Canadian cannabis stocks started the week on a strong note and we are monitoring how this rally continues.
Last week, this sector traded volatile after the TSX said it would restrict listed companies from owning U.S. cannabis operations. We believe the market overreacted to this announcement and the weakness created a great opportunity for investors.
Today, we have highlighted five Canadian company developments that we think cannabis investors need to be aware of.
Aurora and Radient Extend Negotiations
Yesterday, Aurora Cannabis Inc. (ACB.TO) (ACBFF) and Radient Technologies Inc. (RTI.V) traded higher after both parties have agreed to a 17-day extension (through November 6th) on the 140-day term under which Aurora was granted certain exclusive rights to negotiate the acquisition of certain exclusive rights to use Radient’s technology and processes.
The companies reported that significant progress has been made towards finalizing the agreement. We are favorable on the potential of this partnership. The combination of Aurora’s cannabis and Radient’s technology has the potential to create a major player in the global cannabis oil market.
Canopy and DNA Holdings Renew Partnership
Canopy Growth’s (TWMJF) (WEED.TO) subsidiary, Tweed Inc., and DNA Holding announced the renewal and expansion of their partnership through October 2022. Under the agreement, DNA’s cannabis genetics will be exclusively grown and sold in Canada by Tweed.
DNA and Tweed are expanding this exclusive licensing relationship into Jamaica, where they will work to cultivate the best possible cannabis genetics. As a part of the related compensation package, DNA may be issued 79,717 common shares of WEED.TO subject to achieving certain milestones.
Isodiol Makes Major Phytoceutical Breakthrough
Isodiol International Inc. (ISOL.CN) (ISOLF) said that its Phytoceutical division announced the launch of the market’s first non-cannabis, highly bioactive cannabinoid, CBD, derived from the Hops plant. The cannabinoids are derived using proprietary genetics and extraction technology that will allow for the isolation of the cannabinoids and terpenes without denaturing the molecule. Isodiol expects the products to be ready for distribution within the next 4 weeks.
Supreme Expands Capacity
Supreme Pharmaceuticals (FIRE.V) (SPRWF) traded higher after announcing that its subsidiary, 7ACRES, obtained approvals from Health Canada to commence cultivation at the recently completed 30,000 sq. ft. flowering rooms. The additional flowering area has 3 modular 10,000 sq. ft. rooms and increases the size of the flowering facility from 10,000 sq. ft. to 40,000 sq. ft.
We are favorable on this announcement and expect to see it benefit the licensed producer’s revenue numbers. Earlier this year, Health Canada’s revised its licensing process and these additional flowering rooms were approved pursuant to the revised process. We will keep an eye on how Supreme continues to execute and will provide updates as needed.
Organigram Hires VP for International Opportunities
Yesterday, Organigram Holdings Inc. (OGI.V) (OGRMF) announced the appointment of Larry Rogers as the company’s Vice President of International Business Development. This move is being done to support the company’s international opportunities.
credit:420intel.com
