Category Archives: General

Newmont and Goldcorp Successfully Create World’s Leading Gold Company

Goldcorp Inc. (NYSE: GG, TSX: G) (“Goldcorp”) and Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (“Newmont Goldcorp” or “the Company”) today announced the successful conclusion of the transaction combining Newmont Mining Corporation and Goldcorp to form the world’s leading gold business.

Newmont Goldcorp features an unmatched portfolio of assets, prospects and talent. This portfolio includes long-life operations and profitable expansion and exploration options in some of the world’s most favorable mining jurisdictions. Newmont Goldcorp will also offer investors the highest annual dividend and the largest Reserves and Resources per share among senior gold producers.

Newmont Goldcorp will continue trading on the New York Stock Exchange (NYSE) with the ticker ‘NEM’, and will begin trading on the Toronto Stock Exchange (TSX) with the ticker ‘NGT’. Goldcorp’s common shares are expected to be delisted from the NYSE before market open on April 18, 2019, and from the TSX after market close on April 22, 2019.

Newmont Goldcorp is expected to immediately:

  • Be accretive to Newmont’s Net Asset Value per share by 27 percent, and to the combined company’s 2020 cash flow per share by 34 percent; i
  • Begin delivering $365 million in expected annual pre-tax synergies, supply chain efficiencies and Full Potential improvements, representing $4.4 billion in Net Present Value (pre-tax);ii
  • Target six to seven million ounces of steady gold production over a decades-long time horizon; i
  • Have the largest gold Reserves and Resources in the gold sector, including on a per share basis;
  • Be located in favorable mining jurisdictions and prolific gold districts on four continents;
  • Deliver the highest dividend among senior gold producers; iii
  • Offer financial flexibility and an investment-grade balance sheet to advance the most promising projects at an Internal Rate of Return (IRR) of at least 15 percent; iv
  • Feature a deep bench of accomplished business leaders, technical teams and other talent with extensive mining industry experience; and
  • Maintain industry leadership in environmental, social and governance performance.

Full release

Canopy Growth isn’t buying Acreage Holdings, it’s buying the right to buy Acreage Holdings

Canopy Growth Corp. is not outright acquiring Acreage Holdings Inc., as reports said Wednesday, but it is preparing to pay billions for the rights to buy the U.S.-based pot company.

A source familiar with the negotiations confirmed Wednesday afternoon that a Canopy Growth deal with Acreage was “98% done,” though the final price was still being worked out. Acreage had a market cap of $2.45 billion as of Wednesday’s close, but the deal will be worth “several billions” in Canadian dollars, the source said.

If Canopy Growth were to outright acquire Acreage, though, it would run afoul of rules for the Toronto Stock Exchange, where its shares are listed. The TSX does not allow companies to own stakes in businesses that run illegal operations, which Acreage technically does because marijuana is still federally illegal in the U.S. Canopy would also have to give up its U.S. listing, which was cross-listed from the TSX, and instead look to the Canadian Securities Exchange and over-the-counter trading in the U.S., as publicly-listed U.S. companies do.

Instead, Canopy Growth will purchase the rights to buy Acreage when (or if) marijuana becomes federally legal in the U.S. at an agreed-upon price, according to the source. Many cannabis companies in Canada have purchased warrants in companies with U.S. operations, and Canopy already has some, including in Slang Worldwide Inc and others owned by its Canopy Rivers Inc. investment subsidiary, which is listed on the TSX Venture exchange.

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The US Government Received a $4.7 Billion Payout From Weed Taxes

The US government collected $4.7 billion from state-legal weed businesses in 2017, according to a report from Quartz.

To put that $4.7 billion figure into perspective, the highest-valued NBA team of all time, the New York Knicks, is worth slightly less, at $4 billion.

Also hitting the $4 billion mark: the prom industry, digital ink, omega-3 supplements, and the package coating industries are all worth about $4 billion each. The entirety of Canada’s legal weed market is also valued at about $4 billion.

Federal law currently classifies marijuana as a Schedule I drug, a category for deadly substances with no accepted medical use. But that doesn’t exempt marijuana businesses from reporting taxable income to Uncle Sam, regardless of whether the business is state-licensed or underground.

