Staff, Author at Green Market Report

StaffStaffSeptember 17, 2019
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3min900

It’s time for your Daily Hit of cannabis financial news for September 17, 2019.

On The Site

CBD & FDA

According to the U.S. Hemp Roundtable,  Majority Leader Mitch McConnell (R-KY) introduced language on the Agriculture Appropriations bill that would require the FDA to issue formal “enforcement discretion” on the sale of hemp CBD products.  The FDA had suggested it would take them 3-5 years to decide on rules and regulations for CBD.

The group’s website posted that the US Senate Appropriations Subcommittee on Agriculture will “mark up” language submitted by Senator McConnell that would require the FDA to formally stand down on any enforcement of its troublesome anti-CBD guidance.

PLUS Products

Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) is kicking off a nationwide launch of its 100% hemp-derived CBD line and entertainer John Legend is partnering with the company. The celebrities joining the cannabis industry are getting bigger and brighter by the day.

“I have been a believer in the benefits of CBD for some time,” stated Legend. “I was drawn to the PLUS team because they’re an innovative, family-run company, and they use science to deliver a consistent, high-quality product. I appreciate that they’re committed to setting a high standard within an industry that has to date been fairly unregulated.”

TerrAscend

TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF)  has closed on its previously announced acquisition of Pennsylvania-based Ilera Healthcare, one of five permitted vertically-integrated cannabis cultivator, processor, and dispensary operators in the state. The company also reaffirmed its 2019 guidance of revenue in excess of C$141 million, which includes a contribution from the Ilera transaction and pending disclosed transactions, as previously announced on August 22, 2019.

“As one of only 5 holders of Super Licenses in a limited license state with approximately 13 million people, Ilera is an ideal partner for TerrAscend to enter the Pennsylvania market with,” said Matthew Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc. After the close of this acquisition, TerrAscend’s licensed cannabis footprint expands to four U.S. states, in addition to its global reach into Canada and Europe.

 


StaffStaffSeptember 16, 2019
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3min1070

It’s time for your Daily Hit of cannabis financial news for September 16, 2019.

On The Site

Cresco Labs

Cresco Labs Inc.  (CSE: CL) (OTCQX: CRLBF) has announced a plan to acquire Tryke Companies including six prime Reef Dispensary locations in Nevada and Arizona, expanded licensed cultivation and process capacity in Las Vegas and Phoenix and entry into the Utah market.

The purchase price is $282.5 million which includes $30 million in real estate assets. The payment is a mix of Cresco Labs shares (approximately US$227.5 million), which will be subject to a nine to 21-month lock-up agreement following closing, and cash (approximately US$55 million). The deal is expected to close during the first half of 2020

Missouri

Recently, in connection with the rejection of many medical marijuana facility license applications as “incomplete,” the Missouri Department of Health and Senior Services (DHSS) issued a Sample Ownership Visual Representation, which is a fancy name for a sample organizational chart, “[f]or assistance with the Ownership Structure Form” included in DHSS’ standard marijuana facility application packet.

The big problem with this Sample is it shows – as a state example of how a Missouri marijuana licensee should be organized – a corporation (GrowMo, Inc.) existing as the majority owner of the licensee, which is an organizational structure unequivocally barred by the plain language of Article 14 of the Missouri Constitution.

In Other News

Jushi Holdings

Jushi Holdings Inc. (NEO: JUSH.B), a globally- focused, multi-state cannabis and hemp operator, has signed a definitive agreement to acquire 80% of the economic and voting interests in Agape Total Health Care Inc (“Agape”), pending applicable regulatory approvals. Through the acquisition, Jushi will acquire a majority ownership in Agape, a Pennsylvania Dispensary Permittee. Agape plans on opening three retail locations in the Philadelphia region, Reading and Pottsville.

“With the closing of the Agape transaction, Jushi will have completed its participation in the maximum number of permitted retail locations in Pennsylvania, a key limited license market on the East Coast,” stated Jim Cacioppo, CEO and Chairman of Jushi. “Upon closing of this transaction, we will operate five retail locations under the BEYOND/HELLO brand with a plan to open four more during the fourth quarter of 2019. All of these locations and the additional six to be opened are located in densely populated, high traffic communities. Quickly achieving a strong presence in a limited license medical market such as Pennsylvania continues to execute our broader retail strategy.”


