Kaitlin DomangueMay 28, 2021

Memorial Day Weekend is host to hundreds of thousands of retail sales every single year. Around this time of year, you can’t turn on the tv, radio, open Facebook, or your email without some Memorial Day advertisements broadcasted your way. The cannabis industry is no different. The holiday weekend is a historically high sales day for the cannabis space. But according to BDSA, Memorial Day Weekend in 2021 will be unlike previous years and surpass year-over-year growth seen in 2020.

Friday is the star of cannabis sales over Memorial Day Weekend

BDSA’s newly-released report about cannabis sales over the three day weekend predicts Fridays to be the best sales day between the Thursday, Friday, and Saturday before Memorial Day. Previously, the Friday before Memorial Day Weekend has been the highest cannabis sales day throughout the month of May, with inhalable consumption methods driving the holiday mania.

This is likely because of the outdoor-type gatherings Memorial Day Weekend brings. Everyone is outside, lighting the BBQ grill, and apparently: smoking a lot of weed. BDSA says 50% of people consume for “daytime fun”, which is right in line with the festivities leading up to Memorial Day.

Colorado to make up 25% of sales on Thursday and Sunday

Thursday and Saturday still draw a crowd, however. The report says Thursday, Friday, and Saturday will be blockbuster sales day in the cannabis industry and 25% of the growth seen on Friday and Saturday will be thanks to transactions in Colorado.

According to cannabis enterprise software company Akerna’s flash report, Memorial Day Weekend will gross approximately $238,000,000 in recreational and medical marijuana sales over the four day period, Friday to Memorial Day on Monday. According to the report, consumers under the age of 40 will be driving 61% of cannabis sales.

Like the BDSA report, Akerna predicts Friday to be the highest sales day of the weekend, grossing $85,000,000. If sales reach this number, it’s up 55% from average sales on the Friday before Memorial Day.

Cannabis beverages are hot for summer

Many predicted cannabis beverages to surge in popularity in 2021. Edibles are already taking the industry by storm. Cannabis data analytics company, Headset, recently reported edibles grew by 60% across seven legal markets in the United States. This includes market share, according to Headset data analyst Cooper Ashley, who said they increased from 10.65% in 2019 to 11.07% of the market share in 2020.

It’s possible cannabis beverages could be the product of the summer, filling backyard coolers and poolside drinks all summer long. We’ll find out after Memorial Day Weekend is over!

Kaitlin DomangueMay 27, 2021

Full name: Fabian Monaco

Title: Chief Executive Officer

Company: Gage Growth Corp. (CSE: GAGE)

Years at current company: I have been with Gage for over 3 years, since the Company’s inception.

Education profile:

The University of Western Ontario – Richard Ivey School of Business

M.B.A.

2010 – 2011

The University of Western Ontario – Faculty of Law

J.D., Corporate & Securities Law

2008 – 2011

York University – Schulich School of Business

B.B.A. (Hons.)

2003 – 2007

Most successful professional accomplishment before cannabis:

I have a vast investment banking and legal background with over 10 years of capital markets experience, however, my most successful professional accomplishment truly lives within the cannabis space. I was fortunate enough to become a key member of the investment banking team at GMP Securities LP (“GMP”) in Canada, which ultimately contributed to the development of the cannabis industry in its early days. While at GMP, I worked on a number of industry-firsts including the first acquisition (Tweed, now Canopy Growth, acquiring Bedrocan), one of the first initial public offerings (MedReleaf) and the first $100 million financing round in the space (Canopy Growth).

Following GMP, I transitioned to XIB, who co-founded Canopy Rivers with Canopy Growth, an investment and acquisition firm that has underwritten a number of equity financings, ultimately supporting the industry’s ability to grow. One of the companies Canopy Rivers invested in is TerrAscend, which is now an over $4 billion market cap company.

Company mission:

Gage Growth Corp.’s mission lies in providing premium cannabis to market, positively shaping cannabis culture and nurturing the community. By committing to these core values, we believe we are primed for success and rapid economic growth.

Company’s most successful achievement:

We are proud of the successful build-out of our assets and our brand in a relatively short period of time, and with very limited capital. I believe this tells you two things:

(1) We have the right people with the right expertise. You cannot build a strong cannabis brand, with expansive cultivation facilities and retail footprints, in a competitive market if you don’t have the proper team in place.

