It’s time for your Daily Hit of cannabis financial news for July 8, 2019.
On The Site
CannTrust Holdings Inc. (TSX: TRST)(NYSE: CTST) stock has fallen almost 20% after the company announced that a Health Canada audit found that the company was growing cannabis in five unlicensed rooms and inaccurate information was provided to the regulator by CannTrust employees. While the company’s name says trust, it seems Health Canada couldn’t trust the company to wait until the grow rooms were licensed before beginning work.
CannTrust said it has accepted Health Canada’s non-compliance finding and has taken actions to ensure current and future compliance. The company stated that the growing in the unlicensed rooms took place from October 2018 to March 2019 during which time CannTrust had pending applications for these rooms with Health Canada. These rooms were constructed in accordance with regulations and Good Production Practices, and licenses were issued for each of the five rooms in April 2019. There are 12 rooms in total at the facility.
SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) completed a $50 million private placement financing by issuing and selling a senior secured non-convertible debenture to an arm’s length institutional investor. In addition to the deal, the company announced that its President Jonathan Gilbert was resigning as the President of the wholly-owned subsidiary, Impact Biosciences Inc. (formerly Scythian Biosciences Inc.).
SOL Global is losing its President at a time when the company is facing distractions from its Chairman Andy Defrancesco. The Chairman was the subject of an investigative piece by Teri Buhl that questioned whether DeFrancesco adequately disclosed the nature of a transaction and whether it involved related parties. DeFrancesco then sent a derogatory text, which Buhl made public.
In Other News
C21 Investments Inc. (CSE: CXII and OTC: CXXIF) has reached agreement to restructure payments under a US$30 million promissory note, with interest at 10%, issued on January 15, 2019 to Mr. Sonny Newman in connection with the company’s purchase of Silver State Relief LLC and Silver State Cultivation LLC. It also announced that Sonny Newman is succeeding Robert Cheney as President and Chief Executive Officer of C21 Investments effective immediately.
The Note, issued to Mr. Newman as part of the Silver State purchase terms, is secured against the Silver State companies and their assets and had an outstanding principal balance of US$27 million on June 30, 2019. Mr. Newman has agreed in lieu of the principal installment of US$6.0 million due July 1 to accept such amount in an installment of US$2 million plus interest, which has been paid, and further monthly installments of $800,000 per month plus interest commencing on August 1, 2019, and continuing for the next ensuing four months when the monthly installments increase to US$2 million
Jushi Holdings Inc. (NEO: JUSH.B) announced that it has signed definitive agreements to acquire the majority of the membership interests in Dalitso LLC. Dalitso is currently one of only five applicants to receive conditional approval for a permit issued by the Virginia Board of Pharmacy to cultivate and process medical cannabis, and to dispense and deliver CBD oil and THC-A oil extracts in Virginia. Dalitso’s conditional approval is for the northeast region of Virginia, and the company is developing a facility in Prince William County near the City of Manassas.
The aggregate purchase price for approximately 62% of the membership interests in Dalitso, is approximately US$16 million.
Valens GroWorks Corp. (CSE: VGW) (OTC: VGWCF) announced that further to its press release dated June 17, 2019, the Company has been accepted for listing on the TSX Venture Exchange as a Tier 1 issuer, and its common shares will commence trading on July 10, 2019, on the TSXV under the symbol “VGW” and the warrants will trade under the symbol “VGW.WT.A” on the same day.
KushCo Holdings, Inc. (OTCQX: KSHB) filed an application to list the Company’s common shares on the NASDAQ Global Select Market. The listing of the company’s common shares on the NASDAQ remains subject to the approval of the NASDAQ and the satisfaction of all applicable listing and regulatory requirements. In the interim, the company will continue to trade on the OTC Markets under the current symbol “KSHB.”
TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend” or the “Company”) today announced that its subsidiary, TerrAscend Canada, has received an amendment to its license from Health Canada to allow it to sell cannabis oils from its EU-GMP certified facility in Mississauga, Ontario. Sales of TerrAscend’s cannabis oils will begin immediately through its medical marketplace, Solace Health, and to the Canadian adult use market in the coming weeks.
Written by Staff
Green Market Report