Focus on cannabis and psychdelic sectors, small cap, micro cap and mid cap companies
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Wall Street Journal - Arizona Iced Tea Maker Turns to Weed
https://www.wsj.com/articles/arizona-iced-tea-maker-turns-to-weed-11565172124
Beverage maker reaches licensing deal with U.S. cannabis company for new line of gummies, vape pens and drinks
By Jennifer Maloney
Aug. 7, 2019 6:02 am ET
The company behind Arizona Iced Tea is getting into the market for marijuana-laced gummies and drinks in the U.S. and Canada, seeking new avenues for growth after losing ground in its core tea business.
Arizona Beverage Co. has reached a licensing deal with Dixie Brands Inc., a Denver-based cannabis company that makes and sells weed vaporizers, candies, drinks, tinctures and topical creams in five U.S. states. Under the agreement, Dixie will manufacture the products and sell them through licensed dispensaries. The deal, which is subject to approval by Dixie’s board, also gives Arizona the right to buy a stake of up to $10 million in the cannabis company.
Plans for the Arizona line are in the early stages. It is likely to start with vape pens and gummies, followed by a variety of beverages that could include tea, lemonade, soda, coffee or seltzer, officials said. Dixie intends to launch the line in the U.S., then expand it to Canada and Latin America.
Arizona, a privately held company, is hoping to get a head start in the U.S. cannabis market over big, publicly traded beverage makers that are taking a more cautious approach. Companies including Corona brewer Constellation Brands Inc. and Coors Light brewer Molson Coors Brewing Co. are developing marijuana-laced drinks in Canada but waiting for cannabis to be federally legal before bringing them to the U.S.
“You’ve got to be willing to try things,” said Don Vultaggio, Arizona’s chairman and CEO, who runs the company with his two sons. “The upside is we’re one of the first ones in an emerging space.”
Arizona is one of the first big American brands to plunge into the U.S. marijuana market. Heineken NV’s Lagunitas brewery worked with a California cannabis company to launch a weed-infused sparkling water last year. The drink, called Hi-Fi Hops, is available only in California.
But it is still a risky move—one that a publicly traded company couldn’t make, Mr. Vultaggio said. In the U.S., 11 states have legalized recreational marijuana and medical marijuana is legal in more than 30. But cannabis is still prohibited by federal law. That means it can’t be transported across state lines, many banks won’t take money derived from cannabis sales and companies that sell marijuana in the U.S. can’t list on major U.S. stock exchanges.
Under the deal, Dixie will manufacture the goods in each state they are sold in and Arizona won’t be involved in production.
Mr. Vultaggio in 2015 settled a yearslong legal battle with his former business partner over control of the company they co-founded. Since then, he has tried to kick-start its ready-to-drink tea business and expand into other categories.
While Arizona remains the leading U.S. ice-tea brand by sales volume, its market share has fallen steadily, from 23.4% in 2013 to 16.2% last year, according to Euromonitor International. It also lost its top spot in retail sales dollars of ready-to-drink tea, unseated last year by Pure Leaf, a joint venture by Unilever PLC and PepsiCo Inc.
Arizona’s tea sales are growing this year, as is overall revenue, Mr. Vultaggio said, adding that the company will complete construction next year on a new manufacturing plant. “Right now, we’re not producing enough to meet demand,” he said.
The Woodbury, N.Y., company over the past two years has introduced beef jerky and fruit snacks, and this month plans to launch a line of seltzers flavored with a splash of fruit juice.
Write to Jennifer Maloney at jennifer.maloney@wsj.com
yeah great news! Definitely should get Dixie noticed.
Arizona™ Beverages and Dixie Brands Form Strategic Partnership to Launch Collection of THC-Infused Cannabis Products
https://dixieelixirs.com/press-release-new/?id=122520
The iconic AriZona™ brand becomes the first mega brand to extend into THC cannabis market
DENVER and WOODBURY, NY, Aug. 7, 2019 /CNW/ - Dixie Brands Inc. (CSE: DIXI.U), (OTCQX: DXBRF), (Frankfurt: 0QV), a leading cannabis CPG company, and AriZona, maker of the #1 selling iced tea in America, signed a binding letter of intent on Friday, August 2nd, 2019, to partner for the production, distribution and sale of cannabis-infused products containing tetrahydrocannabinol (THC).
Under the terms of this deal between Dixie Brands Inc., and the AriZona™ brand, through its affiliated entity, Herbal Enterprises, LLC, will direct brand and product conceptual design; while Dixie Brands will develop, formulate, manufacture and distribute the new portfolio of AriZona branded THC infused consumer packaged goods.
"AriZona has always led the way in product innovation," said Don Vultaggio, Chairman, AriZona Beverages. "The cannabis market is an important emerging category, and we've maintained our independence as a private business to be positioned to lead and seize generation-defining opportunities exactly like this one. The Cannabis category is an ideal space to bring the flavor and fun of AriZona into new and exciting products, and we selected Dixie Brands as our partner to bring these products to market after touring their best in class manufacturing facilities, and spending considerable time building a strong relationship with their management. Both companies share a heritage of quality, excellence in manufacturing, and doing things the right way, and we look forward to all this partnership has in store."
"AriZona is a power brand," said Chuck Smith, CEO Dixie Brands, "and the most iconic and recognized CPG brand to extend into the cannabis market, providing the evolving cannabis consumer with a fun and flavorful experience alongside an iconic brand they know and love. For nearly a decade Dixie Brands has crafted award-winning cannabis-infused products creating some of the most recognized and trusted brands in the industry, and we are thrilled to have found a partner that shares our values. This partnership marks a watershed moment for the popularization and expansion of the cannabis sector overall, and is another large step forward for Dixie Brands' strategy to build a house of famous cannabis CPG brands."
Based on the signed letter of intent (LOI), Dixie Brands and AriZona agree to complete definitive agreements within forty-five (45) days after the date of the LOI, or such other date mutually agreed to in writing by the companies, including a license agreement that shall grant Dixie Brands the right to use certain AriZona trademarks, brand and other necessary intellectual property in conjunction with Dixie's extensive formulation, manufacturing and distribution expertise.
In connection with the execution of the binding letter of intent, but subject to the execution of definitive agreements and the receipt of any additional required approvals, AriZona or its affiliate may complete a strategic investment in Dixie Brands through the exercise of warrants granted to AriZona equal to the value of up to USD$10,000,000 in subordinate voting shares of Dixie Brands at an exercise price of USD $0.59 for a term of 24 months. Upon signature of the definitive agreement the company will make an announcement with the details of the agreement.
The initial term of the partnership is three years, with an option to renew for up to two (2) additional terms of two (2) years each.
Khiron and Dixie Receive Conditional TSXV Approval for Roll-Out of Kuida Cosmeceutical Line in U.S. Market and Cannabis-Infused Products in Latin America
https://investors.khiron.ca/press-releases/detail/105/khiron-and-dixie-receive-conditional-tsxv-approval-for
AUGUST 06, 2019
Khiron receives conditional TSXV approval for Latin American joint venture with Dixie Brands and U.S. distribution and sale of Kuida cosmeceutical line
Conditional approval subject only to receipt of customary closing documentation
Accelerates strategy as first mover CBD brand targeting U.S. $20 Billion United States skincare market (Source: Euromonitor)
Commercialization of Kuida products in the U.S. market anticipated in early 2020
Latin American commercialization of Dixie CBD-infused products beginning in 2020
TORONTO and DENVER, Aug. 6, 2019 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron") (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), an integrated cannabis company with core operations in Latin America, and Dixie Brands Inc. ("Dixie") (CSE: DIXI.U), (OTCQX: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods companies, announced today that their previously disclosed 50/50 Joint Venture ("JV") has received conditional approval from the TSX Venture Exchange ("TSXV"), subject to receipt of customary closing documentation. With this approval in place, Khiron and Dixie will begin the process of commercialization of the Kuida cosmeceutical product line in the U.S. marketplace, as well as the introduction of Dixie's CBD-infused products into Latin America.
