Canadian Lp’s Look South of The Border for Value

Although cannabis laws in Canada are less restrictive than the United States, Canadian cannabis companies still want to access the U.S. market.

TSX-traded Aphria Inc. (APH.TO) (APHQF) is probably the best example of this. The company has made several investments in U.S. cannabis companies. From Arizona to Colorado, from cultivation to technology, Aphria is levered to some of the most attractive cannabis markets in North America.

First of what will be Many International Partnerships

In mid-October, Aphria and MassRoots, Inc. (MSRT) announced one of the first international partnerships between cannabis companies. Under the agreement, MassRoots will help build awareness of the Aphria brand amongst its Canadian user base.

In return, Aphria will compensate MassRoots with a cash fee per patient it refers and also invest $250,000 into the cannabis social media company. Aphria purchased 500,000 shares and 500,000 warrants to buy shares at $0.90

This partnership looks to be working out well for both parties as MassRoots continues to grow its user-base (broke the 1 million user mark in March) and after Aphria invested more by exercising the warrants early.

An Execution Story

Aurora Cannabis Inc. (ACB.V) (ACBFF) announced that it completed the acquisition of Peloton Pharmaceuticals Inc., a Montreal-area late-stage ACMPR-applicant.

Peloton is building a 40,000 square foot production facility which received a “ready to build” letter from Health Canada in 2014. At full capacity, itcan produce up to 3,900 kg per year. Aurora thinks the facility is 80% complete and can be ready for Health Canada’s pre-licensing inspection by the second half of 2017.

Pursuant to the terms of the proposal, Aurora has funded a total investment pool of up to an aggregate of $7,000,000, subject to post-closing adjustments, comprised of cash and common shares of Aurora for distribution to creditors.

The Peloton site will be Aurora’s third growing facility, in addition to the 55,200 square foot facility in Cremona, Alberta and “Aurora Sky”, its 800,000 square foot facility currently under construction at Edmonton International Airport, in Leduc County, Alberta.

Aurora continues to execute on its initiatives and is a company that every investor should watch. The company is led by a management team who continues to create value for shareholders through strategic acquisitions, investments, or partnerships.

Lexaria Further Strengthens its Balance Sheet

Yesterday, Lexaria Bioscience Corp. (LXRP: OTCQB) (LXX: CSE) significantly strengthened its balance sheet after it completed its previously announced brokered private placement. The company sold 4,104,280 units at $0.42 each and generated $1,723,798 of gross proceeds.

Lexaria plans to use the net proceeds to fund its research collaboration with National Research Council Canada. The funds will also be used for general corporate purposes and to support other Lexaria-developed R&D related to the delivery and bioavailability of cannabis, vitamins, NSAIDs and nicotine.

Each unit consists of one common share and one-half of one share purchase warrant. The warrant have a two-year term following the closing of the financing and allows the holder to acquire one share of common stock at $0.60 a share.

Lexaria is a food biosciences company with a proprietary technology for improved delivery of bioactive compounds. Over the last six months, the company has made incredible strides and during this time, it has strengthened its balance sheets, it has secured new strategic partners, and it has continued to execute on its business plan.

We are favorable on the company’s patent-protected technology for CBD and all other non-psychoactive cannabinoids and believe it is underappreciated by the street. Its lipophilic enhancement has been shown to enhance the bioavailability of orally ingested cannabinoids, while also improving taste.

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Source: Technical 420