrike’s equity stake in Green Tank follows on Up Cannabis’ September, 2018, supply agreement with Green Tank for private-label vaporization hardware.
WeedMD seeks Health Canada approval for outdoor grow
Toronto-based WeedMD Inc. said Wednesday it has applied for an amendment to Health Canada for its Strathroy licence to expand beyond its existing cultivation with an initial 25-acre outdoor cannabis grow operation with the capacity to increase up to 50 acres. The company says it has secured the support of the Municipality of Strathroy-Caradoc for its planned outdoor grow expected to be completed in two phases. In 2019, Phase I will be brought online, representing more than 25 acres of production, with an additional 25 acres planned for Phase II in 2020. Pending Health Canada approval, the outdoor grow is expected to increase WeedMD’s total production footprint to upwards of 2.7 million square feet with the potential to yield more than 100,000 kgs of cannabis in 2020 together with greenhouse cultivation.
Court approves sale of Ascent’s Canadian assets
The B.C. Supreme Court has given the greenlight to Ascent Industries Corp. to sell it’s Canadian assets to BZAM Management Inc., a subsidiary of Cayman-island domiciled Gulf Bridge Ltd. BZAM will pay $29-million in cash, and assume approximately $12.5-million of Ascent’s liabilities. Gulf Bridge was already Ascent’s largest creditor, owning the company’s $7-million Mortgage. The deal appears to bring to a close a months-long saga that embroiled the company after Health Canada suspended the licenses of its subsidiary Agrima Botanicals for alleged black market activity. Ascent will retain its U.S. and overseas assets. The court-monitored deal, which is taking place under the Creditors Arrangement Act, is expected to close on or before April 3, 2019.
– Mark Rendell