Staff, Author at Green Market Report

StaffStaffMarch 21, 2019
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4min4150

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC)  has acquired American hemp company AgriNextUSA in a cash deal for an undisclosed amount.  The company did note that purchase was not material to its current cash position and that the transaction would speed up Canopy Growth’s entry into key markets in the United States.

AgriNext is a hemp enterprise led by CEO Geoff Whaling, that has been at the forefront of hemp advocacy and building a vibrant hemp sector in the USA.

The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential,” said Bruce Linton, co-CEO and Chairman of Canopy Growth. “Our significant investments, acquisitions, and compilation of talented leaders such as Geoff will position us for swift expansion throughout the United States. By collaborating with a pioneer like Geoff, who has been involved with our team since our earliest days in 2013, we will aim to turn hemp supplied by American farmers into a wide range of products.”

Canopy Growth had previously announced that it was on track to build the first Hemp Industrial Park in the Southern Tier of New York State, after receiving a state license to produce and process hemp. At that time, the company said that it had committed to invest $100M to $150M into a hemp operation that would lead to significant job creation and positive local economic impacts, as well as the produce CBD products for Canopy.

The vision proposed by AgriNextUSA and supported by Canopy Growth would involve creating Hemp Industrial Parks such as the one planned in New York State, where this super crop could be fast-tracked through a production cycle that would result in commercial applications for all parts of the plant, from root to tip. Camopy said in its statement that American farmers will benefit from a model that provides a single, regional destination for their hemp crops and connects them with the researchers, entrepreneurs, and innovators whose ideas will turn their crops into new products and industries.

“Hemp has the potential to become a multibillion-dollar industry that will boost the American economy for generations to come,” said Geoff Whaling, CEO of AgriNextUSA, Chairman of the National Hemp Association and newly appointed Strategic Advisor, Hemp and CBD, Canopy Growth USA. “By working with Canopy Growth, we will turn our vision into a reality, one that helps American farmers, small and medium-sized business owners, and the next cohort of innovators who see the extraordinary potential that hemp has to offer.”

Some industry insiders believe that hemp will be an even bigger market than adult use or medical marijuana. They believe hemp has the potential to disrupt several prominent industries like advanced materials, cosmetics, energy, fiber and textiles, food and protein production and the health and wellness sectors. Hemp is also a natural source of CBD, the non-intoxicating component of cannabis that can be used for health and wellness purposes in jurisdictions where legally permitted.

 


StaffStaffMarch 21, 2019
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8min1070

Guest Post by Nicolas Chahine, InvestorPlace Contributor

We often hear jokes about the lofty valuations of cannabis stocks. They have huge market capitalizations with only a tiny fraction of them in actual revenues. Tilray Inc. (NASDAQ: TLRY) is perhaps the poster child for that joke since its short squeeze that occurred last September. Then Tilray stock skyrocketed to $300 per share in a day, but only to perhaps mark the absolute top forever.

First, let me assure you that I am not a perma-bull on pot stocks. Yes, I only trade them from the long side, but I use the technicals to guide my decisions. A few weeks ago, I shared a long entry opportunity in Tilray stock and it paid quickly.

On Monday, TLRY reported earnings and investors are happy with what they saw because TLRY stock was spiking on the headline. But in classic TLRY fashion, the knee jerk reaction was violent as the stock fell $5, then rallied at $4. 

The results were mixed as management beat the sales expectations but also reported some extra expenses. For now, this is something Wall Street should ignore for as long as TLRY is a growth stock.

If this were a mature company, then investors can demand tighter profit controls, but this is a situation where the cannabis companies are plowing into completely new territory so they deserve a lot of leeway, more so than usual in fact.

The cannabis industry is still in its infancy on Wall Street. Even the so-called experts rely more on hunches and guessing to forecast the fundamentals. So perhaps until there is enough history to establish tangible expectations, I greatly rely on the technicals to guide me. Charts don’t lie and they outline the trends and important levels.

