Editor-in-Chief

Debra BorchardtDebra BorchardtAugust 14, 2019
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7min2370

Charlotte’s Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF), a producer of whole-plant CBD hemp extract products, reported its financial results for the second quarter ending June 30, 2019. The company’s revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. The net income fell to $2.2 million from last year’s $3.7 million.

Charlotte’s Web noted that 53% of its revenue came from retail outlets and that its gross margin was a whopping 75% producing gross profits of $18.8 million. Operating expenses doubled from $8.2 million last year in the second quarter to this year’s $16.2 million. The company attributed the increasing expenses to adding more personnel to address the company’s growth. Employee headcount increased by 41% over the past year.

“We have been experiencing increased sales through both our e-commerce and retail sales channels,” said Deanie Elsner, Charlotte’s Web Chief Executive Officer.  “Top tier mass retailers are entering the market as several national grocery and drugstore brands have announced their CBD plans. The majority of these are now carrying Charlotte’s Web products. This is a significant development for the hemp CBD category. To effectively service projected growth, we have been building our executive leadership with experienced consumer-packaged-goods (CPG) executives in sales, marketing, finance, data, and operations. Similarly, we are expanding our capabilities in cultivation, R&D, production, and distribution.” The company’ products are now available for sale in 8,000 locations.

In order to fund this expansion, Charlotte’s Web used $15.2 million of cash in operations during the first six months of 2019 compared to $6.1 million of cash provided from operations during the same period in 2018. The company said it reflects the investment in inventory required to supply increasing retail and consumer demand. Cash was also used for the 2019 hemp crop that was increased to 862 acres from 300 acres planted in 2018.

“We are experiencing increased momentum with large retailers as consumer awareness and interest in CBD grows,” said Deanie Elsner. “We believe we’ll continue to see additional large retailers coming onboard and expect an increase in the number of states and locations with our existing retail partners throughout the year. Kroger is the most recent example as they added four new states to their distribution in July, including Texas, which is the latest state to approve hemp CBD products.”

New Products

Charlotte’s Web introduced new products including new hemp extract infused CBD gummies in three flavors, and a new twelve SKU pet product line including functionally focused chews with synergistic ingredients to support specific health functions – Calming, Hips & Joints and Cognition. Subsequent to the second quarter, the Company signed two distribution partners for its pet line; Pacific Pet in California, one of the largest distributors of pet food and pet products on the west coast, servicing 1,000 independent pet stores in California, Arizona, Nevada, and Hawaii; and “Pet Food Experts”, servicing over 4,000 retailers in 33 states out of five distribution centers located in Rhode Island, Pennsylvania, Illinois, Washington, and Colorado.

Looking Ahead

“We forecast revenue growing at a faster pace than operating expenses in the back half of the year,” stated Rich Mohr, Chief Financial Officer of Charlotte’s Web. “This supports our financial forecast for increases in adjusted EBITDA percentages in future periods. As product volumes shipped continue to increase on a quarterly basis, we’re expecting continued top-line revenue growth during the last half of the year. Our previously communicated revenue guidance for 2019 of between $120 million and $170 million remains in place. Where we fall within this range will substantially be determined by future developments with the FDA, associated retailer response, and the timeline of these events.”  Russ Hammer has been named as the company’s new Chief Financial Officer.

 

 

 


Debra BorchardtDebra BorchardtAugust 13, 2019
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3min2020

Tilray, Inc. (Nasdaq: TLRY) reported financial results for the second quarter ending June 30, 2019 revenue increased 371.1% to $45.9 (C$60.9) million, compared to the second quarter of last year, driven by the Manitoba Harvest acquisition, the legalization of the Canadian adult-use market, and growth in international medical markets, particularly in Europe. Excluding excise tax, revenue was $42.0 (C$55.8) million.

The company reported a net loss of $35.1 million or $0.36 per share compared to a loss of $12.8 million or $0.17 per share for the same time period in 2018. The adjusted net loss for the quarter was $31.2 million or $0.32 per share for the second quarter of 2019. Tilray said that the adjustments to the net loss were non-recurring acquisition-related charges and a non-recurring non-cash charge related to purchase accounting for the fair value of inventory.

The company’s stock was falling in after-hours trading by over 5% to $43.35.

