Staff, Author at Green Market Report

StaffStaffJune 3, 2020
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7min4230

Executive Spotlight: Tyler Robson 

 

Title: Chief Executive Officer and Director 

 

Company: The Valens Company 

 

Years at current company: 3 years 

Education profile: Bachelor of Science in Biology at the University of Saskatchewan, which he attended on a Football scholarship. 

Most successful professional accomplishment before cannabis: Tyler began his journey in the Cannabis space cultivating and growing licensed medical marijuana plants at an early age to support patients including his father. Since then he knew, understood, and believed in the wide spectrum of benefits created by the cannabis plant and he knew it was his mission to bring this category and its benefits to the masses. Tyler took a break from growing to pursue his studies in Biology at the University of Saskatchewan, graduating with a BSC, which he attended on a football scholarship. Passionate about Academics as well as Athletics, he has always known the value of teamwork, perseverance, and grit. After University he returned to the Cannabis category to start and manage a number of growing operations which eventually led to the creation of Valens GroWorks, now The Valens Company. After returning to Kelowna, Tyler pursued research and development, plant innovation and life sciences, with an emphasis on medical cannabis and its applications in the treatment of seizures, chronic diseases, pain control, and neurological symptoms, and was eventually appointed as CEO of the company. 

Company Mission: Our mission is to become the world’s most trusted partner for best-in-class cannabis extraction, testing, formulation, product development, and custom manufacturing.

Company’s most successful achievement: In just a few years since its founding in 2017, Valens has become the largest publicly traded third-party extraction company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant. Today, the Company is quickly establishing a leadership position in Canada’s Cannabis 2.0 phase, offering consumers a wide range of product formats, including tinctures, two-piece caps, soft gels, oral sprays, and vape pens as well as beverages, concentrates, topicals, edibles, injectables, natural health products with a strong pipeline of next-generation products in development for future release. In March this year, the company launched a line of cannabis-infused beverages, produced under a white label agreement with A1 Cannabis Company (a subsidiary of Iconic Brewing). The beverage line includes BASECAMP, a CBD-forward iced tea, and SUMMIT, THC-forward citrus water, both of which are available online at the Ontario Cannabis Store.                          

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

If so, how much? In 2018, the company raised $41M in capital. In April 2019, $43,125,000 gross proceeds were raised through bought deal financing providing a strong cash position to be able to execute on the company’s growth plan.

Any plans on raising capital in the future? Valens has a strong balance sheet with $44.3 million in cash and short-term investments and a networking capital position of $80.4 million as of February 29, 2020. We are confident in our ability to sustainably manage our growth, having reported three straight quarters of profitability and benefiting from revenue visibility as a result of our multi-year contracts. As we continue to invest in building out our infrastructure and seek to enter new markets, we will continue to assess how best to generate and allocate capital in order to optimize ROI for our shareholders.

Most important company 5-year goal: Over the next five years, The Valens Company will be strategically focused on the following goals: 

  • Broaden End-product and Delivery Capabilities: Broadening its white label offerings to become the largest third-party cannabis product development and manufacturing company in the world.
  • Operate With Global Standards: Continuing to ready its business model for exportation to high-value international markets.
  • Provide Unique, Customized Offerings: Further developing our unique, IP-based product technology platform offering customized white label services.
  • Increase Capacity: Significantly increasing existing extraction capacity of 425,000 KG of hemp and cannabis to keep up with expected demand.
  • Build Reputation: Gaining more partnerships and establishing itself as the trusted partner of choice by various leading Canadian and international brands, including CPG companies.

StaffStaffJune 1, 2020
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6min1060

It’s time for your Daily Hit of cannabis financial news for June 1, 2020.

On The Site

Acreage

Multi-state operator Acreage Holdings, Inc. (OTCQX: ACRGF) said it has entered into two definitive funding agreements to receive up to $60 million. According to a company statement, the two funding agreements are as follows:

A Standby Equity Distribution Agreement with an institutional investor, under which the company may, at its discretion, periodically sell to Investor, and pursuant to which the Investor may, at its discretion, require the company to sell to it, up to $50 million of the Company’s Class A Subordinate Voting Shares, no par value.

