MedReleaf Enters Colombian Market, CV Sciences Delivers Strong Sales, Aurora Pays For Employees' Medical Marijuana

Cannabis companies announced a number of expansions Wednesday. Here is the industry’s top news of the day.

An Acquisition

MedReleaf Corp MEDFF acquired MED Colombia for €2.75 million in cash. The purchase secures licenses to cultivate cannabis and produce extracts in Colombia, which will feed MedReleaf’s global supply chain with low-cost, high-quality raw materials.

“As the legalization of medical cannabis continues to expand, we must ensure that our ability to cultivate cost effectively extends beyond Canada to supply our global operations,” MedReleaf CEO Neil Closner said in a statement. “Colombia has one of the best climates in the world for cannabis cultivation and excellent regulation to protect the rights of growers and operators.”

Through the acquisition, MedReleaf intends to accelerate plans to establish a Colombian cultivation and extraction facility.

A Merger

In a separate announcement, MedReleaf confirmed the completion its sale to Aurora Cannabis Inc ACBFF. MedReleaf shareholders will receive 3.575 common shares of Aurora for each unit of MedReleaf, which will be subsequently delisted from the Toronto Stock Exchange.

"The combination of MedReleaf and Aurora creates a well capitalized company positioned exceptionally well to generate further shareholder value, driven by the low-cost production of high-quality cannabis products,” Aurora CEO Terry Booth said in a release.

An Incentive

Aurora also made headlines by becoming one of the first companies to offer its employees medical marijuana coverage in its benefits package. The insurance plan is operated by Sun Life Financial Inc SLF, which began insuring the treatment in March.

Earnings

CV Sciences Inc CVSI expects to have tripled second-quarter cannabidiol sales this year, according to a Wednesday press release.

An unaudited report suggested $12.3 million in revenue representing 53-percent quarter-over-quarter growth. The company also posted an 11.1-percent sequential increase in retail store count.

"In Q1 of 2018, we reported our first quarter of profitability, and with these Q2 results we have demonstrated the strength of our products and the power of our brand recognition within the industry,” CEO Joseph Dowling said.

Cannabis investors can't afford to miss the Benzinga Cannabis Capital Conference, a premier gathering of investors and entrepreneurs painting an honest picture of the opportunities and challenges in cannabis investing. Space is limited—get your tickets before they sell out.