Coca-Cola Planning to Have Drinks With Aurora Cannabis?
Momentum Public Relations
Blog: September 18 2018
Coca-Cola Planning to Have Drinks With Aurora Cannabis
Global Soft Drink Market Pegged at US$605.6 Billion by 2025
Marijuana Industry Acquisitions Continue
Acquisitions, partnerships, branding and product development have all been on the increase in the legal marijuana industry this year as recreational marijuana legalization comes closer to becoming reality.
You can now begin to see a consumer product rollout that is remarkable in many ways. A new industry that cuts a broad swath in consumer goods is being developed and that Canadian industry is doing its best to reach out and conquer world markets. As well as medical and recreational marijuana CBD infused cosmetic and wellness products are being developed, as well as hemp clothing and THC infused beer.
On Monday September 17, 2018 the news broke that Coca-Cola (KO-NYSE) and Aurora Cannabis (ACB-TSX) were in talks about developing a non-psychoactive cannabis infused soft drink. CNBC reported that pot stocks jumped on the news with Aurora gaining more than 15% as of mid-day. Speculation exists that Coke wants to develop a CBD infused beverage in Canada so that it can launch it in America when marijuana laws there are relaxed.
Earlier in the summer Molson-Coors announced a deal with Hydropothecary (HEXO-TSX) to develop a THC infused beer. Marijuana is going mainstream faster than imagined and industry players are scrambling to gain a piece of what may be one of the last and biggest market rollouts.
Coca-Cola is the largest beverage company in the world and if the Molson-Coors (TAP-NYSE) Hydropothecary beer agreement didn’t give the industry legitimate credibility then the forthcoming agreement with Coca-Cola should. Based on information from an anonymous source the story said that if consummated the partnership would develop health-focused beverages or recovery drinks designed to alleviate inflammation, pain and cramping.
In a statement Aurora issued to CNBC the company described the infused-beverage space as having “incredible potential.” In a statement that Coca-Cola sent to CNBC Coke said: “Along with others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time.” The anonymous source described the discussions as “serious.”
Grand View Research has predicted that the global soft drink market will hit US$605.6 billion by 2025.
Crop Infrastructure (CROP-CSE) announced on September 13, 2018 in a press release that it too was entering the soft drink market with a cannabis-infused beverage, Canna Drink, that would have zero calories, be non-GMO, ketogenic-friendly and be available in both tea and coffee versions. Crop Infrastucture Director and CEO Michael Yorke said in the release that: “We see it as a tremendous opportunity for Crop Infrastructure’s branding & IP portfolio and as an auxiliary opportunity for each of our cultivation tenants globally.”
“Functional beverages are a new class of products that offer beyond basic nutritional ingredients, including vitamins, minerals, herbs, amino acids and probiotics. We believe that cannabis’s medically known benefits will enhance our own formulations, so we are bang on target with our CANNA DRINK line.”
Crop Infrastructures is a sophisticated company that has modelled its business plan on REITs, creating a real estate type marijuana investment trust. It owns properties in jurisdictions where recreational marijuana is legal and offers tenants infrastructure, branding and expertise. The company has recently expanded to Jamaica . Crop has also announced that by the end of the year it will open two retail locations in Northern Italy to sell the Urban Juve product line of hemp oil infused wellness, cosmetic and therapeutic products.
While the secondary market, products infused with CBDs, is roaring into life, acquisitions and agreements are still being made as legalization approaches.
Aurora Cannabis’ $290-million all share deal to buy ICC Labs is the latest acquisition to fuel rising share prices. Aurora has already bought up to 10 companies in the last two years. The deal is a reminder that Canada is not the only marijuana playing field and that industry leaders are busily paving the way for international expansion when more countries legalize recreational consumption.
In a telephone interview with The GrowthOp, Postmedia’s marijuana news website, Aurora’s chief corporate officer Cam Battley said: “We feel a significant sense of urgency to rapidly establish a powerful global footprint. We see ICC as the jewel of the South American market. This is going to be our anchor in South America and we have very big plans for that continent.”
The jewel that prompted Aurora’s purchase was the fact that ICC has 70% or more of the Uruguayan market. Uruguay legalized marijuana in 2013, becoming the first country in the world to do so. As well as having majority market share in Uruguay, ICC Labs also comes with Columbian licenses to grow medical marijuana and an agreement to sell CBD products to Mexico.