Completion of a private placement offering, in which it issued $11 million in a principal amount under a secured convertible debenture, with gross proceeds to the Company of $10,000,000 before transaction fees.

Valens

Valens GroWorks Corp. (VLNCF) has entered into a syndicated credit facility with the Canadian Imperial Bank of Commerce as Co-Lead Arranger and Administrative Agent, and ATB Financial as Co-Lead Arranger. The Lenders will provide The Valens Company up to C$40 million of secured debt financing.

International cannabis company Clever Leaves will be listed on the NASDAQ (NASDAQ:NDAQ) as a result of its agreement with the Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA). According to a company statement, SAMA and Clever Leaves will combine and become a publicly-traded company on NASDAQ.

New Study

Green Horizons released a detailed report studying cannabis consumers and the cannabis market in general. The report addresses a diverse selection of topics like social concerns with using cannabis, talking to non-users about why they choose not to use cannabis, and dispensary reports and findings. An interesting part of the report focused on cannabis branding, and how that impacts cannabis users at large.

With terms like “social distancing”, “quarantine”, and “safer at home” orders now common parlance thanks to the Covid-19 global pandemic, it seems an odd time to forge ahead with opening new retail establishments, yet several determined cannabis companies are betting on a better future and doing just that.

Dispensaries

Small business website “The Balance” itemizes the expenses associated with opening a storefront, which include licensing fees, rent, inventory, staffing, and equipment to name a few.  To open even a small business in an inexpensive city or town can cost thousands of dollars. Factor in the extra costs retailers will have to swallow to stay within Covid-19 guidelines for reopening such as plexiglass cashier guards, protective equipment for staff, and restrictions on the number of customers allowed in the store at any one time, and the overhead becomes untenable for many current and aspiring shop owners.

In Other News

Jushi

Jushi Holdings Inc.  (OTCQX: JUSHF) is temporarily closing its BEYOND / HELLO™ Center City and Northern Liberties store locations in Philadelphia amid ongoing demonstrations. Chief Executive Officer Jim Cacioppo said, “We fully support an individual’s right to freedom of speech and the touching peaceful demonstrations that we have seen around the country. We are heartbroken by the murder of George Floyd and the pain it is causing communities across the country that we not only work in, but live and love.

Unfortunately, certain opportunistic bad actors have at times manifested unacceptable behaviors. This past weekend, our Center City and Northern Liberties locations in Philadelphia were broken into, making it impossible for us to safely operate. In addition to these two temporary store closures, we have limited our hours at certain locations in Pennsylvania and Illinois.”

M Jardin

MJardin Group, Inc. (OTCQX: MJAR) has terminated its previously announced acquisition of Carson City Agency Solutions, dba Cannabella, a producer of edibles and topicals located in Carson City, Nevada.

The acquisition, which was expected to close in late 2019, could be terminated by the parties if the transaction hadn’t closed by April 2020. Given the delay in transferring the license, the Company elected to terminate the acquisition. The Company and the vendor are in discussions regarding fees, expenses, and the status of the deposit consideration made in respect of the acquisition.


StaffStaffJune 1, 2020
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3min810

Valens GroWorks Corp. (VLNCF) has entered into a syndicated credit facility with the Canadian Imperial Bank of Commerce as Co-Lead Arranger and Administrative Agent, and ATB Financial as Co-Lead Arranger. The Lenders will provide The Valens Company up to C$40 million of secured debt financing.

“Although we are already well-capitalized, the Credit Facility increases our financial flexibility and brings down our overall weighted average cost of capital. With our enhanced balance sheet, we are well-positioned to continue to expand our innovative product portfolio, build out our custom manufacturing platform, be opportunistic in a consolidating market and maximize capital allocation to generate the highest return on invested capital for our shareholders,” said Tyler Robson, CEO of The Valens Company.

Valens is the largest third-party extraction Company in Canada with an annual capacity of 425,000 kg of dried cannabis and hemp biomass at our purpose-built facility in Kelowna, British Columbia which is in the process of becoming European Union (EU) Good Manufacturing Practices (GMP) compliant. The Valens Company currently offers a wide range of product formats, including tinctures, two-piece caps, soft gels, oral sprays, and vape pens as well as beverages, concentrates, topicals, edibles, injectables, natural health products and has a strong pipeline of next-generation products in development for future release.

