Heritage Cannabis Places First Order with IntelGenx for CBD Filmstrips in Canada and Australia

Heritage Cannabis Holdings Corp. today announced that it has executed a definitive supply agreement with IntelGenx Corp. for the manufacturing and supply of filmstrip products containing 10 mg of CBD using IntelGenx’s VersaFilm ® technology for the Canadian and Australian markets. Under the Agreement, Heritage has placed its first purchase order with IntelGenx for 50,000 CBD Filmstrips that will be sold in select …

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced that it has executed a definitive supply agreement (the “Agreement”) with IntelGenx Corp. (TSX-V:IGX) (OTCQB:IGXT) (“IntelGenx”) for the manufacturing and supply of filmstrip products containing 10 mg of CBD using IntelGenx’s VersaFilm ® technology (“CBD Filmstrips”) for the Canadian and Australian markets.

Under the Agreement, Heritage has placed its first purchase order with IntelGenx for 50,000 CBD Filmstrips that will be sold in select provincial retailers and the direct-to-consumer medical channel in Canada. The CBD Filmstrips will be formulated with both CBD and CBDA as CBDA has shown more potent activity at 5-HT1A (serotonin) receptors in published studies. The CBD Filmstrips, which dissolve orally, are meant to enable better and faster absorption than oral tinctures and capsules. IntelGenx expects to make its first shipment of product to Heritage in the second quarter of 2021.

Pursuant to the Agreement, Heritage will supply CBD material for IntelGenx’s filmstrip manufacture and supply in Canada and Australia on a non- and semi-exclusive basis, respectively. The Agreement also contemplates an option on future co-development of CBD and THC filmstrips using proprietary technology from both companies.

The CBD Filmstrips will be produced at IntelGenx’s manufacturing facility under Canadian GPP conditions and registered as a product for sale with Health Canada as a cannabis product governed by the Cannabis Act and with the Australian Department of Health’s Therapeutic Goods Administration as a medicinal cannabis product governed by the Narcotic Drugs Act.

Umar Syed, Heritage’s President of the Medical and International Division, commented, “Rapidly dissolving CBD Filmstrips provide tangible benefits for medical cannabis consumers by providing a more discreet and convenient administration method. As we continue to build a wide spectrum of medical cannabis products that offer both traditional and newer delivery platforms, we are excited to be at the stage where we will be distributing CBD Filmstrips in Canada and Australia.”

Dr. Horst G. Zerbe, CEO of IntelGenx, commented, “We believe this first-ever purchase order for commercial quantities of an oral thin film product based on our VersaFilm® technology represents a value inflection point for our Company. We are looking forward to building a strong partnership with Heritage, which shares our commitment to making innovative and high-quality oral thin film products available to medical cannabis consumers.”

About Heritage Cannabis Holdings Corp.

Heritage is a vertically integrated cannabis provider that currently has two Health Canada approved licensed producers, through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp. both regulated under the Cannabis Act Regulations. Working under these two licenses, Heritage has two additional subsidiaries, Purefarma Solutions, which provides extraction services, and a Medical Services Division which is focused on cannabis based medical solutions. In the U.S., Heritage operates under Opticann Inc., a Colorado based oral and topical cannabinoid company with the rights to exclusively sell CBD and CBG products made with the patented VESIsorb® drug delivery system for optimized absorption and stability. As the parent company, Heritage is focused on providing the resources for its subsidiaries to advance their products or services to compete both domestically and internationally.

ON BEHALF OF THE BOARD OF DIRECTORS OF Heritage Cannabis HOLDINGS CORP.

“Clint Sharples”

Clint Sharples

CEO

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Media:
Corey Herscu for Heritage Cannabis
corey@verbfactory.com
Tel: 416-300-3030

Or

Investors:
Kelly Castledine
Tel: 647-660-2560
kcastledine@heritagecann.com

News Provided by Business Wire via QuoteMedia

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Asterion Cannabis Chairman and CEO Stephen Van Deventer says that the government’s support for the company’s project has enabled a fast approval process.

