NEW YORK, May 7, 2020
FinancialBuzz.com News Commentary
NEW YORK, May 7, 2020 /PRNewswire/ -- Data indicates that psychedelics are gaining popularity. For example, in 2019, the Global Drug Survey collaborated with psychedelic researchers to examine the acceptability of psychedelic products and other drugs such as MDMA (ecstasy) and ketamine in the field of psychiatry. "We found high rates of acceptance especially among those with prior experience of using them, although fears based on myths and outdated science, were evident among psychedelic-naïve respondents," the survey conclusion shows. Just earlier last year the U.S. Food and Drug Administration (FDA) approved Spravato (esketamine) nasal spray, in conjunction with an oral antidepressant, for the treatment of depression in adults who have tried other antidepressant medicines but have not benefited from them (treatment-resistant depression). Now as states begin to mull the question of psilocybin's legality, this new field of potential medicinal substances may follow a comparable pathway to legalization with the cannabis medical market. Newleaf Brands Inc. (OTC: NLBIF) (CSE: NLB), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY), 22nd Century Group, Inc. (NYSE: XXII), MedMen Enterprises Inc. (OTC: MMNFF)
The growing awareness of cannabidiol, or CBD's, health benefits has pushed the market into mainstream retail. And yet, despite its growth of recent years, it is important to remember that cannabis products are still illegal in the U.S on the federal level. This regulatory hurdle is one of the last remaining obstacles that has been holding the industry back to a certain degree. "There is plenty of room for growth here," believes Confident Cannabis VP of Growth & Marketing Brad Bogus according to a report by Civilized. "CBD is sort of stuck in between prohibition era policies and federal acceptance. We just saw the first cannabis derived FDA approved medication make its way onto the market, which is a CBD medication. Where it goes from here in the world of Big Pharma is hard to say, but the direction will be up, in some velocity. Seniors are more keen to try a CBD product over a THC product, so even on the regular non-pharmaceutical market, CBD will still snag a good portion of untapped market share. International trade of source material is another big advantage of the CBD market, to help it grow."
Newleaf Brands Inc. (OTC: NLBIF) (CSE: NLB) announced breaking news today that, "it has signed a definitive agreement (the "Agreement') dated May 5, 2020 with Trellis Holdings Oregon, LLC ("Trellis") to acquire 37.5% of the issued and outstanding share capital of Trellis Holdings Oregon Op LLC ("Trellis") from David Joshua Bartch and Benjamin Martch (the "Vendors") by way of a share exchange (the "Transaction"), as previously announced on February 6th, 2020.
Trellis Holdings Oregon, LLC has been successfully operated since 2015 by a group of cannabis industry veterans and cultivates thousands of pounds of high-quality cannabis per year, including strains that exceed 30% in THC content, and has 7 figure revenues that continue to grow significantly year over year. Trellis holds various licenses with the OLCC in the state of Oregon and operates in both the medical and recreational cannabis markets, maintaining an 11-acre recreational cultivation property in Southern Oregon and operating a medical and recreational cannabis dispensary in Portland, Oregon. Trellis
'We announced the LOI to acquire a position in Trellis some time back and have been working diligently to close the transaction,' commented Joshua Bartch, CEO of NewLeaf Brands. 'This transaction is significant in a number of ways for the company. Not only does Trellis bring a wealth of assets, potential revenue and key personnel but the crossover between the cannabis space and the mycology space is immense.'
Mr. Bartch continued, 'Through Initiative #34, Oregon is poised to be the first territory on the planet to not just decriminalize, but actually legalize, psychedelic mushrooms in some capacity. Given that Trellis operates its cultivation in Sothern Oregon on an 11-acre property that is already owned, debt-free, by NewLeaf Brands, the Company has a unique opportunity to share the land and staff for a potential future mycology cultivation space and laboratory." He concluded, "With recent donations to the tune of $1,000,000 towards the Petition from prominent companies such as Dr. Bronner's Soap, the likelihood of the initiative becoming a reality is beginning to look truly promising.'
According to the campaign for the initiative, 'IP 34 gives those suffering from depression, anxiety, and anyone that would benefit, a new treatment option by creating a licensed and supervised psilocybin-assisted therapy system. Rigorous studies at leading medical research institutions such as Johns Hopkins, UCLA, and NYU show that psilocybin therapy is uniquely effective in treating depression, anxiety, and addiction. This promising research has prompted experts in Oregon to advance IP 34 for the November ballot — IP 34 will create a licensed psilocybin therapy program so Oregonians have the best therapeutic options available.'
