TORONTO, Jan. 21, 2021 /CNW/ – Psyched Wellness Ltd. (CSE: PSYC) (OTCQB: PSYCF) (FRANKFURT: 5U9) (the “Company” or “Psyched”) a life sciences company focused on the production and distribution of artisanal functional and psychedelic mushrooms, is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp., on behalf of a syndicate of underwriters (collectively the “Underwriters”), pursuant to which the Underwriters have agreed to purchase on a bought deal private placement basis, 9,700,000 units of the Company (“Units”) at a price of C$0.31 per Unit (the “Issue Price”), for aggregate gross proceeds of C$3,007,000 (the “Offering”).
Each Unit will consist of one common share of the Company (a “Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of C$0.43 for a period of 36 months from the Closing Date, subject to a Warrant acceleration right exercisable by the Company if, at any time following the date that is four months and one day from the Closing Date, the daily volume weighted average trading price of the Company’s common shares on the Canadian Securities Exchange is greater than C$0.70 for the preceding 5 consecutive trading days.
The use of proceed will be to fully fund the pre-clinical trials of our Amanita Muscaria extract, AME-1 and to continue our scientific research of AME-1 and its potential benefits for people suffering from serious mental and physical health issues.
The Offering is scheduled to close on or about February 12, 2021 (the “Closing Date”), and is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the Canadian Securities Exchange.
The securities issued under the Offering will be subject to a statutory hold period of four months and one day following the Closing Date. The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither the Canadian Securities Exchange nor its Regulation Services Provider have reviewed or accept responsibility for the adequacy or accuracy of this release.
About Psyched Wellness Ltd.:
Psyched Wellness Ltd. is a Canadian-based health supplements company dedicated to the distribution of mushroom-derived products and associated consumer packaged goods. The Company’s objective is to create premium mushroom-derived products that have the potential to become a leading North American brand in the emerging functional food category. The Company is in the process of developing a line of Amanita muscaria-derived water-based extracts, teas and capsules designed to help with three health objectives: promote stress relief, relaxation and assist with restful sleeping.
Cautionary Note Regarding Forward-looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Offering and use of proceeds of the offering. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Aurora Cannabis Inc. (“Aurora” or the “Company”) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and ATB Capital Markets, under which the underwriters have agreed to buy on bought deal basis 12,000,000 units of the Company (the “Units”), at a price of US$10.45 per Unit for gross proceeds of approximately US$125 million (the “Offering”). Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of US$12.60 per Warrant Share, subject to adjustment in certain events.
The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 10% of the Offering to cover over-allotments, if any. This option may be exercised by the Underwriters for additional Units, Common Shares, Warrants or any combination of such securities.
The net proceeds of the offering will be used for general corporate purposes, which may include opportunistically reducing debt. The Company believes that the Offering fits with its broader strategy to have a strong balance sheet while maintaining maximum flexibility to invest and build towards being a leader in global cannabinoids.
The closing of the Offering is expected to take place on or about January 26, 2021 and will be subject to customary conditions, including approvals of the Toronto Stock Exchange and the New York Stock Exchange.
A prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated October 28, 2020 (the “Base Shelf Prospectus”) will be filed with the securities commissions or securities regulatory authorities in each of the provinces of Canada, except Quebec, and with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s registration statement on Form F-10 (the “Registration Statement”) under the U.S./Canada Multijurisdictional Disclosure System. The Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement contain important detailed information about the Company and the proposed Offering. Prospective investors should read the Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement and the other documents the Company has filed for more complete information about the Company and this Offering before making an investment decision.
Copies of the Prospectus Supplement, following filing thereof, and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com and copies of the Prospectus Supplement and the Registration Statement will be available on EDGAR at www.sec.gov . Copies of the Prospectus Supplement, following filing thereof, the Base Shelf Prospectus and the Registration Statement may also be obtained from BMO Capital Markets by contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905) 791-3151 Ext 431 or by email at email@example.com or from BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at (800) 414-3627 or by email firstname.lastname@example.org . Copies of such documents may also be obtained from ATB Capital Markets Inc., Attn: Gail O’Connor, 410-585 8th Ave SW, Calgary, Alberta, T2P 1G1, (403) 539-8629 or by email from email@example.com .
