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/R E P E A T — SOL Global Announces Proposed Change of Business to U.S. Cannabis MSO, Rebranding to Bluma Wellness Inc./

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SOL Global Investments Corp. (“SOL Global” or the “Company“) (CSE:SOL (OTCPK:SOLCF) ) (Frankfurt:9SB), is pleased to announce today a proposed change of business of SOL Global from an international cannabis investment company to a U.S. multi-state cannabis operator (“MSO“) under the Life Sciences category of the Canadian Securities Exchange. They have also announced a change in the call-in number of its previously announced conference call to discuss corporate updates and their fiscal 2019 results.

The MSO’s initial operations will include assets in three (3) of the top ten (10) cannabis markets by revenue in the U.S., as forecasted by ArcView market research – Florida, Michigan and California.  The Company has focused in on a path to profitability by keeping the capital expense and the operating expense low with an efficiency-driven model of integrating operations and streamlining management, brand deployment and the Company’s proprietary delivery models across all three (3) states, all while being fully compliant with applicable U.S. state laws and regulations.

Brady Cobb, the CEO of SOL Global, says the timing of the proposed change of business is strategic, stating: “One of the innate strengths of SOL Global’s management is knowing when to enter a market, as is evidenced with our early success in Canada and Florida. We have planned this transition and the market entrance of our MSO to coincide with the rapid growth of the legal U.S. cannabis marketplace amid a presumptive tail wind from federal policy reform initiatives related to cannabis, a process I’ve been deeply involved with. We believe that the timing of our MSO’s entrance to the market will position us well to capture that growth.”

Tantamount to the proposed change of business is the proposed change of the Company’s name from SOL Global Investments Corp. to Bluma Wellness Inc. (“Bluma Wellness” or “Bluma“). “Bluma” is an ancient Hebrew word which means to flower, bloom or blossom. The Company selected this name based on a key principle of the business: to ensure that our patients and consumers utilize our plant-based products to enhance their daily lives, namely to bloom and thrive.

Mr. Cobb says that the new name was chosen to be synergistic with the Company’s new direction, stating that “We chose the name Bluma Wellness, as an appropriate way to honor the true intent of each seed that we cultivate, harvest, and deliver as a product to ensure that every single one of our customers has a consistent and enriching experience that allows them to flourish.” He added: “We also look forward to bringing investors a new kind of MSO, one that is focused on profitability in the short term through operational and logistical efficiencies and a keen eye on the bottom line.”

As part of the Company’s initiative in shifting their focus of business to the vertically integrated expansion of its MSO operations, the Company plans to complete the previously-announced acquisitions of the proposed assets of the MSO (“MSO Assets“) which include the licensed dispensaries operated by MCP Wellness in Michigan as announced on April 24, 2019, our California acquisitions which include the famed Humboldt, California-based cultivator “Northern Emeralds” and the California-based dispensary chain “One Plant USA” as were announced on May 16, 2019, in addition to SOL Global’s existing vertically integrated license in Florida, 3 Boys Farm. The MSO’s resulting products will be powered by Northern Emeralds’ genetics and innovative data-driven cultivation and processing techniques. The anchor will be the brands and products that SOL Global has invested in, which will be strategically deployed in the MSO’s dispensaries including One Plant’s robust retail arm across the states of FloridaMichigan and California (subject to the receipt of all required governmental approvals).

It is expected that the MSO will bridge the gap between traditional THC products and mainstay CPG products.  All MSO Assets transactions are expected to close in October 2019, subject to all applicable conditions precedent being satisfied or waived including the receipt of all required governmental approvals.

Completion of the change of business and corporate name change are subject to certain conditions, including requisite shareholder approval and the approval of the Canadian Securities Exchange.

Additional Corporate Updates

Independent Valuation of Existing Investments:
SOL Global has decided on a valuation firm to determine a fair market valuation of SOL Global’s present assets. The Company has engaged Duff & Phelps Canada Limited, a highly acclaimed internationally-recognized valuation firm that has no prior relationship to SOL Global, its board, or any of its directors. Their independent valuation will begin immediately.