The Company has entered into the Agreement to acquire 37.5% of the issued and outstanding share capital of Trellis, (the "Acquisition"). Pursuant to the Agreement, the Company will purchase 37.5% of the issued and outstanding share capital of Trellis in exchange for 28,000,000 common shares in the capital of the Company (the "Shares") at a deemed value of $0.106 per Share representing, in the aggregate, 33.70% of the issued and outstanding Shares on a non-diluted and partially diluted basis for an aggregate gross proceeds of $2,968,000 CAD ($2,250,000 USD). The transaction does not constitute a change of control…"
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Liberty Health Sciences Inc. (OTCQX: LHSIF) (CSE: LHS) announced last month the expansion to its award-winning brand portfolio of premium products that are available at all of its locations in Florida. Liberty launched its Liberty Health Sciences Shake brand to join its expanded and current portfolio that includes innovative cannabis products and formats, including premium flower, CBD, topicals, tinctures, extract and vape products. The Company has also recently introduced the all-new Papa's Herb classic 510 Cartridge pen to its Papa's Herb line up that has proven to be a popular new item in all of the dispensaries. In addition, Liberty has extended its popular offering of G Pen devices to include Roam, Elite, Connect, Gio, Pro, and Nova. "We are always looking for ways to enhance our product offerings and find ways to better serve our patient's needs," said Victor Mancebo, Chief Executive Officer of Liberty. "Our passion and determination is to provide accessibility of best in class products at valued prices, especially during these challenging times. We are excited to grow our offering and provide the right cannabis derived medical options at a time when people need affordable ways to maintain their wellness and continue to practice social distancing."
Auxly Cannabis Group Inc. (OTCQX: CBWTF) (TSX-V: XLY) announced recently that its wholly-owned subsidiary Dosecann LD Inc. ("Dosecann") has entered into an agreement with Medical Cannabis by Shoppers Drug Mart Inc. ("Shoppers"), a subsidiary of Shoppers Drug Mart Inc., to become a supplier of cannabis products through its online platform. The agreement will see Auxly's suite of products and brands, including chewables, chocolates, vapes and oil in a bottle, all developed and manufactured at Dosecann, available to consumers across Canada. Dosecann has completed its initial shipment of cannabis products to Shoppers. "Having our diverse cannabis product offering with Shoppers allows us to reach a wide group of patients across the country with our quality, science-backed products," said Hugo Alves, CEO of Auxly. "We are proud to partner with Shoppers and look forward to bringing their customers our products, built on Dosecann's pillars of quality, safety and efficacy."
22nd Century Group, Inc. (NYSE: XXII) announced last year, the initial closing of an investment in Panacea Life Sciences, Inc. (Panacea), a rapidly-growing, vertically-integrated, consumer-facing company operating exclusively in the legal, hemp-derived, CBD product space. 22nd Century's investments in Panacea over the next twelve to eighteen months are expected to total $24 million, in a combination of cash and 22nd Century stock in exchange for Panacea-issued debt and preferred equity. 22nd Century has also received a warrant to purchase preferred stock of Panacea, which upon full exercise will provide 22nd Century with a controlling equity position in Panacea. "After a disciplined and thorough review of the opportunities available to 22nd Century to maximize shareholder value creation, we are pleased to announce the Company's first investment in the legal, hemp/cannabis, consumer packaged goods space," said Cliff Fleet, President and Chief Executive Officer of 22nd Century Group. "This investment is a major milestone in 22nd Century's on-going execution of our hemp/cannabis strategic growth plan and offers the opportunity for strong projected shareholder returns.
MedMen Enterprises Inc. (OTCQX: MMNFF) announced last November the opening of its latest Florida location in the city of Sarasota. This is the eighth of 12 locations MedMen plans to open in Florida. The Company is licensed for up to 35 retail locations in the state. Florida is the third most populous state in the U.S. with a robust and growing medical cannabis program serving over 393,663 qualified patients as of November 1, 2019.1 Sarasota, a mid-sized city with an increasing population of approximately 57,738,is a popular tourist destination known as a gateway to miles of beaches.2 The new location aligns with MedMen's retail strategy to extend geographical reach within each operational market. MedMen Buds, the Company's new loyalty program, will be available to all patients at the Sarasota location.
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