Investor Ideas #Potcasts, #Cannabis News and #Stocks on the Move: (TSX: $LABS.TO), KIva Confections, NBA and Sequire Cannabis and Psychedelics Conference
Delta, Kelowna, BC, April 3, 2023
(Investorideas.com Newswire), investorideas.com, a global news source covering leading sectors
including marijuana and hemp stocks and its potcast site
release today’s podcast edition of cannabis news and stocks to watch plus insight
from thought leaders and experts.
Listen to the podcast:
https://www.investorideas.com/Audio/Podcasts/2023/040323-Cannabis.mp3
Read this in full at https://www.investorideas.com/news/2023/cannabis-potcasts/04031LABS-Kiva-NBA-Sequire-Psychedelics.asp
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Today’s podcast overview/transcript:
In today’s podcast we go over a few
industry announcements, changes to NBA drug testing policy as well as upcoming
events.
MediPharm
Labs Corp. (TSX: LABS) (OTCQX: MEDIF) and VIVO Cannabis Inc. (TSX: VIVO) (OTCQX: VVCIF) announced the completion of the previously
announced plan of arrangement under section 192 of the Canada Business
Corporations Act, pursuant to which MediPharm has acquired all of the issued
and outstanding common shares of VIVO in an all-equity business combination
transaction effective April 1, 2023. The Arrangement combines two highly
complementary businesses, creating a unique and market differentiating
international medical cannabis leader.
Key Transaction Highlights:
●
Leading Pharmaceutical
Cannabis Company: The acquisition of VIVO will add: established Australian and
German medical cannabis brand Beacon Medical; an industry-leading medical
cannabis clinic business Harvest Medicine; and a longstanding Canadian medical
sales platform Canna Farms Medical.
●
Direct to Patient
Sales:(1)(3) Canna Farms was the first Licensed Producer in British Columbia,
and its medical sales channel, Canna Farms Medical, has supported over 60,000
patients since 2014.(6) Following the Arrangement, it is anticipated that this
platform will provide patients with a more diverse product portfolio that
includes existing MediPharm products. Direct to patient sales generally result
in a better gross margin with the ability to bypass provincial distributors.
VIVO's clinic business Harvest Medicine will allow real-time product feedback
and clinical insights on MediPharm products.
●
Diversified Revenue
Profile with Strong Canadian Base: (1)(3) The pro-forma combined company
resulting from the Arrangement (the "Combined Company") is expected
to provide fulsome Canadian market coverage with cultivation and manufacturing
expertise, and a full suite of dried flower & derivative products with both
established medical and adult-use wellness distribution channels.
●
Expanding International
Medical Cannabis Opportunity:(1)(2)(3)(4) The pro-forma Combined Company's
international distribution will cover European and Asia-Pacific markets through
established, revenue-generating agreements. The VIVO Napanee Ontario facility
is EU-GMP certified for cultivating and packaging flower and the MediPharm
Barrie Ontario facility is GMP certified for non-flower alternative format medical
products. With two distinct international platforms, the pro-forma Combined
Company is expected to open many new product offerings for existing
distribution channels and geographies. The pro-forma Combined Company would
have annualized international revenue of over $20M, representing approximately
40% of total revenues.(5)
●
Revenue and Cost Synergies
Realizable in the Near-Term:(1)(2)(3)(4) Using forecasts derived
collaboratively by both management teams, along with revenue and cost synergy
estimates, the pro-forma Combined Company aims to find positive EBITDA(6)
synergies to the magnitude of between $7M to $9M on an annualized basis, and
could reach positive EBITDA and cash flow in the first half of 2024.
●
Balance Sheet
Strength:(1)(2)(3)(4) Anticipated combined cash position of approximately $26
million (as reported December 31, 2022) and unencumbered ownership of all major
assets. This strength is expected to provide confidence in the Combined
Company's balance sheet to execute on its strategic growth roadmap, despite the
macro backdrop of capital markets that continue to soften.
●
Ownership Ratio Finalized:
The Combined Company is owned approximately 73.1% by former MediPharm
shareholders and approximately 26.9% by former VIVO shareholders.
"We are very excited to be starting a
new chapter in the evolution of MediPharm Labs. VIVO is a strong cultural fit,
and a great strategic fit. Together the two organizations have a much clearer
path to profitability. I want to welcome all the VIVO employees and thank the
teams on both sides that worked over many months to help bring us
together," said David Pidduck, Chief Executive Officer of MediPharm.
"Our entire team has been working long
and hard to achieve our goals of growth and profitability and this deal is a
manifestation of that hard work. I cannot thank the team enough," said Ray
Laflamme, Chief Executive Officer of VIVO. "Canna Farms and VIVO have been
huge parts of my life and our team's lives for the past ten years. Personally,
I am proud to be part of the cannabis industry, and I am proud that our company
and our leadership are being recognized and validated by MediPharm's desire to
merge with us. We are very proud of VIVO and the amazing new company that we
will create with MediPharm."
