Posted by AGORACOM-JC
at 11:02 AM on Monday, April 8th, 2019
SPONSOR: North Bud Farms Inc. (NBUD:CSE) Sustainable low cost, high
quality cannabinoid production and procurement focusing on both
bio-pharmaceutical development and Cannabinoid Infused Products. Click Here For More Information
NBUD: CSE
—————
Cannabis Canada Daily: Pent-up demand leads to roaring start for Ontario pot stores
Ontario pot shops made an average of $50K in sales on the first day of business
Data from Cova Software, which provides point-of-sale services to
seven of the 10 recreational cannabis stores in Ontario, reveal that
legal cannabis shops in the province made an average of $50,913 of sales
on opening day.
Posted by AGORACOM-JC
at 4:26 PM on Thursday, April 4th, 2019
WHY NORTHBUD FARMS?
Canadian regulatory door for CIP (Cannabinoid Infused Products) is opening this year as shown in other legal jurisdictions (Colorado, Washington, Nevada, California)
Infused products sector has become the highest margin segment of the industry
Positioned to be a raw input producer for this space
Currently working with multiple food, beverage and science companies to provide safe standardized cannabinoid infused raw inputs for large scale GMP manufacturing of products
NORTHBUD Signs Binding Letter of Intent to Enter U.S. Market
with Strategic Acquisition of Multi-State Licensed Operator Eureka Vapor
CHECK OUT OUR RECENT INTERVIEW
FULL DISCLOSURE: NORTHBUD is an advertising client of AGORA Internet Relations Corp.
Posted by AGORACOM-JC
at 10:53 AM on Tuesday, April 2nd, 2019
SPONSOR: North Bud Farms Inc. (NBUD:CSE) Sustainable low cost, high
quality cannabinoid production and procurement focusing on both
bio-pharmaceutical development and Cannabinoid Infused Products. Click Here For More Information
NBUD: CSE
—————
Edible Arrangements: The Global Cannabis Edibles Market
The global cannabis edibles market is one of the most promising segments of the overall industry, presenting a world of opportunity for cannabis edibles companies to set themselves apart with unique and appealing products.
For cannabis connoisseurs, cannabis edibles have always been an alluring proposition.
For cannabis connoisseurs, cannabis
edibles have always been an alluring proposition. Take something you
already enjoy, and add it to something delicious. What’s not to like?
The classic “special brownie†and the famous “space cakes†that have
been enjoyed at Amsterdam coffee shops for decades are only just the tip
of the edibles iceberg. Today, cannabis
is being added to candy, artisanal baked goods, coffee, jerky, pizza,
upscale cuisine and so much more, meaning the possibilities are endless
for the global cannabis edibles market.
It’s no surprise that the Canadian
legal cannabis industry is hungrily eyeing cannabis edibles as they
promise to account for a huge portion of the overall cannabis market as
soon as Health Canada allows it. In the meantime, however, this highly
promising market segment faces some significant regulatory challenges.
That won’t stop companies from taking an interest in edibles, as they
already make up a huge portion of the market in legal jurisdictions
where they are allowed, such as California and Nevada.
Edibles to take cannabis market by storm
The consumer appeal of edibles is
obvious. The sheer amount of variability creates countless possibilities
for cannabis companies looking to make their products stand out.
Edibles can be tailored to any type of cannabis consumer, from high-end
dark chocolates served at posh dinner parties to gummy candies enjoyed
before a rock concert. It’s easy to make edible cannabis products eye
catching and appealing. For newcomers trying cannabis for the first time
after legalization, edibles may provide a less intimidating entry point
than smoking or vaping. And medical users often appreciate the stronger
and longer-lasting effect of orally ingested cannabis.
An October 2018 report
by ArcView Market Research and BDS Analytics projects the North
American cannabis edibles market to hit more than $4.1 billion by 2022.
According to the report, food and drink products accounted for
approximately 11.4 percent of total cannabis spending in Canada and the
United States in 2017. As the cannabis market matures and develops, and
as edible products return to dispensary shelves in Canada, classic dried
cannabis flower is expected to steadily lose market share to edibles
and extracts.
Regulatory challenges and solutions
Right now in Canada, though, the more
immediate future of the cannabis edibles market is less certain.
Edibles were not included in the first wave of cannabis legalization
that took place in October 2018, with Health Canada opting to conduct
further study and consultation before rolling out regulatory rules by
October 2019. This put a wrench in the gears for the hundreds of
cannabis companies that had made edibles a key part of their initial
business strategy. In early 2019, Health Canada began a two-month public
consultation period as part of the process of determining the edibles
regulatory scheme. By all accounts, the restrictions are likely to be
heavy. Chief among the rules will be restrictions on potency and
mandates on accurate potency labeling.