In the meantime, Aphria (APH-TSX) has more or less cleared the decks by selling its interest in Liberty Health Sciences for almost $60 million. According to a Canadian Press article published on September 6, 2018 in the Financial Post Aphria has sold the shares to several investors and the deal contains an option to repurchase the shares within five years.
Aphria now has money in its war chest to finance further acquisitions and opportunities. TSX regulations forced the company to sell its shares in Liberty because marijuana is illegal under federal American legislation and Aurora was threatened with delisting if it did not comply. The company intends to return to the American market when regulations change, hence the buyback option.
Canada’s largest marijuana producer, Canopy Growth(WEED-TSX), appears to just keep getting bigger. On September 5, 2018 it announced that it had acquired Hiku Brands in exchange for Canopy Growth shares. The deal improves Canopy’s retail and branding position.
Hiku is an attractive acquisition for Canopy. It has a subsidiary, DOJA Cannabis, a licensed ACMPR producer with two British Colombia based production facilities in the Okanogan Valley. Another subsidiary, TS Brandco Holdings has one of four master retail licenses in Manitoba. The company also has a chain of retail outlets branded as Tokyo Smoke in British Columbia, Alberta and Ontario.
All of this only goes to show that the Canadian marijuana industry is a global leader and that as countries begin to decriminalize possession, Canadian companies will be able to significantly grow their operations because of their existing footprint. All the major Canadian marijuana producers have foreign operations.
This blog was written for information purposes only and should not be mistaken for investment advice. In the interests of transparency Crop Infrastructure is a Momentum client.
Tetra Bio-Pharma names Aphria CFO as Chairman of Audit Committee
Momentum Public Relations
Press Release: February 26, 2018
Tetra Bio-Pharma Inc. (“Tetra” or the “Corporation”) (TSX VENTURE:TBP)(OTCQB:TBPMF), announced changes to its Board of Directors (the “Board”) today, including the appointment of Aphria Inc.’s Chief Financial Officer (CFO), Mr. Carl Merton, as Chair of Tetra’s Audit Committee.
In addition to his extensive financial background, Mr. Merton is a Chartered Accountant and has served as a past Chair of both the CICBV and the International Association of Professional Business Valuators. Mr. Merton is currently a member of the Board of Directors and Chair of the Audit Committee of Motor City Community Credit Union.
Mr. Merton has served on the Tetra Board since 2016 and brings over 20 years of financial and business experience to the Audit Committee. He replaces Mr. Robert Brouillette, whose resignation was accepted immediately upon the Board becoming aware that a decision had been rendered by a professional regulatory organization against Mr. Brouillette in relation to professional activities unrelated to his responsibilities as a director of Tetra.
Mr. André Rancourt, Tetra’s Chair, was also named to the Audit Committee. Mr. Rancourt also acts as a consultant on several commercial strategy committees including FIA and IRZC. He has significant practical experience that provided him with expertise in many fields, including human and animal natural health products. Over the last ten years, he worked as a consultant to re-organize the operations of companies on behalf of several venture capital investment funds.
“These appointments further strengthen our corporate governance practices,” said Tetra CEO Bernard Fortier. “Both Mr. Merton and Mr. Rancourt have stellar reputations in the capital market and will continue to provide our management team and our entire Board with support and guidance as we embark on the next stage of our growth.”
About Tetra Bio-Pharma:
Tetra Bio-Pharma (TSX VENTURE:TBP)(OTCQB:TBPMF) is a biopharmaceutical leader in cannabinoid-based drug discovery and clinical development. Tetra is focusing on three core business pillars: clinical research, pharmaceutical promotion and retail commercialization of cannabinoid-based products.
More information at: www.tetrabiopharma.com
Source: Tetra Bio-Pharma
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Corporation believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Corporation’s ability to control or predict, that may cause the actual results of the Corporation to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to obtain sufficient financing to execute the Corporation’s business plan; competition; regulation and anticipated and unanticipated costs and delays, the success of the Corporation’s research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, the timing of clinical trials, the timing and outcomes of regulatory or intellectual property decisions and other risks disclosed in the Corporation’s public disclosure record on file with the relevant securities regulatory authorities. Although the Corporation has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. While no definitive documentation has yet been signed by the parties and there is no certainty that such documentation will be signed The forward-looking statements included in this news release are made as of the date of this news release and the Corporation does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
Tetra Bio-Pharma Inc.
