Staff, Author at Green Market Report

StaffStaffMay 22, 2019
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7min660

This is a guest post by Katrina Hatchett.

The role of marijuana in society, and more lately in business, has never been simple, but in recent times this natural product has stepped more and more into the mainstream. Now, in the United States, more than half of the 50 states recognize marijuana for medical purposes, and there is a growing acceptance of its recreational use too (marijuana is now legal in 10 States, as well as DC). In Canada, marijuana has actually been legalized for recreational use as well as for medical purposes. In the rest of the world, there are countries which have legalized marijuana, decriminalized it, or have relaxed rules with regards to personal use and cultivation. Medical usage is now accepted in about a quarter of the world’s countries, with many more having legalization on the agenda.

What does that mean? As well as advances in the treatment of pain relief and other medical symptoms, and the cultural aspects which surround recreational use, there is now a growing investment industry around marijuana. In fact, investing in marijuana stocks represents a great opportunity for even the greenest (pun intended) investor. Here are all the things that potential investors need to know.

Not all stocks are the same, so choose one that suits your strategy

Every potential investor must, first of all, think about exactly what they want for their investment: this is true no matter you are looking to invest in. Are you looking for a quick pay-day, or are you more concerned with stable growth over a longer period? Investing in marijuana stocks offers all sorts of potential returns, so conduct immaculate research first.

The cannabis industry has grown to such an extent that it now includes a wide-ranging and eclectic assortment of businesses: from hospitals and pharmaceutical companies to concrete manufacturers, believe it or not. Many of these businesses are looking for investment capital, but as you can see they may all share a reliance on one particular product, but that is where the similarities end, so this is far from a catch-all topic.

Use an investment broker and a legal expert

The decision to go with a professional broker may depend entirely on the strategy you wish to employ, plus the size of the investment you want to make. If you are considering putting a major chunk of your capital into marijuana stocks, it is definitely worth getting professional advice, which may also include legal advice on the various regulations which exist. Remember that the US Federal Government still identifies marijuana as an illegal substance, so you need to understand very well what you can and cannot do.

Pay close attention to the market

This is a piece of advice that rings true once more for whatever you may be investing in, but with it being such a delicate subject, you really must keep your ear to the ground with regards legal updates and changes in regulations. Of course, it’s good news for investments if more countries decide to legalize cannabis for both medical and recreational purposes, so you will need to ascertain what the likelihood of that happening is in different territories.

Then there are huge market players who are looking at new ways to use cannabis. For example, drinks giant Coca Cola is examining ways to produce marijuana-infused drinks, so stock prices are sure to been affected by such a move.

“A great piece of advice is to look at the marijuana companies that major companies are investing in because that is usually a sign of a solid investment,” points our Eve Stoddart, a marketer at Write My X and NextCoursework.

Never forget the golden rule

No matter what you are investing in, the golden rule is always to diversify your portfolio. The oft-quoted golden rule is 10%: never have more than 10% of your capital invested in one stock. The same rule applies here.

“The danger with investing in marijuana stocks, a little like cryptocurrencies, is that investors will somehow treat it as ‘different’ due to all the noise that surrounds it. That is a mistake. Look at any investment with the same, objective eye as you would when entering any market,” urges Terry McNeil, a project manager at BritStudent and Australia2write.

Katrina Hatchett is a lifestyle blogger at Academic Brits with a particular interest in the art of communication: a field in which she has cooperated on many projects. She is a regular contributor at Origin Writings, as well as a blogger at PhDKingdom.

 


StaffStaffMay 21, 2019
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7min2180

The owners of APHA stock will know sometime in the next 12-24 months if Irwin Simon’s rise to power at APHA is a good or bad thing

By Will Ashworth, InvestorPlace Contributor May 16, 2019, 9:15 am EDT

No one who follows Aphria Inc. (NYSE:APHA ) stock should have been surprised that the company’s president, Jakob Ripshtein,  resigned on May 14.

Ever since interim CEO Irwin Simon was appointed Independent Chair of Aphria’s board in December,  it was only a matter of time before Simon, the entrepreneurial founder and former CEO of Hain Celestial (NASDAQ:HAIN), would play a more prominent role at the Canadian cannabis company.

Out With the Old

Simon stepped down in June 2018 from his role as CEO of Hain after years of sub-standard shareholder returns and a hard-court press from activist investor Engaged Capital.