The concerns over potency and
accurate labeling aren’t entirely unwarranted. Cannabis edibles have
always been tricky in the way they hit the user. Cannabis ingested
through the digestive system can take an hour or more to for the user to
notice the effect, and inexperienced users have commonly been known to
make the rookie mistake of taking more under the belief that they
haven’t taken a high enough dosage. Due to the intense nature of edible
products, the appeal of edibles to inexperienced cannabis users in
particular can be a recipe for disaster. Excessive dosage of cannabis is
not highly dangerous in that it will not cause poisoning or other
health emergencies, but cannabis-related panic attacks can still present
a risk.
This is why cannabis companies that
plan on making edibles a significant part of their business model have
dedicated considerable resources to developing precision dosing
technology. The challenge stems from the fact that the rate in which
cannabis breaks down as it enters the bloodstream varies significantly
based on a number of factors, including the specific physiology of the
consumer.
Recent years have seen the development of tools
for manipulating cannabis at the molecular level for greater
bioavailability, allowing edibles manufacturers to provide a more
predictable product for easier regulatory compliance and greater
consumer trust.
Regulators have been placing a range
of other regulatory hurdles in the way of the edibles market. Health
Canada is expected to enforce tight restrictions on edibles packaging,
limiting the use of colorful graphics and other eye-catching elements
largely with the intent of limiting the products’ appeal to children.
Packaging will also need to be child resistant. Regulators in various
jurisdictions have often restricted potency, with Health Canada expected
to limit products to 10 milligrams of THC per dose. Similarly,
California has focused its regulations around keeping cannabis edibles
out of the hands of children with a universal cannabis product symbol, a
government warning, child-proof packaging and clear labeling for
potency and recommended dosage.
Takeaway
Not every cannabis consumer is
particularly interested in smoking or vaping, but everyone is interested
in tasty treats. Meeting regulatory hurdles for dosing and keeping
products out of the hands of children has been a challenge, but these
challenges hardly reduce the potential of what promises to be, and in
many jurisdictions already is, one of the primary market segments of the
cannabis industry.
Posted by AGORACOM-JC
at 11:43 AM on Monday, April 1st, 2019
SPONSOR: North Bud Farms Inc. (NBUD:CSE) Sustainable low cost, high
quality cannabinoid production and procurement focusing on both
bio-pharmaceutical development and Cannabinoid Infused Products. Click Here For More Information
NBUD: CSE
—————
CBD oil shortage continues as marijuana producers scramble to meet demand
“The popularity of CBD oil and CBD in general has far exceeded our expectations,” said Ray Gracewood, chief commercial officer of OrganiGram, a licensed producer based in Moncton, N.B.
“To this point, CBD oil is the biggest surprise from an adult recreational perspective, and has got the potential to be a huge product within that channel.”
Carolyn Ray · CBC News
CBD oil has been touted as a solution to everything from ways to limit
human anxiety to pet medicine. (David Zalubowski/Associated Press)
Mona Scott was one of the first people to line up at a marijuana
store in Nova Scotia on the first day of recreational legalization,
eager to get her hands on a type of non-impairing cannabis extract after
hearing about its medicinal benefits.
But she quickly discovered there was no CBD oil in stock that day in
October, nor have there been any bottles in the 10 times since that
she’s visited the Nova Scotia Liquor Corp. store in Truro, N.S.
“The last time I went in was about the first week of December when
the guy walked over to me and said, ‘We don’t have any and we’re not
going to have any for six months,'” said Scott, who sought out the oil
to treat her anxiety.
Pure CBD oil doesn’t make the user high because it does not contain
THC, or tetrahydrocannabinol. While research on the benefits of CBD oil
has been limited, it has surged in popularity as a treatment for medical issues including pain, seizures and nausea.
Demand ‘far exceeded’ expectations
Scott is one of a long list of Nova Scotians who have caused a huge
surge in demand for the product, something one licensed producer said
has caught them completely off guard.
“The popularity of CBD oil and CBD in general has far exceeded our
expectations,” said Ray Gracewood, chief commercial officer of
OrganiGram, a licensed producer based in Moncton, N.B.
“To this point, CBD oil is the biggest surprise from an adult
recreational perspective, and has got the potential to be a huge product
within that channel.”
So far, OrganiGram is the only company that has been able to provide
any supply to the NSLC, said a spokesperson from the Crown corporation.
“We currently have products containing up to 20 per cent CBD but not
the pure CBD oil,” said Beverley Ware. “Every province is in the same
situation.”
At this point, no producers have even given them a timeframe for when it may be available for purchase.
The NSLC said no producers have been able to give them a timeframe for
when pure CBD oil will be back in stock. (Paul Palmeter/CBC)
Gracewood said OrganiGram has been reserving its supply for its
medical patients, who have not experienced a shortage in their
medicine.
The company is now shifting its production to try to fill the gap for
retail stores. Gracewood said they have orders from one end of the
country to the other.
“It represents almost half of our business now,” he said of their
medical business. He said because no producer has been able to make
enough oil to fill the demand in the recreational market, the company is
still relying on estimates as to how much they need to produce.
“The reality of the production environment is that cannabis takes a
certain amount of time to grow within our facility and therefore it
takes us some time to adapt to changes within forecasting.”
