The OMC posted the full list of dispensary permit holders on its website, which consisted of Ohio-based medical cannabis dispensary Terrasana Cannabis Co. and West Virginia-based medical cannabis dispensary Harvest Care Medical.
Terrasana applied to receive six dispensary permits at the beginning of this year and was awarded all six. The dispensary business was also granted a cultivation and processing license, said William Kedia, Terrasana Cannabis founder and CEO.
Both dispensaries are making changes and finalizing a game plan in preparation for the expansion.
“The hiring process will not start until we start construction, just because of the timeline,” Kedia said. “I don’t want people waiting on us to do the project for three to five months until it’s finalized. So, as we get to those time points in our game plan, we will hire appropriately and train everyone so everyone is on the same page and ready to go the minute we get the dispensaries, growing and processing facilities all open at the same time.”
As for Harvest Care Medical, who won ten dispensary permits, along with cultivation and processing permits, the company is in the process of locking in its properties and is working with architects, engineers and general contractors, said Chief Development Officer Dustin Freas.
Although both dispensaries are getting ready for the expansion, they are unsure when their dispensary, cultivation and processing sites will officially open.
“Our plan is to have all six built out and open later this year, but between COVID and the wintertime, getting contractors to do the build-out has been a challenge,” Kedia said. “And now you have this mass influx of construction projects in West Virginia with everyone trying to build their dispensaries and processing centers, so finding good quality contractors to complete the project in a timely fashion is going to be a challenge.”
Harvest Care Medical is facing a similar challenge.
“We’re in the middle of a pandemic, so it’s not exactly business as usual,” Freas said. “Ordering supplies and equipment that you need could be on backorder, or a construction crew could get COVID, you know?”
Freas said the dispensary must have its grow site operational within six months from the day of the award with one 90-day extension, meaning he thinks that most cultivators who want to be the first to market patient access could have plants propagated by either May or June.
Both Freas and Kedia said one of the biggest challenges would be making sure the product is available and ready for sale when dispensaries open.
“There is going to be a time lag between when cultivating facilities are constructed and when products are available,” Kedia said. “So, you plant the seed, and then by the time you actually harvest and market the products, it’s about a 10-12 week process. So, you don’t want to have the dispensary open, and then they have the expectation of having the product, and you don’t have anything on the shelves, so there’s a bit of juggling we are going to have to do to make sure this all lines up correctly.”
Additionally, one of the areas that Freas is trying to lobby and work hard on is increasing the patient count in the state, he said.
“There are currently 85 patients registered and certified for cannabis in the entire state of West Virginia right now,” Freas said. “And they’re not really letting doctors market the service, and the state’s not really putting any money behind it, but this isn’t uncommon.”
Freas said that he’s not indicating that West Virginia is dropping the ball, but it creates a back-end concern when opening ten dispensaries and the patient count is low.
However, Bill Freas, Harvest Care Medical CEO and Dustin’s father said that the cannabis commission in West Virginia has been more supportive than any other state they’ve worked with.
“They really want this to succeed,” Bill said. “They are working with the people that run the applications, and they’re very receptive, and because of that, I think it’s going to be a lot less pain to get to market.”
Aside from challenges, Freas and Kedia said they are excited to become part of the West Virginia market.
Kedia, who has been a physician for the last 20 years in Ohio, said his first-hand experience with the opioid epidemic was challenging. It initially led him to want to be part of the medical cannabis market in Ohio.
“I really felt then, and I feel even more strongly now, that cannabis and medical cannabis, specifically, is a fantastic alternative to our opioid and pain medication our patients depend on,” Kedia said. “And I do think having this alternative is better for patients and better for patients care, and most importantly, better for the quality of life. So, that’s where I get excited because I can now do what I did for patients in Ohio for patients in other states like West Virginia.”
Kedia’s number one goal with the expansion is to help people, he said.
“Yes, we need to make money to keep places open, we all have bills to pay, our company has bills to pay, but all that aside, our primary focus has to be centered around patients and their well being, and that is more important to me than anything else,” he said.
And Freas and his father, Bill, have similar expectations and goals for Harvest Care Medical and West Virginia patients.
“Our number one goal is to get quality medical cannabis medicine to the residents of West Virginia as quickly and as effectively as possible,” Bill said. “West Virginia has a lot of challenges. One of the big ones is their opioid crisis. We believe that medical cannabis can be a real help. With all the data supporting it, we’re seeing a real difference in reducing the use of opioids and transitioning people, and we’re very committed to helping people.”