However, relying on charts doesn’t mean I completely dismiss the importance of the company metrics. Perhaps the most important one that TLRY reported last night was that it sold 2,053 kilos, which is three times that of last year. This combined with a 110% increase in revenues for the same period, which tells me that the company is executing well on its growth plans.

TLRY’s Chief Executive Officer Brendan Kennedy explained away the margin pressures by highlighting the expansion of its facilities. The company added seven new facilities, so the ramp-up time will keep profitability at odds until the revenues catch up to the expenses. Overspending is the necessary evil that growth companies have to endure.

Meanwhile, they maintain a relatively healthy balance sheet with $500 million in cash. This will ensure that they are able to pursue their next focus areas in the U.S. and Europe. This is not only by targeting the recreational legalization trends, but this also includes making the CBD and medical applications.

Bottom Line on Tilray Stock

In short, the company is succeeding in its mission, so Tilray stock should have more upside potential in the long run. Those who want to bet on its success for years to come need not to worry about the minutia of action here. Moreover, they are not going at it alone. Management struck a partnership with Anheuser-Busch InBev (NYSE: BUD), which validates TLRY’s efforts in my opinion. If it’s good enough for a massive company like BUD, then it’s good enough for the general investor.

Meanwhile, for those who prefer to trade the stock short term instead, the technicals can definitely provide a road map.

Year-to-date, TLRY stock came into the earnings event only up 2.4% compared to the S&P 500’s 12% for the same period. Clearly, the stock is stuck below $80 per share since December. Even worse is how TLRY compares to Canopy Growth (NYSE: CGC), Cronos (NASDAQ: CRON) and Aurora Cannabis (NYSE: ACB), which are up 70%, 108% and 100%, respectively, for the same period.

The overnight bounce in Tilray stock brought it into potential resistance. The area around $76 to $78 per share has been pivotal for months. This usually creates resistance as both bulls and bears want to win the battle there. In January, the TLRY bulls were able to overcome it, but only for a few days. Unlike the stock market in general, TLRY has failed to recover the ledges from which they crashed into the Christmas correction.

Specifically, $77.50 is my area of interest. If they close TLRY above it and successfully retest it for footing, I’d consider it an opportunity to trade the upside potential to recover the January highs. But even then, there are areas of resistance here and at $82 per share. So I would need to see a clear breach of the first line of resistance before I chase it long.

As for support, the bears could get more of an upper hand if they can break through $70 per share. Oddly enough, Tilray stock retested its December lows just a few days ago. This is happening while the S&P 500 is still on a tear. The wound is still fresh. Below it, there is a trap door to the mid-fifties. This is not a forecast, but merely one of the available scenarios at hand.

It is best to wait for the break out from the zones noted before chasing either the upside or the downside potentials.

As of this writing Nicolas Chahine did not hold a position in any of the aforementioned securities.

 


StaffStaffMarch 21, 2019
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10min2670

Guest Post by James Brumley, InvestorPlace Feature Writer

Credibility. Without it, a growing company in a competitive arena is lost. With it, it can be a steamroller.

Not that Aurora Cannabis (NYSE: ACB) was lacking credibility, but now that it has activist investor Nelson Peltz on board as an advisor, the budding company has much more than it did. ACB stock jumped 14% last Wednesday, ultimately because the hedge fund manager will help Aurora speak with all the right people that can help take the organization to the proverbial next level.

Other reasons were cited for the big jump in Aurora Cannabis stock, and those weren’t necessarily wrong. But, it’s the sudden jolt of Peltz-related credibility that fueled the move.

And yes, for some investors who still weren’t quite convinced, this could be enough of a reason take a shot on Aurora Cannabis stock.

Missing Pieces

ACB has been something of an outlier among its pot peers, actually. Canopy Growth (NYSE: CGC) last year attracted Constellation Brands (NYSE: STZ) as a major stakeholder. Cronos Group (NYSE: CRON) is in bed with Altria Group (NYSE: MO) which now owns 45%. Aurora doesn’t have a major partner yet.