Oil from hemp
The demand in oil also has OrganiGram pushing to create new
partnerships with hemp farms, as CBD can derive from both cannabis and
hemp.
“This entire industry is completely new and there’s no way that
anybody could have forecasted all the variables, whether it’s the
attractiveness of CBD oil, or the demand for pre-rolls or the balance
between dried flower and cannabis oil,” Gracewood said.
OrganiGram is facing a class-action lawsuit
over cannabis that was tainted with unapproved pesticides in 2016.
Gracewood wouldn’t comment on whether the case was affecting their
production.
In the meantime, Scott has started advocating to change
marijuana laws. She started to order pure CBD oil from the United
States. While she received the first few bottles, other orders have
since been seized at the border.
She said if Canadian producers can’t fill the void, she should be able to order from other countries.
“For Canada to open up with legalization and to no have it to offer people, I was quite shocked by that.”
Tags: Hemp, stocks, THC, tsx, tsx-v Posted in All Recent Posts, Featured, North Bud Farms Inc | Comments Off on North Bud Farms Inc. $NBUD.ca – CBD oil shortage continues as marijuana producers scramble to meet demand $WEED.ca $CGC $ACB $APH $CRON.ca $HEXO.ca $TRST.ca $OGI.ca
Posted by AGORACOM-JC
at 10:00 AM on Friday, March 29th, 2019
SPONSOR: North Bud Farms Inc. (NBUD:CSE) Sustainable low cost, high
quality cannabinoid production and procurement focusing on both
bio-pharmaceutical development and Cannabinoid Infused Products. Click Here For More Information
NBUD: CSE
—————
Marijuana edibles: Is Canada on track to legalize them?
In a second wave of recreational legalization in Canada, cannabis edibles will be permitted for legal sale no later than Oct. 17, 2019, Health Canada has confirmed. And the market is up for grabs.
The edibles industry is expected to be worth $4.1 billion in Canada and the United States by 2022, according to a report by a marijuana market research company called The Arcview.
In a second wave of recreational legalization
in Canada, cannabis edibles will be permitted for legal sale no later
than Oct. 17, 2019, Health Canada has confirmed. And the market is up
for grabs.
The edibles industry is expected to be worth $4.1 billion in Canada
and the United States by 2022, according to a report by a marijuana
market research company called The Arcview.
As of now, in Canada, you can make
cannabis-infused food at home but it is illegal for anyone to buy and or
sell them to the public.
Canada’s proposed edible pot regulations
have been published by Health Canada and the 60-day consultation
process has come to an end. The public health agency is now reviewing
the responses.
The draft regulations
Under the proposed federal rules, a single serving would be limited to 10 milligrams of THC, the psychoactive ingredient in cannabis, and each serving must be individually wrapped. This is considered a low to moderate dose of THC.
This dosage limit is stricter than in
Colorado, Washington or California, where multiple servings are allowed
per package. So for example in a chocolate bar, each breakable square
can contain 10 milligrams each for a total of 100 milligrams.
Pot meant for ingestion cannot have alcohol, have limited caffeine and come in a plain, child-resistant package. The draft regulations say the products must not be appealing to youth and the packaging can’t advertise dessert or confectionery flavours — so no gummies shaped like bears.
The proposed rules are an attempt to address one of the main concerns
with edibles: making sure it doesn’t pose a risk to public health,
especially for those who are underage.
“In other jurisdictions, which
legalized marijuana just like the states in the U.S., one of the
problems, [with] legalizing edibles, were kids. So kids came into the
kitchen saw this wonderful nicely coloured marijuana edible and
as kids do, try it out,†said Dr. Jürgen Rehm, a senior scientist at the
Institute for Mental Health Policy Research at CAMH.
However, some are worried the black market will continue to thrive
with such strict regulations. In California, for example, which
legalized recreational marijuana and edibles last year, industry experts
say the illicit market continues to boom.
One major cannabis edibles
manufacturer in California says it’s been difficult to navigate within
the legal market because there is still so much competition in the
illicit market.
“People that are heavy consumers of
THC and like to ingest it, can ingest hundreds if not thousands of
milligrams of THC in a day and so if they have products that are
available in the illicit market that are much cheaper and have a higher
potency, they’re going to tend to go towards that rather than paying
significantly more for less THC, which is what they’ve used to consume,â€
Bryce Berryessa said, the president of La Vida Verde.
WATCH: Is marijuana good or bad for you? Everything we know about the health effects of cannabis
Berryessa says your body builds up a
pretty quick tolerance when ingesting edibles. So a lot of those people
who are currently used to consuming a higher amount of THC are still
participating in the illegal market to get access to products with
higher potencies.
Rehm who has been working on the
field of mental health and cannabis consumption says it’s better to have
an incremental approach when it comes to edibles.
“The problem with edible marijuana is
that people are not used to it. A lot of the people once they smoke
marijuana. They feel the effects pretty quickly. With edibles, the
effects can be later. And people say ‘Oh, I have now done this edible
marijuana and I feel nothing’ and they have more and more,†Rehm said.
