Nuu Cannabis Company Starting on the TSX-V
Nuuvera Corp will begin trading Tuesday January 9th on the TSX-V under the Ticker “NUU”.
Nuuvera wants to sell cannabis to the entire world. The company is based in Canada but already have worldwide divisions / partnerships in Germany, Israel, Malta and Italy—with more coming. As a Licensed Dealer, Nuuvera has the ability to import and export cannabis extracts and derivative products.
Germany: Currently has a partnership with Hemp producers, Applying for a cannabis import and export license, Completing land and facility purchase.
Italy: Currently only one active cultivation license (held by the government) and supply far exceeds demand, and the excess demand must come from imports. Nuuvera entered into a non-binding LOI to acquire one of the seven entities licences by the government to import and sell cannabis.
Malta: LOI in place for license to import / export via a JV
Israel: In process of applying for a production license and building a facility in Israel for testing, extraction, purification, R&D and product development to serve Israel and other European markets.
The executive team is multi-cultural, multi-lingual, and multi-faceted with a plan to bring cannabis to any international market that allows legalized marijuana sale.
Aside from having an international growth strategy, Nuuvera differentiates itself from other competitors by offering a secondary revenue stream: cannabis derivatives.
On August 1, 2017, Nuuvera acquired 51% of Avanti Rx Analytics Inc. (ARA). Currently, the business of Avanti is the extraction, testing and analysis of cannabis and cannabis derivative products on behalf of third-party Licensed Producers. However, as a result of this acquisition, Avanti will shift its business model and utilize the intellectual property it has developed to produce Nuuvera cannabis products including oils and other derivatives.
These finished products will then be either sold to the provincial agencies by Nuuvera, or be sold as “white label” products to third-party customers including other Licensed Producers.
Effectively the strategy of Avanti has evolved from selling services to selling products, at a higher projected gross profit. The primary focus will be on the recreational market upon legalization with the medicinal use market being a secondary component of its business.
Aphria global strategic partnership
Nuuvera has a global partnership with Aphria to expand production across the globe, including Europe, Israel and Latin America.
As part of the partnership, the parties entered into five separate and distinct commercial transactions:
- Aphria invested $2M in Nuuvera common share offering;
- Aphria entered into a supply agreement with Nuuvera to supply annual requirements of 1,500 kgs, growing to 17,000 kgs when Aphria completes its four-part expansion plan in 2018
- Aphria will sell 100 of the 200 acres of land the Company owns in Ontario to Nuuvera, in exchange for a cash payment of $4 million
- Aphria will provide consulting services (8% consulting fee) to Nuuvera on the design and build of a 1 million square foot state-of-the-art greenhouse on the property.
- Aphria entered into an operational services agreement with Nuuvera to operate the Mersea Property in exchange for a fee of $0.10 per gram of cannabis harvested in the facility
Based on Aphria’s current expected yield from its 1 million square feet of greenhouse, it is anticipated that the operational services agreement will yield an annual payment of more than $10 million per year to Aphria, once Nuuvera’s greenhouse is fully built out.
Based on Aphria’s current production costs, it is anticipated that Nuuvera will, like Aphria, be one of Canada’s lowest cost producers.
Cultivation LP (Pending)
Through its subsidiaries, ARA and Avalon Pharmaceutical Inc. Nuuvera holds a Narcotics Dealer License (GMP) under the Narcotic Control Regulations and Office of Controlled Substances.
Avalon is in the final stage to become a Licensed Producer under the ACMPR. Health Canada has already granted Avalon permission to proceed with the construction of its cultivation facility located in Brampton, Ontario.
Construction is expected to be completed in the second quarter of 2018 with yearly production capacity of approximately 864 kg/year (72 kg/month x 12 months) on the basis of 600 mature plants grown and harvested on an eight week cycle.
Lorne Abony (Wikipedia Page) is currently the president, CEO, and director of Nuuvera. He is also the CEO and majority shareholder (18%) in London Stock Exchange listed company FastForward (More on them below). He co-founded FUN Technologies which was AIM and TSX listed, and became the youngest CEO of a TSX listed company. He grew the company until it was successfully acquired for $484 Million. Mr. Abony has a solid background in raising capital (over $1.3 Billion USD) and was the founder and CEO of a number of successful ventures along his career.
He personally acquired over 7,000,000 common shares & options for another 2,000,000 through some of his holding companies. He has definitely a lot of skin in the game and wants to see this one win. The new Chairman of the Board (Ronald Schmeichel) has acquired over 11,000,000 shares. The 2 of them combined own over 22% of the shares outstanding.
Lorne’s company, FastFoward invested over 1/3 of their Portfolio’s money into Nuuvera ($700,000 CAD) in the early $1 per share round and own 3,000,000 of the currently outstanding 80,000,000 shares (after their latest $20M raise). The next round of Nuuvera financing was priced at $2.50 and was announced in mid November.
Some of the smarter FastForward Shareholder were able to make a quick profit by buying in mid Nov and waiting until the new NAV was shown on their next financial statements at the end of December, much like our coverage on Rockshield Capital (RKS) and Quinsam Capital (QCA) you need to do your research.
Nuuvera recently issued a NR that they have entered into an agreement with Arlene Dickinson’s marketing, branding and communications firm, Venture Communications. Venture was issued 200,000 common shares at a deemed price of $2.50 per share.
More details can be found on Nuuvera on the link below
This company has a solid management team and are building out a global business.
They have a Narcotics Dealers License and a Pending LP licence in Canada.
Partnered with Aphria to expand globally and become a low cost producer.
With the Private Placement price set around $2.50 / share and 80,000,000 shares o/s gives them a Market Cap of ~$200M.
Trading beginning on Tuesday Jan 9th, watch it closely and pick your time wisely should you wish to enter.
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