(2) We are an extremely prudent capital allocator. We raised a little less than $60 million before our Reg A+ financing in the fall of 2020, and with that we were able to create a dominant brand, three cultivation facilities and numerous retail dispensaries. This contrasts wildly when you look at some other US companies that raised $300-400 million just to build their core infrastructure.

Has the company raised any capital:

Yes

If so, how much:

To date, the Company has raised US$110+ million including our recently closed Reg A+ offering which raised a full US$50 million.

Any plans on raising capital in the future:

We have a very healthy balance sheet at the moment. Post our Reg A+ offering, we have ~US$40 million cash on hand. I’d also like to highlight the fact that the Company has very minimal debt. So with the cash we have on hand, we are fully funded for all our operational and expansion plans in Michigan.

Most important company 5 year goal:

Gage’s most important goal is to build the most dominant brand in Michigan first, and then follow by expanding into other states. We believe Michigan will be a top five cannabis market in the US, and we’d like to capture a significant market share and then replicate the same success in other markets.

Kaitlin DomangueMay 18, 2021

Brightfield Releases New CBD Report

Cannabis and CBD consumer data analytics company, The Brightfield Group, is announcing the release of their newest report analyzing the CBD market in 2020 and laying out their predictions for 2021. Some key information from the report includes:

U.S. hemp-derived CBD sales are expected to reach $5.3 in 2021, up 15% from 2020’s $4.6 billion
By 2026, American CBD sales will reach $16 billion, driven by accelerated growth of ingestible products
Drinks and gummies are expected to be the fastest growing product types in 2021, with 71% and 44% value growth, respectively
Tinctures will retain the highest share of the market in 2021, holding 18% of retail sales
Online sales will surpass $2 billion in 2021, accounting for 38% of the total American CBD market

The report also highlights the coronavirus pandemic’s impact on the American CBD market, the FDA’s stance on regulating CBD in 2021, and various other pieces of information about the rapidly expanding market. The Brightfield Group predicts the hemp-derived CBD market will grow at a compound annual growth rate (CAGR) of 25% from 2021 to 2026, with growth driven by:

New consumers
Expanding retail into new channels
A regulatory framework from the FDA, accelerating the growth rate of ingestibles
New players to bring innovation to the market

Price and Potency Changes

According to aggregate data from Hemp Benchmarks, the Brightfield Group’s report says the aggregate assessed price for hemp CBD biomass declined by a whopping 82% from April 2019 to May 2020, taking the price from $38 a pound to just $7 per pound.

While the coronavirus pandemic surely played a part in this, you have to wonder if the newly-established American CBD industry in 2019 played a role in the price per pound during that time. It was a hot market, performing beautifully and faster than anticipated, thanks to the federal government removing hemp from the Schedule I Substances list in 2018. The hemp space in 2019 is a tough year to compete with, and throw a global pandemic on top just one year later: you might see some lower hemp prices than average.

30 ML tinctures saw, on average, a 33% potency increase, going from 450 to 600 milligrams of CBD. The price dropped from $25 to $20.
120 ML tinctures saw, on average, a 33% potency increase, going from 1800 to 2400 milligrams of CBD. The price dropped from $70 to $60.

Innovation

In typical cannabis industry fashion, the CBD market is ahead of innovation and constantly thinking of new ways to keep customers satisfied. However, CBD brands are going beyond wacky flavors and new designs: the companies are focusing on functional ingredients that will make a difference for the consumer.

Immunity is a huge focus for the CBD space in 2021, and 2020 saw the same thing. Ingredients like elderberry, echinacea, Vitamin C, and zinc are popular choices for consumers. Minor cannabinoids like CBG and CBN are still hot for 2021, tapping into the entourage effect full-spectrum cannabis products provide us.

Top CBD Companies in Q4

In terms of market share, here were the leading CBD companies during the last quarter of 2020:

Charlotte’s Web (3.6%)
Medterra (1.7%)
cbdMD (1.6%)
CBDfx (1.5%)
CBDistillery (1.2%)

The report listed 20 CBD companies, others include: CBD American Shaman, Bluebird Botanicals, Garden of Life, Ananda Hemp, and Martha Stewart CBD.