StaffStaffSeptember 5, 2019
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9min3570

Editors note: Guest post bThomas Niel Aug 30, 2019, 2:24 pm EDT

Smoke-free cannabis products could be Hexo’s ticket to success

Hexo (NYSE: HEXO) stock has traded sideways this month. Shares rose from $3.98 on July 29 to as high as $4.95 on Aug. 13. But since mid-August, shares have fallen back, closing at $3.94 per share on Aug. 29. Compared to its larger peers, shares have held steady.

Shares in Canopy Growth (NYSE: CGC) are down more than 28% for the month. Aurora Cannabis (NYSE: ACB) stock has fallen roughly 12.7% since late July. Hexo is becoming increasingly focused on “smoke-free” uses (beverages, edibles, etc.) than its peers. Focusing on this niche could be its key to success.

With infused beverages hitting the market later this year, should investors take a position in HEXO ahead of this product launch? Or should investors take heed, given shares continue to trade at a high valuation? Let’s take a closer look at Hexo stock.

TAP Partnership Provides Scale with Minimal Dilution

As I discussed in my prior article, expectations for cannabis-infused products drive the Hexo stock price. The company has partnered with Molson Coors (NYSE: TAP) to launch Truss. Truss is Hexo’s line of non-alcoholic, cannabis-infused beverages. This strategic partnership gives the company a greater chance of success in this space. With Molson Coors’s scale and infrastructure, Truss can be rolled out more efficiently.

Another positive of this partnership is the structure. So far, strategic partnership deals have been highly dilutive to cannabis company investors. With Canopy Growth, Constellation Brands (NYSE: STZ) has quietly taken over the company. This also happened with Cronos (NASDAQ: CRON) and its partner Altria (NYSE: MO).

Molson Coors received warrants as part of the deal, but the partnership is structured as a joint venture. Molson Coors owns 57.5%, with Hexo owning the remainder. This may limit upside if infused beverages are a success. But it limits Molson Coors’s control over the entire company. Molson Coors’s warrants only give it the right to buy 11.5 million shares at a strike price of $6 a share. With 256.9 million shares outstanding, and 50.9 million warrants outstanding, this hardly gives Molson Coors control over Hexo’s destiny.

Other catalysts could move the Hexo stock price. The company’s strategy focuses on “smoke-free” cannabis products. This includes edibles, vapes, wellness products, and cosmetics. Selling plain old pot is a commodity business. The opportunity to develop high-margin brands is the key to long-term profitability.

Hexo is no slouch when it comes to selling pot. The company remains Quebec’s biggest supplier. The recent acquisition of Newstrike Brands helps scale up their cultivation infrastructure. But is all of this reflected in the Hexo stock price? Let’s take a look at how the stock’s valuation stacks up to peers.

COMPARE BROKERS

Hexo’s Valuation in Line With Peers

Using the Enterprise Value/Sales (EV/Sales) ratio, the company trades in line with peers. The company’s current EV/Sales ratio is 36.4. Compare this to Aurora Cannabis (EV/Sales of 45.6), Canopy Growth (EV/Sales of 35.3), and Cronos (EV/Sales of 98.5). An EV/Sales ratio of over 30 is still a rich valuation.

The expectations of Truss and other products inflate the Hexo stock price. Investor enthusiasm has tapered off, as seen from the 53% drop from its all-time high in April. If Truss is a success, Hexo stock should see a massive boost. But with the current rich valuation, additional declines are a risk. If investors lose faith in Hexo shares could fall much further.

So what does this mean for investors entering the stock today? Cannabis shares have been beaten down. But marijuana stocks have yet to trade at fire-sale prices. It’s impossible to predict the unpredictable. Only time will tell if we have reached a bottom in cannabis stock valuation. But long term, investors may be getting a bargain entering Hexo stock at the current trading price.

Hexo Has Potential, but Tread Carefully

Hexo stock offers a unique opportunity for cannabis investors. While its competitors try to dominate the smoked marijuana space, Hexo is going “smoke-free.” Focusing on beverages, edibles, and other cannabis-infused products, the company could find riches in niches. Their partnership with Molson Coors is a conservative way to get scale without sacrificing much equity. Unlike its larger peers, Molson Coors is in no position to quietly take over the company.

The Hexo stock price remains inflated. Investors are betting on the company’s future potential. Long-term, shares could see big gains. Short-term volatility is a risk. Keep HEXO on your radar, but tread carefully before entering a position.

