Europe could soon become the world’s largest legal cannabis market, says the Cannabis Industry Journal. In fact, major countries in the continent have already approved or are moving towards approval of medicinal cannabis, including France and Spain. “Assuming that all the countries will have legalized medical cannabis and regulated recreational use by 2023, Europe is expected to become the world’s largest legal cannabis market within the next five years, mainly due to the medical sector, which is forecast to account for up to $64 billion by 2028,” as quoted by GreenState. That news is helping to create sizable opportunity for companies such as Terrace Global Inc. (TSXV:TRCE), Flowr Corporation (TSXV:FLWR)(OTC:FLWPF), Tilray Inc. (NASDAQ:TLRY), MariMed Inc. (OTC:MRMD), and Aurora Cannabis (NYSE:ACB)(TSX:ACB).
Terrace Global Inc. (TSXV:TRCE) BREAKING NEWS: Terrace Global Inc. pleased to announce it has entered into an equity line and profit-sharing agreement with The Flowr Corporation for the purpose of jointly developing an outdoor medical cannabis project in Portugal. Under the terms of the Agreement, Terrace Global will fund certain operations and certain capital expenditures relating to the Project in exchange for the issuance of: (1) common shares of Flowr at the volume weighted average trading price of the shares on the day prior to such subscription less the maximum applicable discount available under the TSX Venture Exchange subject to a minimum price of $0.52 per share; and (2) warrants at an exercise price equal to the greater of $0.76 and the minimum exercise price permitted under the TSXV rules. In addition, the parties have agreed to divide the net proceeds from the Project on a 75% basis for Flowr and 25% basis for the Company, with an adjustment to 20% for the Company in certain circumstances. As part of the Agreement, a Technical Committee comprised of two representatives from the Company and two representatives from Flowr will oversee the Project. The Company also has a renewal option to cultivate at the Aljustrel site during the 2021 season at its sole discretion in exchange for a 50% split of net proceeds from the sale of any medical cannabis derived from that season’s operations.
In March 2020, Flowr received GMP (Good Manufacturing Certification) certification in accordance with European Union standards, for its manufacturing facility in Sintra, Portugal. The GMP certification was issued by INFARMED, I.P., the Portuguese National Authority of Medicines and Health Products. This GMP certification allows the facility to manufacture and export GMP-certified finished medical cannabis products, specifically dried flower (Part I and II), from Portugal to international markets with legal medical cannabis regulations. The Sintra facility is located just outside of Lisbon.
“In light of the recent market upheaval, Terrace Global has been approached by several parties looking to access our operational expertise in outdoor cultivation and our ability to fund large-scale projects. The partnership with Flowr positions us well to focus on low-cost outdoor cultivation within the European Union at a time when there are still limited competitors,” commented Francisco Ortiz von Bismarck, Chief Executive Officer of the Company. “We are very excited to have Flowr as our outdoor medical cannabis cultivation partner. Flowr is comprised of a team of cannabis experts with extensive knowledge in the cultivation, manufacturing and processing of medical cannabis. In 2020, Flowr obtained GMP (Part I and II) from INFARMED at its production facility in Sintra, Portugal. We expect to be able to leverage Flowr’s operations and expertise, which will result in a very significant win for the Company and its partners.”
The transactions contemplated by the Agreement are subject to the approval of the TSXV. The shares and warrants acquired by Terrace Global will be held only for investment purposes. Terrace Global may from time to time in the future increase or decrease its ownership, control or direction over securities of Flowr, through market transactions, private agreements or otherwise.
Other related developments from around the markets include:
Flowr Corporation (TSXV:FLWR)(OTC:FLWPF) announced its financial and operational results for the fourth quarter and fiscal year ended December 31, 2019. “We believe we are on the doorstep of seeing a step function change in our operating and financial results. Our flagship purpose-built indoor facility in Canada is finally fully operational and licensed. We are producing only high quality and high THC strains out of it, which we know consumers demand and are willing to pay a premium for. Sales trends and demand for our BC Pink Kush strain remain robust and promising. Our foundational thesis that growing high quality cannabis at scale is difficult and only a few companies are both focused and able to do so is playing out in our view. In Europe, we recently joined a short list of companies with EU-GMP certification which will open the medicinal cannabis opportunity for us there soon. We now have certain GMP certifications in Australia as well as Europe. Our conviction in our strategic direction is further validated by management leading yet another round of financing in a very challenging capital markets environment. 2020 will be a big year for Flowr,” said Vinay Tolia, Flowr’s Chief Executive Officer.
Tilray Inc. (NASDAQ:TLRY) reported financial results for the first quarter ended March 31, 2020. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. “We are pleased to report strong sequential quarterly revenue growth across each of our core business segments for the first quarter of 2020,” says Brendan Kennedy, Tilray’s Chief Executive Officer. “We remain focused on executing on our long-term growth opportunities and our goal of generating positive Adjusted EBITDA by the end of the fourth quarter. As evidenced by our International Medical sales in the quarter, we expect this segment to demonstrate continued growth and positively impact margins. During and since the first quarter, we took significant steps to drive efficiencies across our business, enabling us to realize annualized cost savings of approximately $40 million compared to fourth quarter 2019 run rates. While the positive impact of these actions are not fully reflected in this quarter’s results, they will become more clearly evident over the course of this year.”
MariMed Inc. (OTC:MRMD) announced preliminary, unaudited, select financial results for the three-month period ended March 31, 2020. Due primarily to the impact of the coronavirus (COVID-19) pandemic on the Company and its financial team preparing the financial reports and results, the Company has filed a Current Report on Form 8-K to avail itself of a 45 day extension to file its Form 10-Q, relying on an order issued by the Securities and Exchange Commission on March 25, 2020 pursuant to Section 36 of the Securities Exchange Act of 1934, as amended (Release No. 34-88465) (the “SEC COVID Order”). The Registrant will file its Form 10-Q as soon as practicable, and in any event, within the 45-day extension period under the SEC COVID Order. Revenues for first quarter 2020 will approximate $7.5 million, a 112% increase compared with $3.5 million in the first quarter 2019. The year-over-year increase of approximately $4.0 million was primarily due to sales in 2020 from the consolidation of the Company’s cannabis client businesses in Illinois and Massachusetts. Revenue from these now wholly owned subsidiaries, KPGs in Illinois and ARL Healthcare in Massachusetts, are expected to increase significantly over the balance of 2020. Revenue from licensing fees from the sale and distribution of MariMed branded products Betty’s Eddies™ and Kalm Fusion brands™, increased 34% over the same period in the prior year and are expected to experience significant growth over the balance of 2020.
Aurora Cannabis (NYSE:ACB)(TSX:ACB) announced its financial and operational results for the third quarter of fiscal 2020 ended March 31, 2020. Michael Singer, Executive Chairman and Interim CEO of Aurora stated, "I am incredibly proud of the Aurora team for working through these challenging times in order to maintain uninterrupted operations at all of our production facilities and ensure we continue to meet the needs of our patients and consumers. I am also pleased that our third quarter 2020 financial results were in-line with our expectations, and that we remain firmly on track with the cost-savings and capex goals we detailed during our business transformation plan in February 2020." Since announcing the Business Transformation Plan on February 6, 2020, Aurora has taken a number of concrete steps which place Aurora firmly on track to meet or exceed previously announced targets. These steps are designed to strengthen Aurora's balance sheet and reduce go-forward costs, as the Company works to achieve profitability and positive cash flow.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Terrace Global Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of Terrace Global Inc. Please click here for full disclaimer.
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