Executive Changes:
As part of the Company’s transition to Bluma Wellness and the operation of its MSO Assets, shifts in the Company’s management are needed to effectively and efficiently operate the MSO Assets. Specifically, the Company is pleased to make the following appointments:

Adam Wilks, a proven retail leader, has been appointed to Chief Operating Officer, effective immediately. Adam joins SOL Global with over 10 years of experience as Director of Operations of well known consumer retail brands like Yogen Fruz, Pinkberry, Cold Stone Creamery, and more. He last served as Chief Operating Officer to One Plant (Three Habitat Consulting) and the chain of dispensaries. As a Co-Founder of Buy N Bulk, he was actively involved in business development from 2013 –2016 and with that brings in-depth operational experience from the beginning of launch phase through to generating revenues. Adam is also on the board of one of California’s leading cannabis companies Old Pal and the board of Sacred CBD.

Additionally, Micheal Bondurant, an early leader in the Florida cannabis market, has been appointed to Chief Strategy Officer, effective immediately. As Director and Chief Operating Officer for 3 Boys Farm, LLC, an original Florida Medical Marijuana Licensee, Michael brings with him a wealth of experience in the logistics of implementing large scale grow operations. As a former Director at Sato Global Solutions, Michael provided consultative services for supply chain, inventory management, transportation, packaging, postal, information technology, procurement and retail. His additional focused attention to direct and channel partners, hardware/software platforms, and using active/passive RFID that are all specific to the retail industry will ensure streamlined integration throughout our retail operations. Michael’s nearly 20 years in senior banking and finance where he was involved in real estate financing, closely held businesses and money management throughout the eastern United States will be a valuable asset as we continue to scale. We are also proud to be welcoming him on as a veteran of the Armed Services  having served in the United States Coast Guard from 1988 -1993.

“We couldn’t be more excited to welcome Adam and Michael onto the team as we approach the official launch of our MSO,” said Brady Cobb, SOL Global’s CEO. “They are joining SOL Global at an exciting time and their retail, operational and logistical qualifications and insights will enhance value for all of SOL Global’s shareholders as we continue to execute on our strategy.”

Fiscal 2019 Results And Corporate Updates Conference Call
Brady Cobb, Chief Executive Officer, will host the SOL Global Fiscal 2019 Results Conference call starting at 4:00 p.m. Eastern Time on August 8, 2019. A question and answer session will immediately follow an initial presentation on SOL Global’s fiscal 2019 financial results and a corporate update. Additional participants from SOL Global will include Andy DeFrancesco, Chief Investment Officer and Chairman, Peter Liabotis, Chief Financial Officer and Paul Norman, Chief Executive Officer of SOL Global portfolio company HeavenlyRx.

 

SOURCE SOL Global Investments Corp.

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Medicine Man Technologies to Present at Benzinga Cannabis Capital Conference

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Photo source: uchealth.org

On the first anniversary of Canadian cannabis legalization, “Legalization 2.0” or “Cannabis 2.0” will allow popular cannabis derivatives like edibles, infused beverages, and vapes to legally be bought and sold nationwide. Demand for these products is incredibly high, and most analysts believe that cannabis derivatives will allow companies to deliver on ambitious revenue projections for the still-growing pot industry. Because this market is so important, companies that are prepared to capitalize on cannabis-derived consumables—like BevCanna Enterprises Inc. (CSE:BEV) (OTCPK:BVNNF), MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF), Cronos Group (TSX:CRON) (NASDAQ:CRON), Valens GroWorks (TSXV:VGW) (OTCQX:VGWCF)and IAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF)—are likely to ride the new wave of legalization and become the major industry players of tomorrow.

According to a comprehensive report from Deloitte called Nurturing New Growth: Canada Gets Ready for Cannabis 2.0, the Canadian market for edibles and alternative cannabis products will be worth $2.7 billion annually. $1.6 billion of that will be from edibles alone, and $529 million will be from beverages.

BevCanna is Best Positioned to Deliver Cannabis Beverages

BevCanna Enterprises Inc. (CSE:BEV) (OTCPK:BVNNF) understands better than perhaps any other company what kind of opportunity “legalization 2.0” provides for the cannabis industry. With its goal to become the global leader in cannabis-infused drinks, BevCanna has done an exceptionally good job of preparing itself for the new consumables market.

