Cannabis Professional’s daily roundup of industry news. View archive here.
Canopy Rivers’s joint venture with Mastronardi Produce has received a cultivation license from Health Canada. Meanwhile, Zenabis and Starseed have signed a $10-million supply agreement, and Fire & Flower is acquiring a dispensary in Regina for around $4-million. CannTrust provided an incremental update from the special committee looking into the company’s regulatory breach, saying that the committee has “filed a response to the Health Canada report on July 17, 2019.” Finally, SLANG said that it has gained exposure to the European medical market, after its partner Global Cannabis Corp, received a license from the Greek government.
– Mark Rendell
PharmHouse gets cultivation licence
The most significant cultivation asset in Canopy Rivers’ portfolio has received a cultivation license from Health Canada, Rivers announced on Monday.
PharmHouse Inc. is a large, newly-built greenhouse complex in Leamington, Ont. co-owned by Rivers (49 per cent) and Mastronardi Produce Ltd., the agriculture firm behind Sunset brand produce. The first 190,000 square feet of the 1.3 million square foot facility is now licensed to grow cannabis.
“Through the Joint Venture Partners, PharmHouse has access to plant science, automation, and logistical expertise that has been developed over multiple generations by a continental leader and garnered recognition and support from some of the largest retailers and wholesalers throughout Canada and the United States,” Rivers said in a news release.
PharmHouse already has offtake agreements in place with sister company Canopy Growth Corp. and investee TerrAscend Corp., which combined will account for 50 per cent of PharmHouse’s 2020 cannabis production.
CannTrust provides incremental update from special committee
CannTrust Holdings Inc. said Monday morning that the special committee, appointed to investigate the regulatory breach at the company, has “filed a response to the Health Canada report on July 17, 2019. The Company is awaiting Health Canada’s response.”
In the news release, CannTrust announced the names of the independent directors sitting on the committee: Robert Marcovitch (chairman), Shawna Page, Mark Dawber, and John Kaden. Cannabis Professional reported the members of the special committee last Thursday.
The incremental update contained little on how CannTrust intends to manage the fallout from revelations that the company grew thousands of kilograms of cannabis in unlicensed rooms.
“Although we want to move as quickly as possible, we are mindful of the critical need to be thorough,” Mr. Marocovitch said in the news release.
“At this time, the impact of these matters on CannTrust’s financial results is unknown. Further updates will be provided as they become available,” the company said.
Zenabis signs $10-million supply agreement with Starseed
Starseed Medicinal Inc. is advancing $10-million to Zenabis Global Inc. as part of a pre-paid supply agreement that will see Zenabis grow cannabis for Starseed over the next two years.
“Under the terms of the Supply Agreement, Zenabis will deliver a maximum monthly quantity of dried cannabis flower or trim to Starseed, at Starseed's option, commencing in October 2019. Zenabis expects the Prepaid Amount to be retired within 18 to 24 months,” Vancouver-based Zenabis said in a news release on Monday.
“The pricing under the Supply Agreement will vary depending on the product type and format Starseed elects to order,” the company said.
Earlier in July, Zenabis signed a $30-million pre-paid supply deal with High Park, a subsidiary of Tilray Inc. With $40-million worth of pre-paid agreements in place, “we no longer intend to draw on the existing $60 million unsecured convertible debenture facility to fund such expansion or working capital,” said CEO Andrew Grieve in the news release.
Fire & Flower to buy Regina dispensary for around $4-million
Fire & Flower Holdings Corp. is acquiring a retail store in Regina for $1.5-million in cash and roughly $2.6-million worth of shares.
The dispensary is currently owned by Ontario LP-applicant Mera Cannabis Corp., formerly known as Avana Canada Inc. As part of the acquisition, Fire & Flower will become the exclusive distributor of Mera products in Saskatchewan, once Mera receives the required licences from Health Canada.
“The Acquisition is subject to receipt of all licences and permits required to operate a cannabis retail store, including approval by the SLGA,” said Fire & Flower in a news release on Monday.
SLANG gains European exposure through Greek partner
SLANG Worldwide Inc. has gained its first exposure to the European medical cannabis market, after its partner Global Cannabis Corp. received a “medical cannabis installation license” from the Greek government, SLANG announced on Monday.
“SLANG has worked closely with GCC throughout the application process and has been instrumental in assisting GCC with the design and content of its license application. In exchange ... SLANG has been granted a 20% interest in GCC,” the Toronto-based cannabis brand house said in a news release on Monday.
“SLANG intends to leverage its relationship with GCC to introduce its brand portfolio to the European Union, with products in market in 2020. The Company expects to collect licensing revenues in Greece similar to its partnerships in the United States.”