The Hemp Club TOP 5 – Wednesday Market Report
CANNABIS MARKET TODAY
- MEDMEN NEWS: () (OTC:MMNFF) has signed an agreement to acquire the retail operations and license for a location in Santa Ana, California, through an all-stock transaction with ().
Upon closing, MedMen will issue 3,740,228 Class B subordinate voting shares to Captor, a Canadian publicly-traded investment company. At the current market price of the share, the transaction is valued at approximately $16M.
- NAC Corp NEWS: retailer watches 24/7 to scoop up scarce Canadian supply.
Desperate times call for desperate measures in Canada’s supply-constrained pot industry.
National Access Cannabis Corp., the country’s largest private marijuana retailer with 17 stores, has a team of five people watching 24/7 for new inventory from Alberta’s provincial regulator, which controls wholesale pot distribution.
“At 3:30 in the morning all of a sudden $4,000 worth of inventory is made available yet in seven minutes it’s drawn down, meaning that other big competitors are doing the same thing,” Mark Goliger, chief executive officer of Ottawa-based NAC, said in a phone interview Friday.
This will affect NAC’s plans to have 50 stores open nationally by the end of the year and may result in “cash flow constraints” depending how long the ban lasts, Goliger said. NAC, which operates the Meta and NewLeaf banners, has 13 stores in Alberta and was aiming for 25 by the first quarter of 2019.
Shares in NAC have dropped almost 50 per cent from a peak in July, giving it a market value of about $107 million.
- THC GLOBAL NEWS: THC Global Group Ltd () has entered into a binding agreement to conduct due diligence for the acquisition of a Canadian medicinal cannabis company.
The Canadian company is in the final stages of becoming a licenced producer of cannabis.
On acquisition, THC Global will complete the build-out of a full-scale cannabis growing facility which will be able to offer direct retail sales in addition to supporting other commercial sales.
This deal provides the opportunity for THC Global to own a full-scale cannabis growing facility in Canada in addition to its Australian facilities.
ENDOCA NEWS : () has secured exclusive rights to import Endoca’s cannabidiol (CBD) products from Europe into New Zealand.
Furthermore, it has established a supply chain to patients through a strategic partnership with DATAPHARM.
ZELDA NEWS: () (OTCMKTS:ZLDAF) has expanded a human clinical trial program to use cannabinoid medications in patients on chronic, high dose opioid pain management therapy.
This will see Zelda partner with St Vincent’s Hospital in Melbourne in a clinical trial partnership to examine the potential to use certain cannabinoid medications.