Mark Leibovit’s Cannabis Newsletter

Emerald Health, GreenGro, General Cannabis and more reviews...

Shared by: VRTRADER CANNABIS/VICE LETTER

Emerald Health Therapeutics Inc. (EMH.V: TSX Venture) amended its engagement letter with Dundee Capital Partners following an agreement to increase the size of the bough deal to $12 million from $10 million. Dundee agreed to purchase 8,900,000 units at $1.35 a unit. If the entire over-allotment offered to Dundee is exercised, Emerald will generate $13.8 million in gross proceeds.

Greengro Technologies, Inc. (GRNH) released plans for a PV solar glass greenhouse designed to an industrial cannabis cultivator’s requirements. Its Vertical HydroGarden subsidiary sells hydroponic supplies.

General Cannabis (CANN) filed a Form 4 after Michael Kelsey, a 10% owner, sold 1,290,090 at $2.75 a share. This transaction was through his holding company that still owns 1,290,090 shares. On December 18, 2013, Kelsey acquired BGBW and became the beneficial owner of 2,500,000 shares of common stock of General Cannabis Corp.

Arcturus Growthstar Technologies Inc. (AGSTF) announced a name change to Future Farm Technologies Inc. The Canadian shares will start trading under the symbol, FFT.

Aurora Cannabis (ACB.V: TSX Venture) (ACBFF: OTC) and Radient Technologies (RTI.V: TSX Venture) provided an update on its previously announced collaboration arrangements. In late 2016, the companies signed a memorandum of understanding to evaluate an exclusive partnership for the joint development and commercialization of superior and standardized cannabinoid extracts for Canadian cannabis market. On January 4th, the companies formed a joint venture to confirm the effectiveness of Radient’s MAP technology for cannabis extraction. Initial work under the study is ongoing.

Emblem Corp. (EMC.V: TSX Venture) (EMMBF: OTC) closed its previously announced bought deal private placement of 4,385,668 special warrants (at $3.63) for almost $16 million in aggregate gross proceeds. The offering was led by PI Financial on behalf of a syndicate of underwriters that included Canaccord Genuity and GMP Securities. The offering included 552,874 special warrants that were issued to the underwriters as part of the previously granted option to purchase up to an additional 15% of the base offering of special warrants.

Canopy Growth (WEED.TO: TSX) is now trading under the symbol “WEED” on the TSX exchange. The company’s acquisition on Mettrum Health has been completed and Mettrum is now a subsidiary of Canopy Growth.

mCig Inc., (MCIG) entered into legally binding subscription agreements with CEO Paul Rosenberg, Chairman and CFO Michael Hawkins for the issuance of 25,000 newly issued Series A Preferred shares each. Under the agreements, Rosenberg and Hawkins will purchase these shares for $200,000 ($100,000 each), or $4.00 per share, which equates to $0.40 per common share upon conversion.

American Cannabis Company, Inc. (AMMJ) announced two new clients in Pennsylvania. The company now has five clients that operates in different regions of the state.One of the new clients is applying for a retail dispensing license, and retained AMMJ to advise them in responding to state application materials, developing standard operating procedures for their proposed retail operations, and, design services for their proposed dispensary location. The second client is applying for licensure in cannabis cultivation, cannabis product manufacturing, and retail dispensing. AMMJ will assist with strategic planning initiatives, as well as with the completion of their state application.

Mettrum Health Corp. (MT.V) and Canopy Growth (CGC.TO) announced that the Ontario Superior Court of Justice approved the proposed acquisition by Canopy Growth. The deal is expected to close after the market closes today. Mettrum will become a wholly-owned subsidiary of Canopy Growth and trading of Mettrum’s common shares on the TSX Venture Exchange will be halted and delisted from the exchange in the normal course shortly thereafter.

MassRoots, Inc. (MSRT) recruited Tom Angell to serve as its Senior Political Correspondent. Angell has worked on the front lines of cannabis policy reform efforts for more than 15 years, including as chairman of Marijuana Majority. Since 2014, Angell has been a leading contributor to Marijuana.com, where he covered state and national policies and the politics of cannabis.

United Cannabis Corporation (CNAB) announced that it and its Jamaica-based subsidiary (Cannabis Research & Development) signed a Letter of Intent with the Caribbean Institute of Medical Research to collaborate on advancing clinical research on medical cannabis. Per the terms of the agreement, studies will be conducted under the supervision of the CARIMER team. The team will be responsible for coordinating and initiating the research and clinical trials for the Prana P1 thru P5 products.

GW Pharmaceuticals (GWPH) announced that it will report first quarter financial results for the period that ended on December 31st on February 7th. The company will also host a conference call shortly after reporting results.

General Cannabis (CANN) announced that Mark Green was elected to its Board of Directors. Management believes that this addition better positions General Cannabis for a potential future listing application with a national securities exchange. Green has real estate investing experience in both the public and private markets. Green was most recently a Managing Director at Leucadia National, a diversified holding company. He received his MBA from Columbia Business School.

GrowGeneration (GRWG) sells specialty retail hydroponic and organic gardening products via 10 locations in Colorado, 1 in California, and 1 in Nevada. The company is aggressively expanding its presence to offer a one-stop, personalized shopping solution for commercial and home growers. Its business plan is also focused on e-commerce in addition to its brick-and-mortar strategy.

Cannabis Sativa (CBDS) filed a Form 4 after CFO Catherine Carroll was issued 50,000 shares for services. 12,500 shares will vest on March 31st, June 30th, September 30th, and December 31st. After this grant, Carroll owns 278,090 shares.

Do you subscribe to the Cannabis/Vice Letter?

Love them or hate them, Vice stocks make investors money, which is why most people are in the stock market to begin with. “Sin” stocks—or maybe you prefer the term “vice” better—are generally made up of publicly traded companies that deal with alcohol, arms, sex, tobacco, and gambling. And whether the economy is doing well or not, chances are good that consumers will buy cigarettes, drink alcohol, go to strip clubs, and buy guns. And chances are also really good that Washington is going to maintain its military spending. On top of that, many sin stocks, especially cigarette makers, provide consistent annual dividend growth. That makes sin stocks pretty attractive in a near-zero interest rate environment. Vice stocks can afford to pay out solid dividends because their underlying products don’t cost very much to make. At the same time, they all have high barriers to entry, so competition isn’t exactly fierce. As a result, sin stocks have everything I look for when it comes to stock market investing. They have a resiliency that other stocks lack.

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Cannabis Companies Newsletter Mark Leibovits