Targeting Expansion Is The Name Of The Cannabis Game:


New York, NY May 13, 2019 – Stock Market Press is a leading financial news company that delivers up to date stock news, introduces private and public companies to a wide audience of investors, consumers, journalists and the general public via social media and a rapidly expanding network discusses the rapid expansion of cannabis companies across the globe.

There is an ongoing shift in the cannabis industry as global acceptance increases by leaps and bounds. As a result, companies are scrambling to secure more property, acquisitions, new country inroads and licensing deals. It’s a race at this point.

Companies are pushing for additional capital to effectuate this growth. CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) just raised over $150M via a public offering.

CannTrust Closes Previously Announced Public Offering

CannTrust Holdings Inc. (“CannTrust” or the “Company”, TSX:TRST, NYSE:CTST) announced [this week] the closing of its previously-announced underwritten public offering of 36,363,636 common shares at a price to the public of US$5.50 per share. The Company sold 30,909,091 common shares in the offering for total gross proceeds to the Company of approximately US$170 million before deducting underwriting discounts and commissions and estimated offering expenses, and certain shareholders (the “Selling Shareholders”) sold 5,454,545 common shares in the offering. In connection with the offering, the Company and the Selling Shareholders have granted to the underwriters a 30-day option to purchase up to an additional 4,636,363 and 818,182 common shares, respectively, at the public offering price, less the underwriting discount, which would result in additional gross proceeds to the Company of approximately $25.5 million.

The Company intends to use the net proceeds of the offering for general corporate purposes, including cultivation and facility expansion, expanded outdoor growing, international expansion, enhanced extraction capacity, upgrades for GMP Certification and biosynthesis development.

The growth isn’t in just one area as seen from CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) news. Every area from cultivation to international expansion is being targeted. It is like the gold rush from the 1800’s. Go bigger and expand faster or go home.

Sometimes the best way to effectuate growth and expansion is via acquisition of existing businesses. Cut through all the R&D time and costs as well as all the licensing and permitting requirements by acquiring a company that has already done it. HEXO Corp (“HEXO”) (TSX: HEXO; NYSE-A: HEXO) just received a ‘no-action’ letter from the Canadian regulators regarding the ‘Competition Act’ and their acquisition of Newstrike Brands.

Competition Bureau approves HEXO Corp/Newstrike Brands Ltd. Deal

HEXO Corp (“HEXO”) (TSX: HEXO; NYSE-A: HEXO) and Newstrike Brands Ltd. (“Newstrike”) (HIP.V) are pleased to announce that they have received regulatory approval from the Canadian Competition Bureau by way of a no-action letter under the Competition Act (Canada) indicating that it does not intend to challenge the proposed arrangement between HEXO and Newstrike, whereby HEXO intends to acquire all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario) (the “Transaction”). Receipt of the letter satisfies a key condition of the Transaction.

HEXO and Newstrike announced that they had entered into a definitive arrangement agreement with respect to the Transaction in March. The Transaction has already been unanimously approved by the board of directors of each of HEXO and Newstrike. In April, the companies announced that HEXO has entered into irrevocable hard voting support agreements with shareholders of Newstrike representing in aggregate approximately 38.3% of Newstrike’s issued and outstanding common shares.

While all of this expansion is ongoing, the local and national regulators continue to push for strong security and surveillance laws. Companies like DirectView Holdings, Inc. (OTC:DIRV) are taking advantage of their ability to adjust to changing markets by providing custom tailored solutions to the cannabis industry.

Roger Ralston, CEO and Chairman of DirectView, stated “[4/3] is the last day of Cannabis Conference 2019. With DirectView’s premium booth space, management has had to the opportunity to speak with individuals and businesses not soley in the cannabis industry, but from various industries. Many are requesting follow-ups, including a state university interested in testing and certifying DirectView’s security, surveillance, and access control equipment for official cannabis industry use. Cannabis Conference 2019 has been such a productive conference for Directview, likely our most productive conference to date.  The great thing about DirectView’s security and surveillance products is that they can be used in every industry. A good anology is that DirectViews products and services are very much like a utility, most every business has a need for our security and surveillance products and services. DirectView will be attending other industry specific conferences in the near future to showcase our offering to a wide variety of verticles. Once we attend our final day, today at the conference, we’ll pour over our notes and follow up with these exciting new inquiries and potential clients.”

With the cannabis sector looking at hundreds of billions of dollars over the next few years, companies are focused on building solid foundations to take advantage of this massive opportunity. This is similar to when prohibition in the USA ended, everyone was scrambling to get a foothold in the new market.

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