Cannabis Monthly Q&A + Industry Trends Call
Call Details:
|
On Thursday, we will be hosting our monthly Q&A plus industry trends call to highlight how pricing and traffic drive sales across North America's adult-use and medical cannabis market. During our call, we will highlight the entire U.S. and Canadian cannabis markets and be taking questions about the industry and our position monitor.
Canopy In U.S.
CGC is pushing the envelope to own Acreage, a mediocre asset in the US. At the end of the day, nothing has changed. In a taped video recording, CGC CEO David Klein said that he expects to see all of its US investments operating under one umbrella one day, including TRSSF.
Canopy Growth (CGC) announced this morning a strategy to accelerate its entry into the U.S. cannabis industry by creating a new U.S.-domiciled holding company, Canopy USA, which will exercise rights to acquire three other companies, pushing its shares 3% in U.S. pre-market trading. Canopy said it will acquire 70% of Acreage Holdings at a fixed share exchange ratio of 0.3048 of a common share of the company as well as an option to buy the remaining approximately 30% on a floating basis in order to own 100% of Acreage. Canopy will have the option to acquire 100% of the membership interests of Mountain High, Wana Wellness, and The Cima Group. It will also have the option to acquire 100% of the shares of Lemurian, a California-based producer of cannabis extracts and pioneer of clean vape technology that operates as Jetty. In addition, Canopy USA controls a conditional ownership position, assuming conversion of its exchangeable shares and the exercise of its option but excluding the exercise of its warrants, of approximately 13.7% in TerrAscend, a North American cannabis operator. "As the growth of the U.S. cannabis market continues rapidly at the state level, this strategy enables us to take control of our own destiny and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world," said David Klein, CEO of Canopy Growth.
Cronos Settles with SEC.
This is OLD News - Cronos Group (CRON) is a Hedgeye Cannabis Best Idea Long.
Cronos Group reportedly agreed with the SEC and the OSC to resolve their investigations over Cronos' restatements of its financial statements for the first three quarters of 2019 and the second quarter of 2021. The company has agreed to settle without admitting or denying the allegations described in the SEC Settlement Order. Cronos agreed to certain undertakings, including retaining a qualified independent consultant to review and make recommendations concerning some of its internal accounting controls and internal control over financing reporting. Regarding the OSC settlement, Cronos agreed to pay C$1.34 million to fully settle the matter and acknowledged that it had not complied with certain requirements under the Securities Act (Ontario). The company also agreed to retain the consultant on substantially the same terms as were required by the SEC pursuant to the SEC Settlement Order. "We are pleased to have resolved these matters," said Mike Gorenstein (CEO of Cronos) "Important steps have been taken to strengthen our internal controls, and we are committed to continuing this work."
