Posted by AGORACOM-JC
at 2:28 PM on Friday, December 20th, 2019
Spyder Cannabis Announces MOU with HighBreed Growth has Expired
Previously announced Memorandum of Understanding with HighBreed Growth Corp. has expired pursuant to its terms
Under the MOU signed on September 5, 2019, the parties intended to complete a business combination that would result in a reverse take-over of Spyder Cannabis by HGBGC
Company’s common shares will resume trading on the TSXV at market open on December 24, 2019
Vaughan, Ontario–(December 20, 2019) – Spyder Cannabis Inc. (TSXV: SPDR) (“Spyder Cannabis” or the “Company“), an established Canadian cannabis accessory and vape retailer, announces its previously announced Memorandum of Understanding (the “MOU“) with HighBreed Growth Corp. (“HBGC“) has expired pursuant to its terms. Under the MOU signed on September 5, 2019, the parties intended to complete a business combination that would result in a reverse take-over of Spyder Cannabis by HGBGC. Given that the transaction will no longer proceed, the Company does not, at the present time, intend to proceed with a delisting from the TSX Venture Exchange (the “TSXV“).
The Company’s common shares will resume trading on the TSXV at market open on December 24, 2019
About Spyder
Founded in 2014 Spyder is an established chain of three high-end vape
stores in Ontario, with stores located in Woodbridge, Scarborough and
Burlington. The Spyder brand is defined by its high-quality proprietary
line of e-juice, liquids and exclusive retail deals, dispensed in
uniquely designed stores creating the optimal customer experience.
Spyder is building off this leading retail, distribution and branding
eCig and vapes company and is pursuing expansion into the legal cannabis
market. Spyder has developed a scalable retail model with aggressive
expansion plan to create a significant retail footprint with targeted
and
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
For more information, please contact:
Spyder Cannabis Inc. Dan Pelchovitz President & Chief Executive Officer Contact: Investor Relations Phone: 1-888-504-SPDR (1-888-504-7737) Email: [email protected]
Cautionary Statements
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future events or
future performance. The use of any of the words “could”, “intend”,
“expect”, “believe”, “will”, “projected”, “estimated” and similar
expressions and statements relating to matters that are not historical
facts are intended to identify forward-looking information and are based
on the Company’s current belief or assumptions as to the outcome and
timing of such future events. Actual future results may differ
materially. In particular, this release contains forward-looking
information relating to the satisfaction of the closing conditions
contemplated under the Agreement. Various assumptions or factors are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those assumptions
and factors are based on information currently available to the Company.
Risk factors that could cause actual results or outcomes to differ
materially from the results expressed or implied by forward-looking
information include, among other things: the TSX Venture Exchange
declining to accept the transaction, the landlord not consenting to the
Lease Assginment, changes in tax laws, general economic and business
conditions; and changes in the regulatory regulation. The Company
cautions the reader that the above list of risk factors is not
exhaustive. The forward-looking information contained in this release is
made as of the date hereof and the Company is not obligated to update
or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue reliance
on forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
Posted by AGORACOM-JC
at 10:58 AM on Thursday, September 12th, 2019
Signed a Memorandum of Understanding with HighBreed Growth Corp.
HBGC and Spyder Cannabis would be willing to complete a transaction that will result in a reverse take-over of Spyder Cannabis by HBGC
HighBreed Growth Ltd., is building a cannabis cultivation greenhouses facilities in Israel with a total planned size of 500,000 square feet.
Vaughan, Ontario–(Newsfile Corp. – September 12, 2019) – Spyder Cannabis Inc. (TSXV: SPDR) (“Spyder Cannabis” or the “Company“), an established Canadian cannabis accessory and vape retailer, is pleased to announce that it has signed a Memorandum of Understanding (the “MOU“) with HighBreed Growth Corp. (“HBGC“), that outlines the general terms and conditions pursuant to which HBGC and Spyder Cannabis would be willing to complete a transaction that will result in a reverse take-over of Spyder Cannabis by HBGC (the “Transaction“). The MOU was signed on September 5, 2019.
About HighBreed Growth Corp.
HBGC is a Canadian company located in Toronto, through its Israeli
subsidiary HighBreed Growth Ltd., is building a cannabis cultivation
greenhouses facilities in Israel with a total planned size of 500,000
square feet. HBGC has signed domestic sale contract with an entity to
purchase its production capacity. The Israeli government announced that
it would approve cannabis for export in 2019, and regulations are
expected to be enacted in the 2nd quarter of 2020 to authorize export.
To strengthen its team, HBGC has reached an understanding to retain
the services of a former chief agronomist of one for the largest, most
experienced and world-renowned licensed producers in Israel.
About Spyder Cannabis
Founded in 2014 Spyder Cannabis is an established chain of five
stores in Ontario, with locations in Woodbridge, Scarborough,
Burlington, Pickering and Niagara Falls. The Spyder Cannabis brand is
defined by its high-quality retail deals, dispensed in uniquely designed
stores creating the optimal customer experience. Spyder Cannabis is
building off this leading retail, distribution and branding company and
is pursuing expansion into the legal cannabis and hemp derived market.
Spyder Cannabis has developed a scalable retail model with plans to
create a significant footprint with targeted and disciplined retail
distribution strategy focusing on Canadian retail and U.S. boutique
retail and kiosks in high traffic peripheral areas.
About the Transaction
The MOU is to be superseded by a definitive merger, amalgamation or share exchange agreement (the “Definitive Agreement“)
that is expected to be signed on or prior to October 15, 2019, or such
later date as may be mutually agreed upon by the parties in writing. The
legal structure for the Transaction will be determined after the
parties have considered all applicable tax, securities law and
accounting factors. Completion of the Transaction is subject to a number
of conditions, which include approval of the board of directors of each
party, completion of mutual due diligence, the execution of the
Definitive Agreement, receipt of all necessary securityholder and
regulatory approvals, the delisting Spyder Cannabis’ common shares (the “Spyder Shares“)
from the TSX Venture Exchange, the conditional approval of the listing
of the Company on the Canadian Securities Exchange (the “CSE“), and the satisfaction or waiver of conditions to be set out in the Definitive Agreement.
