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International Cannabrands CEO Publishes 2020 Outlook Letter to Shareholders

Vlad Poptamas




International Cannabrands Inc. (CSE:INCB) (the “Company“) CEO Steve Gormley publishes an open letter to Shareholders on the year ahead for INCB.

Dear Shareholders,

When I wrote to you on September 26th*, I outlined the ambitious turnaround plan we were undertaking at the corporate level, and announced that we would be allocating significant resources towards a CBD initiative. As we begin the new year and continue to execute against this plan, I would like to take advantage of this opportune moment to update Shareholders on the year ahead.

2020 Outlook 

The cannabis industry is measured on fundamentals. 2019 was a tumultuous year that brought a critical reality check to the cannabis industry at large.  We are seeing the maturing of a relatively nascent industry, with stock valuations being assessed on solid fundamentals. The year demonstrated that not all business models are the same, and underlined the critical importance for a company to demonstrate strategic advantages, a strong balance sheet, and a clear path to profitability.

2020 is forecasted to bring forth a clearer, more efficient cannabis market.  Based on discussions we’ve had with those in financial markets, specifically in cannabis, we believe the sector will turn around by Q3 as companies begin to report better financial results due to rightsizing their capacity and operations.  It is our belief that cannabis companies to watch in 2020 will be the ones making early investments into a consumer driven business.

We continue to see quite a bit of M&A activity and overall consolidation, and expect this to perpetuate throughout the year as many companies have exhausted their funding and are unable to raise cost efficient capital. After more than a year of declining share prices, it appears to me that the market has bottomed out. At the same time, I see a return of cannabis investors who were sitting on the sidelines during last year’s downturn now looking to take advantage of undervalued assets. It is important to stress that investors should move into the space with the understanding that short term investments are no longer the way to go, and to regard these as long positions.

INCB Updates

In my September letter, I acknowledged the market’s demand for a course correction. Since then, we’ve taken steps to rightsize the company’s portfolio and streamline operations, and Management has made significant progress over the past few months.

Since Sept 2019, INCB has raised approximately $1 million (CDN) through private placement. All funds have come from strategic investors and at a premium to the stock price. This is unique and especially so when the sector is facing negative investor sentiment. I believe this speaks to the fact that our new investors appreciate the quality of our turn-around, growth plan, and management team. Evidence of this thinking is exemplified by the fact that Bob Yosaitis, a highly successful entrepreneur from both the cannabis and non-cannabis sectors, also joined our Board of Directors.

The company has cancelled its brokered debt financing round as well as equity credit line financing arrangements, which do not serve us at this time. We would not be able to raise money at a premium to our trading price nor would we be able to attract the type of strategic investors that have been stepping up to support INCB.

CBD represents strong growth potential for INCB, with the market’s high acceptance of cannabidiol as an important component of many wellness trends.  There are opportunities in the CBD market to create strong, relevant consumer brands that offer non-pharma solutions for today’s active consumer.  INCB has taken a traditional consumer packaged goods approach against this CBD mandate — informing everything from our product development through distribution.  I believe INCB’s unique approach in mapping to consumer trends with effective products in niche categories present the Company with opportunities to claim market leadership.

  • Baseline will be the first in-house developed CBD line to be launched.  The offering has a benefit driven brand architecture with custom CBD + adaptogen formulations designed to support the user to get the most out of their day and night. Baseline is scheduled to launch in Q1 2020.
  • Other CBD brand initiatives planned include a collaboration with renowned Beverly Hills plastic surgeon and INCB’s Chief Medical Officer, Dr. David Rosenberg. This branded line will be developed specifically for outpatient cosmetic procedures.

As disclosed, INCB is pursuing its options regarding its investment in La Vida Verde to effect a repricing of the transaction and pursue value for its shareholders.

2020 Objectives 

INCB continues to pursue the development and acquisition of cannabis and CBD consumer brands. A secondary emphasis is on acquiring interests in ancillary businesses that ensure product quality, supply continuity, and development agility while providing better EBITDA margins for our brands.

To further this mandate, our 2020 objectives will include:

  • Build strategic partnerships that have the potential to expand our vertical integration in the supply chain from cultivation through retail.
  • Integrate a range of assets sourced through our network’s portfolios, potentially to include cultivation, licenses, real estate and distribution/retail.
  • To fund new brand initiatives and strategically evaluate acquisitions of high value assets across consumer brands and retail sectors.

There is much to anticipate in 2020 with regulatory action and industry consolidation, and it will certainly be a defining year for the cannabis sector and for INCB.  There is a tremendous amount of work ahead of all of us, as we streamline legacy operations and diversify the company portfolio into new sectors.  It is a daunting challenge, without a doubt, but we believe that working with the collective horsepower of our team and partners, we can make 2020 a pivotal year for the company’s expanding footprint and position in the market.

As always, thank you for your loyalty and support.

Steve Gormley


SOURCE International Cannabrands Inc.

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Village Farms Opts to Receive $5.94 Million Cash Refund from Pure Sunfarms

Vlad Poptamas



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Village Farms International, Inc. (“Village Farms“) (TSX: VFF; Nasdaq: VFF) today announced that it has opted to receive a $5.94 million cash refund from Pure Sunfarms Corp. (“Pure Sunfarms“) relating to an additional equity contribution that Village Farms made to Pure Sunfarms on November 19, 2019 (the “VF Additional Equity Contribution“).