Last year, we highlighted MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) as one of the most misunderstood and undervalued cannabis companies. Following a series of transformational announcements, we remain bullish on the business and believe that our readers need to be aware of how the story has advanced so far this year.
A few weeks ago, MediPharm Labs announced an important milestone and was issued a Cannabis Drug License (CDL) from Health Canada. The license is necessary for the company to manufacture and supply cannabis-based drugs. The products that are allowed with a CDL include pharmaceutical prescription drugs that have a drug identification number (DIN).
Through this achievement, MediPharm is positioned to be an essential part of the pharmaceutical industry supply chain and we consider this to be a major market opportunity for it. During the last few years, interest in pharmaceutical products that are derived from cannabis has been steadily increasing. MediPharm’s management team executed flawlessly on a strategy to be granted a CDL and we consider this to be a testament to the strength and perseverance of the management team.
Unlike many publicly traded cannabis companies, MediPharm is led by a management team that is focused on executing on previously announced growth initiatives and the granting of the CDL is a perfect example of this.
Going forward, the opportunity for MediPharm with its existing pharmaceutical customers to produce existing approved cannabis drugs or develop and manufacture new and innovative drugs through later stage clinical trials is significant and believe the market is missing out on something substantial.
Another reason we are favorable on the granting of the CDL is due to the potential for MediPharm to work with additional large and smaller pharmaceutical companies. Currently, there are thousands of active cannabis focused clinical trials taking place and we expect the CDL to serve as a substantial growth driver for the business over the long-term.
In the near-term, MediPharm is well positioned to supply cannabis based pharmaceutical drugs and active pharmaceutical ingredients (APIs) to other CDL license holders and clinical research trials for novel drug discovery. We believe the market is discounting the impact that this initiative will have on the business and find the risk-reward profile to be favorable.
During the last year, MediPharm has reported transformational developments and we expect these changes to lead to revenue growth, margin appreciation, and multiple expansion. At current levels, MediPharm is trading at a substantial discount to its peers and believe this disconnect is going to change as the management continues to execute and create value for shareholders.
If you are interested in learning more about how MediPharm Labs is positioned to capitalizing on an emerging vertical of the cannabis industry, please send an email to firstname.lastname@example.org with the subject “MediPharm Labs” to be added to our distribution list.
Pursuant to an agreement between StoneBridge Partners LLC and Medipharm Labs we have been hired for a period of 180 days beginning August 18, 2020 and ending March 18, 2021 to publicly disseminate information about (LABS) including on the Website and other media including Facebook and Twitter. We are being paid $6,000 per month (LABS) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero (0) shares of (LABS), which we purchased in the open market. We plan to sell the “ZERO” shares of (LABS) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (LABS) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
Next Frontier Brands, a leading fast-moving consumer goods (FMCG) company, today announced the submission of a Novel Foods Application to the Food Standards Agency (FSA) in the United Kingdom (U.K.). The application, which was submitted by Next Frontier Brands’ subsidiary Treehouse Biotech, is the company’s latest move to capture the growing market for hemp-derived CBD-infused foods and beverages in the U.K.
“The submission of this Novel Foods Application supports our goal of establishing Treehouse Biotech as a global supplier of cGMP-quality cannabinoid ingredients and finished products to the food, beverage and wellness industries,” said Shannon Soqui , Chief Executive Officer of Next Frontier Brands. “We have already partnered with several leading companies to develop innovative cannabinoid-based beverage and wellness products and look forward to fulfilling their needs for a U.K.-compliant supply chain.”
“The U.K. novel food regulations require that all products containing CBD extracts and isolates must be sourced from an FSA-validated supplier,” said Jake Black , Ph.D., Chief Scientific Officer of Treehouse Biotech. “After March 31, 2021 , only products for which the FSA has a validated application will be allowed to remain on the market. This positions Treehouse Biotech to become the vendor of choice for U.K. brands seeking an FSA-validated cGMP-quality supplier of high-quality CBD ingredients.”
Established in 2016, Treehouse Biotech is a leader in the research, development and production of hemp-derived cannabinoid ingredients, and purification and remediation technologies. The Treehouse Biotech team includes four Ph.D.s who are recognized leaders in cannabinoid research, development and commercial applications, three of whom specialize in organic chemistry and one of whom specializes in chemical engineering.