To avoid putting people at risk, it
would be better to start with a low dosage and once we have clear
evidence the black market is still thriving, then we can re-evaluate it,
he added.
“So with all the legislation, with
all the upper limits of THC or other points, we have to be in a way so
we can reap the benefits of legalization (i.e safer product and not lose
some of the consumers to the black market). And frankly, I think there
will be a lot of trial and error in the next one to two years.â€
Health Canada confirms that they have
received 7,000 responses from Canadians, industry representatives, the
provinces and the public health community on the proposed edibles draft
regulations. Now, the agency is reviewing the comments and considering where adjustments can be made.
Those in the marijuana industry, however, are skeptical the
government will make the edibles deadline set for themselves. When it
came to recreational pot, legalization was first promised on Canada day,
but the actual date wasn’t for a couple of months later.
Health Canada could not comment on
when we will see the updated draft but confirmed that cannabis products
will be permitted for legal sale no later than Oct. 17, 2019.
Posted by AGORACOM-JC
at 12:00 PM on Tuesday, March 26th, 2019
SPONSOR: North Bud Farms Inc. (NBUD:CSE) Sustainable low cost, high
quality cannabinoid production and procurement focusing on both
bio-pharmaceutical development and Cannabinoid Infused Products. Click Here For More Information
NBUD: CSE
—————
Legal marijuana shortages persist in Canada
Legal cannabis shortages were still a problem in Canada in early 2019, several months after the country began recreational sales to adults, says a report this morning by broker Cowen
Survey of five provinces’ online weed availability in January shows that nearly half of all items remained out-of-stock on marijuana e-commerce sites
From Bill Alpert: Legal cannabis shortages were still a problem in Canada in early 2019, several months after the country began recreational sales to adults, says a report this morning by broker Cowen. A survey of five provinces’ online weed availability in January shows that nearly half of all items remained out-of-stock on marijuana e-commerce sites. But in the relatively-populous Ontario, supplies were better, with 61% of listed products actually in-stock. In New Brunswick and Newfoundland & Labrador, however, out-of-stock rates increased.
“While it is difficult to assess how much of the change is demand
versus supply driven,†wrote analyst Vivien Azer, in the note, “our view
is that demand remains strong with an improving supply chain.†Cowen
surveyed online shops in Ontario, British Columbia, Alberta, New
Brunswick and Newfoundland & Labrador.
Among Canada’s large producers, Canopy Growth (ticker: CGC) had the largest share of in-stock product on e-commerce shelves, with a 21% share in Ontario, while Aurora Cannabis (ACB) had 12% of that province’s online market. Tilray(TLRY) and Cronos Group (CRON) each had 4%.
After a month when Canada’s pot stocks mostly wandered sideways,
Canopy is flat this morning, at $44.44, while Aurora is up 9% to $9.37.
Tilray is up 3%, to $69, while Cronos has jumped 6.3% to $20.21, a day
before it reports December-quarter results.
Dry flower marijuana made up about three-fourths of all products at
Canada’s online shops, noted Cowen, with the remaining offerings
consisting of capsules, oils, and pre-roll smokes.
“We continue to believe that the category will look very different in
late 2019,†the analyst wrote, “when vapor, beverages, edibles, and
other form factors become available.â€
Prices for dry flower held firm in January, according to Cowen, at
$10.22 Canadian dollars per gram (or US$7.56). Pre-roll product commands
a price premium, for its convenience, but Canadian consumers had cause
to celebrate, as pre-roll’s average price fell 4% from December, to
C$12.88 a gram.
Tags: CSE, Hemp, stocks, tsx, tsx-v Posted in All Recent Posts, North Bud Farms Inc | Comments Off on North Bud Farms Inc. $NBUD.ca – Legal #marijuana shortages persist in Canada $WEED.ca $CGC $ACB $APH $CRON.ca $HEXO.ca $TRST.ca $OGI.ca
Posted by AGORACOM-JC
at 12:25 PM on Monday, March 25th, 2019
SPONSOR: North Bud Farms Inc. (NBUD:CSE) Sustainable low cost, high quality cannabinoid production and procurement focusing on both bio-pharmaceutical development and Cannabinoid Infused Products. Click Here For More Information
NBUD: CSE
—————
CBD is booming. But US farmers struggle to keep up with demand for industrial hemp
Retail sales of cannabis-compound CBD are expected to reach $16 billion by 2025, according to Cowen.
Growing industrial hemp is incredibly expensive and inefficient. Lab tests aren’t always accurate.
Retailers are receiving a flood of pitches as people try to take advantage of the so-called green rush.
Geoffroy Van Der Hasselt | AFP | Getty Images
Oils containing CBD (Cannabidiol) are seen in a shop in Paris on June 14, 2018.
It’s Hollywood’s new favorite beauty product. It’s the superfood du
jour. Demand for CBD is so strong that companies are scrambling to
infuse their products with it, but the CBD they’re finding isn’t all
that great.
