Proactiveinvestors USA & Canada Tidal Royalty Corp. https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Tidal Royalty Corp. RSS feed en Mon, 21 Jan 2019 12:58:21 -0500 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Tidal Royalty's portfolio company, Diem Cannabis, continues to push Massachusetts expansion forward ]]> https://ca.proactiveinvestors.com/companies/news/212647/tidal-royalty-s-portfolio-company-diem-cannabis-continues-to-push-massachusetts-expansion-forward-212647.html On Tuesday, cannabis industry financier Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF) announced that its portfolio company, Diem Cannabis, has made encouraging progress towards its expansion of its operations in Massachusetts.

The company said a number of key milestones have been reached, including securing properties for dispensaries in Worcester and Springfield, a municipal license to operate a dispensary in Worcester, and a property and municipal license for cultivation and production in Orange.

"While we have always had confidence in the Diem Cannabis team's ability to execute on their expansion plan, we are nonetheless impressed by how quickly they have been able to secure key strategic locations and garner municipal support for their efforts," said Paul Rosen, chief executive officer and chairman of Tidal Royalty.

READ: Tidal Royalty completes US$5M private placement and financing fee agreement with Lighthouse

"Diem Cannabis is managed by experienced cannabis operators and they have maintained laser focus on working with local stakeholders to build partnerships that will sustain them in the long term," said Rosen. 

In September, Tidal Royalty Corp signed a definitive agreement to provide Diem, a  licensed cannabis operator in Oregon, with financing of up to US$12.5mln over the next three years.

In exchange, Diem Cannabis will pay Tidal Royalty 15% of sales from the financed operations.

The company said that Diem Cannabis also purchased New England Patient Network (NEPN), a licensed operator of registered marijuana dispensaries in the state, in December 2018.

The acquisition will permit Diem Cannabis to operate medical marijuana treatment centers and is expected to provide priority consideration for Diem Cannabis' expected forthcoming recreational cannabis licensing application.

Further expansion plans

Diem was founded by executives with Silicon Valley and Wall Street experience and has cultivation, retail and home delivery operations in Salem and Portland.

Besides Massachusetts, Diem Cannabis plans further expansion in additional states and is in discussion with Tidal Royalty to explore opportunities to work together on such plans.

Shares of Tidal were at C$0.15 in Toronto on Tuesday. 

 

Contact Katie Lewis at katie@proactiveinvestors.com
Follow her on Twitter: @kelewis

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Tue, 15 Jan 2019 19:56:00 -0500 https://ca.proactiveinvestors.com/companies/news/212647/tidal-royalty-s-portfolio-company-diem-cannabis-continues-to-push-massachusetts-expansion-forward-212647.html
<![CDATA[News - Tidal Royalty completes US$5M private placement and financing fee agreement with Lighthouse ]]> https://ca.proactiveinvestors.com/companies/news/212346/tidal-royalty-completes-us5m-private-placement-and-financing-fee-agreement-with-lighthouse-212346.html Tidal Royalty Corp (CSE:RLTY.U) said it has closed its US$5 million private placement with Lighthouse Strategies LLC and a concurrent financing fee agreement.

The Toronto-based cannabis industry financier said in a press release that it’s entitled to 1% of the net sales of Lighthouse beverage lines, including Cannabiniers, Two Roots Brewing Co and Creative Waters Beverage Co.

READ: Tidal Royalty makes strategic investment in Lighthouse Strategies, maker of the first non-alcoholic cannabis-infused craft beer

Lighthouse operates 11 companies serving both traditional and regulated markets, including vertically integrated cannabis assets licensed in California and Nevada. The company is known for developing the world's first non-alcoholic, cannabis-infused craft beer and liquor brand, according to Tidal Royalty.

"Our enthusiasm for infused beverages has only grown since we initially announced this transaction," Tidal Royalty CEO Paul Rosen said in a statement. “We believe that Lighthouse has all the pieces in place to be a market leader in this space."

Under the deal, financing fees will accrue until Dec. 1, when Tidal Royalty may choose to receive such fees in cash or membership units of Lighthouse. After that, financing fees are payable quarterly in cash.

The term of the financing fee agreement is four to six years, depending on the achievement of certain milestones. Included are acceleration provisions in the event of a substantial asset divestiture, change of control or initial public offering.

Shares of Tidal fetched US$0.13 in Wednesday’s Canadian trading.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Thu, 10 Jan 2019 10:00:00 -0500 https://ca.proactiveinvestors.com/companies/news/212346/tidal-royalty-completes-us5m-private-placement-and-financing-fee-agreement-with-lighthouse-212346.html
<![CDATA[News - Tidal Royalty expects to resume trading on OTC Markets after FINRA application ]]> https://ca.proactiveinvestors.com/companies/news/212152/tidal-royalty-expects-to-resume-trading-on-otc-markets-after-finra-application-212152.html Tidal Royalty Corp (CSE:RLTY.U) said it expects to resume trading on the OTC Markets in the US after filing an application with the Financial Industry Regulatory Authority.

