In this week’s "Rising High," The Fly’s recurring series focused on cannabis and psychedelic stock news, The Fly looks back on a business combination agreement, a notice of allowance and product launches.
ALEAFIA, RED WHITE & BLOOM ENTER COMBINATION AGREEMENT: Red White & Bloom Brands (RWBYF) and Aleafia Health (ALEAF) announced Wednesday that they have entered into a binding letter agreement, whereby the Red White & Bloom has agreed to acquire Aleafia and its subsidiaries in a business combination transaction. Under the terms of the agreement, each outstanding common share in the capital of Aleafia will be exchanged for 0.35 of a common share in the capital of the company, subject to customary adjustment. Upon the completion of the transaction, existing RWB shareholders are expected to own approximately 76% of the combined company and Aleafia shareholders are expected to own approximately 24% of the company. The agreement provides for the parties to enter into a definitive arrangement agreement setting out the final terms and conditions of the transaction.
“The intended acquisition of Aleafia expands our footprint to the largest federally legal cannabis market globally," said Brad Rogers, CEO and Director of RWB. “Combining our award-winning brands and IP with Aleafia’s proven cultivation, manufacturing, and distribution capabilities, creates one of the most dynamic cross border companies in the industry. We continue to focus on delivering significant value to our shareholders and believe this transaction aligns with that commitment.”
The transaction is expected to be completed by way of a court-approved plan of arrangement under the Business Corporations Act. Under the terms of the agreement, RWB will acquire all of the issued and outstanding Aleafia Shares in exchange for RWB Shares on the basis of the Exchange Ratio. Outstanding options and warrants to purchase Aleafia shares will become exercisable to acquire RWB shares on the same terms and conditions, on the basis of the Exchange Ratio. Outstanding restricted and deferred share units of Aleafia will be settled upon closing in RWB Shares on the basis of the Exchange Ratio. Completion of the transaction will be subject to customary closing conditions and receipt of necessary court and regulatory approvals, including stock exchange approval. Subject to receipt of all necessary approvals, the transaction is expected to close by no later than 5:00 p.m. on October 31, 2023.
IGC PHARMA RECEIVES NOTICE OF ALLOWANCE FOR PATENT: IGC Pharma (IGC) announced Tuesday that it has received a Notice of Allowance from the Commissioner of Patents, Canada, for its patent filing on the use of cannabinoids in the treatment of seizures. The formulation also received an intent to grant from the European Patent Office. With these awards, and a previous one, the formulation for treating seizures is protected in the U.S., Canada, and certain European countries. IGC provided animal data, with dogs, on the reduction in the number of seizures by using a combination of cannabidiol and phenobarbital versus either alone. The company intends to pursue the combination in further trials with a view towards monetizing the formulation as soon as practical.
AURORA LAUNCHES NEW PRODUCT LINEUP IN CANADA: Aurora Cannabis (ACB) announced Tuesday it is launching a fresh lineup of products, available to patients on Aurora Medical and consumers, at retailers across the country this summer. The company’s portfolio includes new 1mg format, snackable edibles, premium resin vape carts, and a signature hash. New flower products include Chemango Kush, an original strain from Occo, Aurora’s breeding program, as well as 14g format extensions on strains, Moon Berry and Pink Diesel.
"We continue to evolve our portfolio with the consumer and patient top-of-mind, developing products that deliver on both current and future wants and needs," said Lana Culley, VP of Product Development. "With the introduction of innovations like our snackable, low dose Lil’ Bits and our XL premium resin vape pens, we’re ensuring consumers and patients can find within Aurora’s family of brands superior products as they progress on their cannabis journey. The success of our Canadian innovation is applicable in key markets internationally and is receiving very positive patient feedback."
CANOPY GROWTH EXPANDS PRODUCT PORTFOLIO IN QUEBEC: Canopy Growth Corporation (CGC) announced Thursday a partnership with VASCO Cannabis, a Quebec-based cannabis cultivator. Through the partnership, Canopy Growth will produce and supply craft cannabis for distribution under the Vert Collab brand which, at launch, will include one new strain for the Quebec market. Canopy is also introducing Maitri, the company’s second Quebec-focused brand that will offer locally sourced flower for the province.
"This is just the beginning of our reinvigorated strategy to deliver quality, Quebec-cultivated products for our consumers across the province," said Dave Paterson, President, Canopy Growth Canada. "By partnering with VASCO – a Quebec producer renowned for their innovative grow techniques, as well as introducing a second dedicated Quebec brand in Maitri to offer high quality flower, we’re excited to increase our portfolio within the province. We are looking forward to announcing additional products and collaborations over the coming months."
PURE SUNFARMS LAUNCHES NEW BC GROWN CULTIVARS: Pure Sunfarms, a wholly owned subsidiary of Village Farms (VFF), announced Thursday the addition of four new signature dried flower strains to the brand’s growing product line-up: Area 51, Lemon Octane, Marmalade Punch and Knockout. The new signature strains will be available in whole dried flower packs and 10 pack pre-rolls.
“We know consumers are always looking for newness when it comes to dried flower that’s why we keep our strain portfolio fresh by offering new genetics that thrive in our sun-soaked greenhouse,” said CEO Mandesh Dosanjh. “Our teams are proud of these new cultivars and look forward to seeing how consumers experience the handcrafted touch we put into every pack.”
CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Atai Life Science (ATAI), Audacious (AUSAF), Avant Brands (AVTBF), Awakn Life Sciences (AWKNF), Ayr Wellness (AYRWF), Body and Mind (BMMJ), BZAM (BZAMF), Cannara Biotech (LOVFF), Chicago Atlantic (REFI), Clever Leaves (CLVR), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos Group (CRON), Columbia Care (CCHWF), Compass Pathways (CMPS), Curaleaf (CURLF), CURE Pharmaceutical (CURR), CV Sciences (CVSI), Cybin (CYBN), Delic Holdings (DELCF), Delta 9 (DLTNF), Entourage Health (ETRGF), Fire & Flower (FFLWF), Flora Growth (FLGC), General Cannabis (CANN), Greenlane (GNLN), Green Thumb (GTBIF), GrowGeneration (GRWG), Goodness Growth (GDNSF), Hemp (HEMP), HEXO (HEXO), High Tide (HITI), Indiva (NDVAF), Innovative Industrial Properties (IIPR), InterCure (INCR), IM Cannabis (IMCC), Wellbeing Digital (KONEF), Khiron Life Sciences (KHRNF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm Labs (MEDIF), MedMen (MMNFF), NewLake Capital (NLCP), Organigram (OGI), Planet 13 (PLNHF), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), Safe Harbor (SHFS), Small Pharma (DMTTF), SNDL (SNDL), Sproutly (SRUTF), Skye Biosciences (SKYE), Stem Holdings (STMH), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), Verano (VRNOF), Wesana Health (WSNAF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).
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