Pursuant to the Transaction, the holders of common shares of HBGC (“HBGC Shares“) will receive common shares (“Resulting Issuer Shares“) of the entity resulting from the Transaction (the “Resulting Issuer“)
in exchange for their HGBC Shares on the basis of an exchange ratio to
be determined, but which is expected to result in the former
shareholders of HGBC holding eighty percent (80%) of the Resulting
Issuer Shares, with the remaining twenty percent (20%) of the Resulting
Issuer Shares being held by the former shareholders of Spyder Cannabis
without giving effect to the Financings (each as defined below).
Following the completion of the Transaction, the Resulting Issuer will
continue the businesses of HBGC and the Company.
The Transaction constitutes an Arm’s Length Transaction under the policies of the TSX Venture Exchange.
An application will be made to voluntarily delist the Spyder Shares
from the TSX Venture Exchange and to list the Resulting Issuer Shares on
the CSE. The delisting of the Company from the TSX Venture Exchange and
the listing of the Resulting Issuer on the CSE will be subject to all
applicable shareholder and regulatory approvals.
In connection with the Transaction, the parties intend to complete
one or more private placements to pay for, among other things, the
expenses of the Transaction and to provide working capital pending
completion of the Transaction (the “Financings“). The
terms of the Financings including the securities offered, the size of
the Financings and the issue price per security will be determined in
the context of the market by negotiation between HBGC, the Company, and
any applicable investment dealer.
Further details of the Transaction and the business and operations of
the Resulting Issuer (including applicable financial statements) will
be included in a listing statement to be prepared and filed with the
CSE, and in subsequent news releases and other public filings. Trading
in the Spyder Shares on the TSX Venture Exchange will remain halted
until all necessary filings have been accepted by applicable regulatory
authorities.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
Spyder Cannabis Inc. Dan Pelchovitz President & Chief Executive Officer Contact: Investor Relations Phone: 1-888-504-SPDR (1-888-504-7737) Email: [email protected]
Posted by AGORACOM-JC
at 7:02 AM on Friday, September 6th, 2019
SPONSOR: Spyder Cannabis (SPDR:TSXV)
An established chain of high-end vape stores. Aggressive expansion
plan is already in place that will focus on Canadian retail and US Hemp
derived kiosks in high traffic areas. Click here for more info.
New Report Puts North American Cannabis Market At $47.3B By 2024
The firm is estimating that by 2024, the continent’s cannabis market will be worth $47.3 Billion.
Big-name brands entering the game and celebrity endorsements are cited as important steps toward positioning cannabis as a mainstream product.
In the 134-page paper, the firm analyzes the current state of the
cannabis industry in Canada and the United States to draw key insights
into the industry’s future in the region.
The firm is estimating that by 2024, the continent’s cannabis market will be worth $47.3 Billion.
Daragh Anglim, the firm’s managing director, said the report
offers good reason to believe that both medical and recreational
cannabis will be completely legal in the entire region by that same year
and “integrated across a number of industry verticals from pharma to
food.â€
Key Insights
Although the report places Canada as a global leader and an example
for countries looking to follow suit with cannabis legalization, it also
said the U.S. could soon challenge its northern neighbor’s leadership.
Federal legalization could turn the scale around for the two countries.
Big-name brands entering the game and celebrity endorsements are
cited as important steps toward positioning cannabis as a mainstream
product.
A long-term decline in smoking and a stagnation in alcohol
consumption are helping the cannabis sector accelerate through Big
Tobacco and Big Alcohol investments and alliances, which are expected to
continue to flourish, according to Prohibition Partners.
The cannabis industry is expanding within the beauty market, with many premium retailers offering cannabis products.
The edible revolution is expected to hit big, with great expectations
around Canada’s legalization of cannabis edibles next month.
Publicly Listed Cannabis Companies
The number of cannabis companies listed on stock exchanges has increased substantially.
The CSE is by far the largest lister for cannabis companies, with 156.
Curaleaf (OTC: CURLF), Green Thumb Industries (OTC: GTBIF), Cresco Labs (OTC: CRLBF), Acreage Holdings (OTC: ACRGF) and Harvest Health & Recreation (OTC: HRVSF) top the CSE’s list in terms of market cap.
The TSX follows with 22 listed companies; NASDAQ with 15; and NYSE with nine, where the leaders in terms of market cap are Canopy Growth (NYSE: CGC), Aurora Cannabis (NYSE: ABC), The Scotts Miracle-Gro Company (NYSE: SMG), Aphria (NYSE: APHA) and Hexo Corp. (NYSE: HEXO).
Current, Projected Cannabis Market Values
The estimated value for medicinal cannabis in both Canada and the
U.S. today is of $10.6 billion, and that figure is expected to climb to
$25.2 billion by 2024, the North American Cannabis Report said.
The recreational market is estimated at $6.5 billion, with a climb to
$22.1 billion projected in five years. Both markets are projected to
climb to a cumulative $47.3 billion in 2024, which would represent 177%
growth.
Cannabis Consumers: Key Insights
In both countries, 22% of the population reported having consumed cannabis within the past 12 months.
In the U.S., 19% of users said they use cannabis products to relieve
pain. In Canada, the average age of first-time consumption is almost 19
years old.
Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago
Posted by AGORACOM-JC
at 5:55 PM on Thursday, September 5th, 2019
SPONSOR: Spyder Cannabis (SPDR:TSXV) An established chain of high-end vape stores. Aggressive expansion plan is already in place that will focus on Canadian retail and US Hemp derived kiosks in high traffic areas. Click here for more info.
Canadian Cannabis Sales Growth: An Analysis
Statistics Canada released June data on cannabis retail sales last week. Nationwide, June retail sales hit $91.1M, which implies an annual run-rate of $1.1B in cannabis sales across Canada.
