Hexo announces $70M in private placement while postponing Q4 results for a week

Hexo is postponing its fourth quarter results after the Quebec-based cannabis producer said it raised $70 million in a private placement of convertible debentures on Wednesday. The financing, led by group of investors – including its chief executive and several board members – will use the proceeds for “working capital and general corporate purposes.” It also pushed back its Q4 results to Oct. 29 after stating it needs more time to complete its end-of-year audit. Hexo recently issued new guidance for its Q4 results, saying revenue should come in around $14.5 million to $16.5 million, down from roughly $26 million it had forecast previously.

Bonify's sales licence reinstated by Health Canada after suspension

Health Canada is reinstating Winnipeg-based Bonify Holdings Corp.’s licence to sell legal pot in Canada, according to exclusive reporting by BNN Bloomberg's David George-Cosh. It marks the first time the federal regulator has restored a suspended licence for a cannabis producer. Bonify's licence to sell legal cannabis in Canada was suspended in February after a third-party investigation revealed the company hired a broker to buy roughly 200 kilograms of pot that originated from an unauthorized source and was eventually sold into the Saskatchewan market.

Cresco-Origin House deal clears crucial U.S. DOJ hurdle

Cresco Labs' $1.1 billion acquisition for Origin House cleared a major hurdle late Tuesday, after the companies both announced the U.S. Department of Justice cleared the deal following a 30-day review period. That review showed no further requests for information or injunctions raised from the DOJ, which means it tacitly approves the deal. Cresco now can move forward with its deal for Origin House, which is expected to close midway through the fourth quarter of the year. Both companies are now working on closing the deal on “terms that will be mutually agreeable to both parties.”

Pinkies out for cannabis-infused tea at Quebec’s pot shops

Quebec’s cannabis retailer is shedding some light on what kind of products it plans to have available when edibles become available for sale next year. The Société québécoise du cannabis said it customers will soon be able to buy tea infused with cannabis as well as and beer-flavoured drinks at the SQDC, in addition to other drink additives and assorted edibles, according to MTL Blog. The website said the SQDC is likely to carry a non-alcoholic beer that would be malt-based, like a lager, and would feature some percentage of THC or CBD. It will also sell granola bars and muffins as well as hashish tablets made with resin.

Aphria looks to sell stake in Australian medical cannabis company

There’s another Canadian cannabis company reducing its exposure to the Australian marijuana market. Australian Financial Review reports that Aphria is looking to sell a portion of its minority stake in Althea, a medical cannabis company based in Melbourne. The Leamington, Ont.-based company owns 50.1 million shares in Althea, representing a 25 per cent stake after investing $8.1 million in the company, which also would sell Aphria-branded products in Australia. “While near-term material contribution is unlikely, we believe Australia remains a strategically important market longer term,” according to Jefferies analyst Owen Bennett. An Aphria spokesperson declined to comment on the Althea sale when reached by BNN Bloomberg. Earlier this month, Canopy Growth said it expects to make $6.3 million after selling its 13.2-per-cent stake in Australian medical cannabis supplier AusCann via an off-market block trade.

DAILY BUZZ

“Thousands of kilograms”
-- The amount vaguely offered by Zenabis Global and Tantalus Labs to describe how large the supply deal will be between the two companies over an initial two-year period.

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