Connect with us

Cannabis

Big Tobacco jumps in on cannabis action; US giant acquires stakes in Canadian cannabis, American hemp

Published

on

(FinancialPress) —Public NYSE-traded U.S. tobacco company Alliance One International (AOI) announced through a press release it has executed a major diversification of its business, after acquiring controlling stakes in two Canadian cannabis companies and participation in an American hemp company.

The landmark move marks the first time it’s publically announced that a major tobacco company delves into the blossoming cannabis market.

The American company revealed it acquired an 80% stake in Canada‘s Goldleaf Pharm while also claiming 75% of Island Garden during January 2018.

“CIG is one of only 35 companies fully licensed to produce and sell medicinal cannabis under the Access to Cannabis for Medical Purposes Regulations in Canada (“ACMPR”),“ the press release says, “and has a 20,000 square foot indoor growing facility in Charlottetown, Prince Edward Island. Plans are underway to expand the current facilities by an additional 250,000 square feet of greenhouse capacity at their current site. Currently CIG sells products direct to patients and through distributors. In January, CIG signed a Memorandum of Understanding with the Province of Prince Edward Island to be one of three suppliers chosen to supply the recreational cannabis market that is expected to open in the summer 2018.

“Goldleaf is a late-stage applicant under the ACMPR for required licensing to produce and sell medicinal cannabis in Ontario, Canada and is currently completing construction of a 20,000 square foot indoor growing facility with further expansion planned for an additional 710,000 square feet of production over a three year period.“

Alliance One is an independent tobacco merchant that works with contract growers in North and South America, Africa, Europe and Asia. It operates out of Morrisville, North Carolina and serves as provider for large multinational cigarette manufacturers.

A similar move was pioneered by global alcohol giant Constellation Brands back in October 2017, when it acquired a 9.9% stake in Ontario‘s Canopy Growth for 245 million CAD, or roughly 190 million USD.

Both operations showcase the tobacco and alcohol industries‘ first efforts to participate in the booming marijuana industry. Worthy of note is that most of the action is taking place in Canada, where marijuana is set to be legalized for adult use over the summer of 2018.

“This might be the key piece that (the industry) needs,” said Nic Easley, CEO of Denver-based 3C Consulting. “Constellation was the first (outside player), a major alcohol company.

“Having a major tobacco company come in – let’s bring in some firearms and we have a party.”

As far as the company‘s involvement in the connational hemp grower Criticality, the release noted: “In December 2017, our subsidiary Pure-Ag NC, LLC, acquired a 40% equity position in North Carolina-based Criticality, LLC (“Criticality”), with triggers that allow for consolidation up to 50% on or after March 31, 2020. Criticality utilizes the strength of our farmer network to grow industrial hemp in North Carolina under the state’s pilot program, which is then used for cannabidiol hemp oil (“CBD”) extraction in Criticality’s facility in North Carolina. Our five year goal is to become a leader in CBD production and consumer products.“

J. Pieter Sikkel, Alliance One’s president and CEO, said of the company‘s recent moves that “most of our new business lines focus on products that are value-added or require some degree of processing. These products generally have higher margin potential than our core business and play well to our strengths. In January, we successfully acquired majority stakes in two new joint ventures. The extension into growth segments, namely e-liquids, industrial hemp and cannabis, expands Alliance One’s presence in higher margin, fast-growing categories. We intend to broaden our business portfolio over the next three to four years by focusing on consumer-driven agricultural products, with increased operating margins when compared to our historical leaf processing business. Consistent with our commitment to growth and incremental to our core leaf earnings, our goal is to generate a significantly increasing portion of our profit from new, higher-margin businesses by 2020.“

For the first nine months of Alliance One’s fiscal year, sales increased 8.8% to $1.2 billion mainly driven by the larger South American crop and a 7.5% increase in average sales price due to a favorable product mix. Shares for the company rose 21.32% following the release, by the time of this publication.

Ruben is a South American writer who focuses on the state of the cryptocurrency, cannabis and tech industries worldwide.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Cannabis

Medicine Man Technologies: Showing Cannabis Companies How It’s Done

Published

on

2018 brought us legal recreational marijuana throughout Canada, legalization of medical cannabis in New Zealand, de-scheduling of industrial hemp in the U.S. via the Farm Bill, more U.S. states legalizing medical (now 33 in total plus D.C.) and recreational (10 states plus D.C.) cannabis and much more that further legitimized the industry.  According to the latest Gallup Poll, two in three Americans now supports legalizing marijuana, the highest level ever for advocacy.

It seems that the tailwinds for the industry continue to blow mightily.  With this rapid growth, companies worldwide are looking to get a piece of the burgeoning market.  As many have found out in recent years, though, it isn’t as simple as just putting some seeds in a row of planters.  It’s big business that will get much, much bigger and it takes a great deal of knowledge and experience to avoid what could be disastrous pitfalls to upstarts.

