Investor
Ideas #Potcasts, #Cannabis News and #Stocks on the Move; Episode 392 (TSXV: $KHRN.V) (TSX: $VFF.TO) (NASDAQ: $VFF) (TSXV: $VLNS.V)
(TSX: $TRST.TO) (CSE: $BILZ.C)
Delta, Kelowna, BC, March 31st, 2020 (Investorideas.com
Newswire) www.Investorideas.com, a global news source covering leading sectors
including marijuana and hemp stocks and its potcast site, www.potcasts.ca release today’s podcast
edition of cannabis news and
stocks to watch plus insight from thought leaders and experts.
Listen to the podcast:
Read this in full
at https://www.investorideas.com/news/2020/cannabis-potcasts/03311KHRN-VFF-VLNS-TRST-BILZ.asp
Today’s podcast overview/transcript:
Good
afternoon and welcome to another episode of Investorideas.com
"Potcast" featuring cannabis news, stocks to watch as well as
insights from thought leaders and experts.
In
today’s podcast we are looking at a few public announcements.
Khiron Life
Sciences Corp. (TSXV:
KHRN) (OTCQX:
KHRNF) a vertically integrated cannabis leader with core
operations in Latin America, announced that
the Company has launched its teleconsultation services, leveraging its medical
team and existing patient network to meet essential patient needs during the
current COVID-19 pandemic. From an initial beta launch, the Company anticipates
rapidly expanding services across its entire patient network amidst the growing
acceptance of telemedicine services.
"We
are in unprecedented times and so it is more important than ever for Khiron to
continue to meet the medical needs of our patients. The launch of our
teleconsultation services was made possible with our on-staff doctor expertise
and established patient network, allowing us to move swiftly to continue to
deliver clinical services and prescriptions for medical cannabis and other
drugs, directly to the patients who need
it," comments Alvaro Torres, Khiron CEO and director.
Khiron's
teleconsultation services launch on April 1st, with an initial beta
phase to serve priority patient needs. Expanded services will launch in the
coming weeks to be fully available to patients across Colombia, including to
the Company's over 120,000 patient network established through its ILANS and
Zerenia medical facilities. The Company is working closely with third party
payers to ensure the program meets their insurance coverage requirements.
"Khiron
has established contingency plans in place for all our facilities, including
our medical facilities which are essential to serving the community. Those
plans were put into action and our medical facilities and supply chain remain
operating within strict government guidelines established as a result of the
current pandemic. I commend our frontline staff for their continued hard work
and commitment to meeting patient needs during this difficult time," said
Mr. Torres.
Khiron
is the first, and currently the only, Company authorized to sell medical
cannabis in Colombia, having recently obtained certification of Good
Elaboration Practices (GEP) for Magistral Preparations with Cannabis. Under
Colombian regulations, GEP is a manufacturing and processing certification that
is a mandatory requirement for commercializing customized medical cannabis
prescriptions known as magistral preparations.
Village Farms
International, Inc. (TSX:
VFF)
(NASDAQ:
VFF)
announced
its
financial results for the fourth quarter and year ended December 31, 2019. Village Farms currently has a majority
(non-controlling) interest of 57.4% of its cannabis joint venture, Pure
Sunfarms Corp., however, at December 31, 2019 had a majority (non-controlling)
interest of 53.5%.
"2019
was an outstanding year for Pure Sunfarms that saw it generate more than C$35
million in net income and EBITDA of C$54 million on sales of C$83 million, with
a full-year, all-in cost of production of C$0.78, even as it was ramping up
operations for much of the year," said Michael DeGiglio, CEO Village
Farms. "In an industry that has been broadly impacted by inexperience and
imprudence, Pure Sunfarms continues to set itself apart both operationally and
financially."
"Even
amidst the continuing challenging macro environment, partially due to slower
than expected retail store openings, Pure Sunfarms reported positive net income
and positive EBITDA in the fourth quarter – its fifth consecutive quarter of
positive EBITDA. Fourth quarter sales reflect Pure Sunfarms' transition from
its focus entirely on the wholesale market to its focus on the branded retail
market. As expected, during the fourth
quarter Emerald did not take any of its 40% commitment under its supply
agreement with Pure Sunfarms, which could not readily be redirected given the
inactive wholesale market. In addition,
one of the three large initial branded retail product shipments to provincial
boards occurred before the fourth quarter, with one of the other three
occurring after the fourth quarter."
"Immediately
out of the gate, Pure Sunfarms established itself as a leading cannabis brand,
highlighted by its number one dried cannabis sales performance in Ontario. This
bodes very well for Pure Sunfarms as the Canadian market continues to grow, as
provinces, especially Ontario, expand their retail store counts, and Pure
Sunfarms expands into other provinces, and introduces new products, including
new product forms under Cannabis 2.0.
Importantly, Pure Sunfarms' industry leading cost of production, with
opportunities to drive that cost even lower, provides it with significant
pricing flexibility to capture even greater market share."