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company’s brand portfolio includes Aurora, Aurora Drift, San Rafael ‘71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva CBD. Providing customers with innovative, high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website at www.auroramj.com .
Aurora’s common shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.
VP, Communications & PR
Forward Looking Statements
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“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. Forward-looking statements made in this news release include statements regarding: the timing and completion of the Offering and the expected use of proceeds of the Offering. These forward-looking 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, estimates and assumptions of management in light of management’s experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the ability to maintain SG&A costs in line with current expectations, the ability to achieve high margin revenues in the Canadian consumer market, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including the risks associated with: entering the U.S. market, the ability to realize the anticipated benefits associated with the acquisition of Reliva, achievement of Aurora’s business transformation plan, general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition, the effects of and responses to the COVID-19 pandemic and other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual information form dated September 24, 2020 (the “ AIF ”) and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC’s website at www.edgar.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
Last week, we came across an article that was published by MJ Biz Daily that covered the performance of the cannabis sector in 2020.
One of the most interesting statistics from the report is related the amount of edibles that were sold in 2020 and this is a trend that our readers should be aware of. Companies that are levered to the vertical have worked to modify the business to capitalize on the increased demand for edibles and we will monitor how these operators are able to execute
The increase in demand for edible product have accelerated the pace at which edibles manufacturers are investing in research and development (R&D) as well as new product lines. We expect 2021 to be a banner year for the edible market as consumers started to show a preference for smokeless cannabis products in 2020.
The acceleration in R&D on cannabis edibles has forced leading manufacturers to work on the development of faster-acting and strain-specific edibles. We believe the amount of time it takes to feel the effects of edibles has improved and expect brands to benefit from the development of these types of products.
Data Highlights the Increasing Demand for Edibles
According to Seattle-based cannabis analytics firm Headset, demand for medical and recreational cannabis edibles increased by 60% across seven state markets to $1.23 billion from $767 million in 2019.
According to Headset data analyst Cooper Ashley, market share for edibles increased to 11.07% in 2020 from 10.65%. We find these data points to be significant and expect the vertical to report stronger growth in 2021.
Headset also provided interesting data on the Michigan cannabis market and this is an opportunity that we have been closely following. Last year, the state’s recreational cannabis market opened, and we are impressed with the performance of it. According to Headset, Michigan recorded a 14% increase in sales of edible products. The firm said that edibles’ market share in Michigan increased from 14.4% to 16.5% and this is trend to be aware of.
Some of the key data points that Headset provided on the Michigan market include:
Vape pens lost market share (from 24% to 20.1%)
Flower increased market share (from 41.1% to 46.4%)
Concentrates lost market share (from 9.6% to 7.7%)
During the last year, Michigan was one of the highly talked about cannabis markets and we expect the state to report strong growth this year. At the country level, we expect to see a similar trend play out as it relates to the mix of products that are being sold.
The US Cannabis Market is Accelerating Rapidly
Following the election of Joe Biden as President of the US and the democrats gaining control of the House of Representatives and the Senate, the cannabis industry is positioned to be a beneficiary of the changing of the guard.
Since the election, the cannabis sector has been in rally mode and we are seeing much smarter money enter the industry. Based on the outcome of the election, banks are starting to notice that the US cannabis market is the most attractive place to invest. While Canada is currently dominating in the international cannabis market, the US industry is expected to be the world’s largest cannabis market in the years to come.
We continue to prefer operators that are levered to states like Illinois or Michigan due to the limited number of licenses that are available. States like Florida, New York and Pennsylvania, are also limiting the number of cannabis licenses that are being granted and this plays a key role in our bullish outlook on these markets.
One of the reasons we are favorable on the cannabis edible market is related to the economics that are associated with it. To manufacture edibles, companies use cannabis extracts as the input product. Since these products are made with cannabis oil, the quality of the flower that is used to make the edibles does not come into question. We are of the opinion that this aspect of the process makes the cannabis edible vertical even more attractive from a margin appreciation standpoint and are favorable on the growth prospects that are associated with it.
If you are interested in learnings more about the companies that are capitalizing on the cannabis edible market, please send an email to firstname.lastname@example.org with the subject “Cannabis Edibles” to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
High Tide Inc. (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that the Canna Cabana retail store located in Unit #101 624 8 Avenue SE, in Calgary’s Centre City East Village has begun selling recreational cannabis products for adult use. This will be the first retail cannabis store to begin servicing the local neighbourhood. This opening represents High Tide’s ninth Calgary location and 69th across Canada selling recreational cannabis products and consumption accessories.
