The week in marijuana deals: Canopy buys Czech company, Isodiol looks for international CBD
The cannabis industry was in party mode on Friday for the last “4-20”, marijuana culture’s unofficial holiday, before recreational legalization. The week leading up to the celebrations saw Aphria Inc. launch its first recreational brand Solei Sungrown Cannabis, Hiku Brands Company Ltd. announce a merger with WeedMD Inc. and Aurora Cannabis Inc. announce plans to build a new facility in Medicine Hat, Alta. Here are some of the deals from the week you may have missed.
Canopy Czechs in
Canopy Growth Corp. continued to expand its international reach, acquiring a company in the Czech Republic for roughly $2.5 million worth of Canopy shares.
Annabis Medical s.r.o. “currently imports and distributes cannabis products pursuant to federal Czech licences, with products for sale through pharmacy channels across the Czech Republic,” Canopy said in a press release last Sunday.
Canopy already has a presence in Europe through subsidiaries Spektrum Cannabis GmbH and Spectrum Cannabis Denmark ApS, which is building a greenhouse in Denmark.
Isodiol around the world
Isodiol International Inc., formerly known as Laguna Blends Inc., announced a set of international deals on Tuesday, including the acquisition of U.K.-based BSPG Laboratories Ltd. for US$13 million cash with a further US$8.5 million over the next 16 months.
BSPG Labs has a facility that extracts cannabis molecules such as cannabidiol (CBD), Isodiol said in a press release.
“Additional milestone payments of $25mm USD in stock will be made upon BSPG Laboratories Ltd. receiving government approval for an Active Pharmaceutical Ingredient (API), which the company believes is forthcoming,” Isodiol said.
Isodiol, which is listed on the Canadian Securities Exchange, also announced the purchase of Brazilian company Purodiol Do Brasil Ltda. for US$2 million in cash and US$3 in common stock, as well as the purchase of three patents for CBD production from Chinese company Hankang Biotech Co., Ltd. for US$500,000.
CannaRoyalty continues in Cali
CannaRoyalty Corp. entered into a binding term sheet to acquire California cannabis grower FloraCal Farms for US$1 million in cash and 3.5 million CannaRoyalty shares. The company will pay a further US$3 million and 3.5 million shares over the next three years based on FloraCal hitting certain milestones.
FloraCal currently has 15,000 square feet of growing space, which the company says generated US$6.4 million in revenue in fiscal 2017 (unaudited). FloraCal plans to increase the growing space to 42,200 sq. ft. in 2019.
CannaRoyalty, a cannabis investment company based in Ottawa, has been buying companies in California. In late March, it announced the acquisition of cannabis distributor Rivers Distribution for $20 million, all shares. That followed the acquisition of smaller California distributor, Alta Supply Inc., and cannabis product manufacturer Kaya Management Inc.