Congress legalized industrial hemp in December. With it, they also
legalized hemp-derived CBD, short for cannabidiol, a cannabis compound
that supposedly delivers the calming effects of marijuana without the
high from THC.
Last year, retail sales of CBD consumer products in the U.S. were
estimated at between $600 million and $2 billion, according to
investment research firm Cowen. The bank conservatively forecasts sales
to reach $16 billion by 2025, with health and wellness products leading
the way and food, beverage, beauty and vapor to also play a role.
From seed to CBD
The current supply chain — from plants, to extraction, to labs — is
riddled with issues. And the nascent industry is trying to work through
the kinks at the same time demand is ramping up, leaving producers
frustrated and consumers stuck trying to sift good products from bad
ones.
“There are huge challenges to producing the industrial hemp required
for meeting the demand,” said George Weiblen, a professor at the
University of Minnesota who has been studying cannabis since 2002. “It’s
not as simple as growing tomatoes. It’s just not. … The possibility
of failure to produce quality cannabis extracts is huge.”
Decades of modern farming techniques have tamed staple crops like
corn and wheat. Farmers know what to expect when they plant these crops
and can follow a pretty straightforward set of guidelines when they grow
them. With hemp for CBD, not so much.
More religion than science
People have been growing hemp illegally for years. Farmers have kept
their operations quiet and developed their own techniques that are all a
little different, said Christian Cypher, a senior vice president at Pyxus International who is leading the agriculture company’s cannabis work.
“Growing hemp has been more religion than science,” he said.
Most hemp farmers are growing the plant like a tomato, a process
that’s expensive and intensive, said David Williams, an agronomist at
the University of Kentucky who studies hemp. This model works for
marijuana because you want the flower to look and smell nice. For hemp
that will be used to extract CBD, this system is incredibly expensive
and unnecessary since you only care about what’s inside the flower,
Williams said.
“If the molecule is of interest and becomes broadly distributed, it
will need to be far more efficient than what we have today,” he said.
Incredibly expensive
Industrial hemp produces such small amounts of CBD that growing it
and harvesting it to extract the molecule is incredibly expensive. One
Canadian certified industrial hemp strain produced an average of 0.6
percent CBD and 0.03 percent THC, according to a study Weiblen
conducted.
Arcadia Biosciences,
a company that has bred wheat to be more fibrous, recently entered the
cannabis space with the aim of growing hemp that produces more CBD and
no or reliably low THC. Federal law says CBD is legal so long as it
contains less than 0.3 percent THC.
“We think that’s a significant opportunity,” said Matt Plavan, chief
financial officer of Arcadia and president of the new cannabis-focused
unit, Arcadia Specialty Genomics.
A ‘green rush’
Farmers won’t find out how much THC their plants produce until
they’re harvested, dried and the CBD is extracted. During this process,
the CBD becomes concentrated and the THC gets dragged along with it,
Weiblen said, possibly to the point where the amount of THC exceeds the
legal limit.
With CBD coming into vogue, some are latching onto the trend and cutting corners along the way.
Numerous studies, including from federal regulators, have found a
slew of products don’t contain the amount of CBD they say they do.
There aren’t any federal laws requiring companies to test CBD,
whether it goes into beauty or food products. Some farmers or
manufacturers send their extracts in anyway, and they’re learning that
lab tests are working through a similar learning curve as the rest of
the supply chain.
Vastly different results
Chris Padulo, a farmer in Vermont who started growing hemp last year,
sent samples to four different labs and got “vastly different results”
from each. One lab said the plant he sent in contained 8 percent CBD.
Another one said it contained 16 percent. The two others said it landed
somewhere in the middle.
“I figured science is science,” he said. “There are no consistencies.”
Retailers say they’re constantly receiving pitches from people asking
to put their products on shelves. Chris Burton, retail partner manager
at online CBD store HelloMD, grills brands on where their hemp is grown,
how the CBD is extracted, where their lab tests are and more.
Wild West
“Some say their CBD is the best possible and when you ask how they know they can’t answer questions,” Burton said.
Consumers shopping for CBD will find a slew of terms: isolate, full
spectrum, water soluble and more, with each claiming to be better than
the other. Brands are trying to differentiate themselves and prove their
products are legit, especially as they introduce people to an entirely
new category.
Burton says this “green rush” worries him that people seeing dollar
signs are moving as fast they can to brings products to market.
“It’s really just the wild west out there,” he said.
Tags: CSE, Hemp, stocks, tsx, tsx-v Posted in All Recent Posts, North Bud Farms Inc | Comments Off on North Bud Farms Inc. $NBUD.ca – CBD is booming. But US farmers struggle to keep up with demand for industrial hemp $WEED.ca $CGC $ACB $APH $CRON.ca $HEXO.ca $TRST.ca $OGI.ca
Posted by AGORACOM-JC
at 1:37 PM on Tuesday, March 12th, 2019
NORTHBUD (NBUD:CSE) is already a late stage applicant at the
“Confirmation of Readiness” stage for 25,000 square feet of indoor and
500,000 square feet of outdoor growing space, for the sole purpose of
growing GMP pharma-grade cultivation and food-grade extracted inputs.
