by Grow Up Conference | Jun 28, 2024 | Cannabis Prospect Magazine, Media Partners
Ayurcann Holdings Corp., an award winning Canadian cannabis extraction company specializing in the processing and manufacturing of pharma grade cannabis and hemp for various derivative cannabis products, and Arogo Capital Acquisition Corporation, a special purpose acquisition company, announced today that they have entered into a definitive business combination agreement dated June 26, 2024. The Business Combination is an arm’s length agreement. In connection with the Transaction, ARC Group Limited will receive finder’s fees in the amount of 799,731 common shares of the Company.
“Ayurcann is one of the most innovative companies we have encountered, particularly in cannabis extraction and product development. With their impressive achievements and forward-looking plans, this business combination is set to drive the business onto a new growth trajectory, enhancing its capabilities and expanding the market reach in meaningful ways,” says Suradech Taweesaengsakulthai, CEO and Director of Arogo.
About Ayurcann
Ayurcann is focused on its operational expertise and gaining market share in every product category, and its management team believes that Ayurcann’s strong market share capture is driven by the quality and reputation of its brands. By continuously providing high-quality products, innovations and value that complement our current market offerings, Ayurcann continues to look for opportunities to increase revenue.
Financial Highlights
Ayurcann financial highlights include 100% year over year growth of gross revenue over the last three audited financial reporting years, based on Ayurcann’s audited financial statements available under its profile on SEDAR+. These results have been achieved only 2.5 years after being licensed to sell cannabis products in Canada.
“We are proud of our team for what we have achieved as a company,” said Igal Sudman, Chief Executive Officer of Ayurcann. “The business combination with Arogo, is our next step in growing the company nationally while allowing us to also look for international opportunities.”
Summary of the Transaction
Under the terms of the Business Combination Agreement, by way of a plan of arrangement under the provisions of the Business Corporations Act (Ontario), a Canadian merger sub will amalgamate with and into Ayurcann, which will become a direct, wholly owned subsidiary of the post-business combination publicly traded entity, and a Delaware merger sub will merge with and into Arogo, as a result of which Arogo will become a direct, wholly owned subsidiary of the post-business combination publicly traded entity. At the effective time of the Transaction, shareholders of Ayurcann immediately prior to the effective time will receive shares of common stock of the publicly traded entity based on an implied pro forma enterprise value of approximately $210 million, at a price of $10.00 per share. Ayurcann’s common shares are anticipated to be valued upon closing of the proposed Transaction at approximately $1.00 based on the current number of fully diluted outstanding common shares before consolidation to be completed in connection with the proposed Transaction. At the closing of the proposed Transaction, Arogo expects to have up to US$19.6 million in cash on its balance sheet (assuming no redemptions by Arogo’s stockholders and before payment of Transaction expenses and deferred underwriting fees), including existing cash brought over from Ayurcann’s balance sheet, any capital raised in connection with the Transaction, and expected cash proceeds from Arogo’s trust account, which is expected to be used to support general business activities, including new product development, new distribution networks, and exploring national and international acquisition opportunities.
The Transaction is expected to close in the second half of 2024, subject to the receipt of all regulators, court, shareholder and other approvals, and the satisfaction or waiver of all customary closing conditions. The Transaction is subject to the approval of the Ontario Superior Court of Justice (Commercial List). The Transaction will also require the approval at a special meeting of Ayurcann’s shareholders of not less than two-thirds (66 2/3%) of the votes validly cast by Ayurcann’s shareholders, present in person or by proxy at the special meeting. The Transaction will also require the approval of Arogo’s stockholders and the U.S. Securities and Exchange Commission (“SEC”) declaring the registration statement effective.
The directors, senior officers and certain other shareholders of Ayurcann have entered into a support agreement with Arogo to, among other things, support the Transaction and vote their Ayurcann shares in favor of the Transaction. Shareholders of Ayurcann will hold rights of dissent to the Transaction under the Business Corporations Act (Ontario).
