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Cannabis Companies are Hot, but This Arbitrage Deal is Even Hotter

INDP, CNTTQ, C.THC, T.OGI

FN Media Group Presents Safehaven.com Market Commentary

PR Newswire

LONDON, October 3, 2018 /PRNewswire/ --

In a matter of weeks, recreational cannabis will be legal in Canada, and pot stocks are on a rampage that's won over even the grizzliest of bears and the most skeptical short-sellers. Mentioned in today's commentary includes: Intec Pharma Ltd (NASDAQ:NTEC), CannTrust Holdings Inc. (OTC:CNTTF), Emblem Corp. (OTC:EMMBF), THC Biomed International (OTC:THCBF), OrganiGram Holdings. (OTC:OGRMF).

Three deals are creating a beautiful set-up for the cannabis market. Two of them will bring cannabis into the mainstream. The third involves one of the largest cannabis companies and a little-known incubator that's seeing a big payday.

The third-largest cannabis company in this equation is Aphria, and the little-known incubator is Scythian Biosciences (SCYB,SCCYF)

Aphria gave Scythian Biosciences 15,678,310 shares of its stock to buy Scythian's incubated cannabis assets. For Scythian, the timing could not have been better. When the deal was agreed upon, those Aphria shares were at CAD $12, worth $193 million.

By the time the deal was closed last week-Aphria shares had spiked to CAD $20, making Scythian's position worth approx. CAD $313 million. And it's Scythian Biosciences' third win-win deal in a row.

Here are 5 reasons to keep a close eye on Scythian Biosciences (SCYB,SCCYF):

#1 One of the Biggest Cannabis Transactions This Year  

Aphria gave Scythian Biosciences 15.7 million shares of stock to incubate cannabis assets. That's a 6.3 percent stake in Aphria, arguably the strongest cannabis producer in the world-and it also makes Scythian the largest single Aphria shareholder.

Right now, the market is paying attention to Aphria because it was a good deal for the third-largest cannabis producer, too. They got cannabis assets in three countries in Latin America for CAD $193 million. When Canopy Growth did a similar deal, it got only one country for $290 million. But while the market was busy looking at Aphria, Scythian-a very smart and sophisticated incubator of cannabis assets-is stuffing its war chest.

#2 The Next Big Event Goes Down in Florida  

Nailing the incubator move with Aphria for a huge return, Scythian (SCYB,SCCYF) announced it is now shifting focus to the U.S.

The next big thing will come later this month, when it acquires an exclusive medical cannabis license in Florida. That's imminent-and the pipeline has lots more potential.

The U.S. legal marijuana market size was estimated at over $7 billion in 2016. And it's expected to grow at a CAGR of 24.9 percent from 2017 to 2025.

North Americans spent an estimated $53 billion on marijuana (most of it illegal) in 2016, according to ArcView Market Research. When the U.S. side of that market opens up, Scythian (SCYB, SCCYF) plans to be there too.

#3 The Second Cannabis Ship Is Sailing, And It's Bigger Than the First  

Already, global legal cannabis sales were expected to reach nearly $146 billion by 2025. And that projection was before Canada voted in June to legalize recreational pot.

The world's investors will focus their attention on this long-maligned sector. And they've already given us a mega-deal glimpse with major alcohol producers scrambling to get on board.

In less than 10 years, the legal cannabis worldwide market could go from essentially zero to $146 billion in sales. Cannabis is one of those "special situation" markets that could have an unusually high upside for those who get in the right deal. That's why the makers of Johnny Walker, Smirnoff and Corona want in so badly. This blows beer away.

#4 Spot On Incubator In The Hottest New Sector  

Scythian Biosciences (SCYB,SCCYF) is a credible international incubator. It's also the world's first global cannabis incubator, and they've already made some game-changing deals.

How do incubators make money? They take equity stakes in startups and build them up until they get big enough and successful enough to sell. It's all about building it up fast, for high-profit sale. It's not about going public. Get in, build up, get out, get paid. It's the fast-track cash cow-and in the cannabis sector, it's going at breakneck speed.

The playbook is simple: Scythian Biosciences identifies, acquires and flips key businesses - looking to net a huge profit along the way.

#5 A Killer Team in A $53B/Year Market  

When there's someone like Scythian Biosciences' CEO Rob Reid making ultra-rewarding deals, it's enough to get the market excited. Reid is already a leading business figure in Europe's legal cannabis industry.

Chief Medical Officer Michael Barnes is a leading world authority on neurological rehabilitation and founder and president of the World Federation of Neurological Rehabilitation. He was the first doctor in the UK to be granted the ability to issue a medical prescription for cannabis to a child with an ailment.

And most recently, Andrew De Francesco has been added to the Scythian Biosciences board. He's a 26-year veteran of capital markets and has led a string of companies to multi-million-dollar sales. As founder and chairman, he took Dalradian Resources through its IPO in 2010 and it was recently sold for $500 million. He also injected $6.2 million into Aphria Inc. (TSE:APH), a company which is now reaching toward worth of a cool $5 billion.


So, there's a big cannabis player, Aphria, storming the global cannabis scene to investor delight. And then, if investors follow this trail all the way to the incubator, they've got Scythian Biosciences (SCYB,SCCYF) -the world's first global cannabis incubator that has a stellar deal track record right out of the gate.