The adjusted EBITDA was a loss of $17.9 million compared to a loss of $4.7 million last year. The increased net loss and adjusted EBITDA declines were primarily due to the increase in operating expenses related to growth initiatives, interest expense from our convertible notes, the addition of Manitoba Harvest and Natura businesses, and the expansion of international operations.

“We are pleased with our second quarter results and strong business momentum,” said Brendan Kennedy, Tilray President and Chief Executive Officer. “Our team has executed against our plan, with adult-use revenue nearly doubling in the second quarter compared to the first quarter and gross margin increasing sequentially for the second quarter in a row. As we continue to grow, we remain focused on our long-term strategic objectives and deploying capital to maximize stockholder value.”

Kilograms Sold Tripled

The company said its total kilograms sold more than tripled to 5,588 kilograms from 1,514 kilograms in the prior-year period. The average net selling price per gram dropped to $4.61 (C$6.12) compared to $6.38 (C$8.36) in the prior-year period. The average net selling price excluding excise taxes was $3.92 (C$5.20) per gram for the second quarter of 2019. The decrease was due to a reduced mix of higher-priced extract products and a greater mix of adult-use revenue, which are at lower prices per gram compared to other channels.

 


Debra BorchardtDebra BorchardtAugust 13, 2019
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5min1970

Beleaguered California cannabis company MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced unaudited revenue figures for the fiscal fourth quarter of 2019, ending on June 29, 2019. The company did not release any information as to net income or losses and considering each quarter the net losses have been extremely high, the lack of this information could be a red flag.

Systemwide revenue across MedMen’s operations in California, Nevada, New York, Arizona, and Illinois, excluding pending acquisitions, rose 15% sequentially to US$42.0 million. The company reported that gross margins were 50%, compared to 51% in the previous quarter. Pro forma systemwide revenue, which includes pending acquisitions that have not yet closed, totaled US$61.3 million. The company defined the pro forma as 37 retail stores that were operational at the end of the quarter and includes the recently announced pending acquisitions of operational retailers in Long Beach, California, and Vallejo, California.

“Q4 2019 was another quarter of solid execution for MedMen and a very strong end to our fiscal year,” said Adam Bierman, MedMen co-founder and chief executive officer. “Throughout 2019, we broadened our geographic footprint through strategic acquisitions, which leverage our existing corporate infrastructure as we enter new markets. Following the closing of pending acquisitions, we will be licensed for up to 92 retail locations across 12 states, and there is tremendous opportunity ahead to turn the balance of our retail licenses into revenue-generating storefronts.”

Conversion Price Dropped

In March, MedMen announced a $250 million senior secured credit facility arranged by Gotham Green Partners. At that time the conversion price for the shares was $3.10. Since the stock has dropped as a result of numerous negative headline, the conversion price was lowered to $2.55 for the first Tranche. The second Tranche conversion price has dropped to $2.17.

The second Tranche was expected to be for $75 million and that has dropped to $50 million. “The gross proceeds from the Equity Placement together with the remaining financing commitment under the Facility total US$155 million.” So, it is no longer $250 million. MedMen stock was lately trading at $2.10.

PharmaCann Update

Last December, MedMen said that is was going to buy PharmaCann, one of the largest vertically-integrated multistate cannabis operators in the U.S. The FTC questioned that acquisition as part of its anti-trust oversight. MedMen said both it and PharmCann have provided all the requested information and still hope the deal will close by the end of 2019. “PharmaCann equityholders are expected to receive approximately 168.4 million subordinate voting shares in the combined company, based on MedMen’s fully-diluted shares outstanding as of June 29, 2019.” So far New York State has not approved of the MedMen acquisition of PharmaCann.

Expense Reduction

MedMen has been criticized in the past for its extremely high expenses. The lawsuit filed by the company’s former Chief Financial Officer James Parker detailed numerous unusual corporate expenses that disturbed shareholders. Now the company says that it expects to significantly surpass the targeted 20% reduction in its corporate SG&A expenses from its quarter ending December 2018, which totaled $164 million on an annualized basis. MedMen said it is now on track to reduce its run-rate corporate SG&A expenses by 30% by the end of the September 2019 quarter, or to approximately $115 million on an annualized basis going forward. Key drivers of this continued decrease in corporate SG&A expenses include i) general corporate cost savings, ii) strategic headcount reductions across various departments and iii) elimination of non-core functions and overhead in various departments.