The Board of Directors of Ayurcann unanimously recommends that Ayurcann shareholders vote in favor of the resolution to approve the Transaction, which will be the subject of the Ayurcann meeting expected to be held in the third quarter of 2024. There are currently 194,703,863 common shares of the Company issued and outstanding. Following the Transaction, the Company anticipates that approximately 260,703,863 common shares of the Company will be issued and outstanding, which will be consolidated on a 10:1 ratio in connection with the Transaction, resulting in approximately 26,070,386 common shares.
The Transaction remains subject to certain other closing conditions, including the receipt of certain approvals and the satisfaction of certain customary closing conditions, including but not limited to a committed PIPE financing or other mutually satisfactory financing.
Further information regarding the Transaction will be included in Ayurcann management information circular to be mailed to Ayurcann shareholders in advance of the Ayurcann special meeting and in Ayurcann’s material change report in respect of the announcement of the Transaction, each of which will be filed with the Canadian securities regulators and will be available under Ayurcann’s profile on SEDAR+.
Advisors
Brown Rudnick LLP is representing Arogo as U.S. legal counsel and Fasken Martineau DuMoulin LLP is representing Arogo as Canadian legal counsel. Sichenzia Ross Ference Carmel LLP is representing Ayurcann as U.S. legal counsel and Garfinkle Biderman LLP is representing Ayurcann as Canadian legal counsel. ARC Group Limited is acting as sole financial advisor to Ayurcann. EF Hutton, division of Benchmark Investments, LLC, is serving as capital markets advisor to Arogo.
About Arogo
Arogo Capital Acquisition Corp. is a blank check company. Arogo aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization. For more information, visit www.arogocapital.com.
Additional Information and Where to Find It
For additional information regarding the Business Combination Agreement and the proposed Transaction, see Arogo’s Current Report on Form 8-K, which was filed with the U.S. Securities and Exchange Commission (“SEC”) concurrently with this press release. In connection with the proposed Transaction, Arogo intends to file with the SEC a registration statement on Form F-4 (the “Registration Statement), and after the Registration Statement is declared effective by the SEC, Arogo intends to mail a definitive proxy statement/prospectus relating to the Transaction to its stockholders. The management information circular to be mailed to Ayurcann shareholders in advance of the Ayurcann special meeting and Ayurcann’s material change report in respect of the announcement of the Transaction will contain further details regarding the Transaction and will be available under Ayurcann’s profile on SEDAR+. This press release does not contain all the information that should be considered concerning the proposed Transaction and is not intended to form the basis of any investment decision or any other decision in respect of the proposed Transaction. Arogo’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus and the amendments thereto and the definitive proxy statement/prospectus and other documents filed in connection with the proposed Transaction with the SEC by Arogo, as these materials will contain important information about Ayurcann, Arogo, and the proposed Transaction. When available, the definitive proxy statement/prospectus and other relevant materials for the proposed Transaction will be mailed to stockholders of Arogo as of a record date to be established for voting on the proposed Transaction. Such stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus and other documents filed with the SEC, without charge, once available, at the SEC’s website at www.sec.gov, or by directing a request to Arogo Capital Acquisition Corporation, 848 Brickell Ave, Penthouse 5, Miami, FL 33131.
by Grow Up Conference | Jun 28, 2024 | Cannabis Prospect Magazine, Media Partners
Pure Sunfarms Corp., a wholly owned subsidiary of Village Farms International, Inc., announces the launch of ‘Trials by Pure Sunfarms’, an innovative program aimed at offering consumers limited batch, ‘Trial’ cultivars for the first time. This program will be launching exclusively to consumers in Pure Sunfarms’ home market of British Columbia (“B.C.”)
‘Trials by Pure Sunfarms’ is a grower-led initiative aimed at bringing consumers exclusive access to limited-release strains. Created by its expert cultivation team as part of the company’s trialing process, each cultivar featured in Pure Sunfarms’ Trials series is carefully selected for its unique expressions and special characteristics—such as aromas, colour, and bud structure.
Twenty percent of B.C. consumers identify as ‘cannabis connoisseurs’, and almost 30 percent prioritize high quality in their selections1. Through this program, B.C. consumers will be offered an exclusive look at the company’s hand-selected strains, grown in small batches.
