Hexo Corp (NYSE:HEXO) signed a deal to acquire Zenabis Global Inc (OTCMKTS:ZBISF) for $235 million. It is an all-stock deal as per the court-approved plan under the BC business corporations act. As per the pact, Zenabis investors will receive 0.01772 common share of Hexo for each of their shares.
The board of directors approves amalgamation
The board of directors of both Zenabis and Hexo approved the transaction on receiving the shareholders’ nod. Following the transaction, Hexo will get immediate access to the medical cannabis market in Europe through a local partner of Zenabis.
Zenabis’s local partner supplies pharmaceutical products in Europe using its established facility. The products manufactured at Atholville Facility of Zenabis can be packaged and distributed through this facility.
The combined entity will realize synergies of $20 million in a year of concluding the deal through economies in the manufacture and utilizing the additional capacity of Hexo’s Belleville Centre of Excellence.
Hexo will gain access to licensed manufacturing capacity to produce 111,200 kg premium quality cannabis per annum. The company will also acquire 2.735 million sq. Ft. cultivation space for diversified production and growing needs.
CEO of Hexo, Sebastien St-Louis, said the company is excited to welcome the team of Zenabis into its family. Zenabis can use its established relationships to share the vision of Hexo in introducing a premium quality cannabis experience to adults in the overseas and domestic markets.
The deal is beneficial to the shareholders of Hexo. It also supports the growth of Hexo in the global and domestic markets utilizing additional licensed capacity. CEO of Zenabis, Shai Altman, said the brands and strains of the combined entity will gain strength in Canada. Its sophisticated high quality, and economical cultivation facilities, along with its global presence, complement the business of Hexo. The transaction improves flexibility and financial position to satisfy the growing international and domestic demand.
Charles Bowman heads US operations
Hexo recruited Charles Bowman as General Manager (US Operations). Charles will contribute his extensive experience in operations and commercial growth and improves its presence in the US.
Hexo inducted Rose Marie Gage to the director board. Chair of the Director Board at Hexo, Michael Munzar, said Rose will contribute experience gained in large multinational companies to expand its US operations and boost market share in Canada.
Tinley Beverage Company Inc (OTCMKTS:TNYBF) Ships First Batch Of Third Party Products From Its Long Beach, California Based Facility
Tinley Beverage Company Inc (OTCMKTS:TNYBF) shipped its first batch of third-party products manufactured at its Long Beach, California-based facility. Also, a leading cannabis and cannabidiol beverage brand – Good Stuff Beverage Co will move its natural tonics production to Tinley’s facility.
Good Stuff’s classic flavors comprise a new and terpene-infused formula. It will demonstrate the launch of high dose and strain-specific tonic.
Its product line comprises the Original Honey Lemonade, Sativa Energy, and Indica Calm. Consumers can use a resealable bottle cap to take an exact dose and sip easily.
President (West Coast USA) of Tinley, Rick Gillis, said any company usually faces challenges in manufacturing fruit-infused drinks while ensuring shelf stability and quality. Its team of food process and quality experts and specialized production equipment will play a vital role in delivering the required stability and consistency for this fruit-derived brand.
The cannabis community in California has well-accepted the products of Good Stuff. Therefore, they will love to receive enhanced formula-based products from Good Stuff.
Co-founder of Good Stuff, Daniel Grim, said Good Stuff Beverages is an excellent Tinley value proposition. The custom-built equipment and talented team of Tinley will help Good Stuff in its scalability.
Distribution boost through retail in Alberta
Tinley said its product distribution continues to improve through enhanced retail stores in Alberta. It also receives requests from provincial buyers for cannabis products.
According to a communiqué from local agents, the company received commitments or listings for its ready-to-drink cocktails and Beckett’s non-alcoholic spirits at 30 retailers across Alberta. The company is excited to receive reorders within one week of the initial listings.
Tinley raised a capital of $850,000 through a non-brokered private placement of 2.125 million units at $0.40.
Manufactures zero-calorie sparkling drinks
Tinley is pleased to announce that its Long Beach facility will manufacture Calexo’s four preservative-free juice beverages and zero-calorie sparkling drinks.
Innovative cannabis blended sparkling waters, which are branded as Watercolors, will be blended with 5mg THC and natural botanicals in a 12oz bottle. It is developed for those looking to replace alcohol.
