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Canopy Growth (WEED.TO) (TWMJF) is surging higher after Constellation Brands (STZ: NYSE) acquired 9% of the Canadian licensed cannabis producer for $245 million (CAD).
This purchase was completed at a premium to Canopy’s closing price on Friday and the transaction is expected to close during the third quarter of fiscal 2018. Canopy sold 18.9 million shares at $12.9783 per share and will the proceeds to fund its international expansion program.
This development has caught the attention of mainstream financial media and Canadian licensed medical marijuana producers are trading higher off this news.
While this development was nothing short of a game-charger for the legal marijuana industry, it is not the only exciting development to take place today. We want to highlight three Canadian cannabis updates that investors should be aware of.
Aurora Cannabis Receives Grow License from Health Canada
Aurora Cannabis (ACB.TO) (ACBFF) is trading higher after the company announced that the 40,000 sq. ft. indoor production facility in Pointe-Claire, Quebec has received its cultivation license from Health Canada. The newly licensed facility, to be known as Aurora Vie, makes Aurora the 2nd licensed producer in Quebec, Canada's second most populous province. Initially, genetics (clones) will be transferred from the Aurora Mountain facility and the company anticipates first harvest in the first calendar quarter of 2018.
In April, Aurora acquired the facility for $7 million (80% complete at the time). The facility has been completed, with approx. $3 million in configuration and technology upgrades specifically designed to meet European Union (EU) Good Manufacturing Practices (GMP) certification standards. Aurora Vie has a projected cultivation capacity of approximately 4,000 kg per year.
Emblem Appoints a New CEO
Emblem Corp. (EMC.V) (EMMBF) is trading higher after the company announced the appointment of Nick Dean as the new Chief Executive Officer effective no later than January 15, 2018. Dean succeeds Gordon H. Fox, who has been with Emblem since its inception.
Emblem’s Board of Directors is confident this change in leadership will build on the current success and enhance its position as a leader in the Canadian cannabis market. Fox joined Emblem in 2013 and assumed the role of CEO in 2015.
Canaccourd Genuity Downgrades Maricann Group
On Friday, Maricann Group Inc. (MARI.CN) (MRRCF) closed a $31 million private placement of convertible debenture units as well as the acquisition of NanoLeaf Technologies Inc., a biotech firm with licensing rights to patented nano-technology for ingestible cannabinoid delivery called VESIsorb.
Today, Maricann is trading higher off the Canopy news and the market seems to be shaking off the downgrade from Canaccourd Genuity. Earlier today, Canaccord cut its price target on Maricann from $5 to $4.25.