Asterion Cannabis Chairman and CEO Stephen Van Deventer says the special project status granted by the Australian government has allowed the company to fast-track its move into the Australian medical cannabis market.

In November 2019, Asterion received its development application approval for 4.3 million square feet of greenhouse cultivation space in Toowoomba, Australia. Van Deventer says that the speedy application process has been possible for the company in part thanks to the major project status, which has been granted to the company by the Australian government. Major project status means that Asterion’s development has been deemed to be of national importance to the people of Australia.

Asterion is the only agricultural cannabis producer to have been granted major project status. Van Deventer says that the Australian government’s support for Asterion’s project is due to the company’s development of pharmaceutical medical cannabis treatments, giving Australian patients a valuable alternative to smoking cannabis.

Below is a transcript of our interview with Asterion Cannabis Chairman and CEO Stephen Van Deventer. It has been edited for clarity and brevity.

Investing News Network: Please provide our investor audience with an overview of Asterion and its upcoming initial public offering (IPO).

Asterion Cannabis Chairman and CEO Stephen Van Deventer: Asterion is targeting to IPO in quarter one of 2020. However, market conditions pending, because we don’t want to IPO into a weak market.

INN: Please give us an overview of Asterion’s recent business operations.

SVD: With Asterion in Australia, we’ve been fortunate to have finished all of our engineering for our facility. It’s going to be 4.3 million square feet in four different greenhouse modules, almost 1.1 million square feet each. That’s the cultivation. Then there’s going to be another 1.2 million square feet of administration and auxiliary buildings for extractions and processing, packaging, etc. So, it’s a total of 5.5 million square feet. We launched the application with the Toowoomba Regional Council and in early November we received our development application approval. That means that the property that we have and what we are going to build has all been approved so we can develop what we said we’re going to develop.

On top of that, we’ve recently filed our Operational Works permit, which means that we can start digging into the earth and laying all the water pipelines and all the infrastructure for power, etc. We’ve been told to expect that we should have an operational work permit by mid-December.

As for our cannabis licenses, we’ve applied for the whole suite of them. We have cultivation, sales, research and development, import and export and extraction processing. We’ve completed all the questions and answers, they were completed two weeks ago. We were told there are no more questions and our cannabis licenses will be imminent. We expect to have our cannabis licenses any day. Once we have those, we’ll start working to begin purchasing cannabis from other licensed producers (LPs) to import into Australia to start servicing the Australian market, so we can start building our medical patient base while we’re under construction. By the time we come online, we’ll have a solid patient base to be able to deliver the product to.

What has helped us fast track getting this all done has been getting major project status. In Australia, only 14 other companies have major project status. We’re the 15th. We’re the only agricultural cannabis company ever to receive major project status. That means that it is of national importance to the country to get this project done. It eliminates all red tape and gets us the full support of the government in every agency. From here, we’re potentially looking to break ground around middle-to-late January of 2020.

INN: Please explain the significance of the development approval permit and what this means for Asterion moving forward.

SVD: Well, the development is key because when you apply for a development permit, there are multiple different ways to get these permits. You have to supply all the engineering, showing the heights of the building, what the buildings are going to look like, the footprint, etc., so, when you talk about 5.5 million square feet you’re not just sending them a generic plan. It’s a very detailed plan, we spent millions of dollars on engineering to get it done.

Because of our relationships with government and businessmen in Australia, especially John Wagner, the chairman of the Wagner Group, we were able to get this application as a core application rather than as a public consultation. A public consultation would have taken up to two years. We will manage to fast-track the process to six months because we did a core application. This eliminates us having to go to public hearings.

INN: Why did Asterion decide to acquire Sol-Gel and its intellectual property?

SVD: Asterion acquired 51 percent of Sol-Gel. The Australian government really likes the Sol-Gel because they would rather see patients take cannabis medicine in pill form, as a gel cap, transdermal or a nasal spray or sublingual tablet rather than smoking cannabis. With Asterion taking the major position of 51 percent ownership, now we can use the major project status to help accelerate that through the process for approvals.

