Debra Borchardt, Author at Green Market Report

Debra BorchardtDebra BorchardtSeptember 20, 2018
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8min360

Tilray Inc. (TLRY) has been somewhat a source of pride in the cannabis community, listing on the NASDAQ (NDAQ) with a successful Initial Public Offering (IPO). It’s a well-run respectable company with strong sales and an enviable portfolio of brands.

Two things have happened this week with Tilray. The stock went on a ridiculously crazy ride that even seasoned stock traders shook their heads at. A stock does not run up a chart like that without some sort of downside response. The second thing that happened was the Drug Enforcement Agency approval for Tilray to bring in medical marijuana for a scientific study.

Stock Moves

Cowen & Co. initiated coverage on Tilray’s stock with an outperform rating on August 13 and a target price of $34. This week the stock hit $300 at one point. Cowen analyst Vivien Azer defended her $34 price target at the time, assuming readers would question how she arrived at that number. No doubt Azer is probably wondering if she has to downgrade purely based on valuation.

Tilray began the week at $117, which was already a fairly rich valuation. It closed at $154 on Tuesday and then all hell broke loose. It opened at $233 on Wednesday, shot up to $300 at one point, dropped to $151 and then the trading was halted during the day. It eventually reopened and the stock closed at $214.

The wild gyrations had short sellers screaming now was the time to sell. Cannabis stocks were being compared to bitcoins and predictions of a dot-com bust were all over the internet. This is the part that hurts all cannabis stocks. According to S3 Partners, short sellers have lost $626 million since the start of August betting against cannabis stocks.

The company wrote, “Short sellers have been very active in the cannabis sector this year, with short interest climbing to $1.5 billion spread over 33 stocks and ETFs. This is a $458 million increase in short interest, +44%, since the end of the second quarter. Most of this increase was centered on increased short activity in Canopy Growth (CGC) and Tilray, which were up $514 million in just over three months.”

The cannabis industry tends to trade in lockstep. When one stock does well, they all tend to move higher. Similarly, when one struggles, they trade down in sympathy. Tilray’s seesaw moves hurt the industry as all of the companies get lumped into one. Comparing an industry with real product and real revenue to a digital cryptocurrency that doesn’t exist except in a computer is just well, dumb. It is making the comparison purely based on a percentage of increase in value. It makes a good headline for the short seller but is based on one metric alone.

There is no argument that the valuations have gotten ahead of themselves. Market values at 150x revenue? That’s not sustainable. Most of the industry insiders agree with this unless of course, their company stocks have stayed low. Then they stare wistfully at those unrealized gains.

Market stability is something everyone would prefer. Wild rides aren’t good for cannabis stocks.

DEA Just Says Yes
Tilray Inc. announced on Tuesday that the U.S. Drug Enforcement Administration (DEA) granted approval to import a cannabinoid study drug into the U.S. from Canada for a clinical trial at the University of California San Diego Center for Medicinal Cannabis Research. The agreement had been in the works for two years and plans on examining the safety, tolerability, and efficacy for a condition known as Essential Tremor.

According to the statement, “Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol (CBD) and tetrahydrocannabinol (THC).  It is expected to begin in early 2019 with financial support from Tilray and the International Essential Tremor Foundation.”

At first glance, this seems like a huge positive for the cannabis industry. Cross-border cannabis would make life so much easier for the companies that have operations in both countries. However, one wonders how this makes all the medical marijuana companies in the U.S. feel?

Rep. Matt Gaetz tweeted, “Unbelievable… gives approval to import compounds from Canada, while AG Sessions is sitting on 2 dozen+ applications from domestic manufacturers. What happened to “buy American, hire American”? The Florida Republican authored a bill that would require the granting of more cannabis cultivation licenses.  The licenses would be for more cannabis to be grown for research. The bill was approved but not voted on.

Considering the amount of cannabis that is grown in California and that the state has legalized medical marijuana for the last twenty years, UC San Diego couldn’t find a company in its home state to provide product for this study?

