Cannabis producers in Canada just got touched by Midas

As many have assumed they will, Altria went ahead with the acquisition of a very large share of Canadian cannabis producer Cronos Group.

It’s been a good week for most cannabis producers, except for Aphria which had a terrible week after being the target of a short attack.

The week started with a short attack which lasted a few days, but now Aphria is on its way to recover. The week ended with Altria making a substantial acquisition of the Cronos Group Shares.

After initial negotiations, Altria went ahead with the acquisition of a very large share of Canadian cannabis producer Cronos Group, making this the 2 huge investment in the market.

The short-attack on Aphria

We’ve covered the short attack on Aphria in details several days ago, once it was first launched, but let’s quickly go over it again.

The short seller Gabriel Greco launched the said attack by releasing a 30-page paper on Aphria’s Latin American assets.

In the paper, he tried to incriminate Aphria’s foreign assets, the company’s relationship with Delvaco Group and Scythian, and a few other minor things.

Much of the essay he published turned out to be only half-truths or misconceptions in most cases.

However, he and his team did manage to push the Aphria stock down all the way to below $5 USD.

The stock is now recovering and on it’s way to new highs due to the boost the whole market got from the Altria acquisition.

Aurora expands to Luxembourg

Aurora Cannabis, the second biggest producer in Canada at the moment, just got more good news regarding its foreign operations.

Aside from penetrating several markets that are huge for the company, such as Germany and Italy, it managed to penetrate the smaller markets as well.

Namely, Aurora has received all required authorizations and sent the first shipment of high-grade medical cannabis to Luxembourg’s Division de la Pharmacie et des Medicaments.

That shipment is the second the company made to a European government program, which goes a long way to show their relationship with foreign governments.

New strains enter the market

Here’s a couple good news for the consumer side of the market – the recreational cannabis stores will soon be stacked with new strains.

Natura Naturals’ recreational brand called 13 Leaves and Supreme Cannabis have both announced new strains.

13 Leaves will be introducing 4 new strains:

  • Take 5ive
  • 6ixth Sense
  • Se7enth
  • Cloud 9ine

On the other hand, the well-known rapper Wiz Khalifa announced that Supreme Cannabis and his company KKE (Khalifa Kush Enterprises) have joined forces to introduce his strain to Canada.

The rapper said that the Canadian market is extremely important to him as the idea for one of his mixtapes came about in Toronto.

Delta 9 to open a store in Manitoba

Winnipeg-based producer Delta 9 got conditional approval for its retail store the company plans to open in Brandon, Manitoba.

Delta 9 described the retail store as a cannabis ‘Super Store’ which indicates its size and product offering.

The Delta 9 Super Store will be located in a former liquor store in Shoppers Mall.

This will be the second store Delta 9 will open, as they already opened a  sleek and elegant store in Winnipeg.

The Cronos acquisitions

Lastly, the even that got announced just this morning, but many assumed it would happen for days – The Cronos acquisition.

The investment from Altria represents a 45% equity stake in Cronos Group, at a price of CAD $16.25 per share, for a total of $1.8 billion USD.

The agreement includes a warrant to acquire an additional ownership interest in Cronos Group at a price of CAD $19 per share in the next four years.

If Altria chooses to exercise those warrants, it would increase its ownership in Cronos Group by 10% to approximately 55%.

This is the second biggest investment in the Canadian cannabis market, only behind the Constellation-Canopy Growth deal.

Categories News

Experienced cannabis user, interested in the latest cannabis news, stock market updates and cannabis culture.

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