The Toronto-based provider of royalty financing for the legal cannabis industry said Monday in a press release that the Securities and Exchange Commission advised it in December that the agency had completed its review of the company’s registration statement.

READ: Tidal Royalty set to file registration statement with SEC; looks to reinstate shares on OTC

Tidal Royalty added that the registration statement is effective and rectifies the filing deficiencies of its predecessor entity.

In September, the OTC Markets stopped listing its common shares under the symbol TDRYF. The SEC had revoked the registration of the common shares of a predecessor company, Elkhorn Gold Mining Corp, for filing deficiencies, according to Tidal Royalty.

Shares of Tidal Royalty climbed C$0.01 to C$0.10 in Monday’s Canadian trading.

Contact Dennis Fitzgerald at dennis@proactiveinvestors.com

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Tue, 08 Jan 2019 07:52:00 -0500 https://ca.proactiveinvestors.com/companies/news/212152/tidal-royalty-expects-to-resume-trading-on-otc-markets-after-finra-application-212152.html
<![CDATA[News - Tidal Royalty cancels letter of intent with CannaRoyalty Corp ]]> https://ca.proactiveinvestors.com/companies/news/211335/tidal-royalty-cancels-letter-of-intent-with-cannaroyalty-corp-211335.html Tidal Royalty Corp. (CSE:RLTY) announced it has terminated, effective immediately, a letter of intent with CannaRoyalty Corp on the acquisition of an interest in Alternative Medical Enterprises LLC.

The acquisition was announced on August 27, 2018.

READ: Tidal Royalty to buy Altmed from CannaRoyalty Corp in a C$8mln cash and royalty deal

Tidal Royalty said it has decided not to proceed with the transaction following completion of its due diligence investigation. There were no further details.

Tidal Royalty provides royalty financing to the US regulated cannabis industry. The company provides operators with the funding they need to grow their business.

Contact Rene Pastor by rene.pastor@proactiveinvestors.com

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Mon, 17 Dec 2018 08:47:00 -0500 https://ca.proactiveinvestors.com/companies/news/211335/tidal-royalty-cancels-letter-of-intent-with-cannaroyalty-corp-211335.html
<![CDATA[News - Tidal Royalty in strategic financing partnership with Harborside parent FLRish ]]> https://ca.proactiveinvestors.com/companies/news/209307/tidal-royalty-in-strategic-financing-partnership-with-harborside-parent-flrish-209307.html Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF), the cannabis industry financier, has entered into a financing partnership with FLRish (“Harborside”), the parent company of the Harborside dispensaries in California.

Under the deal’s terms, in exchange for royalties on sales, Tidal Royalty will provide US$10 million in financing to prospective dispensary operators licensing the Harborside brand. Each potential financing transaction for dispensaries will be evaluated on a case-by-case basis and specific financing terms will be negotiated between the companies.

“Harborside is one of the preeminent cannabis companies in the US,” said Paul Rosen, Tidal Royalty’s CEO. “Through our strategic financing partnership, Tidal Royalty would provide select operators with the capital required to launch a dispensary licensing the “Harborside” brand in exchange for a royalty on sales.”

Founded in 2006 by cannabis industry activist and entrepreneur Steve DeAngelo, Harborside is a California-licensed cannabis operator, which runs two dispensaries and one of California’s largest cultivation facilities. Its flagship location in Oakland, California is the largest medical cannabis dispensary in the US.

READ: Tidal Royalty makes strategic investment in Lighthouse Strategies, maker of the first non-alcoholic cannabis-infused craft beer

The transaction increases Tidal Royalty’s portfolio of investments in licensed cannabis operators and follows the company’s announcement of its financing of Lighthouse Strategies, which has developed the world’s first non-alcoholic cannabis-infused craft beer and liquor brand.

Tidal Royalty is currently knee-deep in the process of evaluating other investment opportunities across the US, including in California, New York, Illinois, Ohio, Pennsylvania, Texas and Michigan.

As part of the Harborside deal, Tidal Royalty has also purchased C$3 million of senior unsecured convertible debt units, which pay 12% interest and are convertible into Harborside common shares. The units also include warrants to purchase 87 additional common shares per unit, for 24 months after the closing date of the financing.

Tidal Royalty provides royalty financing to the U.S. regulated cannabis industry.

Shares traded 3% higher to hit C$0.17 on Wednesday. 

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 15 Nov 2018 09:36:00 -0500 https://ca.proactiveinvestors.com/companies/news/209307/tidal-royalty-in-strategic-financing-partnership-with-harborside-parent-flrish-209307.html
<![CDATA[News - Tidal Royalty makes strategic investment in Lighthouse Strategies, maker of the first non-alcoholic cannabis-infused craft beer ]]> https://ca.proactiveinvestors.com/companies/news/208535/tidal-royalty-makes-strategic-investment-in-lighthouse-strategies-maker-of-the-first-non-alcoholic-cannabis-infused-craft-beer-208535.html Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF), the cannabis industry financier, said it will provide US$5M for Lighthouse Strategies, which has developed the world's first non-alcoholic cannabis-infused craft beer and liquor brand.