As previously disclosed by Emerald Health Therapeutics, Inc. (“Emerald“), it has been disputing Village Farms’ ability to make the VF Additional Equity Contribution of $5.94 million, as well as the cancellation of 5,940,000 common shares of Pure Sunfarms placed in escrow pending payment by Emerald of its related $5.94 million equity contribution, following its failure to make its required equity contribution to Pure Sunfarms on November 1, 2019. In an effort to narrow the issues in dispute and accelerate the resolution of this shareholder dispute, Village Farms decided to unwind the VF Additional Equity Contribution, which has now been completed, with Pure Sunfarms providing Village Farms with the $5.94 million cash refund. The $5.94 million cash refund to Village Farms also eliminates the costs and delays involved in obtaining an independent appraisal of Pure Sunfarms that resulted from the VF Additional Equity Contribution.

Village Farms continues to seek the cancellation of 5,940,000 common shares of Pure Sunfarms that were placed in escrow pending payment by Emerald of its related equity contribution (the “Emerald Share Cancellation“), which was not made as required. It is Village Farms’ position that the Emerald Share Cancellation is expressly provided for in the applicable legal agreements.

“Due to the arbitration process related to the Emerald Share Cancellation taking significantly longer than originally anticipated, and with the resulting number of incremental shares for our $5.94 million equity contribution unknown, we decided to reduce the number of items in dispute in an effort to bring the matter to resolution sooner for Village Farms and its shareholders,” said Michael DeGiglio, CEO, Village Farms. “In addition, as a result of the $5.94 million cash refund to Village Farms, we anticipate that Pure Sunfarms may call for additional equity contributions by each of Village Farms and Emerald.”

If Village Farms is successful in the arbitration and Emerald’s escrowed shares are cancelled, Village Farms would own 53.5% of Pure Sunfarms and Emerald would own 46.5% effective as of November 19, 2019. Village Farms expects a decision from the arbitration panel during the second half of 2020.

Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements may relate to Village Farms’ future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected production, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving Village Farms and Pure Sunfarms. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for Village Farms, Pure Sunfarms, the greenhouse vegetable industry or the cannabis and hemp industries are forward-looking statements. In some cases, forward-looking information can be identified by such terms as “outlook”, “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue”, “likely”, “schedule”, “objectives”, or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts.

Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results or events will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond Village Farms’ control, that may cause Village Farms’ or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in Village Farms’ filings with U.S. and Canadian securities regulators, including as detailed in Village Farms’ annual information form and management’s discussion and analysis for the year-ended December 31, 2018 and for the three and nine-month periods ended September 30, 2019.

When relying on forward-looking statements to make decisions, Village Farms cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, events, performance, achievements, prospects and opportunities. The forward-looking statements made in this press release only relate to events or information as of the date on which the statements are made in this press release. Except as required by law, Village Farms undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.


SOURCE Village Farms International, Inc.

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Canada House Wellness Group Announces Results of Annual General Meeting and Issuance of Stock Options

Vlad Poptamas



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Canada House Wellness Group Inc. (CSE: CHV) (“Canada House” or the “Company“) is pleased to announce the results of the company’s Annual General Meeting of shareholders that was held in Fredericton, New Brunswick on Thursday, December 19, 2019, where two business items were presented and approved by the shareholders in attendance.

The Directors of the Company that were nominated at the meeting – Norman BettsChris Churchill-SmithShawn GrahamGaetan Lussier, and Dennis Moir – were elected to hold office until the next Annual General Meeting of Shareholders, or until their successors are elected or appointed.

In addition, Ernst & Young LLP were appointed as auditors of the Company for the following year and the Directors were authorized to fix their remuneration.

The business summary presented at the Annual General Meeting is available on the Investor Centre section of Canada House’s website at

The Company is also pleased to announce the immediate granting of 500,000 stock options to senior employees and advisors at an exercise price of $0.05 and with a term of 5-years. The grant was made in accordance with the Company’s stock option plan and the policies of the Canadian Securities Exchange.


SOURCE Canada House Wellness Group Inc.

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Canopy Growth Revises Beverage Launch Timeline

Vlad Poptamas




Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED), (NYSE: CGC) submitted its final documentation for its beverage facility to Health Canada in late June 2019 and subsequently received the licence in late November 2019. In the seven weeks since receiving the licence, the Company has made meaningful progress towards scaling the production process for its cannabis beverages from lab scale to commercial scale.

Management remains very confident in the underlying beverage science and in its ability to scale production and deliver high quality, differentiated cannabis beverages to the market. However, the scaling process is not complete, and the Company is extending its to-market date while the internal teams complete the final steps.

“Canopy has had seven weeks to work with THC in the brand new beverage facility to scale processes and IP it has developed in the R&D environment,” said David Klein, CEO, Canopy Growth. “In order to deliver products that meet our customer’s high standards we are electing to revise the launch date while we work through the final details.”

Cannabis beverages have disruptive power and in time, may introduce new consumers to the cannabis category. Canopy does not believe this delay will have a material impact on its FY20 revenue.

The Company intends to provide an update with the release of its Q3 FY20 financial results.

Here’s to Future (Cannabis Category) Growth.


SOURCE Canopy Growth Corporation

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