Through the JV, Dixie will be responsible for the distribution of Khiron's portfolio of Kuida cosmeceutical products in the U.S. Kuida products will be broadly distributed through Dixie's established distribution network to U.S. consumers, and are expected to have particular appeal to the growing U.S. Hispanic population, estimated at nearly 60 million.
Further, the conditional TSXV approval allows for the manufacture and commercialization of Dixie's products in Latin America, leveraging Khiron's legislative, sales and marketing abilities and Dixie's extensive and market-proven product line. It is anticipated that Dixie CBD-based products will be commercialized in Latin America beginning in 2020. The JV also creates a framework for the development of new products and brands tailored to Latin America, allowing Dixie and Khiron to take full advantage of opportunities resulting from advancements in cannabis legalization in the region. The conditional TSXV approval covers operations in Colombia, Chile and Uruguay; additional applications will be made to the TSXV as more Latin American countries legalize the use of cannabis.
Alvaro Torres, Khiron CEO and Director, comments: "With a strong JV leadership, sales and marketing team in place, this regulatory approval positions us to accelerate activities in both our core Latin American markets and in the U.S. Bringing the full Kuida product line to U.S. consumers is an important development as we build capacity and market access to expand Kuida brand distribution into new jurisdictions globally."
Chuck Smith, President and CEO of Dixie Brands, stated, "We are very excited about our strong partnership with Khiron and the rapid progress we are making with them on both major initiatives. The Kuida product line is an excellent fit for our growing CBD distribution network which is on pace to reach several thousand brick and mortar locations in the U.S. by the end of the year in addition to a robust online presence. Introducing the Dixie portfolio to Latin America beginning in 2020 will be an important milestone in our international expansion."
Progress towards market entry for Kuida into the U.S. and Dixie brands in Latin America is advancing, with an internationally experienced and well-connected sales and management team now in place to lead activation of the JV strategy. In June, Kuida was previewed to U.S. industry leaders at the influential FounderMade Discovery Show East in New York City, an elite summit for next generation brands, and in July, at Cosmoprof North America, targeting over 40,000 retail buyers, distributors, and beauty industry professionals.
Launched in October 2018, Kuida brings the benefits of Cannabidiol (CBD) to a comprehensive portfolio of skin and body care products. Kuida remains the only CBD skincare product line widely available at retail in Colombia with distribution in over 175 points of sale across the country, as well as leading e-commerce platforms.
Sorry for scaring you. I guess you scare easily?
https://lordjones.com/
Just glancing thru this site tells me CRON is after the high end market. Goes right along with stuff Gorenstein has said in the past. Let the other companies fight over the common commodities market. The future is in higher end and derivative products. 20 years ago, we balked at the idea of paying 6 bucks for a coffee. But Starbucks showed it was possible.
yup! pitiful.
Bought 500 at 12.70. Average is 4.82 now. Will be accumulating anything 12 and under. Been liquidating alot of other weed stocks in my portfolio to load up on CRON this summer for a long hold into Legalization 2.0 and beyond.
haha I said the same thing to myself earlier.
Thanks for this! as it's not on The Cronos Group website yet nor have they sent any emails out and it's not posted to TD for either company.
I've never heard of Heritage. They may be a nice summer swing trade.
The nearly 3bn OS will go to 50mm OS. But the AS won't change. It won't be reduced. So they'll have 2.5bn more shares to play with, distribute as they please and use to pay for stuff(dilution). Meanwhile insiders will probably keep selling. This shit is done and getting on the Nas is a pipe dream.
I was trying but couldn't get any after hours. I was busy at work and missed that $5.77 - $5.83 range today during the regular session smh.
OGI has been manipulated in a channel for the past three weeks or so and I've been swing trading it(still keeping my core) and making some nice short term gains all the while. The THC/CBD powder was big and unexpected news and should've had us sustained over $7 but OGI got shot down by CannTrust's huge fuckup smh. That company has seriously fucked up the entire industry this week. I expect OGI's ER to be great but not sure if we can escape this black hole of cannabis investor/cannabis media discontent right now.
KUSHCO HOLDINGS REPORTS THIRD FISCAL QUARTER 2019 RESULTS
https://ir.kushco.com/news-events/press-releases/detail/224/kushco-holdings-reports-third-fiscal-quarter-2019-results
Net Revenue Increased 221% Year-Over-Year to $41.5 Million, Setting a New Company Record for Quarterly Revenue; Gross Profit Improved by 4.9% Sequentially to 17.8% on a GAAP Basis
GARDEN GROVE, CA / ACCESSWIRE / July 9, 2019 / KushCo Holdings, Inc. (OTCQX: KSHB) ("KushCo" or the "Company"), today reported financial results for its third fiscal quarter ended May 31, 2019.
Third Fiscal Quarter 2019 Financial Summary
Net revenue increased 221% year-over-year to $41.5 million, compared to the same quarter a year ago and 17.9% on a sequential basis versus the second fiscal quarter of 2019.
On a GAAP basis, gross profit increased to 17.8%, compared to 12.9% during the second fiscal quarter of 2019.
On a Non-GAAP basis, excluding the impact of certain non-recurring items, gross profit was approximately 22.8%.
On a GAAP basis, net loss was approximately $10.6 million, compared to a net loss of approximately $9.2 million during the third quarter of fiscal 2018. Loss per share improved from negative $0.14 during the third quarter of fiscal 2018 to negative $0.12 during the third quarter of fiscal 2019.
On a Non-GAAP basis, excluding the impact of certain non-recurring charges and gains, net loss during the third quarter was $8.6 million and net loss per share was negative $0.10.
Cash was approximately $12.2 million as of May 31, 2019, compared to approximately $13.5 million as of August 31, 2018.
Third Fiscal Quarter Operational Summary
Launched first biodegradable packaging solution through contract with SunGrown
Completed warehouse management system implementation
Secured $21.3 million in senior unsecured note
Signed exclusive development and distribution agreement with IEKO to produce biodegradable and compostable plastics portfolio
Nick Kovacevich, Chairman and Chief Executive Officer, commented, “Revenue for the third fiscal quarter of 2019 saw strong growth of 221% year-over-year, reaching a record $41.5 million, compared with $12.9 million in the third fiscal quarter of 2018 and $35.2 million in the second fiscal quarter of 2019. More importantly, we saw gross margins move up ~490bps on a GAAP basis quarter over quarter which is a testament to our commitment of profitable and sustainable growth over time. The Company’s organic revenue growth and overall performance were attributable to the growth of our customer base and effective cross-selling of our offerings.”
“We remain committed to investing in the expansion of the business through initiatives targeting high-demand, high-margin opportunities that will facilitate increased cross-selling throughout our robust customer base. Partnerships will help us achieve those revenue and margin goals, including our recently announced deal with CA Fortune, which opens an entirely new vertical that will facilitate access to a distribution network unlike anything ever experienced by the cannabis and hemp industries before. We continue to evaluate accretive business opportunities and anticipate more partnerships coming online soon that service our vast network and power the cannabis ecosystem,” continued Mr. Kovacevich.
