Cannabis Professional’s daily roundup of industry news. View archive here.
Trichome Financial said it will begin trading on TSX Venture Exhange; AltaCorp. has initiated coverage of MediPharmp; MedMen has ripped up its deal to acquire PharmaCann and fired its CFO; and Aurora has launched a line of sublingual wafers with CTT Pharmaceutical Holdings.
– Rob Gilroy
Trichome shares to start trading on TSX-V on Thursday
Shares of Trichome Financial Corp. will start trading on the TSX Venture Exchange on Thursday, following the reverse takeover of shell company 22 Capital Corp. and a non-brokered private placement in which Trichome raised around $16.5-million.
The company’s business model revolves around private lending in the cannabis space. Unlike private equity firms, such as Canopy Rivers Inc., Trichome’s focus is on debt financing rather than taking equity positions in cannabis companies.
As CEO Micahel Ruscetta explained in a recent Q&A with Cannabis Pro: “The nice thing about our business model is we can make money in a range of different ways that isn’t predicated on picking stocks. We don’t have to pick winners. We have to underwrite well to ensure our money comes back to us, and charge appropriately for it.”
In connection with the RTO, Trichome elected a new board of directors consisting of Timothy Diamond, Marissa Lauder, Marc Lustig, Jonathan Page, Michael Ruscetta, Christian Sinclair and Howard Steinberg.
– Mark Rendell
AltaCorp initializes MediPharm coverage with ‘outperform’
AltaCorp Capital Research said on Monday it initiated coverage of MediPharm Labs Corp. with an “outperform” rating and a 12-month price target price of $7.50.
The investment dealer said MediPharm, a cannabis extraction and cannabinoid isolation company in Canada and Australia that focuses on private label agreements, is poised to benefit from global demand for extracts and derivative products in recreational, medical and pharmaceutical segments.
MediPharm was the first fully licensed extraction-only cannabis company in Canada and benefits from being one of the “early-movers” in the extraction sector. It has the “highest trailing twelve months revenue among peers,” AltaCorp said.
- Marcy Nicholson
MedMen ends PharmaCann takeover, fires CFO
MedMen Enterprises Inc. today announced the mutual agreement to acquire PharmaCann LLC in an all-stock transaction has been cancelled. MedMen says the decision was based on “market developments over the past 12 months and the continued evolution of its business strategy.” In connection with the termination, PharmaCann has agreed to transfer certain cannabis licenses and related assets in Illinois and Virginia to MedMen for no additional consideration from MedMen.“The cannabis sector has evolved tremendously since we first announced the PharmaCann transaction and based on the current macro-environment and future opportunities that exist for our business, we believe it is now in the best interest of our shareholders to deepen, rather than widen, our Company’s reach,” said Adam Bierman, MedMen co-founder and chief executive officer.
On Dec. 24, 2018, MedMen announced that it had entered into the definitive agreement to acquire PharmaCann, in which PharmaCann unitholders were expected to receive approximately 168.4 million shares in the combined company, based on MedMen’s fully diluted shares outstanding as of June 29, 2019.
MedMen also announced that chief financial officer Michael Kramer was fired Monday, 7, and will be succeeded by Zeeshan Hyder, who was the company’s chief corporate development officer.
Aurora, CTT launch ‘Dissolve Strips’ wafers
Aurora Cannabis and CTT Pharmaceutical Holdings announced today the launch of CTT’s cannabinoid-infused sublingual wafers. The new cannabis product will be sold in the Canadian medical cannabis market under the brand name “Dissolve Strips”. Edmonton-based Aurora says it has an ownership interest in CTT of approximately 9 per cent, with a warrant allowing it to increase its stake to 42.5 per cent, and access to CTT’s sublingual wafers drug delivery technology, which is patent protected or patent pending in multiple jurisdictions. “The product launch with Aurora of the Dissolve Strips is a major milestone for us that marks the transition of CTT from a technology development phase to a revenue generating phase," Hamilton-based CTT’s CEO Cam Birge said.