From legacy to legal, the cannabis market belongs to who?

Three years ago, Canada legalized cannabis, but the market did not come with products familiar to most Canadian customers. Beloved small growers and their brands could not make Health Canada‘s initial cut, including a shortlist of former licensed producers. A shift from legacy to legal industry occurred, but license holders don’t own the industry because […]

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Canopy Growth to Acquire Wana Brands in $300M Deal

Cannabis industry powerhouse Canopy Growth Corporation announced that it has entered an agreement to acquire Wana Brands, the continent’s largest cannabis edibles brand by market share, in a deal worth nearly $300 million. Under the terms of the agreement, Canopy has secured options to purchase Wana and its related entities once THC products become federally legal in the United States. 

“As we establish Canopy Growth as the world’s leading cannabis company, acquiring the number-one cannabis edibles brand in North America will serve to strengthen our market position in both Canada and the United States,” Canopy Growth CEO David Klein said in a press release. 

“The right to acquire Wana secures another major, direct pathway into the U.S. THC market upon federal permissibility, and in Canada, we’ll be adding the top-ranked cannabinoid gummies to our industry-leading house of brands. We’re confident in the future growth of the edibles category and the tremendous opportunities with Wana.”

The agreement provides Canopy Growth the right to acquire 100 percent of the outstanding membership interests in Wana Brands and its related entities Mountain High Products, Wana Wellness and The Cima Group, upon the federal legality of THC in the U.S. market. 

When exercising the option, Canopy Growth will make an additional payment equal to 15 percent of the fair market value of each entity at the time it is acquired. The two companies will continue to operate independently until the options are exercised.

Deal Will Unite Two Major Players

Wana manufactures and sells cannabis gummies in Colorado and licenses its intellectual property to partners producing cannabis edibles in 11 other states including California, Arizona, Illinois, Michigan and Florida, as well as across Canada. 

Canopy Growth is a Canadian-based cannabis and cannabinoid consumer products company serving adult-use customers with an array of regulated marijuana products through its Tweed and Tokyo Smoke branded dispensaries in Canada. The company also operates the medical brand Spectrum Therapeutics, which is a market leader in both Canada and Germany. 

In the United States, Canopy Growth offers hemp-derived CBD products via the First & Free and Martha Stewart health and wellness brands, giving the company a global footprint in cannabis and cannabis-related products. Additionally, in 2019, Canopy Growth announced a deal giving it the right to acquire U.S. multistate cannabis operator Acreage Holdings. Canopy Growth also has a conditional ownership interest in TerraAscend, another U.S.-based MSO.

Adding Wana Brands to its portfolio gives Canopy Growth several strategic benefits, including strengthening its access to the U.S. market. The deal leverages Wana’s leadership position and continuing expansion in the U.S., where it has the largest multi-market presence of any independent cannabis edibles brand. 

When Canopy exercises the acquisition option, it will own and operate Wana’s vertically integrated production facility in Colorado as well as its licensing division, which currently has deals in 11 states with plans to cover more than 20 states by the end of 2022. 

The acquisition will also give Canopy Growth a strong position in cannabis gummies, which are one of the fastest growing segments of the Canadian and US edibles markets, accounting for 71 of all edibles purchased, according to data from Headset.

“Edibles play a key role in attracting new consumers and adding the number-one edibles brand in North America strengthens our competitive position on both sides of the border,” Klein told Forbes in an interview. “In addition to our existing relationships with Acreage and TerrAscend, the agreement with Wana furthers Canopy’s positioning for rapid entry post-permissibility to the US THC market.”

Nancy Whiteman, the co-founder and CEO of Wana Brands, said that the announcement of the deal with Canopy Growth “reflects the culmination of more than a decade of hard work, dedication and vision put forth by our employees and partners, as well as an unwavering commitment to the plant and -our customers.” 

“We have long considered what the next phase of our growth might look like, and this deal is not only a great testament to our focus on bottom line growth and fiscal diligence, but also to the value we believe Wana can bring to Canopy and its shareholders now and in the future,” Whiteman said. 

“We have met many partners along the way over the past 11 years, but none have felt like the best and right fit until today. We are incredibly humbled and honored to be part of what Canopy Growth is building in terms of the future of this industry.”

The post Canopy Growth to Acquire Wana Brands in $300M Deal appeared first on High Times.

Is medical cannabis still green under a Liberal minority?