From its headquarters in Denver, Colorado, Medicine Man Technologies (OTCQX: MDCL) is there to provide consult for companies across a full menu of topics.  A la cart or comprehensive services are offered depending on exactly what the client needs, covering everything from obtaining a license to standard operating procedure for handling a retail customer and everywhere in between.  For some, the company has come in and effectively turned-around a stumbling grow operation with its program called “Cultivation MAX.”  With this program, the company looks to replicate its own grow success, showing the client the intricacies necessary to have a repeatable, successful harvests.

To help with that matter, the company offers Success Nutrients®, a nine-product nutrient line with the needed ingredients to simultaneously maximize per-foot flower yield and growth of the highest quality flowers.

The company has deep experience throughout the entire supply chain, including parent company, Medicine Man Denver, being the largest cultivation/retail facility in Colorado.  The parent company has been operating in the cannabis industry for a number of years, amassing the intellectual property, technology and experience to help others achieve success.  To that end, Medicine Man Technologies operates in several capacities, namely licensing its technology and operating as a cannabis consulting outfit, with investors, legal and licensed commercial cultivation and dispensary operators and new companies looking to participate in the cannabis industry.

The company works with, or has worked with, clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Oklahoma, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa.   Last summer, Medicine Man Technologies granted Canada House Wellness Group (CSE: CHV) exclusive licensing rights to its IP and products lines (Three a Light® and Success Nutrients®) for the Canadian marketplace, along with assignment of an existing Cultvation MAX agreement to Canada House in exchange for an initial payment of C$4.65 million in cash and stock and future fees based on revenue in Canada.

The Master License Agreement was a boon to the company’s financial performance in the quarter ended September 30, 2018 and for the year-to-date figures, with total income from January through September totaling $9.92 million and net profit coming in at $5.16 million, or 19 cents per share.  It’s worth noting that while the license agreement certainly was material, organic growth was strong also.  For the nine-month period, organic revenue was $3.78 million, up from $2.49 million in the year prior period.

These developments, along with a new Chief Operating Officer, Joe Puglise – the former President of New York properties for iHeartMedia – and what looks to be a general revitalization of so-called pot stocks recently, should have the investment community watching for what the market has to offer in 2019 and the continued evolution of Medicine Man Technologies.

Online Media Group, Inc. is not registered with any financial or securities regulatory authority and holds no investment licenses and does not provide, nor claims to provide, investment advice. We are a publisher of original and third party news and information. This article is sponsored content and is neither an offer nor recommendation to buy, sell or hold any security. The views expressed are our own and not intended to be the basis for any investment decision. Investing intrinsically involves substantial risk and readers are reminded to consult an investment professional and complete their own due diligence, including SEC filings, when researching any companies mentioned in this release. This release is based upon publicly available information and, while vetted, is not considered to be all-inclusive or guaranteed to be free from errors. With respect to Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader’s attention to the fact that Online Media Group, Inc. received $1,333 in compensation from IRTH Communications for content creation, advertising and distribution services related to this material.

Continue Reading

Cannabis

Backstopped by Science, CBD Unlimited Aiming for 30,000 Distribution Points

Published

on

2018 was a year of milestones for the cannabis markets, including Canada becoming the first Group of Seven country to legalize recreational use and the number of U.S. states where medical or recreational marijuana is legal rising to 33 and 10, respectively, along with the District of Columbia.  A watershed moment happened in the industrial hemp space too, with the passage of the U.S. Farm Bill 2018 removing the plant from the federal controlled substance list, effectively making it a legal agricultural commodity as of the start of 2019.

Hemp is a variety of the cannabis sativa plant that does not contain any meaningful levels of THC (tetrahydrocannabinol), the marijuana component responsible for the psychotropic high.  What it does contain is CBD (cannabidiol), a non-intoxicating compound of cannabis that is widely trumpeted for a litany of therapeutic benefits, including reducing pain, nausea, anxiety and inflammation.

The legalization of industrial hemp will certainly make CBD one of the most active areas within the broader cannabis markets in 2019.

As noted by CBD Unlimited (OTC: EDXC) Chairman and CEO Todd Davis in a recent interview with SNNLive, sourcing is something that consumers need to be aware of because there will be a battery of companies jumping on the bandwagon to sell something that is hot.  Eventually, the Farm Bill will help correct any supply/demand imbalance, at which time quality of product will again move to the foreground.

CBD Unlimited has been a pioneer in the CBD space, building its portfolio of products on science, science that shows CBD attaches to the CB2 receptor.  The CB2 receptor is distributed throughout the entire body of humans and animals.  By attaching to the CB2 receptor, CBD activates a channel that alleviates or stops pain without unpleasant side effects.

The company offers an array of CBD products for both people and their pets.  The product lineup includes oils, concentrates, topicals, beverages and – for dogs and cats – Phyto-Bites CBD soft chews.  Because the company specifically extracts and isolates only the CBD molecule from industrial hemp, their products are legal in all 50 states.

While there is a broad spectrum of applications, the company’s target market is adults over age 50 in a state of chronic inflammation and pain that are looking for a natural solution without the risks associated with pharmaceutical drugs.