The Justice Department is handing out lifetime bans to people in Canada that work in the cannabis industry at the border, but then the DEA (which is housed under the DOJ) approves a cross-border transfer of cannabis? The same DEA that also considers cannabis to have no medicinal benefit?

Stability

The standard line in the investment community is that the market hates uncertainty. Roller coaster moves and short seller attacks hurt all cannabis companies. Even the big moves higher.

Stability in rules and regulations is also a plus. The industry has accepted that it can’t cross state lines, much less country borders. Then the DEA throws a wrench into this machine. It’s a like a kid yelling, “new rule, new rule.” Only, who does the new rule benefit? Will the Canadians similarly offer a U.S. cannabis company a chance to export its product for testing? Would the DEA allow that?

One thing can be certain in the cannabis industry, just when it thinks the rules are set – they change.


Debra BorchardtDebra BorchardtSeptember 18, 2018
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11min2190

The news that soda giant Coca-Cola (KO) could be considering an investment or partnership with Aurora Cannabis (ACBFF) rocked the cannabis industry. First, because Coke is the king of beverages and secondly because cannabis is been so taboo in the consumer products industry.

“Consumer research shows Coca-Cola’s interest in marijuana is well-founded,” said Jeff Stein, Vice President at Consumer Research Around Cannabis (CRAC), a U.S. consumer company that specializes in researching the general consumer market and more recently, targeting cannabis consumers. “Soft drink users are more inclined to cannabis use than the general market according to our ongoing studies,” he said. The online study covered 36,199 adults of all age groups regarding purchasing behavior.

CRAC said that the more a person drinks soda, the more likely they are to purchase cannabis. Stein said that about 15% of the general market says they would buy adult use cannabis over the next year, but people who drink soda at least five times a week or more, that number pops to 18%. A whopping one out of five people who drink ten or more sodas a week plan on buying adult use cannabis in the next year.

 

% General % Of Adults Who Are Extremely
Consumer In Past 7 Days Market Adults /Very Likely To Buy Marijuana Index*
MONSTER 1.1% 2.1% 201
MOUNTAIN DEW 8.3% 13.0% 157
FANTA 1.8% 2.6% 142
SPRITE 8.5% 10.7% 126
DR PEPPER 9.3% 11.5% 124
PEPSI COLA 19.9% 23.7% 119
COCA COLA 27.7% 31.8% 114
CANADA DRY 1.6% 1.5% 97
DIET MOUNTAIN DEW 1.2% 1.1% 89
7-UP 2.2% 1.9% 88
A&W ROOTBEER 1.7% 1.3% 79
DIET DR PEPPER 1.5% 1.1% 72
DIET PEPSI 3.8% 2.5% 66
COKE ZERO 2.2% 1.5% 65
DIET COKE 6.6% 3.7% 56

Chart provided by Consumer Research Around Cannabis

* 2.1% of adults are extremely or very likely to buy marijuana this is 2 times the general market that drinks. Monster thus an index of 201. If it was the same as the general market the index would be 100.

31% of those surveyed that drank Coke in the past seven days were very likely to buy adult use cannabis, 23% of Pepsi (PEP) drinkers were extremely likely to make a purchase and Mountain Dew was in third place at 13%. Mountain Dew is owned by Pepsi and mostly associated with young, male consumers due to its sponsorship of many action sports. The caffeine in Mountain Dew is significantly higher than Coke.

The soda drinkers that are least likely to purchase adult use cannabis are diet soda drinkers. Only 1.1% of diet Mountain Dew drinkers and 1.1% of Diet Dr. Pepper drinkers plan on making a cannabis purchase. The only other soda drinkers that weren’t diet soda drinkers that had a low likelihood of buying adult use cannabis were people that drank A&W Root Beer, 7-Up and Canada Dry.

Soda’s Pharmaceutical History

The two products also have a somewhat shared history. Cannabis was originally a medicinal drug in the late 1800’s that was sold by pharmacists and carried by the major drug manufacturers of the time like Eli Lilly and Pfizer. Soda was initially sold as artificial mineral water and was also used for medicinal purposes.  This is why the soda fountains were first found in drug stores. Cocaine and caffeine were sometimes added to the drinks for medicinal purposes.