INN: How has Canopy’s divestment from the Australian cannabis market altered the industry landscape?

SVD: It hasn’t altered it at all, actually. Australia is a huge market. There’s a lot of untapped need for product. And Canopy’s divestment wasn’t because of the landscape. Canopy’s divestment was the result of some major losses of hundreds of millions that they’ve taken each quarter. They’re going to start focusing on the operations that they actually have up and running now and get them profitable because they cannot continue to divest money like that.

INN: Which international markets are Asterion targeting and why those markets in particular?

SVD: So, we’re targeting the Australian market primarily in the beginning. Then, we’re looking through the whole Asia gateway from Australia, because the relationship between Australia and the Asia gateway is very important.

We’ve seen the Asian countries start to open up to cannabis. Thailand, which we never thought would ever allow medical cannabis or cannabis period, has allowed it. Asian markets are opening up fast, so for us, it’s good to have a gateway to the Asian countries.

However, we’re also targeting the European countries because of the premiums over there. I’m currently in negotiations with a major European country, one with around 45 to 50 million people in population, to get a joint venture potentially put together where we would distribute our products in that country for the medical cannabis market there.

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Australia’s cannabis extract market is growing its presence in the country’s medicinal cannabis industry.

The high-barrier to entry in Australia's cannabis extract market is developing a foothold in the country's medicinal cannabis sector and is a growing opportunity for investment.

Australia's cannabis market is still in the early stages of growth, having just legalized cannabis for medical use in February 2016. Similar to Canada's early-stage medical cannabis landscape, Australian lawmakers are still working through the best approach for implementing and improving the regulatory framework and licensing system.

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Highlights: Peak Processing Solutions subsidiary of Althea Group Holdings has entered into agreements with BBCCC, Inc., The Boston Beer Company and WeedMD Rx Inc., a subsidiary of Entourage Health Corp. Under the product development agreement, Peak will provide research and development services including laboratory support and the testing of various product formulations and recipes, for the new line of BBC products …

Highlights:

  • Peak Processing Solutions (Peak), subsidiary of Althea Group Holdings (ASX: AGH) (Althea) has entered into agreements with BBCCC, Inc., The Boston Beer Company (NYSE: SAM) (‘BBC’), and WeedMD Rx Inc., a subsidiary of Entourage Health Corp. (‘Entourage’)
  • Under the product development agreement, Peak will provide research and development services including laboratory support and the testing of various product formulations and recipes, for the new line of BBC products
  • BBC will provide Peak with funding of up to USD$2m for capital improvements associated with the development project. In addition, Peak will receive a minimum of USD$285,000 for each year of the Term of the agreement (totalling USD$1.42m )
  • Under the 5 year supply and manufacturing agreement, Peak is the exclusive manufacturer of all cannabis beverages produced or sold in Canada under BBC branding, for the term of the agreement
  • Entourage will be responsible for distribution and sales of the cannabis-infused beverages in Canada

Peak Processing Solutions, a subsidiary of Althea Group Holdings Limited (ASX: AGH) (‘Peak’ or ‘the Company’) is a leading developer, manufacturer, and distributor of cannabis infused edible, topical, and concentrate products is pleased to announce that the Company has entered into agreements with WeedMD Rx Inc., a subsidiary of (TSXV: ENTG) (OTCQX: WDDMF) (‘Entourage’) and BBCCC, Inc., a subsidiary of the Boston Beer Company Inc. (NYSE: SAM) (‘BBC’).

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Australia took a stand against Facebook and Google earlier this year, and the move could have long-term implications for tech investors.

It was a ban that sent Australians wild and had the whole world watching.

Back in February, Facebook (NASDAQ:FB) stopped users in Australia from posting news in a week-long blackout, reacting to proposed legislation that would have forced the social media behemoth to pay publishers for content.