Lighthouse operates 11 companies and 150,000 sq ft serving both traditional and regulated markets and has licensed assets in California and Nevada.
"Infused beverages are one of the most exciting verticals in the entire cannabis industry," said Paul Rosen, Tidal Royalty's chief executive and chairman.

"Consumption of alcoholic beverages in social settings provides an analogue to how big this market can be. Lighthouse's beverage portfolio is a market leader that we only see strengthening over time."

Lighhouse's brands include Cannabiniers, which is a "beverage and technology" company servicing the regulated cannabis markets.

It also has Two Roots Brewing Co - a microdosed non-alcoholic cannabis-infused craft beer -  developed to emulate the rapid onset of alcohol, as well as its rapid dissipation from the body.

Brewbudz is the world's first 100% compostable and patented line of cannabis-infused single-serve coffee pods, while Just Society Coffee & Tea Co offers a combination of responsibly-sourced whole tea leaves and single origin coffee and high-quality cannabis flower.

At the same time as the subscription, the companies have entered into a financing arrangement with respect to certain Lighthouse beverage lines. They will execute definitive agreements and will release additional particulars upon closing.

Michael Hayford, Lighthouse's CEO, said on Monday: "We are extremely excited to work with Tidal Royalty, given their extensive industry experience and insight.

"They intimately understand the needs of cannabis entrepreneurs and have a very sophisticated perspective on the trends driving growth in the global regulated cannabis industry.

"With almost three years of research and development invested in our beverage product lines, we have been working tirelessly to educate both retailers and the capital markets as to the future of cannabis consumption.

"The Tidal Royalty team 'got it' and - most importantly - they got it quickly. We see this as a long-term strategic relationship wherein Tidal Royalty's North American experience across the cannabis industry will bring unique insights north and south of the border."

Lighthouse's beverages are currently distributed in Nevada and are scheduled to be released in California this month (November) with agreements to distribute in an additional five states.

Tidal Royalty's portfolio is growing. It previously announced an agreement to finance Diem's expansion into Massachusetts, and a binding letter of intent to purchase equity in, and assume a royalty agreement with, AltMed, which has operations in Arizona and Florida.

The firm is currently evaluating additional opportunities across the U.S., including in California, New York, Illinois, Ohio, Pennsylvania, Texas and Michigan.

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Mon, 05 Nov 2018 09:26:00 -0500 https://ca.proactiveinvestors.com/companies/news/208535/tidal-royalty-makes-strategic-investment-in-lighthouse-strategies-maker-of-the-first-non-alcoholic-cannabis-infused-craft-beer-208535.html
<![CDATA[News - Tidal Royalty set to file registration statement with SEC; looks to reinstate shares on OTC ]]> https://ca.proactiveinvestors.com/companies/news/205362/tidal-royalty-set-to-file-registration-statement-with-sec-looks-to-reinstate-shares-on-otc-205362.html Tidal Royalty Corp. (CSE:RLTY, OTC:TDRYF) is looking to reinstate its shares on the OTC markets through filing a registration statement with the U.S. securities regulatory authority.

As reported on September 11, after the close on September 10, the OTC ceased listing the shares under the symbol TDRYF due to an issue with the firm's predecessor.

"Tidal Royalty is working to prepare a registration statement on Form 20-F that it expects will rectify the historical filing deficiencies of the predecessor entity and permit FINRA (the Financial Industry Regulatory Authority that regulates the OTC Markets) to reinstate Tidal Royalty's eligibility for quotation on the OTC Markets," it said in a brief statement today.

Hopeful

"Tidal Royalty is hopeful its common shares will resume trading on the OTC Markets before the end of the year."

Paul Rosen, the chairman of  Tidal Royalty Corp. said on Thursday: "We are committed to rectifying the filing delinquencies of the predecessor company and to reinstate our listing on the OTC Markets.

"In the meantime, our stock continues to trade on the CSE."

 

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Thu, 20 Sep 2018 12:07:00 -0400 https://ca.proactiveinvestors.com/companies/news/205362/tidal-royalty-set-to-file-registration-statement-with-sec-looks-to-reinstate-shares-on-otc-205362.html
<![CDATA[News - Tidal Royalty adds former NBA player turned cannabis entrepreneur Al Harrington to advisory board ]]> https://ca.proactiveinvestors.com/companies/news/205231/tidal-royalty-adds-former-nba-player-turned-cannabis-entrepreneur-al-harrington-to-advisory-board-205231.html Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF) revealed that cannabis enthusiast and former National Basketball Association (NBA) player Al Harrington has joined its advisory board to help grow the business.

Tidal Royalty provides royalty financing to the regulated cannabis industry in the USA.

Since his retirement from professional basketball, Harrington has become a prolific entrepreneur in the cannabis industry and an outspoken proponent of cannabis legalization.

READ THE BIG PICTURE:  Tidal Royalty evaluating slew of opportunities in US cannabis market

His name-sake company, The Harrington Group, is focused on promoting a healthier lifestyle and easing the suffering of its customers, noted Tidal.