By: SmallCapPower
Statistics Canada reported that Canadian cannabis sales on a retail level for June continue to show growth across Canada, driven by new retail locations in Ontario, British Columbia, and Alberta
In Canada, unadjusted sales of cannabis in stores have grown by 120% between October 2018 and June 2019 (Figure 1). In our opinion, recreational cannabis sales are set to continue growing with the upcoming legalization of edibles expected in October 2019. With the increasing demand for cannabis products, there are concerns for Canada’s ability to avoid a supply shortage. For instance, Ontario, the most populous province in Canada, currently has 25 retail locations (plans to increase to 67 by October 2019). As it is a heavily-concentrated area for cannabis companies, with Canopy Growth and Aphria being headquartered in the province, there is the largest demand for cannabis at about 2.9M users. We believe that there are currently not enough retailers to meet demand and as more retailers come on-line,  nationwide sales are expected to increase.
Based on Statistics Canada’s June retail sales data, retail
sales are at the highest level since legalization back in October 2018
and have reached an annualized run-rate of $1.1B. Retail sales
grew 6% month-over-month (MoM), a decrease of 900 basis points from the
prior month. By our estimates this represents ~20% legal market
penetration of the illicit market, as Statistics Canada reported that in
2018 total sales of cannabis in Canada totalled ~$6B.
Figure 2: Statistics Canada: Sales Figures by Province
Source: Statistics Canada, Ubika
There was an initial bump in retail sales in April 2019,
which coincided with new store openings nationwide particularly in
Ontario, but that growth seems to have tapered off in June.
Notably, Ontario, Quebec, Alberta, and British Columbia have seen MoM
growth of 13%, 8%, 5%, and 18%, respectively, driven by 69 new
brick-and-mortar retail locations opening from April to June (24 in
Ontario, 2 in Quebec, 30 in Alberta, and 13 in British Columbia). Retail
sales are expected to continue to increase as additional retail stores
are added, particularly in Ontario. Currently, Ontario has approximately
1 store per 115,000 people, compared with Alberta, which has 1 store
for every 10,000 people. Ontario has ~740 liquor stores (1 store/20,000
people) and Alberta has ~875 liquor stores (1 store/5000 people). We are
of the opinion that Ontario could support ~1,500 cannabis retail
stores, which would bring store saturation to ~1 store/10,000 people.
Going into the second half of 2019, we expect steady growth in store
openings, in particular Ontario, where the OCS has announced the 42
winners of the cannabis retail lottery, which will bring the total
number of retail locations in Ontario to 67. This highlights that with
an already underserved market, the provinces will have to start
increasing the number retail locations per province to satisfy demand.
Posted by AGORACOM-JC
at 12:02 PM on Thursday, September 5th, 2019
Opening boutique retail locations in Palm Beach Outlets
Located just off the I-95, on Palm Beach Lakes Blvd in West Palm Beach, this location will expand Spyder’s physical footprint to a projected 12 total locations by the end of this year
Potential for additional locations in the future.
Vaughan, Ontario–(September 5, 2019) – Spyder Cannabis Inc. (“Spyder“), an established Canadian cannabis supply and vape retailer, announced today an arrangement through which Spyder will open boutique retail locations in Palm Beach Outlets.
Located just off the I-95, on Palm Beach Lakes Blvd in West Palm
Beach, this location will expand Spyder’s physical footprint to a
projected 12 total locations by the end of this year, with the potential
for additional locations in the future. Spyder will offer first-class
retail sale of products of the highest quality and as permitted by the
governing laws of the State of Florida. Products will be limited to
oils, lotions, bath products and candies.
“Palm Beach outlets is one of the highest traffic outlet malls in
Florida, has received many retail awards and has 100 + brand stores with
Whole Foods as an anchor tenant,” stated Daniel Pelchovitz, CEO and
President of Spyder. “This move is part of Spyder’s strategic plan to
develop a robust, planned network of boutique retail stores and kiosks
across the US focused on the specific health and wellness aging and
athletics sectors.”
Spyder intends on partnering with a variety of developers and
realtors to sign lease agreements for prime real estate in strategically
located in high traffic areas of malls, near senior living centres, and
sporting venues throughout the U.S. starting in Florida, California,
New York and Michigan state. These boutiques will stock Spyder’s SPDR
(R) branded and infused products developed for an aging, health and
wellness demographic. Spyder will offer a wide array of product
offerings including; muscle balm, face oil, body lotion and bath salts,
as well as wellness tinctures, capsules and sprays.
About Spyder Cannabis
Founded in 2014 Spyder is an established chain of three high-end vape
stores, and two cannabis accessory stores, in Ontario, with locations
in Woodbridge, Scarborough, Burlington, Pickering and Niagara Falls. The
Spyder brand is defined by its high-quality proprietary line of
e-juice, liquids and exclusive retail deals, dispensed in uniquely
designed stores creating the optimal customer experience. Spyder is
building off this leading retail, distribution and branding eCig and
vapes company and is pursuing expansion into the legal cannabis and hemp
derived market. Spyder has developed a scalable retail model with plans
to create a significant footprint with targeted and disciplined retail
distribution strategy focusing on Canadian retail and U.S. boutique
retail and kiosks in high traffic peripheral areas
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
For more information, please contact:
Spyder Cannabis Inc. Dan Pelchovitz President & Chief Executive Officer Contact: Investor Relations Phone: 1-888-504-SPDR (1-888-504-7737) Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This news release includes statements containing certain
“forward-looking information” within the meaning of applicable
securities laws (“forward-looking statements”). Forward-looking
statements are frequently characterized by words such as “plan”,
“continue”, “expect”, “project”, “intend”, “believe”, “anticipate”,
“estimate”, “may”, “will”, “potential”, “proposed” and other similar
words, or statements that certain events or conditions “may” or “will”
occur..
These statements are only predictions. Various assumptions were used
in drawing the conclusions or making the projections contained in the
forward-looking statements throughout this news release. Forward-looking
statements are based on the opinions and estimates of management at the
date the statements are made. Any number of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
Posted by AGORACOM-JC
at 10:16 AM on Thursday, August 29th, 2019
SPONSOR: Spyder Cannabis (SPDR:TSXV)
went public just a couple of months ago and hit the ground running
with 5 operating Canadian retail locations – and a 6th one on the way
via an 8,000 sq ft super store in Alberta. Most companies would be
ecstatic to have this number of locations – but Spyder just announced a
major move into the United States, with a 5 location deal for boutique
stores up and down the US Eastern seaboard. The news gets better. If
all goes well with these 5 locations, the US outlet partner has a total
of 39 locations across 20 states for Spyder to grow into to. Click here for more info.