So, both of these products began life in the drug store and now both could find themselves on a shelf at a dispensary together. Coming full circle.

 

 

 


Debra BorchardtDebra BorchardtSeptember 18, 2018
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3min991

KushCo Holdings, Inc. (KSHB) formerly known as Kush Bottles said that it is expecting to report a 171% increase in annual revenue to over $51 million for the fiscal year ended August 31st, 2018. The stock popped over 8% to lately trade at $5.23 on the news.

“Our fiscal year 2018 revenue serves as a historic milestone, not just for KushCo Holdings, but for the entire cannabis industry,” said Nick Kovacevich, CEO, and Chairman of KushCo Holdings. “We believe that no U.S. based public cannabis-related company has ever before generated this level of annual sales revenue. Building on the Company’s year to date momentum, our expected fourth quarter achievement of approximate revenues in excess of $19 million is a testament to the highly innovative and strategic work by our team, completing and integrating key acquisitions, and the effectiveness of our sales model in meeting the evolving needs of the market. We are witnessing just how our scale allows us to leverage synergies which benefit both us and our great customers.”

The news wasn’t all good. KushCo gave the market a heads up on a balance sheet hit. The company said that it expects to take a $1.8 million inventory adjustment charge resulting largely from opening multiple new distribution centers and its lack of a global warehouse management system. KushCo said that the situation would be addressed with software solutions being evaluated for implementation in the first half of the 2019 fiscal year.

The company experienced significant growth and blamed the problems on “growing pains.” KushCo opened several new distribution centers including Worcester, Massachusetts and Las Vegas, Nevada.

It has been an incredibly busy year for the cannabis packaging pioneer. The company acquired Zack Darling Creative Associates and its wholly-owned subsidiary, The Hybrid Creative, in order to offer brand strategy, creative design and marketing, web application development, and e-commerce solutions to cannabis and non-cannabis clients. It also launched Kush Energy, a new division focused on supplying the cannabis industry with tested, ultra-high purity solvents and hydrocarbons and went global by launching Kush Supply Co. Canada headquartered in Toronto.

In addition to all of those efforts, the company also started Koleto Packaging Solutions, the research, and development arm focused on developing innovative packaging products and creating Intellectual Property.


Debra BorchardtDebra BorchardtSeptember 17, 2018
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6min790

It’s time for your Daily Hit of cannabis financial news for September 17, 2018.

On The Site

Coco Cola Looking At CBD Drinks

A report from Bloomberg stated that beverage giant Coca-Cola (KO) was keeping its eyes on the CBD beverage market and it could be considering Aurora Cannabis(ACBFF) as its partner. Neither party confirmed they were in talks.

Cannabidiol or CBD is the part of the cannabis plant that provides wellness benefits but does not give the consumer a psychoactive response. Green Market Report had heard for many months that Coca Cola was actually stockpiling CBD in a very hush hush operation, that could not be confirmed.

Auxly Cannabis Group

Auxly Cannabis Group Inc. (CBWTF) completed a strategic investment and a commercial rights agreement with Kaneh Bosm BioTechnology Inc. (KNHBF).  The deal will give Auxly access to a significant and established portfolio of international cannabis licenses, assets and distribution networks.

Kaneh Bosm is changing its name to ICC International Cannabis Corp. but will continue to use its existing stock symbol. The shares should begin trading under the new name on September 20.

In Other News

GrowGeneration Corp.

GrowGeneration Corp. (GRWG) purchased HeavyGardens.com, an online seller of hydroponic and grow supplies. HeavyGardens.com is projected to generate over $5,000,000 in sales for GrowGen for fiscal year-end 2019. The company said that HG generates over 100,000 views per month.

Darren Lampert, Co-Founder a, d CEO, said, “The acquisition of HeavyGardens adds another sales channel for growers to find and shop with GrowGenertion. HeavyGardens has grown month over month by 10% and since its launch in July of 2017, it has quickly become a leader in the online sales of hydroponic supplies. GrowGen will leverage this online platform to increase its sales, add new commercial customers, as well as allow online shoppers to interact with our staff of over 100 professional growers and product specialists.”