 

 


Debra BorchardtDebra BorchardtAugust 12, 2019
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8min2110

It’s time for your Daily Hit of cannabis financial news for August 12, 2019.

On The Site

CannTrust

After the market closed on Friday, CannTrust Holdings Inc. (NYSE: CTST)said it received a report from Health Canada telling the company that “Its manufacturing facility in Vaughan, Ontario has been rated non-compliant with certain regulations.”CannTrust stock is dropping over 25% to lately trade at roughly $2.26 in pre-market trading as shareholders learn about the continuing problems with the facilities causing more uncertainty.

The news that the company’s facility has failed a recent inspection is troubling because it was supposed to have addressed problems from previous inspections in which the company was found to be growing cannabis in rooms that hadn’t received licenses.  Health Canada has said that it is currently unable to provide any guidance about the timing or content of its decisions regarding CannTrust.

Saving Money

On August 6th we published an article that illustrated the savings for consumers and additional profits for cultivators that could be produced through the use of a properly organized Cannabis Cooperative Association (“CCA”). This article describes the savings for consumers and the additional profits for cultivators in the movement of cannabis in the form of extracted oil.

As we have said on multiple occasions, a CCA is the most financially efficient structure for engaging in business in California’s cannabis industry. The utilization of a CCA for the movement of cannabis as extracted oil produces even greater price reductions for consumers and increased profits for cultivators than with flower. This occurs because more costs are incurred between the cultivator and the consumer in the movement of extracted oil than in the movement of flower.

Novel?

It was announced on January 2019 that the European Food Safety Association, EFSA is about to make a decision in order to classify CBD oil and other CBD products as a novel food. This decision was announced at the Novel Food Commission meeting which was held in Brussels in 2016. This led to a final imminent decision very soon and EFSA considered CBD products as Novel Food.

In recent times, there has been tremendous growth in food products available in the market which eventually included Cannabidiol. And, according to reports, it is clear that the European CBD Market is going to encounter a boom in the near future. Eventually, the regulators started taking a closer look at the CBD products and oil available in the European market.

In Other News

MediPharm Labs

MediPharm Labs (MEDIF) reported that its second-quarter revenue was $31.5 million, a 43% increase over Q1 2019, reflecting Canadian cannabis extraction-only industry and the ramp-up of new committed contracts. Gross Profit was $11.3 million, a 65% increase over Q1 2019, while Gross Margin was 36% compared to 31% in Q1 2019, reflecting increased production and production efficiency that continues to improve as the Company realizes economies of scale. Adjusted EBITDA was $7.7 million, 79% higher than Q1 2019, while Adjusted EBITDA margin was 24% compared to 20% in Q1 2019. Net income before tax was $4.1 million compared to a net loss of $0.3 million in Q1 2019

MariMed

MariMed (MRMD) report that its revenues for the second quarter of 2019 were $25.7 million, up 774% compared to $2.9 million in the same year-ago quarter. The increase in revenue was primarily the result of hemp seeds sales totaling $25.2 million dollars, of which $22.0 million was recognized in the quarter. The remaining revenue is expected to be recognized in the third and fourth quarters of 2019 upon payment from the buyer. Revenues excluding the hemp seed sales increased 24% to $3.7 million versus the year-ago quarter.

Gross profit for the second quarter of 2019 was $8.9 million or 34.8% of revenues, up 341.1% from $2.0 million or 68.9% of revenues in the same quarter from a year ago. Gross profit in MariMed’s core businesses as a percentage of revenues increased to 72.4% in the second quarter of 2019 from 68.9% in the year-ago quarter. Net income for the second quarter of 2019 was $4.7 million or $0.02 per fully diluted share, improving from a net loss of $393,000 or $(0.00) per basic share in the year-ago quarter.

Medicine Man Tech

Medicine Man Technologies, Inc. (OTCQX: MDCL) announced that it has entered into a binding term sheet to acquire Colorado-based Dabble Extracts, an award-winning cannabis concentrate company that specializes in processing medical and recreational marijuana into premium-grade extracts.