“We are committed to the art and science of cannabis cultivation. Our team of expert growers is constantly trialing, experimenting, and pheno-hunting to discover unique strains,” said Orville Bovenschen, President and CEO at Pure Sunfarms. “With the launch of ‘Trials’, we’re bringing B.C. consumers and budtenders closer to our process and products than ever before, with exclusive small batches that offer a one-of-a-kind experience. We hope to captivate consumers with these limited-release cultivars grown right here in their backyard.”
The first small batch release is Trial No. 001 (Gas Face x Purple Kush) a heavy-hitting indica that was hand-selected by Pure Sunfarms’ growers for its dank nose and chunky trichome-rich buds. Its aromas are distinct and complex with pungent gassy notes balanced by a creamy, slightly citrussy finish. Trial No. 001 will be available to consumers in Pure Sunfarms’ home market of B.C. as of July 1, 2024, with new additional limited small batches to be released in the months to come.
About Pure Sunfarms
Pure Sunfarms is a global leader in cultivation, operating one of the largest cannabis facilities in the world. With a focus on high-quality BC-grown cannabis, the company combines decades of agricultural and legacy experience with large-scale operational excellence in its state-of-the-art greenhouses located in Delta, British Columbia. Known as a top-selling brand of recreational dried flower across Canada, as well as a top licensed producer, Pure Sunfarms is renowned for producing popular cultivars like its Pink Kush.www.puresunfarms.com
by Grow Up Conference | Jun 28, 2024 | Cannabis Prospect Magazine, Media Partners
Every year, hundreds of people are killed, and thousands are injured in alcohol, cannabis and/or drug-related crashes. With the Canada Day long weekend around the corner, MADD Canada (Mothers Against Drunk Driving) is reminding everyone to keep safety top of mind and avoid driving impaired. The nationwide holiday, which is celebrated coast to coast, marks the official start of the summer, but also brings an increased risk of impaired driving incidents.
“We want everyone to enjoy their Canada Day celebrations and make wonderful memories with family and friends,” said MADD Canada National President Tanya Hansen Pratt, whose mother, Beryl, was killed by an impaired driver in 1999. “However, it is crucial that these memories are happy and not marred by an impaired driving crash. If you plan to consume alcohol, cannabis and/or other drugs, please ensure you have a safe and sober way to get home.”
For the holiday long weekend, MADD Canada is urging all Canadians to help prevent impairment-related crashes, death and injuries by:
- Always planning ahead so you know how you are getting home safely;
- Never driving a car, boat, ATV or any other vehicle while impaired;
- Never getting into a vehicle being operated by someone who’s impaired;
- Calling 911 if you see a driver you suspect is impaired.
“Canada Day is a time of joy and pride for our beautiful country,” said Ms. Hansen Pratt. “Let’s all do our part to ensure it remains safe and happy for everyone. Remember, impaired driving is not worth the risk – not to you, your passengers, or anyone else on the road.”
Those looking for a safe, sober and reliable ride home at the push of a button can check out Uber, MADD Canada’s Official Designated Driving App. Visit https://www.uber.com/ca/en/ for more information.
For more information, contact
Tanya Hansen Pratt, MADD Canada National President, 705-623-3148 or thansenpratt@madd.ca.
Arielle Nkongmeneck, MADD Canada Communications Manager, 1-800-665-6233 ext. 240 or ankongmeneck@madd.ca.
About MADD Canada
MADD Canada (Mothers Against Drunk Driving) is a national, charitable organization that is committed to stopping impaired driving and supporting the victims of this violent crime. With volunteer-driven groups in close to 100 communities across Canada, MADD Canada aims to offer support services to victims, heighten awareness of the dangers of impaired driving and save lives and prevent injuries on our roads. To learn more, visit www.madd.ca.
by Grow Up Conference | Jun 28, 2024 | Cannabis Prospect Magazine, Media Partners
High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced today that its Canna Cabana retail cannabis store located at 40 Great Plains Road, Emerald Park, Saskatchewan will begin selling recreational cannabis products and consumption accessories for adult use on Saturday, June 29. Additionally, its store located at 122 4 Avenue West, Cochrane, Alberta, will open on Sunday, June 30. These openings will mark High Tide’s 175th and 176th Canna Cabana locations in Canada.