Valens GroWorks

Valens GroWorks Corp. (CSE: VGW)  entered into an agreement with AltaCorp Capital Inc., under which AltaCorp Capital Inc. has agreed to purchase, on a bought deal basis, 12,820,513 units of Valens at a price of C$1.95 per unit representing aggregate gross proceeds to Valens of approximately C$25 million. AltaCorp. Is the co-lead underwriter and sole bookrunner, along with Mackie Research Capital Corp. as co-lead underwriter, and including Beacon Securities Ltd.

Pure Global Cannabis

Pure Global Cannabis Inc. (PRCNF) completed a brokered private placement offering of convertible debenture units of the Company, with a syndicate of investment dealers led by Eventus Capital Corp. and including PI Financial Corp., for gross proceeds of $10 million.

The net proceeds are intended to be used primarily to fund the acquisition of a 60% interest in Sativa Nativa S.A.S., a Colombian subsidiary of Avicanna Inc. If the acquisition is not completed, the Company intends to use the net proceeds of the Offering to fund alternate acquisition opportunities, organic growth initiatives and for general working capital purposes.

48North Cannabis Corp.

48North Cannabis Corp. (TSXV:NRTH), Canada’s leading licensed cannabis producer focused on the female health and wellness market, has released its operating and financial results for the fiscal year ended June 30, 2018. The net loss for the year was $12.8 million versus the previous year’s loss of $7.1 million. The company does have $12 million in cash on hand.

“Since receiving our cannabis sales license in late June 2018, we began to sell our cannabis to a number of other licensed producers,” continued Ms. Gordon. “The craft-like quality and carefully selected cultivars backstop the 48North brand and has resulted in competitive bids for our product. To diversify our revenue and leverage our brand beyond dried cannabis sales, our focus will be on the future legalization of extracted products like vape pens, cannabis-infused edibles, cosmetics and skincare.”

High Times Holdings Corp.

High Times Holdings Corp. announced that it had received subscriptions and funds in excess of $5 million and that this has enabled the company to complete a milestone for its Reg A+ offering. The deadline to invest with High Times has been extended to October 31, 2018.


Debra BorchardtDebra BorchardtSeptember 17, 2018
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3min932

A report from Bloomberg stated that beverage giant Coca-Cola (KO) was keeping its eyes on the CBD beverage market and it could be considering Aurora Cannabis (ACBFF) as its partner.

“We are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world,” Coca-Cola spokesman Kent Landers said in an emailed statement to Bloomberg News. “The space is evolving quickly. No decisions have been made at this time.”

Cannabidiol or CBD is the part of the cannabis plant that provides wellness benefits but does not give the consumer a psychoactive response. Green Market Report had heard for many months that Coca Cola was actually stockpiling CBD in a very hush hush operation, that could not be confirmed.

Constellation Brands (STZ) kicked off the cannabis beverage battle when it billions investing in Canopy Growth Corp. (CGC). The investment came under fire from Moody’s, who called it a speculative bet. Even some Constellation shareholders had complained the board had gone rogue.

The Constellation move was followed by a joint venture between Molson Coors and Hydropothecary Corp. to develop a cannabis drink. Lagunitas, owned by Heineken has already launched a THC beer called Hi-Fi Hops.

The focus has mostly been on THC-infused drinks as a replacement for alcoholic beverages. The idea is that consumers would prefer the drinking experience to continue, but instead of getting buzzed by alcohol, they would feel the effects of cannabis.

Coca Cola recognizes that the CBD drink market could be even bigger. It would be the equivalent of Vitamin water. Soda sales have declined as wellness drinks have taken over. Coca Cola has already made efforts to diversify its beverage portfolio like adding Odwalla drinks, Smart Water, Honest Tea, Fairlife milk and of course Vitamin Water.

Cannabis beverages already exist in legalized states, but they have been a very small part of the cannabis consumer market. Typically, sales only command about 1% of the market according to Headset data.