“We continue to execute our retail expansion strategy by adding a great location in Calgary’s East Village,” said Raj Grover, President and Chief Executive Officer of High Tide. “The new store will follow High Tide’s well established and differentiated business model that offers consumers a one-stop shopping experience for all of their cannabis flower, beverage, edible and consumption accessory needs,” added Mr. Grover.
About High Tide Inc.
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 69 current locations spanning Ontario , Alberta , Manitoba andSaskatchewan . High Tide’s retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com and CBDcity.com, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).
Neither the TSX Venture Exchange (the “TSXV”) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release are based on certain assumptions made by High Tide. While High Tide considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the retail cannabis markets; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the retail cannabis industries generally; income tax and regulatory matters; the ability of High Tide to implement its business strategy; competition; currency and interest rate fluctuations; the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and elsewhere in High Tide’s public filings and material change reports, which are and will be available on SEDAR.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America . The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available .
Unifor and Aleafia Health Inc. (TSX: AH, OTC: ALEAF), have entered into an exclusive 10-year agreement to support union members, retirees and their eligible dependents who receive medical cannabis insurance coverage through Unifor’s collective bargaining agreements.
“Unifor members across the country deserve access to the benefits of medical cannabis coverage through their benefits. As a union we will support our local bargaining committees to add this coverage where possible,” said Jerry Dias, Unifor National President.
The agreement supports a historic breakthrough in access to legal cannabis in Canada.
Aleafia brings unique national scale, organization and expertise to provide union members, retirees and their eligible dependents with access to medical cannabis product insurance reimbursement and physician-led cannabinoid therapy.
“This agreement will provide thousands of union members and their families with improved and affordable access to medical cannabis care, and ultimately be one of the largest breakthroughs in patient access since the early days of legalization in Canada,” said Geoffrey Benic, Aleafia Health CEO. “Our dedicated team of medical professionals and program managers are excited to begin working directly with Unifor members and launching this program.”
Through its subsidiaries, Aleafia Health provides an enhanced level of service not available through any other Canadian cannabis company. Members will receive a customized wellness regime, including cannabis education, virtual physician consultation, medical authorization, when appropriate, product ordering and scheduled home delivery, all in one business day.
Physician Expertise: Aleafia Health is a pioneer in cannabinoid therapy in Canada, providing care to over 75,000 unique patients. This has also provided actionable data on best practices on dosing, modes of intake, strain selection and patient safety, resulting in peer reviewed research published in medical journals. Best in class electronic medical records systems also allow close collaboration between Canabo physicians and Unifor members’ family doctor.
Virtual Consultation: Canabo today serves patients in every province of Canada. Since the beginning of Covid-19, the Company has transitioned to completing 100 per cent of consultations online and over the phone, allowing patients to receive professional care from the safety and convenience of their homes.
Product Portfolio: Through its flagship medical cannabis brand Emblem, members will benefit from access to a diverse portfolio of high-quality cannabis formats, including oils, capsules, sprays, sublingual strips, vapes and exclusive dried flower cultivars. In addition, the Company looks forward to releasing a new line of CBD wellness products, which includes formats not yet available in Canada.
Scheduled Same Day Delivery: Through its AssureHome Delivery platform, Unifor members can order and will receive their medical cannabis order that evening, with best in class delivery times.
As Canada’s largest private sector union, Unifor represents over 315,000 members across every sector of the Canadian economy. Aleafia Health, a global cannabis health and wellness company, has provided over 75,000 individual patients with cannabinoid therapy through its national network of clinics, along with access to high-quality, federally regulated medical cannabis products.
Unifor is Canada’s largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.
Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.
Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top performing company prior to its graduation to the TSX.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
American Cannabis Company, Inc. (OTCQB: AMMJ) is pleased to announce that it has successfully executed a non-binding letter of intent (LOI) with Andina Gold Corporation (OTCQB: AGOL) to purchase assets of its Good Meds and BOSM Labs operating division, a fully licensed cultivation and extraction operation in Colorado offering premium cannabis and cannabis extracts to the wholesale and retail medical and recreational markets. Assets are to include one cultivation operation and one hydrocarbon extraction laboratory and production center. All assets to be acquired will operate out of a 60,000-square-foot facility, centrally located in Denver, Colorado. Currently, only 50,000 square feet of space are being utilized, with 10,000 square feet of additional open space ready and available for the Company to use as it looks to scale up operations.
