NEW YORK, March 11, 2021 /PRNewswire/ -- The cannabis edibles market is looking up as top US lawmakers show their support for the legalization and decriminalization of cannabis at the federal level. More states are also legalizing recreational cannabis, with states like Virginia getting closer to this step following the recent passing of a bill by the House of Delegates and the Senate. As these potential regulatory changes continue to occur, companies in the cannabis industry are taking steps to move into the US market with edibles that match the current regulatory framework. Among these companies are Pure Extracts Technologies Corp. (CSE:PULL) (OTCPK:PRXTF), Sundial Growers Inc. (NASDAQ:SNDL), Fire & Flower Holdings (TSX:FAF) (OTCQX:FFLWF), OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX:OGI), and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).
New Collaborations Could Strengthen Prospects into the International Cannabis Market
Pure Extracts Technologies Corp. (CSE:PULL) (OTC:PRXTF) (XFRA: A2QJAJ), a plant-based extraction company, recently announced a licensing deal with Taste-T, LLC, a US-based firm that produces the Fireball brand of gummies using a proprietary manufacturing system. Taste-T sells its products in states such as Massachusetts, Michigan, Nevada, and Oklahoma.
The agreement gives exclusive rights to Pure Extracts in the Canadian market and first rights to other countries in the world. Ben Nikolaevsky, Pure Extracts' CEO remarked, "[the Taste-T] gummy line up represents a great opportunity for our Company to leverage one of the few US cannabis products that can legitimately be called a 'brand' and of course, as a Canadian Company, Pure Extracts is ideally suited to export these products to numerous countries around the world." Pure Extracts will distribute these products in Canada under their Pure Chews brand in compliance with Health Canada's regulations.
Pure Extracts also partnered with Canada House Wellness Group, an integrated medical cannabis company. Through the distribution agreement, Abba Medix Corp., a subsidiary of Canada House, will distribute Pure Extracts' concentrate products through Abba Medix's existing distribution channels.
Chris Churchill-Smith, Canada House's CEO, commented, "We've been extremely impressed with the Pure Extracts team and the brand presence they have established particularly in western provinces and are looking forward to supporting their commercialization efforts in a mutually beneficial way."
Adding to this statement, Pure Extracts' CEO said, "this agreement allows us to quickly and efficiently get our outstanding line of full-spectrum oil vape and edible products to retail buyers across Canada while our Sales Amendment application is being processed by Health Canada."
Companies Form Strategic Relationships in Positioning Themselves for a Growing Cannabis Edibles Market
Sundial Growers Inc. (NASDAQ:SNDL) recently completed a $22 million strategic investment into Indiva, a Canadian licensed producer of cannabis edibles. The CEO of Sundial, Zach George, said concerning this investment, "Sundial is pleased to support the development of Indiva's high-quality products… This transaction broadens our exposure to the rapidly expanding cannabis edibles category." Indiva intends to use the proceeds of the investment onto retiring its outstanding debt and for working capital and corporate purposes. The President and CEO of Indiva said about this investment, "the capital from this $22 million investment significantly improves Indiva's balance sheet, expands our working capital, and provides the resources necessary to support strong growth in our industry."
Fire & Flower Holdings (TSX:FAF) (OTCQX:FFLWF) announced strategic agreements with Canadian Private Company, American Acres Managers, which allows Fire & Flower Holdings to enter into US cannabis retail stores and major markets. The agreement also gives Fire & Flower the option to acquire American Acres at a discount should the federal government legalize adult-use of cannabis in the US or when permitted by stock exchanges in which the company trades. Trevor Fencott, Fire & Flower's CEO, commented about the agreements, "Due to the rapid success of our operational model in Canada, the Fire and Flower brand is poised to become a key player in the US cannabis industry, where the demand for incorporating technologically advanced systems has never been greater. Our Hifyre technology has surpassed our competitor's offerings by streamlining the customer experience and driving greater margins, and places the Fire and Flower brand in a unique position to play a leading role in competitive US cannabis markets."
OrganiGram Holdings Inc. (NASDAQ:OGI) (TSX:OGI) spent 2020 revitalizing its product portfolio with different offerings and intends to launch up to an additional 14 new SKUs before Q2 of the fiscal year 2021. OrganiGram made a strategic move to appoint Ms. Marni Wieshofer to the board of directors. Speaking about the appointment, OrganiGram's chairman, Peter Amirault, said, "It is my pleasure to welcome Marni to OrganiGram's Board of Directors… Over the course of her impressive career, she has acquired tremendous M&A and financial expertise and demonstrated outstanding ability as a strategic leader. As we chart an ambitious course for the future of the company nationally and internationally, we look forward to her contribution and insight."
In 2020, Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) agreed to buy Reliva, a US-based CBD company, giving it a foothold in the US cannabis market. Michael Singer, Aurora's executive chairman commented, "it's immediate access into the world's largest cannabinoid market. I think the Reliva acquisition is a responsible strategic entry into the US market; and for Aurora, delivers a key aspect of our reset plan… Reliva has access to 20,000 retail locations and even more important strong relationships with the leading wholesalers and distributors in the US."
Companies such as Pure Extracts are positioning themselves to benefit from the opportunities that will open up if the US federal government legalizes and decriminalizes cannabis.
For more information about Pure Extracts Technologies Corp., click here.
DISCLAIMER: Microsmallcap.com (MSC) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with MSC or any company mentioned herein. The commentary, views and opinions expressed in this release by MSC are solely those of MSC and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable MSC and FNM for any investment decisions by their readers or subscribers. MSC and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (MSC), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (MSC) has not independently verified or otherwise investigated all such information. None of the Author, MSC, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated twenty five hundred dollars by MSC, a non-affiliated third party to distribute this release on behalf of Pure Extracts.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC and FNM undertake no obligation to update such statements.
FN Media Group, LLC