Treehouse Biotech has obtained cGMP (current good manufacturing practices) certifications for both food and dietary supplement manufacturing, having scored a perfect 100% on its most recent cGMP dietary supplements audit performed by Eurofins, the world leader in food and pharmaceutical testing. Treehouse Biotech holds a portfolio of patents and patent applications covering the extraction and synthesis of various cannabinoids, including US Patent No. 10,239,808 which covers the removal of tetrahydrocannabinol, or THC, from hemp extracts via chromatography.
About Next Frontier Brands Next Frontier Brands is an international fast-moving consumer goods company dedicated to bringing premier beverage and wellness products to consumers globally. We own 15 beverage and wellness brands which are distributed globally, and we are actively acquiring new brands. Our beverage brands include products in the distilled alcoholic spirits, distilled non-alcoholic spirits, wine, and coffee categories, and our wellness brands include products in the concentrate, topical and sublingual categories. We are headquartered in Boulder, Colorado , with additional offices in London, England , Amsterdam, The Netherlands , and Auckland, New Zealand .
Earlier this week, Aphria Inc. (APHA.TO) (APHA) reported a major development as it relates to the European Union’s (EU) cannabis market and believes that our readers need to be aware of the significance of the announcement as it relates to the previously announced mega-merger with Tilray Inc. (TLRY).
As standalone businesses, both Aphria and Tilray are well positioned to capitalize on the European cannabis market. Following the completion of the mega-merger, the combined company will have the most market share in the EU and in Canada’s legal medical and recreational cannabis industries.
CC Pharma is a wholly owned subsidiary of Aphria and serves as the EU distribution arm of the business. During the last year, CC Pharma has reported impressive growth and it has played a key role in Aphria’s success in the EU.
The major development that Aphria reported earlier this week is related to a commercial supply agreement that CC Pharma entered into with Materia Deutschland. Under the agreement, CC Pharma will distribute Aphria-branded flower products across Materia Deutschland’s pharmacy network in Germany. Materia is a medical cannabis and wellness company that is focused on expanding its portfolio of medical cannabis products being offered to pharmacies in the EU (especially Germany).
Under the terms of the agreement, CC Pharma will import, and batch release the products, with Materia Deutschland taking responsibility for pharmacy sales and fulfillment. By adding Aphria’s flower to Materia Deutschland’s portfolio of cannabis products, it is enhancing the types of cannabis products that are being offered to customers and increase the amount of market share that it has in Germany. In the coming weeks, Materia will start to distribute and sell Aphria-branded products to pharmacies and we are bullish on the growth prospects that are associated with the relationship.
Tilray operates a state-of-the-art EU GMP facility in Portugal and we expect the facility to serve as a major growth driver for the combined company. Once the acquisition is completed, we expect the combined company to record a massive spike in revenue that is derived from the EU’s cannabis market. Going forward, we expect the combined company to discover substantial synergies as it relates to the EU and consider this to be a crucial pillar of the long-term story.
We are excited about the transaction for a variety of reasons and want to highlight what we consider to be the most significant:
We expect the combined company to find massive synergies between the businesses
the combined company is expected to have a leading position in Canada’s recreational cannabis market
Aphria’s acquisition of Sweetwater Brewing Company provides the combined company with substantial infrastructure to capitalize on the US market
the combined company will have a leading position in strategic international markets
the transaction will further enhance the diversity and the strength of the leadership team
We are bullish on the growth prospects that are associated with the Tilray-Aphria merger agreement and believe that our readers need to be aware of the opportunity. If you are interested in learning more about the Aphria-Tilray merger, please send an email to email@example.com with the subject “Aphria-Tilray Merger” to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) announced today that, further to its press release dated January 5, 2021 , the Company has entered into a definitive agreement (the “Definitive Agreement”) with the principals of ALPS for the acquisition of 51% of the issued and outstanding shares in ALPS (the “ALPS Transaction”). The Definitive Agreement has an option permitting the Company to acquire the remaining 49%. Furthermore, the ALPS Transaction also includes the appointment of Terry Booth as AUSA’s CEO upon completion.
Accretive Transaction to Deliver Rapid Growth
Since its management buyout from Aurora Cannabis in May 2020 , ALPS has rapidly built a blue-chip roster of global customers and a growing pipeline of potential new deals. ALPS currently is executing on a number of contracts, including four that were signed and announced in the past month:
200,000 sqft small plant production facility in Finland
20,000 sqft crop research facility in northern U.S.