“We expect demand to increase for the Company’s core product offerings as the cannabis and hemp markets continue to expand and mature. Our customer base is gaining strength with the largest multi-state operators and Canadian LP’s starting to scale in existing markets, while also preparing for growth in new emerging geographies - including recently approved Illinois. We remain committed to building out the Company’s core competencies as we increase efficiency at a larger scale and strategically adding new verticals that will further establish KushCo as a major player in the cannabis and hemp industries,” concluded Mr. Kovacevich.
Conference Call Information
The company will also host a conference call on Tuesday, July 9, 2019 at 4:30 PM Eastern Time.
Participant Dial-In Numbers:
Toll-Free: 1-877-407-9039
Toll / International: 1-201-689-8470
*Participants should request the KushCo Holdings Earnings Call or provide confirmation code 13692223
The call will be webcast, with an accompanying slide deck, on the KushCo Events page of the Company website at www.kushco.com. Please visit the website at least 15 minutes prior to the call to register, download, and install any necessary audio software. A replay of the call will be available on the KushCo Events page approximately two hours after the conference call has ended.
Nick Kovacevich, Chief Executive Officer of KushCo, Jason Vegotsky, President and Chief Revenue Officer, and Chris Tedford, Chief Financial Officer, will be conducting a question and answer session following their prepared remarks.
To be added to the distribution list, please email ir@kushco.com with "Kush" in the subject line.
Canopy Growth Ex-CEO Bruce Linton mentions investing in Organigram at 9:15
https://www.cnbc.com/video/2019/07/03/canopy-growths-co-ceo-speaks-out-on-being-terminated-from-the-company.html
Dixie Brands Announces Plan to Enter Oklahoma Cannabis Market
https://dixieelixirs.com/press-release-new/?id=122516
Dixie's portfolio includes more than 100 cannabis-infused products spanning 15 product categories
Agreement with Globus Holdings will see products manufactured and distributed in Oklahoma beginning in Fall 2019
Approximately 130,000 medical marijuana patients in Oklahoma
Second new U.S. state Dixie has entered in 2019 out of target of four-to-six
DENVER, June 11, 2019 /CNW/ - Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods ("CPG") companies, today announced that it is entering the Oklahoma medical-use cannabis market through a manufacturing, distribution and licensing agreement the Company has signed with Globus Holdings ("Globus"). Oklahoma will become the sixth state in Dixie's growing U.S. footprint.
Pursuant to the agreements, Dixie will work in conjunction with Globus to use Dixie's intellectual property, including its proprietary formulations and preparation methods as well as the associated trademarks, in the State of Oklahoma. Globus' manufacturing facility in Tulsa will make use of Dixie's proprietary formulations and proven "GMP" (good manufacturing practices) and quality control procedures. Initial products including gummies, mints, pills, vaporizers, and drinks are expected to be available beginning in the Fall of this year.
"We continue to execute on our stated priorities for 2019, and expanding into new U.S. states is at the top of that list," said Chuck Smith, President and CEO, Dixie Brands. "We are very excited to introduce Dixie products to Oklahoma. The state has embraced legal cannabis over the past year and we anticipate that our relatively early entry into the market will help establish Dixie as one of the top-selling brands."
Oklahoma has proceeded quickly to license medical marijuana patients and industry participants since voters approved medical use through a June 2018 ballot question. According to the Oklahoma Medical Marijuana Authority, the state has approved 129,000 patients, as well as growers, processors and nearly 1,500 dispensaries. Based on recent reports from the Oklahoma Tax Commission, cannabis sales in Oklahoma exceeded $23 million in May 2019, and have been growing significantly from month to month as industry participants continue to ramp their operations.
A highly competitive environment is well suited to Dixie's strengths as an experienced cannabis CPG company with one of the industry's broadest product portfolios. A key success factor will be the ability to secure shelf space in dispensaries across the state. The Company expects that its proven approach to distribution, as well as Globus' roots and relationships in Oklahoma, will be instrumental in building statewide awareness and selling products at the dispensary level.
"Our team is extremely selective about who we partner with, and we are excited to bring quality Dixie products to Oklahoma's medical marijuana patients," said Heather Fry, Oklahoma spokesperson for Globus Holdings. "Globus is building a presence in multiple markets and we look forward to expanding our relationship with Dixie as additional states introduce medical and recreational marijuana sales."
They set up operations in China in an effort to be closer to the source. It was a good strategy, just sucks that the country they branched out to is in a trade war with idiot president who wants to be king. Also their accounting issues are doing them in.
yeah watch, we'll see another insider sale executed today by Steinberg smh.
Hey Hunchback, that agreement with TGS is for consulting on oils, derivative products and branding not a US distribution. OGI paid TGS in shares for their services. TGS most likely was very influential on OGI's recent 15mm expenditure for their edibles facility. It's illegal to ship products into the US. The only company that was able to do this so far was Tilray, for some research study at one of the universities in California. They got some kinda special permission to do so.
https://www.organigram.ca/latest/exclusive-partnership-for-oils-extracts-and-edibles-announced/
ORGANIGRAM ENTERS EXCLUSIVE PARTNERSHIP FOR OILS, EXTRACTS AND EDIBLES
Moncton, New Brunswick, September 1, 2016 – OrganiGram Holdings Inc. (TSX-V: OGI, OTCQB:
OGRMF) (the “Company” or “OrganiGram”) is pleased to announce it has entered into an
exclusive product development and distribution agreement with TGS International, LLC (“TGS
International”). The agreement will provide for consulting services related to the development
and operation of a commercial scale cannabis extracts production and processing facility, as well
as the exclusive licensing in Canada of over 225 unique cannabis products.
TGS International is an affiliate of The Green Solution, LLC (“TGS”), a vertically-integrated
cannabis company which owns and operates over 300,000 square feet of state licensed and
regulated production, processing, and manufacturing facilities as well as 11 medicinal and/or
adult-use retail locations in the state of Colorado, with three additional locations set to open by
the end of 2016. TGS has commercially developed an extensive line of cannabis extract and
derivative products by using multiple extraction methodologies that are streamlined with
standardized operating procedures and supported through proprietary software and security
systems.
“TGS has distinguished itself as a leader in the Colorado medical and adult-use cannabis markets
in terms of their sales, product quality, and reliability. Their award winning proprietary brands,
The Green Solution™ and NectarBee™ have generated well over US$100MM in cumulative sales
through their affiliated Colorado operations, including over US$43MM in 2015 alone” says Denis
Arsenault, Chief Executive Officer of the Company.
“OrganiGram has worked tirelessly towards the development and communication of a clear
business development strategy for our company and our shareholders. Today’s announcement
represents the culmination of that process for our commercial extracts strategy. OrganiGram has
now raised the necessary capital, secured the required real estate, and has selected the ideal
strategic partner to position OrganiGram as a major force in the emerging oils and edibles
market,” says Arsenault.
Eric Speidell, Co-Chief Executive Officer of TGS states “TGS is very excited to enter the Canadian
market and to partner with one of the industry’s leading licensed producers. Over the past six
years, we have proactively invested significant resources into the standardization, quality, and
reliability of our processes and products. We are very proud of the success we have achieved to
date in Colorado. Our brands and leadership have been recognized across the United States, with
TGS franchises already established in multiple states. With this transaction, we are eager to
embark on our international expansion with OrganiGram.”
Pursuant to the agreement between the Company and TGS, and subject to the approval of the
TSX Venture Exchange (the "TSXV") and other regulatory approval as may be required, the
Company shall issue 437,957 common shares to TGS at a price of $1.37 per share, payable after
certain calendar and operational milestones, and will provide additional cash consideration to
TGS, by way of a royalty, during the term of the Agreement. Additionally, TGS shall be issued
stock options in accordance with a 36-month vesting schedule.
