PALM BEACH, Florida, Oct. 17, 2019 /PRNewswire/ -- The big day for Cannabis 2.0 is here. Today is the day Canada is set to legalize edibles, beverages, and topicals, creating sizable opportunity for growth. Interesting to note, according to analysts at Deloitte, up to 60% of Canadians would use such cannabis edible products. Aurora Cannabis has been so enthralled with the opportunity it expanded into edibles, vapes, and concentrates to take advantage. Canopy Growth Corp. is launching edibles, beverages, and vape products on Cannabis 2.0. Even HEXO Corporation may benefit from its cannabis-infused drinks with Molson Coors Brewing. The big day is opening a wide range of opportunity for companies including The Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF), Aphria Inc. (NYSE:APHA)(TSX:APHA), Charlotte's Web Holdings Inc. (CSE:CWEB) (OTCQX:CWBHF), Aurora Cannabis Inc. (NYSE:ACB)(TSX:ACB), and CannTrust Holdings Inc. (NASDAQ:CTST).
The Yield Growth Corp. (CSE:BOSS)(OTCQB:BOSQF) BREAKING NEWS: The Yield Growth Corp. just announced it has signed a non-binding letter of intent to enter into a co-packing agreement with Apothecary Botanicals, a Canadian licensed cannabis producer and subsidiary of Geyser Brands Inc. (TSX-V: GYSR), for the production and launch of Yield Growth's Canadian Cannabis brand Jack n Jane, a line of cannabis-infused products including tinctures, topicals and capsules. This announcement coincides with Health Canada's official legalization of the production and sale of cannabis extracts and cannabis topicals effective today, marking the one-year anniversary of the legalization of recreational marijuana in Canada. Yield Growth will engage Apothecary Botanicals to manufacture and distribute its Jack n Jane products in British Columbia, combining Yield Growth's proprietary formulations with Apothecary Botanicals' cannabis supply, services, facilities, equipment and required Health Canada licenses for processing and sales. Yield Growth will supply all non-cannabis ingredients, packaging, and design while Apothecary Botanicals will supply cannabis containing THC and/or CBD as required for the various product formulations. The first phase of production is expected to include three tinctures containing THC and CBD, with a goal of coming to market by December 31, 2019.
Yield Growth intends to incorporate many of the products in its catalogue into the Jack n Jane line, including its own proprietary hemp root oil as a key ingredient and many other high-quality botanicals. The product line currently includes CBD and THC tinctures, muscle and joint gel, massage oils, muscle balm, and foot cream, with several new products in development including transdermal patches and bath soaks. "Ancient Ayurveda apothecaries worked diligently over millennia to unlock the vast potential of this medicinal plant," says Penny White, CEO of Yield Growth. "We are looking forward to bringing the highest quality skin care and personal care products to Canada with an LP in our beautiful home city of Vancouver."
Other cannabis-related developments from around the markets include:
Aphria Inc. (NYSE:APHA)(TSX:APHA) reported its results for the first quarter ended August 31, 2019. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts. "We are pleased to report a second consecutive quarter of profitable growth with strong contribution from our Canadian cannabis operations. Our success was also driven by our international business and the strength and growth of our brands, particularly Broken Coast, despite a small fire at our British Columbia facility at the end of the quarter. This solid start to the year keeps us on track to achieve our fiscal year 2020 financial outlook," stated Irwin D. Simon. "Going forward, we remain focused on our highest-return priorities both in Canada and internationally as our team furthers the development of our medical and adult-use cannabis brands to drive growth through innovation and return value to shareholders." Net revenue of $126.1 million in the first quarter, an increase of 849% from prior year quarter and decrease of 2% from prior quarter. Revenue for adult-use cannabis of $20.0 million in the first quarter, an increase of 8% from prior quarter. Net income of $16.4 million and adjusted EBITDA of $1.0 million in the first quarter. Adjusted EBITDA from cannabis operations of $1.3 million in the first quarter.
Charlotte's Web Holdings Inc. (CSE:CWEB)(OTCQX:CWBHF) and Nielsen just announced an analytic relationship between the world's leading CBD brand with the world's leading market intelligence company. Together, Nielsen and Charlotte's Web will help guide the U.S. retail market for consumer-packaged goods (CPG) companies through the evolution of the CBD space. Mirroring the changing tide happening across the U.S. retail and CPG industry, this new relationship marks an open and symbiotic relationship that is forming between the emerging CBD industry and the U.S. retail and manufacturing community. Charlotte's Web is an industry pioneer and the market leader of hemp-CBD extract products. Leveraging its deep product knowledge and category vision, this new relationship will provide unprecedented visibility into market-leading trends, highlighting segments, brands and products that are resonating with consumers in the CBD market. This alliance will also provide insight into consumer attitudes, product preferences, use occasions and future intent tied to consumer interaction points within CPG categories which will help establish Charlotte's Web as thought leaders and category captains of the hemp CBD category. Collectively, this powerful suite of information will enable U.S. CPG manufacturers and retailers to more easily measure and predict the impact of hemp CBD on the CPG industry and strategize accordingly. The announcement with Charlotte's Web comes as Nielsen steadily develops a full suite of cannabis measurement capabilities, inclusive of strategic alliances such as the one with Headset, the leading data and analytics service provider measuring and analyzing the legal Cannabis dispensary channel.
Aurora Cannabis Inc. (NYSE:ACB)(TSX:ACB) and CTT Pharmaceutical Holdings, Inc., ("CTT") (OTC | CTTH) announced today the successful commercialization of CTT's cannabinoid-infused sublingual wafers. The new cannabis product line, a first of its kind, has been launched by Aurora in the Canadian medical cannabis market under the brand name "Dissolve Strips. Aurora has an ownership interest in CTT of approximately 9%, with a warrant allowing it to increase its stake to 42.5%, and access to CTT's sublingual wafers drug delivery technology, which is patent protected or patent pending in multiple jurisdictions. "Aurora's Dissolve Strips™ provide unique advantages over other ingestible products due to their ease of administration, discrete nature and accurate dosage, that provides more rapid bioavailability of cannabinoids via sublingual use," said Terry Booth, CEO of Aurora. "This adds yet another innovative offering to our growing portfolio of high quality, medical products that we offer our patient base, and is testament to our industry leading ability to work with technology partners and regulators to bring new form factors to market rapidly."
CannTrust Holdings Inc. (NASDAQ:CTST) announced that it continues to make significant progress on its commitment to take any and all actions required to both bring the Company into full regulatory compliance and seek the full reinstatement of its licenses. On September 17, 2019, CannTrust announced that Health Canada had suspended the Company's licenses to produce cannabis and sell cannabis, without affecting the Company's ability to continue cultivating and harvesting cannabis. The Company will not challenge Health Canada's partial suspensions and remains focused on working collaboratively and transparently with the regulator to address the Company's non-compliance matters. In pursuit of this goal, the Company has provided Health Canada with an outline of its proposed remediation strategy. This strategy is aimed at implementing the measures identified by Health Canada as necessary to attempt to address the regulator's concerns.
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