The legal cannabis market is predicted to hit USD $146.4 billion globally by 2025, according to a report by Grand View Research. This rapid growth is propelled by increased cannabis legalization seen around the globe as well as the growing use of cannabis in several medical applications.
As far as the stock market is concerned, legal recreational cannabis will account for as much as 61% of the industry overall, with the other 39% going to medicinal cannabis as well as the black market. Despite this, many cannabis stocks have been able to make quite a name for themselves given the massive amount of momentum and propensity toward future growth that the cannabis industry has shown over the last few years.
Leafbuyer Technologies, Inc. (LBUY), a leading cannabis technology and marketing platform, announced the launch of its innovative delivery technology to complement its mobile application. This week a preliminary beta launch will begin to include that dispensaries in states such as California, Arizona, Nevada, and Washington are now able to add delivery to their list of offerings through Leafbuyer’s Greenlight mobile app.
“The addition of this new technology will allow us to monetize our consumer base through a fee generated from each transaction,” said Kurt Rossner, CEO. “We’ll be able to penetrate thousands of new dispensaries and delivery companies in legal markets by offering this delivery solution. Leafbuyer will not physically deliver the products, rather we will hand off the ‘last mile’ to our delivery and dispensary partners.”
Leafbuyer reported that its quarterly cash sales growth increased 36% year over year in the quarter ending March 31, 2019, attributing its growth to platform enhancements. The platform allows consumers to order cannabis products ahead, earn loyalty points, and cut the line to pick up and pay at numerous participating dispensaries, and now delivery. The company recently launched a Los Angeles satellite office, which will become the primary regional office for several Western states, allowing sales initiatives to be more heavily focused on newly legal Midwestern and Eastern states.
Aphria Inc. (APHA), a Canadian cannabis company, announced it has closed its private placement offering of $300 million of 5.25% convertible senior notes due 2024 and that initial purchasers fully exercised their option to buy up to an additional $50 million of notes, resulting in gross proceeds of $350 million. The company plans to use the net proceeds to support its international expansion initiatives, for future acquisitions as well as general corporate purposes.
This followed the news that its German subsidiary Aphria Deutschland GmbH has secured the previously announced license for the domestic cultivation of medical cannabis from the German Federal Institute for Drugs and Medical Devices and was granted a cultivation license for four of the nine total lots awarded.
“Aphria thanks the BfArM for their diligent examination and validation of our approach for domestic cultivation with this license,” said Hendrik Knopp, Managing Director of Aphria Germany. “Construction on our 8,000 square meter indoor cultivation facility is already underway and we anticipate it will be fully operational by Summer 2020. We are pleased to additionally support German patients in the upcoming months with high-quality imported cannabis flower and oils from Denmark and Canada.”
Aurora Cannabis Inc. (ACB), a world leading cannabis company, announced its contract with the German Federal Institute for Drugs and Medical Devices has been finalized allowing Aurora to begin construction on a new state of the art indoor cannabis production facility this May.
“We are thrilled with the positive outcome of the tender process, and excited to start construction on our latest production facility,” said Neil Belot, Chief Global BDO. “In addition to providing German medical patients with a local supply of high-quality, medical grade cannabis, this new facility will also bring additional new jobs to the German labour market. It’s a strong validation of our production and distribution standards to have been recognized as having the highest-rated overall concept out of 79 tender applications, and we look forward to continuing to increase availability of medical cannabis in this important market.”
This news followed the company entering a binding letter agreement with Hempco Food and Fiber Inc. (HEMP), a provider of hemp-based foods, fiber and nutraceuticals. The agreement entails that Aurora will acquire all of the issued and outstanding common shares, not already owned, of Hempco at$1.04 per share in common shares of Aurora, for a valuation of C$63.4 million.
Canopy Growth Corporation (CGC) (WEED), a world-leading diversified cannabis and hemp company, announced last week it would acquire US cannabis company Acreage Holdings, Inc. (ACRGF) in a $3.4 billion cash and stock deal that will close if and when cannabis production and sales are legal at the federal level in the US.
“Today we announce a complex transaction with a simple objective,” Co-Chief Executive Bruce Linton said. “Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally permissible pathway exists. By combining Acreage’s management team, licenses and assets with Canopy Growth’s intellectual property and brands, there will be tremendous value creation for both companies’ shareholders.”
Following the news of this potential deal, a GMP Securities’ analyst upgraded Canopy Growth from Hold to Buy with a price target raised from $65 to $72.
This blog is an affiliate of Midam Ventures, LLC. Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC (owners of MarijuanaStocks.com), Midam Ventures LLC and Leafbuyer Technologies Inc., Midam is being paid $50,000 for a period of 30 days beginning November 1, 2018, and ending November 30, 2018. Midam has been paid an additional $50,000 and 40,000 common restricted shares of Leafbuyer Technologies, Inc. extending the contract another 30 days ending December 31, 2018. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to January 31, 2019. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to March 1, 2019. Midam has been compensated an additional $50,000 by Leafbuyer Technologies and has extended its period of coverage to April 1, 2019. Midam has been compensated an additional $100,000 by Leafbuyer Technologies for a period of coverage from April 12, 2019 to June 12, 2019. Midam owned 77,000 shares of Leafbuyer Technologies. Midammay buy or sell additional shares of (LBUY) in the open market at any time (as of 3/29/2019) Midam Ventures no longer owns 77,000 shares of (LBUY), including before, during or after the Website and Information, to provide public dissemination of favorable Information about Leafbuyer Technologies Inc. Click here for full Midam disclaimer.