Distribution Channels

Online CBD sales are expected to reach $2.02 billion in 2021, accounting for 38% of the total market. This is down slightly from 42% in 2020, but it’s a good sign that things might be returning to the beginning of normalcy as people return to in-person retail shopping. Curbside and contactless options are still available in many places, which might contribute to this number. E-commerce will dominate the distribution market in 2021, with pharmacy following behind it, then CBD speciality retailers, natural food stores, pet stores, and more.

Kaitlin DomangueApril 15, 2021

Cannabis data and analytics company, Headset, announced the launch of a report highlighting a long-term forecast into the U.S. and Canadian cannabis markets! Specifically, forecasting the sales, sales volume, and market shares for 2021 and 2022 compared to 2020.

The cannabis industry during 2020

The cannabis industry held their breath last year when COVID-19 hit. We fully expected to see a dramatic impact on businesses, and at our worst: expected to get shut down and deemed non-essential. For the most part, that didn’t happen and many local governments declared cannabis businesses to be essential. We collectively breathed a sigh of relief, but many physical storefronts were damaged in some of the riots over the summer, forcing some stores to close briefly. Despite that, the industry trudged forward and kept it moving, seeing the end of 2020 and welcoming a hopefully very different 2021.

Headset’s methodology for this report

Headset says: “These forecasts will include all 13 Canadian provinces and territories and 36 US states* with any level of legalization and across all markets (recreational and medical), and the data will be presented in the aggregate for each calendar year. Typically, Headset only forecasts one forward looking month at a time and in this new framework, forward looking forecasts will cover at minimum five quarters (15 months) and at maximum eight quarters (24 months).” The numbers take New Jersey, New Mexico, and New York’s new legalization into account.

The data estimates the U.S. cannabis market to reach $23 billion in sales by 2022. Canada’s market is expected to grow twice as fast as the American market from 2020 to 2021, and nearly three times faster from 2021 to 2022. Headset predicts Canada’s annual sales to grow 54.6% in 2021 and 31.9% in 2022. The United States is predicted to see a 23% growth rate in 2021 and 24.4% growth in 2022. Canada’s cannabis market is expected to hit $4 billion in sales in 2022, so significantly lower than the U.S. market, but nonetheless on an incredibly fast-paced rate of growth. Check out the predicted (and last year’s) sales volume in both countries:

2020

U.S.: $18,504 million

Canada: $2,624 million

2021

U.S.: $22,751 million

Canada: $4,057 million

2022

U.S.: $28,308 million

Canada: $5,351

Per usual, flower is expected to dominate future markets and did dominate 2020’s market.

Flower accounts for a majority of total annual sales, reaching $11 billion and $12 billion in 2021 and 2022 respectively.
Despite flower’s consistent popularity in both markets, edibles, vapor pens, and concentrates hold more market shares than flower in 2020, 2021, and 2022
Edibles and concentrates are expected to have larger market shares (at the expense of flower and pre-rolls) in 2022
Pre-roll sales are expected to contribute to 20% of Canada’s total sales volume growth in 2022, making for a 2% increase from the prior year

Tinctures, topicals, capsules, and beverages are consistently among the categories with the lowest sales in both markets, but still accumulating millions of dollars each year and in some cases, sharply rising.

Category shares for both markets

The report also goes into detail about market shares by category, specifically sales and sales volume. Here are the top performing categories (roughly) in order, it changes depending on country and the year, but all five are consistently at the top:

Flower
Pre-rolls
Vape Pens
Edibles
Concentrates

Download Headset’s report here.

Kaitlin DomangueMarch 4, 2021

It’s time for your Daily Hit of cannabis financial news for March 4th, 2021.

On the Site

Columbia Care Guides Higher for 2021

Columbia Care Inc. (OTCQX: CCHWF) released preliminary results for the fourth quarter and full year ended December 31, 2020 and issued 2021 guidance. Actual revenue rose 228% in the fourth quarter to $76 million versus $23 million for the same time period in 2019.

While this is a solid performance, it does miss the analyst estimates for revenue of $79 million in the fourth quarter according to Yahoo Finance. The combined results for the fourth quarter are listed as $81 million.

Cannabis Companies Go On Buying Spree

This week has been unusually active as cannabis companies have been on a major buying spree.