"In
our U.S. hemp and CBD business, 2019 saw us build the foundation to capitalize
on this transformative long-term opportunity, highlighted the formation of
joint ventures with high-caliber partners for outdoor cultivation, a very
successful inaugural outdoor growing season, the start of conversion of a
greenhouse operation for hemp production and significant advancement on our
consumer packaged goods strategy. At this
time, we have deemed it prudent to pause capital investment given the current
uncertain regulatory environment and limited visibility, which has had
significant negative impact on hemp demand and pricing. As we await regulatory
clarity, we remain committed to the industry, and continue to actively pursue
opportunities in the near term."
"2019
continued to see the transition of our produce business as we experienced
ongoing pricing pressure from U.S. and Canadian retailers and, as expected, had
lower volumes due to the displacement of production capacity for both cannabis
in Canada and hemp production in the U.S., ahead of bringing our significantly
expanded growing partner production on board.
At the same time, we have maintained our corporate cost structure to
support our significant opportunities in hemp and CBD, as well as cannabis in
Canada. Notwithstanding the potential impacts of the COVID-19 pandemic, we
expect to see significant partner capacity this year as we continue to execute
on our plan to return the produce business to positive EBITDA generation."
Valens GroWorks
Corp. (TSXV:
VLNS) (OTCQX:
VLNCF) announced that it
has received conditional approval from the Toronto Stock Exchange to uplist
from the TSX Venture Exchange to the TSX.
"Graduating
to the TSX represents a significant milestone in our efforts to broaden our
appeal to a larger shareholder base and raise the company's profile among the
investment community," said Tyler Robson, CEO of The Valens Company. "Coming
off a record year of growth for the company, this uplisting will work to
enhance the liquidity of our stock and enable us to continue building long-term
shareholder value."
Final
approval of the listing is subject to the Company fulfilling any remaining
conditions as required by the TSX. The Company expects to satisfy all of the
requirements and will issue a statement once a trading date has been confirmed
by the TSX. Upon completion of the final listing requirements, The Valens
Company's common shares and warrants will be delisted from the TSXV and
commence trading on the TSX under the trading symbols "VLNS" and
"VLNS.WT." The Company's shares will continue to trade on the OTCQX
market under the symbol 'VLNCF'.
CannTrust Holdings
Inc.
(TSX:
TRST) (NYSE:
CTST) announced today
that the Company has obtained an order (the "Initial Order") from the
Ontario Superior Court of Justice granting protection under the Companies' Creditors Arrangement Act. In
accordance with the Initial Order, all creditors of CannTrust, CannTrust Inc.,
CTI Holdings (Osoyoos) Inc., and Elmcliffe Investments Inc., as well as the
plaintiffs in the putative class actions and other litigation brought against
the Applicants, will be stayed from enforcing their claims. The Initial Order
provides for a stay of proceedings in favour of the Applicants for an initial
period of 10 days, subject to such extensions as the Court may subsequently
order, and the appointment of Ernst & Young Inc. as Monitor in the CCAA
proceedings.
After
reviewing a number of options, CannTrust's Board of Directors determined that
commencing CCAA proceedings is in the Company's best interests. The Company
hopes to exit CCAA protection well-positioned to rebuild its stakeholders'
trust and deliver high-quality, innovative products to its patients and
customers.
Pursuant
to the Initial Order, the Court has granted a stay of proceedings that will
allow CannTrust to, among other things:
●
Complete the remainder of CannTrust's
remediation plan for its Vaughan Facility without disruption and submit the
related evidence package to Health Canada;
●
Continue to work with Health Canada to
resolve any remaining Cannabis Act
compliance issues, with a view towards reinstating CannTrust's licenses for its
Niagara and Vaughan facilities and restoring operations;
●
Explore a CCAA plan of compromise or
arrangement as a means for addressing the multiple putative class actions and
other litigation brought against CannTrust in several jurisdictions, seeking to
resolve all of the claims and contingent claims against the Company in a single
forum; and
●
Facilitate the completion of the Board of
Directors' review of strategic alternatives (the "Strategic
Process"), including the solicitation, development and execution of any
potential sale or other strategic transaction involving CannTrust, whether in
addition to, or as an alternative to, a CCAA plan of compromise or arrangement.
Despite
the efforts by CannTrust's management and Board of Directors to preserve the
Company's cash liquidity while seeking to restore the Company to operations and
resolve the multiple litigations and other contingent claims facing the
Company, the Company's future remains uncertain. Without its cannabis licenses,
the Company has been unable to generate any meaningful revenue since June 2019.
The Company has not filed any financial statements subsequent to its interim
unaudited comparative financial statements for the three months ended March 31,
2019, which, together with its financial statements for the year ended December
31, 2018, are subject to restatement. Furthermore, the effects of the COVID-19
pandemic have exacerbated what were already difficult circumstances,
introducing potential delays in Health Canada's ability to review the Company's
applications for reinstatement of its Niagara and Vaughan licenses and making
it even more challenging for CannTrust to attract new financing or a strategic
partner.
