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High Tide Inc (OTCMKTS:HITIF) Post Robust Revenues Of $31,294 In 2019: Expanded Retail Footprint And Operations In Saskatchewan, Ontario, And Alberta

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High Tide Inc (OTCMKTS:HITIF) reported robust revenues of $31,294 in 2019. It is an increase of 258% when compared to the previous year. The company has realized improved revenues from the sale of smoking accessories and recreational cannabis products primarily from Canna Cabana operations. It has enjoyed a loyal customer base and provided access to its consumer-focused retail experience for the new customers to record more than 857,000 transactions in Canna Cabana locations last year.

Expands retail footprint

Chief Executive Officer and President of High Tide, Raj Grover said 2019 is a busy year for the company. High Tide has executed its growth plans successfully. The company has expanded its retail presence and scaled up its operations in Saskatchewan, Ontario, and Alberta through significant investments in 2019. High Tide has inaugurated twenty-six retail cannabis stores that helped to post a robust increase in revenue of 258%.

Expects to post profits

High Tide is one of the top-tier retail-focused cannabis firms in Canada. The company expects to post significant profits in Q1 2020 on the backdrop of expansions and significant developments in 2019.

Developments in 2020

High Tide has secured a non-revolving $10,000 credit facility from Windsor Capital. The company expects to use these funds for establishing retail cannabis stores in Ontario and Alberta and for further acquisitions. It will also use part of these funds for working capital needs.

High Tide agreed to divest non-core assets of KushBar to Halo Labs in a share deal worth $12,000. The company started realizing subscription-based revenues from its recently introduced Cabanalytics, a proprietary data analytics service. High Tide can measure consumer purchase behavior and get an insight into emerging consumer trends using Cabanalytics. The company expects to derive higher margins by selling privacy protected information to licensed manufactures of cannabis.

High Tide acquired an interest in Sudbury and Hamilton based Canna Caba retail cannabis stores. The gross sales of these stores have exceeded $7,000 and $15,000 respectively, since inauguration in April 2019.

Acquires a retail cannabis store

High Tide has acquired a retail cannabis store in Tisdale, Saskatchewan, in a deal valued at $200,000. The company will also issue a promissory note for $500,000.

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Hexo Corp (NYSE:HEXO) Enters A Definitive Agreement To Takeover Zenabis Global Inc (OTCMKTS:ZBISF) For $235 Million

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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.

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Innovative Industrial Properties Inc (NYSE:IIPR) Will Construct Additional Two Buildings On 3.5 Acres Of Land By Expanding Its Long-Time Association With Kings Garden Inc

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Innovative Industrial Properties Inc (NYSE:IIPR) acquired 3.5 acres of land in Southern California close to its properties leased to KGI (Kings Garden Inc) for $1.4 million. In alliance with KGI, the company will construct two buildings on this land with an industrial space of 180,000 sq. Ft.

KGI receives payment of $51.4 million

Following the completion of two new buildings, KGI will operate for licensed cannabis cultivation. KGI will receive $51.4 million from Innovative Industrial to engage in the development of these new buildings. The company received six properties that account for an industrial space of 544,000 sq. Ft. on lease from Innovative Industrial, which commits a total of $147.7 million towards the purchase, development, and redevelopment, and tenant improvements.

The CEO of Innovative Industrial, Paul Smithers, said the company is pleased to partner with a true innovator in the cannabis market – KGI and expand its presence and capacity in California. KGI has a talented team, which gained expertise in processing and growing cannabis and the start of the manufacturing facilities. Paul said the prospects of KGI are bright, and the company is proud to support its growth strategies.

Innovative Industrial engages in supporting experienced medical partners. It acquires the properties and leases back to the partners besides providing funding support. CEO of KGI, Michael King, said the company gives value to the long-term relationship it established with leading industrial partners at Innovative Industrial over a while.

Michael said the company will receive a total of $76 million towards construction from Innovative Industrial for this deal, and the deal concluded in November 2020. This initiative will ensure indoor operations on 665,000 Sq. Ft. and earn revenues of more than $300 million in the year 2023.  As a result, the annual production of cannabis products at KGI will reach 140,000 pounds. KGI will gain market share in the regulated worldwide cannabis market.

The regulated cannabis sales in the Californian market are reported at $5.6 billion in 2020. In 2025, the sales of regulated cannabis in the US will reach $41.5 billion, and California will command a market share of 20% ($8.2 billion).

COO of KGI, Charlie Kieley, said the company significantly expands its cannabis cultivation operations indoors. It improves operational efficiencies by employing the best practices and embracing the latest technologies.

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Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) Agrees To Acquire Marijuana Derived Epilepsy Drug From GW Pharmaceuticals Plc (NASDAQ: GWPH) In Stock And Cash Deal

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Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) agreed to pay $7.2 billion in stock and cash for Marijuana Derived Epilepsy Drug – Epidiolex developed by GW Pharmaceuticals Plc (NASDAQ: GWPH). The deal will be closed in Q2.

As per the pact terms, GW Pharmaceuticals investors will receive American depositary shares, each at $220. The deal includes Jazz stock worth $20 and cash of $200 for each share.

Cures rare forms of the disease

GW Pharmaceuticals Epilepsy drug – Epidiolex, which is based on marijuana, is used to treat rare forms of the disease. According to a communiqué from the companies on Wednesday, Epilepsy drug garnered $510 million in 2020. GW Pharmaceuticals collected $32,500 from each patient as annualized charge in the US in 2018.

Strengthens neuroscience drug pipeline 

Jazz strengthens its neuroscience drug pipeline through this deal. Bruce Cozadd, CEO of Jazz, said Epidiolex expects to generate annual sales of $1 billion soon. The cannabinoid-based drugs of GW Pharmaceuticals are tested to treat schizophrenia, autism, and other medical conditions.

Jazz, which is based in Dublin, engages in the manufacture of drugs to treat rare diseases. These drugs generated sales of $1.7 billion in Q3 2020 (up 7.5% YoY). Xyrem, its best-selling drug, helps to cure narcolepsy.

Following the deal, Jazz’s shares declined by 5.1% on Wednesday on concerns that the company pays a higher premium to analysts estimates of GW Pharmaceuticals financial performance. An SVB Leerink LLC analyst, Ami Fadia, said the pact is a strategic fit for Jazz, which focuses on neuroscience.

With this deal, Jazz added cannabinoid-based products to its product line. It is an aggressive move for Jazz to takeover GW Pharmaceuticals at a higher price. The shares of GW Pharmaceuticals trade higher at $214.77 (up 46.85%) on March 2, 2021, whereas Jazz, is also rebounding.

Jazz posted revenues of $665 million (up 14.4% YoY) in Q4 2020, exceeding the analysts’ forecasts. As per analysts’ estimates, the company expects to post sales of $2.7 billion in 2021. Jazz offers treatments for indications in hematology-oncology, indications in neuroscience, and sleep disorders. Its promising drug Zepzelca offers a cure for small lung cancer.

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