Schwazze acquires Star Buds for roughly $72.3 million
Greenlane acquires Eyce for an undisclosed amount
Terra Tech buys UMBRLA, Inc., recently rebranded as Unrivaled for an undisclosed amount

PACT Act to Apply to All Vaping Products

Amendments to the Prevent All Cigarette Trafficking (PACT) Act may have caused cannabis to hit yet another setback. The PACT Actt has been amended to include “electronic nicotine delivery systems”, which looks inclusive to cannabis at first glance. However, it’s described as followed:

“any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described without regard to whether the component, liquid, part, or accessory is sold separately from the device.”

This means that USPS can no longer deliver cannabis vape products to consumers.

Delic Moves To Focus On At-Home Mushroom With Homestead Acquisition

Psychedelic media company Delic Holdings Inc. (OTCQB: DELCF) has acquired mushroom kit maker and media company Homestead brands in an all-stock deal. DELIC issued subordinate voting shares worth $50,000 and 50,000 incentive stock options were also granted to Homestead founder David Tatelman, with an exercise price of $0.58. David Tatelman will act as a consultant to the company.

Charlotte’s Web Moving Beyond Hemp

Well-known hemp CBD company Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) is expanding beyond its current model with a planned acquisition of privately-held Stanley Brothers USA Holdings. Stanley Brothers is a cannabis wellness incubator currently operating in three states (Colorado, California, Florida) with expansion plans underway in eight additional states.

The acquisition though isn’t immediate. Instead, Charlotte’s Web is pursuing a five-year option plan valued at $8 million, which could be extended to seven years.

In Other News

Tryp Therapeutics Announces Application to List on OTCQB

Pharmaceutical company focused on identifying and developing clinical-stage compounds for diseases with complex and unmet medical care, announced today their application to list on the OTCQB® Venture Market OTCQB.

Illinois Dispensaries See $2.88 Million in Daily Sales in February

Illinois dispensaries sold almost $2.9 million dollars worth of cannabis last month, outpacing the record set just one month earlier. The state’s retail shops sold more than $80 dollars in adult-use cannabis last month, a slight drop from $88 million in February.

Kaitlin DomangueMarch 2, 2021

It’s time for your Daily Hit of cannabis financial news for March 2nd, 2021.

On the Site

Collecting and Storing Cannabis Pollen

Most growers these days are only interested in female plants, but if you want to cross different strains and breed new combinations, you’ll need the pollen. And in fact, few companies sell pollen so it’s actually much more practical to just collect your own. For indoor growers, collecting it is the only option, since nature’s elements are not present to spread the pollen for them.

Pro tip: If you are storing seeds for later pollen collection, best to occasionally pull one out and give it a germination test to make sure the little babies are still active and viable.

The Massachusetts Cannabis Industry is a Billion Dollar Marketplace

Cannabis business consulting firm Nucleus One recently released the findings of their February 2021 Massachusetts Adult-Use Marijuana Market Report. Nucleus-One tracks and analyzes data from the Cannabis Control Commission of Massachusetts. February’s report heralded good news for the Commonwealth’s cannabis industry after a short-lived decline in sales in 2020. Since the decline, December and January 2021 saw unprecedented sales, with over 98 active retailers in the state. This growth is due to higher sales in product categories other than flower shares, which hit an all-time low in December.

CBN Market Targets Sleep

The demand for sleep aids and medications has seen a similar surge, and with it the debut of products containing Cannabinol (CBN), a minor cannabinoid with what some claim is a uniquely sedative effect.

Unlike CBD, CBN is not present in significant quantities in fresh marijuana, but when unheated marijuana ages or is exposed to air and light, the THC in it turns to CBN.

Circle K Ramps Up Cannabis Ownership

Alimentation Couche-Tard Inc. or ACT, the owners of Circle K have increased its equity stake in Canadian cannabis company Fire & Flower Holdings Corp. (OTCQX: FFLWF). ACT announced that it plans to convert all of its approximately $28.5 million outstanding principal amount of 8.0% secured convertible debentures issued in April 2020 as well as the conversion of approximately $23.6 million principal amount of 8.0% unsecured convertible debentures issued to 2707031 Ontario Inc. Following the conversion, ACT will have converted a total of approximately $52 million principal amount of debt to equity and ACT will hold 19.9% of the issued and outstanding shares of Fire & Flower.