According to the company statement, the Credit Facility consists of a C$20 million secured term loan and a C$20 million secured revolving loan, with an accordion feature that could allow The Valens Company to increase the aggregate commitments by up to an additional C$10 million. The Credit Facility has a three-year term and is secured by a first ranking charge over substantially all the Company’s assets.

Proceeds from the Credit Facility will further strengthen the company’s balance sheet, allowing for the continued expansion of its operations and execution of its corporate strategy, including gaining access to new domestic and global opportunities to increase shareholder value.


StaffStaffMay 29, 2020
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8min2590

Editors Note: This is a guest post. 

Operating a cannabis dispensary can be a lucrative business, but only if people know it exists—and prefer it to other dispensaries in the area. Just selling cannabis isn’t enough to get you the profitability and sustainability you need to make your business successful. You’ll need to market and advertise that business if you want people to hear about it and trust it. 

Marketing Tips for Cannabis Dispensaries 

These tips can help you better establish your brand and attract more customers to your dispensary: 

  1. Differentiate your brand. Customers in your area probably have many dispensaries to choose from, so what makes yours different? Do you have a wider range of products? Can you afford to sell at lower prices? Do you provide more individualized, personal customer service? The exact method of differentiation doesn’t matter, so long as you have some way to show that you’re better than your competitors. 
  2. Remain consistent. Advertising is most effective across many iterations, due to the mere exposure effect. But for this effect to manifest, you’ll need to be consistent. You’ll need to present your brand in the same way, adhering to the same values, and giving consumers the same kinds of images, tone of voice, and other brand hallmarks. Make sure you’ve documented your brand standards thoroughly, and inspect each marketing or advertising material that gets published to ensure it adheres to those standards. 
  3. Appeal to a local audience. While some dispensaries are able to sell to customers in many different areas, most are limited to a local audience—or will at least be getting most of their revenue from a local audience. Dedicate a significant chunk of your advertising budget to channels and methods that work especially well for locals, like printing and distributing flyers or putting up a billboard that residents can see. 
  4. Watch your costs. You’ll need to watch your budget carefully if you want to succeed. If you spend too little on marketing, or don’t advertise at all, you’re never going to achieve the growth you want. But if you spend too much on campaigns that don’t work, you’ll be in an even worse position. Your goal is to maximize your return on investment (ROI), which means selectively choosing the most effective and cost-efficient strategies. You can do this by starting with minimal investments, measuring your results, and preferentially keeping the best-performing strategies per dollar spent. 
  5. Segment and target your audience. You can improve your results by selectively focusing on niche audience segments. Who are your primary customers, and what are their biggest priorities? Are they purchasing cannabis for an underlying health condition, or to partake recreationally? What kinds of messages and images will evoke the best response from them? Market research is imperative here.
  6. Invest in SEO. Search engine optimization (SEO) is one of the best overall online marketing strategies. Utilizing a combination of onsite content development, offsite link building, and other tactics, you’ll flesh out your online presence and increase your rankings in search engines, ultimately generating more traffic for your site. It’s a long-term strategy, so it won’t yield immediate results, but the long-term value is unparalleled. 
  7. Experiment. It’s also important to experiment, since you can’t be sure which tactics, channels, or messages will be most effective for your audience. Try out a wide variety of different approaches, and make sure you measure your results so you know what works. 
  8. Understand the regulations. Finally, but perhaps most importantly, make sure you understand the marijuana advertising laws in your state. Some states are stricter than others, but in nearly all states, you’ll be responsible for providing factual, provable information about your product and displaying it in a responsible way. In some cases, you’ll need to advertise your business, rather than your product, and in some states, you may be dealing with no specific marijuana advertising laws whatsoever. Work with a lawyer if you’re not sure how to proceed. 