Tropica – facility for the cultivation of aquarium plants in Germany
McMaster University , life Science Centre, Ontario, Canada
Queen, Denmark – ornamental plants
Middle East – large fruit & vegetable facility
The ALPS Transaction, upon closing, will be immediately accretive to AUSA results, with further material growth anticipated in the coming months.
Enabling Capital-Light Strategy Execution
In addition to delivering profitable revenue growth to AUSA, the ALPS Transaction is a key enabler of the Company’s strategy to secure access to low-cost, hi-quality biomass to fuel the scale up of its brands. The ALPS Transaction, and the pending acquisition of Green Therapeutics LLC (“GT”) by the Company (the “GT Transaction”), which is progressing well towards completion, signals a pivot for AUSA from investment company to becoming a formidable, highly recognizable MSO.
The U.S. cannabis space continues to grow at a high rate and is anticipated to reach in excess of $40 billion by 2025 1 . Executing on this opportunity requires strong brands, agility, and a tight Capex and OpEx operating model that the AUSA strategy accounts for. With the change in the Senate and the White House, regulatory changes in the U.S. cannabis industry are considered by many to be inevitable. This will bode well for all participants in the industry.
While other companies use third-party cultivated inputs for the manufacturing of their products, the AUSA model, through leveraging ALPS IP with its partners, is expected to result in a strongly reduced cost of goods sold. Furthermore, ALPS’ three decades of experience in optimized facility design results in high-quality, high yield products at low operating expenses, further strengthening the AUSA brand proposition. Consequently, through its ownership of ALPS, AUSA with its strong network will look to set the standard of cannabis cultivation, processing and manufacturing globally.
With the ALPS Transaction comes the iconic, award winning west coast brand Mr. Natural, while the GT Transaction will bring further high-end award-winning brands: GT Flowers, Tsunami and Provisions. These transactions set up AUSA to expand its footprint across the U.S. and make these brands available to all consumers and patients.
1 Source: Cowen & Company, Vivien Azer and team
Rapid Growth – More to Come
ALPS has built a rapidly expanding business development pipeline and is in advanced negotiations on potential projects with a total CapEx in excess of $2.5 billion . The Company anticipates that ALPS will convert on multiple opportunities in the coming months, and management anticipates delivering accelerated, profitable growth through the ALPS Transaction.
The Company has identified a number of significant growth catalysts for the ALPS business:
Growing demand in the legal cannabis sector, including lifecycle-related demand for facility upgrades.
Longer term, the potential legalization of cannabis at the U.S. federal level is likely to create demand for massive-scale, centralized cultivation facilities, in which ALPS is the global leader.
Growing demand for high-tech facilities for more traditional crops such as soft berries and vegetables, as well as facilities for newly popular crops (e.g. algae, in which ALPS has unique expertise), creates further growth momentum and de-risks the value proposition.
Additional momentum is created by the drive for operations to become more sustainable, which includes increased demand for self-sufficiency by cities, regions and countries (‘grown by locals for locals.’ The Company is working on three such projects).
ALPS’ new compliance and data-driven service offering, APIS, is designed to create a high-margin, recurring revenue stream. Developed using over three decades of design and operational experience, APIS has been resonating strongly with operators, and interest in this new solution is strong with demand coming both from the regulated cannabis sector and more traditional horticulture market segments. The Company recently signed its first APIS contract with Cann Group in Australia , and management anticipates consistent conversion on opportunities currently in its business development pipeline.
As announced on January 5, 2021 , upon completion of the ALPS Transaction, Terry Booth , former CEO of Aurora Cannabis, will become CEO of the Company. Dr.Duke Fu , currently Interim CEO, will take on the role of COO of the Company.
“With the completion of the Definitive Agreement, we continue to execute at a rapid pace,” stated Dr. Duke Fu , Interim CEO of AUSA. “We are focused on building significant shareholder value, which is reflected in the transaction terms that are EBITDA weighted and back-end loaded through the earn-out provisions.”