For further information:
OrganiGram Holdings Inc.
Giselle Doiron
Director of Investor and Media Relations
(506) 801-8986
www.organigram.ca
yeah no, I don't see that happening.
Dixie Brands Secures Alaska Distribution for its Aceso Hemp Subsidiary Through New Agreement With Bill's Distributing
https://dixieelixirs.com/press-release-new/?id=122515
Aceso targeting significant expansion of its brick and mortar distribution channels in 2019
DENVER, June 6, 2019 /CNW/ - Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods ("CPG") companies, today announced that its Aceso Hemp subsidiary has signed a distribution agreement with Alaska's Bill's Distributing ("Bill's"). Pursuant to the agreement, Bill's will begin marketing Aceso's line of cannabidiol (CBD)-infused powder sachets, tincture sprays and dissolvable tablets to its retail customers starting next week.
Bill's is one of the largest Alaskan-owned food and beverage wholesalers and distributors. Founded over 30 years ago and still family-owned, Bill's reaches more than 1,100 accounts including both local and national retailers throughout the state.
"We are very pleased to welcome Bill's as our distribution partner in Alaska. With their extensive network and reputation in the state, they will be excellent ambassadors for Aceso products," said Hilal Tabsh, Vice President of Marketing and Distribution at Aceso. "We expect this to be the first of several new distribution agreements we finalize in the coming months, based on our ongoing discussions with a range of prospective partners throughout the USA."
"We pride ourselves on bringing new and innovative products to our customers in Alaska, and Aceso Hemp is the first CBD line we have added to our catalogue," said Mike Webster, General Manager, Bill's Distributing. "We have had an opportunity to evaluate a number of CBD products, and we believe Aceso is a great choice because it offers consumers a unique range of delivery options to enjoy the calming, soothing or wellness benefits of CBD."
Dixie's top strategic priority for both Aceso and the Company's pet wellness subsidiary, Therabis LLC, is to expand the distribution channels. For its two CBD brands combined, Dixie is targeting availability in a total of 5,000 brick and mortar locations by the end of 2019.
As a hemp-based consumer products company, Aceso is subject to a different regulatory framework than Dixie's THC-infused brands. Mainstream retailers are becoming increasingly open to carrying CBD-infused products, with some moving into this market more quickly than others. Aceso is seeking to build a network of local, regional and national distributors to complement its online channel, www.myaceso.com.
ABOUT ACESO HEMP
Aceso Hemp is the next generation in hemp, pairing plant science with food science. Offering a growing line of indication-specific, hemp-derived supplements for promoting optimal health, Aceso Hemp was one of the first entrants in the category and brings a deep understanding of the industry's complex regulatory structure and expertise in the production of safe, effective and compliant products that can be sold across the United States. Aceso Hemp's scientists have studied, tested and perfected phyto-nutrient ratios that unlock the powers of hemp, resulting in sophisticated formulas that are easy for the body to absorb and activate. To find out more about Aceso Hemp's innovative products, visit www.acesohemp.com/.
ABOUT DIXIE BRANDS, INC
Dixie Brands Inc., through its licensed partners, has been formulating award-winning THC and CBD-infused products since 2009. Currently operating in five U.S. states, the Company is expecting to double its manufacturing and distribution capabilities in 2019 in the U.S. as well as expand internationally, including Canada and Latin America. Dixie leads the global industry in the development, packaging design, product innovation and quality control for the commercial production of cannabis infused products. While the Company started with a single flagship product, the Dixie Elixir (a THC-infused soda), it is now one of the industry's most recognized consumer brands, expanding to over 100 products across more than 15 different product categories representing the industry's finest edibles, tinctures, topicals and connoisseur grade extractions, as well as world-class CBD-infused wellness products and pet dietary supplements. Dixie's executive team has been instrumental in the formation of the marijuana industry for recreational and medicinal use, serving as founding members on several national regulatory and business-oriented industry organizations. To find out more about Dixie's innovative products, or about how Dixie is building the future of cannabis, visit www.dixiebrands.com.
SOURCE Dixie Brands, Inc.
Yeah I just read thru that press release this morning myself. From VP at a huge global brand to CFO at a small one with future growth. Give it some time for people to realize it.
Therabis Hemp-Based Pet Supplement Soft Chews Now Available to Veterinarians Through Distribution Agreement with Vedco
https://dixieelixirs.com/press-release-new/?id=122512
-Opens important new distribution channel for Therabis products
-Vedco is a national supplier to many of the largest veterinary distributors in the U.S.
-Introducing increased strength "Therabis Veterinarian Formula" versions of existing products
DENVER,CO, May 30, 2019 /CNW/ - Therabis LLC ("Therabis"), a leading pet wellness company, has announced that Vedco, Inc. will begin distributing its full-spectrum hemp-based, highly-palatable, soft-chew supplements to their network of distributors who are the leading suppliers to veterinary clinics across the USA. Therabis is a subsidiary of Dixie Brands Inc. ("Dixie") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods (CPG) companies.
Vedco is a logistics, sales and marketing provider of Animal Health products that is owned by many of the leading distributors in the US Animal Health Market and it creates a more efficient procurement infrastructure exclusively focused on servicing the veterinary channel. With a combined network of 98 distributor locations nationwide, Vedco is one of the country's largest veterinary suppliers with a client list that includes more than 30,000 clinics.
"We are pleased to have been selected by Vedco as the first full-spectrum soft chew hemp supplier that they are offering to their distribution network," said Bob Rubin, President of Therabis. "Many pet owners rely on their veterinarian to recommend a product that best addresses their pet's specific ailment. We expect that our participation in that channel will help strengthen our leadership position both among veterinary patients and retail consumers in general."
Therabis will introduce a series of new formulations of its products called "Therabis Veterinarian Formula," in recognition of the fact that pets requiring veterinary care are more likely to require stronger versions. These products will include higher concentrations of cannabinoids and other approved natural ingredients for more targeted therapeutic value in comparison to the formulations currently sold through retail and online channels. Therabis Veterinarian Formula versions will initially be available for the canine "Mobility" supplement, as well as both the canine and feline versions of the "Calming" stress relief products. Therabis will soon add other indication-specific veterinary formulas.
"We are very excited about a full-spectrum, plant-based nutraceutical derived from hemp in a soft chew dosage form that veterinary hospitals can offer to their clients for overall pet wellness," said Craig Campbell, General Manager of Vedco, Inc. "We have looked closely at Therabis products and we are pleased to showcase them to our full national distribution network."
Veterinarians are highly influential in recommending therapeutic products for pet owners. According to Packaged Facts, veterinarians are the most important source of pet care information for 70% of dog and cat owners, far surpassing any other source and more than doubling online research. The American Veterinary Medical Association recognizes nutraceutical therapy as important as part of their guidelines related to complimentary or alternative medicine. The nutraceutical market has been estimated by Grand View Research to exceed $2 billion in the U.S.
The multi-year distribution agreement provides Vedco with exclusive rights to the veterinary channel for Therabis Veterinarian Formula. Therabis expects to begin shipping its enhanced formulation products to Vedco in June, with product widely available in clinics beginning in July.
Dixie Brands Comments on Passage of Colorado Bill HB19-1090 and Potential Impact on the Company
https://dixieelixirs.com/press-release-new/?id=122511
DENVER, CO, May 29, 2019 /CNW/ - Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods ("CPG") companies, today issued a statement about the passage into law of Colorado bill HB19-1090, a bipartisan bill providing greater investment flexibility in marijuana businesses.
