Yahoo Finance These Marijuana Stocks Are Targeting M&A Opportunities For Growth
CORAL GABLES, FL / ACCESSWIRE / December 11, 2018 / Marijuana stocks are beginning to evolve and as such, so is the industry. Most recently, the big focus for Canadian cannabis companies, in particular, has been on the pharmacy space. Since legalization began, new opportunities have seemingly created themselves.
Canada's biggest retailer now provides medical cannabis. Although it's been known for months, Loblaw Co. Ltd.'s Shoppers Drug Mart pharmacy has been granted a license to sell medical marijuana online. Health Canada's list of authorized cannabis sellers and producers was updated this month to reflect that the pharmacy can sell dried and fresh cannabis. The latest market actions have seen a few marijuana companies scramble for a piece of the pie.
Premier Health Group (PHGRF) (PHGI), for example, recently engaged discussions with Licensed Producers under the Access to Cannabis for Medical Purposes Regulation, other licensed medical cannabis companies, and government officials in order to establish a framework for both patient and physician education. Furthermore, the Company is actively recruiting additional physicians for its existing clinics and a cannabis focused physician that is licensed in Canada.
The company announced this week that as a part of its growth strategy to cover the major verticals associated with primary care, it has signed a binding Letter of Intent to acquire a Vancouver, British Columbia based pharmacy. Premier Health Group (PHGRF) (PHGI) said that it expects the acquisition to close in or about Q1-19.
"We are excited for this opportunity to acquire our first pharmacy, and thereafter being able to prepare and deliver prescription and non-prescription pharmaceuticals and other health products to patients. In doing so, the pharmacist will play an integral role in our team-based patient centric model," said Dr. Essam Hamza, CEO of Premier. " Premier has engaged with patients, pharmacies and technology providers to not only introduce pharmacy services as a component of our comprehensive telemedicine app, but also to explore and implement efficiencies in fill and fulfillment."
This move could prove to be and exciting one for Premier Health Group (PHGRF) (PHGI). The Canadian medical cannabis clinic market is estimated to be worth approximately $2.35 billion by 2025. With this in mind, the company said that it expects to provide additional updates on acquisitions in Q4-18 and Q1-19.
Premier Health Group (PHGRF) (PHGI) has established a considerable patient roster as well. To put it into perspective, Canopy Growth reported 84,400 registered patients at September 30, 2016. Furthermore, in its latest financial report, Aurora Cannabis for example, reported that it had 67,484 active registered patients and this was up from roughly 43,000 during the prior quarter. Premier has previously stated that it currently has over 100,000 active patients.
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Aurora Cannabis (ACB) has also been hot on the trail of expanding into pharmacies. In fact it announced this month that it has entered into a Letter of Intent to acquire all of the issued and outstanding shares of Farmacias Magistrales S.A.
Farmacias recently became Mexico's first and only federally licensed importer to date of raw materials containing THC, gaining the necessary licenses, facilities, and permissions to import raw THC material, and manufacture, store, and distribute medical cannabis products containing over 1% THC.
"This transaction positions Aurora with exclusive access to supply THC-containing medical cannabis to a large market of more than 130 million people, while also enabling us to capture the full margin of the medical cannabis we sell there," said Terry Booth, CEO of Aurora. "Farmacias has a large distribution network of both retail outlets and pharmacies, which will enable us to quickly scale up our operations across Mexico. Integrating Farmacias with our operations in Canada and Latin America will not only accelerate growth, it will build substantial long-term shareholder value."
For More Information On Aurora Cannabis, Click Here
CannTrust Holdings Inc. (OTC PINK: CNTTF) recently announced that it has won seven top 2018 Canadian Cannabis Awards, dominating the annual industry awards. CannTrust captured the top award – Top Licensed Producer of the Year – along with Top Licensed Producer Customer Service, in the voter-driven awards.
According to the company, in a near sweep of the product categories, CannTrust also won five awards for its quality products with top honours for both its popular flower strains and oil drops. The record wins are a testament to CannTrust's commitment to its more than 55,000 patients and to its leadership position in developing innovative, quality, standardized products.
Shares of CannTrust hit highs of over $6 a share today.
For More Information On CannTrust, Click Here
Cronos Group (CRON) rounds out the list. Shares of the company's stock took off during the later part of the afternoon session on Tuesday. It was recently announced that Altria (MO) would be making an approximate investment of C$2.4 billion into Cronos Group. If you are unfamiliar with Altria, they are the owners of Philip Morris, the company that makes Marlborough Brand cigarettes.
Altria will also receive Warrants of Cronos Group (the ''Warrants''), that if fully exercised, would provide the Company with an additional approximately C$1.4 billion of proceeds. The Shares issuable to Altria pursuant to the Subscription Agreement will result in Altria holding an approximately 45% ownership interest in Cronos Group (calculated on a non-diluted basis), exercise of the Warrants would result in incremental ownership of 10% for a total potential ownership position of 55%.
''Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,'' said Howard Willard, Altria's Chairman and Chief Executive Officer. ''We believe that Cronos Group's excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential.''
For More Information On Cronos Group, Click Here
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