The reasons why aren’t exactly clear. The Canadian company has as much to offer an aspiring cannabis player as Cronos or Canopy Growth.

Those reasons, however, are also now irrelevant. Peltz has already dropped hints that he intends — as Aurora is tacitly hoping — to set up deals.

“I look forward to working with Terry (CEO Terry Booth) and the extended Aurora team to evaluate its many operational and strategic opportunities,” Peltz commented in the official statement, adding “including potential engagement with mature players in consumer and other market segments.”

Cowen analyst Vivien Azer agrees, writing of the news: “Peltz brings a network of relationships with large potential strategic companies that ACB could partner with across medical and consumer applications. In addition, we think ACB will be more patient in partnership selection than its peers, particularly regarding equity investment.”

Some investors are particularly celebrating the fact that Peltz brings a wealth of experience within the food and consumer goods segment.

Trian [Peltz’s hedge fund] has been involved with a number of consumer packaged goods companies such as PepsiCo (NASDAQ:PEP), Keurig Dr Pepper (NYSE:KDP), Procter & Gamble (NYSE:PG), Kraft Heinz (NYSE:KHC), Mondelez (NASDAQ:MDLZ), among others, noted GMP Securities consumer goods analyst Martin Landry, who upgraded ACB stock following the announcement. Landry goes on to explain: “We believe he could be instrumental in facilitating discussions with large consumer packaged goods companies.”

The two upsides are just the tangible manifestations of a much-bigger benefit Peltz brings to the table, however.

Credibility (and Motivation)

While Altria and Constellation are recognizable brand names, neither are established as dealmakers. Their interest in cannabis is largely self-serving, and their plans for their partnership are limited to the development of cannabis-based products.

Not so for Nelson Peltz and Aurora Cannabis. He’s a known dealmaker that some companies and many investors like to see get involved, especially when the potential value has been locked up for too long.

Peltz is also not limited to creating synergy between just two organizations. He’s willing and able to establish as many partnerships with as many entities as possible, without stirring up concerns that he may be building up his partners’ competitors as well. He will be doing that, but at least all partners know where they stand, and that Aurora is looking to become a supplier to multiple customers. There’s room for all of them, and Peltz will be able to make introductions ACB couldn’t on its own.

Perhaps more than anything else, however, Peltz wants the same thing existing Aurora Cannabis stockholders want — for the share price to rise. He’s being granted options for up to nearly 20 million shares of ACB stock at $7.74 a share, vested gradually over the next four years.

So, Peltz doesn’t make any real money unless the stock performs well.

Bottom Line for ACB Stock

Don’t misread the message. While this is certainly a big win for Aurora, the company remains a risky proposition for multiple reasons.

One of them is that cannabis remains illegal at the federal level in the United States despite widespread state-level legalization. Pot’s future, and the future of all its derivatives is still a bit dazed and confused.

There’s also the not-so-small reality that cannabis and now cannabis-based products are quickly becoming a commodity, which could crimp margins for the debt-laden Aurora.

Nevertheless, if Peltz can pull the right strings — and he’s certainly got strings to pull — the bullish case for Aurora Cannabis stock is bolstered. It’s not a reason in and of itself to buy the shares. But, for investors on the fence about stepping into a position, the hedge-fund player’s news may be even bigger than the market realizes.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

 


StaffStaffMarch 20, 2019
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5min1350

It’s time for your Daily Hit of cannabis financial news for March 20, 2019.

On The Site

The Top 12 Cannabis MSO’s

Green Market Report has compiled a list of some of the largest MSO’s in the country. Many of the companies are in the middle of major acquisitions which haven’t technically closed, which makes ranking these companies difficult. These deals are being recognized for the most part and included in the company statistics. It’s also challenging to define which company is the largest as that depends on the metric being reviewed. Active states versus licensed states or operational dispensaries versus square footage of cultivation.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) reported its financial and operating results for the fourth quarter and full year ended December 31, 2018 after the market close on Wednesday. The fourth quarter total revenue of $32 million increased 49% sequentially and 408% over the 2017 fourth quarter. Curaleaf delivered a net loss of $16.5 million, a steep drop from the previous quarter’s loss of $33 million, but the company reported a gain of $600k in the fourth quarter of 2017.