The last few months have seen a bevvy of activity for BevCanna. The company recently completed independent lab testing on its proprietary powder ingredient, Deeper Green, which allows for a full range of cannabinoid inputs, including THC, CBD, full-spectrum extracts and hemp-based CBD. The company also has an exclusive supply agreement with Nextleaf Solutions to employ its water-soluble cannabinoids for development and manufacturing, as well as a research license allowing BevCanna to look into the stability and homogeneity of water-soluble cannabinoid infusions in water-based beverages.

All this means that BevCanna has the technology and the permits in place to deliver cannabis drinks that are both high-quality and reliable. Accomplishing just one of these tasks is a monumental achievement, but having both in place in time for “legalization 2.0” puts the company in an industry-leading position.

BevCanna Enterprises Inc. (BEV-BVNNF)‘s two announced products lines, Anarchist Mountain Beverages and Grüv Beverages provide the company with brands that are broadly appealing for consumers interested in cannabis drinks. Anarchist Mountain is a line of THC-dominant sparkling spring water beverages with botanical flavor profiles inspired by the Pacific Northwest. Grüv is a wide range of easy-drinking cannabis-infused iced tea drinks with a balanced CBD and THC profile. Additionally, BevCanna is in “the final development stage for a third product line that will be the catalyst for the launch of the company’s water-soluble powder beverage line in California,” according to its corporate update.

At the beginning of October, the company entered into a definitive agreement with Higharchy Ventures to manufacture and launch a portfolio of cannabis-infused beverage brands for the Canadian market. The brands will be distributed throughout Canada via Higharchy’s retail cannabis network, and as part of the rollout, BevCanna plans to establish a retail education and training program. This program will focus on educating store staff on the infused beverage category and responsible consumption.

Also, in its recent corporate updateBevCanna Enterprises Inc. (CSE:BEV) (OTC:BVNNF) laid out its objects for the next six months, which mostly center on forming relationships with LPs looking to enter the infused products market in Canada, as well as forming strategic relationships with companies and brands that offer complimentary products.

Already, 11% of Canadians consume cannabis products like edibles and infused beverages, and according to the Deloitte report, another 13% are expected to start buying them when they become legal. With nearly one in four citizens in Canada currently or likely to consume cannabis edibles and alternative products, Deloitte says that “legalizing these products should clearly create valuable new growth opportunities for Canada’s cannabis sector.”

Other Companies That Can Deliver Products to a Hungry Market

BevCanna Enterprises Inc. (BEV-BVNNF) won’t be the only company to benefit from “Legalization 2.0.” Many of its contemporaries are working hard to establish themselves in the newly legal markets.

In preparing for the new legislation governing cannabis derivatives, MediPharm Labs Corp. (TSX:LABS) (OTCQX:MEDIF) VP of investor relations & communications Laura Lepore says that her company is building “the largest vape pen platform in all of Canada.” A big part of that is the company’s white label agreement with Ace Valley, which in signed in June, to launch a premium line of approximately 2 million Ace Valley-branded cannabis extract-based vape pens to Canadian consumers.

MediPharms has also signed a manufacturing agreement with Cronos Group (TSX:CRON) (NASDAQ:CRON), which will see the company produce high-quality cannabis concentrate filled vapes for Cronos Group’s COVE brand. Vape pens have been called the key to Cronos Group’s success, and its Cronos Device Labs in Israel—which is focused on developing vape products for cannabis applications—could just be the driving force to make Cronos a leader in the vape pen category.

Not to be outdone, Valens GroWorks (TSXV:VGW) (OTCQX:VGWCF) is making sure it remains the go-to cannabis extraction company as legalization 2.0 impacts the industry. Valens already lists major market players such as Canopy Growth, HEXO, and The Green Organic Dutchman among its clientele, and to make sure that it can meet the demand for cannabis extracts once edibles can be produced and sold, it has increased its annual extraction capacity to 425,000 kgs of dried cannabis and hemp biomass.

Like MediPharm and BevCanna Enterprises Inc. (BEV-BVNNF)Valens also entered a white-label contract that will see it produce a minimum of 2.5 million THC and CBD infused beverages over five years for Iconic Brewing.

While those companies prepare to capture the burgeoning cannabis consumables market in CanadaIAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF) hopes to take a similar approach in the US market wherever it can. According to its Q2 financial earnings report, the company can sell extracts such as vape cartridges, edibles, waxes, and tinctures in the state of ArizonaIAnthus also increased its production by 30 percent in Q2 over the previous quarter and is planning to use this added capacity to fuel rollouts in New YorkNew Jersey, and Massachusetts.

