First up, Quadron Cannatech (QCC.C) has signed on to supply cannabis extraction equipment to Puriflor Enterprise, a private late-stage applicant based out of Montreal currently developing an extraction facility.
Additionally, Quadron and Puriflor will be forming a joint-venture where Quadron will acquire a one-third interest in the said Puriflor facility.
“This joint venture is in keeping with Quadron’s business model wherein we select strategic partners in which we take an interest in our joint venture partner companies and solidify revenue sharing agreements in licensed facilities.”
–Rosy Mondin, Quadron CEO
The company aims to target both the recreational and medical markets with up to eight different craft strains of cannabis.
“Puriflor aims to become a full service hub for third-party licensed producers looking to create value and diversify their delivery platform offerings. Partnering up with relevant and established players is in line with our expansion philosophy and will help achieve our objective to produce the finest extracts available in the market.”
–Ramy Jabbour, CEO of Puriflor
Besides standard cultivation, Puriflor says it has set its sights on developing its nursery propagation capabilities, and exploring collaborative R&D opportunities with universities.
The company’s website stresses its focus on conservation, ethical sourcing of materials and using renewable energy for its operations.
Whether it involves using biomass for power, recycling rainwater or using solar technology and biodegradable packaging, Puriflor says it is fully committed to the environment.
Additionally, all of the company’s harvest and post-harvest operations will be done in-house, ensuring that Quadron’s new partner maintains complete control over quality standards.
Quadron in brief
Quadron Cannatech is a multi-faceted business. Through its three subsidiaries, the company develops concentrates, its own extraction equipment and vape accessories.
Last week, Quadron announced the signing of a binding LOI to merge with another extraction equipment provider.
Read: World Class Extractions (PUMP.C) absorbs Quadron Cannatech (QCC.C)
As part of the deal, Quadron shareholders will receive two shares of World Class for each common share of Quadron held.
With World Class’ strong cash position and Quadron’s technical expertise and established customer base, the merger is likely to provide meaningful value for shareholders.
What both companies bring to the table:
- Quadron’s extraction and processing systems, which are automated and have been simplified relative to comparable technologies;
- a deep roster of Quadron executives and employees that have been operating in the extraction and processing sector for over four years;
- an established and growing revenue stream, as demonstrated by Quadron’s revenue increasing by 50.71% for the six months ended October 31, 2018 when compared to the same period in 2017;
- World Class’s unique patent-pending technology, which World Class anticipates will provide higher yields of full spectrum cannabis oil at faster rates and larger volumes than current extraction technologies; and
- a strong cash position resulting from World Class’s recently-closed private placement for gross proceeds of approximately $23,000,000.
Quadron was down 2.2% by market close and came to rest at $0.22 per share. The company has a market cap of $15.8M and has 72M shares issued.
Yield Growth glows up
Next, Yield Growth (BOSS.C) has completed product development for its latest facial cleanser.
The Urban Juve Micellar Water, undergoing its final stability testing pre-launch, is intended to disrupt a global wellness market valued at nearly five trillion dollars by the Global Wellness Institute.
Skin-care and wellness have become a mega industry. Practically overnight, sponsored social media posts offering detox-teas and pH balance renewing creams popped up.
Even politicians are getting in on this craze as a way of appealing to voters. In January, Congresswoman Alexandria Ocasio-Cortez (AOC) posted her skin-care routine on her Instagram story.
As part of her nightly routine, AOC told her followers that she avoided harsh compounds like alcohol to remove makeup.
Likewise, Urban Juve’s Micellar Water cleanser is formulated with witch hazel and hemp root oil to remove makeup without damaging skin.
“We created Urban Juve Micellar Water to be extra gentle, making it suitable for all skin types,” said Bhavna Solecki, director of product & content at Urban Juve.
Urban Juve Micellar Water is now undergoing its final stability testing in recyclable plastic packaging to establish a two year shelf life. Testing is anticipated to conclude by May 2019, with the full product launch to follow later in the year.
Yield Growth closed at $0.64 today. The company has a market cap of $55.8M and 87.3M shares issued.
–Ethan Reyes
Full disclosure: Quadron and Yield Growth are Equity.Guru marketing clients.