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) signed a multi-year processing and extraction agreement HollyWeed Manufacturing & Extracts Inc. HollyWeed NorthCannabis Inc. is the parent company of HollyWeed Manufacturing & Extracts Inc., which is a female-led, LGBTQ2-positive company based in British Columbia that operates several subsidiaries specializing in the growth, manufacturing, licensing, and production of cannabis and other pharmaceutical grade products.

In Other News

Vireo Health

Vireo Health International, Inc., a multi-state cannabis company, listed on the Canadian Securities Exchange under the stock symbol, VREO. Vireo Health becomes the first multi-state medical cannabis company to go public this year. The company has grown to over 250 employees, operates in six states and manages a rapidly expanding national footprint of manufacturing facilities and retail dispensaries that will total 11 states year’s end. Vireo Health is one of the only physician-founded, physician-led cannabis grower/processors in the country.

Greenlane

Greenlane Holdings, Inc., a leading distributor of premium vaporization products and consumption accessories, announced that it has publicly filed a registration statement on Form S-1 with the Securities and Exchange Commission related to a proposed initial public offering of Class A common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Greenlane has applied to list its Class A common stock on the Nasdaq Global Market under the symbol “GNLN.”

DionyMed Brands Inc. 

DionyMed Brands Inc.  (CSE: DYME) signed a binding term sheet with MM Esperanza 2 LLC, doing business as “MMAC,” to acquire select MMAC assets, including the 1.83 acre Los Angeles cannabis campus that includes a dispensary storefront, distribution facility, manufacturing hub and direct-to-consumer fulfillment center. The acquisition includes all property, leaseholds, equipment and licenses for a purchase price of $19 million and enhances DionyMed’s brands distribution and direct-to-consumer footprint in Southern California.

Bangi

BANGI, Inc. (OTC: COBI), a diversified investment vehicle that acquires and leases specialized real estate assets, such as cannabis farms, announced that it expects its reporting status to be upgraded to “Current Information” on the OTC Pink Market, the highest level of the OTC Pink Market.  The Company expects to apply for a new ticker symbol with FINRA and corporate name change immediately following this expected upgrade.


StaffStaffMarch 19, 2019
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6min1260

It’s time for your Daily Hit of cannabis financial news for March 19, 2018.

On The Site

Canopy Rivers

Canopy Rivers Inc. (TSXV: RIV) is teaming up with LeafLink, Inc. to create LeafLink Services International ULC. The new venture will exclusively license and leverage LeafLink’s dominant business-to-business (B2B) marketplace and supply chain technology platform for deployment throughout regulated international cannabis markets.

In order to get the venture off the ground, LeafLink has made an initial capital commitment of $1 million along with an exclusive, royalty-free license for all non-US marketplaces for their proprietary B2B software platforms and service solutions. In addition to that, Canopy Rivers has committed an initial equity investment of $2 million. Canopy Rivers also has an option to invest an additional $6 million.

MJIC

California-based  MJIC, Inc. successfully closed a private round of financing resulting in gross proceeds of U.S. $15 million. The company said it is planning on becoming a publicly traded company in 2019 and recently entered into a financial advisory agreement with Haywood Securities.

“This financing will significantly accelerate our growth strategy as we continue to build MJIC’s integrated distribution and retail platform across the entirety of the cannabis ecosystem,” said Sturges Karban, Chief Executive Officer and Board Member of MJIC.

In Other News

Grassroots

Grassroots launched its convertible note financing round on December 3, 2018, with the intent to raise at least $40,000,000 in proceeds. Due to strong demand, the financing round was ultimately increased to accommodate $90,000,000 of subscriptions. By successfully completing this round of funding, Grassroots has solidified its already strong financial position, which includes $165,000,000 of total equity and equity-linked securities raised to date.