Since 2009, the Good Meds brand has cultivated and provided top-tier cannabis flower products to medical patients and recreational consumers in Colorado. BOSM Labs carries a strong reputation as a high-end manufacturer of well-known hydrocarbon-extracted cannabis products. Combined under one roof, these brands act as one of few long-standing and major contenders in the maturing Denver market.
Christopher Hansen, Chief Executive Officer of Andina Gold Corporation, commented: “We are pleased with the non-binding letter of intent with American Cannabis Company, and look forward to working with Terry Buffalo and his team to complete the transaction. The dedicated, consistently excellent work of Good Meds and BOSM Labs personnel has been the driver of their excellent reputation. We also appreciate the steady leadership through this transitional period provided by Amanda Price and John Haugh. We feel confident the impressive work of Good Meds and BOSM Labs will continue as we hand over the keys to American Cannabis Company.”
Terry Buffalo, Chief Executive Officer and Chief Financial Officer of American Cannabis Company, commented, “This is another strategic move for ACC. Officially having secured two non-binding LOIs to date, ACC will soon integrate three retail dispensaries and a total of 70,000 square feet of combined cultivation and extraction operations. The due diligence process for Good Meds and BOSM Labs has begun, and we anticipate this to close in Q2 of 2021. We analyzed many opportunities both here in Colorado as well as in other states, and we ultimately chose to focus on the Colorado market initially. This approach will allow us to improve existing operational processes, refine our workflow and deploy an operational management platform that we can use as we branch out to other regions of the country.”
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis and hemp industries. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. We are continuing to grow the company by promoting our operational management services and license the American Cannabis Company brand as well as continuing to analyze acquisition opportunities worldwide. American Cannabis Company also developed and owns a portfolio of branded products including: SoHum Living Soils® – Winner of the High Times S.T.A.S.H. Award for “Best Potting Mix,” The Cultivation Cube™ and the High-Density Cultivation System™. American Cannabis Company also designs and provides other industry-specific custom product solutions.
About Good Meds
Founded in 2009, Good Meds medical cannabis dispensaries in Englewood and Lakewood, Colorado offer affordable access to premier cannabis for registered Colorado medical cannabis patients. The company’s carefully curated genetics are grown using the highest quality ingredients, to address a full spectrum of medical ailments. Good Meds generates revenue through its retail sales as well as wholesale products sold to non-Good Meds retail outlets in the recreational market. Good Meds supports the growth of the cannabis industry and abides by responsible business practices. The Good Meds assets were acquired by Andina Gold Corp. in 2019. For more information on Good Meds, please visit: https://www.goodmeds.com/.
About BOSM Labs
Serving the Colorado market since 2017, BOSM Labs balances science and art to produce quality-first, boutique extracts sold at both medical and recreational cannabis outlets. BOSM’s single-source concentrates begin with an artisan cultivation team and end with pronounced flavors that truly capture the essence of the flower at harvest. For more information on BOSM Labs, please visit: https://www.goodmeds.com/bosm-labs/.
This news release contains “forward-looking statements,” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”. These or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based drugs. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under Federal Law
Cannabis and its derivatives are considered illegal “Schedule 1” drugs under the Controlled Substances Act (21 U.S.C. § 811). As such, Cannabis and its derivatives are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled Substances Act, and persons violating it are subject to federal criminal prosecution. The criminal penalty structure in the Controlled Substances Act is determined based on the specific predicate violations, including but not limited to: simple possession, drug trafficking, attempt and conspiracy, distribution to minors, trafficking in drug paraphernalia, money laundering, racketeering, environmental damage from illegal manufacturing, continuing criminal enterprise, and smuggling. A first conviction under the Controlled Substances Act can generally result in possible fines from $250,000 to $50 million dollars, and incarceration for periods generally from five and up to forty years. For a second conviction, fines increase generally from $500,000 to $75 million dollars, and incarceration for periods generally from ten years to twenty years to life.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.