BZAM announced today that it has entered into a definitive share exchange agreement to acquire Final Bell Canada Inc. from Final Bell Holdings International Ltd, a hardware, packaging and brand development company serving the cannabis industry.
The deal will make BZAM the fifth largest Canadian LP, including a production facility in Ontario.
The company also lists cannabis brands operating in Canada like Tweed, Spinach, Sherbinskis, Foray, Ace Valley, B40, Beurre Blanc, Kolab, Cookies, and others among its clients.
Under the terms of the agreement, FBHI, the sole shareholder of FBC, will receive 90,000,000 common shares of BZAM at a deemed price of $0.15 per share, representing approximately one-third of the issued and outstanding shares of BZAM. The transaction is anticipated to occur on or about December 18, 2023, subject to customary closing conditions.
BZAM says it will also enter into a supply agreement in which FBHI’s wholly-owned subsidiary, 14th Round Inc., will continue to provide child-resistant packaging, vaporization hardware, and pre-roll cones to BZAM.
“This Transaction combines BZAM’s cultivation, production, and sales infrastructure with the exceptional portfolio of international brands that Final Bell has brought to market in Canada. FBHI, together with Greg Boone and his team at FBC, have done an incredible job introducing the biggest names in cannabis to Canadian consumers and creating significant value in the process. We are pleased to bring this team and these brands to BZAM,” said Matt Milich, Chief Executive Officer of BZAM. “This combination also brings in FBHI as an invaluable strategic shareholder to the Company, which creates additional opportunities for long term growth and value creation.”(2)
“This combination places the combined entity as the 5th largest Canadian L.P. on a proforma basis”(1)(2) said Robert Meyer, CEO of FBHI. “BZAM’s demonstrated prowess in the Canadian marketplace, coupled with our brand portfolio and packaging and hardware innovation are a recipe for continued growth with many competitive advantages.”(2)
“We are proud of the work we have done to bring many of the leading cannabis brands from California to Canada and I am excited to continue the work of developing those brands under the BZAM umbrella with the incredible resources BZAM brings to the table,” said Greg Boone, CEO of FBC.
As part of the Transaction, Greg Boone will join BZAM as President, and Jennifer Maccarone will join as VP of Operations. FBC’s Chief Legal Officer Christy Zhou will assume the same role at BZAM, and Lana MacKenzie will also take on a senior role within BZAM. Matt Milich will remain as CEO of BZAM. In addition, FBHI will be entitled to appoint a new member to BZAM’s board of directors.
After FBHI completed the acquisitions of 14th Round Inc. and Final Bell Canada Inc. in late 2022, Boone noted the company’s early success in the Canadian market.
“Final Bell’s success in Canada as a co-manufacturer and commercialization partner is reflected not only in how quickly we are climbing the LP rankings – specifically in Cannabis 2.0 products – but also in the innovative SKUs launched with our brand partners.”
14th Round is the company behind many of Final Bell’s vape brand partnerships.
Further to the transaction, the combined Company will be the Canadian home of several well-known cannabis brands – including Cookies, Sherbinskis, and Wyld.
(Globe Newswire) Vancouver — EnWave Corporation announced that the TSX Venture Exchange has provided conditional acceptance of the company’s normal course issuer bid, subject to the company meeting all of the requirements of the TSXV.
Under the terms of the normal course issuer bid, EnWave may acquire up to 10,799,564 common shares, representing 10 per cent of the public float of EnWave as of December 5, 2023. The company is conducting the NCIB in order to maintain flexibility to purchase the common shares, if, among other things, the company determines that it is an appropriate use of corporate funds based on the market price of the common shares from time to time.
As of December 5, 2023, the company had 110,695,055 common shares outstanding. Under the TSXV policies, EnWave is entitled to purchase up to 2,213,901 shares in any 30-day period up to the maximum of 10,799,564.
The purchases may commence on December 7, 2023 and will end on December 6, 2024 or on such earlier date as EnWave may complete its purchases pursuant to the notice of intention to make a normal course issuer bid filed with the TSXV. The actual number of common shares which will be purchased and the timing of any such purchases will be determined by the company.
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All shares purchased by the company will be on the open market through the facilities of TSXV by Cormark Securities Inc. acting on behalf of EnWave in accordance with the policies of the TSXV and will be surrendered by the company to its transfer agent for cancellation. The prices that EnWave will pay for any of the common shares purchased will be the market price of the shares at the time of acquisition.