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

 


StaffStaffSeptember 4, 2019
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6min2540

It’s time for your Daily Hit of cannabis financial news for September 4, 2019.

On the Site

Aurora Cannabis

Aurora Cannabis Inc.  (NYSE | TSX: ACB) sold off its final 28,833,334 shares of The Green Organic Dutchman Holdings Ltd (CSE: TGOD) (OTC: TGODF) at a price of $3.00per share for gross proceeds of roughly $86.5 million. The stock was lately trading at C$3.51 on the CSE and $2.63 on the OTC. The share represents 10.5% of the issued and outstanding shares of TGOD.

The investment turned out to be a winner for Aurora. The company said that the sale represented an approximate 50% internal rate of return for the company. Aurora said it no longer holds any shares of TGOD, but it does continue to hold warrants to purchase 16,666,667 shares of TGOD.

More Aurora

Are ACB’s sales being affected by the robust black market? I think the answer is yes.

Aurora Cannabis (NYSE:ACB) has a well-defined path to profitability. Its near-term goal is to drive down costs by leveraging its massive scale to improve margins. Its medium-term goal is to leverage R&D to work on higher-margin products and to harvest the Canadian cash flow that is generated from its near-term goals. Long-term, the goal is to use extensive R&D to develop and brand higher-margin products.

Wall Street likes ACB stock. Out of the 17 firms that follow it, 10 of them have it ranked either as a buy or overweight. The average target price is more than two times higher than where it is currently trading.

Time To Buy

I have a very strong gut feeling right now, and it’s related to the big opportunity in marijuana stocks. I have been recommending marijuana investments since 2014, well before most analysts. Many of my early recommendations have soared hundreds … even thousands of percent. A colleague of mine even refers to me as “The Original Marijuana Stock Bull.”

Recently, though, some may have questioned my bullish thesis. My long-term view has never wavered, but marijuana stocks have gotten hammered in the last few months. Since hitting a yearly high in March, the ETFMG Alternative Harvest ETF (NYSEARCA: MJ) is down 40%. The weakness has turned even some of the biggest marijuana bulls into doubters, but I think the current pullback represents one of the best buying opportunities we may see for some time if you want to invest in one of the fastest-growing sectors in the world.

In Other News

WeedMD

WeedMD Inc. (TSXV:WMD) entered into an agreement with Mackie Research Capital Corporation as the lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters, including Haywood Securities Inc., pursuant to which the Underwriters have agreed to purchase, on a bought-deal basis, 10,000 convertible debenture units for gross proceeds to the Company of $10,000,000 at a price of $1,000 per Debenture Unit.

Diego Pellicer

Diego Pellicer Worldwide, Inc. (OTCQB: DPWW), the premium marijuana brand and development company, today announced that it has executed a letter of intent to purchase a cannabis retail store in Denver. The 3,300 square-foot retail location is projected to have gross sales exceeding $8.5 million in 2019 and $9.5 million in gross sales in 2020.

“This is a critical milestone for Diego Pellicer Worldwide. The execution of the LOI in Colorado is the first step in the evolution of our business model. We are delivering on our commitment to become a vertically integrated premium cannabis company. We look forward to working with the Colorado Marijuana Enforcement Division to garner approval for Diego Pellicer Worldwide to become a fully licensed cannabis company, that includes direct ownership in cannabis operations,” said Ron Throgmartin, chief executive officer, Diego Pellicer Worldwide, Inc. “For Diego Pellicer Worldwide to continue to grow, we need to pursue these new avenues of ownership as well as branded cannabis products that will be available at company stores and beyond its branded retail locations.”


StaffStaffSeptember 4, 2019
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5min2230

Editors note: Guest post by Mark Putrino, CMT Sep 3, 2019, 10:05 am EDT

Are ACB’s sales being affected by the robust black market? I think the answer is yes.

Aurora Cannabis (NYSE:ACB) has a well-defined path to profitability. Its near-term goal is to drive down costs by leveraging its massive scale to improve margins. Its medium-term goal is to leverage R&D to work on higher-margin products and to harvest the Canadian cash flow that is generated from its near-term goals. Long-term, the goal is to use extensive R&D to develop and brand higher-margin products.

Wall Street likes ACB stock. Out of the 17 firms that follow it, 10 of them have it ranked either as a buy or overweight. The average target price is more than two times higher than where it is currently trading.