“We believe this capital raise now makes Grassroots the largest privately held cannabis company in the U.S.,” said Mitch Kahn, CEO, and Co-Founder. “Our growth is a testament to our team’s collective strategic vision and execution of building an integrated business model that enhances the communities which we serve.”

The planned use of the proceeds from the convertible note raise will support the build-out of Grassroots existing 11 state platform, as well as M&A and growth initiatives.

Valens

Valens GroWorks Corp. (CSE: VGW)  entered into an agreement with AltaCorp Capital Inc. under which AltaCorp has agreed to purchase, as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters, including GMP Securities L.P., and Raymond James Ltd., Haywood Securities Inc., and Mackie Research Capital Corp., on a bought deal basis, 10,169,492 units of the Company at a price of C$2.95 per Unit, representing aggregate gross proceeds to Valens of approximately C$30 million.

Aleafia

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF)  said that its common shares began trading today on the Toronto Stock Exchange. The common shares will continue to trade under the symbol “ALEF.” Upon listing on TSX, Aleafia Health will also become a reporting issuer in the Province of Ontario.

Isodiol

Isodiol International Inc. (CSE: ISOL) (OTCQB:ISOLF) stock was halted in trading briefly as the company announced the launch of its products with Holland & Barrett International, beginning with an initial order of ten SKUs of hemp-extract based cannabidiol (CBD) products from the company’s RapidCBD™ and Iso-Sport™ brand catalogs for more than $1 million.

The launch has commenced online and more than 45,000 units are expected to be available in up to 800 Holland & Barrett stores by the end of March 2019 throughout the United Kingdom and the Republic of Ireland.  Holland & Barrett is the largest health and wellness retailer in Europe, operating more than 1,300 stores, 10 million customer loyalty program members, and $800 million in annual revenues.


StaffStaffMarch 19, 2019
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4min1510

Canopy Rivers Inc. (TSXV: RIV) is teaming up with LeafLink, Inc. to create LeafLink Services International ULC. The new venture will exclusively license and leverage LeafLink’s dominant business-to-business (B2B) marketplace and supply chain technology platform for deployment throughout regulated international cannabis markets.

In order to get the venture off the ground, LeafLink has made an initial capital commitment of $1 million along with an exclusive, royalty-free license for all non-US marketplaces for their proprietary B2B software platforms and service solutions. In addition to that, Canopy Rivers has committed an initial equity investment of $2 million. Canopy Rivers also has an option to invest an additional $6 million.

For the uninitiated, LeafLink is a software-as-a-service (SaaS) marketplace that simplifies the supply chain through its e-commerce platform. The company has a growing network of more than 950 cannabis brands, and penetration throughout ~2,800 cannabis retailers across 16 territories in the United States.

Retailers use LeafLink for managing their wholesale inventory, enabling them to shop multiple vendors in one cart, view up-to-date product and brand menus, review historical and open orders, discover new products, and request samples. LeafLink further serves vendors by offering supplementary tools such as order management, customer relationship management (CRM) platform, inventory tracking tools, and customized reporting systems, among other services.

“We have been very impressed with LeafLink’s deep market penetration and their understanding of cannabis companies’ needs and behaviors,” said Narbé Alexandrian, President of Canopy Rivers. “The number of brands and products within our new cannabis economy has been explosive, making it difficult for retailers to deal with multiple parties in an increasingly fragmented market. As regulated cannabis consumption and distribution proliferates around the world, LeafLink International will introduce the industry’s leading SaaS-enabled marketplace to the global stage to create a new standard for expediting the cannabis supply chain in regulated markets.”

By creating this new joint venture, Canopy Rivers will continue to expand its exposure across the cannabis value chain through a capital-light, market-leading B2B platform that is immediately scalable across legal jurisdictions. Canopy Rivers said it intends to integrate its network of complementary cannabis companies and global reach to drive growth for LeafLink International and assist in developing and deploying this technology as it continues to increase its global footprint.