Emerald Park is situated just east of Regina. Established in the 1980s, this full-service community features large estate homes surrounded by many parks and recreation facilities. This brand-new Canna Cabana opens in a fully built-out former retail cannabis store, with high visibility and access from the Trans-Canada highway.
Cochrane is a rapidly growing community just outside of Calgary. The town has a 5-year growth rate of 34.31%, a median household income of $127,000, and a one-year business growth rate of 7.20%. Canadians and international tourists come to Cochrane on their way to Banff National Park, visiting the many small businesses and national chains along Main Street.
“I am pleased to announce the opening of two new Canna Cabana stores, one of which is our 175th location in Canada. These new store openings showcase the continued momentum we are generating from taking over leases of fully built cannabis locations as many of our publicly traded and private competitors continue to go out of business. This saves our company time, money and other resources while continuing to propagate the Canna Cabana brand in communities across the country,” said Raj Grover, Founder and Chief Executive Officer of High Tide.
“With 14 new locations announced since the beginning of this year, we remain on target to reach our communicated goal of adding 20 to 30 new Cabanas by the end of this calendar year. Given our strong free cash flow profile, we plan to continue our brisk greenfield trajectory, which may be supplemented by additional M&A in the second half of this year. I’m excited about how our innovative discount club model is continuing to outperform our peers, and we are confident our market share will increase as our retail expansion picks up steam,” added Mr. Grover.
About High Tide
High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world’s most powerful plant and is the second-largest cannabis retailer in North America by store count1. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including Bricks & Mortar Retail: Canna Cabana™ is the largest non-franchised cannabis retail chain in Canada, with 176 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in North America.
by Grow Up Conference | Jun 28, 2024 | Cannabis News Wire, Media Partners
The state of Florida is trying once again to legalize the recreational use of cannabis via a ballot proposal. If the ballot measure acquires the 60% majority needed to approve a ballot initiative, the state would join 16 other states that have legalized adult-use marijuana by the ballot.
The committee behind this latest push, Smart & Safe Florida, revealed that it had broken fundraising records. The initiative in question is the most funded proposal of this year, with the entity raising more than any other cannabis-related ballot initiative committee.
In just one election cycle and with the election itself only five months away, Smart & Safe Florida has managed to raise more than $40 million. This means that it has officially outdone fundraising for the measure that led to the legalization of recreational cannabis in the state of California. Unlike this current campaign, eight committees supported California’s Proposition 64, raising just a bit more than $36 million.
Jeanne Hanna, the Center for Political Accountability director of research, revealed in a recent interview that medical cannabis companies could be injecting funds into this ballot initiative because of possible pitfalls and risks that may come up.
Another record was surpassed by Trulieve, a medical marijuana company with more than 100 locations in Florida. The company donated more than $8 million in March to the campaign, making it the biggest single donation made to any recreational cannabis legalization resolution from a sole donor made in America.
Contributions made by Trulieve during this election cycle total more than $34 million, which is almost five times the next biggest aggregate donations for a proposal of this kind. The company also put up another $20 million before the current election cycle’s reporting dates, bringing cumulative spending on this proposal to more than $54 million.
The company’s contributions account for more than 80% of the financing for the committee.
UC Davis director of the Cannabis Economics Group, Robin Goldstein, stated that it was difficult to see why Trulieve would contribute so much when it had been hard for recreational retailers in legal markets to breakeven. Goldstein posited that analysts or investors who indicated that there was money to be made in the space weren’t being very realistic, given that the launch of a legal market would increase competition while also opening the space up to more efficiency and technology. Additionally, he continued, people would be able to produce marijuana more cheaply and in larger quantities.
The fact that so much money is being invested in the push to legalize adult-use marijuana in Florida shows the extent to which the movement to end prohibition and allow licensed entities such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) to serve customers has grown around the country.
About CannabisNewsWire
CannabisNewsWire (“CNW”) is a specialized communications platform with a focus on cannabis news and the cannabis sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled recognition and brand awareness. CNW is where breaking news, insightful content and actionable information converge.