But Ryan Brown didn’t get this far in the cannabis space by sitting
still … and he has made one hell of a great deal with the $20 MILLION
acquisition of Eureka Vapor, a multi-state licensed operator in the
USA. The acquisition is subject to typical closing and due diligence
but Ryan has a close relationship with the CEO and is confident it will
close.
If and when it does close, Eureka will bring about $11.5 million in
revenue at a 16% profit margin, which will be immediately accretive to
the bottom line of NORTHBUD. Accretive is actually an understatement.
I also love this acquisition because of its’ terms, which shows the
confidence that both sides have in each other. For example, the Eureka
team can earn an extra $25 million if they hit certain milestones. That
says a lot about how Eureka may grown once it is a part of NORTHBUD.
On the flipside, the Eureka group only gets 10% of their shares on
closing, with the rest dripped out over the next 24 months. That says a
lot about the confidence Eureka has in NORTHBUD.
Find out more about NORTHBUD and this great deal in this interview
with Ryan, who has already made a name for himself and is now on his way
to growing that success, pun intended.
Posted by AGORACOM-JC
at 4:35 PM on Thursday, March 7th, 2019
Clarifies the terms of its press release dated March 6, 2019 with respect to entering into the March 3, 2019 binding letter of intent
TORONTO, March 07, 2019 — North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) (“NORTHBUD” or the “Company”) clarifies the terms of its press release dated March 6, 2019 with respect to entering into the March 3, 2019 binding letter of intent (“LOIâ€) to acquire all the issued and outstanding shares of Eureka Vapor LLC. and all of its subsidiaries (“Eurekaâ€), a U.S. multi-state cannabis operator, and arm’s length to the Company, in a transaction valued at CAD$20 million (the “Transactionâ€). The completion of the Transaction is subject to the following conditions precedent: (i) obtaining the necessary board of director and shareholder approval of the Company and Eureka; (ii) the Company and Eureka satisfying respective due diligence of the other on or before May 30, 2019; (iii) entering into of a definitive agreement (the “Definitive Agreementâ€) in respect of the Transaction; and (iv) obtaining necessary regulatory and CSE approval. The Company and Eureka shall use commercially reasonable best efforts to satisfy the aforementioned condition precedents as soon as possible, but in any event no later than June 1, 2019 (the “Termination Deadlineâ€) or another date as may be agreed to by the parties. In the event that the conditions precedent have not been satisfied or waived prior to the Termination Deadline, the LOI will automatically terminate.
As referenced in its March 6, 2019 press release, the purchase price
of Eureka under the Definitive Agreement will be satisfied by the
issuance of common shares (“Common Sharesâ€) of the Company to Eureka
shareholders with a price per Common Share to be determined based on a
formula of the higher of (a) CAD$0.35 per Common Share; and (b) the 30
day volume weighted average price of the Common Shares. 10% of the
Common Shares will be issued to the Eureka shareholders on the closing
date of the Transaction (the “Closing Dateâ€), with the remainder of
Common Shares issued in equal tranches of six, twelve, eighteen, and
twenty-four months from the Closing Date. In addition, Eureka
shareholders are eligible to receive up to an additional CAD$25 million
of Common Shares based on the achievement of USD$25 million of revenue
derived from existing Eureka California and Colorado operations.
The 10% of the Common Shares issued on the Closing Date will
represent up to 9.33% of the total issued and outstanding Common Shares
on the Closing Date (if the minimum issuance price of CAD$0.35 per
Common Share is assumed and there is no occurrence of dilutive events).
The Company will issue a comprehensive press release respecting the
terms of the Definitive Agreement upon entering into the Definitive
Agreement.
The Company anticipates its common shares will re-commence trading after the dissemination of this news release.
About Eureka Vapor LLC. Headquartered
in Los Angeles, California, EUREKA Vapor was founded in 2011 and holds
licenses in both California and Colorado. EUREKA Vapor’s multi state
operation manufactures and sells a premium line of vaporizer cartridges,
disposable vapor pens and proprietary vaporizer batteries designed to
work with their highly sought-after CO2 extracted oil. Using their
refined extraction processes and techniques developed over almost a
decade of extracting, EUREKA Vapor is committed to providing the
cleanest and safest natural oil cartridges in the industry. Long
referred to as one of the leaders in the industry, EUREKA has one of the
most loyal customer bases in the category which reflects their
commitment to honesty and transparency above all else. EUREKA
continually looks for innovative ways to improve and refine their
product offerings in order to deliver the best, most consistent vaping
experience in the industry.
About North Bud Farms Inc. North Bud Farms Inc., through its wholly-owned subsidiary GrowPros MMP Inc., is pursuing a licence under The Cannabis Act. The Company is constructing a state-of-the-art purpose-built cannabis production facility located on 95 acres of Agricultural Land in Low, Quebec. North Bud Farms Inc. will be focused on Pharmaceutical and Food Grade cannabinoid production in preparation for the legalization of edibles and ingestible products scheduled for October 2019.