Davis keeps CBD in perspective, viewing it not a miracle cure that is a replacement for everything, but as a support mechanism that is changing the quality of life for many people.  His company has kept the business model simple (in a manner of speaking), taking a molecule that is known to have remarkable therapeutic benefits and turning it into something that everyday people can use and doctors can adopt into their practices.

Against the backdrop of a favorable consumer environment, the growth driver for CBD Unlimited is distribution.   A pilot program pushed the company over its first target of 1,000 distribution points in 2018.  To help with the initiative to reach 5,000 distribution points in 2019, Davis recruited Dustin Sullivan as Chief Operating Officer.  Sullivan brings his experience from 18 years at Walgreens where he trained and work with people throughout the big box pharmacy business.  Sullivan’s expertise has resulted in the company getting in front of the biggest buyers in the U.S. as part of the 2019 target and next milestone of at least 30,000 distribution points in the next one-two years.

Online Media Group, Inc. is not registered with any financial or securities regulatory authority and holds no investment licenses and does not provide, nor claims to provide, investment advice. We are a publisher of original and third party news and information. This article is sponsored content and is neither an offer nor recommendation to buy, sell or hold any security. The views expressed are our own and not intended to be the basis for any investment decision. Investing intrinsically involves substantial risk and readers are reminded to consult an investment professional and complete their own due diligence, including SEC filings, when researching any companies mentioned in this release. This release is based upon publicly available information and, while vetted, is not considered to be all-inclusive or guaranteed to be free from errors. With respect to Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader’s attention to the fact that Online Media Group, Inc. received $1,333 in compensation from IRTH Communications for content creation, advertising and distribution services related to this material. style���

Continue Reading

Breaking

A New Spin on CBD: Quanta Upping the Game with Bioenergy

Published

on

Cannabidiol, or CBD for short, a component of cannabis, is all the rage today, underscored by President Trump last week signing the U.S. Farm Bill 2018 into law. After decades of being held to the same standard as cannabis that contains THC, hemp is finally removed from the Controlled Substance Act, effectively making hemp-based CBD legal at the federal level.

Cannabis and hemp are similar with one major differentiator: THC (tetrahydrocannabinol), the cannabinoid in cannabis responsible for the psychoactive high, or “stoned” feeling from ingesting marijuana. Hemp contains little to no THC, but does contain CBD, a non-psychotropic cannabinoid widely acclaimed for a litany of medical uses, including applications for hard-to-treat diseases like epilepsy and PTSD, as well as more casual uses, such as skincare.

With the passage of the Farm Bill, hemp-based CBD – which still falls under the regulatory scrutiny of the U.S. Food and Drug Administration – is legal for a bevy of development activity.

The scientists at Quanta (OTC: QNTA) are putting a new spin on cannabinoids, specifically CBD, amplifying the benefits by using the combination of quantum physics and biochemistry to increase bioenergy within the cell. As explained in a corporate video, this produces a better chemical reaction in the body.

The science is based in part on principles of quantum physics proving that everything in the universe is energy and has its own vibration, or vibrational frequency more specifically, including cannabinoid receptors. Cannabis, by virtue of its properties as a plant, is losing vibrational power every day. Quanta uses a patented technology to retrain the vibrations within cannabinoids, which raises their bioenergy, until they have identical frequencies to the body’s cannabinoid receptors.

When these matching frequencies combine, the highest possible response is the result and the CBD is absorbed into the body more efficiently with little to no side effect. This takes each element in Quanta’s formula to peaks levels of performance, meaning the user enjoys a better experience in reduction of things like pain, inflammation, stiffness and anxiety that CBD is heralded for delivering.

Quanta’s lead product is CBD Muscle Rub, a combination of 13 natural elements including turmeric, arnica and polarized CBD, administered topically for the relief of muscle and joint pain and stiffness.

While the initial focus is on hemp-based CBD, the technology is available for licensing or product development that can be applied to all types of plant matter to enhance energy in naturally occurring molecules utilizing the same properties of the Law of Vibration and the fact that humans are bio-electric beings. In addition to the effect on muscles and joints, the complete Quanta process, which involves identifying natural elements by their frequency and using magnetic and electric frequencies to illicit changes at the sub-atomic level to make the

targeted molecules move faster to create a bond in receptors for an energized and frictionless experience, have been shown to significantly reduce anxiety, paranoia, cognitive haze and drowsiness.

Online Media Group, Inc. is not registered with any financial or securities regulatory authority and holds no investment licenses and does not provide, nor claims to provide, investment advice. We are a publisher of original and third party news and information. This article is sponsored content and is neither an offer nor recommendation to buy, sell or hold any security. The views expressed are our own and not intended to be the basis for any investment decision. Investing intrinsically involves substantial risk and readers are reminded to consult an investment professional and complete their own due diligence, including SEC filings, when researching any companies mentioned in this release. This release is based upon publicly available information and, while vetted, is not considered to be all-inclusive or guaranteed to be free from errors. With respect to Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader’s attention to the fact that Online Media Group, Inc. received $1,333 in compensation from IRTH Communications for content creation, advertising and distribution services related to this material.

Continue Reading

Most Popular