CannaRoyalty (CRZ.C) celebrated today as it announced the company’s investee, Resolve Digital Health, had successfully wrapped up a $5.0 million Series A financing round led by TSX-listed and ACMPR licensed producer, Aphria (APH.T) with participation by CannaRoyalty.
According to the news release, CannaRoyalty will now control 27.2% of Resolve’s shares on a non-diluted basis. These shares have an implied value of approximately $7.1 million based on the financing price.
The future of medical marijuana is in prescriptions. Doctors require a level of accuracy and control over dosages to do their jobs properly and until the industry can meet these standards, we won’t see a general shift toward medical marijuana treatment methodologies.
Resolve Digital Health is developing a delivery system based on proprietary smart technology called Breeze. Breeze is intended to give physicians that necessary control when prescribing and monitoring cannabis-based therapies.
Breeze combines a single dose pod vaporizer delivery system with cloud-based analytical support for greater patience confidence and consistency.
Resolve Digital Health Founder and CEO, Rob Adelson, commented, “We are breaking new ground with the strides taken over the last two years to completely rethink the medical cannabis experience with a patient-centric approach that is measurable and trackable at the heart of our strategy.”
CannaRoyalty spotted Resolve’s potential back in October 2015 when the company made its first investment. Since that time, CannaRoyalty has made multiple share acquisitions in the firm, including the $80,000 CannaRoyalty threw in during the last financing.
Resolve is positioning to publicly list and after two years of development, the company plans to have its complete product ecosystem available this spring in select dispensaries in the U.S.
Adelson continued, “The advancements made thus far would not have been possible without the support and collaboration from Marc and the team at CannaRoyalty, which are even stronger today with our new partner, Aphria.”
Aphria, which has more than tripled its share price since the task force announcement, plays on a senior exchange and currently trades at $6.57 a share for a market cap of $887.74 million. Their interest in Resolve is a major plus for both the company and its mandate.
Aphria’s interest is also a plus for CannaRoyalty as CannaRoyalty CEO, Marc Lustig, affirmed, “We are thrilled about participating in the closing of this financing. It provides third party validation of our initial investment in Resolve at a significantly higher valuation. It is an example of the success of our business model that includes identifying high-value cannabis assets, partnering through investment and assisting in the growth and commercialization of brands, products and devices – while increasing value for our shareholders.”
Investors have thrown CannaRoyalty some considerable love over the last week, driving SP up to $2.94 today from just over $2.50 on March 22nd.
Can’t wait until Resolve lists, you may want to keep this one on your radar as well.
FULL DISCLOSURE: CannaRoyalty and Resolve Digital Health are EQUITY.GURU clients. EQUITY.GURU also carries a position in both companies.