In addition, unlike many of the other large industrial growers, this company reported an actual profit last year, something that is rarely seen in this industry. In fiscal 2019, the company earned 15 cents a share.

Despite all of these positives, the price of ACB stock continues to decline. Why is this happening? Being a veteran of the markets I know that it is impossible to give an exact and definitive reason.

But I believe that a challenge facing Aurora Cannabis and other cannabis growing companies which isn’t discussed too often is the negative effect that the supply from the black market has on their sales.

The Black-Green Market

If you follow the cannabis markets you are probably aware that two recent stories involve litigation issues other than legalization. Canntrust (NYSE:CTST) is alleged to have operated unlicensed, and therefore untaxed and illegal, grow rooms. These were literally hidden behind fake walls.

In addition, the FBI just announced that it will be investigating the industry. Sources tell me that their main focus will be on the alleged kickbacks that are required in some places in order to obtain a growing license. I believe that their investigation will expose and shed light on the enormous size of the black market of cannabis.

Is the cannabis black market efficient and profitable? You bet it is. As someone who has many connections in law enforcement and the cannabis industry, I can tell you that the black market for recreational cannabis is enormous. And this market is virtually, if not literally, impossible to control.

Consider a cannabis farm of 2,000 acres. You don’t need a vivid imagination to understand how easy it will be for employees and others to walk off with product or to send it out the proverbial back door. In fact, I have talked to recreational marijuana enthusiasts in Canada that enjoy it daily. Yet none have purchased it from a licensed retailer since it became legal almost a year ago.  Why go to the store when someone in the park across the street has the same thing for half the price?

As long as these dynamics exist, industrial growers like Aurora Cannabis will have to accept and face this challenge as part of their growth strategies.

A Look at Aurora Cannabis Stock

ACB stock has been trending lower since it failed at resistance at the $7 level in early August. If it continues to trend lower, there may be support around the $5 level. This is where support was in December and January and it is also important psychologically.

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

 


StaffStaffSeptember 4, 2019
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8min2570

Editors Note: Guest post by  Matt McCall, Editor, MoneyWire Aug 29, 2019, 4:45 pm EDT

Let me be clear: I try to limit emotions when it comes to investing. I’m a research fanatic, and I always go first to the big-picture trends, data, and face-to-face conversations.

But I’ve also learned not to ignore my gut feelings, especially when they have data to back them up.

That wasn’t always the case. Like anything else, my “gut” has gotten better the longer I’ve invested. After 20 years in this business, my intuition tends to be correct.

I have a very strong gut feeling right now, and it’s related to the big opportunity in marijuana stocks.

I have been recommending marijuana investments since 2014, well before most analysts. Many of my early recommendations have soared hundreds … even thousands of percent. A colleague of mine even refers to me as “The Original Marijuana Stock Bull.”

Recently, though, some may have questioned my bullish thesis. My long-term view has never wavered, but marijuana stocks have gotten hammered in the last few months. Since hitting a yearly high in March, the ETFMG Alternative Harvest ETF (NYSEARCA: MJ) is down 40%.

The weakness has turned even some of the biggest marijuana bulls into doubters, but I think the current pullback represents one of the best buying opportunities we may see for some time if you want to invest in one of the fastest-growing sectors in the world.

That’s why I tweeted this last week:

“Are we supposed to use our feelings and emotions in investing?” someone replied. “Hope it turns out right for you.”

That’s why I wanted to write about this subject. I was sharing a feeling I had at a moment when I didn’t have a lot of data at my fingertips. But there are strong indicators to back up my gut feeling.

Take a look at the chart of the EFTMG Alternative Harvest ETF below. Notice how the ETF is near a double bottom at its December low just above $23. A double bottom is a bullish pattern and usually signals a reversal to the upside.

Then there’s the relative strength index (RSI), located at the bottom of the chart. The RSI measures overbought and oversold conditions. A reading above 70 indicates a stock is overbought, while a reading below 30 indicates that it is oversold.

You can see how many times MJ has bounced when the RSI got down to 30, and it is now just below 26. That’s a strong signal that the recent selling is overdone.

It also puts the ETF extremely close to an RSI Crossover, which is when the indicator crosses back above 30 into neutral territory. This is one of my favorite technical buy signals. I’ve made good money over the years thanks to it.