CBD drinks are also already on the market from companies like CBD Living Water.  Still, there hasn’t been a mainstream producer willing to take the risk associated with a cannabis drink. If Coca-Cola does move forward with Aurora, it could spark a cannabis beverage battle.


Debra BorchardtDebra BorchardtSeptember 12, 2018
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4min1970

Canadian cannabis company Aurora Cannabis Inc. (ACBFF) acquired Agropro UAB, Europe’s biggest producer, processor, and supplier of hemp, and Borela UAB, a hemp processor and distributor for 5.36 million euros, or $6.2 million, in cash.

Grand View Research (Industrial Hemp Market Size, Share & Trends Analysis, 2018) has estimated that the industrial hemp market could grow to $10.6 billion by 2025. The hemp seed market, as a subcategory, is anticipated to show even stronger growth. Hemp seeds are already used in food and personal care products found in many grocery stores. The leaves and flowers produce cannabidiol (CBD) which can be found in some medical products, supplements and beauty products. The hemp stalk is prized for its fiber and hurd, used in paper products, building materials, clothing, and other textiles.

“Agropro’s position as Europe’s leading producer of premium organic hemp along with the significant and previously unutilized CBD production from the large quantities of currently discarded biomass, makes this an accretive acquisition and one that positions Aurora well to become a global leader in organic CBD-based wellness products, said Terry Booth, CEO, Aurora Cannabis.”

Skirmantas Nikstele Co-Founder & Chief Executive Officer of Agropro, added, “As the largest producer, processor, and supplier of organic hemp products in Europe, we have developed a strong reputation for quality and consistency with our customers across the globe. Through Aurora, we gain access to a wider distribution network, as well as an access to industry-leading science to help ramp up production, while enhancing margins through the introduction of new products, proven production techniques, and robust genetics.”

According to the company statement, Agropro and its sister company Borela UAB currently have 1,600 hectares or 4,000 acres under contract, potentially yielding more than 1,000,000 kg of organic hemp with additional contracts available to expand to more than 3,000 hectares across Lithuania, Latvia, Estonia, and Poland.

Aurora said its plan for the acquisition is to extract, refine and productize the organic hemp biomass into a wide range of organic CBD-based wellness products to generate new and significant revenue streams. Through its majority-owned subsidiary Hempco, Aurora is already executing on a number of hemp food market opportunities and intends to integrate Agropro’s organic supply and distribution with Hempco’s to enhance market access and accelerate the growth of high margin, premium hemp-based product offerings.

Terms of The Deal

The statement said that Aurora purchased 100% of the issued and outstanding shares of Agropro UAB and Borela UAB for total cash consideration of €5,364,000 (approximately C$8.1 million ) and common shares of Aurora equivalent to €960,000 (approximately C$1.4 million ), based on the 5-day VWAP as of September 10, 2018. In addition, Aurora will also refinance existing debt totaling €2,076,000 (approximately C$3.1 million ) and provide a finder’s fee totaling €1,517,400 (approximately C$2.3 million ).


Debra BorchardtDebra BorchardtSeptember 11, 2018
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7min3150

The Green Market Summit, The Advanced State of Cannabis Economics on September 14 at the One World Trade Center is attracting some of the top female executives in the cannabis industry.

Early industry pioneers Jessica Billingsley and Jeannette Horton from MJ Freeway will come rolling into the Summit with some eye-opening data.  Billingsley and Horton were some of the first leaders to recognize the technological challenges of the marijuana industry. Billingsley, along with Amy Poinsett who is now chairwoman of the board created a seed-to-sale tracking system in an industry when no other tech companies want to work with cannabis companies. They have persevered throughout the ups and downs of entrepreneurship. These two strong women have continued to fight the good fight no matter what has come their way. The Summit can’t wait to hear what new data they will uncover.

Emily Paxhia from Poseidon Asset Management is also a pioneer in cannabis investing. While other financiers were too leery and cautious to believe that this new thing called the cannabis industry would ever amount to anything, Paxhia and her brother Morgan jumped in with enthusiasm and excitement. Paxhia brought a sense of integrity and professionalism to the investing landscape. Without their early support, many companies wouldn’t be here today.