Terry Booth , who will become CEO of AUSA upon completion of the ALPS Transaction, added, “The ALPS Transaction and the GT acquisition are the first steps in combining forces to build a strong and very hard to imitate MSO in the U.S. cannabis space. The opportunity for the cannabis industry has never been greater. Political changes towards acceptance of cannabis in the U.S. will, we believe, drive major regulatory changes in short order. We anticipate that this will result in an exponentially greater opportunity for all cannabis companies in the U.S., and especially for those that are well differentiated, such as AUSA. We strongly believe that with our assets, team, experience and vision, we have what it takes to build the next generation of MSO, delivering substantial growth with a strong focus on high-quality, resulting in superior brands and an enhanced bottom line. The ALPS standard in cultivation and compliance will continue to set the industry benchmark globally, and will be reflected across all of AUSA’s operations.”
Board member Avi Geller and Chairperson of AUSA’s Compensation and Nominating committee, stated, “We are very pleased with the rapid progress made at AUSA with the new leadership team taking over. The Company is in the late-stage completion of two significant and accretive transactions that will set the stage for success in the U.S. cannabis market. Our Compensation and Nominating committee is focused on attracting the very best talent in every vertical that we intend entering into, be it cannabis or traditional crops, and we have made significant appointments. We are engaged in multiple negotiations that are progressing well, and have significantly stepped up our efforts to engage with shareholders and other stakeholders. We are proud of the progress made and look forward to reporting on our rapid development as management continues to execute.”
Management anticipates completion of the ALPS Transaction within the next 7 days, subject to satisfaction of customary closing conditions, with the ALPS results to be consolidated in the AUSA accounts from the closing date going forward.
ALPS Transaction details
Under the terms of the Definitive Agreement, AUSA will pay to the ALPS principals between $13.7 million to a maximum of $25.94 million in total consideration for a 51% interest in ALPS and the option, exercisable by the Company at any time for three years after closing of the ALPS Transaction (“Closing”), to acquire the additional 49% interest in ALPS for additional consideration. The consideration will be paid based on various milestones and adjustments as set out below.
Initial Consideration (i) $10,000,000 paid through either the issuance of common shares of AUSA (“AUSA Shares”) valued at a deemed price of $0.20 per AUSA Share, or in cash, or a mixture of both at the election of AUSA on Closing; (ii) $2,000,000 paid in cash on Closing; and (iii) a $1,700,000 indemnity holdback (the “Indemnity Holdback”), payable eighteen 18 months after Closing, adjusted for any indemnity claim made by AUSA pursuant to the terms of the Definitive Agreement. The Indemnity Holdback payment, if any, may be paid, at the election of AUSA in cash or AUSA Shares at a deemed price per AUSA Share equal to the greater of (i) the 10-day volume weighted average price calculated from the payment date and (ii) $0.14625 .
Pursuant to the Definitive Agreement, AUSA is also responsible to pay to the ALPS principals the following milestone-based payments:
The maximum milestone payments (the “Milestone Payments”) that will payable, assuming full satisfaction of all milestones and the exercise of the option will be $24 million , payable in six installments, commencing no earlier than September 30, 2022 ;
Each Milestone Payment will be calculated against revenue (3 payments) and EBITDA (3 payments) targets, related to 12 consecutive month periods between July 1, 2021 and as late as December 31, 2025 . The actual Milestone Payments are capped at $8 million per 12-month period (up to $24 million in total), contingent on actual performance.
The maximum Milestone Payments of $24 million are payable upon ALPS achieving cumulative revenues of $108.7 million with cumulative EBITDA of $48.9 million . The first calculation period commences on July 1, 2021 and such period will end, at the option of the ALPS principals subject to ALPS achieving certain revenue and EBITDA milestones, on June 30, 2022 or September 30, 2022 and in any event no later thanDecember 31 , 2022. The second calculation period commences on the day following the last day of the first calculation period and may end, at the option of the ALPS principals subject to ALPS achieving certain revenue and EBITDA milestones, on the 12 month or 15 month, and in any event no later than the 18 month anniversary, of the commencement of the second calculation period. The third calculation period commences on the day following the last day of the second calculation period and will end, at the option of the ALPS principals subject to ALPS achieving certain revenue and EBITDA milestones, on the 12 month or 15 month, and in any event no later than the 18 month anniversary, of the commencement of the third calculation period.