Pao Group Inc. (OTCMKTS:PAOG) Expanding Its Neutraceutical Revenue Streams
Pao Group Inc. (OTCMKTS:PAOG) has announced that it expects revenue expansion this year from CBD neutraceuticals. The company published an online and multimedia presentation showing its CBD nutraceutical development expansion plans. Most importantly, the presentation includes its strategy engagements with Puration Inc. (OTCMKTS:PURA), Alkme Holdings Inc. (OTCMKTS:ALKM), and North American Cannabis Holdings Inc. (OTCMKTS:USMJ).
Pao Group acquired RespRx in 2020
Last year, the company completed the acquisition of RespRx, a cannabis medication currently under development for the treatment of Chronic Obstructive Pulmonary Disorder derived through a patented marijuana extraction method. According to WHO, around 65 million globally have moderate to severe COPD, with around three million deaths reported each year. COPD treatment market is estimated to be around $5 billion in the US and $11 billion globally.
Notably, GW Pharmaceuticals has set the base for cannabis treatment and recently was valued at $7.2 billion. The patented extraction method inventor Frederic Ferri said that doctors researching their feedback have given feedback regarding the feedback’s superiority compared to those of GW Pharmaceuticals.
Pao Group recently entered an engagement with Veristat Inc. to assist in advancing its novel CBD extract for COPD treatment towards an IND with the US FDA. The company recognizes and acknowledges that pharmaceutical development will be a capital intensive and long-term undertaking. As a result, Pao Group is pursuing complementary business initiatives that can generate revenue in the near term and contribute to funding the RespRx development in the long term.
Pao Group expanding nutraceutical development
Besides efforts to develop COPD treatment, the company also announced that it has engaged Puerto Rico Consortium for Clinical Investigation to help it develop novel CBD extract into nutraceutical products for the care of individuals experiencing issues related to COPD. Pao Group management is confident that CBD extraction knowledge base and experience can help pursue the development of more neutraceuticals.
As a result, doing so will expand the company’s overall near-term revenue potential. The company expects revenue this year from neutraceuticals following the recent sales agreement with Puration. The company expects revenue of $50,000 each quarter.
Body and Mind Inc (OTCMKTS:BMMJ) Posts A Growth Of 300% YoY In Revenues In Q2 2021
Body and Mind Inc (OTCMKTS:BMMJ) reported a stellar growth of 300% YoY to $6.31 million in Q2 2021. Its profits also surged by a whopping 400% to $2.74 million.
Body and Mind’s subsidiary took full ownership of ShowGrow Long Beach dispensary in California on August 28, 2020, to consolidate revenues. ShowGrow allows purchase online besides offering curbside pickup.
In California, ShowGrow San Diego dispensary offers curbside pickup service besides delivery service and online ordering options.
The sale of Body and Mind branded products is commenced through all dispensaries across Nevada and Las Vegas. Following the receipt of approval for expanding the cultivation canopy, the company completed the cultivation space expansion. The company expects to improve the output by 20% from its new flowering rooms.
The company is pleased to receive a license from Nevada State. It will introduce a female-focused brand in alliance with its brand partner – Her Highness, in the market of Las Vegas.
Body and Mind’s ancillary took over the Clubhouse dispensary’s full stake in Ohio to consolidate revenues with effect from September 4, 2020. It renamed the dispensary as Body and Mind in September 2020. The company expects to complete the construction of the NMG manufacturing facility in Ohio in April 2021.
Body and Mind received the best dispensary award in Arkansas. The company commenced online ordering and delivery services in Arkansas.
CEO of Body and Mind, Michael Mills, said the company reported robust results and maintains a healthy balance sheet in Q2 2021. Michael further said the customers well accept its curbside pickup and delivery services for cannabis products.
Expects to improve revenues in 2021
Body and Mind’s team is working with state and local inspectors to receive final permits for its cultivation facility in Arkansas. It is also finalizing the construction of a manufacturing facility in Ohio. Both of these facilities expect to improve the revenues of Body and Mind in 2021.
Comprehensive Care Group, LLC and Body and Mind began cultivation operations at West Memphis on April 6, 2021, close to the Tennessee border.
Arkansas holds a total of 32 dispensaries. It expects to operate additional six dispensaries soon.