The Harrington Group holds controlling interests in Viola Extracts (a top-selling national cannabis brand) and Harrington Wellness (a consumer health and wellness brand), and a non-controlling interest in Butter Baby (a leading producer of THC-infused butter.

The company said they were exploring opportunities between Tidal Royalty and The Harrington Group.

Mr Harrington first became aware of the medicinal benefits of cannabis after suffering complications from knee surgery during his NBA career.

READ: Tidal Royalty to provide US$5mln in financing for new pot facility in Palm Desert, California

He also introduced his 80-year old grandmother to cannabis to help treat her pain caused by glaucoma and diabetes. Viola Extracts is named for her.

"With The Harrington Group, I'm looking to develop reliable and safe products for both medical patients and casual enthusiasts," said Harrington on Wednesday.

"I met the Tidal Royalty executive team one year ago, and I was impressed by their experience, ability to innovate, and dedication to helping develop the regulated cannabis industry in the U.S. We've since developed a strong relationship and I am truly excited about the synergies between The Harrington Group of companies and Tidal Royalty."

It's been a busy month for the group so far.  On September 6, it told investors it was set to provide US$5mln for a new cannabis manufacturing and distribution facility in Palm Desert, California.

Licensed operator, The Palm Desert Cannabis Company. is led by a seasoned management team with experience across cultivation, manufacturing and retail distribution.

The letter of intent means Tidal Royalty will provide the Palm Desert Cannabis Company with US$5mln for the buildout of the facility.

Palm Desert Cannabis Company will pay Tidal Royalty the equivalent of 10% of all net sales generated by operations in California initially and, once certain payments thresholds are met, 5% in perpetuity thereafter, along with 2mln share purchase options, representing around 5% of the share capital.

Shares in Tidal added over 8% to C$0.26 on the day.

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Wed, 19 Sep 2018 08:29:00 -0400 https://ca.proactiveinvestors.com/companies/news/205231/tidal-royalty-adds-former-nba-player-turned-cannabis-entrepreneur-al-harrington-to-advisory-board-205231.html
<![CDATA[News - Tidal Royalty hoping shares will resume trading on OTC markets shortly ]]> https://ca.proactiveinvestors.com/companies/news/204666/tidal-royalty-hoping-shares-will-resume-trading-on-otc-markets-shortly-204666.html Tidal Royalty Corp. (CSE:RLTY, OTC:TDRYF) is working to get its shares trading again soon on the OTC markets.

After the close yesterday (September 10) the OTC ceased listing the shares under the symbol TDRYF due to an issue with the firm's predecessor.

Namely, Elkhorn Gold Mining Corp filed a registration statement with the U.S. Securities Exchange Commission (SEC) as a foreign private issuer.

Elkhorn stopped filing its required periodic filings with the SEC in 1999 and as a result, the SEC issued an order on October 12, 2010, revoking the registered securities of Elkhorn.

"The company operated under the name Elkhorn Gold Mining Corp. between February 1999, to October 2011, under a different management and board of directors," explained Tidal Royalty.

As a result, brokers in the US are currently unable to effect transactions in the U.S. markets under the trading symbol TDRYF."

But it added that Tidal Royalty's shares continue to trade publicly on the Canadian Securities Exchange under the symbol RLTY.U.

"Tidal Royalty is working with the relevant U.S. regulatory authorities to address this matter and is hopeful that, as the deficiencies do not pertain to the present-day company, its common shares will resume trading on the OTC Markets shortly."

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Tue, 11 Sep 2018 12:58:00 -0400 https://ca.proactiveinvestors.com/companies/news/204666/tidal-royalty-hoping-shares-will-resume-trading-on-otc-markets-shortly-204666.html
<![CDATA[News - Tidal Royalty to provide US$5mln in financing for new pot facility in Palm Desert, California ]]> https://ca.proactiveinvestors.com/companies/news/204361/tidal-royalty-to-provide-us5mln-in-financing-for-new-pot-facility-in-palm-desert-california-204361.html Tidal Royalty Corp. (CSE:RLTY, OTC:TDRYF) is set to provide US$5mln for a new cannabis manufacturing and distribution facility in Palm Desert, California.

Licensed operator, The Palm Desert Cannabis Company. is led by a seasoned management team with experience across cultivation, manufacturing and retail distribution, the firm said.

READ: Tidal Royalty set to finance operator Diem's expansion into Massachusetts

With a population of 40mln, California has the potential for its adult-use cannabis market to be among the largest on the planet. California legalised adult-use cannabis at the beginning of this year, and the market is expected to grow to US$3bn by the end of the year, according to Marijuana Business Daily.

"We are very excited by this opportunity," said Paul Rosen, the chief executive and chairman of Tidal Royalty.

"The combination of existing operations, brand partnerships and the strategic foresight of this management team give us great confidence that, with Tidal Royalty's capital, they will expand their market share.

"California is one of the largest cannabis markets in the world and we are excited by the prospect of adding the strength of this group to our portfolio."

The letter of intent means Tidal Royalty will provide the Palm Desert Cannabis Company with US$5mln for the buildout of the facility.