Dixie Brands supports the legislation and applauds the Colorado legislature and Governor Jared Polis for signing it into law. The Company also intends to explore opportunities to expand investment in Denver-based cannabis operations, once the law is fully in place.
"This is a defining moment for Colorado's cannabis industry and a tremendous boost to Colorado's economy," said Chuck Smith, CEO of Dixie Brands. "By permitting access to capital through private and public investments with appropriate guardrails, this bill ensures that Colorado businesses keep their headquarters in the state, remain competitive, invest in research and development and other innovation and continue to contribute significant tax dollars to the state."
Dixie and other publicly listed companies in Colorado have not been permitted to own cannabis production or manufacturing operations. Dixie owns the intellectual property and licensing rights associated with its portfolio of cannabis-infused products. The THC-infused products are manufactured and distributed in Colorado by a private state-licensed company controlled by an investor and Board Member of Dixie Brands. With the passage of HB19-1090, Dixie intends to explore a transaction to acquire and operate the licensed manufacturer. Any such transaction would be subject to successfully completing a state licensing application, as well as review by an independent committee of Dixie's Board.
In the event a transaction is completed, it would create expanded opportunities for Dixie to invest in its Colorado production operations as the Company continues to grow its business. Ownership of the manufacturing operation would result in increased revenue and gross margin for Dixie.
Chuck Smith is actively involved in the state's cannabis industry and has worked with other business leaders for the passage of HB19-1090. He currently sits as Board President of Colorado Leads, a pro-business alliance of more than 50 Colorado companies created to help educate the general public about the economic and community benefits of a safe, regulated medical and recreational cannabis industry.
Clinical Trial at the University of Pennsylvania's School of Veterinary Medicine to Study Effectiveness of Cannabinoids to Treat Dogs for Joint Immobility Using Dixie Brands' Therabis Formulation
https://dixieelixirs.com/press-release-new/?id=122510
-First major double-blind trial of cannabidiol (CBD) remedies for dogs
-Therabis "Mobility" to be studied for its effectiveness in treating osteoarthritic pain
-Researchers seeking treatment options for the joint mobility issues affecting more than 50% of older dogs
-Led by one of the world's top veterinary schools with results to be published in academic journal
Dixie Brands Inc. ("Dixie" or "the Company") (CSE: DIXI.U), (OTC: DXBRF), (Frankfurt: 0QV), one of the cannabis industry's leading consumer packaged goods (CPG) companies, has announced that one of its canine supplement products will form the basis of a clinical trial by the Veterinary Clinical Investigations Center at the University of Pennsylvania School of Veterinary Medicine (Penn Vet). The trial will evaluate the effectiveness of "Mobility," a hemp-based natural supplement developed by Dixie subsidiary Therabis, to relieve symptoms of joint immobility in dogs.
Penn Vet's clinical trial will be led by principal investigator Dr. Kimberly Agnello. Dogs known to be suffering from inflammation secondary to osteoarthritis will be studied to determine whether those who receive the Therabis supplement achieve better outcomes than untreated dogs. One group of dogs will receive the formula for a proprietary veterinarian-specific formula Therabis product; a second group will receive Cannabidiol alone which previous studies have shown may have benefit in osteoarthritic dogs; a control group will receive a placebo. Study designers are targeting inclusion of up to 20 dogs in each group. The design of this study will provide valuable data defining the synergistic potential of the additional ingredients in the Therabis formula.
The clinical trial is among the first scientific studies of cannabinoid therapy for pets, and is believed to be the largest-scale trial commenced to date. It is also believed to be the first major double-blind trial, meaning neither the researchers nor the dog owners are aware of which subjects are receiving the placebo or the other two interventions. The study design incorporates physical tests to establish quantitative measures of effectiveness. In studying dogs' front leg joints rather than the more commonly studied hips, the trial's results can be readily extrapolated into other joints since the inflammatory process is equivalent. Results are anticipated within approximately 12 months, and are expected to be published in a veterinary medicine journal.
"We are honored to have a Therabis product selected by the world-renowned experts at Penn Vet for their first major study of the effects of natural hemp oil to reduce joint pain in dogs," said Dr. Stephen M. Katz, co-founder of Therabis. "Our experience in my clinic has shown that cannabidiol (CBD) is an effective treatment in reducing inflammatory response. We have a passion for improving dogs' quality of life, and we look forward to learning all we can about therapeutic methods to achieve this."
As dogs age, discomfort from osteoarthritis, back issues and joint immobility can become increasingly common. Problems often become apparent over time as dogs show reduced interest or ability to perform common tasks like walking, jumping or climbing stairs. Larger and heavier breeds can be especially prone to these issues. It is estimated that more than half of dogs older than seven years suffer from arthritis.
Market researcher Packaged Facts has estimated that retail sales of pet supplements and nutraceuticals totaled $1.6 billion in the U.S. in 2017. Brightfield Group has estimated that CBD-infused pet products are a currently a $199 million business and expected to grow to $1.16 billion by 2022.
Therabis Veterinarian Formula supplement Mobility, which the company plans to offer exclusively through veterinary clinics, is an enhanced formulation of the current commercially available supplement designed to promote healthy joints in dogs called Therabis Up and Moving. Available in single-serving sachets as well as in a chewable format, its core formula includes hemp oil (with naturally-occurring CBD), green lipped mussel, Vitamin C, Chromium, and Vitamin E. Up and Moving was developed and refined for more than 10 years by veterinarian and Therabis co-founder Dr. Stephen M. Katz, and has been used in his clinic throughout that time with encouraging results among his canine patients. Therabis also offers other doctor-formulated indication-specific supplements targeting skin irritation (Stop the Itch) and anxiety (Calm and Quiet).
Intraday charts?...Really?
Why didn't you sell?
I'm still up 13%
Thanks for this! Now Cronos Device Labs actually makes sense to me.
Dixie Brands: Think Twice Before Choosing Your Dance Partner
https://outline.com/YcCtZS
CORNERSTONE INVESTMENTS FEBRUARY 14, 2019
Summary
Dixie Brands focuses on developing IP around brands, products, and packaging and licensing agreements with joint venture partners.
The business model places a huge emphasis on its selection of partners, and so far, its track record has been mixed with Auxly and Khiron.
We are Neutral as Dixie's valuable assets and modest market cap are offset by uncertainty over its future choice of partners in new markets.
Cannabis, Marijuana, Hemp, Cornerstone Investments
Cannabis, Marijuana, Hemp, Cornerstone Investments
Welcome to our Discover Cannabis series, where we publish in-depth research to introduce new cannabis companies to our coverage.
Company Overview
Dixie Brands (OTC:DXBRF) is a U.S.-based company focused on developing products and brands in the cannabis market. The company manufactures and distributes its own products but largely rely on licensing agreements with partners in various markets for its expansion. The company developed well-known CPG brands and has sought to license its intellectual properties to other companies in exchange for financial benefits and royalties on sales. We think the company has made some good deals, but it has also made questionable choices when it was choosing partners. The company has built a portfolio of brands focusing on the three markets: human THC, human CBD, and pets. The company has distinctive brands for each of the segment and the focus on the pets industry is unique and interesting among the companies we cover.
(Investor Presentation)
Dixie currently operates in four states including the two of the largest markets California and Colorado, mostly through joint ventures:
Colorado: Sold an exclusive license agreement to Left Bank to use Dixie brands and formulations. Left Bank is the largest manufacturer of Dixie products in the U.S. at the moment.
Nevada: Owns 70% of the joint venture with SSW that manufactures and distributes Dixie-branded products. Dixie receives 73.5% of the gross revenue and has licensed its brands and packaging to its JV partner. The joint venture was formed in 2016 and lasts 5 years and can be renewed for two additional five-year terms.