Alberta squeaks out title as Canada’s top cannabis market with $123.6M sold
Ontario, Quebec not far behind in new data showing sales since legalization
Gord Nichol shows off some of the products he bought inside RELM
Cannabis Co., in Burlington, Ont. on April 1. Alberta narrowly squeaked
out as Canada’s top cannabis market, surpassing Ontario by a matter of a
few million. (Dan Taekema/CBC)
Albertans pull out their wallets for legal weed more often than other Canadians, new data shows.
Statistics Canada has published new information on the amount sold at cannabis store across the country, from legalization in October 2018 to June 2019.
The sales data shows that Alberta comes out as the top legal cannabis market in Canada, with more than $123.6 million in sales.
Alberta narrowly squeaked into the top spot with Ontario close behind at $121.6 million, followed by Quebec at $119.2 million.
‘Best job of any province,’ retailer says
Alberta’s quick pick-up in the cannabis market can be attributed to
the province’s regulator — Alberta Gaming Liquor and Cannabis (AGLC)
— argues Darren Bondar, who runs a national chain of cannabis stores out
of Calgary.
“Alberta and the AGLC have done the best job of any province in the country,” the Spirit Leaf CEO said.
He notes AGLC had experience with private liquor stores, which helped
them co-ordinate the opening of 275 private cannabis vendors.
The province also runs a public website that sells and mails out cannabis products.
Ontario may soon surpass Alberta in sales, however. The province was
slow in getting stores open but expects to see another 50 open this
fall.
Another of Canada’s most populous provinces, British Columbia, saw
slow sales, coming ninth on the list. Smaller provinces of Nova Scotia
and New Brunswick, saw more money spent.
Canada’s first cannabis competition
Alberta can also boast the country’s first legal cannabis competition
when Hempfest Expo opens this October in Calgary. A big draw for other
international cannabis hotspots, like Colorado and Amsterdam,
expectations for Hempfest Cup are high.
The competition runs Oct. 11-12 at Stampede Park, and will boast
entries from big and little growers alike — even Canadians who are
(legally) growing plants in their homes or yards. Registration for the
event closes Sept. 12.
Posted by AGORACOM-JC
at 7:39 AM on Thursday, August 29th, 2019
Entered into a purchase agreement with an arm’s length third party to acquire the Vendor’s interest in a development permit issued by the City of Calgary for the operation of a retail cannabis store and an assignment of the leased attached to such Development Permit
Vaughan, Ontario–(August 29, 2019) – Spyder Cannabis Inc. (TSXV: SPDR) (“Spyder” or the “Company“), an established Ontario retail operator, is pleased to announced it has entered into a purchase agreement (the “Agreement“) with an arm’s length third party (the “Vendor“) to acquire the Vendor’s interest in a development permit issued by the City of Calgary for the operation of a retail cannabis store (the “Development Permit“) and an assignment of the leased attached to such Development Permit (the “Lease Assignment“; together with the Development Permit, the “DP Assets“).
Pursuant to the Agreement, the purchase price for the DP Assets will
be $175,000, which will be payable through the issuance of 3,000,000
common shares of Spyder (“Spyder Shares“) at a deemed
price of $0.0583 per share. The closing of the transactions contemplated
by the Agreement is subject to the satisfaction of a number of
conditions, including, but not limited to, receipt of all required
regulatory approvals including the approval of the TSX Venture Exchange,
the Company’s satisfaction of its due diligence results, inspections
and investigations and obtaining landlord’s consent to the Lease
Assignment.
About Spyder
Founded in 2014 Spyder is an established chain of three high-end vape
stores in Ontario, with stores located in Woodbridge, Scarborough and
Burlington. The Spyder brand is defined by its high-quality proprietary
line of e-juice, liquids and exclusive retail deals, dispensed in
uniquely designed stores creating the optimal customer experience.
Spyder is building off this leading retail, distribution and branding
eCig and vapes company and is pursuing expansion into the legal cannabis
market. Spyder has developed a scalable retail model with aggressive
expansion plan to create a significant retail footprint with targeted
and disciplined retail distribution strategy focusing on Canadian
locations in high traffic peripheral areas.
Cautionary Statements
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future events or
future performance. The use of any of the words “could”, “intend”,
“expect”, “believe”, “will”, “projected”, “estimated” and similar
expressions and statements relating to matters that are not historical
facts are intended to identify forward-looking information and are based
on the Company’s current belief or assumptions as to the outcome and
timing of such future events. Actual future results may differ
materially. In particular, this release contains forward-looking
information relating to the satisfaction of the closing conditions
contemplated under the Agreement. Various assumptions or factors are
typically applied in drawing conclusions or making the forecasts or
projections set out in forward-looking information. Those assumptions
and factors are based on information currently available to the Company.
Risk factors that could cause actual results or outcomes to differ
materially from the results expressed or implied by forward-looking
information include, among other things: the TSX Venture Exchange
declining to accept the transaction, the landlord not consenting to the
Lease Assginment, changes in tax laws, general economic and business
conditions; and changes in the regulatory regulation. The Company
cautions the reader that the above list of risk factors is not
exhaustive. The forward-looking information contained in this release is
made as of the date hereof and the Company is not obligated to update
or revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue reliance
on forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
For more information, please contact:
Spyder Cannabis Inc. Dan Pelchovitz President & Chief Executive Officer Telephone: (905) 265-8273 Email: [email protected]
Posted by AGORACOM-JC
at 9:15 PM on Sunday, August 25th, 2019
WHY SPYDER CANNABIS?