Andre Rancourt
Executive Chairman
andre.r@tetrabiopharma.com
(438) 899-7575
- Published in Tetra Bio Pharma, Uncategorized
Sun Life Signals the Start of Mass Medical Cannabis Market
Momentum Public Relations
Blog: February 16 2018
Sun Life Signals the Start of Mass Medical Cannabis Market
Aphria Becomes SAQ Recreational Marijuana Supplier
Tetra Bio-Pharma Receives Approval for Phase Three Medical Cannabis Cancer Chronic Pain Treatment
As the countdown to marijuana legalization accelerates the acceptance of medical cannabis has become more common. A defining moment has taken place with the decision by the Sun Life Assurance Company of Canada to include medical cannabis in group benefit health plans. It is the first Canadian insurance company to do so.
According to the Globe And Mail, employers will have the option of including medical cannabis coverage under an extended group health care benefit plan, starting on March 1, 2018.
As any Canadian knows Sun Life is a huge company. Its benefit plan serves 22,000 companies and covers more than five million employees and dependents.
In the Globe And Mail Story by Clare O’Hara, the senior vice-president of group benefits at Sun Life, Doug Jones, is reported to have said that the company decided to include medical cannabis coverage in its group benefit health plans because the companies it offered coverage to were asking about cannabis coverage on an increasing basis.
Employers will now have the choice about whether to include medical cannabis coverage and up to what level. Under the new system, coverage will be available from $1,500 to $6,000. So far coverage is going to be extended to five severe conditions including chronic cancer pain, nausea associated with chemotherapy and palliative care.
Eight Capital has predicted the international medical cannabis market at C$180 Billion within 10-15 Years.
Sun Life obviously sees medical cannabis coverage as a valuable commodity either in terms of customer retention or customer acquisition.
A significant factor in all of this is that Sun Life is offering coverage without the benefit of a DIN number. DIN stands for drug identification number. A DIN number is awarded to a drug that has successfully gone through clinical testing and been approved by Health Canada in Canada or the Food and Drug Administration in the United States.
Once a drug has a DIN number it can be legally prescribed by doctors and covered under insurance plans. While Canada has been allowing the sale of medical marijuana through licensed growers nobody yet has actually proved that medical marijuana works.
That is about to change. Montreal-based Tetra Bio-Pharma, (TSXV: TBP) (OTCQB: TBPMF) has just received Health Canada approval for the phase 3 clinical trial of a smokable dried cannabis prescription drug. The drug, now known as PPP001, targets chronic pain, as well as pain associated with advanced cancer.
The clinical testing is designed to prove the safety and efficacy of medical cannabis and specifically of PPP001. Tetra Bio-Pharma CEO Bernard Fortier describes it like this: “It will be a landmark trial. It will be a landmark approval. It will be the first smokable cannabis drug that will be approved, as a legitimate drug, to be prescribed by physicians.”
Tetra has a strong development pipeline featuring drugs that treat chronic pain, nausea, insomnia, PTSD, and eye ailments. As CEO Bernard Fortier says, “We are not a one molecule company.”
In late 2017 Tetra launched its first product, the trademarked Rx Princeps, a unique blend of dried medical marijuana used in its ongoing clinical trials for PPP001, a chronic pain treatment for terminal cancer patients. Rx Princeps is available for registered medical marijuana users in Canada through Tetra’s partner and licensed medical cannabis producer Aphria Inc.
Aphria, (TSXV: APH) (USOTC:APHQF) has recently been snapping up other licensed growers in the industry and is Canada’s lowest cost cannabis producer. It has also just signed a deal to become one of the six licensed growers chosen to provide marijuana to Quebec’s Societe des alcohols du Quebec (SAQ), the provincial liquor agency chosen to also distribute marijuana when legalization comes into effect. Aphria will be providing up to 12,000 Kgs of marijuana to Quebec annually.
With six different growers all offering different types of marijuana it would seem fair that Quebec is going to treat marijuana much as it does wine by providing a wide variety of product. Marijuana has come a long way but it still offers an investment opportunity in either producers or drug development companies like Tetra that may not come again.
- Published in Blog, Medical Marijuana, News Home, Tetra Bio Pharma