Simon owned 1.7% of Hain’s stock, but Engaged has an 11.3% stake, so Engaged’s founder, Glenn Welling, was appointed to Hain’s board in September 2017. Simon remained the chairman of Hain, the same role he now holds at Aphria.

At 60 and in reasonably good health, Simon probably isn’t ready to devote his life to the golf course and retirement.

The resignation of Ripshtein, after Vic Neufeld stepped down as APHA’s CEO in January, is another part of the changing of the guard at Aphria.  

I expect the board to soon remove the interim tag from Simon’s current title. The Irwin Simon era at APHA has begun.

The New COO

Ripshtein joined Aphria in May 2018 as its chief commercial officer and was promoted to president six months later, before Simon arrived on the scene. While Simon’s words of thanks to Ripshteins in the company’s press release were complimentary, it’s clear by Aphria’s choice for COO that Simon wasn’t comfortable working with Ripshtein, a former CFO of Diageo’s (NYSE:DEO) North American operations and former president of the liquor company’s Canadian operations.  

“On behalf of the Board of Directors and Aphria team, we thank Jakob for his contributions to the Company over the past year and wish him well in his future endeavors. He has been instrumental in assembling the incredible team we are fortunate to have today that will carry his responsibilities forward,” Irwin stated in Aphria’s May 14 press release.

The new COO is Jim Meiers, who happens to have come to Aphria after 14 years at Hain Celestial, where he worked alongside Simon. At Hain, Meiers led several senior executive positions, including president of Celestial Seasonings. Before Hain, he worked at both H.J. Heinz and Kraft Foods.

Meiers’ hiring suggests two things.

First, it’s likely Simon wanted someone he could trust to execute Aphria’s game plan and someone who’s familiar with his style of management. Every change at the top involves a little turnover. I’m sure it wasn’t personal.

Secondly, Meiers’ background suggests that Simon is looking to implement a supply chain which is more appropriate for a food company rather than a medical company. Both, however, require significant oversight, making the appointment a sensible one and positive for Aphria stock.

The Bottom Line on Aphria Stock

The moves announced May 14 are simply part of the ongoing transformation of Aphria from Vic Neufeld’s baby to Irwin Simon’s.

One of two things is going to happen in the coming months.

Either Simon will be appointed the permanent CEO (likely) or Meiers will become the chief executive (less likely but still possible). 

Given the spotty performance of Hain stock over the past 15 years, I don’t know if Simon’s rise to power at APHA is, overall, a good thing or a bad thing for the owners of Aphria stock.

At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.


StaffStaffMay 20, 2019
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4min500

It’s time for your Daly Hit of cannabis financial news for May 20, 2019.

On The Site

Organigram

Canadian-based Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF)  will begin trading on the NASDAQ Global Select Market on May 21, 2019. The company will continue to list its common shares on the TSX Venture Exchange under the symbol “OGI.”

“As a management team we are seeing increased interest from investors in the U.S. and internationally and believe that having a listing on the NASDAQ will facilitate trading,” said Paolo De Luca, Chief Financial Officer of Organigram. “In addition, based on precedents in the cannabis space, we expect trading volumes to increase which should result in increased liquidity for all investors.”

Five Tips For Selling

Legal cannabis sector fundamentals have strengthened in recent months thanks to new markets coming online and rising sales in existing markets. As a result, there has been a wealth of M&A activity lately, as existing operators increase their pace of acquisitions and new investors flock to the industry, buoyed by these investment opportunities. This has led to smaller operators selling their businesses to the larger players who are looking to consolidate or enter the market or both. This can be a smart move if properly executed, but there are also plenty of ways in which it can go awry.

Here are five crucial tips for operators thinking about selling their businesses in the coming years. This is the first part of a two-part series. In part two, we will provide five additional tips focused on the regulatory issues cannabis companies need to understand.

In Other News

Body & Mind

Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) has closed its previously announced private placement offering with M Partners Inc., as lead agent, together with a syndicate of agents including PI Financial Corp. for 11,780,904 units at a price of CAD$1.25 per Unit for gross proceeds of CAD$14,726,130.

Northern Swan

Global cannabis firm, Northern Swan appointed Former Majority Leader Tom Daschle and Representative Joe Crowley to its Advisory Board. Daschle was one of the longest serving Senate Democratic leaders in history and one of only two to serve twice as both Majority and Minority Leader.