If a Milestone Payment becomes payable by AUSA prior to AUSA’s exercise of the option (the “ALPS Purchase Option”) to acquire the remaining 49% interest in ALPS, such payment will be 51% of the applicable Milestone Payment. The number of AUSA Shares to be issued by AUSA in connection with the payment of the Milestone Payment or the payment for the exercise of the ALPS Purchase Option will be calculated by dividing the amount payable by an amount equal to the greater of (a) the volume-weighted average trading price of the AUSA Shares on the Canadian Securities Exchange (the “CSE”) for the ten trading days immediately prior to the applicable payment date and (b) $0.14625 .
The Definitive Agreement contains a provision that if an any transaction (or one or more related transactions) pursuant to which any person (other than the ALPS principals or those acting jointly and in concert with them) is or becomes the beneficial owner, directly or indirectly, of securities AUSA representing fifty percent or more of the total voting power represented by AUSA’s outstanding voting securities, without the approval of the board of directors of AUSA, then AUSA shall exercise the option to acquire the remaining 49% of the shares of ALPS (if not already exercised) and pay the remaining Milestone Payments for periods not then expired and the Indemnity Holdback (if not already repaid).
Additional details with respect to the ALPS Purchase Option are as set forth in the January 5, 2021 press release. A copy of the Definitive Agreement will be filed under the Company’s profile on SEDAR.
ALPS, formerly Aurora Larssen Projects, is a global leader in facility design, construction management and (post) commissioning services to the horticultural sector across a wide variety of commercial crops. Going back over 30 years, ALPS has built a stellar reputation as the leading innovator for greenhouse, indoor and outdoor facility design, with over 100 million square feet of projects under its belt. The Company’s approach centers on vendor agnostic designs geared towards optimizing economic returns under all possible market and environmental conditions.
In the past seven years, ALPS has established itself as a leader in the cannabis space, having been involved in over 50 projects globally, including the highly automated, low-cost, high-quality, 800,000+ sq. ft, flagship facility Aurora Sky. ‘Designed by ALPS’ has become a badge synonymous with quality and a high return on investment.
ALPS’ leadership in the industry is due to a number of strongly differentiating factors:
Technology choice: Most of ALPS’ competitors are builders providing their own products. ALPS, on the other hand, is vendor agnostic and will always design what is the optimal solution for its clients. This ensures ALPS is able, if needed, to always incorporate the newest innovations into its designs without having the overhang of legacy systems. This approach resonates strongly with growers who fully understand the intrinsic value of technology choice.
Optimized localized solutions: ALPS pre-project services identify the optimal solutions based on local climate, power availability, utility, costs, labor availability, desired output and quality. These findings support the long-term value of the facility, ensuring costs align with expected margins.
Economic optimization based on real life experience: Having been involved post commissioning in the operation of many facilities, ALPS understands the challenges growers will face once facilities are up and running, and adapts its solutions accordingly.
Enhanced economic returns through post-commissioning service offering: ALPS’ deep operational experience has resulted in the development of a unique suite of post commissioning service offerings. These offerings enable growers to reduce operating costs, maintenance and related CapEx, while extending a facility’s economic lifespan. This further reduces economic and operational risks, setting ALPS apart from its ‘design and construction only’ peers.
Intellectual Property: ALPS is a master of Controlled Environment Agriculture, an ability enhanced by its deep experience in developing high-quality, high throughput facilities, including those that must adhere to GACP/GMP regulations, as well as proprietary product offerings. For instance, ALPS has developed unique IP around climate delivery, which results in cost savings as well as higher product quality and yields with reduced disease risk.
Scale: the scale of the ALPS organization provides competitive advantages through the accumulation of in-house talent across a wide range of specializations which is difficult to emulate.
Partnerships: ALPS is the partner of choice for many vendors who are willing to co-develop proprietary solutions available only to ALPS customers. Furthermore, the assurance ALPS provides to vendors as a representative of both client and vendor ensures both parties align from the start of a project, reducing surprises and cost overruns during the life of the project. As a consequence, ALPS can negotiate cost-savings for the client that would otherwise be unavailable if the client went to a vendor directly.
Brand: The quality of design, project management, commissioning, project handover, and post-commissioning services mean that ALPS’ customer satisfaction is exceptionally high, delivering significant brand equity, as well as strengthening vendors’ willingness to partner with ALPS. The “ALPS Standard” also provides considerable brand equity towards consumers of the end products, strengthening a client’s market position.