The Upside Is Endless

There is so much negativity in the marijuana sector right now that even some of the long-term bulls have joined in on the selling. That short-sightedness costs them. Every high-growth, early-stage investment theme sees times of both parabolic rallies and sizeable pullbacks.

This happened on the internet … biotech … emerging markets … you name it. And it’s what we’re seeing now with marijuana.

But history shows that these are the BEST times to buy.

I’m not trying to call a bottom — that’s not only irresponsible, but it’s also nearly impossible and just plain foolish. But I am saying there is a lot more upside in the best cannabis stocks than downside.

According to Arcview Market Research and BDS Analytics, global sales of legal marijuana will increase from $10.9 billion in 2018 to $40.6 billion in 2024. Where else can you find an industry that is expected to grow 272% in six years?

The majority of those sales will come from North America, but here’s the kicker. Those projections assume that marijuana will remain federally illegal in the U.S. You know that I firmly believe legalization is coming far sooner than most expect, which means those estimates are too low and could, in fact, be closer to $60-$80 billion.

According to Echelon Wealth Partners, the legal cannabis market in the U.S. alone could be worth $60 billion if the federal prohibition is repealed. To put that into perspective, the vitamin/supplement market is worth $28 billion and the beer industry is worth $110 billion.

So don’t get caught in the herd of doubters running for the hills. The long-term story is intact, and today is the day to buy. Not tomorrow … not next month … not next year. By then, the big money will have already been made.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.


StaffStaffSeptember 3, 2019
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7min1920

It’s time for your Daily Hit of cannabis financial news for September 3, 2019.

On The Site

CBD

A new report from BDS Analytics titled “The Global Cannabinoids Market: Will CBD Overtake THC?” is forecasting that CBD sales will reach $20 billion by 2024. This would account for nearly 44%  of the $45 billion total forecasted
cannabinoid market (which includes legal cannabis).

Cannabidiol or CBD is a natural compound found within the cannabis plant. The report notes that CBD was first extracted from the cannabis plant in 1940, but it wasn’t until 1946 that Dr. Raphael Mechoulam identified the structure of CBD and later discovered properties within the compound to treat epilepsy. Since that time, the FDA approved the GW Pharmaceutical CBD drug Epidiolex for use in treating rare forms of epilepsy. Congress also passed the 2018 Farm Bill, which legalized help and set off a tsunami of hemp-derived CBD products onto the marketplace.

Netherlands

Reforms to the Netherland’s opaque cannabis laws are finally underway after an agreement was struck on a four-year trial to provide cafes with a legal and regulated supply of the product.

Under existing law, cannabis can be sold over the counter in licensed coffee shops, but it is illegal to produce and supply the drug.

From 2021, 10 areas will acquire a legal supply of top quality cannabis from regulated producers for their cafes, in a bid to reduce black market activity.

In Other News

GrowGeneration

GrowGeneration Corp. (OTCQX: GRWG), has purchased the assets of Grand Rapids Hydroponics (GRH), with 1 location in Grand Rapids, MI. Following the acquisition, GrowGen now has 4 retail and warehouse locations in the Michigan market. 3rd Quarter Revenue is Tracking in Excess of $20 Million

“Grand Rapids Hydro marks our 7th acquisition in 2019, adding an accretive $8.0 Million in revenue to our Company. GRH, strategically located in Grand Rapids, MI., adds one of the largest and highest volume hydroponic garden centers in the country. Further, this acquisition positions the Company to service the ever-growing Michigan market.  GRH has a seasoned team and we are excited that the founder, Christopher Nicholson will be continuing in an executive sales and business development role for GrowGen.”

Golden Leaf

Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) announced that Jeffrey Yapp will succeed John Varghese as CEO of Golden Leaf Holdings. Upon the resignation of Gary Zipfel on September 2, Mr. Yapp joined the Board of Directors. Mr. Varghese, who served as Interim CEO, will transition to the role of Executive Chairman and lead all capital markets related activities.

Rick Miller, current Chairman of the Company’s Board of Directors stated, “We are enthusiastic about the wealth of experience, innovative thinking and consumer-oriented vision that Jeff will bring to the role of CEO. The Board remains confident in the great potential and growth prospects for Golden Leaf Holdings.  We want to thank John Varghese who stepped up to lead Golden Leaf through this transitional phase, for his professionalism and leadership over the last few months. As John takes on the role of Executive Chairman, I will continue to work closely with both gentlemen as the Company’s lead director.”