High Tide Crushes Fourth Quarter, 166% Increase in Revenue

Canadian cannabis retailer, High Tide Inc., (TSXV: HITI) (OTCQB: HITIF), announced their Q4 earnings yesterday for 2020. Despite the curveballs 2020 threw, High Tide landed on top, and reported a 118% increase in revenue bringing the total to $24.9 million for the fourth quarter. The revenue increase accounted for a 166% year-over-year growth, and brought the year’s total earnings to $83.3 million.

In Other News

NeonMind Biosciences Inc. Files for Four Additional Provisional Patents

NeonMind Biosciences Inc. (CSE: NEON) (OTC:NMBDF) (FRA: 6UF) announced that they have filed four additional provisional patents on psilocybin preclinical data. NeonMind has a consumer products division focusing on medicinal mushroom infused products, as well as a pharmaceutical division focused on drug development of psychedelic compounds.

The provisional patent features data derived from the company’s initial preclinical trial that began in November 2020. This trial examined the potential use of psilocybin as a treatment for weight loss. NeonMind’s proprietary preclinical data shows promise that both low and high dose psilocybin may reduce weight gain and that the reduction in weight gain can occur in a short period of time.

“We are encouraged with the preliminary results obtained from our preclinical trial,” says NeonMind President & CEO Robert Tessarolo. “Through an expanded portfolio of patent applications, NeonMind is uniquely positioned to pursue exciting drug development opportunities in the enormously underserved weight management market. There have been so many solutions developed in the past that have disappointed; a new approach is desperately needed. We are actively building out our capabilities to execute the critical phases of drug development needed to support new drug applications to the FDA.”

TILT Holdings Inc. Approved for Cultivation Expansion at Massachusetts Facility

TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF), announced its approval for expanding cultivation at their Massachusetts cultivation and manufacturing facility. The request was approved by Massachusetts Cannabis Control Commission and set for eight additional grow rooms at its subsidiary, Commonwealth Alternative Care, Inc. The new operations are set to begin later this month.

“We are pleased to announce the regulatory approval of the second phase of the planned expansion of our 117,000 sq ft cultivation and manufacturing facility in Taunton, Massachusetts,” said Gary Santo, president of TILT. “We now have more than 56,000 sq. ft. of cultivation space with the ability to add a second grow tier to each of the eight new rooms, pending regulatory approval. Once planted, these additional rooms will fortify the supply of premium flower for our Taunton dispensary, and together with our award-winning kitchen and state-of-the art extraction and processing lab, will support the production and distribution of high-quality, consistent products for our brand partners. As we continue to solidify CAC’s presence in the state, we remain committed to working with the CCC to achieve final state licenses permitting medical dispensary operations at our Brockton and Cambridge locations, as well as adult-use operations at both our Brockton and Taunton locations.”

Canopy Growth Launches CBD Beverage Brand

Canopy Growth Corporation has launched a CBD beverage brand. The drink is already a top seller in the category after a successful Canadian launch. The brand is called Quatreau, and it contains 20 milligrams of U.S. grown hemp-derived CBD. Quaetreau comes in four refreshing flavors:

Quatreau CBD-infused Sparkling Water in Cucumber + Mint
Quatreau CBD-infused Sparkling Water in Passionfruit + Guava
Quatreau CBD-infused Sparkling Water in Ginger + Lime
Quatreau CBD-infused Sparkling Water in Blueberry + Acai

“We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic. “Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option.”

Kaitlin DomangueMarch 2, 2021

High Tide’s revenue by geographic location

$20.6 million of total company revenue was earned in Canada in Q4
$4.1 million of total revenue was earned in the United States in Q4
$0.2 million of total revenue was internationally in Q4

$68.4 million of total revenue was earned in Canada in fiscal year 2020
$14.3 million of total revenue was earned in the United States in fiscal year 2020
$0.6 million of total revenue was earned internationally in fiscal year 2020

High Tide’s gross profit increased by 112%

The company’s gross profit increased by 112% to reach $8.7 million in the fourth quarter of 2020, and 172% to $30.8 million for the year. The company’s CEO and President, Raj Grover, said 2020 was their best year yet. “Despite the global slump in retail sales associated with the pandemic, and thanks to the tireless efforts of our team, we closed the year with approximately $8 million in Adjusted EBITDA making 2020 the best year in High Tide’s history,” said Raj Grover, President and Chief Executive Officer. High Tide’s Adjusted EBITDA for the fourth quarter was $3.6 million, and the $8 million represents the fiscal year ended October 31st, 2020.