Vivien Azer, Senior Research at Cowen & Company is moderating a panel on the Economics of Cannabis and the Internet. Azer was a trailblazer too when it came to analyzing cannabis companies. She had the vision to recognize that this was an industry to watch and knew that it warranted traditional Wall Street analysis. Azer is a well-respected analyst and with her team does the hard work of digging deep to uncover all the details necessary to understand the industry and the companies they cover. The Summit is thrilled to have Azer join the event.

Tahira Rehmatullah of M-Tech Acquisitions is considered one of the finest minds in the cannabis industry today. Rehmatullah can size up a cannabis company in minutes with her sharp analysis. She brings to the table a Masters degree from Yale and numerous high-level cannabis positions like being an Investment Manager at Privateer and General Manager at Marley Natural. She is now a Managing Director at Hypur Ventures and the CFO at M-Tech Acquisitions. She is moderating the Banking panel at the Summit.

Bethany Gomez is Director of Research of Brightfield Group and joins the panel on the Economics of the Cannabis Consumer. Gomez is adept at using a wide range of methodologies, ranging from expert interviews and targeted consumer surveys to leveraging big data and statistical modeling. She is the one to call if you ever need any data!

This will be the first cannabis conference attended by TheStreet founder Jim Cramer. In another first, Cramer will be interviewing Brian Athaide, the new CEO of The Green Organic Dutchman (TGODF). The two will discuss cannabis company valuations, the future of cannabis beverages, international markets and much more.

In addition to that, Danny Moses of Moses Ventures will explain to KCSA’s Lewis Goldberg why he is long marijuana. Moses was the head trader at Frontpoint, which was made famous by the book and the movie The Big Short. If you didn’t see or read The Big Short, these traders identified the financial crisis ahead of everyone else and were able to capitalize on the signs they saw. What does Moses see in marijuana? Come and find out.

The Economics of Cannabis Banking features cannabis processing company Hypur Inc. Tyler Beuerlein of Hypur knows all the ins and out of how cannabis companies are actually conducting business. If you can’t move money around, you’re business will be crippled. Hypur knows and will be joined by Andre Herrera of Hypur, Matt Karnes, founder of GreenWave Advisors, who has written extensively about cannabis banking.

The Economics of International Cannabis is going to be covered by Daniel Pearlstein of Canopy Rivers. This company is the venture arm of the wildly successful Canopy Growth (CGC). You will want to hear what Canopy Rivers sees as the best international investments. Joining Canopy is Sean McNulty of XIB Financial, Peter Miller of Slang Worldwide and Jonathan Rubin from Cannabis Benchmarks.

MedMen will be in town to discuss the Economics of the Cannabis Consumer. Chief Marketing Officer David Dancer will talk about what MedMen has learned about the cannabis consumer. He’ll be joined by data providers Jeff Stein from Consumer Research Around Cannabis and Bethany Gomez of Brightfield Group. This consumer is not who you think it is and the data proves it.

Of course, in this day and age, all companies must have an internet presence. Sean Dollinger, CEO of Namaste Technologies heads up a panel on the Economics of Cannabis E-Commerce. Namaste has been building an all-inclusive platform for cannabis consumers to learn, meet doctors and procure the right medicinal marijuana. Dollinger is joined by the best cannabis analyst on the street, Vivien Azer of Cowen & Co., Scott Boyes of MPX Bioceuticals and Peter Gigante from Eaze.

 


Debra BorchardtDebra BorchardtSeptember 10, 2018
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6min2520

Aurora Cannabis Inc. (ACBFF)  is planning to acquire South American ICC Labs Inc. (TSX-V: ICC) in a deal valued at C$290 million. Aurora will pay roughly C$1.95 per share in an all-stock transaction.

ICC is a fully licensed producer and distributor of medicinal cannabinoid extracts, recreational cannabis, and industrial hemp products in Uruguay as well as a fully licensed producer of medicinal cannabis in Colombia. The Company has active operations in Uruguay and is focused on becoming the worldwide leading producer of cannabinoid extracts.

