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Buzz on the Bullboards: The Cannabis Deal of a Lifetime?

Stockhouse Editorial
3 Comments| April 29, 2021

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(Image via Aphria Inc.)

The fate of one of the biggest mergers in cannabis’ young history as a legal market will be decided tomorrow, when shareholders of Leamington ON-based licensed producer Aphria Inc. (TSX: APHA, Forum) vote on whether to accept the proposed merger with Nanaimo, BC-based licensed producer Tilray Inc. (NASDAQ: TLRY).

At a special meeting, APHA shareholders already voted 99.38% in favour of the transaction, though Tilray announced that its meeting had been pushed to April 30th to allow shareholders more time to vote.

Aphria shares have been riding this wave of anticipation and sit comfortably above $18 (CAD). Though this is far removed from its spike to $33 last seen in February, APHA shares had spent all of 2020 under $10, except for a couple weeks between November / December.

The arrangement was made under Ontario’s Business Corporations Act where Tilray would acquire all of the issued and outstanding Aphria shares. Aphria Shareholders will receive 0.8381 of a Tilray share for each Aphria Share held, while holders of Tilray Shares will continue to hold their Tilray Shares with no adjustment to their holdings.

Tilray, which has one of the largest retail investor bases in the cannabis sector, also announced it would amend its bylaws to allow a lower number of voters to meet quorum, moving its requirement down to one-third of all outstanding shares rather than a majority of shareholders.

This isn’t the only big story that Stockhouse’s Bullboarders have been talking about, let’s dive in and see what some other companies have been doing and how it has been impacting their share price.

While that deal may seem large, the world’s biggest cannabis producer, Canopy Growth Corp. (TSX: WEED, Forum) announced that Southern Glazer’s Wine & Spirits – “the world's pre-eminent distributor of beverage alcohol” – will serve as the distribution partner for its US portfolio of CBD-infused beverages. This partnership announcement follows the recent launch of Quatreau – Canopy's first line of CBD-infused beverages sold in the US market.

Canopy said that Southern Glazer's Wine & Spirits will distribute the non-intoxicating drinks in seven US states, with plans to expand into more regions over the coming months.

Julious Grant, Chief Commercial Officer for Canopy Growth, commented that through this groundbreaking partnership, the company will leverage Southern Glazer's established distribution network to bring its CBD beverage portfolio to retailers and consumers across the US market.

“The leadership team at Southern Glazer's shares our values, priorities, and future-forward view of the category. Together, we are committed to creating an immediate strategic route to market for Canopy's premium CBD beverages.”

Our Investor Pulse Poll this week looks at the top talked about news around the proposed Aphria / Tillray merger, do you have big expectations for where this will go? Let us know your thoughts by clicking the image below.

(Click image to vote.)

Last week’s poll was more of a demographic survey and in case you were wondering at the general level of experience among the audience around you, most have been in this game for awhile. Since we have a number of more novice investors checking in these days, we will continue to bring you content that can introduce you to new aspects and elements of the investing world.

A biopharmaceutical leader in cannabinoid-based drugs, Tetra Bio-Pharma Inc. (TSX-V: TBP, Forum) announced this week that it had shipped the investigational new drug QIXLEEF, to the US for the initiation of the REBORN1 study.

REBORN1 will investigate cannabis as an alternative to morphine sulfate immediate release in the management of breakthrough pain. QIXLEEF is a botanical drug product with a “fixed ratio” of THC and CBD and is inhaled through a vaporizer.

Tetra Bio-Pharma Inc. CEO and CRO Dr. Guy Chamberland said that since the authorization of the clinical trial by the FDA in late January 2021, Tetra has worked hard to prepare QIXLEEF for clinical testing to fight the opioid crisis.

“We are on track to initiate this Phase 2 proof-of-concept trial designed to demonstrate that QIXLEEF can provide pain relief faster than an immediate-release oral morphine.”

REBORN1 is a 10-week open-label randomized study to evaluate the effect of inhaled QIXLEEF compared to morphine sulfate immediate release (MSIR) to help manage the onset of pain relief of breakthrough cancer pain (BTcP).

Shareholders of Reconnaissance Energy Africa Ltd. (TSX-V: RECO, Forum) have been enjoying a rally in share price. The Canadian small-cap explorer updated investors on the first of its initial three well drilling program, the 6-2 well, within the newly discovered deep Kavango Sedimentary Basin, in the Kalahari Desert of northeastern Namibia and northwestern Botswana.