High Tide’s cash on hand

The company reported $7.5 million cash on hand as of October 31st, 2020, and a significant cash balance increase to approximately $38 million as of today.

Revenue segments

$22.6 million in total revenue was generated by retail in Q4
$2.2 million in total revenue was generated by wholesale in Q4
An immaterial amount by corporate was generated in Q4

$75 million in total revenue was generated by retail in fiscal year 2020
$7.9 million in total revenue was generated by wholesale in fiscal year 2020
$0.4 million in total revenue was generated by corporate in fiscal year 2020

These figures compare to $24 million, $6.69 million, and $0.6 million, respectively, for the previous year.

More thoughts from High Tide’s CEO

“We continued to run our operations tightly, ending the year off with the record levels of revenue and Adjusted EBITDA.,” said Grover. “We are excited about our trajectory in the United States and continue to prioritize and look for opportunities in that market. Our integrated value chain which includes Cannabis Bricks & Mortar stores, e-commerce platforms for consumption accessories and hemp derived CBD products, along with manufacturing and distribution of licensed and proprietary consumption accessories, experienced sizable growth on all fronts. We plan to continue to further strengthen our chain through organic growth and strategic acquisitions creating even more value for our shareholders. Since the end of the fiscal year, we have already nearly doubled our size in Canada with the closing of the META Growth acquisition. For the fiscal first quarter of 2021 we expect to report revenue in the range of $37 million to $38 million.”

Operational highlights

In addition to monetary achievements, High Tide made some operational moves last year to set the company up for success in 2021 and beyond.

Canna Cabana (High Tides retailer) opens location in tourist destination Banff, Alberta in August
META shareholders overwhelmingly approve High Tide’s acquisition of META Growth Corp. (META. V) in October 2020
Over 50% of the company’s brick-and-mortar revenue came from Cabana Club members, emphasizing the brand’s value

Additional Events

High Tides entered a loan agreement for $6.75 million ending on December 31st, 2024 of an undrawn balance on a $20 million credit facility, which was obtained through the acquisition of META
Approximately $29 million worth of company debt was converted into common shares after October 31st, 2020
Company common shares moved up to the TSX Venture Exchange
The company submitted an initial application to be listed on the NASDAQ
High Tides closed on an unsubscribed bought deal equity financing, gross proceeds $23 million
All branded locations have remained operational throughout the COVID-19 crisis, despite difficult issues facing Canada.

Kaitlin DomangueFebruary 25, 2021

It’s time for your Daily Hit of cannabis financial news for February 25th, 2021.

On the Site

Should You Use CBD Gummies to Help Mental Health?

There is plenty of evidence to show that CBD can have a profound impact on mental health. This article dives into some of the research and studies that exist include:

Anti-inflammatory
Anxiety relief from CBD
CBD’s interaction with serotonin receptors in the brain
And other additional pieces of research

Innovative Industrial Stock Sells Off Despite Solid Earnings

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) released results for the fourth quarter and year ending December 31, 2020, after the market closed on Wednesday. The stock was pulling back in pre-market trading by over 6% to sell near $206 as investors were disappointed with the earnings. Innovative Industrial delivered a fourth-quarter FFO of $1.36 missed by $0.07 and the revenue of $37.09 million missed by $1.41 million despite increasing by 110%.

Valens Reiterate Guidance Despite Slight Drop in Sales

The Valens Company Inc. (OTCQX: VLNCF) reported its fourth quarter and fiscal year financial results for the period ended November 30, 2020. Valens reported gross revenue for the fourth fiscal quarter fell to $17.9 million from $18.5 million in the third quarter of 2020. The net loss increased to $16.6 million sequentially over the third quarter’s net loss of $3 million.

PharmaDrug Files For DMT To Be Used for Kidney Transplants

PharmaDrug Inc. (CSE: BUZZ) (OTC Pink: LMLLF) has filed for an application with the U.S. Food and Drug Administration to receive Orphan Drug Designation (“ODD”) for N,N-Dimethyltryptamine or DMT in the prevention of ischemia-reperfusion injury in patients undergoing kidney transplantation.