TGOD

The Green Organic Dutchman Holdings Ltd.  (TSX:TGOD) (US:TGODF) has obtained approval from Health Canada, under the Cannabis Regulations, to expand operations into its new hybrid greenhouse located in Hamilton, Ontario. The 123,000 square foot state-of-the-art facility will serve to increase TGOD’s premium organic cannabis production as it expands its sales in Canada.

TGOD’s hybrid greenhouse is the fruit of years of research and development. From its cutting-edge climate control systems and water recapture systems to LED lighting, it combines the latest technologies with natural elements such as living soil and natural sunlight.  This organic growing facility has a much better environmental footprint and lower waste than traditional large-scale cannabis growing.

“We are thrilled to start using this purpose-built hybrid greenhouse as we ramp up our production of premium organic cannabis, an underserved segment of the market,” commented Brian Athaide, CEO of TGOD.  “Our team pioneered the concept of growing organic cannabis at scale; this hybrid greenhouse has been artfully designed for organic cultivation, allowing us to reliably produce clean, safe and non-irradiated cannabis.”


StaffStaffAugust 30, 2019
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4min5160

California-based cannabis dispensary company Harborside Inc.  (CSE: HBOR) delivered its results for the second quarter ending June 30, 2019, with revenues up 20% to $12.7 million. The results were driven by 6.5% growth in retail revenue and 208% growth in wholesale revenue.

Harborside reported a net loss for the second quarter of $15.6 million versus last year’s net loss of $4.8 million for the same time period. It was attributed primarily to a $15.4 million provision for potential tax penalties under 280E. The company had fought the 280e tax battle, which would have benefited the entire industry had they won. Unfortunately,  the issue remains tied up in the courts.

In addition to that, the company had $3.6 million of non-recurring expenses related to its reverse takeover transaction and other one-time items, offset by a non-cash gain on derivative liabilities of $7.2 million due to translation on exercise prices of options and warrants, and conversion prices of debentures, denominated in other foreign currencies.

“The second quarter was a milestone for Harborside. On June 10, we listed on the CSE after completing the RTO and raising capital. I am pleased that in our first quarter as a public company, we reported solid revenue growth and were profitable on an Adjusted EBITDA basis and that we now rank among the top 20 US-listed cannabis companies by revenue,” said Harborside CEO Andrew Berman.

He went on to say, “That said, the Board and our executive team are not at all satisfied with the significant loss of market capitalization in our first months as a public company. While the overall market is down, what upsets us is that Harborside is down even more despite our installed base of revenue and solid growth prospects. We think we are significantly undervalued, and to demonstrate that firm belief, today we also announced that we are implementing a normal course issuer bid under which we expect to buy up to 5% of our subordinate shares.”

Deals Called Off

As of August 29, Harborside decided that it would not move forward with the purchase among “FLRish Retail Management & Security Services LLC and Airfield Supply Co., Inc. and its owner, in light of the company’s current share price and the substantial cash component of the purchase price which management has determined are not in the best interests of shareholders.”

In addition to that, Harborside said it also will not move forward with “The Agris Acquisition as contemplated by the Agris Agreement, in light of the principal owner’s demand for an increase in the purchase price and other terms which in management’s judgment make the transaction not in furtherance of the Company’s goals or strategy or otherwise in the interests of the Company’s shareholders, and given the Company’s already substantial capacity to produce high-quality cannabis at its Salinas facility at significant scale.” The company went on to say that Menna Tesfatsion, the founder and principal owner of Agris Farms, would not be joining Harborside as Chief Operating Officer.

Berman did give a forecast for 2019, “We are targeting $55 to $57 million of revenue and to achieve positive Adjusted EBITDA. We believe that the combination of solid topline growth and margin expansion for a cannabis asset trading at 1.5x revenue makes for a highly attractive investment opportunity.” 


StaffStaffAugust 30, 2019
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4min3010

Julia Jacobson, CEO of Aster Farms

As CEO of Aster Farms, Julia brings an expertise in entrepreneurship, supply chain management and business development to the Aster team. Her personal interest in cannabis is rooted in her battle with chronic migraines, incorporating the plant with her prescribed routine to mitigate symptoms, balance equilibrium and chart a healthy course. Julia develops Aster’s high-level vision, ensuring the team is two steps ahead as the company scales. Prior to Aster Farms Julia was co-founder and CEO of NMRKT, an affiliate marketing platform for content providers. She led the company through Techstars and it’s acquisition by XO Group in 2016, where she went on to become the Director of National Revenue Products. Julia’s career began as a buyer for Bloomingdale’s, giving her a solid foundation in retail and supply chain economics. Today, Julia continues to be a mentor to Techstars and to young entrepreneurs in many fields.