EnWave did not purchase or cancel any common shares under the previous normal course issuer bid that commenced on November 22, 2022 and expired on November 23, 2023.
A Canadian study published in the “Journal of Psychoactive Drugs” has revealed that psilocybin, the main hallucinogenic agent in magic mushrooms, may reduce psychological distress in individuals with childhood trauma. The researchers found a possible association between magic mushroom use and declines in psychological distress, especially among people with adverse childhood experiences (ACE) after exploring the relationship between psychological distress and psilocybin use.
Like several other classic psychedelics, psilocybin has been subject to increased attention in recent years, thanks to anecdotal and scientific claims of its medical efficacy. Previous research efforts have found that psilocybin may be effective at treating debilitating psychological illnesses and reducing symptoms such as suicide ideation.
The recent Canadian study delved deeper into the connection between psychedelic use and adverse childhood experiences including neglect, exposure to violence and abuse, which regularly leave long-lasting mental scars.
Simon Fraser University assistant professor of health sciences and study author Kiffer G. Card says the research team was especially interested in whether the widely accessible psilocybin could benefit people suffering from the long-term effects of ACEs. Card and his team used email and online platforms such as Reddit, Instagram and Facebook to recruit 1,249 study participants of diverse backgrounds, ethnicities and sexual orientations; participants had an average age of 39.8 years.
The participants provided data on key demographics such as gender, age, income, education, disability status, ethnicity and sexual orientation as well as their history of psilocybin use. The researchers also asked the participants to fill out the Adverse Childhood Experiences (ACE) Questionnaire, which assesses childhood traumas such as exposure to substance abuse, neglect, domestic violence and abuse. Participants also filled out the Psychological Distress Scale (K6), which measures the frequency of distressing psychological symptoms such as hopelessness, nervousness, restlessness, worthlessness and depression within the past month.
The researchers found that participants who used psilocybin within the past three months had reduced levels of psychological distress compared to participants who didn’t use the psychedelic, indicating that recent magic mushroom use may be able to lower symptoms of psychedelic distress. Interestingly, psilocybin use seemed to produce a pronounced beneficial effect on people with higher ACE levels.
Most participants reported using psilocybin at least once in their lives, and the majority said they used the psychedelic to deal with emotional and mental-health challenges and as a self-help tool.
Card noted that while the study was only observational, it adds to the literature connecting psilocybin use with mental-health benefits, particularly in people who were exposed to severe childhood distress.
The psychedelic drug candidates that enterprises such as Mind Medicine Inc. (NASDAQ: MNMD) (NEO: MMED) (DE: MMQ) are developing could help in effectively treating specific kinds of mental-health issues that currently have few treatment options.
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Synthetic cannabinoids are manufactured in a laboratory instead of being naturally synthesized by the cannabis plant. There are two different types of synthetic cannabinoids. The first type is FDA-approved pharmaceuticals such as dronabinol (Marinol®, synthetic THC). The second refers to various unregulated “designer” mixtures, like “Spice/K2,” sold in convenience stores and smoke shops, which are dubiously legal, and sometimes dangerous. These do not contain classic cannabinoids or have the same safety profile.
So-called “minor” cannabinoids are now being synthesized in large quantities from hemp waste. Synthesized cannabinoids use chemical processes to convert hemp-sourced cannabinoids such as CBD and THC into THCO, Δ8-tetrahydrocannabinol (Δ8-THC), and other cannabinoids that naturally occur in the plant in minimal quantities.
In particular, Δ8 is being marketed as a “legal high” by unscrupulous hemp producers because it is mildly psychotropic. Cannabis researchers have raised concerns about their use and safety in new products sold on the hemp market. Products containing high levels of Δ8-THC are synthetically manufactured using unregulated manufacturing processes that may involve dangerous household products. They are often inaccurately labeled and may contain cutting agents or heavy metals. The adverse effects of these products have been reported to the US Food & Drug Administration (FDA).
Budtenders should be aware that if Δ8-rich products are available in the dispensary, they are synthetic, not naturally occurring
Find more information on synthetic and designer cannabinoids in The Budtender’s Guide by Oaksterdam University.
Many in the industry are supportive of the recent announcement from the OCS that it will be testing some cannabis flower products that come through its central distribution warehouse beginning in January 2024. But some say the provincial buyer has also contributed to the problem it is now trying to solve.