California: Entered into a number of license agreements with licensed producers to manufacture and distribute Dixie products.
Maryland: Signed an exclusive license agreement with Curio to manufacture and distribute Dixie-branded products.
Canada and Mexico: Signed an exclusive 10-year license deal with Auxly (OTCQX:CBWTF) to sell Dixie-branded products in Canada and Mexico. We rate Auxly underperform and recently discussed the stock in "Why We Were Right About This Underperformer". As a result, we think the partnership has turned out to be underwhelming for Dixie as Auxly's slow progress is costing Dixie the opportunity to launch in Canada. More importantly, Dixie has missed the initial months of legalization which are especially important.
Australia: Markets pet cannabis products through a related party.
(Investor Presentation)
Latin America: On January 30, 2019, Dixie announced a 50/50 joint venture with Khiron Life Sciences (OTCQB:KHRNF) to develop cannabis products in Latin America. We think the deal represents a great decision by Dixie to choose a proven management team and open up a large addressable market. Dixie will also manufacture and distribute Khiron's CBD-based cosmeceutical products in the U.S.
Choosing The Wrong Partner
Overall, we think Dixie's strategy of relying on licensing agreements to establish a market presence in all its markets has its pros and cons. On the positive side, Dixie's strategy is low-cost and fast to deploy as its joint ventures partners provide manufacturing and retail strategies while Dixie provides packaging, branding, formulations, and other IP assets. However, this strategy places a heavy emphasis on Dixie's ability to choose the right partner, especially when it grants an exclusive license for certain state or countries. In the case of its exclusive licensing agreement with Auxly, we think the company could have done a better job identifying partners as the latter has clearly struggled to get its Canadian business started. The fact that Auxly hasn't been able to launch products means that Dixie has missed the important initial window to establish customer loyalty and brand awareness. As Auxly remains in limbo with its Canadian business, we think Dixie should try to find ways to break from its exclusive licensing deal in order to find a better partner. More importantly, Dixie has lost its ability to partner with Khiron in Mexico due to its deal with Auxly, a terrible outcome in our view as we think Khiron represents a much better partner due to their track record of execution.
Performance Since RTO
Dixie completed its RTO and began trading on the CSE on November 29, 2018. Before that, the company raised US$25 million in October via a private placement at a price of US$0.22 or ~C$0.29 per share. The stock has initially traded down significantly post RTO after getting caught in a sector-wide selloff, but the stock has rallied and recovered most of the losses.
(Source: TSX)
Dixie has 124.8 million shares outstanding and 46 million options and warrants with exercise prices ranging from C$0.08 to C$1.87. The basic market value is C$100 million which is still quite small within the U.S. cannabis sector. Other competitors with similar sizes include Golden Leaf (OTCQB:GLDFF), Terra Tech (OTCQX:TRTC), 1933 Industries (OTCQB:TGIFF), and Body and Mind (OTCPK:BMMJ). The company reported US$2.4 million of sales for the three months ended on September 30, 2018, and had US$43 million of cash which includes US$25 million from the October private placement round. The company appears to have ample liquidity for the foreseeable future.
Conclusion
Dixie Brands is an interesting and unique U.S. cannabis play that focuses on developing brands and product formulations which are licensed to joint venture partners for production and distribution in select markets. The company remains in the early days of its expansion plans with a presence in only four U.S. states and deals with parties in Canada, Australia, and most recently Latin America. We think Dixie's future success depends on its ability to partner with capable partners and so far, it has done a mixed job. Auxly has proven to be a bad choice for the Canadian and Mexican market, but the recent deal with Khiron to enter Latin America looks more promising, in our view. We rate the stock Neutral/Speculative as it is difficult to assess its future prospects given its reliance on partners and we don't have the confidence that its future joint ventures will perform to the highest standards.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
You're at break even. There ya go, here's your chance. Now time to sell and make some profit? I don't wanna hear any complaints after this lol.
Lol yeah the name is kinda dumb, but do some DD besides daily chart analysis and watch a short video of the CEO and hear him pronounce it.
And don't knock the mixable powders. Fitness enthusiasts like me are always buying products like this and love the flexibility of mixing it into any drink possible(water for me)! I'm about to buy a few more boxes of Emergen-c today actually. I carry about two powder packets in my bag everyday.
I don't mind the technical chart analysis but no need to be so negative on everything. This will be over a dollar soon and you can sell.
The new product is already on Amazon
ACESO SOOTHE Herbal Supplement 5-Pack Drink Mix, 50 MG Full-Spectrum Organic ...
https://www.amazon.com/dp/B07RD8DTRD/ref=cm_sw_r_tw_dp_U_x_mM.5Cb59C3DH3
ACESO Soothe Herbal Supplement 30-Pack Drink Mix, 300 MG Full-Spectrum Organi...
https://www.amazon.com/dp/B07RH8VZW7/ref=cm_sw_r_tw_dp_U_x_dO.5Cb18F2QS5
LGC CAPITAL - New management
https://ceo.ca/@nasdaq/lgc-capital-announces-new-chapter-in-its-corporate
by @nasdaq on 3 Apr 2019, 08:53
LGC CAPITAL Announces new chapter in its corporate evolution with the addition of a highly experienced global Executive Team bringing on over 90 years of combined experience from British American Tobacco and Monsanto
LGC CAPITAL announces four new additions to the executive team. LGC Chief Operating Officer, Remy di Meglio, together with both John McMullen and Mazen Haddad, has assembled this team bringing over 90 years' experience with British American Tobacco and Monsanto to LGC. To lead the team, Mazen Haddad will remain as Co-Chairman and take on the additional role of CEO. John McMullen will assume the role as President and Mark Shinners of Arlington Capital will take on the role of CFO. We would like to thank the outgoing CFO Anthony Samaha for his years of service to LGC helping to grow LGC.
Mazen Haddad stated, “The new additions to our team at LGC have already begun to work on integrating LGC’s investments to extract the economies of scale due to geographic diversity and mobilizing a full product range to serve our customers throughout Europe, Canada and Australia. This team brings over 90 years of experience from leading global companies like British American Tobacco and Monsanto. With a keen understanding of how to grow and handle global supply chains and distribution on a large scale, brand building and consumer intelligence, regulatory legislation and financial governance, they will bring the discipline and rigor required to build LGC into a leading player in the cannabis market. John McMullen will move into the role of President focusing his efforts on various part of LGC’s corporate development and working with our banking partners and developing LGC’s public investor base.”
Richard Widmann 51, EVP Commercial, joins LGC with over 15 years of experience across 4 continents with British American Tobacco (BAT) business operations in Europe and South Africa and Americas most recently serving as Area Managing Director South Central Europe, a top 5 market for BAT. In this role, Richard achieved in excess of 250 million Euros in profit, managed major acquisitions in Central Europe and realized significant brand growth in South Africa. Richard will lead the commercial strategy and build-up of a pan European Hemp/Cannabis enterprise. He will also provide operational direction and will provide and oversight to LGC’s partners. Currently he has been assigned to further develop Easyjoint’s distribution and corporate development to stay on track for its growth plans.
Mervyn Koenen 44, VP Commercial Finance, brings 18 years of managing commercial finance, internal audit and strategic planning, supporting leadership teams to achieve operational targets and managing strategic agendas. His experience includes international, strategic and multi-disciplinary projects resulting in delivering sustainable profit growth. Mervyn will drive the financial and strategic agenda for LGC’s European investees in the expanding market for legal cannabis and CBD derivative products. He will support LGC partners in building sustainable and reliable financial forecasts, lead corporate governance, with procedural performance tracking, and build accounting and supply chain systems to assist subsidiaries with growth demands.