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by Grow Up Conference | Jun 28, 2024 | Cannabis News Wire, Media Partners
- Cargo Management Group acquisition includes a full-fledged logistics operation, brokerage business, licenses and all associated assets
- Acquisition helps move GTVH toward goal of becoming a highly profitable company with minimal to zero debt and a diverse asset portfolio
- Along with acquisition, company receives full financial support from T&K Zarro to fund key components of new venture
In a strategic move that aligns with the company’s vision “to assemble a strong portfolio of successful businesses under one overarching umbrella” (https://cnw.fm/HWyV8), Golden Triangle Ventures (OTC: GTVH) (“GTV”) has announced a full-service freight brokerage business designed to significantly expand its logistics capabilities (https://cnw.fm/rMOmx).
The announcement comes as the company completed its acquisition of Cargo Management Group from T&K Zarro LLC (https://cnw.fm/GDTTC) and received the full financial commitment needed to launch the freight brokerage business. The Cargo Management Group acquisition includes a full-fledged logistics operation, brokerage business, licenses and all associated assets.
“The acquisition of Cargo Management Group is a transformative step for GTV,” said Golden Triangle Ventures CEO Steffan Dalsgaard. “This deal provides a scalable business model that will support both Lavish Entertainment and the development of our future flagship project, Destino Ranch. This business, its income and our recently completed renegotiations on our outstanding note will dramatically impact our balance in a positive manner. Additionally, this helps move GTV toward its goal of becoming a highly profitable company with minimal to zero debt and a diverse asset portfolio.”
Golden Triangle Ventures also noted that, along with the acquisition, the company received full financial support from T&K Zarro to fund key components for the freight brokerage business, including state-of-the-art freight brokerage software and load board subscriptions to streamline all operations and improve service delivery. In addition, Cargo Management Group has noted key steps it is planning in order to ensure a successful launch. These steps include establishing a new location and call center to drive sales and manage operations efficiently; hiring and training skilled freight brokers, dispatchers and customer service representatives; and developing a comprehensive marketing strategy to attract new clients and build strong industry partnerships.
Golden Triangle Ventures noted that its new freight brokerage business will leverage Cargo Management Group’s current infrastructure as well as its extensive industry relationships. The company, which reported nearly $3 million in revenue in 2023, has an impressive portfolio of contracts with industry leaders, including J.B. Hunt, C.H. Robinson, Coyote Logistics and Echo Global Logistics. These established partnerships will enable Cargo Management Group to provide comprehensive logistics solutions, including freight brokerage services, to its diverse clientele.
“I am excited to see Cargo Management Group become an official part of Golden Triangle Ventures,” said Tom Zarro, the owner of Cargo Management Group and GTV’s largest note holder. “This acquisition aligns perfectly with GTV’s strategic vision and offers a recession-proof, scalable and profitable business model. With GTV’s expertise and resources, their team has given me full confidence in their ability to expand this enterprise far beyond my current capabilities. As a major investor in GTVH, I remain fully committed to supporting all their endeavors that enhance shareholder value.”
A multifaceted consulting company, Golden Triangle Ventures operates as a parent business pursuing ventures in the health, entertainment and technology sectors. The company is looking to purchase, acquire and/or joint venture with established entities within these areas of business. The goods and services represented are driven by innovators who have passion and commitment in these marketplaces. The company plans to utilize relationships and create a platform for new and existing businesses to strengthen their products and/or services. The three points of the Golden Triangle exclusively represent the three sectors the company aims to do business in.
For more information, visit the company’s website at www.GoldenTriangleInc.com.
NOTE TO INVESTORS: The latest news and updates relating to GTVH are available in the company’s newsroom at https://cnw.fm/GTVH
About CannabisNewsWire
CannabisNewsWire (“CNW”) is a specialized communications platform with a focus on cannabis news and the cannabis sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled recognition and brand awareness. CNW is where breaking news, insightful content and actionable information converge.
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by Grow Up Conference | Jun 27, 2024 | Media Partners, Stratcann
Peace officers with New Brunswick’s Department of Justice and Public Safety arrested two people and seized contraband cannabis products from a dispensary in Saint John while executing a search warrant on June 19.
The store targeted was the Gitpu Trading Post, located at 91 Russell St.