What prompted Facebook to "friend" Australia again, and what are the potential long-term implications of the squabble? Read on to learn what tech-focused investors in Australia should know about the situation.


Australia squares off against Facebook

On February 25 of this year, Australia's federal government passed the News Media and Digital Platforms Mandatory Bargaining Code. It was developed after extensive analysis by the Australian Competition and Consumer Commission, and is aimed at ensuring that news media businesses are fairly remunerated for their content.

It stipulates that digital platforms such as Facebook and Google (both named in the documentation) must pay news outlets whose content they feature — for example, if content is shared on Facebook or shows up in Google search results. The idea is that this will help to sustain journalism in Australia.

Unsurprisingly, Facebook and Google didn't react well to the code, which was first introduced in 2020.

Google didn't make any moves after it passed, but Facebook quickly made it impossible for Australian users to share news content, and pages for both local and international news organisations went blank — a major concern given the COVID-19 and wildfire concerns that were circulating at the time.

Australian Prime Minister Scott Morrison was scathing about Facebook's decision — which he ironically shared in a Facebook post — declaring the tech giant's actions "as arrogant as they were disappointing." He added, "These actions will only confirm the concerns that an increasing number of countries are expressing about the behaviour of BigTech companies who think they are bigger than governments and that the rules should not apply to them."

Despite strong feelings from both Australia and Facebook, the dispute was resolved fairly quickly, with the country agreeing to make four amendments to the legislation and Facebook restoring Australian's access to news.

Implications for Big Tech and news organisations

Both Australia and Facebook have claimed victory in the dispute, with a Facebook representative saying the company will be able to decide if news appears on the platform — meaning it won't automatically have to negotiate with any news businesses. Changes were also made to the arbitration process.

Tech experts have pointed out that larger news companies may ultimately benefit from the changes, but smaller ones could be pushed to the side. Major publishers that have struck agreements with tech giants, such as News Corp, Nine Entertainment (ASX:NEC,OTC Pink:NNMTF), Seven West Media (ASX:SWM) and Guardian Australia, may be able to increase their market share while smaller independent players lose out.

A business that is in full support of the laws is Microsoft (NASDAQ:MSFT). During the conflict, President Brad Smith came out loudly in favour of Australia's law, and advised that his company is willing to step up with search engine Bing should Google and/or Facebook pull out of the Australian market.

"In Australia, Prime Minister Scott Morrison has pushed forward with legislation two years in the making to redress the competitive imbalance between the tech sector and an independent press. The ideas are straightforward. Dominant tech properties like Facebook and Google will need to invest in transparency, including by explaining how they display news content," he said in a blog post.

"The United States should not object to a creative Australian proposal that strengthens democracy by requiring tech companies to support a free press. It should copy it instead."

Global reach and tech investor impact

Six months down the road from Australia's landmark legislation, it's tough to say what the long-term impact may be.

That said, market watchers do believe the country is part of a new precedent of forcing Big Tech into paying for journalism — something giants Facebook and Google are not used to.

Countries looking to pursue similar legislation include Canada, where Facebook agreed in May to pay 14 publishers to link to their articles on its COVID-19 and climate science pages, as well as other unspecified use cases. Canada is pursuing other avenues too. Meanwhile, in France, Google said it will pay publishers for news content after the country took up new EU copyright laws that make digital platforms liable for infringements.

For investors, the takeaway is perhaps that while companies like Facebook and Google may seem too big too fail, they too can fall subject to new regulations that can change how they do business. As nations around the world look to take back control from these mega companies, it's important to be aware of possible effects on their bottom lines.

Don't forget to follow @INN_Australia for real-time updates!

Securities Disclosure: I, Ronelle Richards, hold no direct investment interest in any company mentioned in this article.

Queensland is the 16th most attractive jurisdiction in the world, sneaking in above BC and the Yukon in Canada, and just behind New Mexico in the US.

Queensland is one of the top three Australian jurisdictions for copper.