Customer Retention vs. Acquisition 

It’s also important to realize that for most dispensaries, customer retention is cheaper than customer acquisition—in other words, it’s less expensive to keep a current customer happy and buying your products than it is to find an entirely new customer. With that in mind, it’s a good idea to invest in strategies that will keep your customers happy and loyal, like rewards programs and exceptional customer service, in addition to spending money on marketing and advertising. 

Cannabis dispensaries perform better when they have a solid marketing and advertising strategy pushing them forward. It may not come together right away, and your return on investment (ROI) may be low in the beginning stages, but if you continue to test and improve, eventually, you’ll piece together a campaign that works. 


StaffStaffMay 28, 2020
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4min1321

Canopy Rivers Inc. (OTC: CNPOF) is laying off employees and cutting back on spending as the company focuses on positive cash flow. The venture capital firm that specializes in cannabis companies said that it is streamlining its operations to preserve its cash on hand.

However, Canopy Rivers said it is still planning on repurchasing some of its subordinated voting shares and that is can buy up to 10% of these shares. The stock was lately trading at $1.02 per share.

The company said in a statement that it is making the following changes:

  • A material reduction in the Company’s operating cash outflows, including a reduction in headcount, directors’ compensation, marketing expenses, and general corporate expenses of a minimum of 35% from the Company’s fiscal 2020 operating cash outflows on a normalized basis;
  • A focus on generating positive cash flow from operations for fiscal 2021 (year ended March 31, 2021); and
  • A focus on maximizing returns on existing assets.

“We believe that sharpening our focus on financial discipline, operational excellence, and opportunistic capital deployment on our investment pipeline will yield long-term results for shareholders,” said Narbe Alexandrian, President & CEO. “In addition, the strategic utilization of our NCIB could be an important tool to provide attractive returns to shareholders.”

“Our cash on hand from our prior capital raises and returns from certain investments will allow us to deploy capital opportunistically moving forward, both towards new investment opportunities and in conjunction with our NCIB,” continued Alexandrian. “These unprecedented times, while difficult, are revealing investment opportunities at attractive valuations, and we intend to actively execute on our investment pipeline during this time. Our expectation is that our efforts to achieve positive operational cash flow, conserve and deploy capital on a strategic basis, and focus on our core business objectives will better align our share price with our underlying net asset value.”

The company is still active in the investing side. Just a couple of weeks ago Canopy Rivers made a C$2 million investment in Dynaleo Inc., an Edmonton -based company focused on white-label manufacturing edible cannabis gummies for the Canadian market. In a statement, the company said, “Through this investment in what the Company anticipates may become a leading industrial scale Canadian gummies manufacturer, Canopy Rivers believes it is capitalizing on a significant opportunity in what is currently an underserved and underdeveloped segment of the cannabis market. Once Dynaleo receives the required licensing from Health Canada, it expects to begin operating its 27,000 sq. ft. purpose-built facility with the goal of producing enough gummies to take a sizable bite out of the projected edibles market.”

The company will report its financial results for the fourth quarter and fiscal year ended March 31, 2020, before markets open on Wednesday, June 3, 2020.


StaffStaffMay 27, 2020
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4min2550

Zynerba Pharmaceuticals, Inc. (ZYNE) announced positive top-line results from the exploratory, open-label Phase 2 BRIGHT study (An Open-Label Tolerability and Efficacy Study of ZYN002 Administered as a Transdermal Gel to Children and Adolescents with Autism Spectrum Disorder) trial. Autism Spectrum Disorder is a developmental disorder that affects communication and behavior in approximately one million pediatric and adolescent patients between the ages of five and 17 in the U.S.

The stock was moving higher by over 8% at one point in early trading to lately sell at $6.69. Most of the analysts covering the stock have rated it a Hold according to Yahoo Finance. The average price target is $15.33.

The trial was designed to assess the safety, tolerability, and efficacy of the Zynerba drug called Zygel in pediatric and adolescent patients with autism spectrum disorder (ASD). Zygel was administered to patients with moderate-to-severe symptoms of ASD as add-on therapy to their standard of care utilizing a variety of efficacy assessments.