Officers seized a relatively small amount of cannabis for this type of raid, along with several thousand in cash:
- two kilograms of dried cannabis
- 170 grams of hashish
- two vape pens containing THC
- 34 jars and packages of cannabis shatter
- 42 cannabis distillate cartridges
- 29 cannabis food products
- 18 jars of cannabis resin
- $3,710.60 in cash
The Department of Justice and Public Safety say that a 30-year-old man and a 30-year-old woman, both of Saint John and employees at the store, are expected to face charges under the federal Cannabis Act. They are scheduled to appear in court at a later date.
New Brunswick recently passed legislation to give its peace officers more powers to enforce provincial cannabis rules. A representative with the province says more than 100 illegal cannabis stores are operating there as of April 1. Despite this new bill, the province maintains that it cannot enforce its cannabis rules on businesses operating in First Nations communities and reserves.
Peace officers also arrested two people in two separate raids in Moncton in early May and two more in a raid in Saint John later the same month. Officers arrested one in a similar raid in Bathurst in April. In addition, seven were arrested in three raids in Saint John and Moncton in April.
In March, peace officers with the New Brunswick Department of Justice and Public Safety arrested two people and seized contraband cannabis and other illegal products from two unlicensed cannabis stores.
The province has recently announced several new licensed cannabis locations, including one on Germain Street in Saint John, intending to supplant these types of unlicensed stores.
by Grow Up Conference | Jun 27, 2024 | Cannabis News Wire, Media Partners
A recent nationwide study has revealed that secondhand harm from cannabis use is significantly less common than that from alcohol. The study, which surveyed thousands, found that respondents were almost six times more likely to report secondhand alcohol harm than cannabis harm. The perceived risks associated with opioids and other substances also outweighed those associated with marijuana.
The study analyzed responses from 7,799 participants in the 2020 United States National Alcohol Survey. It showed that more than one-third (34.2%) of respondents had experienced alcohol-related secondhand harm at some point in their lives. In contrast, only 5.5% reported experiencing secondhand harm due to marijuana.
Concerning other substances, 7.6% of respondents claimed to have suffered negative effects from the use of opioids by others, and 8.3% reported negative effects from other nonspecific drugs. In the past year, alcohol remained the leading cause of secondhand harm, with 6.2% of respondents affected. This was followed by other substances (2.2%), opioids (2%) and marijuana (1.8%).
The authors also found that different demographic groups had varying experiences with secondhand harm caused by substance use. There were noticeably more reports of secondhand harm from women, white people, those with a family history of alcoholism, and those who were divorced, separated or bereaved. Among these harms were marriage and family problems, road accidents, physical harm, vandalism and money troubles.
For marijuana, a higher likelihood of secondhand harm was reported among Black respondents. However, the authors suggest that many of these harms may be linked to punitive cannabis policies rather than the substance itself.
Interestingly, the survey found that individuals who consumed alcohol were slightly more likely to report secondhand harm. The authors suggest this may be because heavy drinkers are more often in the company of other heavy drinkers. Conversely, frequent cannabis users reported significantly lower odds of experiencing secondhand harm, which aligns with previous research.
Despite the higher reports of alcohol-related secondhand harm compared to cannabis or other substances, the authors expressed some skepticism about the reliability of the participants’ responses. For example, they speculated that marijuana users might report lower cannabis-related secondhand harm because its use often coincides with opioid and alcohol use, leading respondents to attribute harm more to opioids or alcohol than to marijuana.
The study aims to expand the understanding of substance-related harms by focusing on the impact on the family and friends of drug users, not just the users themselves.
Cannabis legalization supporters state that the findings support existing research. Commenting on the study, NORML’s deputy director Paul Armentano noted in a blog post that the public health impact of cannabis is far less severe than that of alcohol, a reality that most adults now recognize.