Targeted and disciplined retail distribution strategy focusing on high quality, high traffic peripheral areas
Focused strategy aimed at vertical, horizontal and geographic diversification with demonstrated operations expertise and proven retail roll-out
Opened two additional stores in July for a total of 5 locations (11 by end of year)
Signed its first hemp agreement for the supply of full spectrum products to support Spyder’s debut of a hemp infused product line to be sold across the U.S. under its SPDR(R) brand
Received approval of development permit for a flagship cannabis retail location in the heart of Calgary
Announced an arrangement through which
Spyder will open 5 hemp boutique locations with potential for more at
Tanger Outlet centers throughout the United States
Agreement will expand Spyder’s physical
footprint to a projected 11 total locations by the end of this year,
with the potential for additional locations in the future
Tanger Outlet operates 39 upscale
outlet shopping centers located in 20 states coast to coast and will
allow us access to millions of consumers
WATCH OUR RECENT INTERVIEW
FULL DISCLOSURE: Spyder Cannabis is an advertising client of AGORA Internet Relations Corp.
Posted by AGORACOM-JC
at 10:09 AM on Tuesday, August 20th, 2019
SPONSOR: Spyder Cannabis (SPDR:TSXV)
went public just a couple of months ago and hit the ground running
with 5 operating Canadian retail locations – and a 6th one on the way
via an 8,000 sq ft super store in Alberta. Most companies would be
ecstatic to have this number of locations – but Spyder just announced a
major move into the United States, with a 5 location deal for boutique
stores up and down the US Eastern seaboard. The news gets better. If
all goes well with these 5 locations, the US outlet partner has a total
of 39 locations across 20 states for Spyder to grow into to. Click here for more info.
Statistics Canada releases a bong full of new cannabis data
Statistics Canada released a whack of statistics on August 15 that shed some insight into the almost five million Canadians who consumed cannabis during the first half of 2019.Â
About 77% of Canadians who said they used cannabis during the first half of 2019 consumed dried cannabis, while 26% consumed edibles. Other reported ways of consuming cannabis were as liquid concentrates (20%), cannabis oil cartridges or vape pens (19%), and hashish or kief (16%).Â
Among the findings were that more men consume cannabis than do women,
and that men consume cannabis more frequently than women. Men also
consume cannabis for non-medical reasons more than women do.
Cannabis/Shutterstock
Another big takeaway was that 42% of Canadians who consumed cannabis
said that they bought at least some of their cannabis from black-market
dealers in the first half of the year.
The stats were all part of Statistics Canada’s National Cannabis
Survey (NCS), which continued to show that males and females older than
age 15 differ in how they obtain and consume cannabis products.
Females, for example, more often reported getting cannabis from
family and friends than their male counterparts, That may explain why
fewer females said they paid for the cannabis they consume. The study
didn’t go into how many people stole cannabis, although it noted that 4%
got their cannabis in an unspecified way.
Females are more likely to use an alternative method to consume cannabis, such as putting it on the skin or under the tongue.
Males are more likely to report consuming dried cannabis and hashish.
To monitor cannabis consumption before and after Canada legalized
cannabis last October, the nation’s number cruncher has been conducting
the NCS every three months since 2018.
Males almost twice as likely as females to have consumed cannabis
Males (21%) were almost twice as likely to have used cannabis in the
first half of 2019 as females (12%), according to the NCS. This held
true for every age group except seniors aged 65 and older.
Almost three in five females reported never having consumed cannabis (59%), compared with just over half (51%) of males.
About one-third of Canadians reported having tried cannabis in the past but are not current users.
Males more likely to use cannabis daily or almost daily
Statistics Canada said in its August 15 release that research has
shown that using cannabis regularly and over a long period of time has
been associated with the “risk of dependence and poor mental healthâ€
According to combined data from the first half of 2019, males (8%)
were twice as likely to report daily or almost daily use as females
(4%). Males were also more likely than females to consume cannabis on a
weekly and a monthly basis but equally as likely to report occasional
use (defined here as once or twice over the three-month reference
periods).
Males are more likely to use cannabis for non-medical reasons
Statistics Canada asked Canadians to say whether they used cannabis
for medical purposes and had a medical document, for medical purposes
without a medical document or simply for fun, or what some call
recreational use.
Just over one-fifth of males aged 15 and older reported consuming
cannabis in the first half of 2019. More than half of these males (52%)
reported using cannabis exclusively for non-medical reasons, while
about 30% reported using it for both medical and non-medical reasons,
and about one-fifth reported medical reasons (with or without medical
documentation).
Meanwhile, 12% of females said that they consuming cannabis in the
first half of 2019. Their reasons were fairly evenly split, between
those who said it was for non-medical use, medical use or a mix of
both.
Cannabis products and consumption methods
About 77% of Canadians who said they used cannabis during the first
half of 2019 consumed dried cannabis, while 26% consumed edibles. Other
reported ways of consuming cannabis were as liquid concentrates (20%),
cannabis oil cartridges or vape pens (19%), and hashish or kief (16%).
More males (82%) said they consumed dried cannabis, compared with
females (67%). Males (19%) were also more likely to have consumed
hashish or kief, compared with females (12%).
While a majority of both males and females use dried cannabis, for
49% of males and 41% of females, it is the only form of cannabis that
they consumed.
Conversely, females (23%) were almost twice as likely as males (12%)
to report using only products other than dried cannabis. Other products
include edibles, oil cartridges and vape pens.
Smoking remains the most common method of consuming cannabis, with
68% of males and 62% of females choosing this method in the first half
of 2019, according to Statistics Canada.
At 14%, females were almost three times more likely than males (5%)
to have consumed cannabis through methods such as the application of
products on the skin or under the tongue.
Buying cannabis
Males are more likely to purchase cannabis while females are more likely to get it from family and friends for free.
Approximately one-quarter of Canadians who consumed cannabis in the
first half of 2019 did not pay for it, with female consumers (29%) more
likely than males (22%) to consume it without having paid for it,
according to the survey.
Nearly half of all cannabis consumers (48%) reported buying at least
some of their cannabis from a legal source, such as a legally authorized
retailer or an online licensed producer.
There was 42%, however, who said that they bought at least some of
their cannabis from illegal sources, such as a drug dealer, while 37%
said that they used cannabis that they got from, or shared among,
friends and family.
Growing cannabis, either by the users or by someone else, was a
supply source for about 8% of consumers, while 4% reported another
source, although Statistics Canada did not specify what that source
might be.
For the first time, analysis of the sources of cannabis by type of
consumer (those who obtained it from one source and those who obtained
it from multiple sources) is available. This more detailed examination
revealed that 29% of all current users got their cannabis exclusively
from legal sources.
