Marijuana Business Magazine November December 2018

a cannabis-focused sales brokerage company. The exclusive partnership will develop a route-to-market platform for CannTrust’s recreational cannabis products in Canada. The sales brokerage company will be a new subsidiary of BBG and entirely separate from its alcohol brokerage, Breakthru Beverage Canada. BBG is one of the country’s largest alcohol brokers of premium spirits, wine and beer brands. Aphria Partners With Subsidiary of Danish Flower Grower Ontario-based Aphria is partnering with Denmark’s Schroll Medical , a subsidiary of flower producer Schroll Flowers. The partnership, which will be managed by Aphria subsidiary Aphria Deutschland, will grow and globally distribute European Union GMP-certified medical cannabis. Calgary MJ Firm Buys California Infused Products Company Gabriella’s Kitchen (GK), a cannabis wellness firm in Calgary, acquired The Oil Co. (TOC), which owns cannabis licenses in California and produces lines of concentrates, tinctures and other infused products under the Aunt Zelda’s brand name. Gabriella’s predicts The Oil Co. will generate more than $10 million in revenue next year. If TOC meets or exceeds this revenue target, Gabriella’s Kitchen will issue TOC's shareholders $2.1 million worth of shares of its own common stock at the prevailing market price, calculated quarterly on revenue realized in that quarter. If TOC fails to meet these revenue targets, “consideration is adjusted accordingly.” Toronto MJ Firm Snaps Up California Retailer for $6M Captor Capital , a vertically integrated marijuana company in Toronto, acquired Chai Cannabis , a medical and recreational cannabis store in Santa Cruz, California, for roughly $6 million. The acquisition adds a fourth California retail shop to Captor’s investment portfolio, which includes two MedMen-branded dispensaries. Chai also possesses a license permitting cannabis deliv- ery in the greater Santa Cruz area on the central California coast. Chai opened as a medical dispensary in 2014 and posted unaudited revenues of $8.4 million in 2017. Organigram Makes $7.7 Million Investment Organigram Holdings , a New Brunswick cannabis company, made a $7.7 million (CA$10 million) investment in Hyasynth Biologicals , a Montreal biotech firm specializing in cannabinoid science and biosynthesis. Hyasynth previously demonstrated its production method for a range of cannabinoids at a small scale under a research exemption from Health Canada and recently received a dealer’s license from the agency, allowing it to transition from research to production. Organigram said its investment will allow Hyasynth to “refine and optimize” its processes at scale. PAX and Liberty Strike Vaporizer Deal Liberty Health Sciences , a diversified Toronto company focused on cannabis, became a brand partner in the Florida market for the PAX Era , a portable cannabis oil vaporizier. The PAX Era vapor platform and compatible pod technology will be available in all of Liberty’s Florida dispensaries and through delivery. Sundial Growers Participates in Cultivar Study Calgary-based Sundial Growers acquired a collection of more than 100 cannabis cultivars. The company plans to genetically map the cultivars using a Mitacs Accelerate grant that was awarded to Igor and Olga Kovalchuk, professors at the University of Lethbridge. Sundial’s $247,500 contribution will be matched by a $247,500 grant from the Canadian government through the Mitacs Accelerate program, resulting in a total research investment of $495,000. The study will support the work of eight researchers at the University of Lethbridge who will characterize the various cultivars’ growth parameters, analyze cannabinoid and terpene profiles and identify breeding lineage. Vancouver Company Buys 49% Interest in Nevada Farm for Industrial Hemp Crop Infrastructure , a Vancouver, Canada-based company that provides greenhouse and ancillary services to marijuana companies, struck a deal with Elite Ventures of Nevada to acquire a 49% interest in its Nye County agricultural property. The company agreed to pay $1.4 mil- lion and has currently loaned $1.7 million for the property and equipment expenses, with no more than $200,000 in additional expenses expected for this first harvest. The Nye County property is in central Nevada and was selected for its temperate climate, which Crop Infrastruc- ture said is ideal for greenhouse and outdoor growing. The land will be used to grow a high-CBD strain of hemp. The property totals more than 315 acres and includes 300 acres of private water rights, with 240 acres under 160 • Marijuana Business Magazine • November/December 2018