As more misconceptions about marijuana are dispelled by scientific studies, the industry is likely to deepen its penetration of different markets and create even more opportunities for ancillary companies such as Innovative Industrial Properties Inc. (NYSE: IIPR) that serve marijuana businesses.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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by Grow Up Conference | Jun 27, 2024 | Cannabis Prospect Magazine, Media Partners
Organigram Holdings Inc., a leading licensed producer of cannabis, is pleased to announce its first significant strategic investment aimed at expanding its presence in the European cannabis market. Using proceeds from its Jupiter strategic investment pool, the Company has agreed to invest €14 million (~ C$21 million) initially comprised of €11.5 million via an unsecured convertible note and €2.5 million to purchase equity interests from existing Sanity Group founders and shareholders providing the Company with a minority stake in Berlin-based cannabis company Sanity Group GmbH (“Sanity” or “Sanity Group”). In addition, the Company may advance another €3 million (~ C$4.5 million) as a second tranche of the unsecured convertible note for future opportunities to be pursued by Sanity subject to the satisfaction of certain conditions.
Sanity has quickly established itself as a leader in the German cannabis market where it maintains a robust distribution network with over 2,000 pharmacies working with approximately 5,000 physicians in Germany. Sanity currently holds approximately a 10% share of the German medical cannabis market where its medical brand, avaay, is estimated to hold the number two position and has shown impressive revenue growth since the recent legal reforms regarding partial legalization of adult-use recreational cannabis in Germany. Additionally, Sanity is currently participating in a Swiss recreational cannabis pilot program in the Basel canton, with one store operational and a plan to expand its retail footprint in Switzerland. In the coming months, Sanity is expected to invest in proprietary distribution channels providing it with what it believes will be a competitive advantage that capitalizes on new medical consumers entering the market.
The Company’s investment also expands the previously announced supply agreement between Organigram and Sanity Group. Until such time as Organigram receives EU-GMP certification at its Moncton production facility, Sanity Group has committed to purchase significantly higher annual volumes of dried flower under the new agreement as compared to the previous one. Once Organigram receives EU-GMP certification in Moncton, Sanity Group will shift its annual purchase commitment from Organigram to a percentage of its overall assortment of flower offerings for the European market. Organigram expects to complete its final EU-GMP audit before the end of the calendar year. Additionally, the new commercial agreement contemplates, subject to terms and conditions, avenues by which Organigram can launch its industry-leading brands, products, and IP in the German market.
“A meaningful presence in Germany and Europe are essential to achieving our ambitions to be a global cannabis leader. We believe that after Canada, Germany will emerge as one of the more promising markets under a nationally legal model,” said Paolo De Luca, Chief Strategy Officer of Organigram. “With its evolving program for medical cannabis and recent limited legalization for recreational consumption, Germany may eventually adopt a full adult-use cannabis framework. This growth opportunity is magnified by positive regulatory developments in several neighbouring European jurisdictions where Sanity Group is expanding its presence,” he concluded.
“Our investment in Sanity Group establishes a significant European footprint for us. Organigram benefits from Sanity’s expertise and insights in the German (and in the future) other European cannabis markets. This has the potential to provide a pathway for us to launch our own brands and industry-leading IP through Sanity’s extensive distribution network. This relationship also bolsters our European revenue generation through a significantly expanded commercial agreement,” said Beena Goldenberg, CEO of Organigram.
“We are extremely pleased to close this strategic financing with Organigram who has consistently demonstrated itself to be a leader in the highly competitive and regulated Canadian cannabis market,” said Finn Hansel, co-founder and CEO of Sanity Group. “With its commitment to responsible R&D, innovation and product development, including through its relationship with BAT (British American Tobacco), we feel that we have chosen a partner that will support us in becoming a leader in the rapidly expanding legal European markets,” he concluded.
The German and European Cannabis Market
The German cannabis industry is poised for significant expansion following the recreational cannabis legal reforms enacted on April 1, 2024. According to BDSA estimates, Germany is expected to bring in ~USD$1.5 billion in total sales in 2024, set to grow to ~USD$3.7 billion by 2027. This remarkable growth is driven by a 30-50% increase in medical cannabis prescriptions since April 1, 2024, a likely result of the regulatory framework changes that may have accelerated the shift by consumers from the illicit market to the legal market. Germany’s cannabis industry progress is also anticipated to create a ‘ripple effect’, potentially shaping economic, regulatory, public health, and cultural landscapes across Europe. The success of Germany’s cannabis industry could serve as a catalyst for a more unified and progressive approach to cannabis legalization and regulation across the continent.