Compliance: APIS, the Company’s new compliance and data driven service offering, enables growers to de-risk compliance and regulatory based concerns. APIS is a powerful tool designed to integrate multiple systems into a single source of data and information. It provides secure dashboards, track-and-trace functionality, as well as quick access to retrievable data useful for production personnel, facility owners, auditors, and data analysis. However, APIS is not just for regulated markets like cannabis; it also provides operational insight and controls for traditional vegetable and non-vegetable crops. This is called Industrialized Greenhouse Management.
Quality of design, execution and innovation have enabled ALPS to grow rapidly, and the company currently serves customers across the globe.
AUSA is implementing a growth strategy towards establishing a highly competitive and profitable MSO in the U.S. and global cannabis markets. AUSA is closing a transaction for 51% ownership of ALPS, the world’s premier design, construction management, commissioning and post commissioning consultancy for horticultural crops, such as cannabis, fruits, vegetables, mushrooms and algae. The Company also holds an option for the acquisition of the remaining 49% of ALPS. AUSA is currently working towards the closing of a transaction whereby it will acquire 100% of the membership interest in Green Therapeutics LLC, an award-winning MSO with operations in Nevada , Missouri and Oklahoma . Through GT and ALPS, the Company believes it will be able to secure low-cost access to cannabis biomass to fuel the scale up of its award-winning brands across the U.S. and global cannabis markets. AUSA’s other business and assets include investments in ALPS, Cocoon, Body and Mind Inc., Quality Green, Folium Biosciences, and land assets in Washington and Michigan .
The Company’s common shares trade on the CSE under the symbol “AUSA” and on the OTCQB under the symbol “AUSAF”.
For further information about AUSA, please contact:
This press release contains “forward-looking information” within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein is forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. In particular, this press release contains forward-looking information in relation to: the timing and ability to close the proposed transactions with GT and ALPS; the anticipated development of the GT and ALPS businesses; the ability of the Company to execute on its strategy to establish a low capex model MSO; the impact of the changes to U.S. federal and state developments with respect to the cannabis industry and the opportunities this may present for the Company. This forward-looking information reflects the Company’s current beliefs and is based on information currently available to the Company and on assumptions the Company believes are reasonable. These assumptions include, but are not limited to: the ability of the Company to successfully satisfy the conditions to closing the ALPS and GT transactions; the ability of management of ALPS, GT and the Company to successfully execute on their respective business plans; legal changes relating to the cannabis industry proceeding as anticipated; and the Company’s continued response and ability to navigate the COVID-19 pandemic being consistent with, or better than, its ability and response to date.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; the actual results of the Company’s future operations; competition; changes in legislation affecting the Company; the timing and availability of external financing on acceptable terms; lack of qualified, skilled labour or loss of key individuals; risks related to the COVID-19 pandemic.
EBITDA is a Non-IFRS measure. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) should not be construed as alternatives to net income/loss determined in accordance with IFRS. EBITDA does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company believes that EBITDA is a meaningful financial metric as it measures cash generated from operations, which the Company can use to fund working capital requirements and fund future growth initiatives.
A description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company’s disclosure documents on the SEDAR website at www.sedar.com . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Readers are cautioned that the foregoing list of factors is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking information contained in this press release is expressly qualified by this cautionary statement. The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, are subject to change after such date. However, the Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accept responsibility for the adequacy or accuracy of this release.
Neptune Wellness Solutions, Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on natural, plant-based, sustainable and purpose-driven lifestyle brands, announced today that their cannabis brand Mood Ring™ is now available through the Ontario Cannabis Store (OCS), the wholesaler and online retailer of non-medical cannabis throughout the province.
The initial portfolio consists of non-GMO and environmentally friendly packaged products: High CBD Oil, Legacy Hashish, and High CBD Capsules. Mood Ring™ High CBD Oil and High CBD Capsules benefit from a patented cold ethanol extraction process, which creates a full spectrum concentrate that preserves terpenes to retain its earthy aroma and flavour. Aligned with Neptune’s commitment to sustainability, the methodology requires significantly less energy than CO2 extraction, empowering Neptune to minimize its carbon footprint.
“This is an exciting next step for Mood Ring™. The initial launch was a great success and we’re ecstatic to bring the range of cannabis extracts to Ontario . At Neptune we recognize the immense potential of cannabinoids and have put our decades of experience in health and wellness to develop responsibly crafted products. We want to enable Canadians nationwide to benefit from legalization in innovative ways and our partnerships with provincial wholesalers supports this accessibility,” said Michael Cammarata , Chief Executive Officer and President of Neptune.