Palm Desert Cannabis Company will pay Tidal Royalty the equivalent of 10% of all net sales generated by operations in California initially and, once certain payments thresholds are met, 5% in perpetuity thereafter, along with 2mln share purchase options, representing around 5% of the share capital.

The LOI (letter of intent) includes an exclusivity period during which the Palm Desert Cannabis Company cannot negotiate with any other party.

So far, Tidal Royalty has struck royalty transactions relating to operators licensed in Florida and Arizona, which operators intend to pursue licences in Massachusetts, and has entered into letters of intent with licensed cannabis operators in California, Nevada and Illinois.

It says it's also mulling further opportunities across the United States, including in New York, Ohio, Pennsylvania, Texas and Michigan.

Shares lost 2.98% to US$0.4075.

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Thu, 06 Sep 2018 10:23:00 -0400 https://ca.proactiveinvestors.com/companies/news/204361/tidal-royalty-to-provide-us5mln-in-financing-for-new-pot-facility-in-palm-desert-california-204361.html
<![CDATA[News - Tidal Royalty set to finance operator Diem's expansion into Massachusetts ]]> https://ca.proactiveinvestors.com/companies/news/204156/tidal-royalty-set-to-finance-operator-diem-s-expansion-into-massachusetts-204156.html Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF) has inked a definitive agreement to provide Diem, a  licensed cannabis operator in Oregon, with the financing of up to US$12.5mln over the next three years.

Diem was founded by executives with Silicon Valley and Wall Street experience and has cultivation, retail and home delivery operations in Salem and Portland.

"We spent an incredible amount of time and effort in our diligence as we do for all of our deals and are more impressed than ever with the calibre of operators that we are backing," Paul Rosen, Tidal Royalty's CEO and chairman, told investors.

READ: Tidal Royalty evaluating slew of opportunities in US cannabis market

"Diem has large-scale ambitions and continues to build out the capabilities to realize them. We expect that they will be a major player in the U.S. cannabis industry."

The funds will be used to develop and operate a large-scale cultivation and processing facility and up to four dispensaries in Massachusetts.

The Massachusetts adult-use marijuana market has the potential to be one of the most prosperous in the nation, according to Marijuana Business Daily, Tidal Royalty noted.

Diem is already exploring opportunities in the state. After building its development team it has already secured a number of locations in anticipation of applying for operating licences.

It also plans further expansion in additional states, and the parties are exploring opportunities to work together on such plans.

Tidal Royalty has struck deals now with operators licensed in Florida and Arizona and has entered into letters of intent with licensed cannabis operators in California, Nevada, and Illinois.

WATCH: Tidal Royalty to fund Illinois cannabis company with up to US$41mln

In addition, Tidal Royalty is in the process of evaluating multiple additional opportunities across the US, including in New York, Ohio, Pennsylvania, Texas and Michigan.

The group provides capital to help grow licensed US cannabis firms in exchange for receiving a percentage of future top-line revenues.

Tidal Royalty is interested in cultivators, processors and manufacturers that can deliver above-market returns.

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Tue, 04 Sep 2018 10:00:00 -0400 https://ca.proactiveinvestors.com/companies/news/204156/tidal-royalty-set-to-finance-operator-diem-s-expansion-into-massachusetts-204156.html
<![CDATA[News - Tidal Royalty evaluating slew of opportunities in US cannabis market ]]> https://ca.proactiveinvestors.com/companies/news/203710/tidal-royalty-evaluating-slew-of-opportunities-in-us-cannabis-market-203710.html As the legalisation of medical and recreational marijuana use expands across America, so do the number of businesses entering this emerging market.

But these companies need the financing to support their plans and that’s where Tidal Royal Corp (CSE:RLTY) comes in. The group provides capital to help grow licenced US cannabis firms in exchange for receiving a percentage of future top-line revenues. Tidal Royalty is interested in cultivators, processors and manufacturers that can deliver above-market returns.

The company was founded last August by experienced cannabis industry executives, including chief executive and chairman Paul Rosen. Rosen is the co-founder of Canadian investment firm PharmaCan Capital Corp, now called The Cronos Group, and has become one of the most active and diversified investors in the nation. With the Canadian market reaching maturity, he is now turning his attention to the US with Tidal Royalty, which has had a positive response from investors since its inception.

“It’s been overwhelmingly positive, we bring a lot of attractive features for an investor that’s interested in penetrating or entering the US cannabis industry,” Rosen said.

“One is we’re a proven team.  Myself and my co-executives have been responsible for some of the most recognised assets in the Canadian cannabis industry and Canada really has taken the lead on innovative strategies around financing cannabis. 

“The product is very competitive and for operators in cannabis that don’t want to take on additional shareholders but require that expansion capital we’re really an elegant fit. “

Rosen’s aim is to duplicate the out-sized returns he has been able to achieve in Canada.

The green stuff has been legalized for recreational use in nine US states and Washington DC. Medical cannabis is legal in 30 states and the District of Columbia. 

According to a report from Arcview Market Research and BDS Analytics, legal marijuana sales rose 33% year-on-year to US$9.7bn in 2017.