Strategic Rationale and Potential Opportunities
- Establishes a significant European footprint for Organigram through a leading regional cannabis company with a presence in multiple markets.
- Organigram benefits from Sanity’s expertise and insights in the German (and in future) other European cannabis markets.
- Provides a pathway for Organigram to launch its own brands and industry-leading IP in Europe through Sanity’s extensive distribution network.
- Bolsters Organigram’s European revenue generation through an expanded commercial agreement with improved terms and commitments.
- Further investment opportunities may allow Organigram to increase its unsecured convertible note and ownership position in Sanity Group.
Investment Details
- €14 million initial investment consists of €11.5 million structured as an unsecured convertible note (the “Note”) issued by Sanity Group to the Company as lender and €2.5 million of already issued equity interests purchased from existing shareholders.
- The Note yields 10% annual paid-in-kind (PIK) interest for a minimum of three years and is convertible at a discount to the price established by Sanity Group’s next qualified financing into the most senior class of shares (currently Series B).
- Organigram has an option, subject to certain terms and conditions, to invest an additional €3 million on substantially the same terms as the Note which would bring its total investment to €17 million.
- Sanity’s use of proceeds includes investments in various initiatives that are expected to give it access to over 100,000 patients, and aid in recreational cannabis pilot project expansion in applicable regions.
- Notable previous investors in Sanity Group include BAT, Casa Verde Capital (Snoop Dog), Will.i.am (Black Eyed Peas), Navy Capital, Scooter Braun and Alyssa Milano amongst others.
About Organigram Holdings Inc.
Organigram Holdings Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiary Organigram Inc. is a licensed producer of cannabis, cannabis-derived products and cannabis infused edibles in Canada. Organigram is focused on producing high-quality cannabis for adult recreational consumers, as well as developing international business partnerships to expand the Company’s global footprint. Organigram has also developed and acquired a portfolio of adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer. Organigram operates production facilities in Moncton, New Brunswick and Lac-Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada).
About Sanity Group
Berlin-based Sanity Group aims to improve people’s quality of life through the use of cannabinoids and the endocannabinoid system. In addition to pharmaceuticals, the focus is also on wellbeing and cosmetic products that utilize cannabinoids. Sanity Group, founded in Berlin in 2018 by Finn Age Hänsel, includes Vayamed and AVAAY Medical (medicinal cannabis), Endosane Pharmaceuticals (minority investment in finished pharmaceuticals), and VAAY (wellbeing). Close to Frankfurt, Sanity Group also operates a storage facility for cannabis extracts and flower. More information can be found on sanitygroup.com/press.
by Grow Up Conference | Jun 27, 2024 | Cannabis Prospect Magazine, Media Partners
Lifeist Wellness Inc., a health-tech company that leverages advancements in science and technology to build breakthrough ventures that transform human wellness, reports that management became aware of an unprecedented settlement between Anson Funds and the United States Securities and Exchange Commission dated June 11, 2024. Lifeist is in the process of carefully reviewing and considering the said settlement and examining all legal options with counsel. The Company will promptly report to shareholders at such time as we have made a determination with counsel. A copy of the settlement is publicly available at https://www.sec.gov/files/litigation/admin/2024/ia-6622.pdf.
“We were shocked and dismayed at the enumeration of the sanctioned activities in the SEC’s published settlement order,” said Meni Morim, CEO of Lifeist. “We have long suspected that something untoward might be happening in the market internals and trade patterns of our common shares but never had any concrete evidence thereof. Now that we do, we are exploring all options on behalf of shareholders.”
Lifeist will formally update shareholders at such time as it has made a legal determination with counsel on how to proceed.
About Lifeist Wellness Inc.
Sitting at the forefront of the post-pandemic wellness revolution, Lifeist leverages advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include: Mikra, a biosciences and consumer wellness company developing and selling innovative products for cellular health; and CannMart, which operates a B2B wholesale distribution business facilitating recreational cannabis sales to Canadian provincial government control boards including for CannMart Labs, a BHO extraction facility producing high margin cannabis 2.0 products.
Information on Lifeist and its businesses can be accessed through the links below:
www.lifeist.com
https://wearemikra.com/
https://cannmart.com
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