The brand’s Legacy Hashish is produced from the trichomes of carefully curated cannabis strains to reveal the crop’s complex cannabinoid and terpene profiles. Resin glands are separated in water, without solvents, and are then pressed to form a firm, sticky block of old-world style hashish.
Neptune’s Mood Ring™ products are available now to over 400 licensed retailers through the OCS, which also supplies consumers inOntario directly. All cannabis-extracts are manufactured at the Company’s purpose-built facility in Sherbrooke , Quebec.
Dr. Toni Rinow , Neptune’s Chief Financial Officer and Global Operating Officer, added: “We are driven to create products that support our customers’ ever changing needs. Our goal is to be innovative and to harness the super ingredients that are cannabinoids.”
Neptune Wellness Solutions is a unique global health and wellness company that is changing consumer habits through the creation and distribution of environmentally friendly, ethical and innovative consumer product goods. Neptune’s simultaneous focus on B2C and B2B customer-oriented brand development provides the Company with international reach and scale from its owned and operated facilities that extract and create product formulation, all the way to the sales floor at top global retailers. Underpinned by a disruptive spirit, Neptune’s diversified, and fully integrated business model focuses on natural, plant-based, sustainable and purpose-driven lifestyle brands and the use of cannabinoids in household products to make them safer, healthier and more effective. Its portfolio includes emerging brands such as Forest Remedies™, Ocean Remedies™, Neptune Wellness™, Mood Ring™, and OCEANO3™, which are poised for rapid growth and expansion. Backed with a cost-efficient manufacturing and supply chain infrastructure that can be scaled up and down or into adjacent product categories to identify new innovation opportunities, Neptune quickly adapts to consumer preferences and demand, and is bringing its products as well as other Fortune 100 brands to market through strategic distribution partnerships, mass retail partners and e-commerce channels. Neptune is committed to its core mission of redefining health and wellness and helping humanity thrive by providing sustainable consumer focused solutions. For additional information, please visit: https://www.neptunecorp.com/
FORWARD LOOKING STATEMENTS:
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of the U.S. securities laws and Canadian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Neptune to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labelled with the terms “believes”, “belief”, “expects”, “intends”, “projects”, “anticipates”, “will”, “should” or “plans” to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement and the “Cautionary Note Regarding Forward-Looking Information” section contained in Neptune’s latest Annual Information Form (the “AIF”), which also forms part of Neptune’s latest annual report on Form 40-F, and which is available on SEDAR at www.sedar.com , on EDGAR at www.sec.gov/edgar.shtml and on the investor section of Neptune’s website at www.neptunecorp.com . All forward-looking statements in this press release are made as of the date of this press release. Neptune does not undertake to update any such forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in Neptune public securities filings with the Securities and Exchange Commission and the Canadian securities commissions. Additional information about these assumptions and risks and uncertainties is contained in the AIF under “Risk Factors”. Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release.
Toronto, Ontario–(Newsfile Corp. – February 19, 2021) – Mindset Pharma Inc. (CSE: MSET) (FSE: 9DF) (“Mindset” or the “Company”), a drug discovery and development company focused on developing next generation psilocybin-inspired medicines and related technologies, is pleased to announce that effective today, it has been added to the North American Psychedelics Index which is provided by German-based index provider, Solactive (the “Index”).
The Index is designed to provide a measure of the performance of North American publicly listed life sciences companies focused on psychedelic medicines, and other companies with business activities in the psychedelics industry. The Index is passive, weighing constituent companies according to their market cap, with a number of conditions that prevent the Index becoming dominated by big pharma, and by psychedelics companies with the largest market cap. Additionally, certain index funds, including the Horizons Psychedelic Stock Index ETF, utilize the Index as a benchmark.
A bill to legalize marijuana in Minnesota was approved by a House committee on Wednesday—the first of up to a dozen panels that are expected to take up the reform legislation in the weeks to come in advance of a floor vote.
House Majority Leader Ryan Winkler (D), Speaker Melissa Hortman (D) and other lawmakers filed the measure earlier this month. It would allow adults 21 and older to purchase and possess up to 1.5 ounces of cannabis and cultivate up to eight plants, four of which could be mature.
The House Commerce Finance and Policy Committee passed the bill in a 10-7 vote.