Canopy Growth sold 9.9% of its shares to a Fortune 500 company for little under $200 million US.
Resolve Digital Health is well on its way to becoming the leading provider of a dosing ecosystem for medical cannabis devices.
Resolve has recently announced their partnership with Aphria, one of Canada’s largest cannabis producers.
Aphria and Resolve join forces
According to the terms of their agreement, Aphria is to provide cannabis to fill Resolve’s proprietary delivery pods and cartridges for sale on the Canadian medical market.
Rob Adelson, CEO of Resolve said that this partnership will vastly improve Resolve’s chances on the domestic market.
“This agreement allows Resolve to take a significant step towards launching the first of our Breeze Smart InhalersTM domestically. Both organizations have impressive growth trajectories, and combining Resolve’s innovative technology with Aphria’s high-quality medical cannabis will allow us to disrupt the Canadian market,” – Rob Adelson
Given that Canada’s medical market is growing at a ridiculous pace (268% increase since 2016), it is expected that many Canadians will be looking into this product.
However, one could also expect Resolve to try and get in the US cannabis market, given that the medicinal market is supposed to be around $13 billion USD in just 2 years.
Constellation Brands acquire 9.9% of Canopy Growth
Another well known Canadian cannabis growing company, Canopy Growth, has announced that they will be selling almost 10% of their shares to Constellation Brands Inc.
Constellation Brands is a Fortune 500 company that holds stock options in Corona beer, Black Velvet Whisky, and Casa Noble tequila, so it is safe to say that they definitely know how to play the vice game.
Rob Sands, president, and CEO of Constellation Brands said that he believes the US government will legalize cannabis on the federal level, given that more than half of the states have opted-in for some form of cannabis legalization.
Even if the federal government doesn’t legalize cannabis in the near future, Canada will. Selling cannabis beverages will be legal in Canada by 2019.
This move puts Sands in a very weird situation since it has shown that cannabis users tend to decrease their alcohol consumption.
Consumer survey suggests that ~80% of consumers reduce their alcohol consumption with cannabis in the mix.