The junior, oil and gas company reported that the well was drilled successfully. The rig has been rigged down with drilling rig components, the drill pipe and auxiliary equipment moved 16 km (10 miles) north to the second drill site, 6-1. This second vertical well, anticipated to commence drilling by May 1st, 2021, is designed to evaluate the petroleum systems discovered in the first well (6-2) in an area of maximum thickness.

(Reconnaissance Energy Africa Ltd. stock chart – Feb 2021 to April 2021. Click to enlarge.)

Nevada Copper Corp. (TSX: NCU, Forum) just mined the first slope in the East South Alphabets zone at the underground mine at its Pumpkin Hollow project. The Alphabets zone is expected to carry copper equivalent grade of approximately 2.5%.
Silicon solutions company HPQ Silicon Resources Inc. (TSX-V: HPQ, Forum) released an update on recent milestones on process validation and optimization tests achieved by the Gen1 PUREVAP Nano Silicon Reactor (NSiR).

This is an innovative process (patent pending), which will permit the one step transformation of quartz (SiO2) into high purity silicon at reduced costs, energy input, and carbon footprint that will propagate its considerable renewable energy potential.
These ongoing tests are conducted by the technology provider, PyroGenesis Canada Inc. (TSX-V.PYR, Forum) a high-tech company that designs, develops, manufactures and commercializes plasma - based processes.

A busy high tech company in its own right, PyroGenesis Canada topped the Industrial Top 6 again this week, having just recently signed a binding letter of intent to acquire AirScience Technologies Inc. (AST) for $4.8 million.

AST is a Montréal-based company that designs and builds biogas upgrading systems and equipment for biodigesters and landfill gas applications. Biogas is a result of the decomposition process of organic, household, and agricultural waste.
This gas is captured and converted into renewable natural gas, or RNG, which is also called biomethane, a carbon neutral gas that can be used to replace conventional gas in pipelines.

PyroGenesis CEO and Chair P. Peter Pascali believes that this acquisition will benefit both PyroGenesis and AST.

“PyroGenesis believes that AST’s experience in biogas upgrading, combined with PyroGenesis’ engineering and multidisciplinary skills, as well as its proven record of meeting the exacting demands of multibillion dollar companies and the US military, positions the combination well to address the opportunities arising from this growing need to clean biogas.”

He added, that more precisely, PyroGenesis’ acquisition of AST will finally allow AST to realize its full potential by providing the skill set and assets which have been in need at AST, and the lack of which have been an impediment to their growth.

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Aviation heavyweight Bombardier Inc. (TSX: BBD, Forum) has appointed Ève Laurier as Vice President, Communications, Public Affairs and Marketing.

Reporting directly to Bombardier President and CEO Éric Martel, Ève will lead the company’s community engagement, employee, and customer outreach, and steward the brand journey both internally and externally.

He called Ève a proven leader with a creative, innovative mindset and team-oriented approach.

“Bombardier’s employees and customers are at the heart of our strategic vision—Ève’s insight, energy and enthusiasm will be a driving force in executing the next phase of our strategy and in achieving the full potential of our industry-leading business aviation franchise.”

Ève brings more than 20 years of experience in the fields of public relations, communications, corporate marketing, and branding. She most recently served as a General Manager at Edelman, a worldwide communications firm that partners with businesses and organizations to evolve, promote and protect their brands and reputations. Ève holds an Executive Master’s in Business Administration from McGill-HEC Montréal and a bachelor’s degree in Commerce and Marketing from Concordia University.

Still trading under a dollar, BB stock has been telling a good story this year, while still being a household name.

(Bombardier Inc. stock chart – November 2020 to April 2021. Click to enlarge.)

Canadian clean tech company Exro Technologies Inc. (TSX-V: EXRO, Forum) has entered into a supply agreement with Vicinity Motor Corp. (a leading supplier of advanced shuttle transportation vehicles for public and commercial use) to validate and deploy an optimized electric powertrain utilizing the Coil Driver technology for Vicinity's suite of electric buses, The optimized powertrain will bring enhanced electric buses with improved performance to the public transit system. Exro will supply the Coil Drive System technology and Vicinity will conduct operational validation through deployment of an optimized electric powertrain for VMC's suite of electric buses.

Next week we will dive back into the Bullboards and see where the small-cap markets are headed. PyroGenesis may be on top for now, but no king lasts forever, and an uncertain market demands constant attention from investors to stay up-to-date and ready. For previous editions of Buzz on the Bullboards: click here.

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FULL DISCLOSURE: PyroGenesis Canada Inc. is a client of Stockhouse Publishing.

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