With Canadian Adult-use legalization set to begin in just two days, Health Canada has obviously put the push on to make sure that supply meets demand. In an effort to make some last minute L.P. approvals before legalization, late last week, nine late stage applicants became licensed producers.
Given how market-moving a Health Canada license approval is, we figured it would be helpful to guide readers through the five that are strongly connected with public companies.
- AAA Heidelberg Inc., majority-owned by PUF Ventures Inc. (CSE:PUF) (OTC:PUFXF), is officially licensed for cannabis production by Health Canada under by Health Canada under the Access to Cannabis for Medical Purposes Regulations.The company has an option to acquire the balance of shares to own 100% of AAA Heidelberg Inc. upon receipt of the ACMPR license. Through an exclusive joint venture agreement with Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), the company will join CraftGrow, a collection of high-quality cannabis grown by a select and diverse set of producers, made available through the Tweed Main Street website.
- Next, Atlas Growers Ltd. is also now officially licensed for cannabis production by Health Canada under under the ACMPR. In January, Namaste Technologies Inc. (TSXV:N) (OTC:NXTTF) participated as a lead order in a private placement offering by Atlas Growers Ltd. In consideration of the investment, Atlas and Namaste’s wholly owned subsidiary, Cannmart Inc. entered in to a Supply Agreement whereby Atlas agrees to guarantee supply to Cannmart by offering first right of refusal for a minimum of 20% of the net production of medical cannabis through Atlas.
- Also, CannaCure Corporation is now officially licensed for cannabis production by Health Canada under under the ACMPR. Back in July, Heritage Cannabis Holdings Corp. (CSE:CANN) (OTC:HERTF) signed an LOI to acquire all of the issued and outstanding shares of CannaCure in an all-share transaction. CannaCure, based in Fort Erie, Ontario, has completed phase one of its three phase build-out plan. The constructed phase one facility is a state-of-the-art 24,260 square foot area, complete with four grow rooms, a fully constructed level 10 vault, propagating rooms and much more. Once completed, all three phases combined will comprise of 122,000 square feet, giving many options for CannaCure in the future. Additionally, included in the acquisition transaction is CannaCure’s option to purchase 3.4 million square feet of existing and operating greenhouse space in Leamington, Ontario.
- Additionally, Royalmax Biotechnology Canada Inc. is now officially licensed for cannabis production by Health Canada under under the ACMPR. Back in April of 2017, Matica Enterprises Inc. (CSE:MMJ) (OTC:MQPXF) signed an agreement to acquire 70% of Royalmax. According to the release, RoyalMax has a 10,000 sq. ft. facility located in an industrial park in Dorval Quebec, just outside of Montreal. Matica management has negotiated, on favorable terms, a 20 year extension to the current lease which was set to expire in 2020. The size of the site will permit expansion of the building footprint by as much 20,000 sq. ft. As the company progresses, the size of the canopy could grow to over 40,000 sq. ft., with a two story expansion of this facility.
- Last but not least, Valens Agritech Ltd., a wholly-owned subsidiary of Valens Groworks Corp. (CSE:VGW) (OTC:MYMSF), is now officially licensed for cannabis production by Health Canada under under the ACMPR. Licensed activities will occur in Valens Agretech’s 17,000 square foot production facility located on two acres in Kelowna, British Columbia.
In addition to the ones that are closely tied to public companies, a handful of private L.P.s also received Health Canada’s approval including 0989561 B.C. Ltd., Emerald Plant Health Source (E.P.H.S) Inc., Good & Green, and MEDISUN.
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