While it's well behind South Australia, a behemoth in the country for resources and production, Queensland hosts some 12 percent of all known Australian copper deposits, level with its southern neighbour New South Wales.

A premier mining jurisdiction globally, Queensland is ranked third out of all Australian jurisdictions for mining investment attractiveness, according to the Fraser Institute. Globally, it's ranked as the 16th most attractive jurisdiction, sneaking in above BC and the Yukon in Canada, and just behind New Mexico in the US.


The state is renowned for its mining prowess in Australia, and is known as one of the resource states, with a large chunk of its economic heft coming from the mining industry and its operations across the vast state.

Overall, mining accounts for 11.7 percent of Queensland's economy, with coal and liquefied natural gas being the primary focus of output. Together, coal, gas and mineral exports account for over 80 percent of Queensland's exports, according to the state government.

Having said that, copper plays a large role, and Queensland is home to the second biggest producer of copper in Australia in the form of Glencore's (LSE:GLEN,OTC Pink:GLCNF) Mount Isa mining complex in the northwest of the state. There, Glencore owns and operates the Enterprise and X41 mines.

Aside from Mount Isa, Glencore owns the nearby Ernest Henry copper mine. Combined, Glencore's Queensland operations produced 138,800 tonnes of copper in 2020 — accounting for a little over 10 percent of the company's global copper production. Glencore isn't listed on the ASX, but can be found on the LSE.

Besides the Mount Isa complex itself, there's also a handful of other operational mines in the northwestern portion of the state, although most of them are privately owned, such as the Capricorn copper project, which is a joint venture between EMR Capital and Lighthouse Minerals; it secured itself "prescribed project" status in 2017.

Other privately owned projects include Round Oak's Barbara project (in care and maintenance), Chinese-backed CuDECO's Rockland copper project (mothballed, CuDECO in liquidation) and Chinova's Osborne mine — which was originally set up by Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF). There's also the Balcooma mine, which Royal Gold (NASDAQ:RGLD) has copper royalties on, and the privately owned Mount Cuthbert mine.

Many of the mentioned projects ran into trouble in 2020, with the COVID-19 pandemic limiting company operations.

All in all, Queensland has 13 operational copper mines, but as can be seen many are in private hands, making investment opportunities somewhat slim. Aside from previously mentioned Glencore operations, there's Red River Resources (ASX:RVR,OTC Pink:RRRDF), which owns the Thalanga operations near Charters Towers. Red River acquired Thalanga in 2014, and has been working to develop the legacy site back into a viable investment.

From the beginning of production in 2017, the operations have a lifespan of some 10 years, according to Red River, with further development and exploration options on the table. In its most recent quarterly report, Thalanga reported output of 3,086 tonnes of copper concentrate.

The remainder of the options on the table for investors are exploration focused, such as Copper Mountain Mining (ASX:C6C,OTC Pink:CPPMF) with interests in the Eva copper project, which is — unsurprisingly — in the northwest of the state, near the town of Cloncurry. Eva is in the development phase, with a feasibility study completed in early 2020 envisaging a 15 year mine life with an annual expected output of 106 million pounds of copper equivalent.

There's also Global Energy Metals (TSXV:GEMC,OTCQB:GBLEF), which like Glencore isn't on the ASX, but has interests in the Millenium cobalt-copper-gold project and others near Mount Isa — all in the exploration stage.

Aside from that, Strategic Energy Resources (ASX:SER) acquired exploration licences from Newcrest Mining (ASX:NCM,OTC Pink:NCMGF) in May 2021 for licences around Mount Isa, and Zenith Minerals (ASX:ZNC) is exploring the Develin Creek copper-zinc project. Zenith recently divested from another copper project, Flannagans, in June 2021 by selling its interests to a private company for $450,000.

Don't forget to follow us @INN_Australia for real-time updates!

Securities Disclosure: I, Scott Tibballs, currently hold no direct investment interest in any company mentioned in this article.

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