“ICC is an ideal partner for Aurora to establish leadership in the South American cannabis market, delivering clear first mover advantage on a continent with over 420 million people,” said Terry Booth, CEO of Aurora. “ICC and its management team have shown exceptional vision and execution across production, expansion, distribution and product development. The company has a very strong management team with deep connections throughout the continent, which we believe will facilitate successful expansion into all South American markets.”

Alejandro Antalich, CEO of ICC added, “ICC was the first company in the world to receive a cannabis production license for adult consumer use, making Uruguay the first country globally in the modern era to legalize cannabis. This has provided us with significant early mover advantage. Combining with Aurora, its industry-leading plant, medical and product development science teams, broad international reach, and strong brands, positions us well to extend our leadership in the South American cannabis markets and the emerging global cannabis industry. With multiple initiatives, such as our expanding international operations and our state-of-the-art science lab near to completion, it is time for ICC to move to the next level, and we believe that Aurora is an ideal partner to achieve this with.”

Why Buy?

The rationale behind the deal is to allow Aurora plant a flag in South America as ICC has over a 70% market share in Uruguay, which was the first country in the world to legalize adult use marijuana. ICC also holds medical marijuana production licenses in Columbia.

ICC has been expanding very quickly with both established facilities and a number of projects nearing completion. The estimated production capacity with all of these planned projects will bring production to over 450,000 kg per year. According to the company statement, there are two greenhouse facilities: currently operational for approximately 92,000 square feet, three outdoor grow sites, with a potential total area of over 800 acres, 590 acres of which are in Uruguay and which are being prepared for cultivation start later this calendar year and two facilities currently under construction, adding 124,000 square feet of greenhouse production in Colombia and a 1,000,000 sq ft facility in Uruguay.

The Lure Of Uruguay

Aurora noted in its statement that Uruguay is the only country where regulations currently permit the cultivation of CBD-rich hemp on a commercial scale, allowing licensed producers to grow hemp with THC concentrations of up to 1%, providing a significant yield advantage over global competitors. ICC’s deep background in pharma and the ability to grow low-cost CBD-rich hemp at very large scale positions the companies exceptionally well to capitalize on global opportunities in the high-growth CBD wellness market.

ICC stated that it recently launched its BIDIOL brand of CBD products and is developing a broad international distribution network, including a presales agreement to export product to Mexico, a market with over 125 million people. ICC’s also said that its new CBD extraction facility is strategically located approximately five minutes from the Canelones international airport and within Uruguay’s “Science Park” free trade zone, exempting facility exports from any applicable local tax on exports and imports.

ICC is also progressing well towards the completion of a state-of-the-art large-scale extraction facility with the capacity to process 150,000 kg of CBD feed per annum. Phase I of the facility is anticipated to be completed in October 2018, with the full facility online and operational by late 2018.

 

 


Debra BorchardtDebra BorchardtSeptember 10, 2018
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4min1260

Cannabis company Golden Leaf Holdings Ltd. (GLDFF) entered into an agreement with Canaccord Genuity Corp. as sole agent and bookrunner for a private placement of unsecured convertible subordinated debenture units. The deal is expected to close on or about October 4.

Golden Leaf is a Canadian company operating in multiple jurisdictions, including OregonNevada, and Canada, with cultivation, production and retail operations built around recognized brands like Chalice Farms. Golden Leaf distributes its products through its Chalice Farms retail dispensaries, as well as through third-party dispensaries. Golden Leaf’s cannabis retail operations and products are designed with the customer in mind, focused on superlative in-store experience and quality products.

 Terms

According to the company statement, Canaccord Genuity  has been tasked with the effort to sell up to C$15 million of debenture units of Golden Leaf with  each unit to be made up  of one C$1,000 principal amount unsecured convertible subordinated debenture accruing interest at 12% per annum until December 31, 2019, after which date interest will decrease to 10% per annum, and be payable semi-annually until maturity, and 1,665 common share purchase warrants of Golden Leaf at a price of C$1,000 per unit, for aggregate gross proceeds of up to C$15 million. Each Debenture is convertible into common shares of the company at a conversion price of C$0.30 per common share. The Debentures will mature 36 months from the closing of the Offering. Each warrant will entitle the holder to acquire one common share at a price of C$0.40 per common share for a period of two years following the closing of the offering, subject to adjustment in certain events. The net proceeds from the offering are anticipated to be used for working capital and general corporate purposes.