Beginning in the new year, the provincial cannabis wholesaler will be selecting some high-THC cultivars coming into its warehouse for secondary testing. Any products with secondary testing results inconsistent with the THC levels posted on their label will be subject to further scrutiny, including a potential return-to-vendor for re-labelling.
While not all are happy with the announcement, many say it’s a needed step to begin to bring the issue of THC inflation under control. However, a few argue there’s a bit of irony that a provincial agency that has enforced a high THC narrative is now going to punish producers who are leaning into that category, no matter how accurately or not.
“The fact that these large corporations like the OCS were those pushing for the high THC category and accepting these finished THC COAs was a major part of the problem.”
Rick Moriarity, High North Laboratories
Walker Patton, the head of corporate development at Woody Nelson, a small producer located in Nelson, BC, that has products for sale in Ontario, says he expects this policy will change how some labs are testing cannabis products.
“In our opinion, the biggest challenge to having potency numbers that folks can rely on is the lack of a standardized methodology for testing. While that isn’t exactly what the OCS has done here, it might still have the same effect. I wouldn’t be surprised to see some of the labs known for more generous results adopting Sigma’s methodology to avoid a potential rejection of product.”
Rob O’Brien, the CEO and CSO at Supra Research and Development, another analytical lab that offers testing services for the cannabis sector, also says he sees the OCS’ new testing program as a step in the right direction and something he thinks other provincial cannabis agencies should be taking on.
“Every provincial distribution centre should be accountable for what they are selling,” says O’Brien. “They should make sure that the product they are selling matches what’s on the label. It’s as simple as that. If the producers aren’t doing that, then the provinces selling those products need to ensure they are.”
O’Brien, located in BC, is no stranger to the field of cannabinoid testing and the specific issue of inflated label claims, especially for THC on dried cannabis flower products. In early 2023, he shared his own independent testing results showing inaccurate labelling on dozens of products he purchased from the BC Cannabis Store.
He says he expects to release a new round of results from even more testing very soon that will shed even more light on the issue. Those results will be shared with all relevant provincial cannabis sellers and agencies, including the OCS.
While some have criticized the OCS’ use of an acceptable variance between label claim and testing results of +/-15%*, O’Brien says he thinks this is a reasonable, if small, window. He has used a 25% allowance for variability in his own testing.
*15% of label claim, not 15 percentage points.
“If there are products that are significantly out of label claims,” he adds, “those products should be recalled, and the provincial distribution networks should be fined. That would help us get away from this labelling issue.
“I think it’s a little tight, but it’s fair enough. Any of these products should come within 15% of the label claim.”
While the OCS is simply requiring any failed products to be relabelled by the producer, O’Brien says he would like to see these products formally recalled, and even see producers held accountable if they have approved the products for sale.
“If there’s a conspiracy to commit fraud and the manufacturer is knowingly putting a wrong number on a product—so the customer buys that product—and the middle man is aware as well and not doing something, then they’re complicit, too.”
“If there’s a conspiracy to commit fraud and the manufacturer is knowingly putting a wrong number on a product—so the customer buys that product—and the middle man is aware as well and not doing something, then they’re complicit, too.”
Rob O’Brien, Supra Research and Development
Chris Crosbie, the founder and COO of Atlantic Cultivation in Newfoundland, which has products available for sale in Ontario, says he also supports the OCS’ testing program but shares similar concerns with variability in lab methodology as those held by Patton and Woody Nelson.
“My main concern is that labs have a wide degree of variance for potency results. To avoid the risk of the product not being accepted, I’m inclined to start using whichever lab they have selected to have the highest chance to be within the target THC range.”
“To avoid the risk of the product not being accepted, I’m inclined to start using whichever lab they have selected to have the highest chance to be within the target THC range.”
Chris Crosbie, Atlantic Cultivation
James Ouimet, the founder of Green Canna, a cannabis sourcing company in BC specializing in B2B sales of cannabis, says he thinks policing of THC levels is important but also thinks smaller companies may be unfairly punished for participating in a race for high THC they were forced into by provinces like Ontario, who often control what products will even be available for sale in their regions.