Tidal Royalty, which started trading on the Canadian Securities exchange in June, expects alcohol, tobacco and pharmaceutical companies to jump on the band wagon.

The group has had discussions with a number of prospect companies across the US and has entered into six separate letters of intent (LOI) to date.

“We’ve developed a phenomenal pipeline of opportunity across the entire value chain of US cannabis,” Rosen said.

Letters of intent

Most recently, the company secured an LOI from CannaRoyalty Corp (CSE:CRZ, OTCMKTS:CNNRF) to buy Alternative Medical Enterprises LLC for C$8mln in a combined cash and stock deal.

AltMed focuses on bringing pharmaceutical industry precision to the development, production and dispensing of medical cannabinoids. The Sarasota-based medical cannabis company runs cannabis dispensaries in Florida and Arizona, and has an application pending for the state of Ohio.

Tidal Royalty will acquire CannaRoyalty’s 6.14% ownership stake in AltMed and a 3.5% royalty on global net sales of AltMed’s branded MüV™ line of transdermal patches, metered dose inhalers, and patent-pending transdermal gels.

Tidal Royalty has also entered into an LOI with Illinois Cannabis Company to provide the licenced operator with up to US$41mln in financing.

The Illinois firm will use the capital to expand its operations and make strategic acquisitions and Tidal Royalty will receive 15% of net sales royalty on all the cannabis operator’s operations in the states in perpetuity.

Tidal Royalty sees significant opportunity in Illinois – the sixth most populous state in the US – where the medical marijuana market is expected to grow to US$150mln by the end of 2018, according to Marijuana Business Daily.

The group also sees a great opportunity in California, where it has entered into an LOI with Monterey Cannabis Company.

California has a population of 40 million and Tidal Royalty thinks it has the potential to become one of the largest adult-use marijuana markets in the world.

The state’s legalised marijuana market is expected to grow to US$3bn by the end of the year, according to Marijuana Business Daily.

Tidal Royalty will provide Monterey Cannabis Company up to US$15mln in financing to expand its cultivation capacity and to establish a new processing facility in California.  In return, Tidal Royalty will receive 15% of all future net sales generated by operations in California.

Another LOI is with an established Oregon licensed operator to finance the company's expansion into the Massachusetts market.

Under the LOI, Tidal Royalty will provide the Oregon Cannabis Company with up to US$12.5mln in exchange for 15% of all net sales generated by operations in Massachusetts.

Tidal Royalty has also entered into an LOI with Vitalis Extraction Technology, a Canadian extraction equipment provider. Tidal Royalty will give Vitalis up to US$5mln to fund extraction equipment purchases by US licensed operators. Vitalis customers that use the funding will pay Tidal Royalty a cash royalty based on the number of grams of cannabis oil produced.

The sixth LOI is with Nevada Cannabis Company, an operator based in Las Vegas, to provide up to US$15mln in exchange for 15% of net sales generated by all operations in the state.

Further opportunities

Tidal Royalty is currently evaluating various additional opportunities across the US, including in Florida, New York, Arizona, Ohio and Michigan.

“We are really investigating carefully all 31 states that have either a medical or recreational programme,” Rosen said.

“I definitely have biases as to why I might prefer Florida or Illinois to say Colorado and this relates to supply constraints, quality of operations and size of market. But really we follow great management so we will investigate and try to enter into deal flow anywhere where a good operator exists with a cannabis licence.” 

To support its royalty financings, Tidal Royalty has raised about $42mln to date by way of private placements.

Tidal Royalty makes shares available to more investors

In another major development for the company, its common shares on the OTC Market became eligible for the Depository Trust Company in August.

The firm said the electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for investors.

"This status will make the process of trading our stock in the United States much easier,” Rosen said.

"We expect that this will make our shares available to a larger percentage of the investment market, which should improve the liquidity of our shares and therefore benefit Tidal Royalty and our shareholders."

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Tue, 28 Aug 2018 09:03:00 -0400 https://ca.proactiveinvestors.com/companies/news/203710/tidal-royalty-evaluating-slew-of-opportunities-in-us-cannabis-market-203710.html
<![CDATA[News - Tidal Royalty to buy Altmed from CannaRoyalty Corp in a C$8mln cash and royalty deal ]]> https://ca.proactiveinvestors.com/companies/news/203632/tidal-royalty-to-buy-altmed-from-cannaroyalty-corp-in-a-c8mln-cash-and-royalty-deal-203632.html Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF) announced Monday that it had secured a letter of intent (LOI) from CannaRoyalty Corp (CSE:CRZ, OTCMKTS:CNNRF) to buy Alternative Medical Enterprises LLC for C$8mln in a combined cash and stock deal.

Tidal Royalty provides cannabis companies in the US with financing in exchange for a share of future revenues. It has also entered into LOIs in California, Nevada and Massachusetts and is evaluating further opportunities in Florida, New York, Arizona, Ohio and Michigan.

Saratosa-based medical cannabis company AltMed runs cannabis dispensaries in Florida and Arizona. It also has an application pending for the state of Ohio. AltMed focuses on bringing pharmaceutical industry precision to the development, production and dispensing of medical cannabinoids.

