Canadian cannabis stocks continue to attract new investors, new institutional capital, and new strategic partners as legal recreational cannabis will help the industry see incremental growth for years to come.
Although this week is a short week due to the Monday’s holiday, Canadian firms continue to report significant company developments and we want to highlight three stories that investors need to be aware of.
Tetra Enters Strategic Partnership and Changes its U.S. Symbol
Tetra Bio-Pharma (TBP.CN: CSE) (TBPMF) signed a definitive agreement with Panag Pharma for the development and commercialization of novel cannabinoid based formulations for the treatment of pain and inflammation. This partnership combined with the company’s patent filing last week could make this a profitable relationship. Tetra is focused on generating revenue in 2017 by launching retail products via its partnership with Panag.
Under the agreement, Tetra will have the exclusive right to sell the ocular and topical drug products in North America with right of first negotiation for international markets. Tetra will also have a right of first negotiation for future cannabinoid-based products.
Tetra will work with Panag’s team to ensure a rapid and successful process leading to marketing authorization. Panag will continue to develop new novel products for unmet medical need and Tetra will focus on commercializing these products.
Panag has developed potential new cannabinoid-based therapies for ocular and topical anti-inflammatory and pain markets. The company also developed a cannabinoid topical drug product for the local treatment of pain and inflammation.
Tetra also issued a corporate update and highlighted the following:
- Changed its U.S. OTCQB symbol to TBPMF
- Issued 501,800 new shares as part as of a service agreement from June 20, 2016.
- Issued 250,000 new shares as part of a service agreement with MAPH Enterprises to broaden U.S. investor awareness.
Canadian Biotech Firm to Raise $5+ Million
InMed Pharmaceuticals (IN.CN: CSE) (IMLFF) entered an underwriting agreement with a syndicate of underwriters led by Canaccord Genuity and includes Eight Capital along with Roth Capital Partners (placement agent). The underwriters agreed to purchase, on an underwritten basis, 11,120,000 units at $0.45 each for $5 million in aggregate gross proceeds.
InMed plans to use the proceeds for the following reasons: 1) To support the continued research and development of INM-750 for the treatment of Epidermolysis Bullosa, 2) To further develop the company’s other research and development programs including its biosynthesis assets, 3) For general and administrative expenses, and 4) To fund working capital.
Each unit is comprised of one common share and one-half share purchase warrant. The warrant has an exercise price of $0.65 and will be exercisable for a period of 24 months following the closing date. The offering is expected to close by May 30th. InMed granted the underwriters the option to purchase up to 1,668,000 additional units at $0.45 each for a period of up to 30 days after the closing date. If this option is exercised in full, the company will generate $5.75 million in aggregate gross proceeds.
Marapharm Looks to Enter Nevada’s Recreational Market
Yesterday, Marapharm Ventures (MDM: CSE) (MRPHF) took a significant step forward in its plans to take advantage of the Nevada recreational cannabis market. Marapharm acquired two fully equipped buildings that meet Nevada’s state licensing requirements and the company must move quick if they want to take advantage of this huge opportunity.
Marapharm’s buildings were inspected and given pre-approval for cultivation and processing. If the company can be approved before May 31st and conduct a taxable transaction, it will be allowed to apply for licensing under the state’s recreational program.
Nevada’s department of taxation is currently accepting applications for recreational cultivation, production, lab and retail store licenses, from existing Nevada marijuana establishments that hold valid registration certificates.
Marapharm has 300,000 square feet of medical marijuana licenses for its land and facilities in Washington state and Nevada. About three years ago, Marapharm applied in Canada to Health Canada and the application is currently in the in-depth screening process. In September, Health Canada contacted Marapharm with a provision to amend its application to allow for the new regulations, ACMPR.
We are on the sidelines but think this is a story and a stock investors should keep an eye on!
Author: Michael Berger
Disclaimer: Pursuant to an agreement between MAPH and InMedPharmaceuticals., we were hired for a period beginning February 24 2017 and ending April 24, 2017 to publicly disseminate information about (IMLFF) including on the Website and other media including Facebook and Twitter. We are being paid $40,000 (CASH) for and were paid “250,000” shares of restricted common shares of InMed Pharmaceuticals.We may buy or sell additional shares of (IMLFF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Pursuant to an agreement between MAPH and Tetra Bio-Pharma, we were hired for a period of 90 days to publicly disseminate information about (TBPMF) including on the Website and other media including Facebook and Twitter. We are being paid $75,000 (CASH) for and were paid 250,000 restricted common shares of Tetra Bio-Pharma. We may buy or sell additional shares of (TBPMF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
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