Under the terms of the term sheet, the company will pay $3,750,000 for Dabble Extracts. The purchase price will consist of $750,000 in cash and 996,678 shares of common stock priced at $3.01/share, which is the average closing price of the Company’s stock for the five trading days prior to August 6, 2019. The terms can also be referenced in the 8-K, which outlines the closing conditions. The obligations of the Company and Dabble Extracts under the term sheet are conditioned upon the satisfaction of mutual waiver of certain conditions, including regulatory approval.

Nabis

Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF has entered into a Definitive Agreement for the acquisition of 100% of the membership units of a licensed medical marijuana business in the state of Arizona.

The Asset, licensed under the provisions of the Arizona Medical Marijuana Act, operates a dispensary in Phoenix, Arizona. The dispensary in Phoenix has been operating since 2015 with proprietary branded products and wholesale operations, including an established distribution network serving more than 50% of the dispensaries in Arizona.

The audited sales for 2017 and 2018 were USD $7.4 million and $8.7 million respectively.  2019 unaudited revenue is on pace for sales of USD $9 million. The dispensary specializes in top-tier flower, vape pens, concentrates, edibles, tinctures, and CBD products.

 


Debra BorchardtDebra BorchardtAugust 12, 2019
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4min2210

After the market closed on Friday, CannTrust Holdings Inc. (NYSE: CTST)said it received a report from Health Canada telling the company that “Its manufacturing facility in Vaughan, Ontario has been rated non-compliant with certain regulations.” CannTrust stock is dropping over 25% to lately trade at roughly $2.26 in pre-market trading as shareholders learn about the continuing problems with the facilities causing more uncertainty.

The news that the company’s facility has failed a recent inspection is troubling because it was supposed to have addressed problems from previous inspections in which the company was found to be growing cannabis in rooms that hadn’t received licenses.  Health Canada has said that it is currently unable to provide any guidance about the timing or content of its decisions regarding CannTrust.

According to a company statement, Heath Canada’s rating was based on observations made during an inspection completed during the period July 10-16, 2019, which noted:

  • The conversion of five rooms from operational areas to storage areas, which were used for storage since June 2018 without prior approval of Health Canada;

  • The construction of two new areas without prior approval of Health Canada, one of which was used to store cannabis since November 2018;

  • Insufficient security controls at the manufacturing facility;

  • Inadequate quality assurance investigations and controls;

  • Standard operating procedures that did not to meet the requirements under regulations; and

  • Documents or information that was not retained in a manner to enable Health Canada to complete its audit in a timely manner.

The company has held back cannabis inventory as a result of the non-compliance issues. The company has said that it is trying to remediate the problems with Health Canada which has resulted in changes in the company’s executive suite.

The company’s interim CEO Robert Marcovitch said, “We are continuing to work hard to regain the trust of Health Canada, our patients, shareholders, and partners. We have retained independent consultants who have already started addressing some of the deficiencies noted in Health Canada’s report. We are looking at the root causes of these issues and will take whatever remedial steps are necessary to bring the Company into full regulatory compliance as quickly as possible.”

Separately, CannTrust said that it pre-paid the outstanding mortgage of approximately $13.3 million to Meridian Credit Union which was secured by its greenhouse in Pelham, Ontario, as well as associated interest and administrative costs.


Debra BorchardtDebra BorchardtAugust 9, 2019
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4min2570

CannTrust Holdings Inc. (TSX: TRST)( NYSE: CTST) said that its independent auditor, KPMG LLP, Chartered Professional Accountants told the company that as of August 8, 2019, it is withdrawing its report dated March 27, 2019 on the company’s consolidated financial statements as at and for the year ended December 31, 2018 and its interim report to the Audit Committee dated May 13, 2019 on the unaudited condensed interim consolidated financial statements as at and for the three month period ended March 31, 2019.

In addition to that, KPMG said the reports should no longer be relied upon. CannTrust confirmed that KPMG remains CannTrust’s independent auditor.  The stock is falling another 5% on Friday morning to lately trade at $2.12.

“We will continue cooperating with our auditor and regulators, and take whatever steps are necessary to restore full trust in the Company’s regulatory compliance. Our medical patients, customers, shareholders, and employees deserve nothing less”, said Robert Marcovitch, the Company’s Chief Executive Officer.