Child care, vaccines, gun policy, and a slue of other topics have left cannabis out of the Liberal’s $612 million 2021 election campaign. So, we cannot measure medical cannabis and its green future under a continued Liberal Minority. The direction of the legal cannabis industry under the Liberal’s ideologies over the past three years gives […]

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2 Cannabis Stocks to Check in June

Given current trends, the cannabis industry is poised to make a rebound during this third wave, these are 2 cannabis stocks to check in June. With post-pandemic aspirations on the horizon for investors globally, people are gearing up for a major rebound on the stock markets. Canopy Growth Since cannabis legalization, Canopy Growth has dominated […]

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Canopy Growth Corporation patented cannabis extraction infringed, CGC v. GWPH

Canopy Growth Corporation acquired a patented cannabis extraction technique that GW Pharmaceuticals allegedly infringed. So, two giant players in Canada’s commercial cannabis are now in a head to head legal battle. The U.S. District Court for the Western District of Texas will host this landmark battle. Greenwich Biosciences is a US subsidiary of GW Pharmaceuticals […]

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Is Canopy Growth the Cannabis Stock to Buy Right Now?

Pot stocks have been having a moment ever since the November election, including Canopy Growth stocks, which have risen 51% since November.  The Canadian cannabis giant has been eagerly awaiting for the US to legalize marijuana on a federal level so it can take advantage of the massive market.  But is buying stocks right now […]

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These Are The 7 Cannabis Stocks to Buy Before 2021

This year has seen the economy take one of its biggest hits ever. But it might also be one of the best times to buy stocks in cannabis. Thanks to the US election, residents in Arizona, Montana, New Jersey, and South Dakota all voted to legalize recreational marijuana. Due to which, cannabis stocks have been […]

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What Does Hemp Legalization Mean for Selling CBD

As 2018 drew to
an end, the cannabis industry faced a seismic change: Congress had passed (and President
Trump had signed) the 2018 Farm Bill, thereby legalizing hemp — defined as
cannabis with less than 0.3 percent THC. Cannabis reporters’ inboxes filled up
with statements from industry folk “celebrating” and “applauding” the federal
government for removing industrial hemp from the list of federally controlled
substances. They were mostly celebrating one thing: the cannabinoid CBD now had
a path to mainstream legality.

Despite hemp’s murky legal status before the Farm Bill, CBD has become a huge health-and-wellness trend, popping up in coffee shops, cocktail bars and health-food stores all over the country. The hemp-CBD industry ballooned to $590 million in 2018, according to Bethany Gomez, director of research for the Brightfield Group. Hemp farmers can earn $200 to $400 an acre if their crops are going into textiles, building materials and plastics. But crops heading towards CBD extraction can fetch thousands of dollars per acre, reported the Wall Street Journal.

So what does hemp legalization mean for cannabinoids such as CBD being treated as a commodity?

Unfortunately for
some hemp operators, the Farm Bill wasn’t immediately the miracle legislation
that they’d hoped for. After the bill’s passage, as the Department of
Agriculture continues to craft the rules around hemp, business owners have seen
their CBD products confiscated by U.S. Food and Drug Administration officials
and their hemp shipments seized by law enforcement for crossing state lines. The
FDA has insisted that CBD is a
drug, and therefore illegal to add to other products without FDA approval. While
the industry continues to grow, it’s still unclear how the federal agency will
manage the disconnect between CBD as a federally regulated drug and a thriving
industry that views the non-intoxicating cannabinoid as a dietary supplement.

A lack of clarity hasn’t stopped traditional retailers from jumping into the space, with both DSW and Neiman Marcus announcing in January that they would start stocking CBD cosmetics. The CBD trend is only poised to grow as mainstream companies get in on the action. But it isn’t only CBD: hemp plants can produce other cannabinoids, too.

The Other Players in the Entourage

The CBD trend will “absolutely 100%” extend to other cannabinoids, said Cristina Buccola, an attorney who has worked with marijuana and hemp companies. “There’s already a commodification of other cannabinoids, including CBG and CBDV… As more people get educated and as research avenues open up — it’s just a matter of time.”

Indeed, cannabis businesses are already developing ways to produce minor cannabinoids in greater quantities, hoping to harness their (still little-researched) therapeutic properties. Companies like Ebbu, which was acquired by Canadian cannabis giant Canopy Growth last October, see a future in which the cannabis market will be dominated by isolated cannabinoids. Other companies are looking to produce cannabinoids without the help of cannabis, such as growing them on genetically edited yeast.

The proposition
is sure to cause consternation among cannabis consumers who tout the entourage
effect of the cannabis plant. But for a more cannabis-naïve consumer, the
promise of consistent formulations could be an attractive selling point. Then
there’s the pharmaceutical industry, which has long been isolating compounds
from plants to turn them into drugs.

Pharma companies have already developed an interest in other cannabinoids. In February 2018, the FDA gave orphan drug status to a cannabigerol (CBG) derivative produced by Emerald Health Pharmaceuticals for treating Huntington’s disease. Across the pond, the European Medicines Agency gave orphan drug status for cannabidivarin (CBDV) to GW Pharmaceuticals, the company that also produces the first FDA-approved CBD drug in the U.S.