In The Pipeline

Golden Leaf CEO William Simpson will present live at VirtualInvestorConferences.com on September 12, 2018. The company has recently announced a definitive agreement to acquire Tahoe Hydroponics Company and 11T Corp, a leading Nevada producer and among the first cultivators in the state. The company also acquired a “Sweet 16” combined cultivation, production, and retail license in California, facilitating vertically integrated operations near San Jose, CA and received a city and state license approval for an extraction in Portland, OR. It harvested its first crops from Medical Marijuana Group, its Canadian subsidiary, with yields that were 30% greater than originally forecasted, putting the Company in line with established cultivators. Canadian Sales License is expected imminently from Health Canada.

 


Debra BorchardtDebra BorchardtSeptember 7, 2018

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The Green Market Summit, The Advanced State of Cannabis Economics  is in one week on September 14 at the One World Trade Center. This will be the first cannabis conference attended by TheStreet founder Jim Cramer. In another first, Cramer will be interviewing Brian Athaide, the new CEO of The Green Organic Dutchman (TGODF). The two will discuss cannabis company valuations, the future of cannabis beverages, international markets and much more.

In addition to that, Danny Moses of Moses Ventures will explain to KCSA’s Lewis Goldberg why he is long marijuana. Moses was the head trader at Frontpoint, which was made famous by the book and the movie The Big Short. If you didn’t see or read The Big Short, these traders identified the financial crisis ahead of everyone else and were able to capitalize on the signs they saw. What does Moses see in marijuana? Come and find out.

In addition to these two financial experts, there will be five panels doing deep dives into the cannabis industry. This is not the usual 50,000-foot level approach you get at most cannabis conferences. These are in-depth discussion accompanied by a 3-5 page white paper exclusively written for this event with new data.

The Economics of Cannabis Banking features cannabis processing company Hypur Inc. Tyler Beuerlein of Hypur knows all the ins and out of how cannabis companies are actually conducting business. If you can’t move money around, you’re business will be crippled. Hypur knows and will be joined by Andre Herrera of Hypur, Matt Karnes, founder of GreenWave Advisors, who has written extensively about cannabis banking and Tahira Rehmatullah of M-Tech Acquisitions.

The Economics of International Cannabis is going to be covered by Daniel Pearlstein of Canopy Rivers. This company is the venture arm of the wildly successful Canopy Growth (CGC). You will want to hear what Canopy Rivers sees as the best international investments. Joining Canopy is Sean McNulty of XIB Financial, Peter Miller of Slang Worldwide and Jonathan Rubin from Cannabis Benchmarks.

MedMen will be in town to discuss the Economics of the Cannabis Consumer. Chief Marketing Officer David Dancer will talk about what MedMen has learned about the cannabis consumer. He’ll be joined by data providers Jeff Stein from Consumer Research Around Cannabis and Bethany Gomez of Brightfield Group. This consumer is not who you think it is and the data proves it.

Of course, in this day and age, all companies must have an internet presence. Sean Dollinger, CEO of Namaste Technologies heads up a panel on the Economics of Cannabis E-Commerce. Namaste has been building an all-inclusive platform for cannabis consumers to learn, meet doctors and procure the right medicinal marijuana. Dollinger is joined by the best cannabis analyst on the street, Vivien Azer of Cowen & Co., Scott Boyes of MPX Bioceuticals and Peter Gigante from Eaze.

If you think you know how medical marijuana has affected adult-use marijuana, get ready because the data is going to deliver some surprises. I’ve been doing this awhile and even I was surprised. Jessica Billingsly and Jeanette Horton from MJ Freeway come rolling into the Summit with some eye-opening data. They are joined by Adam Orens of the Marijuana Policy Group and Emily Paxhia from Poseidon Asset Management.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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