This stems from the recent trouble surrounding the company’s illegal growing of cannabis in unlicensed rooms. That resulted in a Health Canada review as to whether CannTrust can release inventory that is being held and whether the company can retain its licenses. Health Canada has apparently placed a hold on inventory which includes approximately 5,200kg of dried cannabis that was harvested in the previously unlicensed rooms in Pelham until it deems that the company is compliant with regulations. In addition, CannTrust said it has instituted a voluntary hold of approximately 7,500kg of dried cannabis equivalent at its Vaughan manufacturing facility that was produced in the previously unlicensed rooms.

KPMG’s decision was prompted by CannTrust’s caution against reliance on its financial statements for the year ending December 31, 2018 and for the three months ended March 31, 2019, as well as the recent sharing with KPMG of newly uncovered information from the Special Committee’s investigation, including information that led to senior leadership changes announced on July 25, 2019.

Internal emails showed that former CEO Peter Aceto was aware of the illegal growing and was terminated “with cause.” It also seems that another former CEO and board chair Eric Paul sold stock in the company in November 2018 and had been aware of the illegal growing as well. Mark Litman another director of the company also sold shares during November. Thus, insider trading accusations are flying around as well.

Also back in November, the company’s former CFO noted that there were “deficiencies” in the company’s disclosure record in a letter to the Ontario Securities Commission. He said the company had agreed to take “remedial steps” to address them.


Debra BorchardtDebra BorchardtAugust 8, 2019
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3min3530

SOL Global Investments (CSE:SOL)(OTCPK:SOLCF) is changing from an international cannabis investment company to a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange. In addition to the business designation change, the company is also changing its name to Bluma Wellness.

The company explained that “Bluma” is an ancient Hebrew word which means to flower, bloom or blossom. It selected this name based on a key principle of the business: to ensure that its patients and consumers utilize the plant-based products to enhance their daily lives, namely to bloom and thrive.

Brady Cobb, the CEO of SOL Global, says the timing of the proposed change of business is strategic, stating: “One of the innate strengths of SOL Global’s management is knowing when to enter a market, as is evidenced with our early success in Canada and Florida. We have planned this transition and the market entrance of our MSO to coincide with the rapid growth of the legal U.S. cannabis marketplace amid a presumptive tail wind from federal policy reform initiatives related to cannabis, a process I’ve been deeply involved with. We believe that the timing of our MSO’s entrance to the market will position us well to capture that growth.”

The company said in a statement that its initial operations will include assets in three (3) of the top ten (10) cannabis markets by revenue in the U.S., as forecasted by ArcView market research – Florida, Michigan and California.  SOL GLobal, now Bluma, said that it has focused in on a path to profitability by keeping the capital expense and the operating expense low with an efficiency-driven model of integrating operations and streamlining management, brand deployment and its  proprietary delivery models across all three states.

Mr. Cobb said that the new name was chosen to be synergistic with the company’s new direction, stating that “We chose the name Bluma Wellness, as an appropriate way to honor the true intent of each seed that we cultivate, harvest, and deliver as a product to ensure that every single one of our customers has a consistent and enriching experience that allows them to flourish.” He added: “We also look forward to bringing investors a new kind of MSO, one that is focused on profitability in the short term through operational and logistical efficiencies and a keen eye on the bottom line.”


Debra BorchardtDebra BorchardtAugust 8, 2019
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3min2402

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported financial results in Canadian dollars for the second quarter and first-half ending June 30, 2019, with net revenue climbing 202% to $10.2 million over last year’s $3.4 million. The revenue increased 58% sequentially from $6.5 million in the first quarter of 2019. The company attributed the increase to sales in CBD oil, which carries no excise tax reduction and increased sales of dry flower.

“During the second quarter, Cronos Group expanded its R&D capabilities, innovation expertise and global infrastructure network in what has been a year of tremendous growth,” said Mike Gorenstein, CEO of Cronos Group. “We opened Cronos Device Labs, our new global R&D center in Israel, announced the acquisition of our new state-of-the-art fermentation facility and added Dr. Todd Abraham as Chief Innovation Officer to our executive leadership team.”

