Cannabis Stock Report: Aurora Acquires Two, Aphria Obtains License, TMX Changes Rules

Aurora Cannabis Announces Two Acquisitions

Everything west of this line is the richest, most expensive real estate in the world… Aurora Cannabis Inc. (TSX:ACB) continued its quest for world domination on Thursday. They began by purchasing greenhouse design firm Larssen Ltd. and closed the day with the purchase of medical marijuana applicant H2 Biopharma Inc., the latter of which cost Aurora upwards of $25 million. The buys were not unrelated as Larssen will now finish the design of H2’s cannabis production facility. That project is almost 80 percent complete.

In a statement, Aurora said that H2 is a late-stage licensee applicant for medical marijuana. Plans for the new facility include the production of up to 4,500 kilograms of cannabis per year, with room for expansion. As for Larssen, their clientele already comprises 15 cannabis industry clients across the globe, all which Aurora will reassess once they finish the buyout.

“We’re going to certainly encourage those to proceed but we’re going to require some level of partnership, whether that be an equity stake or a supply agreement or other things,” executive vice-president of Aurora Cam Battley said in a statement.

Aphria Inc. Obtains Dealer’s License

Les, that license in your wallet, that’s not an ordinary piece of paper… Not be outdone on Thursday another big name in the cannabis market, Aphria Inc. (TSX:APH) announced a company milestone with the receipt of their Dealer’s License. Health Canada mandates all international transactions have import and export permits from the proper regulatory authorities. The move will allow Aphria to widen their worldwide base, which in turn means more revenue for the cannabis giant.

Currently, Aphria is looking at international demand in Australia, Italy, Germany, and Argentina. The company is completing a four-part expansion of a fully-funded facility in Leamington, Ontario, a step that will increase supply at what the company claims are one of the lowest costs in the industry.

“Obtaining our Dealer’s License is a significant milestone in our international expansion strategy as it enables Aphria to have greater control over importing and exporting medical cannabis oil globally,” Aphria CEO Vic Neufeld said. “This license will accelerate our speed to international markets and broaden our patient base internationally, resulting in greater revenue for Aphria.”

New TMX Exchange Rules Rile Industry

Playing by the rules… However, looking to bring down the party is The TMX Group. Canada’s largest exchange operator appears to have changed the rules mid-game. They laid down an edict threatening to boot any company in violation of U.S. federal drug laws off its exchanges. The announcement, which came in October, has had unforeseen consequences, affecting unlisted companies. For example, Namaste Technologies (CSNX:N) who does business in the U.S. is for all intents and purposes barred from acquisition by any company trading on a TMX exchange.

Institutional investors and American hedge funds are keeping their distance as well. It is an unprecedented move against publicly traded companies, especially ones that were both vetted and approved before their listings. Companies such as Namaste have shown no sign of doing anything wrong and before October they were following all the rules.

Experts argue TMX needs to become more predictable with its regulations or it could put the whole industry in jeopardy. Until then, companies like Namaste have no choice but to pull out of the U.S. “We’ve decided that for now, it’s better to spin off those divisions,” company CEO Sean Dollinger said. “Until it’s legally 100% accepted over there, that’s what we’ve decided to do.”

Market Updates

Most importantly he demonstrates hard work and produces quality results… Axim Biotechnologies, Inc. (OTC: AXIM) had some good news to share this week. The company reported third quarter financial results with cash at $3.1 million compared to $0.7 million at the end of last year. A slew of highlights included the previously mentioned phase II pilot trial for CanChew +® 50 mg CBD functional, controlled release chewing gum and the start of a proof of concept study for both opioid and cannabis dependence. They also received two new patent allowances for cannabinoid-based pharmaceutical treatments.

This little light of mine… Future Farm Technologies Inc. (CNSX:FFT) is very excited about grow lights. The company released an update on LED Canada, stating that the showroom buildout was complete and in full operation. Of note is the fact that LED Canada grow lights are producing higher yields in comparison to other grow lights at Peking University. Future Farm deals with technologies in the area of Controlled Environment Agriculture, with a focus on the cannabis sector.

“Now listen here, Dad!… Sunniva Inc. is growing bigger. The company announced Thursday that its subsidiary Natural Health Services Ltd. (NHS) reached some new highs this week. According to a statement, the company achieved more than 100,000 medical documents, and 76,000 active patients, a growth rate of about 5,000 patients per month. The company, located in Western Canada, delivers what it calls low-cost and high-quality medical cannabis to its growing patient population. “Our clinics allow patients to come in and talk freely and openly,” said NHS president Dan Vass.

News and Notes

If you don’t have anything nice to say… Canopy Growth Corporation (TSX: WEED) took heed and is following the golden rule. They made known their opinions about proposed regulations for Canada’s upcoming legalization of cannabis. In a statement put out Thursday the company expressed its pleasure with the progress and detail of the proposed regulations. Addressing plain packaging regulations, Canopy did make clear its preference for a self-regulation model already developed between themselves and 17 other companies in consort with the Ad Standards Council.

Because although Eating Honey was a very good thing to do… EVE Investments (ASX:EVE) is interested in honey. The company, which trades in Australia, traded at a 52-week high following the announcement that its new hemp seed honey product will hit stores in the coming new year. Meluka-branded honey is produced by Medic Honey, of which EVE owns half. The news out of Australia is that the Canadian cannabis industry is creating a surge in cannabis stocks down under.

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