In general, males and females access cannabis from the same sources
and in similar numbers, but with one notable difference: a relatively
larger proportion of females (42%) than males (33%) report friends and
family as their cannabis source.
Quality and safety remain foremost consideration when deciding where to buy cannabis
Three-quarters of Canadians (76%) who consumed cannabis in the first
half of 2019 said quality and safety was an important consideration when
buying it, while 42% primarily considered price.
Other important factors when buying cannabis were accessibility, location and availability of a preferred potency.
While both males and females share many of the same considerations
when obtaining cannabis, there are a few differences. For example,
females (22%) were twice as likely as males (11%) to cite sales support
as being important, while proportionally more males (19%) placed a
higher value on anonymity and discretion than did females (12%). More
males (20%) said that availability of a preferred strain of cannabis was
important than did females (11%.)
Males are more likely to report that they will use cannabis in next three months
More males (25%) than females (16%) said they thought that they would
use cannabis in the next three months. That is higher than the 21% of
males and 12% of females who currently consume cannabis.
Virtually all Canadians (99%) who reported having never consumed
cannabis indicated that they will not use cannabis in the next three
months. In contrast, most daily or almost daily (94%) and weekly (87%)
users think that they will continue to consume cannabis over the next
three months and at a similar pace.
Former users (12%) and those who use cannabis less than once a month
(27%) were more likely to report that they will increase their
consumption in the coming three months than were people who have never
used cannabis (1%).
Second quarter 2019: Almost five million Canadians report using cannabis
From mid-May to mid-June 2019, about 4.9 million or 16% of Canadians
aged 15 and older reported using cannabis in the previous three months,
according to Statistics Canada.
This was unchanged from data collected from provinces a year ago,
when recreational cannabis use was illegal. It is also unchanged from
the last time estimates for from territorial capitals were collected.
In the second quarter of 2019, 24% of Nova Scotians and 20% of
Albertans reported using cannabis in the previous three months. That is
above the average for the rest of Canada (other provinces and
territorial capitals combined).
Cannabis use in the previous three months was also above the national
average in all three territorial capitals: Whitehorse (24%),
Yellowknife (30%) and Iqaluit (32%). Meanwhile, current use was lower
than the national average in Quebec (10%).
Cannabis consumption in the second quarter of 2019 was essentially
unchanged from the same quarter in 2018, prior to legalization. However,
the number of Canadians aged 65 and older reporting cannabis use
increased from 3% to 5% over this period, while cannabis use among 15-
to 64-year-olds was stable (ranging from 10% to 25%, depending on the
age group).
Posted by AGORACOM-JC
at 11:34 AM on Thursday, August 15th, 2019
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Cannabis industry overview: all you need to know
Consumers around the world spent around $12.2 billion on legal cannabis in 2018, according to marijuana research firm BDS Analytics, rising from around $9.5 billion in 2017 and $6.9 billion in 2016.
The firm predicts spending this year will jump 38% to $16.9 billion and believes the industry will deliver a compound annual sales growth of 27% from 2018 to 2022, at which time it expects the market to be worth over $31 billion.
Consumers around the world spent around $12.2 billion on legal
cannabis in 2018, according to marijuana research firm BDS Analytics,
rising from around $9.5 billion in 2017 and $6.9 billion in 2016. The
firm predicts spending this year will jump 38% to $16.9 billion and
believes the industry will deliver a compound annual sales growth of 27%
from 2018 to 2022, at which time it expects the market to be worth over
$31 billion.
Analysts at Jefferies, which reported similar spending figures for
2018 as BDS, believe the legal cannabis market could be worth as much as
$130 billion by 2029. However, that forecast assumes both medicinal and
recreational marijuana is broadly legalised in further major markets
like the US, Europe and Latin America, and that established industries
like pharmaceuticals, beauty and drinks producers start using it in new
products. If the legal picture remained largely the same as it is now,
then the market’s estimated value in a decade is just $50 billion –
which is a huge jump from where sales sit now but ultimately way below
the full potential that could be delivered if the drug was embraced
further.
It is clear the market is set for exponential growth over the coming
years. The global market for illegal marijuana is estimated to be worth
somewhere in the region of $150 billion to $200 billion, so the
legalised market has all that value to chase in addition to new
opportunities, such as formulating new alternative cannabis-based
products.
What is driving the cannabis market forward?
Below are some of the key reasons why the legalised cannabis market is driving forward.
Deregulation and acceptance
From a recreational standpoint, marijuana is the most widely used
drug in the world. Although it still won’t be for everyone, legalisation
is attracting new types of users – and most of them have already tried
marijuana before. According to Deloitte, legalisation is expected to
‘attract more of a conservative experimenter’, those with bigger incomes
and higher education than the typical user using the black market
today. Still, Deloitte reckons that nearly three quarters of all
consumers likely to use legalised marijuana have had prior experience
with recreational cannabis, and over 40% have used it in the past five
years.
There are only two countries that have formally legalised
recreational use of marijuana. Uruguay became the first country to fully
legalise marijuana back in 2013 and was followed by Canada last year.
However, recreational cannabis laws are relaxed in many other countries,
such as in the Netherlands and Portugal where the drug has been
decriminalised, and over 40 countries have legalised medicinal cannabis
in some form, some of which are outlined below:
Argentina
Australia
Canada
Chile
Colombia
Croatia
Cyprus
Czech Republic
Denmark
Finland
Germany
Greece
Irael
Italy
Jamaica
Luxembourg
Macedonia
Malta
Mexico
Netherlands
Norway
Peru
Poland
South Africa
South Korea
Sri Lanka
Switzerland
UK
Uruguay
Zimbabwe
The world is hoping Canada will be able to demonstrate how a fully
legalised marijuana industry can form part of a modern, industrialised
nation in the western world. But the next trigger moment that many are
waiting for is federal approval in the US. Medicinal marijuana has been
legalised by over 30 US states and a further 11 have approved
recreational use with more expected to follow in the coming years.
However, it is yet to be legalised at the federal level, which would
apply one law across the entire country rather than forcing companies to
operate on a state-by-state level.