Other cannabis companies looking to make an impact on the market:

Intec Pharma Ltd (NASDAQ:NTEC): Intec is an Israeli based pharmaceutical company that earlier this year announced an early-stage study testing its painkiller made of natural CBD and THC extracts. This kind of marijuana-based painkiller will become increasingly popular as full-scale legalization takes place.

In August, Intec reported its overwhelmingly positive second-quarter earnings report, with Jeffery A. Meckler, Chief Executive Officer stating, "We made significant advances that position us to achieve a number of important clinical, commercial and corporate milestones throughout the balance of the year and beyond."

CannTrust Holdings Inc. (OTCMKTS:CNTTF) is a cannabis company focusing on the numerous medical benefits of the plant. They offer a number of cannabis-derived products, from CBD and THC pills to actual plant matter.

In September, the company made history with the first approved shipment of a cannabis product to Denmark. The company shipped cannabis oils overseas in a breakthrough deal with its Danish joint venture partner, STENOCARE.

"Thanks to CannTrust's consistent quality and standardized products, we are the first in Denmark to have cannabis oil products approved for the market," noted Thomas S. Schnegelsberg, CEO of STENOCARE.

Emblem Corp. (OTCMKTS:EMMBF) is a leading licensed marijuana producer in Canada. With a number of cannabis-based products, Emblem works closely with the medical community to ensure both patients and physicians have the information necessary to make decisions regarding treatments involving marijuana.

Recently, Emblem completed testing on a new oral extended release product with partner Canntab Therapeutics. With the successful tests, the companies announced that they will be moving forward into clinical trials.

THC Biomed International (OTCMKTS:THCBF) operates as a licensed producer under Canada's Marihuana for Medical Purposes Regulations. It is also engaged in the research & development of the products and services to medical marijuana.

THC Biomed's recently announced a new THC-based beverage, aiming to appeal to a broader range of consumers. John Miller CEO explained, "THC has conducted extensive research on cannabis edibles and beverages and I have found our product to be exclusive in its category."

OrganiGram Holdings. (OTCMKTS:OGRMF): Organigram Inc. is a licensed medical marijuana producer in Canada, while it managed to maintain its production license this year, the company saw its stock price fall somewhat Year-To-Date, but we see strong upside for this stock as the changing Canadian cannabis legislation could give a massive boost to the market. The company specializes in both organic and minerally grown cannabis, and is sure to satisfy the customers' needs.

Recently, OrganiGram entered into an agreement with Canopy Growth which includes distribution and retail services in Newfoundland and Labrador.

By. Charles Kennedy

**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**

Notice for Forward-Looking Information

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such forward-looking information includes that investor interest in the cannabis sector will continue to grow to October 17, 2018 and beyond; that cannabis use and sales will grow as currently predicted; Scythian Biosciences' intended acquisition of various foreign companies and expansion into the US market; that the Aphria stock owned by Scythian Biosciences will retain its current value and that Scythian Biosciences can realize a profit on its sale; Scythian Biosciences' plans to incubate projects in various locations throughout the world; that it could be granted licensable patents; that Scythian Biosciences will get an exclusive cannabis distribution license in Florida; and that it will be able to carry out its business plans.

Readers are cautioned to not place undue reliance on forward-looking information. Forward looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from those contemplated in the forward-looking information, and even if such actual results or events are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on Scythian Biosciences. Such risks and uncertainties include, among other things: that a regulatory approval that may be required for the intended acquisitions and subsequent sales are not obtained or are obtained subject to conditions that are not anticipated; growing competition for intended acquisitions in the cannabis industry; potential future competition in the markets Scythian Biosciences operates for sales; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may not permit legal cannabis sales or growth or that favorable laws in place may change; Scythian Biosciences not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; Scythian Biosciences' technology may not achieve the expected results and its accomplishments may be limited; Florida may not grant to Scythian Biosciences an exclusive cannabis medical license; even if it is granted the Florida license, Scythian Biosciences' may not be able to profitably use it; Scythian Biosciences' business plan also carries risk, including its ability to comply with all applicable governmental regulations in a highly regulated business; incubator risk investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal laws; and regulatory risks relating to Scythian Biosciences' business, financings and strategic acquisitions.

DISCLAIMERS

PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. Safehaven.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively "the Company") has been paid by the profiled company or a third party to disseminate this communication. In this case the Company has been paid by Scythian Biosciences seventy thousand US dollars for this article and certain banner ads. This compensation is a major conflict with our ability to be unbiased, more specifically:

This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. We have been compensated by Scythian Biosciences to conduct investor awareness advertising and marketing for Scythian Biosciences'. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the company. The third party, profiled company, or their affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.

We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public and non-public sources but is not researched or verified in any way whatsoever to ensure the information is correct.

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NOT AN INVESTMENT ADVISOR. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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RISK OF INVESTING. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities.

DISCLAIMER: Safehaven.com is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with Safehaven.com or any company mentioned herein. The commentary, views and opinions expressed in this release by Safehaven.com are solely those of Safehaven.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.

FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

Contact Information:
Media Contact:
FN Media Group LLC
e-mail: editor@financialnewsmedia.com
U.S. Phone: +1(954)345-0611


SOURCE Safehaven.com



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