Weekly Wrapup: Beyond the headlines for the week ended June 21, 2019

More money, more money, more money! This week saw more mega moves in the cannabis industry, including a new deal for technology that could be a game-changer in the industry.

Here’s a recap of the top newsmakers and deals that caught our eyes here at Investor Intelligence this week.

On our radar: The next cannabinoid disruptor?

Surterra Wellness, an Atlanta-based cannabis company with operations in Florida and Texas, announced this week that it will partner with Hungary’s Intrexon Corp. in a $100 million licensing deal aimed at biosynthetic cannabinoid production.

This is the latest in a string of investment activity focused on biosynthesis by cannabis firms, including Cronos Group, Organigram, InMed Pharmaceuticals and Teetwinot Life Sciences.

Biosynthesis, or cellular agriculture, has been used for decades to produce specific compounds in a lab from microorganisms such as yeast.

At our recent MJBizConNEXT conference in New Orleans, we heard from experts who told us this process can produce cannabinoids, including THC and CBD, at a purity level greater than 99% – and in less time and at a lower cost than plant-based production.

If commercialized on a large scale, this technology could easily disrupt the industry. To be sure, we’re digging deeper into this potential and the investment opportunities sprouting up. As we have more answers, you will, too.

Curated with you in mind: Other top stories worth your time

  • Investments in the infused products and extracts sector have nearly tripled in 2019, making it one of the fastest-growing areas for raising cannabis capital. The sector has raised $390.29 million through the week ended June 14, most of that ($322.28 million) through equity deals.
  • Shareholders at both Canopy Growth (NYSE: CGC; TSX: WEED) and Acreage Holdings (CSE: ACRG.U) voted in favor of Canopy’s planned $3.4 billion acquisition of Acreage in a deal involving two of the biggest cannabis companies in North America.
  • Ontario-based Canopy Growth reported net revenue of 94.1 million Canadian dollars ($71.5 million) for the fiscal fourth quarter ended March 31, up from CA$22.8 million in the same period a year ago. Net loss for the quarter was CA$323.4 million compared with CA$54.4 million a year ago.

As always, please feel free to email me directly at lisabk@mjbizdaily.com with your thoughts on what you value most from your subscription and what more you would like to see. Looking forward to hearing from you!

With that, enjoy the weekend!

Sincerely,

Lisa Bernard-Kuhn

Editor, Investor Intelligence