Crowley in the U.S House of Representatives – New York’s 14th Congressional District, which includes Crowley’s hometown of Woodside, Queens, but he lost that seat to Alexandria Ocasio-Cortez.

Northern Swan has raised approximately $100 million of financing to date for their cannabis initiatives which include expanding existing Latin American operations, invest in new low-cost, large-scale cannabis cultivation and processing centers and build out distribution channels and brands in Europe, Latin America and North America. Northern Swan has invested in several companies spanning the global cannabis value chain including Clever Leaves, a leading vertically integrated licensed producer of medical cannabis in Colombia, Cansativa GmbH, a German cannabis distribution company.


StaffStaffMay 20, 2019
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8min1840

Guest contribution from Ramya Rams

If you are looking to buy CBD (cannabidiol) oils, it is extremely important that you dig deep to find the latest and accurate information about high-quality CBD oils. This is because CBD oils now are an industry in themselves and there are always bad apples who look to profit off of customers by scamming or misleading them into buying inferior products.

The worst part is that it is not always easy for interested CBD oil buyers to find out which CBD products and brands are supported by trustworthy claims. New merchants and brands are flooding the market with the growth in popularity of CBD oil. It is no surprise that each one of them claims to be dealing in the best cbd oils and of the highest quality. However, along with the cbd industry, online selling became very popular in short time. The good thing is that you can blindly trust authority cbd oils review websites and choose your best cbd oil from the list.

How To Identify High-Quality CBD Oils?

 

CBD Oil is an extract taken from cannabis plants. It is important to note here that CBD, though present in marijuana too, is primarily extracted from agricultural hemp for medicinal purposes. It is for the simple reason that these cannabis varieties contain minimum Tetrahydrocannabinol (the substance that makes people feel high. This is one point that makes CBD less controversial and more versatile for people.

How is CBD Oil Manufactured?

Unfortunately, there are not many regulations that control the manufacturing process of CBD oils. In other words, different CBD brands make use of different extraction methods for processing CBD oil from hemp.

Some companies that sell their products at ridiculously low prices often use cheap methods to extract CBD oil. Their processes might involve toxic solvents (such as pentane, butane, propane, and hexane) that are harmful to health.

On the other hand, good companies make use of organic and pharmaceutical-grade ethanol (essentially grain alcohol) for processing CBD. This is done to remove unwanted residues and toxins from the base hemp plant. This method is considered to be the safest method of extracting CBD for human consumption as it yields the highest amount of cannabinoids when compared to other refinement processes.

CBD oil can also be extracted and manufactured through the supercritical CO2 extraction method. Under this method, carbon dioxide is used in extremely cold and high-pressure conditions to ensure that Cannabidiol oil maintains its purity throughout the process.

Place Where Hemp Is Grown

The source of CBD matters big time! Remember, hemp plants easily absorbs everything that is present in the ground where it was farmed and cultivated. A hemp plant that grew in rich soil will be of high quality, and the CBD extracted from it will be high-quality as well.

Similarly, a hemp plant that is grown in a land that is heavy with metals like lead and mercury is best avoided, as the CBD extracted from it will be unsafe for regular consumption.

You can find information about the land (on which the hemp plants are grown) on the manufacturer/retailer’s website or in their support center. If you are buying CBD oil in the United States, you can be assured of quality as farmers in the country are required to become certified by the State Departments of Agriculture before their product is sold.

Amount of THC Present In CBD Oil

Tetrahydrocannabinol (THC) is one of the primary cannabinoids present in both agricultural hemp and marijuana. The original amount of THC (although low in quantity) should not exceed more than 0.3 percent. For this, you should always ask for laboratory results or check the labels before making a purchase.

Check for a “Full Spectrum” or “Whole-Plant” Label

One of the most impressive characteristics of good CBD oil is that it is manufactured by making use of a whole plant. Although cannabidiol isolates are becoming popular these days, they are cheaper compared to whole plant extracts. The use of whole plants ensures that the CBD oil includes not just Cannabidiols but also the full range of hemp plant’s primary and secondary constituents (such as flavonoids, terpenes, and other cannabinoids) that work synergistically with cannabidiol.