Title: CEO

Company: Aster Farms

Years at current company: 3

Education profile: B.A from Brown University with honors 

 

GMR Executive Spotlight Q&A:

Most successful professional accomplishment before cannabis: Having my first company NMRKT acquired by XO Group and getting to watch the technology live on far beyond my time there.

Company Mission: To bring the cleanest, meanest and greenest cannabis to a dispensary near you. Aster Farms is dedicated to sustainable practices and organic inputs only. We value good genetics, clean cultivation and the power of nature and aim to show consumers how cleaner cannabis means a cleaner high. 

Company’s most successful achievement: Bouncing back from the Mendocino Complex Fire. Our farm burned down completely and it took a lot of blood, sweat and tears to push through and get back up and operating. A year ago, we were burning to the ground, today we’re in 35 dispensaries and delivery services all across California. 

Has the company raised any capital (yes or no): Yes

If so, how much?: $850,000

Any plans on raising capital in the future? Yes, a Series A next year.Most important company 5 year goal: To educate consumers about what’s in their cannabis and why clean, sustainable techniques are not only better for you, but produce a cleaner high. We want to help break the stigma and education is the way we plan to do that.


StaffStaffAugust 27, 2019
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4min2650

Dan Nelson is best known for having launched the world’s first legal and medical marijuana dispensary price comparison website in January 2014.  Wikileaf, dubbed by some media as “The Priceline of Pot”, has since grown into one of the industry’s largest consumer resources in North America.  In 2016, Wikileafbecame a part of Nesta Holding Co., a private equity firm that creates wide ranging partnerships and brands within the cannabis industry.

Today, Dan is CEO of Wikileaf, and has built it into a one-stop, user-friendly platform to compare dispensary and delivery prices as well as research strains in your area. Dan oversees the company, helping it grow to 1.6 million monthly user sessions and over 3,500 legal recreational and medical dispensaries on the platform. Wikileaf is headquartered in Seattle, Washington, and has mainly focused on the US markets, however, with growing medical legalization around the world, and adult recreational now legal in Canada, Wikileaf has set its sights on serving other jurisdictions.

Prior to launching Wikileaf, Dan ran a banking blog that focused on FDIC and NCUA insured savings deposits offered by local banks and credit unions.  Which he credits for the inspiration behind Wikileaf. 

Title: CEO

Company: Wikileaf Technologies Inc

Years at current company: 5

Education profile: Dan graduated from Washington State University in Seattle in 2006.

 

GMR Executive Spotlight Q&A:

Most successful professional accomplishment before cannabis: My first company/web property was a go-to destination for FDIC insured savings products, developed at the height of the financial collapse in 2008. There was a clear opportunity to create a destination that would make it easy for consumers to compare savings rates and focus on FDIC and NCUA insured saving deposits. I developed a partnership with an industry leader, Bankrate, to funnel deposit account leads through their portal. After that success I realized the next big opportunity was in cannabis, especially seeing it flourish firsthand in Seattle. I decided to tailor and apply my previous banking model to this emerging industry, allowing consumers to track down the best products at the best prices from dispensaries in their neighborhood.

Company Mission: Since its inception in 2014, Wikileaf’s mission has been to empower the cannabis consumer. We achieve this through transparency – transparency in pricing and transparency in research and information, whether that’s for strains, brands, jobs, or industry news.

Company’s most successful achievement: Surpassing one million monthly visitors in 2019 alone. Before that accomplishment, we were the first ever cannabis company to advertise on a major airline back in 2017.

Has the company raised any capital (yes or no): If so, how much?: In our most recent round we raised $6.8M CAD. Since our founding we’ve raised over $10M CAD in total funding.

Any plans on raising capital in the future? Yes

Most important company 5 year goal: Ultimately we want to be the go-to destination for cannabis consumers looking to find and compare cannabis products, strains, brands and dispensaries in their neighborhood. We look forward to continuously proving ourselves as a trusted resource in the space, and want to make our service available to consumers wherever they are.



About Us

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


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