Liberty Health investigation concludes no wrongdoing after short-seller report

Liberty Health Sciences said an independent investigation determined a short-seller report that detailed numerous allegations of insider self-dealing and overpaying for certain assets “was materially inaccurate” and “should not be relied upon.” The company found itself in the crosshairs of a report released by short seller Hindenburg Research in December, alleging that the Florida-focused company is part of the same “web of highly questionable deals,” that led it to short Aphria Inc. Liberty Health said it retained U.S. accounting firm Grassi & Co. last month to investigate the allegations, which were determined to be “inaccurate or out of date.” Hindenburg founder Nathan Anderson told BNN Bloomberg that Liberty Health’s investigation found no inaccuracies in his report and four of the company’s directors have resigned since its publication. “That should speak for itself,” he said.

High Tide signs up second Ontario pot shop licence winner

Alberta-based cannabis retailer High Tide signed a letter of intent to assist a second lottery winner who was selected to apply for one of the first 25 cannabis retail licences in Ontario. High Tide did not disclose the lottery winner, but said it plans to open a legal recreational cannabis store at a potential location in Hamilton. The deal is similar to a previous one it struck with another lottery winner announced earlier this month that, subject to regulatory approval, involves the acquisition of a minority interest and financial incentive for its assistance.

Biome Grow inks major CBD deal with CBD Acres

Biome Grow signed a memorandum of understanding with CBD Acres to source more than 80,000 kilograms of cannabidiol (CBD) over the next five years, in what the company calls one of the biggest such deals for a cannabis extract. CBD Acres contracted 4,500 acres across Canada to grow hemp – the plant that the cannabis extract is derived from and sell the CBD at “less than half” the market rate of $15,000 per kilogram, according to Biome’s CEO. Biome will obtain 3,000 kilograms of CBD this year, and up to 20,000 kilograms over the next four years, under the terms of the MOU.

Aurora moves forward on Polaris facility 

A day after reporting fiscal second quarter results that generally came in line with analyst expectations, Aurora Cannabis announced an update to its new facility expansion at the Edmonton International Airport. Aurora Polaris will be the company’s production hub for higher-margin cannabis products such as edibles and other ingestibles. Construction of the facility is scheduled for completion in late 2019, the company said.

Harvest bulks up pot shop licences on its home turf

U.S. cannabis operator Harvest Health & Recreation said in a statement it entered into a binding agreement with Devine Hunter to acquire six additional licenses in Arizona. If the deal closes, the new licences would give Harvest a total of 16 throughout its home state of Arizona, the country’s third-largest cannabis market. Before this transaction, Harvest was already the largest operator in Arizona. Financial terms of the deal were not disclosed. Harvest now controls licenses for 86 dispensaries, 23 cultivation facilities, and 22 processing facilities across the country. 

DAILY BUZZ

US$6 billion 
– How much cannabis has been sold in Colorado since sales of the drug became legal in the state in 2014

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