“We are very encouraged by the compelling top-line results of the BRIGHT trial and we expect to meet with the FDA to discuss the clinical pathway for developing Zygel for the treatment of behavioral symptoms of ASD in the second half of this year,” said Armando Anido, Zynerba’s Chairman and Chief Executive Officer. “Our goal is to develop Zygel for patients suffering from debilitating neuropsychiatric disorders including ASD, Fragile X syndrome, 22q and DEE. I want to thank the patients, families, physicians, clinical staff, and the Zynerba team for their support of this key study in ASD.”

Key findings from the trial disclosed today include:

  • All five subscales of the Aberrant Behavior Checklist – Community (ABC-C) as well as the Parent Rated Anxiety Scale – Autism Spectrum Disorder (PRAS-ASD) showed both statistically significant and clinically meaningful improvements at 14 weeks of treatment from baseline;
  • The results observed in other efficacy outcome measures, including Clinical Global Impressions – Improvement scale (CGI-I), support the subscale results observed in the ABC-C;
  • Zygel was well tolerated in this trial with no serious or severe adverse events reported.

“I am very impressed with the improvements my patients made over the 14-week treatment period while receiving Zygel; the reduction in irritability, communication deficits, and repetitive movements were especially noteworthy since some of these are core autistic behaviors,” said Helen Heussler, FRACP, Associate Professor at Children’s Health Queensland, Medical Director Child Development and principal investigator in the BRIGHT trial. “The magnitude of effect on autistic behaviors in this trial is significant, including hyperactivity and stereotypy, which are among the most difficult behaviors to improve with therapeutic intervention. The results of this study strongly suggest the potential of this drug as an important treatment for ASD and I look forward to participating in future clinical studies with Zygel.”


StaffStaffMay 26, 2020
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5min1330

It’s time for your Daily Hit of cannabis financial news for May 26, 2020.

On The Site

Aphria Inc. NYSE: APHA has decided to throw in the towel on its listing at the New York Stock Exchange and is moving to NASDAQ effective Friday, June 5, 2020, after the market close. Aphria said that shareholders  can expect the common stock will begin trading as a Nasdaq-listed security at market open on Monday, June 8, 2020 and will continue to be listed under the ticker symbol “APHA.” This transition will not impact the company’s primary listing on the Toronto Stock Exchange (TSX: APHA).

It is cheaper for companies to list at NASDAQ than it is to list at the NYSE. The amenities offered to companies that list at NYSE don’t apply to cannabis companies. For example, a cannabis company can list at NYSE, but is not allowed to ring the opening or closing bells. Cannabis companies are treated like second class citizens at the NYSE, but their exchange listing money seems to be considered of equal value.

In Other News

Tilray

Tilray, Inc. (NASDAQ: TLRY) announced that its wholly-owned subsidiary High Park Gardens will close its doors over the course of the next six weeks. As a result of the closure, the company said it expects to realize annualized net savings of approximately $7.5 million (current production costs net of future 3rd party purchases and ongoing depreciation) and avoid significant ongoing capital expenditures.

In 2019, Tilray acquired Natura Naturals Inc., in a deal valued at C$35 million and has since operated it as High Park Gardens.  The deal cost C$15 million in cash and C$20 million in Tilray Class 2 common stock.

The High Park Gardens facility contains 406,000 square feet of Health Canada licensed space for cannabis cultivation and manufacturing. High Park Gardens has worked collaboratively with Tilray’s existing operational sites to primarily serve the adult-use market in Canada.

“We are continuously evaluating the evolving needs of our business, against a challenging industry backdrop, to ensure we’re in the best position to produce world-class products and deliver positive results for our stakeholders,” says Brendan Kennedy, Tilray CEO. “The decision to close a facility is never easy but we are confident that this will immediately put Tilray in a better position to achieve our goals of driving revenues across our core businesses and working towards positive adjusted EBITDA by the end of 2020. We are very confident our existing operations team will continue to serve our valued patients and customers with no interruption. On behalf of myself, the rest of our executive team, and our colleagues across the organization, I’d like to extend my sincere gratitude to the team at High Park Gardens for their contributions to Tilray and High Park.”

