Marijuana Business Magazine March 2019

Marijuana Business Magazine | March 2019 124 Tilray Strikes Deals With Pharma, Branding Firms British Columbia-based Tilray reached an agreement with Sandoz AG , a subsidiary of Swiss pharmaceutical giant Novartis AG, in which the Canadian firm’s medical marijuana will eventually be produced and distributed in countries where MMJ is legal. Tilray’s deal with Quebec-based Sandoz is an extension of a letter of intent signed in March to produce co-branded, nonsmokable and noncombustible cannabis-based medical products such as sprays, patches and gel caps. Tilray and Sandoz also hold a joint membership in a group called the Common Initiative, which is pushing Canadian officials to move away from mail-only distribution of medical cannabis and allow it to be sold in pharmacies. Separately, Tilray signed a revenue-sharing agreement with Authentic Brands Group (ABG) to market and distribute consumer cannabis products within the New York-based firm’s brand portfolio. Under the terms of the agreement, Tilray will pay $100 million to ABG and up to $250 million in cash and stock upon achieving unspecified milestones. In addition, Tilray will have the right to receive up to 49% of the net revenue from cannabis products bearing ABG brands with a guaranteed minimum of $10 million annually for 10 years. ABG, whose portfolio includes brands such as Aeropostale, Nautica, Spyder and Vince Camuto, will market and distribute consumer cannabis products worldwide, with CBD products in Canada and the United States the immediate priority. A Canadian Clone First Ontario-based Natural MedCo is believed to be the first company in Canada to offer marijuana clones for sale to legal recreational consumers, achieving a first-mover advantage for an untapped and underserved consumer segment. Natural MedCo’s Eve brand succeeded in getting its clones to market in Newfoundland and Labrador. Delivery Meets Software Oakville, Ontario-based Pineapple Express Delivery and Toronto-based customer experience software firm BudTender formed a software partnership in which the MMJ delivery company will help BudTender develop and grow its business model in Canada in exchange for a granted 10% investment stake in BudTender. The Toronto company’s software helps cannabis retailers connect with customers post-purchase to learn about their shopping and product experience. Ontario Management Company Increases U.S. Holdings MPX Bioceutical , a cannabis holding company in North York, Ontario, acquired minority interests in two Massachu- setts cannabis cultivation and production entities, IMT and Fall River Development , both limited-liability companies domesticated in Massachusetts. Through its wholly owned subsidiary CGX Life Sciences in Nevada, MPX owned 51% of each entity, but it now owns 100% of each after the $4.9 million deal. In addi- tion to Massachusetts, MPX, through its U.S. subsidi- aries, provides consulting services to medicinal canna- bis enterprises in Arizona, Maryland and Nevada. Alberta Grow Finalizing German Exports Alberta-based Acreage Pharms , a licensed producer owned by British Columbia-based Invictus MD Strategies , entered into a five-year supply and distribution agreement with Deutsche Medizinalcannabis GmbH for a total of 22,000 pounds (10,000 kilograms) of dried cannabis flower. Deutsche Medizinalcannabis is an importer and distributor of medical cannabis in Germany with direct access to 20,000 pharmacies. Before exports can begin, Acreage Pharms must obtain an export permit from Health Canada as well as a Good Manufacturing Practice certification, which is a requirement to distribute medical cannabis to Germany and across the European Union (see related story on page 96). Deutsche Medizinalcannabis must, in turn, obtain an import permit. Organigram Finds Financing For Production Increase Organigram Holdings in Moncton, New Brunswick, secured a loan from Farm Credit Canada in the amount of $7.5 million (CA$10 million), which will be used to finance the expansion of the company’s Moncton campus. The debt is for a term of five years at a variable rate of interest, which was at 6.7% at the Company News | U.S. & Canada