Booming Demand for CBD Creating a $23.7 Billion Market Opportunity - Seite 2

Other cannabis-related developments from around the markets include:

Cronos Group Inc. (NASDAQ:CRON) just announced that it has entered into a definitive agreement to acquire four of Redwood Holding Group, LLC's operating subsidiaries.

Redwood manufactures, markets and distributes hemp-derived cannabidiol (CBD) infused skincare and other consumer products online and through retail and hospitality partner channels in the United States under the brand, Lord Jones. Redwood's products use pure hemp oil that contains natural phytocannabinoids and terpenes found in the plant.  Under the terms of the agreement, Cronos Group will acquire Redwood for approximately $300 million, net of Redwood's estimated cash and debt and subject to a customary working capital adjustment as described in the agreement. $225 million of the total consideration (subject to the foregoing adjustments) will be paid in cash with the balance paid in newly issued Cronos Group common shares. Cronos Group will fund the cash portion of the transaction with cash on hand.

Aphria Inc. (NYSE:APHA) (TSX:APHA) just reported its results for the fourth quarter and fiscal year ended May 31, 2019. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.

"It's a new day at Aphria. Our team's solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter," stated Irwin D. Simon. "Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term. We built upon existing business fundamentals and capabilities, streamlined processes, strengthened governance, and focused on building brand awareness. Together, we have nurtured an entrepreneurial culture of accountability through data-driven decision-making for value creation in the global medical and adult-use cannabis industry.  Today's Aphria has a stronger foundation for long-term growth and success."  The company posted net revenue of $128.6 million in the fourth quarter, an increase of 75% from prior quarter and 969% from prior year; revenue for adult-use cannabis of $18.5 million in the fourth quarter, up 158% from prior quarter; net income of $15.8 million and adjusted EBITDA of $0.2 million in the fourth quarter; and adjusted EBITDA from cannabis operations of $1.9 million in the fourth quarter.