TGOD

The Green Organic Dutchman Holdings Ltd.  (OTC:TGODF) has made its first shipment of Highly Dutch, TGOD’s new mainstream brand designed for regular users. Starting today, Highly Dutch is available in Quebec in a one-ounce format (28 grams) of its Rotterdam OG Indica strain and will become available in additional provinces during the weeks ahead. This launch will be followed by additional Highly Dutch strains, sizes, and formats later this summer.


StaffStaffMay 22, 2020
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7min5810

Editors Note: This is a guest post

When CBD first entered the marketplace the products were limited and consumers lacked knowledge so they were skeptical. The years have passed by and the CBD market has exponentially expanded with innovative products being created to cater to all walks of life. Additionally, more information and knowledge is being discovered for the public to digest. CBD is already loaded with so many benefits, but CBD companies have taken things a step further in building on the convenience factor of their products. Innovative hemp products like CBD gummies are now being combined with essential vitamins and nutrients merging CBD and health in intriguing ways. According to a new report by Grand View Research, “The global CBD gummy market size is expected to reach USD 6.94 billion by 2025, exhibiting a 31.9% CAGR over the forecast period”. 

Perhaps the reason for such growth in this market is that people love the convenience, taste, and benefits that can be hard-pressed into candy-like form. 

What To Expect When You Take A CBD Gummy

If you are accustomed to taking CBD sublingually, you need to be aware of the fact that the CBD will take longer to take effect and may feel lighter. If you are new to CBD, gummies are a great option because the doses are low. 

How To Find The “Right” CBD Gummy

It may seem to be a daunting task to shuffle through hundreds of CBD companies to check out different options, but there are a few things to keep in mind while trying to find the one best suited for your personal needs. 

You should start by figuring out what dosage you are looking for. The common mg per CBD gummy is 10 mg, but some companies have 5 mg. This is nice because you can dial back the effects if you need it to be lighter for work or school situations, or even double up if you’re having “one of those days”. 

You should figure out if you want a gummy that is strictly CBD, or if you would like the one that is geared towards nutrition. There are options that have included vitamins such as essential B vitamins, nutrients such as turmeric and spirulina and apple cider vinegar, and even ginger. I’m sure there are more options, but these are some of the options I’ve seen. There are also multivitamin gummies with CBD!

Another aspect to consider is if you want to feel the intoxicating effects of THC. If you don’t, you should opt for a hemp-based gummy as they contain less than 0.3% THC, and if you don’t want any chance of it showing up on a drug test (even as a false positive) make sure to purchase a broad spectrum gummy.

I would also like to point out that all CBD companies are not created “equally”. This means that some companies are out to make a quick buck using the lowest quality ingredients and using fillers that are artificial and toxic. Make sure to align yourself with a company that offers batch level 3rd party testing on their products. When you read this certificate of analysis you are able to see exactly what went into your product. You can also google some of the ingredients you don’t know so you do your own research and become a mini CBD expert in the process. Top-notch CBD companies will offer full transparency because they are proud of what they put into their products!

Do They Actually Work? 

CBD gummies contain CBD oil (cannabinoids) and have been noted to relieve issues such as insomnia, stress, anxiety, pms symptoms, menopause symptoms, adhd, alzheimer’s, and much more. The reason CBD is so effective is because the cannabinoids interact with the body’s endocannabinoid system and have positive effects on the central nervous system. The endocannabinoid receptors are located in the brain, and in fact, receptors are said to be located in all parts of the body. It seems almost impossible that CBD wouldn’t be able to work, from a “scientific” standpoint. Some people have even argued that you might feel a placebo effect, but of course, that’s up for a heavy debate. 

Conclusion

The CBD market is rapidly expanding and the products are becoming more innovative to keep up with the demand. People are utilizing gummies in all aspects of their lives from women’s health, pain management, health, and fitness, as well as using it to manage certain illnesses that cause seizures or neurological issues. The beauty of CBD is that it’s so versatile and can fit into all walks of life. Whatever the reason you might feel the need to incorporate CBD into your daily routine, it will not disappoint, you just have to find the right product for yourself!

 


StaffStaffMay 21, 2020
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3min1860

It’s time for your Daily Hit of cannabis financial news for May 21, 2020.