The Growing Market for Cannabis Consumables and Extracts

survey conducted by Ernst & Young found that once cannabis products like gummies and face creams become available, they will attract as many as 3 million new Canadian consumers to the market.

Outside of Canada, the market for cannabis consumables is growing exponentially. According to Zion Research, the global market for cannabis beverages is going to grow in value from 1.6 billion to $4.5 billion in 2025, at a CAGR of approximately 15%. Meanwhile, Arcview projects that the edibles market could be worth over $4.1 billion in just Canada and the United States by 2022.

BevCanna Enterprises Inc. (BEV-BVNNF) has made sure it can capitalize on the markets created by “Legalization 2.0.” It will do this through its multiple agreements to test, manufacture, and supply pot beverages, both for its own brands and for clients.

It will be joined in the new markets by MediPharm Labs Corp. and its partner Cronos Group, as well as Valens GroWorks 

 

SOURCE Potstocknews.com

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Sunniva Announces Amendment Of Performance Warrants

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Sunniva Inc. (“Sunniva” or the “Company”) (CSE:SNN) (OTCQB:SNNVF), a North American provider of cannabis products and services, announces that it is amending the terms of the 718,249 performance warrants (the “Performance Warrants”) issued in conjunction with the acquisition of LTYR Logistics, LLC (“LTYR”) on December 31, 2018. The Performance Warrants are convertible into 718,249 common shares of the Company (“Performance Shares”) upon the satisfaction of certain operational milestones (the “Milestones”).

The Performance Warrants will be amended by replacing the original Milestone of opening a distribution business at the Company’s facility in Long Beach, California with the opening of a distribution business at the Company’s facility in Coachella, California. Upon amendment of the Performance Warrants, the Milestones will be satisfied and the Company will convert the Performance Warrants into Performance Shares.

The amendment of the 239,491 Performance Warrants held by Mr. Kevin Wilkerson, President of the Company and the former CEO of LTYR, is considered to be a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the subject matter of, nor the fair market value of the consideration from, the amendment of the Performance Warrants held by Mr. Wilkerson, exceeds 25% of the Company’s market capitalization.

For more information please visit: www.sunniva.com.

To be added to the Sunniva email distribution list please register at www.sunniva.com/email-alerts.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

 

SOURCE Sunniva Inc.

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Employers still face cannabis-related challenges, a year after legalization

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Photo source: crainsdetroit.com

 

Employers are still facing challenges related to cannabis in the workplace a year into legalization, finds a new survey by the Canadian Federation of Independent Business (CFIB). In fact, nearly six in 10 business owners rank their provincial government’s efforts to educate them as poor or very poor.

“Cannabis legalization posed some major new challenges for employers, especially in industries where the safety of employees or customers is a concern. We warned governments in the lead-up to legalization that their education efforts were severely lacking. A year in, and as new products become available, it doesn’t look like it’s gotten much better,” said CFIB president Dan Kelly. “We’re finding that provincial governments still have not done a great job of informing employers of their responsibilities, relevant rules and regulations, as well as the resources available to them.”

Only 8 per cent of surveyed businesses had experienced a cannabis-related incident in the workplace since October 17, 2018, but that number rises to 22 per cent for businesses with 100 to 499 employees, according to the preliminary data. Businesses in hospitality were most likely to report having had an incident (16 per cent).

The survey also found that:

  • Only a quarter of businesses list their provincial government as a primary source of information related to cannabis in the workplace.
  • 32 per cent listed CFIB as a primary source of information, while 48 per cent did not have a primary source of information.
  • 59 per cent of those who had a primary source of information felt better equipped to deal with cannabis in the workplace.
  • 34 per cent of businesses do not have a drug and alcohol policy in place.

“Many small businesses don’t have an HR department or legal experts on staff so they need help and resources, but too often, their needs are treated as an afterthought when governments rush to introduce major new legislation,” added Kelly. “I advise any business owners that are looking for information to visit cfib.ca/cannabis for tools and resources, including a free workplace drug and alcohol policy template.”

 

SOURCE Canadian Federation of Independent Business

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