Indus Holdings Buys Lowell Herb for $39 Million

California-based Indus Holdings, Inc. (OTCQX: INDXF) is buying Lowell Herb Co. and Lowell Smokes in a deal valued at $39 million. The acquisition includes trademark brands, product portfolio, and production assets of Lowell from The Hacienda Group effective immediately. The company will change its name to Lowell Farms Inc.

Acreage Holdings Sells Florida Property for $60 Million

Acreage Holdings, Inc. (OTCQX: ACRDF, ACRHF) announced its subsidiary, High Street Capital Partners was selling Acreage Florida, Inc. to Red White and Bloom Brands, Inc. (OTCQX: RWBYF) for $60 million. The deal also includes the sale of property in Sanderson, Florida. The stock was dropping over 6% to lately sell at $7.39.

In Other News

MJ Holdings, Inc. to Acquire Medical and Recreational Cultivation Licenses

MJ Holdings, Inc. (OTC PINK: MJNE) has reached a point of being ready to purchase two cultivation licenses (recreational and medical) and two production licenses (recreational and medical) and transfer the appropriate license to proprietary land.

“In consideration of $1.250M and 200,000 shares of our common stock (Purchase Price), we will soon fully control our own destiny as we have applied to transfer the cultivation licenses to our proprietary land: The Farm. We have arranged an amicable separation under our existing management agreement with Curaleaf/Acres and are developing our cultivation facility on The Farm for our own use. With the enormous Las Vegas tourism industry soon to be on the rebound, we are well positioned to meet or exceed our fair share of demand,” said Paris Balaouras, Founder and Chief Cultivation Officer of MJ Holdings, Inc.

Cronos Group Earnings Preview for Q4 2020

Cronos Group (OTC:CRON), is set to announce their earnings for the fourth quarter of 2020. The consensus EPS estimate is -$0.08, and the revenue estimate at $13.23 million. The company has beat estimates 75% of the time over the last year, and has beaten revenue estimates 25% of the time.

Kalamazoo Mayor to Attend Ribbon Cutting Ceremony of Cookies Store

Kalamazoo’s mayor, David Anderson, has confirmed his participation in a ribbon cutting ceremony for a Cookies retail location on February 26th. The event was announced by the company in a press release.

Cookies is owned by California rapper and entrepreneur, Berner.

“The Midwest is an important part of Cookies’ overall expansion plan, and our partnership with Gage Cannabis has been integral,” Cookies CEO Berner said in a news release. “We’ve seen tremendous demand from cannabis consumers in Michigan and the surrounding areas and look forward to continuing to serve them as our partnership grows with this second location.”

Kaitlin DomangueFebruary 24, 2021

It’s time for your Daily Hit of cannabis financial news for February 24th, 2021.

On the Site

Ardent Life: A Company Revolutionizing Cannabis Technology

Ardent Life Inc., was founded in 2015 by Shanel Lindsay. The Green Market Report is featuring a series of Black-owned businesses for Black History Month, and Ardent Life is part of that.

Lindsay developed the sublingual method of administering cannabis after years of fiddling with her dose. This administration route had never been introduced to the cannabis industry before, which led to Lindsay immediately protecting her concepts before other companies could grab hold of it. In 2014, G.W. Pharmaceuticals gave $100 million to the company to support FDA trials of the company’s sublingual sprays, Sativex and Epidiolex.

Besides her work with Ardent, Shanel is an attorney and activist for the cannabis industry, fighting for equity amongst the industry.

Michigan May Get Its Own Marijuana Stock Exchange

Cimone Casson is the owner of cannabis insurance brokerage firm Cannas Capital, Michigan Chapter President for Minorities 4 Medical Marijuana, and the driving force behind another initiative that is poised to push Michigan to the forefront of social equity. Casson’s objective is to create a local stock exchange, the Michigan Marijuana Market, that focuses on raising capital for minorities in local communities impacted by the War on Drugs.

Former Eaze CEO Pleads Guilty in Bank Fraud Case

James Patterson, the former CEO of California cannabis delivery platform Eaze pleaded guilty to one count of conspiracy to commit bank fraud according to a report at Law360. The plan was a scheme to deceive banks into processing more than $100 million worth of credit and debit payments for marijuana purchases. The major banks and credit card companies like Visa (NASDAQ: V) and Mastercard (NYSE: MA) refuse to work with cannabis companies as the product is still federally illegal. So any transactions using these products or lying to banks about the nature of the transactions is illegal.