“We are excited to join forces with Canopy Rivers – combining our industry-leading, B2B marketplace technology with their expertise and strategic network in the global cannabis market,” said Ryan G. Smith, CEO, and Co-founder of LeafLink. According to the company statement, LeafLink and Canopy Rivers hold approximately 82% and 18%, respectively, of LeafLink International after the initial transaction. LeafLink is backed by venture capital firms and strategic investors such as Lerer Hippeau, Nosara and Casa Verde Capital, LeafLink has raised more than $14 million to date.


StaffStaffMarch 18, 2019
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3min1130

It’s time for your Daily Hit of cannabis financial news for March 18, 2019.

On The Site

Tilray

Tilray Inc. (TLRY) delivered its full year and fourth quarter results on Monday after the closing bell. The stock initially dipped, but then reversed course to move higher by 3% to lately trade at $74.50.

Fourth Quarter

Revenue increased to $15.5(C$20.9) million, up 203.8% compared to the fourth quarter of last year and beating the Yahoo! Finance analyst average estimate for $14.15 million. The company said that revenue was driven by bulk sales, inaugural sales in the Canadian adult-use market and accelerated wholesale distribution in export markets.

Estimates were all over the map with lows at $12 million and highs at $18 million. The company was facing criticism over inventory issues for the fourth quarter as demand for adult use cannabis surprised most cannabis companies in Canada. Tellingly, the company sent out a tweet right before the earnings were released saying that its inventory levels were all stocked up.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA / OTCQX: CURLF) is acquiring Nevada-based Acres Cannabis in a deal valued at $70 million that is expected to close in 2019. According to the company statement, Acres operates Nevada’s largest cultivation facility, a state-of-the-art production and extraction lab and an immersive cannabis dispensary located in the city of Las Vegas, adjacent to the Strip, with a second dispensary under construction.

The acquisition is valued at $70 million, with $25 million to be paid in cash, $45 million to be paid in Curaleaf stock and additional consideration to be paid if certain financial targets are exceeded.

 In Other News

TerrAscend

Fourth TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) reported fourth-quarter revenue that increased to CAD$4.8 million and full year revenue ending December 31st, 2018 of and CAD$6.6 million.

“We are thrilled with what we accomplished in 2018, and we are seeing increasing momentum across our businesses thus far in 2019. Our sales in Canada have been strong since the October launch of the adult-use market, and our Haven St. Premium brand is clearly resonating with provincial distributors and consumers,” said Matthew J. Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc.

 


StaffStaffMarch 14, 2019
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6min2640

Groundbreaking Sponsorship Opportunity for Cannabis, Hemp, CBD Brands to Reach A Massive Audience

New York, NY – March 14, 2019 /AxisWire/ 420MEDIA, a NYC and Seattle based woman-owned digital marketing and media agency serving the legal cannabis industry, working with Emmy-nominated producers have announced the summer premiere of two original series. Movers and Shakers, introduces audiences to innovators, artists, creators, entrepreneurs in technology, science, manufacturing and design behind cannabis, the number-one growing industry in the world.

The Movers and Shakers series is an educational and entertaining trip spotlighting both men and women who are changing the way audiences view, partake and cure with the oldest medicinal herb on the planet: cannabis.

The second series, “5thQuarter”, hosted by former super bowl champion and cannabis advocate Marvin Washington is about athletes and what happens after the game.

According to the series creators, these two groundbreaking series will present an unprecedented opportunity for cannabis, hemp, and CBD brands to reach massive exposure alongside the influencers in cannabis with commercial placement that will live in the series.