Jeanne van Wyk 50, VP Communications, brings 26 years of global marketing experience on both client and agency side, most recently as Strategic Planning Director for the WPP advertising group servicing British American Tobacco across Europe. Jeanne has a background in legal studies followed by a successful career in journalism, notably with CNN in Africa & Global for 5 years. Jeanne will design and manage the strategic development and positioning of our brand portfolios, marketing, communications and consumer insights for LGC starting with EasyJoint.
Alistair Hide 51, VP Corporate and Regulatory Affairs, joins LGC with over 25 years of business experience and corporate regulatory affairs. For the last 5 years, he held the position of Corporate Affairs Director, Europe, Middle East, and Africa with Monsanto International. This role encompassed government affairs, communications and wider stakeholder relations for Monsanto’s agricultural businesses. He also brings over 18 years of experience with BAT, most recently as Head of Corporate and Regulatory Affairs, Western Europe Region. Alistair will be navigating the ever changing regulations of this new and evolving industry, allowing LGC to understand the legal requirements and directing LGC to ensure its products are compliant with all regulations in the various markets. In his corporate communications capacity, he will work with regulators to develop a sustainable industry framework.
Mark Shinners, 41, Chief Financial Officer, joins LGC with over 17 year’s experience in various senior operational and financial advisory roles spanning across a number of industry sectors including IT, construction, renewable energy and manufacturing. Having trained as a chartered accountant at PwC, Mark went on to hold leadership positions in assurance, corporate finance and financial advisory, providing financial, commercial and strategic advice to multinational companies. Mark served as financial director at Hewlett Packard (Services) in the Middle East and CFO at Chinook Urban Mining Limited, a UK based renewable energy development company. Mark is currently a Director at Arlington Capital. Mark is a Chartered Accountant (ACA), has a Bachelor of Business Studies degree (BBS), a Masters in Accounting & Finance (Macc), a Master of Business Administration (MBA) and is a Chartered Waste Manager.
Mazen Haddad 46, CEO, brings over 20 years of experience building companies from the early stage, most of his experience has been in the venture capital space ranging from technology companies both in the US and Canada to real estate and mining. Furthermore, his family business relationships have brought the association of former BAT executives to LGC.
“At the request of our new investors, Arlington Capital, I am proud to take on this new role of direct management of LGC now that we have acquired our core positions in the companies such as Trichomed, Global Canna Labs, Evolution and Little Green Pharma, LGC has formidable growing capacity and a diversity of strains and licensed operators that few other companies have. Furthermore, the associations with Easyjoint and Viridi bring both a wide ranging catalog of finished products from consumables to cosmetics and the serious ability to distribute such products through Easyjoint’s retail and online presence. We will continue to seek companies with finished products that give consumers access to wellness products they demand. It is my sincere belief that both with Arlington Capital`s support and our newly added operating team LGC will be able to accelerate the development of our portfolio of companies and integrate their efforts to achieve their full potential.”
About LGC Capital:
Through its partners and assuming pending transactions under review by the TSXV are approved, LGC presently will have interests in over 450,000 square feet of planted cannabis in Jamaica, Switzerland, Italy, and Australia. That is expected to increase to over 2,100,000 square feet by 2021, as its portfolio companies execute their expansion plans, in addition to the anticipated licensing of Tricho-Med’s operations in Quebec, Canada.
LGC partners currently sell cannabis products in over 1,000 points of sale across Switzerland and Italy under the ONE Premium Cannabis and EasyJoint brands as well as medical cannabis oils in Australia under the Little Green Pharma brand. LGC’s partners’ branded products are available in a variety of formats including dry cannabis flower, tinctures, oils, seeds, and beverages.
For further information please contact:
President, John McMullen, +1-416-803-0698, john@lgc-capital.com
Investor Relations, Dave Burwell, +1-403-221-0915, dave@howardgroupinc.com
LGC Capital Drives Deeper into Europe with Hemp Investment
https://smallcappower.com/analyst-articles/lgc-capital-cannabis-hemp-stocks/
Equity Research Healthcare – Cannabis | May 22, 2019
Patrick Smith | Analyst | Ubika Research Patrick@UbikaResearch.com | (647) 444-5506
Christopher, Bednarz MBA | Associate | Chris.B@UbikaResearch.com | (416) 558-5548
John Brooker | Associate | john@ubikaresearch.com | (905) 616-6185
LGC Capital Ltd. (TSXV:LG) is set to acquire a 35% equity stake in Freia Farmaceutici Srl, a hemp-focused Italian Pharmaceutical company
ITALY UPDATE
Freia Farmaceutici’s competitive advantage provides further upside in Europe. On May 16, 2019, LGC Capital entered into an investment agreement to acquire a 35% equity interest in Freia Farmaceutici Srl, a hemp-focused Italian Pharmaceutical company for $4.8M. This payment would be made in three installments over the course of 10 months.
Freia is one of the few hemp-based pharmaceutical companies with products approved by the European Food Safety Authority (EFSA). Freia has a first-mover advantage, as it is the only company in Italy and one of the few in Europe to have developed and marketed hemp-based pharmaceutical products authorized by EFSA. For reference, EFSA is of similar caliber to the FDA, but focused in Europe. EFSA is funded by the EU and operates independently of European legislation.
Freia Farmaceutici has a recent history of strong financial performance. In 2017, Freia achieved sales of $740K and EBITDA of $265K, representing a 36% EBITDA margin. In 2018, with the additional approval of new drugs in Freia’s portfolio, sales levels increased by 74% to $1.3M and EBITDA grew to $280K. In 2019E, Freia is expected to focus on expanding its business nationally and internationally through increased sales of its existing drug pipeline, and the roll out of an additional eight authorized drugs into the market.
Freia Farmaceutici currently owns 2 patents, has filed 5 patent applications, and is in the process of completing 6 additional applications. Freia has 6 registered pharmaceutical drug products for patients on chemotherapy treatment, atopic dermatitis, and from dysmetabolism. Freia already has 6 products authorized in the nutrition and topical fields. Another 8 products that have been authorized in the gynecological field are expected to be launched in 2019E. Lastly, 9 more products are awaiting authorization. Of note, Freia has a variety of other research and development projects ongoing in the areas of gastroenterology, nutrition, and multiple sclerosis.
LGC CAPITAL LTD. TSXV:LG
(Currency is CAD$ & estimates are attributable, unless noted otherwise)
Last Price $0.10
Target Price$0.20
Potential Return100%
Net Asset Value Per Share $0.23
52 Week Low / High$0.08 / $0.25
Average Daily Volume (30-Day)458K
CAPITALIZATION Basic Diluted
Shares Outstanding (M) 416.2 610.3
Market Capitalization ($M) $41.6
Enterprise Value ($M) $41.0
Last Reported Cash Balance ($M) $2.9
Last Reported Total Debt ($M) $2.3
LGC CAPITAL OPERATIONS 2019E 2020E 2021E
Flower Produced (kg) - 100% 7,300 23,600 39,500
Revenue ($M) $12.7 $35.8 $61.7
Cash Costs ($ per gram) $1.03 $1.08 $1.02
AICC ($ per gram) $2.13 $2.19 $1.61
EBITDA ($M) -$0.8 $9.9 $27.3
FCF ($M) -$12.8 -$12.9 $3.2
Total CAPEX ($M) $8.9 $19.0 $14.6
CFPS $0.00 $0.01 $0.03
Cash At Year End ($M) $1.9 $1.8 $1.9
Debt At Year End ($M) $2.5 $6.0 $6.0
Relative Valuation P/NAV EV/EBITDA
2019E 2020E
LGC Capital Ltd 0.4x nm 4.1x
Cannabis Holdings Companies n/a 30.1x 10.8x
Gold and Oil Royalty Companies 1.3x 10.1x 8.9x
MAJOR SHAREHOLDERS
Management & Insiders (21.3%)
DISCLOSURE CODE:
Disclosure: None (See back page for further details)
ATTRIBUTABLE REVENUE & EBITDA FORECAST
Valuation
Trades at a discount to peers. We believe this acquisition could provide significant synergies for LGC within Europe. Recall, LGC has a 47% interest in EasyJoint, one of Italy’s largest, vertically-integrated legal cannabis producer and a leader in the sale of 40 branded products ranging from high CBD flower to edibles. This would be an ideal distributor of Freia’s products. In terms of estimates, we plan to update once the investment in Freia closes. LGC currently trades at 4.1x our F2020E EBITDA estimate, a discount to cannabis holdings companies and gold and oil royalty companies, which trade at an average of 10.1x and 8.9x, respectively. We believe this gap should close as LGC begins to make material cash flow.