Check for third-party lab results

A large majority of authentic and legitimate CBD oil brands will be ready to share third-party lab results with customers. These results ensure that the CBD oil is everything that it claims to be with low THC levels, high CBD levels and free of impurities.

Conclusion

The market of CBD Oils is growing at a steady pace with every passing day and it is here to stay and prosper in the times to come.

While most CBD oil brands deliver high-quality CBD oils, the same cannot be said for all brands. The full legalization of hemp will surely improve CBD enforcement and regulations in the near future but until this really happens, consumers must be extra cautious about what CBD oil brands to trust. Remember, you can make the right CBD oil purchases with a little knowledge at your side. The more, the better the purchase!


StaffStaffMay 20, 2019
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7min1080
Guest submission By David Lechner and Charles S. Alovisetti

Legal cannabis sector fundamentals have strengthened in recent months thanks to new markets coming online and rising sales in existing markets. As a result, there has been a wealth of M&A activity lately, as existing operators increase their pace of acquisitions and new investors flock to the industry, buoyed by these investment opportunities. This has led to smaller operators selling their businesses to the larger players who are looking to consolidate or enter the market or both. This can be a smart move if properly executed, but there are also plenty of ways in which it can go awry.

Here are five crucial tips for operators thinking about selling their businesses in the coming years. This is the first part of a two-part series. In part two, we will provide five additional tips focused on the regulatory issues cannabis companies need to understand.

1. Be on the ‘up and up’. Because of some of the negative perceptions related to the legal cannabis sector, it is of utmost importance that you have been operating your business according to state law. Skeletons in the closet will come back to haunt you, leading to buyers completely walking away or at the very least, a big discount on valuation. If you’re out of compliance, get back into compliance before going on the market.

2. Cheap advisors are costly. Good bankers, lawyers, and accountants are worth it. These are the players you’re putting on the field, and you are only as strong as the weakest link. Do you need the most expensive player at every position? No, but if you hire a lesser-known accounting firm for your audit, for example, it could reduce the buyer’s perceived value of your business.

3. Get your house in order before engaging. Often small companies aren’t ready to go through a full transaction lifecycle when they engage with potential buyers. They may have gotten an inbound offer out of the blue that they want to move forward on. But they stumble when it comes time to proceed into diligence and detailed discussions. The first order of business should be to get audited financials from a real accounting firm. Ideally three years, minimum two. This is particularly important if you want to be acquired by a public company (as many licensed businesses in Colorado are currently contemplating). If a public company makes an acquisition that is considered significant according to the Securities Exchange Commission, then the acquiring company needs to file target and pro forma financial statements within 75 days of closing – this will prove an issue if the target (i.e., you) doesn’t have audited financials in place.

4. Time kills deals. You want to minimize your time in the market and in the diligence phase. Get your house in order and set up a data room that contains all the documents that buyers will want to review (IP, technology, financials, etc.). Have someone with M&A experience (e.g. a current or former investment banker), run you through diligence – it’s better if you know where your skeletons are buried now before buyers discover them. If you need to halt a process for three months waiting for a key item to be resolved, or to find some important document, buyers will lose interest. And then there are exogenous events that can spook the markets (e.g., trade wars), the longer your process hangs out there, the greater the risk it goes sideways and falls apart.

5. Be realistic with valuation. Simply because Company X sold for a certain multiple, it doesn’t mean that yours is worth the same. Valuation is driven by fundamentals – size (revenue), diversification (different geographies, diverse set of customers and product lines), and financial performance (historical performance, ‘cleanliness’ of financials, profitability, future growth). A company with $1b of revenue will have a higher multiple (e.g. price to sales) than one with just $50m of revenue. Similarly, a public company’s multiple will be higher than that for a private company due to these factors and as a private operator, you’ll need to temper your expectations.

David Lechner is a Chief Financial Officer with $25 billion of M&A and capital markets work. He consults with clients on due diligence, acquisitions, integrations, financial reporting, and operational improvements. Originally from Toronto, he now resides in Denver with his family.

Charles Alovisetti is a partner and chair of the corporate practice group at Vicente Sederberg LLP, a national law firm focused exclusively on the cannabis industry. He assists licensed and ancillary cannabis businesses with corporate legal matters, and he has experience working with clients on a broad range of transactions.