The Pros and Cons of CBD Joints

Pros:

Great flavor
Easy to assemble ahead of time
Higher bioavailability

Cons:

Potential danger to your health
Antisocial

In Other News

Agrify Announces New Advisory Board

Vertical grow solutions company, Agrify (NASDAQ: AGFY), has announced the formation of its new Strategic Advisory Board.

Rosie Mattio, Founder and Chief Executive Officer of MATTIO Communications, and Matthew Kressy, Founding Director of the MIT Integrated Design & Management (IDM) program, have both been appointed to serve as trusted advisors to the Company. The Advisory Board has been established to bring together a talented and accomplished group of outside leaders to provide strategic guidance and industry expertise on various aspects of Agrify’s business, including market opportunities, public relations, and hardware and software design and solutions.

Kaitlin DomangueFebruary 18, 2021

It’s time for your Daily Hit of cannabis financial news for February 18th, 2021.

On the Site

Is Delta-8 THC Legal?

This guest submission explains that yes, delta-8 THC is legal and able to be obtained in the United States. Delta-8 THC seems to lack the intense psychoactive effects of its analog, Delta-9 THC. It gives a mild “high” but has stronger health and wellness benefits. Unlike the regular THC, Delta-8 THC’s benefits far outweigh its side effects, which are minimal at the least.

Tax Court Rules Against Harborside in 280E Case

California-based cannabis company Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) has been fighting the IRS over tax payments related to IRC Section 280E, which

prohibits businesses engaged in the trafficking of controlled substances (including cannabis as specified in Schedule I of the FCSA) from deducting normal business expenses associated with the sale of cannabis.

The company announced that the United States Tax Court ruled in favor of the Commissioner of Internal Revenue with respect to Docket Nos. 12313-15,12353-15, and 15714-18 to disallow all of SJW’s deductions pursuant to I.R.C. sec. 280E for all the years at issue.

Tilt Holdings Forecasts Rising Revenue for Fourth Quarter

TILT Holdings Inc. (OTCQX: TLLTF) reported its preliminary earnings for the fourth quarter ending December 31, 2020, and full-year outlook for 2021 after the market closed on Wednesday. Tilt said that the fourth-quarter revenue is projected to be between $42.2 million and $43.2 million versus last year’s revenue of $40.4 million for the same time period. That figure, however, includes its former subsidiary Blackbird, without that the revenue would be projected to be between $41.3 million and $42.3 million.

MindMed to Buy HealthMode in C$41 Million Deal

Psychedelic medicine biotech company MindMed (OTCQB: MMEDF) will acquire HealthMode, a digital medicine and therapeutics startup that uses Artificial Intelligence (AI)-enabled digital measurement to increase the precision and speed of clinical research and patient monitoring.

MindMed said it will acquire HealthMode through the issuance of 82,508 multiple voting shares of MindMed (equivalent to 8,250,836 subordinate voting shares which, at yesterday’s closing price of CAD $5.13, puts the value of HealthMode at approximately CAD $41,254,180) and the payment of approximately CAD $300,000 in cash.

MD Numbers, Inc: A Cannabis Company Focused on Sustainability & Equity

As part of Green Market Report’s month-long series highlighting Black cannabis owners, we featured MD Numbers; a Black-owned cannabis company with numerous brands under them in various disciplines of cannabis. The co-founders are also siblings, Marie Montmarquet and Allen Hackett have 31 combined years of cannabis experience.

Tilray Delivers Solid Quarter As Revenue Rises 20%

Tilray, Inc. (Nasdaq: TLRY) reported financial results for the full fiscal year and fourth quarter ended December 31, 2020 following the close of the market on Wednesday.

The company said that total revenue increased 20.5% to $56.6 million versus the fourth quarter of 2019.

In Other News

New Jersey Lifts 2019 Medical Marijuana Restriction

A New Jersey appellate court decided to lift the 2019 order that prevented the state from awarding 24 additional medical marijuana licenses.

“The ruling today is a step in the right direction for the state of New Jersey to not only meet the demands of existing patients but to eventually increase supply to meet the demand of the adult-use market,” New Jersey cannabis attorney Rob DiPisa of Cole Schotz wrote in an email to Marijuana Business Daily.

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