The picture in Europe is similar. Individual countries are pushing
ahead with their own policies on marijuana use while the law at the EU
level lags behind. The European Monitoring Centre for Drugs and Drug
Addiction says ‘cannabis should be allowed only for “medical and
scientific purposes”‘ and that most countries still regard possession as
a crime that can result in imprisonment. Yet, it adds that several
member states have reduced their penalties for cannabis users, and some
have permitted supply of the drug, which it admits is opening up
discussion. It says European policy is complicated by ‘conflicting
claims’, including decriminalisation or legalisation, medical or
recreational use, and policy success or failure. The initial sign is
that Europe is warming more to reducing the harm of drugs and
decriminalising them, but is further away from embracing the drug in the
same way North America has.
Acceptance of marijuana use is growing. Mexico and Argentina are
leading the charge in Latin America. South Africa and Zimbabwe have
taken the first steps in Africa, while South Korea recently became one
of the first major Asian nations to take steps to make medicinal
marijuana legal.
Billions of investment
There are serious sums being ploughed into this new market as
companies try to get ahead of the game. Data from Dealogic shows there
was over $10 billion worth of mergers and acquisitions (M&A)
activity in the marijuana industry last year – seven times higher than
2017 and not far off the value of the entire legalised cannabis market
worldwide.
Much of the money is coming from well-regarded, established
businesses operating in the pharmaceutical, tobacco, alcohol and
consumer goods businesses that are coming under increasing pressure to
formulate a marijuana strategy as acceptance grows. For example, Constellation Brands,
the maker of Corona beer, completed the biggest deal to date in the
industry after investing $4 billion into Canopy as it pursues new
opportunities in areas like cannabis-infused beverages.
Some have taken a more collaborative approach, with the likes of Molson Coors working with Canadian grower HEXO to develop cannabis-infused drinks, and Canadian cannabis giant Tilray teaming up with both alcohol giant ABInBev and pharmaceutical powerhouse Novartis.
Consolidation among cannabis pure-plays is expected to accelerate over
the coming years, as is the amount of cross-sector investment coming
from other industries.
New cannabis-based products will also widen the appeal of the market
and the growth opportunity for both medicinal and recreational
marijuana. The key for the medicinal market will be providing proven
cannabidiol (CBD) products that can be safely dosed and delivered
without the need to smoke. For the recreational market, where smoking
marijuana will remain (at least in the short term) the preferred method
of choice, the possibilities are endless – baked goods, drinks, olive
oil and honey are just some of the products being infused with cannabis
at present. These ‘edibles’, as they are known, will start to take off
in Canada this year after the government forbid the sale of them during
the first year of recreational use being legalised.
Developing new cannabis products will be key to adoption and uptake.
The main reasons that marijuana users are likely to move to the legal
market is because they expect to get things the black market can’t
offer: such as guaranteed and verifiable quality, new products, or
because they have more control over the potency and type of cannabis
product they purchase.
What could hold the cannabis market back?
Below are some of the key reasons why the legalised cannabis market could be held back.
Regulatory outlook
Although it is highly likely that more countries will embrace
marijuana in the coming years there are several major hurdles to clear.
Having marijuana legalised at the federal level in the US is the key
breakthrough many are waiting for. Letting states manage their own
legislation over the matter causes a string of problems for the market.
Many US cannabis companies can’t get access to banking or financial
services from large lenders in the country who are unwilling to lend to
what is regarded as a ‘grey area’. Marijuana grown in one state can not
be transferred and sold in another, which is one of the key reasons for
the acceleration in consolidation as firms race to buy their way in to
new markets. Marketing, distribution and security laws can also differ
state to state. The complex mismatch of legislation ultimately creates
an uncertain outlook for the US market and raises the costs of
operation.
It is important to stress that there is no guarantee marijuana will
be legislated at the federal level. Although many are expecting it to be
a hot topic in the 2020 election it is unlikely to be a make-or-break
policy area for candidates, especially if they can please both sides of
the argument (by raking in the profits of marijuana through state
legislation without publicly approving it at the federal level). Until
then, it is unlikely the current Republican government, regarded as far
less upbeat on the drug compared to their Democrat rivals, will look to
legalise marijuana at the federal level.
Those countries that have already embraced medicinal marijuana are
the most likely to legalise it at the recreational level. But many
countries that have embraced medicinal marijuana have done so
reluctantly. For example, the UK’s laws on medicinal cannabis are still
very strict and were only introduced following huge media and public
pressure over the case of a very ill 12-year-old boy who had found an
effective treatment using CBD oil. And yet, the UK is the largest
producer of medicinal cannabis in Europe – all of which it is more than
happy to export to the rest of the world.
The attitude in Europe is also vastly different to that of North
America. This is demonstrated by vaping, which in the UK is treated as a
smoking cessation aide aimed at getting people to quit smoking
cigarettes while in the US it is widely marketed much the same way
cigarettes were all those decades ago. While recreational use is common
in some member states there is no appetite to regulate it at the
EU-level. Medicinal marijuana will play a bigger role in Europe over the
coming years but there is unlikely to be any major shift in
recreational laws. While discussion in the US is around how far to take
legalisation and commercialisation, talk in Europe is more on
decriminalisation and reducing harm.
There is little doubt that legislation will warm to marijuana as time
goes on, but there is little certainty over how it will be embraced and
what regulatory model will be deployed.
Financing
As mentioned, the state-by-state management of the marijuana industry
in the US has made it difficult for some to get hold of proper
financing. While a handful of companies such as Tilray, Aurora and Canopy
have emerged as early leaders, none of them are profitable and yet all
of them require the huge sums needed to build an entirely new market and
supply chain. Acquiring and developing the vast land needed to grow the
product, the processing equipment, distribution capabilities and sales
channels is not cheap.
This is one of the reasons why many of the larger players have gone
public so early on, so they can access money from the markets. This has
not been the case in the past: many big tech names refrained from going
public during the tech boom because they had access to plenty of cash
from the banks and private equity. But even the lack of federal law to
govern marijuana in the US complicates things for publicly-listed firms.