“I do not think this is a useful approach… It is important to address this issue and take appropriate measures to regulate THC levels in cannabis products; however, it would have been ideal if these changes had been implemented earlier when independent studies first started showing a drastic increase in THC percentages. Waiting until now to make these changes puts licensed producers and micros in a difficult position as they try to meet the high THC demands imposed by the provinces.”
Ouimet explains this is because of the trend by provincial buyers to put a greater emphasis on high-THC cannabis flower, often pushing well above the previous threshold of around +30% THC.
“The root of the problem, in my opinion, lies with the regulatory decisions made by the provinces,” continues Ouimet. “Instead of addressing the issue when it was first brought to light four years ago, provinces began only expecting cannabis flower with 20% THC or higher. This puts immense pressure on producers to increase the THC levels in their products.
“Consequently, the industry became solely focused on achieving high THC content, thus diminishing returns on quality flower within lower THC ranges. This leaves top-level players in the cannabis market, such as micro-cultivators, struggling to keep up logistically and financially. Even flowers with THC levels of 20-23% are facing challenges in getting accepted now.
“It is important to note that it’s the provinces, and not the producers, who make these decisions. Due to neglect, many LPs in the industry have resorted to bending the rules to meet the increasing demands set by the provinces. When you’re in the driver’s seat, it’s easy to blame the people in the back.”
Rick Moriarity, COO of High North Laboratories, says he thinks the program is a step in the right direction, but he also notes that this is an issue at least in part engendered by the OCS buyers seeking out high THC cultivars.
“From a lab’s point of view, I’m happy that OCS has acknowledged there’s an issue with THC inflation,” Moriarity tells stratCann.
“But the fact that these large corporations like the OCS were those pushing for the high THC category and accepting these finished THC COAs was a major part of the problem.”
He says the issue is something that Health Canada should be addressing by vetting or qualifying which labs cannabis producers can use. In place of that, he thinks OCS could take that approach instead of this current testing plan.
“It’s still a step in the right direction,” he emphasizes, “but I don’t see this having a big effect.”
Researchers at the University of Colorado Boulder are on the hunt for a reliable cannabis breathalyzer. Dozens of states now allow access to medical or recreational cannabis, but law enforcement institutions in the United States have largely been against cannabis reform efforts.
On top of complicating law-enforcement efforts, these institutions say legalization will increase driving under the influence rates across the country. While data from several states shows no correlation between cannabis reform and higher traffic incident rates, the lack of a proper cannabis drug test is a major issue.
The breathalyzer has a long history of accurately testing alcohol levels on-site, but we still don’t have tests that can check cannabis intoxication rates. Now that tens of millions of Americans have access to marijuana, there is an urgent need for reliable cannabis breathalyzers to aid in the policing of driving under the influence and prevent nonintoxicated people from being penalized due to inaccurate tests.
Current tools regularly fail to provide accurate blood cannabis levels and often cannot correlate these levels with intoxication at the moment, meaning Americans can be penalized for having THC in their blood even if they aren’t necessarily intoxicated at the moment. The lack of proper tools has left many law enforcement officials searching for a way forward.
Sgt. Roger Meyers from the Colorado State Patrol says the agency has decided not to use the cannabis breathalyzers currently on the market. University of Colorado Boulder associate professor of cognitive science Cinnamon Bidwell says the tools currently in use simply aren’t a good system. He says researchers at the university are working to develop a reliable tool as fast as they can to meet market demand for a marijuana breathalyzer. According to an initial report from a new study, the development of such a tool is gaining promise in terms of gaining scientific information and using the device to help make law enforcement in transportation safe and fair.
Bidwell says that the potential for roadside testing will be incredibly critical for public safety but explains that it will take a lot of research steps before scientists can even establish if a marijuana breathalyzer will be suitable for use by public safety officers. He explains that comparing a marijuana breathalyzer with an alcohol breathalyzer is akin to likening apples to pinecones because only very small amounts of cannabis remain in the body after ingestion.
The fact that marijuana stays in the system longer also makes it difficult to determine a timeline of consumption, especially in people who consume the drug regularly. An accurate test would require plenty of work from the ground up to learn how different cannabis strains affect people, to share this knowledge to troopers and to develop tools that can accurately test cannabis intoxication levels.
The entire cannabis industry, including major companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), would welcome a reliable way to identify people who are driving while intoxicated or those who use cannabis while at work. This would prevent innocent people from being victimized for false positives arising from cannabis use that occurred days or even months prior.
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