Jun 3, 2020
Cannabis Canada: Why one industry group wants more help from Ottawa amid the pandemic
BNN Bloomberg
Pot industry asking Ottawa for relief on regulatory payments to help save small players
Canada's pot industry is looking to get by with a little more help from Ottawa. An industry lobby group is asking the federal government to excuse regulatory fee payments this year to help distressed pot companies weather the current pandemic. Currently, licensed cannabis companies have to pay Ottawa 2.3 per cent of their annual revenue as part of a regulatory fee mandated alongside recreational legalization. That could mean millions of dollars stay on companies' balance sheets, giving firms impacted by COVID-19 a few more months of working capital rather than potentially having to shut down or file for creditor protection.
Aurora to take steep loss on Alcanna investment after divesting stake for $27.6M
Aurora is divesting its stake in cannabis and liquor retailer Alcanna for $27.6 million in proceeds. Alcanna announced on Wednesday that the divestiture comes through a secondary bought-deal offering from Aurora, which is selling its 23-per-cent ownership stake in the company for $3 per share. An $138 million investment in 2018 began Aurora's partnership with Alcanna, which operates 31 cannabis stores in Alberta and Ontario. RBC Capital Markets analyst Douglas Miehm said in a report Wednesday that Aurora can redirect its proceeds from the sale to its "core internal growth initiatives," which could reduce the need to dilute its shares for future financing needs.
Canopy Rivers reports $36.8M loss in Q4 following $11.2M impairment charge
Cannabis venture capital firm Canopy Rivers reported fourth-quarter results Wednesday with a $36.8-million loss. It also took an $11.2-million impairment charge after reassessing the value of several of its portfolio companies. In its outlook for the next fiscal year, Canopy Rivers said its income will continue to be largely driven by the value of its portfolio assets, adding it expects volatility in its future financial results. The company ended the quarter with $47 million in cash.
Choom buys CBD producer Phivida for $7.3M in all-stock deal
Shares of cannabis retailer Choom Holdings were up modestly on Wednesday after the company announced it acquired CBD producer Phivida Holdings in an all-stock deal worth $7.3 million. The deal will give Choom the ability to "accelerate the build-out of additional [cannabis] stores in Ontario and British Columbia", the company said in a statement. It will also help Choom improve its digital and ecommerce presence, the company added.
DAILY BUZZ
|
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the ongoing growth of the Canadian recreational cannabis industry. Read more here and subscribe to our Cannabis Canada newsletter to have the latest news delivered directly to your inbox every day.