StaffStaffMay 14, 2019
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2min900

Columbia Care Inc. (NEO: CCHW) reported revenue of $12.9 million for the first-quarter of 2019, an increase of 45% over last year’s $8.8 million. The net loss of $25.1 million increased over last year’s loss of $9.7 million for the same time period. The company attributed the increase to its investment in its growth initiatives.

“Our strong year over year growth in 2018 has continued into 2019 with the launch of our state-of-the-art dispensary in Brooklyn as well as our entry into two of the largest medical cannabis markets in the United States, California, and Florida,” said Nicholas Vita, Chief Executive Officer of Columbia Care. “Access to the public capital markets will allow us to accelerate growth as we expand operations in 12 of our 14 existing jurisdictions and enables us to expedite the commercialization of our hemp-based CBD brands into traditional consumer retail channels. By leveraging our extensive patient data and institutional experience, we are committed to delivering products, services, and brands designed to meet the needs of consumers in markets where we believe we can have the largest impact.”

The adjusted EBITDA of ($10.4) million compared to ($2.3) million for the prior year period, reflected the company’s new market expansion, pre-opening facility expenses, organizational growth and expenses related to Columbia Care’s becoming a publicly traded company. Luckily the company is sitting pretty on pro-forma cash of $169.6 million including proceeds from the closing of the company’s go-public transaction on April 26, 2019 with zero debt.

Post Quarter News

Subsequent to the end of the first quarter 2019, Columbia Care has launched a new line of industrial hemp-based CBD products in conjunction with the opening of its newest dispensaries in Brooklyn, NY and San Diego, CA. Additionally, since the beginning of the year, Columbia Care has entered into lease agreements for dispensaries in Delaware, the District of Columbia and 13 new facilities in targeted markets in Florida.


StaffStaffMay 14, 2019
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4min1110

Hemptown Organics Corp. raised  C$24 million in a round of financing from Canaccord Genuity Corp.who served as the lead agent on the brokered portion of the financing on behalf of a syndicate of investors that included Sprott Capital, Beacon Securities, and Pacific International.

The investment will allow Hemptown to embark on a multi-state expansion, purchase $5.5M in Oregon CBD seeds, begin the build-out of its processing and extraction facilities, research team, as well as planting and harvesting of its 2019 crop of feminized hemp seeds.

“Successful companies in this sector will be those with the ability to build a scalable, vertically integrated multi-state company,” stated Rod Wolterman, Founder and Chairman, Hemptown USA. “We have assembled a well-respected team that has already produced some of the highest quality feminized hemp in the country here in Southern Oregon’s Emerald Triangle. The capital infusion will allow us to expand operations to Colorado, Kentucky, Northern California, ramp up processing capabilities and develop disruptive product formulations in the CPG sector. Needless to say, we’re very excited to be executing on our vision and delivering sustainably grown feminized hemp flower and biomass on a commercial scale.”

With this capital infusion, Hemptown USA is now poised to become a formidable multi-state operation within this rapidly growing industry. Hemptown reported that it had a first-year yield of 110,000 lbs of feminized hemp biomass. The company said it is one of the largest CBG producers in the U.S. with our purchase of 1 million rare CBG seeds for the 2019 growing season. It also said that it is producing some of the world’s most coveted strain profiles containing 15% – 20% full spectrum CBD, CBG and other cannabinoids and terpenes.

Currently, the company is growing 1500 acres in Oregon, Kentucky, and Colorado with the capability to more than double the acreage in 2020 and each year after.

Looking Ahead

Hemptown plans to continue farming more novel cannabinoid strains in large quantities. Such as CBC, CBDV, and CBGV. The company also plans on acquiring a cGMP nutraceutical facility to develop unique cannabinoid products for the health and wellness industry.

“Successful companies in this sector will be those with the ability to build a scalable, vertically integrated multi-state company,” stated Rod Wolterman, Founder and Chairman, Hemptown USA. “We have assembled a well-respected team that has already produced some of the highest quality feminized hemp in the country here in Southern Oregon’s Emerald Triangle. The capital infusion will allow us to expand operations to Colorado, Kentucky, Northern California, ramp up processing capabilities and develop disruptive product formulations in the CPG sector. Needless to say, we’re very excited to be executing on our vision and delivering sustainably grown  feminized hemp flower and biomass on a commercial scale.”