On The Site

Ayr Strategies

Ayr Strategies Inc. (OTCQX: AYRSF) reported that its revenue increased 4% sequentially in the first-quarter ending in March to $33.6 million. The company did note that sales began to decline in March due to the COVID-19 related closures. The company also reported a net income of $3.3 million after a foreign currency translation. The earnings per share were $0.06 basic and $0.05 diluted.

Ayr also made improvements on its loss from operations as it trimmed that number from a loss of $16.9 million in the fourth quarter to a loss of $4.9 million in the first quarter. The adjusted EBITDA was $8.4 million, which dropped from the fourth quarter’s $9.2 million due to the COVID closures.

Planet 13

Planet 13 Holdings Inc. (OTCQX: PLNHF) is expanding beyond its universe of Las vegas Nevada as the company acquires a California dispenary. Planet 13 said it is has closed on its plan to buy Newtonian Principles, Inc. in a stcok and cash deal valued at $4 million.

The acquisition includes the California cannabis sales license held by Newtonian, and a 30-year lease for a dispensary in Santa Ana, California, and certain other assets from Warner Management Group, LLC.

In Other News

FSD Pharma Inc. (NASDAQ:HUGE) announced the sale of 5.0 million common shares of Pharmadrug Inc. (CSE:BUZZ) (formerly Aura Health) in a privately negotiated transaction at C$0.08 per share for cash proceeds of C$400,000. Under the terms of the sale, the buyer has the option through June 26, 2020 to purchase an additional 5.0 million shares of Pharmadrug at C$0.10 per share from FSD Pharma for cash proceeds of C$500,000.

“We are pleased to finalize this transaction as part of our continuing efforts to strengthen disposable cash on our balance sheet primarily to support our pharmaceutical R&D program. We plan to continue to shore up our cash position by strategically divesting non-cash assets, and raising new capital, either through private placement, debt financing or registered offering of our Class B subordinate voting stock,” stated Raza Bokhari, MD, Executive Co-Chairman & CEO.


StaffStaffMay 21, 2020
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4min5200

Planet 13 Holdings Inc. (OTCQX: PLNHF) is expanding beyond its universe of Las vegas Nevada as the company acquires a California dispenary. Planet 13 said it is has closed on its plan to buy Newtonian Principles, Inc. in a stcok and cash deal valued at $4 million.

The acquisition includes the California cannabis sales license held by Newtonian, and a 30-year lease for a dispensary in Santa Ana, California, and certain other assets from Warner Management Group, LLC.

“Closing the Acquisition is a major step towards Planet 13’s first California location.  We’ve examined hundreds of locations and are confident in our ability to replicate the SuperStore experience at this location, introducing new customers to the Planet 13 brand,” said Bob Groesbeck Co-CEO of Planet 13. “At this time, due to COVID-19, we are not putting a timeline on the opening of the dispensary.  We have budgeted approximately six million dollars in CAPEX for the opening of the Santa Ana dispensary, leaving us plenty of cash on hand to manage any COVID-19 related impacts on the business.”

The price paid was much lower than the originally agreed-upon price of $10 million back in June of 2019. At the time, the company said, “After a thorough and deliberate search, we identified this excellent site located three miles from the South Coast Plaza Mall, which hosts 24 million visitors a year and is just a short ten-minute drive from Disneyland, with 18 million visitors per year.” Then it seemed as if the deal was off when Planet 13 said it had terminated the deal, but the announced that it had renegotiated the terms in April 2020.

Planet 13 had started 2020 off with record sales in historically slow months for tourism, but then the COVID-19 pandemic stopped all tourism as hotels and casinos closed. The company was able to sell to local residents but sorely missed its tourist crowd.

Larry Scheffler, Co-CEO of Planet 13. “When cannabis dispensaries in Nevada were told to close, we pivoted to focus on our delivery business, and in only 25 days we’ve ramped our delivery service from five to twenty-eight vehicles and have shifted our customer mix from 15% local area residents, to 100%. While tourism will continue to be a strong driver of our business when things return to normal, this is a unique opportunity for us to build a strong local base and gain lasting market share as we become a fixture in the daily lives of Las Vegas Valley residents.”

 



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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