LGC Capital Announces Results of Annual Meeting, Appointment of New Chairman and Approval of Name Change to Elixxer Ltd.
https://howardgroupinc.com/2019/05/lgc-capital-announces-results-of-annual-meeting-appointment-of-new-chairman-and-approval-of-name-change-to-elixxer-ltd/
MONTRÉAL, May 23, 2019 – LGC Capital Ltd. (TSXV: LG) (OTCQB: LGGCF) (“LGC” or the “Corporation”) is pleased to announce the results of its annual and special meeting of shareholders (the “Meeting”) held yesterday in Montreal, Quebec. At the Meeting, all five of the nominees listed in the Corporation’s management information circular dated April 17, 2019 were elected as directors, all with a vote of more than 92% of the shares voted in their favour. Accordingly, the directors of LGC for the ensuing year are Mohammed Ghafari, Mazen Haddad, Rafi Hazan, David Lenigas and Ferras Zalt.
At the Meeting, shareholders adopted a special resolution approving a change in the name of the Corporation to “Elixxer Ltd.” or such other name as the Corporation’s directors may determine. The special resolution was supported by 98.94% of the votes cast at the Meeting. The Corporation intends to proceed with the name change as expeditiously as possible.
Shareholders also adopted:
a special resolution approving the creation of an unlimited number of preferred shares in the capital stock of the Corporation, with a vote of 95.11% in favour said special resolution;
a resolution ratifying and confirming an amendment to the Corporation’s 2016 Stock Option Plan so as to increase the number of common shares that can be issued thereunder, with a vote of 95.05% in favour of said resolution; and
a resolution ratifying and confirming certain grants of stock options to three executive officers of the Corporation pursuant to the 2016 Stock Option Plan, with a vote of 94.23% of disinterested shareholders in favour of said resolution.
At the Meeting, shareholders also re-appointed Ernst & Young LLP, Chartered Accountants, as the Corporation’s auditor.
Immediately following the Meeting, the Corporation’s board of directors convened to appoint LGC’s executive officers for the ensuing year. The Corporation is pleased to announce that Mr. Ferras Zalt has been named as the new Chairman of the Corporation’s board of directors. Mr. Mazen Haddad was re-appointed as the Corporation’s Chief Executive Officer, Mr. Mark Shinners was re-appointed as the Corporation’s Chief Financial Officer, Mr. John McMullen was re-appointed as the Corporation’s President, Mr. Remy di Meglio was re-appointed as the Corporation’s Chief Operating Officer, and Mr. Michael Kozub was re-appointed as the Corporation’s Corporate Secretary.
LGC Capital announces that it has increased its ownership to 40.4% of Little Green Pharma in Australia
https://howardgroupinc.com/2019/05/lgc-capital-announces-that-it-has-increased-its-ownership-to-40-4-of-little-green-pharma-in-australia/
MONTRÉAL, May 22, 2019 – LGC Capital Ltd. (TSXV: LG) (OTCQB: LGGCF) (“LGC” or the “Corporation”) announces that after much negotiation, it has successfully acquired, from a non-executive founder, additional shares in Australia’s licensed medical cannabis producer Little Green Pharma (LGP) bringing its ownership from 14.1% up to 40.4%.
LGP was the first, and is currently the only, domestic cannabis company in Australia producing a locally grown medicinal cannabis medicine for patients. LGC believes the opportunity to increase its ownership in LGP creates significant value for its shareholders and enables the Corporation to further take part in the rapidly expanding Australian medical cannabis market.
Little Green Pharma has had over 400 patients approved in Australia, with new patients increasing exponentially month-over-month. The Australian industry represents one of the fastest growing international medical cannabis markets globally, with approximately 6,400 SAS B forms approved to the end of April 2019 of which 1,110 occurred in April alone. Prohibition Partners estimates that the Australian medical cannabis market could be worth US$2 billion by 2028 and US$8.7 billion if adult use was to become legal.
Little Green Pharma produces its products in compliance with Australia’s strict Therapeutic Goods Order 93 Standard for Medicinal Cannabis and is one of only a handful of companies with an EU GMP recognised medical cannabis facility.
Expansion plans for LGP‘s cultivation facility have been submitted to Australia’s Office of Drug Control to increase production capacity in order to supply the Company’s growing demand for its products in Australia as well as to export product via its new distribution agreements in Germany, the United Kingdom, Canada and New Zealand.
Mazen Haddad, CEO of LGC Capital, stated; “Little Green Pharma was one of our first investments and as its business and opportunities expanded, and the opportunity to increase our shareholding to over 40% is a significant move for the Company. To be the first in Australia to grow and produce a full line of Medical THC Cannabis products, in accordance with both Australian and European standards, represents a great opportunity for LGC and its global initiatives. We look forward to expanding Little Green Pharma‘s production capacity and help growing its reach throughout the globe.”
Terms of the transaction:
Subject to TSXV approval, LGC Capital will pay to the vendor of the shares, AUS$5.5M. Closing of this transaction is expected to be within 95 days of signing the agreement.
Statutory information: For the financial year end 30 June 2018, Little Green Pharma generated Revenue of AUS$8,337 and had a net loss for the period of AUS$3,757,810. This was first year that the company was operational as a legal cannabis business.
Altria bought shares privately recently
Altria $MO increased its stake in $CRON by 50,938 shares 🤔 pic.twitter.com/nJluanae5P
— XB (@xb0y) May 22, 2019
There's room for both sides of the argument. There's less than 200 posts on this board, so this is nothing. I got a guy on another board that's made 860+ negative toxic posts about the SAME stock EVERY day for the past year. He's basically been saying the same thing every time. I had to call him out on it the other day, it's sickening. That's what I call useless. Nowwhat's actually posting charts and analysis so I don't mind.
I'm in at .70 as a long hold so I'm fine with the channel and volume right now as I accumulate. Convos regarding Dixie's competition and the edible market are much welcomed!
...the ignore buttons a great thing
OGI closed at 6.49 the day they announced the NASDAQ application...I'm just sayin tho...
Ignored(along with two others on here). I just lurk this board but I'm tired lol. A straight year, 800+ negative posts all on the same stock, saying the same thing. There's alot of weedstocks on ihub that I've abandoned over the years but I try to make my case and then I leave. No point to come onto a board day after day for a year to "warn" people. It's obvious what the objective is. GLTA
Can anyone access this article from Cornerstone Investments on SA and copy/paste it here? Thanks
https://seekingalpha.com/article/4241154-dixie-brands-think-twice-choosing-dance-partner