Kerri Accardi, the series creator of Movers and Shakers in Cannabis and CEO of 420MEDIA, said “We are ecstatic to present a historic opportunity for cannabis brands to get beyond the four walls of a trade show, conference, or a page in a magazine. Being featured in these series will give industry sponsors digital assets with promotion and PR like they’ve never experienced. This will change people’s perceptions about cannabis and bring brands to market at a fraction of the cost or pain of trying on their own. Now we’re offering cannabis, hemp and CBD brands the opportunity to reach the people that really need their products and services. It’s time! “

Breaking Barrier by Air on Prime Time 

The 420MEDIA team has already broken through the advertising barriers facing cannabis brands. Last year, the agency launched a media blitz campaign, that aired on a number of :30 commercial spots during prime-time programming on stations including BRAVO, Discovery and the History Channel in the greater LA market.   The agency broke new ground in 2019 when the firm managed to air its cannabis education ads during the much-coveted Super Bowl LIII broadcast. Featuring the Rastafarian Senator who led the fight for legal cannabis in the U.S. Virgin Islands, the spot is the first in a series for the cannabis online TV network Hmm Did You Know (HDYKshowcasing prominent voices from the cannabis industry and community.

A total of twelve :30 commercial spots aired during Super Bowl LIII programming on the USVI CBS affiliate, marking the first broadcast of a cannabis-centric public service announcement during NFL programming. The roll out also included airing during the 91stAcademy of Motion Pictures Arts and Science Oscar telecast, in both the US Virgin Islands and Puerto Rico.

About 420MEDIA
420MEDIA, a women-owned digital marketing agency with offices in New York and Seattle offers a unique combination of full-service digital marketing services, media distribution, and industry expertise. Our team’s experience allows 420MEDIA to provide the full range of services necessary to effectively craft and execute marketing strategy in the cannabis sector. To see our recent reel and our advertising packages, please visit http://www.420media.us

For information on sponsorship opportunities contact:

Lisa Beckerman

lisa@420MEDIA.us

425-420-0585

 

Links to videos:

5thQuarter

https://www.youtube.com/watch?v=Xnsotju76J4&feature=youtu.be

 

FOR VIDEOS: 

“5thQuarter” https://www.youtube.com/watch?v=Xnsotju76J4&feature=youtu.be

“Movers and Shakers in Cannabis”https://www.youtube.com/watch?v=BNjkKl2f3eY


StaffStaffMarch 13, 2019
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6min2410

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

On The Site

Acreage Holdings

Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) delivered fourth-quarter revenue of $10.5 million for an increase of 380% over the previous year’s $2.1 million. Acreage reported a whopping fourth-quarter net loss of $217.6 million. The pro forma revenue* for the fourth quarter was $22.9 million and the pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items, for the fourth quarter was $10.8 million.

The full year fiscal 2018 revenue of $21.1 million increased 173% over last year’s $7.7 million. The pro forma revenue*  was $77.2 million for the full year fiscal 2018. The full year fiscal 2018 net loss of $219.7 million was primarily driven by non-cash charges and non-recurring items. The pro forma adjusted net loss*, which excludes certain non-cash charges and non-recurring items was $30.3 million for the full year fiscal 2018.

IIPR

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2018. IIPR generated rental revenues of approximately $4.7 million in the quarter, representing a 111% increase from the prior year’s quarter and in line with the Yahoo! Finance analyst estimate.

IIPR recorded net income attributable to common stockholders of approximately $2.3 million for the quarter, or $0.24 per diluted share, and adjusted funds from operations (AFFO) of approximately $3.6 million, or $0.38 per diluted share. AFFO represented an increase of 344% from the prior year’s quarter.

HEXO

HEXO Corp. (TSX: HEXO) (NYSE: HEXO) is acquiring  Newstrike Brands Ltd. (TSX-V: HIP) in an all-stock deal valued at approximately $263 million. Newstrike shareholders will receive 0.06332 of a HEXO common share in exchange for each Newstrike common share held. There is a $7.5 million termination fee.

Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Newstrike, through Up Cannabis and together with select strategic partners, including Canada’s iconic musicians The Tragically Hip, is developing a diverse network of high-quality cannabis brands

In Other News

Village Farms International, Inc. (TSX: VFF) (NASDAQ: VFF)  announced its financial results for the fourth quarter and year ended December 31, 2018.Net income improved to positive US$0.3 million, or US$0.01 per share, and included the contribution of positive net income from Pure Sunfarms Corp. of US$2.8 million. This compares with a net loss of (US$0.6 million), or (US$0.02) per share. Sales, including the Company’s proportionate share of Pure Sunfarms’ sales, increased to US$40.6 million compared with US$36.9 million. EBITDA, was US$1.5 million compared with US$2.6 million. EBITDA included $0.9 million from Pure Sunfarms. Completed a bought deal offering of 3,097,200 common shares at a price of $7.13 per share (for aggregate gross proceeds to the Company of $22,083,036. The company’s common shares commenced trading on the Nasdaq Capital Market under the symbol “VFF” after being halted because the company thought it was DTC eligible and it wasn’t.

 

Lawmakers and regulators have signed off on new regulations explicitly permitting adults to consume cannabis at specially licensed retailers. “When these rules go into effect, Alaska will be the first state to finalize and approve statewide rules for on-site consumption. We expect more to follow suit in the not too distant future,” stated NORML Executive Director Erik Altieri, “Allowing social consumption is sensible from a business perspective, particularly for states with large amounts of tourists who otherwise have no place to legally consume, but it also has an important social justice component.”

Namaste Technologies Inc.  (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that it has completed the previously announced acquisition of 49% of the common shares of Toronto-based Pineapple Express Delivery Inc.

 

 


StaffStaffMarch 13, 2019
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3min2590

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2018. IIPR generated rental revenues of approximately $4.7 million in the quarter, representing a 111% increase from the prior year’s quarter and in line with the Yahoo! Finance analyst estimate.

IIPR recorded net income attributable to common stockholders of approximately $2.3 million for the quarter, or $0.24 per diluted share, and adjusted funds from operations (AFFO) of approximately $3.6 million, or $0.38 per diluted share. AFFO represented an increase of 344% from the prior year’s quarter.

The company paid its seventh consecutive quarterly dividend of $0.35 per share on January 15, 2019, to stockholders representing a 40% increase from the prior year’s quarter. IIPR also declared its eighth consecutive quarterly dividend of $0.45 per share, which is expected to be paid on April 15, 2019, to stockholders of record as of March 29.

In October 2018, IIP completed an underwritten public offering of 2,990,000 shares of common stock, including the exercise in full of the underwriters’ option to purchase an additional 390,000 shares, resulting in net proceeds of approximately $113.9 million.

After the quarter ended, IIPR’s operating partnership subsidiary completed a private of offering in February 2019 of $143.75 million aggregate principal amount of 3.75% exchangeable senior notes due 2024, which includes the exercise in full of the initial purchasers’ option to purchase additional Notes, resulting in estimated net proceeds of approximately $138.4 million.

The company gave the following update about its portfolio in a statement. As of March 13, 2019, IIP owned 13 properties that were 100% leased to state-licensed medical-use cannabis operators and comprising an aggregate of approximately 1,128,000 rentable square feet (including approximately 159,000 rentable square feet under development/redevelopment) in Arizona, California, Colorado, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New York, Ohio and Pennsylvania, with a weighted-average remaining lease term of approximately 14.3 years.

IIPR had invested $161.2 million in the aggregate (excluding transaction costs) and had committed an additional $37.7 million to reimburse certain tenants and sellers for completion of construction and tenant improvements at IIP’s properties.  IIPR’s average current yield on invested capital was approximately 15.1% for these 13 properties, calculated as the sum of the initial base rents, supplemental rent (with respect to the lease with PharmaCann LLC at one of IIPR’s New York properties) and property management fees (after the expiration of applicable base rent abatement periods), divided by IIPR’s aggregate investment in these properties (excluding transaction costs and including the aggregate potential tenant reimbursements of $37.7 million).

 



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