Neither the Canadian Securities Exchange (the “CSEâ€) nor its
Regulation Services Provider (as that term is defined in the policies of
the CSE) accepts responsibility for the adequacy or accuracy of this
release.
Forward-looking statements Certain statements
included in this press release constitute forward-looking information or
statements (collectively, “forward-looking statementsâ€), including
those identified by the expressions “anticipateâ€, “believeâ€, “planâ€,
“estimateâ€, “expectâ€, “intendâ€, “mayâ€, “should†and similar expressions
to the extent they relate to the Company or its management. The
forward-looking statements are not historical facts but reflect current
expectations regarding future results or events. This press release
contains forward- looking statements including those relating to the
Transaction, the completion of conditions precedent to the Transaction,
entering into of the Definitive Agreement, the potential termination of
the LOI, the issuance of Common Shares to Eureka shareholders, an
issuance price of CAD$0.35 per Common Share at the Closing Date, Eureka
achieving USD$25 million of revenue derived from California and Colorado
operations, and the issuance of up to CAD$25 million of Common Shares,
and the re-commencement of the trading of common shares of the Company.
These forward-looking statements are based on current expectations and
various estimates, factors and assumptions and involve known and unknown
risks, uncertainties and other factors. Such risks and uncertainties
include, among others, the risk factors included in North Bud Farms
Inc.’s final long form prospectus dated August 21, 2018 which is
available under the issuer’s SEDAR profile at www.sedar.com.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT: North Bud Farms Inc. Edward Miller VP, IR & Communications Office: (855) 628-3420 ext. 3 [email protected]
Tags: Hemp, stocks, tsx, tsx-v, weed Posted in North Bud Farms Inc | Comments Off on North Bud Farms $NBUD.ca Clarifies Terms of Binding Letter of Intent to Enter U.S. Market with Strategic Acquisition of Multi-State Licensed Operator Eureka Vapor $WEED.ca $CGC $ACB $APH $CRON.ca $HEXO.ca $TRST.ca $OGI.ca
Posted by AGORACOM-JC
at 10:33 AM on Wednesday, March 6th, 2019
Entered into a binding letter of intent to acquire all the issued and outstanding shares of Eureka Vapor LLC. and all of its subsidiaries , a U.S. multi-state cannabis operator, and arm’s length to the Company, in a transaction valued at CAD$20 million.Â
In 2018, Eureka recognized revenue of approximately CAD$11.5 million* with a net profit margin of 16%* from its California and Colorado operations.
Eureka anticipates further growth in revenue due to anticipated changes to retail regulation of adult cannabis use in California.
TORONTO, March 06, 2019 – North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) (“NORTHBUD” or the “Company”) is pleased to announce that effective March 3, 2019 it entered into a binding letter of intent (“LOIâ€) to acquire all the issued and outstanding shares of Eureka Vapor LLC. and all of its subsidiaries (“Eurekaâ€), a U.S. multi-state cannabis operator, and arm’s length to the Company, in a transaction valued at CAD$20 million.Â
Eureka, through its wholly-owned subsidiaries holds Manufacturing and
Distribution licenses in the states of California and Colorado. Eureka
manufactures and sells a premium line of disposable vapor pens as well
as multi-use cartridge-style vapor pens and hardware. Eureka has been
operating in California and Colorado since 2011 and 2015, respectively,
showing significant organic growth year over year. In 2018, Eureka
recognized revenue of approximately CAD$11.5 million* with a net profit
margin of 16%* from its California and Colorado operations. Eureka
anticipates further growth in revenue due to anticipated changes to
retail regulation of adult cannabis use in California. Eureka products
are currently available in over 100 retail stores. (*all figures are unaudited). For more information about Eureka Vapor, visit: www.eurekavapor.com.
Transaction Terms The
proposed transaction (the “Transactionâ€) is structured as a share
purchase agreement whereby in exchange for the purchase of all of the
shares of Eureka, NORTHBUD will issue CAD$20 million in common shares
(“Common Sharesâ€) to the shareholders of Eureka (the “Eureka
Shareholdersâ€) with the price per Common Share to be determined based on
a formula of the higher of (a) CAD$0.35 per Common Share and (b) the
30-day volume weighted average price (“VWAPâ€) calculated on the closing
date (the “Closing Dateâ€) of a definitive agreement in respect of the
transaction (the “Definitive Agreementâ€). NORTHBUD and Eureka expect to
enter into the Definitive Agreement by May 30, 2019. 10% of the Common
Shares issued pursuant to the Definitive Agreement will be issued to the
Eureka Shareholders on the Closing Date, with the remainder of Common
Shares issued in equal tranches of six, twelve, eighteen, and
twenty-four months from the Closing Date (the “Escrow Periodâ€). The
Transaction will be considered a “Fundamental Change†pursuant to the
policies of the CSE and will accordingly require a new listing statement
(the “Listing Statementâ€). Given that effective as of the Closing Date
the Company will have United States cannabis operations, the Listing
Statement will provide disclosure of the risks associated with cannabis
operations in the United States. Closing of the Transaction is subject
to applicable corporate and regulatory approvals as well as shareholder
and CSE approval.