 

 


StaffStaffMay 14, 2019
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3min1380

Surna

Surna Inc. (OTCQB: SRNA) reported revenue of $1,771,000 for the first quarter versus $2,055,000 for Q1 2018, a decrease of $284,000, or 14%. The company also noted that its fourth-quarter 2018 revenue was $2,195,000, representing a quarter-over-quarter decrease of $424,000, or 19%.

In addition to the drop in revenue, Surna delivered a first-quarter net loss of $900,000 versus last year’s net loss of $1,884,000 for the same time period. This was a decrease of $984,000, or 52%. The company said that its 2018 fourth-quarter net loss was $816,000, representing a quarter-over-quarter increase of $84,000, or 10%.

“In late 2018, we announced and subsequently launched a re-set for Surna, with a focus on cost reductions and a revised organic growth plan,” said CEO Tony McDonald. “We believe this plan is being reflected in our modest quarter-over-quarter revenue declines and our cost savings, which reduced our operating cash burn by nearly $300,000 over the prior quarter. We also had net bookings of $4.8 million in Q1 2019, surpassing our previous quarterly high set in Q1 2018. More importantly, since year-end, we are recording new orders/bookings for retrofit and expansion projects. These projects have a more accelerated, predictable completion cycle and revenue stream and should provide revenue momentum over the next couple of quarters as the projects are completed and revenue is recognized.”

On a positive note, the company said it had cash and cash equivalents of $465,000, compared to cash and cash equivalents of $253,000 as of December 31, 2018, an increase of $212,000, or 84%.

GrowLife 

GrowLife, Inc. (OTC: PHOT) reported a 216% increase in revenue for the second quarter to $2,244,279 from $708,936. Still, the company reported a net loss of $2.3 million, an improvement over last year’s loss of $4.2 million for the same time period.

“I could not be more excited to share the tremendous growth that GrowLife delivered in this first quarter of 2019 as shown by the increase in revenues, paired with our over 34% gross margins, compared to last year’s 8-10%,” said GrowLife CEO Marco Hegyi. “As the cannabis and hemp industries continue to experience explosive growth across the globe, GrowLife is keeping pace with this growth, which is a positive sign for our company and our future potential. This quarter’s $2,244,279 in revenue represents nearly half of the sales generated in 2018.”

 


StaffStaffMay 14, 2019
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7min3350

 CannTrust

CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.

“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CannTrust CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million, we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year.”

CannTrust report that it sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram. The company said that cost of sales per gram sold and cash cost per gram sold were $3.03 and $2.77, respectively, compared to $3.08 and $2.94, respectively, in the fourth quarter of 2018. The total active patient count reached 68,000 on March 31, 2019, a 70% increase over the first quarter of 2018

Looking Ahead

The company acquired 81 acres of land in British Columbia for outdoor cultivation with a potential yield of 75,000kg of production in 2019, subject to regulatory approval. CannTrust obtained all necessary permits from the Town of Pelham for the construction of the 390,000 square foot Phase 3 expansion.

The company is developing innovative products for the expected legalization of new product formats in Canada later in 2019. These products include vape pens, beverages, confectionaries, and healthcare products. CannTrust said it is also making strategic investments into its operational capacity to prepare for expected increases in demand for its products.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.

“Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.

The company said that across Canada, sales revenue from recreational markets increased 63% between FYQ22019 and FYQ32019. Over the quarter, Supreme said it worked with MediPharm Labs Inc. (TSXV: LABS), a leading cannabis extractor, to produce its premium oil products line. As announced in November 2018, under MediPharm and Supreme Cannabis’ three-year contract, 7ACRES will supply a minimum of approximately 1,000 kg of high-quality cannabis trim per year as input to MediPharm for the extraction and production of premium, high-terpene cannabis oil products.

Halo Labs

Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.

The revenue increased 302% over the year with first-time contributions from Coastal Harvest and HLO Ventures the California and Nevada operations, respectively. There was also a 32.8% increase in revenues at the Oregon operation known as ANM, Inc. ANM revenues were $2,879,769 in the quarter versus $2,168,976 during the same period in 2018. Coastal Harvest commenced its first year with revenues of $5,324,369, while HLO posted inaugural revenues of $514,365.

 


StaffStaffMay 13, 2019
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6min810

It’s time for your Daily Hit of cannabis financial news for May 13, 2019.