READ: Tidal Royalty enters into letter of intent to finance Illinois cannabis operator's expansion

Shares of Tidal Royalty were down 2.93% to US$0.46 in the US OTC market, while they fell 5.15% to US$0.46 on the Canadian Securities Exchange. Meanwhile, CannaRoyalty stock shot up 8.48% to US$4.25 in the OTC market, while it ran up over 11% to US$5.61 on the CSE.

With the deal, Tidal Royal will acquire CannaRoyalty’s 6.14% ownership stake in AltMed and a 3.5% royalty on global net sales of AltMed’s branded MüV™ line of transdermal patches, metered dose inhalers, and patent-pending transdermal gels.

"We've been following AltMed for quite some time now and have watched them expand their footprint very strategically and methodically. They are led by an extremely entrepreneurial and capable management team and we feel that they are positioned to be a leading player in the US industry. We are excited to be in this position and look forward to finding additional ways that we can support their growth plans," said Tidal Royalty CEO Paul Rosen.

"This transaction was made possible by our strong synergistic relationship with CannaRoyalty, a company whom we have a great deal of respect and admiration for. We are confident that our companies will identify additional mutually-strategic opportunities in the emerging US regulated cannabis industry," he added.

Tidal Royalty said the deal would close after a “satisfactory completion of due diligence,” and corporate and regulatory approvals.

READ: CannaRoyalty posts strong 2Q earnings and revenue in focusing on California's cannabis market

"The sale of our equity stake and royalty in AltMed advances our stated strategy of realizing value for shareholders on assets that are deemed non-core to our business,” said CannaRoyalty CEO Marc Lustig.

“The substantial gains from our successful investment in AltMed will provide CannaRoyalty with capital to continue to expand its distribution and brand network in the California market, while offering CannaRoyalty shareholders a significant return on investment," said Lustig. "We were early to identify the long-term potential in AltMed and MuV as vital players in the North American cannabis value chain and are confident that the businesses will be valuable additions to Tidal Royalty's diverse portfolio. As CannaRoyalty continues to grow and build a solid presence in California, we look forward to partnering with the experienced team at Tidal Royalty."  

CannaRoyalty is based in Ottawa, Canada. It is a North American cannabis consumer product company focused on building a distribution business in California, the world's largest regulated cannabis market.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

 

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Mon, 27 Aug 2018 09:58:00 -0400 https://ca.proactiveinvestors.com/companies/news/203632/tidal-royalty-to-buy-altmed-from-cannaroyalty-corp-in-a-c8mln-cash-and-royalty-deal-203632.html
<![CDATA[Media files - Tidal Royalty to fund Illinois cannabis company with up to US$41mln ]]> https://ca.proactiveinvestors.com/companies/stocktube/10224/tidal-royalty-to-fund-illinois-cannabis-company-with-up-to-us41mln-10224.html Thu, 23 Aug 2018 12:28:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10224/tidal-royalty-to-fund-illinois-cannabis-company-with-up-to-us41mln-10224.html <![CDATA[Media files - CryptoCann™ Report: Crypto investor sues AT&T for US$224mln over loss; Tidal Royalty inks deal with Illinois Cannabis Company ]]> https://ca.proactiveinvestors.com/companies/stocktube/10143/cryptocann-report-crypto-investor-sues-att-for-us224mln-over-loss-tidal-royalty-inks-deal-with-illinois-cannabis-company-10143.html Wed, 15 Aug 2018 15:51:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10143/cryptocann-report-crypto-investor-sues-att-for-us224mln-over-loss-tidal-royalty-inks-deal-with-illinois-cannabis-company-10143.html <![CDATA[News - CryptoCann™ Report: Crypto investor sues AT&T for US$224mln over loss; Tidal Royalty inks deal with Illinois Cannabis Company ]]> https://ca.proactiveinvestors.com/companies/news/202989/cryptocann-report-crypto-investor-sues-att-for-us224mln-over-loss-tidal-royalty-inks-deal-with-illinois-cannabis-company-202989.html Blockchain start-up Axioni raised US$32mln in its Series B round of funding thanks to some big-name banks and other high-profile investors.

Investors in the enterprise-focused start-up include The Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Citigroup Inc (NYSE:C), Andreessen Horowitz and as well as other venture capitalists and Silicon Valley investors, as per a Forbes report.

“These are very strategic investors,” said Axioni CEO Greg Schvey in an interview with Forbes. “We have deep strategic and commercial engagements with most of them.”

Goldman Sachs, J.P. Morgan and Citigroup have tested the blockchain platform Axcore for trading equity derivatives.

READ: Bitcoin is just like gold, they’re both suffering from dollar strength

Axioni has raised a total of US$55mln in funding and intends to put the capital towards hiring more employees and helping clients to integrate into the platforms.

In cryptocurrency news, a crypto investor is suing his cellphone provider after losing US$24mln in digital currency.

AT&T Inc (NYSE:T) customer Michael Terpin has filed a complaint in the US District Court in Los Angeles, claiming that the wireless carrier willingly cooperated with the hacker who stole from him, according to a CNBC report.