For example, a publicly-listed company in Canada cannot operate a
cannabis operation in the US because it is not approved at the federal
level, but a publicly-listed firm in the US can operate anywhere so long
as it is legal there.
With that in mind, many cannabis stocks have funded mergers and
acquisitions using stock, diluting existing investors. Plus, many have
issued convertible notes that provide an immediate injection of cash
into the business but ultimately allow lenders to invest at a huge
discount later on, again diluting other shareholders and placing
pressure on share prices.
With the largest cannabis stocks valued on their future growth
potential rather than past performance, getting access to the crucial
finance needed to deliver that growth is vital.
Taxation and the black market
It can be forgotten that legalising cannabis is about undermining
illicit trade and bringing existing users out of the black market rather
than creating new users, although this will undoubtedly be one
consequence. For this to be successful, governments need to delicately
balance efforts between regulating the industry without placing it under
a huge cost burden.
Drug dealers don’t concern themselves with matters like tax, minimum
wages, cultivation licenses or sales permits. They will always be able
to produce marijuana at a far cheaper cost than a legal operation but
that does not mean legal cannabis can’t be profitable, just that they
won’t enjoy the vast margins enjoyed by illicit traders.
How legalised cannabis – particularly for the recreational market –
is priced will be key to attracting consumers. Data from Deloitte
suggests those currently buying cannabis through illegal channels are
willing to pay more for legal cannabis, so long as it is of a
certifiable quality. However, if legal cannabis is significantly pricier
than what can be bought from a drug dealer then there is a real risk
that many will return to the black market. This could end up being a
volatile cycle: if legal prices rise and waves of customers return to
the black market then there will be an oversupply of legal cannabis,
which in turn would eventually bring the price down again and attract
people back from the black market. In fact, prices in the black market
could be much more stable than that of the legal market. However, this
will not be the case in the medicinal market as it will offer products
designed for specific ailments that won’t be freely available on the
black market. This will also protect the ability of medicinal marijuana
products to charge a much higher price point than a recreational joint
or cannabis cookie.
It is clear, however, that creating a legal cannabis market will not
fully replace existing black markets overnight. Mexico is advancing
toward legalisation and that would represent a significant moment as it
would be the first country that has a prolific drug manufacturing
problem to do so. Still, Vicente Fox, the former president of Mexico
(2000-2006) and now board member of Canadian cannabis company Khiron Life Sciences,
has said legalisation in Mexico as well as the US (where most Mexican
drugs are smuggled into) will only cut around 40% of income flowing to
cartels – a sizeable chunk but far from the levels needed to cripple the
black market.
Governments need to ensure they do not overtax an industry that
already needs large sums to grow and look at the wider picture when
legislating the industry, such as how it could affect healthcare, social
and justice budgets.
Regulatory redtape
When a new industry is emerging there is a battle between industry
and government over who shapes the regulation and who responds to it.
More often than not, industry plays a major role in deciding how it is
regulated through lobbying and governments simply draw the lines of
where the regulation stops. For example, governments around the world
are still trying to figure out how to rein in the likes of Google and Facebook,
who have enjoyed huge regulatory freedom up until recently, and
cryptocurrencies are far from a clean-cut issue but are still being used
by people everyday.
The same will apply to the cannabis industry, which needs to convince
governments not to overburden it. But the health and social
implications of legalising any drug means governments will not allow the
industry to steam ahead like it has with big tech or cryptocurrencies.
However, governments and policy-makers move at a snail’s pace compared
to entrepreneurship and business, and this will slow the progress of
legalised cannabis firms. This has already proven true in places that
have embraced marijuana: initial tax revenues in Canada and California
were much lower than expected during the first year of legalisation
because regulatory red tape stopped the industry from realising its
potential. Big backlogs of sales permits and cultivation licenses were
to blame, demonstrating the infrastructure is not yet in place.
Finding the perfect formula that allows cannabis to be effectively
regulated without hampering the business opportunity will not be easy.
Bricks vs clicks
At a time when bricks-and-mortar stores are falling out of favour and
retailers are shifting their operations online, physical retail outlets
– recreational stores or medical dispensaries – are proving crucial for
legal marijuana sellers in North America. Around 95% of all legal
cannabis sales in some Canadian provinces including Quebec and Nova
Scotia are completed in a physical store with just 5% being bought
online. The need to see and feel the product and the desire to discuss
what is on offer with someone in-the-know is proving an important
selling point for consumers. This is a similar trend to what has
happened with vaping stores, which offer advice and the ability to try
different flavours or strains.
This model means another huge expense for the industry. Running
stores, hiring staff and investing in the logistical and distribution
capabilities needed to supply a network of stores is not cheap, and that
is exacerbated by the fact consumers expect them to be open for long
hours.
The need for a physical place to pick medicinal marijuana is greater
than the need for a store to buy recreational cannabis, in the same way
people prefer to go to a pharmacy to pick up a prescription. However,
more recreational consumers are likely to purchase online once they have
become familiar with the market and some companies are already banking
on this, such as Namaste Technologies which is being dubbed the ‘Amazon
of cannabis’. Although an online model will reduce the costs compared to
opening and running a network of stores, it adds greater pressure on
the need to have the ability to deliver products far and wide – and
quickly. Deloitte has found two-thirds of those willing to purchase
cannabis online expect it to be delivered for free and within two days.
Cannabis is the next big thing but is far from a risk-free ride
There is very good reason to be bullish on the future of cannabis but
finding where the true value in the market at this early stage is
difficult for investors. The biggest cannabis stocks like Tilray, Aurora
and Canopy have already been assigned huge valuations running into the
tens of billions of dollars when they only make hundreds of millions in
revenue each year and report large losses. As was the case with
companies like Twitter to Tesla, it will all be about maintaining
momentum and delivering growth over the coming years and turning to a
profit before the money runs out.
Others may be more attracted to the stocks from the pharmaceutical,
alcohol, tobacco or consumer goods industries that have dipped their toe
into the market because they have established businesses to fall back
on and the financial firepower needed to propel legal cannabis into the
mainstream.
It will be a slow ride for investors looking to get in early and far
from a risk-free journey. Many companies are spending big to carve out a
lead in the market but there is no guarantee that any of them will make
it.