On The Site

Acreage Holdings

Acreage Holdings Inc. (ACRG.U) (ACRGF) announced on Monday that it was carving off its real estate assets and selling them to a REIT called GreenAcreage Real Estate Corp. or GARE. GARE will purchase the assets and then lease them back to Acreage Holdings.

The arrangement is described as “arms length” transaction, which suggests a separation of parties, yet the REIT will be managed by GreenAcreage Management LLC, which Acreage Holdings owns a 20% interest in and CEO Kevin Murphy is also invested in. GARE is also described as remaining “independent” from Acreage, yet the management company has Acreage ownership involved.

MariMed

MariMed Inc. (OTCQB: MRMD) reported that in the first quarter ending March 31, 2019, revenues grew 69% to $3.5 million versus last year’s $2.1 million for the same time period. The company trimmed its net losses for the quarter to $23,211, a 99% improvement over the $1.9 million loss for the first quarter of 2018.

MariMed delivered a breakeven quarter on a per share basis versus the $.01 per share loss for the same period in 2018. Gross profits grew 90% to $2.2 million vs. $1.2 million for the first quarter of 2018 compared to the same period in 2018.

In Other News

Helix TCS

Helix TCS, Inc. (OTCQB: HLIX) announced that it has received a receipt from the British Columbia Securities Commission for the filing of its preliminary non-offering long form prospectus dated May 8, 2019. Listing of the shares will be subject to the Company fulfilling all the listing requirements of the CSE, including the receipt by the CSE of all final documentation and the company filing a final prospectus with the Commission.

“We are excited at the prospect of listing on the Canadian Securities Exchange in 2019,” Executive Chairman and CEO Zachary L. Venegas stated. “We believe the CSE listing will not only benefit our current and prospective Canadian-based investors but will also afford our existing investors, wherever they are located, increased liquidity by being dual listed on a Canadian stock exchange in addition to the OTCQB market.”

Vitalibis

Vitalibis, Inc. (OTCQB: VCBD), a technology-based formulator of premium hemp-based cannabidiol (CBD) wellness products, reported results for its first quarter ended March 31, 2019.

First Quarter 2019 Financial Results. Realized first commercial revenue in the first quarter of 2019, generating $140 thousand in revenue, primarily derived from the soft-launch of several Vitalibis products, as compared to no revenues in the first quarter of 2018. Gross profit in the first quarter of 2019 was $51 thousand, representing a 37% gross profit margin, primarily driven by a sales mix weighted towards lower-margin CBD powder sales. The company expects gross margins to steadily improve over time as consumer products, which carry an approximate 80% gross margin profile, become an increasingly large portion of the sales mix.

Cash used in operations in the first quarter of 2019 totaled $286 thousand as a result of the Company’s capital-light, low-overhead operating model. Cash and cash equivalents as of March 31, 2019, were $60 thousand compared to $171 thousand as of December 31, 2018. Subsequent to the closing of the first quarter of 2019, the Company raised $200 thousand via a convertible debenture.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) reported its first quarter 2019 financial results for the period ended March 31, 2019. Aleafia Health revenue was $1.5 million, compared to $0.1 million in Q1 2018, a 1,723 percent year-over-year increase. The company experienced a net loss of $20.2 million, or a $7 million net loss, excluding $13.2 million in one-time, non-cash payments resulting from the closing of the Emblem acquisition. The Company has $36.8 million cash on hand on March 31, 2019, compared to $26.4 million at December 31, 2018. Current assets, including cash, totaled $61 million at March 31, 2019, compared to $29.2 million at December 31, 2018.

Nabis Holdings

Innovative Properties Inc. d/b/a Nabis Holdings (CSE: NAB) (OTC: INNPF) has signed a definitive agreement to purchase certain assets from PDT Technologies LLC, including extraction and production equipment and rights to lease its current production facility in Port Townsend, WA. In addition, the Company will purchase the exclusive licensing rights throughout the state of Washington to Chong’s Choice brand products, one of the leading and most recognizable brands in the cannabis space.

The Chong’s Choice brand, as one-half of the legendary comedy duo Cheech & Chong, is a well-known brand in the cannabis space. The company expects that the rights it will acquire to the Chong’s Choice brand will provide it with new opportunities to forge licensing relationships with state-licensed Washington processors



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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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