In addition, Eureka Shareholders will be eligible to receive up to an
additional CAD$25 million of Common Shares (“Revenue Milestone Sharesâ€)
based on the achievement of USD$25 million of revenue derived from
existing Eureka California and Colorado operations. Eureka Shareholders
will receive Revenue Milestone Shares pro rata, on a quarterly basis,
based on the percentage of USD$25 million of revenue generated in that
quarter. All Revenue Milestone Shares will continue to be subject to the
remainder of the Escrow Period at the time of issuance and will only be
releasable in accordance with the Escrow Period. The Revenue Milestone
Shares will be issued at the 10-day VWAP at the time of issuance.
“The opportunity to partner with a recognized brand in some of the
most developed retail markets in North America is an exciting
development for NORTHBUD,†says Ryan Brown, CEO of NORTHBUD. “We believe
that vape cartridges represent a high margin and high-growth product
segment of the market. The Eureka team are proven operators and possess
an unmatched product knowledge which is evidenced by the strong brand
loyalty that they have established.â€
“Aligning ourselves with NORTHBUD provides Eureka with both exposure
to the Canadian public markets as well as the largest federally legal
adult-use market in the world,†says Justin Braune, CEO of Eureka Vapor.
“We will be working with the NORTHBUD team to introduce our product
line into the Canadian market for the fourth quarter of 2019 when vape
pens will be permitted.â€
Granting of Stock Options The Company also
announces the granting of 150,000 stock options to a consultant and
employee. Each option entitles the holder to acquire one Common Share
for a period of five years at an exercise price of CAD$0.35 per Common
Share. The options all vest immediately.
About Eureka Vapor LLC. Headquartered in Los
Angeles, California, EUREKA Vapor was founded in 2011 and holds licenses
in both California and Colorado. EUREKA Vapor’s multi state operation
manufactures and sells a premium line of vaporizer cartridges,
disposable vapor pens and proprietary vaporizer batteries designed to
work with their highly sought-after CO2 extracted oil. Using their
refined extraction processes and techniques developed over almost a
decade of extracting, EUREKA Vapor is committed to providing the
cleanest and safest natural oil cartridges in the industry. Long
referred to as one of the leaders in the industry, EUREKA has one of the
most loyal customer bases in the category which reflects their
commitment to honesty and transparency above all else. EUREKA
continually looks for innovative ways to improve and refine their
product offerings in order to deliver the best, most consistent vaping
experience in the industry.
About North Bud Farms Inc. North Bud Farms Inc., through its wholly-owned subsidiary GrowPros MMP Inc., is pursuing a licence under The Cannabis Act. The Company is constructing a state-of-the-art purpose-built cannabis production facility located on 95 acres of Agricultural Land in Low, Quebec. North Bud Farms Inc. will be focused on Pharmaceutical and Food Grade cannabinoid production in preparation for the legalization of edibles and ingestible products scheduled for October 2019.
Neither the Canadian Securities Exchange (the “CSEâ€) nor its
Regulation Services Provider (as that term is defined in the policies of
the CSE) accepts responsibility for the adequacy or accuracy of this
release.
Forward-looking statements Certain statements
included in this press release constitute forward-looking information or
statements (collectively, “forward-looking statementsâ€), including
those identified by the expressions “anticipateâ€, “believeâ€, “planâ€,
“estimateâ€, “expectâ€, “intendâ€, “mayâ€, “should†and similar expressions
to the extent they relate to the Company or its management. The
forward-looking statements are not historical facts but reflect current
expectations regarding future results or events. This press release
contains forward- looking statements including those relating to the
projected growth of Eureka in 2019, the entering into of the Definitive
Agreement, closing of the Transaction and associated approvals, Eureka’s
ability to achieve milestones under the Definitive Agreement and
associated Common Share issuances, the growth of the vape industry and
its profitability, the timing of the introduction of Eureka vape pens
into the Canadian market, and the projected legalization of edibles and
ingestible products scheduled for October 2019. These forward-looking
statements are based on current expectations and various estimates,
factors and assumptions and involve known and unknown risks,
uncertainties and other factors. Such risks and uncertainties include,
among others, the risk factors included in North Bud Farms Inc.’s final
long form prospectus dated August 21, 2018 which is available under the
issuer’s SEDAR profile at www.sedar.com.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT: North Bud Farms Inc. Edward Miller VP, IR & Communications Office: (855) 628-3420 ext. 3 [email protected]
Posted in All Recent Posts, Featured, North Bud Farms Inc | Comments Off on North Bud Farms $NBUD.ca Signs Binding Letter of Intent to Enter U.S. Market with Strategic Acquisition of Multi-State Licensed Operator Eureka Vapor