However, due to tax codes for folks handling Schedule I drugs, weed entrepreneurs cannot make the usual tax write-offs that other businesses can, such as deductions for employee payroll or licensing fees. Which means pot shops and other cannabis producers are effectively taxed at an incredible 90 percent rate, Quartz reported.

Furthermore, since US banks won’t open accounts for legal weed businesses, all payments were made in cash. With a payday of $4.7 billion, that comes to about 47,000 tons of cold, hard cash, assuming every tax payment was paid entirely in $100 bills.

How will 2018’s Tax Day fare for the federal government? Since the last day to file was yesterday, those numbers are still rolling in. But early tax data for 2018 showed recreational weed drew in over $1 billion in taxes, so it’s safe to say the feds will probably see yet another gratuitous payday for a plant it deems so dangerous that some federal inmates are still serving life sentences just for growing it.

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NEWS: PLUS™ Unveils New Classic Mints

Continuing to demonstrate its passion for providing low-dose cannabis edibles that consumers love, Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the “Company” or “PLUS”) today announced a new line of mints and the launch of the first flavor, Classic Mint.

The microdosing movement is not slowing down, and more people are implementing cannabis into their healthy lifestyle.  Mints are the perfect mechanism for delivering low-dose cannabis for those who may not want something quite as sweet or potent as a higher milligram gummy.

“Mints are a logical extension to the PLUS product family as more customers seek out unique taste experiences and low-dose products they trust,” said Jake Heimark, CEO and Co-founder. “We are excited about continuing to give customers the best experiences and will continue to be the leader in low-dose infused products in THC.”

Refreshing and delicious, PLUS Classic Mint flavored tablets contain 2.5 mg THC and less than 0.1 mg CBD each There are 40 mints per tin.

“We can’t wait to get PLUS Mints on our shelves, as we have a huge demand for microdosed products,” said Nate Haas, owner, Moe Greens. “Everything that comes out of the PLUS house is superb, high quality and we trust the brand enough to continue to sell it to our customers.”

Availability
PLUS Classic Mints are available at a limited number of licensed retailers across the state of California and will be launched market wide at the Hall of Flowers cannabis trade show on April 30th

Full Release

Pot sales fell in February as producers hoard supply ahead of edibles launch

Canadian sales of dried cannabis flower in February declined to the lowest level since legalization, as producers continued to stock up on marijuana ahead of the launch of edibles later this year, according to Health Canada. 

Canadians bought 6,671 kilograms of cannabis in February, down about nine per cent from the prior month, and the lowest amount since the last two weeks in October when 6,415 kilograms were sold, according to data released by Health Canada late Wednesday. 

While the legal cannabis market has been hit by supply issues and packaging problems, and the black market has continued to flourish, Health Canada stated the sales decline is largely attributed to fewer days in February. As well, the average daily sales of dried cannabis in February increased by one per cent compared to January – from 236 to 238 kilograms, the government agency said. 

Meanwhile, the total amount of inventory of finished and unfinished dried cannabis held by cultivators, processors, distributors and retailers totalled 144,470 kilograms in February, approximately 21.7 times the amount of total sales in the month, Health Canada said. The total amount of finished dried cannabis products held in inventory at the end of February was 23,739 kilograms, up 17.7 per cent compared to January.  

Total sales of cannabis oil in February was 7,244 litres, a decline of 8.5 per cent, although average daily sales of cannabis oil increased by 1.3 per cent. 

Finished inventory held by provincial and territorial distributors and retailers increased 16 per cent for dried cannabis, and 9.3 per cent for cannabis oil from the prior month, Health Canada said.

Cannabis sales fell 4.9 per cent in January to $53 million from December, the most recent month data is available, according to Statistics Canada. 

A survey of 500 cannabis users conducted by BMO Capital Markets released earlier this month found 35 per cent of all respondents indicated they have purchased legal recreational cannabis. Nearly two-thirds of those legal cannabis users indicated that they plan to purchase legal recreational cannabis again.

BMO added the survey responses also suggest that the muted level of legal recreational sales at the beginning of the year reflects continued supply shortages amid low inventory during the fourth quarter of last year, rather than a lack of demand for legal cannabis.​

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