CannTrust
is expending significant time and money pursuing the completion of its
remediation plan and defending the putative class actions against the Company
in multiple jurisdictions. There can be
no assurance that Health Canada will reinstate CannTrust's licenses or that the
Company's litigation will be resolved in the near term or on a basis that will
leave the Company with sufficient financial resources to resume operations. At
present, and in light of seeking CCAA protection, its reduced liquidity
position and the contingent claims it is facing, the Company does not intend to
devote additional time or money towards curing its public disclosure defaults
by completing and resuming the filing of required reports under Canadian and
United States securities laws. As of March 20, 2020, CannTrust had a cash
balance of approximately $145 million. If Health Canada elects to reinstate
CannTrust's cannabis licenses, it would take several months for the Company to
begin earning revenue and the Company would require significant working capital
to restore its operations and return to profitability. Similarly, there can be
no assurance that the Strategic Process will result in any transaction, and
there can be no assurance that the Strategic Process or the outcome of the CCAA
proceeding will provide any residual value for the benefit of holders of the
Company's Common Shares.
Trading
in CannTrust's common shares on the Toronto Stock Exchange and New York Stock
Exchange has been halted and the Company expects that, as a result of having
filed for protection under the CCAA, the Common Shares will soon be delisted
from trading on the TSX and NYSE. In addition, CannTrust anticipates that, as a
result of the Company's filing for protection under the CCAA, its pending
delisting by the TSX and NYSE, and its continuing default of its disclosure
obligations under applicable securities laws, provincial securities regulators
in Canada will issue a cease trade order to prevent any trading in the Common
Shares in Canada.
A
comeback hearing in respect of the relief granted pursuant to the Initial Order
will be scheduled within ten days.
Interested parties that wish to bring a motion at the Comeback Hearing
are required to provide notice to the affected parties prior to the Comeback
Hearing pursuant to the requirements set forth in the Initial Order.
Ignite
International Brands, Ltd. (CSE:BILZ) (OTCQX:BILZF), who
back in the start of March announced that it
has executed a licensing agreement with CannMart Inc., a leading online
provider of high quality cannabis products and accessories, operating as a
wholly-owned subsidiary of Namaste
Technologies Inc. (TSXV:N).
The Agreement
grants CannMart a non-exclusive licence to utilize certain IGNITE brand
trademarks on legal cannabis-based products in consideration for certain
royalty payments.
Pursuant to the
Agreement, CannMart will work with IGNITE’s quality control and product
development teams to source premium inputs, including flower and Cannabis 2.0
offerings, from Canadian craft cannabis producers for the IGNITE Products.
Under the Agreement, CannMart assumes all functions associated with
procurement, processing, and packaging of the IGNITE Products in its Health
Canada-licenced processing facility. In addition, CannMart will oversee the
sale and distribution of the IGNITE Products in Canada, leveraging its Canadian
trade channels. Pursuant to the Agreement, IGNITE will, on behalf of CannMart,
market the IGNITE Products in Canada.
“The IGNITE team
remains committed to delivering cannabis products to every market we target. We
firmly believe working with CannMart will provide quality product offerings and
a quicker route to market given CannMart’s competencies,” said IGNITE CEO, Dan
Bilzerian. “The IGNITE philosophy aligns with CannMart’s passion to deliver
innovative products through its global distribution channels.”
“CannMart delivers
a unique value-added proposition to brands,” said Curtis Heffernan, President
of IGNITE. “The agreement with CannMart will allow IGNITE to remain
laser-focused on expanding brand awareness to maximize its reach to Canadian
consumers.”
“CannMart continues
to demonstrate its ability to attract leading brands like IGNITE, to deliver
recognizable quality products to consumers,” said Meni Morim, CEO of Namaste
Technologies. “Namaste believes IGNITE is well known among our current customer
base and CannMart intends to leverage IGNITE’s brand recognition to drive sales
throughout its network of government partners and retailers.”
Ignite
International Brands, Ltd. also announced
that
it is expanding its partnership with UK manufacturer and distributor Taylor
Mammon to add new CBD products, including roll-ons, bath bombs, tattoo cream,
moisturizers, creams, serums and body oils which make up the exciting new
skincare product line. In conjunction with Taylor Mammon, IGNITE is also
expanding its existing range of tinctures to offer different levels of potency
and will also begin to offer 10ml CBD e-liquids for vape devices in the UK.
“It’s
important to us and our partners that we continue to innovate and grow the
IGNITE brand with new innovative products. We’re excited to be able to
introduce a new line of skincare products that we know will introduce the
IGNITE brand to a new audience,” said Curtis Heffernan, President of IGNITE.
“Our business relationship with Taylor Mammon has been a great one for us in
the past and we know that together we will continue to expand IGNITE globally.”
The
new IGNITE product line includes roll-ons in three flavours, bath bombs available
in relaxing and energizing scents, tattoo cream developed for before, during
and after getting a tattoo. A full skin-care line and topical line, new
tinctures available in new delicious flavours, as well as new E-Liquid flavors.
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ideas reminds all listeners to read our disclaimers and disclosures on the
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