As a result of the Arrangement, VIVO has
become a wholly-owned subsidiary of MediPharm, and the VIVO Shares are
anticipated to be de-listed from the Toronto Stock Exchange on or about April
4, 2023.
Kiva Confections, California's market leader
in premium, award-winning cannabis edibles, recently announced a partnership with iconic
burger chain Fatburger for this coming 4/20 holiday to
release a limited edition cannabis-infused Kiva x Fatburger Ketchup. The
first-of-its-kind Cannabis Ketchup, available for a limited time only beginning
April 6th at participating Artist Tree and Sweet Flower Los Angeles locations, encourages
consumers to heighten their favourite munchies, Fatburger's famous burgers and
french fries, while furthering Kiva's mission to continue the conversation
around cannabis normalisation in California and beyond.
The partnership between the two nationally
recognized brands supports the increased interest around cannabis as it
continues to be integrated into consumers' daily lifestyles. Currently,
recreational cannabis sales continue to grow in over 20 states across the U.S.,
and the number of cannabis users in the country is predicted to reach nearly 71
million users by 2030.
"As the market leader in cannabis
edibles, we're thrilled to continue pioneering innovative, yet everyday
products that pave the way for cannabis normalisation," commented Kristi
Palmer, Co-Founder of Kiva Confections. "We can't think of a better
partner for this than our favourite West Coast burger chain. Though the partnership
may seem unconventional, Fatburger and Kiva are both California-founded and
beloved institutions. What better way for cannabis fans to celebrate 420 than
with a delicious, elevated munchies meal - and for the cannacurious to take
their first dip into cannabis one fry at a time."
Kiva x Fatburger Ketchup will feature 10mg
of THC per packet, making it the ultimate "condiment" for all of your
Fatburger made-to-order burgers and fries ahead of the popular 4/20 holiday.
"Every year, we look to bring our own
special flavour to the 4/20 holiday," said Taylor Fischer, Vice President
of Marketing for Fatburger. "Kiva was the perfect fit from a collaboration
standpoint as they not only have an incredibly strong California fan base like
Fatburger, but the quality of their edibles is unmatched in the cannabis space,
similar to how we are viewed in the burger industry. Our special sauce will be
sure to take the munchie game to a higher level."
Kiva x Fatburger Infused Ketchup will be
available for purchase for a limited time only at select Artist Tree and Sweet Flower Los Angeles locations beginning
April 6th, retailing at $5 while supplies last. For more information on the
partnership, Kiva x Fatburger Ketchup, upcoming special Kiva x Fatburger events
and more, visit kivaconfections.com, fatburger.com, or visit the brands on
Instagram @madebykiva and @fatburger.
In recent news, The NBA will no longer be
testing for cannabis, according to a tentative deal between the league and the
National Basketball Players Association.
The two sides announced the collective
bargaining agreement, which still needs to be ratified before it becomes
official, on Saturday morning, according to The Athletic.
If the CBA is ratified by the players and
team governors, the seven-year deal would include a stipulation that cannabis
will be removed from the drug testing program and NBA players will no longer be
penalised for its use.
In a statement posted to Twitter, the National Basketball Players
Association said: "Specific details will be made available once a term
sheet is finalised."
"Since day one, the goal of the NBPA
in this negotiation was to protect our players, enrich their lives on and off
the court, and establish a framework that recognizes our players as true
partners with the governors in both the NBA and the business world at
large!" NBPA executive director Tamika Tremaglio said in a tweet.
Amid the pandemic, the NBA announced in
late 2021 that it would no longer randomly test players for marijuana
use after suspending testing in March 2020. At the time, NBA spokesman Mike
Bass said the league would instead "focus our random testing program on
performance-enhancing products and drugs of abuse."
Some NBA athletes – including Hall of
Famers Kareem Abdul-Jabbar and Allen Iverson – have been open about their own
cannabis use and advocated for cannabis legalisation as have athletes from
other leagues, like the NFL, MLB and UFC.
Finally, in upcoming events, the Sequire
Cannabis & Psychedelics Conference, a free virtual event, will
be hosted on Wednesday, April 5 from 10 am to 4 pm ET. It’s gonna be a trip,
featuring speakers from the industry’s top companies in the cannabis, CBD, and
psychedelic space alongside keynotes and more. Register today to hear more
about an industry expected to reach $72 billion annually by 2030. Companies
attending will be Numinus Wellness Inc.
(TSX: NUMI), Red Light Holland (OTC: TRUFF), Mindset Pharma (CSE: MSET) Nextleaf Solutions (CSE: OILS), Clever Leaves (NASDAQ: CLVR), High Tide Inc. (NASDAQ: HITI) and Silo Pharma (NASDAQ: SILO).
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