THC’s Status in the Cannabinoid Market

Given that industrial hemp can produce all these minor cannabinoids, where does that leave the much-appreciated THC? After all, there’s no meaningful difference between marijuana and industrial hemp plants, as they are now legally defined, using the arbitrary designation that hemp contains less than 0.3 percent THC. Researchers and businesses alike will find it easier to work with industrial hemp, and may choose to focus their efforts there until the feds fully legalize cannabis. But there’s definitely a long way to go before cannabinoids are truly a commodity.

If the U.S.
repeals cannabis prohibition, there are other countries to contend with.
Recently, narcotics officers raided a beauty supply store in Singapore,
confiscating a bunch of mascara. The offense? The mascara contained oil derived
from hemp seeds. Has anyone told the Singaporean authorities that the stuff
won’t get you high?

“We’re still
overcoming the stigma of cannabis in so many ways, including educating people
about THC and industrial hemp, and eliminating concerns about ‘getting high,’”
said Buccola, who demurred when asked to prognosticate about the future of the
marijuana and hemp markets.

“I don’t think we
can even put our arms around what that looks like because there are so many
layers of prohibition and misinformation to peel back before we can understand
the potential of either market.”

TELL US, do you choose products based on their cannabinoid profiles?

Originally published in print edition of Cannabis Now. LEARN MORE

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Tuesday, May 5, 2020 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Tuesday, May 5, 2020 | Curated by host Shea Gunther

// Constellation Brands Injects C$245 Million Into Canopy Growth by Exercising Expiring Warrants (New Cannabis Ventures)

// Nebraska Medical Marijuana Campaign’s New Signature Strategy Involves Masks And Disposable Pens (Marijuana Moment)

// Massachusetts Lawmakers Will Debate Bill To Provide Marijuana Businesses With Coronavirus Relief This Week (Marijuana Moment)


These headlines are brought to you by Green Worx Consults, a company specializing in project management, workflow mapping and design, and Lean & 6 Sigma process. If you could use help making your business better at business, get in touch with Green Worx Consults.


// Colorado Won’t Rule Out Curbside Dispensary Options Post-COVID (Denver Westword)

// This is America: Super Bowl champ arrested for enjoying ‘essential’ product (Leafly)

// Dozens of states OK telemedicine for medical marijuana recommendations (Marijuana Business Daily)

// How 4/20 played out for marijuana businesses around the US (Marijuana Business Daily)

// MedMen temporarily closes most Florida stores (Florida Politics)

// New Zealand issues ‘unprecedented’ recreational cannabis bill ahead of referendum (Marijuana Business Daily)

// Need a Job? The Weed Industry Is Still Hiring Despite the Economic Downturn (Merry Jane)


Check out our other projects:Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement. • Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

Love these headlines? Love our podcast? Support our work with a financial contribution and become a patron.

Photo: Andrew Zhigaloff/Flickr

Tuesday, May 5, 2020 Headlines | Marijuana Today Daily News

Marijuana Today Daily Headlines
Tuesday, May 5, 2020 | Curated by host Shea Gunther

// Constellation Brands Injects C$245 Million Into Canopy Growth by Exercising Expiring Warrants (New Cannabis Ventures)

// Nebraska Medical Marijuana Campaign’s New Signature Strategy Involves Masks And Disposable Pens (Marijuana Moment)

// Massachusetts Lawmakers Will Debate Bill To Provide Marijuana Businesses With Coronavirus Relief This Week (Marijuana Moment)


These headlines are brought to you by Green Worx Consults, a company specializing in project management, workflow mapping and design, and Lean & 6 Sigma process. If you could use help making your business better at business, get in touch with Green Worx Consults.


// Colorado Won’t Rule Out Curbside Dispensary Options Post-COVID (Denver Westword)

// This is America: Super Bowl champ arrested for enjoying ‘essential’ product (Leafly)

// Dozens of states OK telemedicine for medical marijuana recommendations (Marijuana Business Daily)

// How 4/20 played out for marijuana businesses around the US (Marijuana Business Daily)

// MedMen temporarily closes most Florida stores (Florida Politics)

// New Zealand issues ‘unprecedented’ recreational cannabis bill ahead of referendum (Marijuana Business Daily)

// Need a Job? The Weed Industry Is Still Hiring Despite the Economic Downturn (Merry Jane)


Check out our other projects:Marijuana Today— Our flagship title, a weekly podcast examining the world of marijuana business and activism with some of the smartest people in the industry and movement. • Marijuana Media Connect— A service that connects industry insiders in the legal marijuana industry with journalists, bloggers, and writers in need of expert sources for their stories.

Love these headlines? Love our podcast? Support our work with a financial contribution and become a patron.

Photo: Andrew Zhigaloff/Flickr