The stock though slid by over 3% to lately trade at $13.96 as shareholders showed their displeasure with the company only selling 1,584 kilograms of cannabis during the quarter. For example, HEXO Corp. (NYSE: HEXO) reported that it sold 2904 kilograms in its last quarter. Still, it was an increase of 232% over the 477 kilograms sold in last year for the same time period.

The company also reported that its cost of sales before fair value adjustments per gram sold increased 14% to $3.01 in the quarter over last year’s $2.6. This was an increase of 12% sequentially over the first quarter’s cost of $2.69. Cronos Group said that the increased costs were due to higher processing cost on a per gram basis.

The company also reported a gain on the revaluation of derivative liabilities of $263 million that resulted in a net income of $250 million.

Abraham added, “We also took steps to enter the U.S. market with our recent acquisition of Redwood Holding’s hemp-based CBD platform. As we look ahead, we will continue to capitalize on this momentum by building on our partnerships with Altria and Gingko Bioworks and leveraging our collective resources and expertise to realize the significant potential in the growing cannabis industry.”


Debra BorchardtDebra BorchardtAugust 7, 2019
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3min2120

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported financial results for its second quarter ending June 30, 2019, with revenue increasing 102% to $19.3 million and 50% sequentially. The net losses grew to $33.7 million versus $4.2 million for the same time period in the previous year. The company blamed the losses on the “recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the company’s expansion in both new and existing markets.”

“We are pleased to deliver revenue growth of over 100% year-over-year and over 50% sequentially. With the majority of our facilities and markets in development, as well as several important product and service launches anticipated in the third and fourth quarters, we look forward to the future,” said Nicholas Vita, chief executive officer of Columbia Care. “The capital we raised through our going public transaction has enabled us to leverage our scale, innovation, differentiated strategy and diversified growth initiatives across all of our jurisdictions, including our four most recent market launches in Florida, California, Ohio and Puerto Rico.”

Gross profits were essentially flat for the second quarter at $5.2 million over the same time period in 2018. The company reported that adjusted EBITDA of ($11.4) million compared to ($1.7) million for the prior-year period, reflected new market expansion, facility expenses, organizational growth and expenses related to the company’s go-public transaction.

Looking Ahead

Following the end of the second quarter, Columbia Care has launched operations in Florida, Ohio and Puerto Rico. It now has ongoing expansion activities in 12 of its 15 licensed jurisdictions. The company also reported that it has $125.3 million cash on hand as of June 30, 2019, and no debt.

In June Columbia Care announced that it received both Schedule I controlled substance manufacturing and export licenses from the New York State Department of Health. The company said that the licenses demonstrate Columbia Care’s ability to meet New York State’s most stringent requirements regarding the handling and production of consistent, high-quality medical cannabis products for domestic research and global export, and supports its pending application with the US Drug Enforcement Administration (DEA) to permit distribution for research purposes throughout the US and for research and commercial medical purposes internationally. Subject to DEA approval, the Schedule I licenses will enable the company to participate in clinical research and export Schedule I cannabis-based medicines globally.

 


Debra BorchardtDebra BorchardtAugust 7, 2019
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3min2120

The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company.

“This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD. “Our team remains focused on executing our business plan and creating value for our shareholders.”

The listing of TGOD’s shares on the NASDAQ will be subject to a number of regulatory requirements, including registration of the common shares under the U.S. Securities Exchange Act of 1934 and a determination by the NASDAQ that TGOD has satisfied all applicable listing requirements.  Subject to approval for listing, the common shares will continue to trade on the TSX Exchange under ‘TGOD’, which is also the reserved symbol for the NASDAQ application.

In May, the company reported its first-quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue rose by 28% to $2.4 million. Much of that revenue was generated from the recently acquired HemPoland. The company experienced a net loss of $14.1 million, down $4 million from the previous quarter. Management attributes these losses to continued preparation for commercial cannabis production and its preparations to enter the adult-use market next year.

The company is on schedule with the construction of production facilities in Hamilton, Ontario and Valleyfield, Quebec. Approximately $46.9 million in investment is dedicated to the sites’ construction.

Close to the end of the quarter, TGOD launched Growers Circle, which sells medical cannabis directly to patients in Canada. The company did not record any revenue from the venture in the first quarter as the bulk of orders were shipped in April. However, revenues should appear on the financial results for the second quarter.



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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