Terpin, the co-founder of an angel group for Bitcoin investors and a digital currency fund, alleged that the thief was able to get his phone number from an “insider cooperating with the hacker” without an AT&T employee following the proper safety protocol, such as asking for ID or a password.

"What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner," according to the complaint.

He is seeking US$200mln in punitive damages and US$24mln of compensatory damages from AT&T.

The Cann' Report

Canadian financing company Tidal Royalty Corp (CSE:RLTY, OTC:TDRYF) has entered into a letter of intent with Illinois Cannabis Company, expanding its reach in the US market.

Tidal Royalty will provide the cannabis company with financing in exchange for 15% of net sales royalty on its Illinois operations, including cultivation and dispensary sales.

“Between the near-term cash flow generated by their existing operations, management's vision and drive to grow their market share, and the ability to accelerate their growth with Tidal Royalty capital, we feel this is going to be the beginning of a great long-term relationship between our companies," said Tidal Royalty CEO Paul Rosen.

Tidal Royalty has also entered into LOIs in other cannabis-friendly states including California, Nevada and Massachusetts.

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

Alcohol companies have been concerned about marijuana encroaching on its business as legalization spreads.

Constellation Brands Inc (NYSE:STZ) is following the old adage,  taking the “if you can’t beat ‘em, join ‘em” approach.

The maker of Corona beer upped its share in the cannabis market, investing US$4bn in Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED).

Constellation’s latest investment brings its stake in the company to 38%. The company previously held a 9.9% stake in October 2017 with the option for future investments.

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Wed, 15 Aug 2018 13:45:00 -0400 https://ca.proactiveinvestors.com/companies/news/202989/cryptocann-report-crypto-investor-sues-att-for-us224mln-over-loss-tidal-royalty-inks-deal-with-illinois-cannabis-company-202989.html
<![CDATA[News - Tidal Royalty enters into letter of intent to finance Illinois cannabis operator's expansion ]]> https://ca.proactiveinvestors.com/companies/news/202966/tidal-royalty-enters-into-letter-of-intent-to-finance-illinois-cannabis-operator-s-expansion-202966.html Tidal Royalty Corp. (CSE:RLTY) (OTC:TDRYF) has secured a letter of intent (LOI) with Illinois Cannabis Company to provide the licenced operator with up to US$41mln in financing.

The group, which provides cannabis companies in the US with financing in exchange for a share of future revenues, said the Illinois firm will use the funds to expand its operations and make strategic acquisitions.

In return, Tidal Royalty will receive 15% of net sales royalty on all the cannabis operator’s Illinois operations, including existing cultivation and dispensary sales as well as incremental sales generated by the planned expansion.

Tidal Royalty will also purchase the Illinois Cannabis Company's common shares at an agreed-upon valuation.

READ: Tidal Royalty Corp shares eligible for DTC, which should improve liquidity

"As Tidal Royalty looks forward to where the U.S. cannabis market is headed, we are excited to broaden our investment strategy," said chief executive and chairman Paul Rosen.

"We are very excited to count the Illinois Cannabis Company among our portfolio constituents. Between the near-term cash flow generated by their existing operations, management's vision and drive to grow their market share, and the ability to accelerate their growth with Tidal Royalty capital, we feel this is going to be the beginning of a great long-term relationship between our companies."

The group sees significant opportunity in Illinois as the sixth most populous state in the US with nearly 13mln residents. The medical market in the state expected to grow to US$150mln by the end of 2018, according to Marijuana Business Daily.

Tidal Royalty has also entered into LOIs in California, Nevada and Massachusetts and is evaluating further opportunities in Florida, New York, Arizona, Ohio and Michigan.

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Wed, 15 Aug 2018 08:48:00 -0400 https://ca.proactiveinvestors.com/companies/news/202966/tidal-royalty-enters-into-letter-of-intent-to-finance-illinois-cannabis-operator-s-expansion-202966.html
<![CDATA[News - Tidal Royalty Corp shares eligible for DTC, which should improve liquidity ]]> https://ca.proactiveinvestors.com/companies/news/202759/tidal-royalty-corp-shares-eligible-for-dtc-which-should-improve-liquidity-202759.html Tidal Royalty Corp (CSE:RLTY.U, OTC:TDRYF), which provides royalty financing to US cannabis operators,  said its shares on OTC were now eligible for The Depository Trust Company (DTC).

The company's common shares are now fully DTC eligible and trade under the symbol TDRYF on the OTC Markets, it said.

This electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for investors, the firm added.

"We are very pleased to have obtained DTC eligibility," said chief executive Paul Rosen.

"This status will make the process of trading our stock in the United States much easier.

"We expect that this will make our shares available to a larger percentage of the investment market, which should improve the liquidity of our shares and therefore benefit Tidal Royalty and our shareholders."

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Mon, 13 Aug 2018 08:31:00 -0400 https://ca.proactiveinvestors.com/companies/news/202759/tidal-royalty-corp-shares-eligible-for-dtc-which-should-improve-liquidity-202759.html