Marijuana Business Magazine January 2019

Marijuana Business Magazine | January 2019 110 CANADA DEVELOPMENTS Marboro Maker Altria Agrees to Invest $1.8 Billion in Cronos Altria Group, one of the largest tobacco companies in North America, agreed to invest $1.8 billion (CA$2.4 billion) in Ontario-based cannabis producer Cronos Group—the most significant foray by Big Tobacco into the rapidly growing cannabis industry to date. Altria also agreed to make Cronos its exclusive partner for international cannabis opportunities. The entry of Altria—owner of Marlboro maker Philip Morris USA and an investor in alcohol giant Anheuser-Busch InBev—is another major milestone for the marijuana sector, coming on the heels of Constellation Brands’ bombshell investment in Canopy Growth in August. HollyWeed Acquires Women Grow HollyWeed North Cannabis, a British Columbia con- sulting firm applying for one of Canada’s marijuana production licenses, signed a letter of intent to acquire Women Grow, the U.S. company that launched as a for-profit venture in 2014 to empower women in the cannabis industry by providing networking opportu- nities, mentoring and business support. (See related story on page 60.) Flowr Power Shares of cannabis cultivator The Flowr Corp. officially began trading on the TSX Venture Exchange under the ticker symbol FLWR. The trading debut followed Flowr’s raise of $27.7 million (CA$36 million) and reverse takeover of a shell company that previously listed on the exchange. Jamaica-Canada Trade Jamaica’s Timeless Herbal Care sent what is billed as the first-ever shipment of medical cannabis from Jamaica to Canada for analytical testing. Timeless Herbal Care shipped extracted cannabis oil to Synfine Research, an affiliate of Toronto Research Chemicals (TRC)—both licensed dealers with Health Canada—in mid-September. Canada’s Green Organic Dutchman Acquires Polish CBD Company Ontario-based The Green Organic Dutchman closed a previously announced acquisition of HemPoland, a manufacturer and marketer of premium CBD oils in Europe. The transaction received approval from the Toronto Stock Exchange. TGOD paid $7.75 million (CA$10.23 million) in cash and issued 1,968,323 restricted shares that will be escrowed for a term of three years from closing. Additionally, there is a contingent consideration of up to 3,047,722 deferred shares based on HemPoland achieving $32 million (CA$42.5 million) in EBITDA for the financial year 2021. TGOD will invest a further $10.3 million (CA$13.7 million) in HemPoland to fund product development and European expansion. The Green Organic Dutchman also entered into a strategic joint venture with LLACA Grupo Empresarial to create a 50-50-owned company to enter the medicinal cannabis market in Mexico. Canadian Grower Lands Nevada Cultivator Toronto-based marijuana cultivator Flower One Holdings agreed to buy NLV Organics, a Nevada cannabis cultivation business, for $27 million. The deal gives Flower One five additional cannabis business licenses in Nevada, bringing its total to nine permits for both recreational and medical marijuana cultivation and production. Aphria Seeks NYSE Listing Aphria, one of Canada’s largest cannabis producers, filed documents with U.S. securities regulators signaling its intent to list its shares on the New York Stock Exchange. If approved, the Ontario-based company will join a growing list of Canadian cannabis firms seeking to list on either the NYSE or the Nasdaq, including Canopy Growth, Tilray and Cronos Group. Toronto Firm Buys Into Nevada, Massachusetts Toronto-based Cannabis Strategies Acquisition Corp. will acquire four marijuana businesses in Nevada and a fifth in Massachusetts. The special purpose acquisition company, which is listed in Canada, will pay $76 million (CA$99 million) in cash for the five companies, with plans to issue to shareholders about 7.6 million shares and promissory notes worth $43 million (CA$57 million). The Nevada acquisitions are: • Washoe Wellness, a cannabis cultivator, producer and distributor. Company News | U.S. & Canada