If you haven’t heard of CannaRoyalty (CRZ.C) before, that’s possibly by design. Marc Lustig’s cannabis industry roll-up has been quietly moving in the background of the marijuana space for some eighteen months now, slurping up North American weed assets in part and whole, in several states, and in a variety of sub-sectors, with a view to forming the first true national brands.
By virtue of working with license holders across Washington State, Oregon, California, and Arizona, CannaRoyalty is able to leverage the tech, IP, brands and products it has a piece of in one state, across the others also. A deal with Aphria gives that company a first look at licensing opportunities within Canada.
CannaRoyalty lands on the public markets Thursday, according to a news release from the company:
CannaRoyalty Corp. (CSE:CRZ) is pleased to announce that its wholly-owned subsidiary has completed a three-cornered amalgamation with Cannabis Royalties & Holdings Corp. (“CRHC“) that has resulted in the reverse takeover of CannaRoyalty by CRHC (the “RTO“).
The other vehicle in the transaction is Bonanza Blue, which is henceforth no more.
Prior to the RTO, CannaRoyalty changed its name from Bonanza Blue Corp. to CannaRoyalty Corp. and completed a 5 for 1 share consolidation. In addition, prior to the RTO, the escrowed proceeds from CRHC’s previously announced brokered private placement of subscription receipts were released to CRHC. Each subscription receipt was converted into one CRHC share, which was then exchanged for one CannaRoyalty share pursuant to the RTO. CannaRoyalty expects to use the net proceeds of the Offering for future acquisitions, general corporate and working capital purposes.
While Lustig serves as CEO and Director, esteemed Canadian cannabis public company pioneer, Nesta Holdings CEO, and Aurora Cannabis director Chuck Rifici will take a spot on the board. Alongside him will serve molecular genetics expert Dr. Jim Young, as well as Tribute Pharma, Aralez Pharma, and Legacy Pharma executive Rob Harris, and Vida Cannabis CEO Greg Wilson.
The CannaRoyalty RTO is one of the most heavily anticipated weed debuts in recent times, and comes just a day before Emblem Cannabis (EMC.V) is due to make its own big splash public debut.
— Chris Parry
FULL DISCLOSURE: Emblem Cannabis is an Equity.Guru marketing partner.
Who would you recommend if I were to choose one? CRZ or EMC? Does emc have any big plans for expansion?
Thanks Chris
They sure do. I don’t think you’d get a struck match between them, to be honest. Both are doing things the right way, and will go out undervalued – for a short while.
Thanks for the great updates! What do you expect CRZ to open at?
Total guesswork, but I’d be buying up to $4. It could swing a few bucks around that in either direction. I’ll probably peg a $1.50 or $2 bid in for the open and see if it gets rung up.
Since they are incorporated in Canada, are they allowed to get profits from their holdings in the Sates?
Yes indeed. Most of the assets are in services, related products, or in states where their piece is legal (at least on the state level). Some of it is in licensing of names or tech. Some is in financing rather than ownership.