- New Canadian assets to be listed on the Toronto Stock Exchange and Nasdaq
- Sunniva’s U.S. assets to remain listed on the Canadian Securities Exchange (CSE) under the ticker symbol ‘SNN’
- Two-year contract signed with industry leading Canopy Growth Corp. for 45 percent of production at Sunniva Canada Campus in British Columbia
- Sunniva anticipates launching its first line of Sunniva-branded products in the U.S. in Q3 2018
Sunniva Inc. (CSE: SNN) (OTCQX: SNNVF), a vertically integrated medical cannabis company headquartered in Vancouver, Canada, and operating in the world’s two largest cannabis markets – Canada and California – is reaping positive attention with the news that the company intends to spin off its Canadian assets. The proposal, which would create a new entity listing on the Toronto Stock Exchange (TSX) and Nasdaq, will leave Sunniva’s U.S. assets to trade on the Canadian Stock Exchange, the company announced in a recent press release (http://nnw.fm/YH7q6).
Canadian assets in the proposal, designed to unlock the underlying value of Sunniva’s assets on both sides of the border, include:
- Sunniva Medical Inc., which is building the 740,000 square foot, state-of-the-art greenhouse Sunniva Canada Campus in British Columbia. The facility is designed to produce an estimated 100,000 kilograms of dried cannabis per year (http://nnw.fm/4FmNw). Plans for the facility include the production of pharmaceutical-grade cannabis products such as oils, capsules, tinctures, patches, lotions and other consumer goods, Sunniva CEO Dr. Anthony Holler told Canada’s Global News in a June 4 interview (http://nnw.fm/58EyN). Canopy Growth Corporation has already signed an agreement to take-or-pay approximately 45 percent of Sunniva’s annual production capacity there.
- Natural Health Services Ltd. (“NHS”) owns and operates a network of seven patient-centric clinics in Canada specializing in medical cannabis under the Access to Cannabis for Medical Purposes Regulations. NHS clinics are staffed by physicians, nurses, educators and patient care representatives to provide consultation, medical cannabis education and an introduction to the products and strains available through licensed producers across Canada. NHS recently opened a new clinic in Windsor, Ontario (http://nnw.fm/rKXa9).
Remaining listed on the Canadian Securities Exchange under the ticker symbol ‘SNN’ are the following Sunniva assets:
- CP Logistics, LLC (“CPL”) operates the Sunniva California Campus that is currently under construction in Cathedral City (http://nnw.fm/Br5YF). The 489,000 square feet of purpose-built greenhouse facilities include a flagship onsite dispensary with a distribution license. CPL also operates a licensed extraction facility in Cathedral City, which began operations in June 2018, and has attracted service agreements to manufacture extracted products for significant brand partners in California. Plans include launching the first Sunniva-branded products in the U.S. during Q3 of 2018.
- Full-Scale Distributors, LLC provides custom, private-label vaporizers and accessories to brand partners through the Vapor Connoisseur brand.
The spinout transaction, which is subject to various conditions such as shareholder and exchange approval, has prompted comments such as “an excellent value creation strategy” from Beacon Securities analyst Doug Cooper (http://nnw.fm/E1H6n).
“We believe having unencumbered US assets is very important and frees up the company to aggressively pursue an M&A strategy within the largest cannabis market in the world (California),” the analyst said in an update to clients on Tuesday (http://nnw.fm/8kmZF). “SNN has a current EV of ~$220 million, which neither reflects the true value of the US nor Canadian assets.”
Holler said creating a new Canadian company focused on Sunniva’s Canadian assets is expected to “bring added visibility and additional analyst coverage to our story and has the potential to attract institutional investors that are currently unable to purchase stock on the CSE or purchase companies holding US assets.”
For more information, visit the company’s website at www.sunniva.com
More from NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
For more information, please visit https://www.NetworkNewsWire.com