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StaffStaffApril 1, 2020
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7min1500

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

On The Site

MariMed

MariMed Inc. (MRMD:OTCQX) quarterly revenues for the quarter ending December 31, 2019, increased 50.9% to  $5.19 million versus $3.44 million for the same period of 2018. The company attributed the increase to the roll-up up of MariMed’s licensed client businesses in Illinois in the fourth quarter of 2019.  Fourth-quarter 2019 revenues were also bolstered from new distribution channels secured for MariMed’s Betty’s Eddies and Kalm Fusion brands. The company did not disclose the net loss for the quarter.

Full Year 2019

For the full year ending in December, total revenues grew to approximately $45.6 million. Core cannabis sales for the fiscal year 2019 were $16.6 million, a 40.0% increase compared with $11.9 million for the fiscal year 2018. The operating loss for 2019, including the GenCanna receivable reserve, was $41.6 million, compared with an operating loss of $5.4 million for the full year 2018.  Net loss for the full year 2019 was $81.2 million or $0.39 per share, compared with a net loss of $13.6 million or $0.07 per share for the full year 2018.

Muni Bonds

MPG Consulting has recently authored a report looking at the potential of Cannabis Municipal Bonds (CMB).  Adam Orens, Founder of MPG and Sal Barnes, Managing Director, MPG have conducted a theoretical analysis using Colorado showing how the state can translate its cannabis revenue into a short-term bond amount of $166 million and long-term bond issued in the amount of $591 million resulting in $123 million and $438 million available for educational initiatives and infrastructure, respectively.

States and municipalities already use revenue bonds as a way to pay for large projects. The investors of such bonds feel that the risk for these investments is lower since there is a captive source of revenue to pay the interest. The report gives Iowa as an example. That state allocates $55 million in gaming taxes every year to pay the debt on revenue bonds that were issued in 2009 and 2010. That money raised selling these bonds was then used for community revitalization, flood mitigation, and bridge improvement efforts.

Compensation

Canadian cannabis company CEOs have been making big pay packages over the last few years coinciding with net losses. But, they have not been disclosing details required by Canadian law about who they employ to come up with the pay formulas and how much these consultants are paid.

A review of Canadian public filings by Cannabis Law Report has found at least three publicly traded companies who have failed to be transparent in telling shareholders how much they were actually paying their executives.

It appears that some packages could be described as “over-compensation” and were/are making some individuals very wealthy.

In Other News

MindMed

Mind Medicine (MindMed) Inc. (NEO: MMED OTC: MMEDF), the leading neuro-pharmaceutical company for psychedelic inspired medicines, today announced the signing of a multi-year, branch exclusive collaboration with the laboratory of Professor Dr. Matthias Liechti, the world-leading psychedelics pharmacology and clinical research group at University Hospital Basel in Switzerland.

Under the agreement, MindMed gains exclusive worldwide rights to data, compounds, and patent rights associated with the Liechti laboratory’s research with LSD and other psychedelic compounds, including data from preclinical studies and eight completed or ongoing LSD clinical trials. MindMed has already begun working with Professor Dr. Liechti’s laboratory to file patents for the data and clinical trials it has generated over a 10-year period.

Therapix

Therapix Biosciences Ltd.  (Nasdaq: TRPX), a specialty, clinical-stage pharmaceutical company focusing on the development of cannabinoid-based treatments, today announced the pricing of a public offering for the issuance of an aggregate of 4,166,668 units, each consisting of (i) one pre-funded warrant to purchase one American depositary share (“ADS”) and (ii) one Series B warrant to purchase one ADS, at a purchase price of $0.2999 per unit. The Series B warrants will have an exercise price of $0.43 per ADS, will be exercisable upon issuance and will expire five years from the date of issuance.

TGOD

The Green Organic Dutchman Holdings Ltd.  (TSX:TGOD) (OTC:TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that the Company has entered into a $30 million secured revolving credit facility (the “Facility”) with a private lender (the “Lender”) that is secured on accounts receivable and inventory, with a second lien over the Company’s other assets.  The Facility has an initial term of one-year, subject to renewal for up to an additional year.

Upon closing of the Facility, TGOD will be able to draw $10 million.  The remaining $20 million will become available as TGOD ramps up its operations and additional borrowing base becomes available from inventory and accounts receivable generated from operations.  The Company’s existing lender (the “Senior Lender”) has also agreed to advance an incremental $5 million on the Company’s accordion facility, pending the amendment of the existing credit agreement.

 


StaffStaffMarch 31, 2020
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8min1870

It’s time for your Daily Hit of cannabis financial news for March 31, 2020.

On The Site

Zenabis

Under the cover of darkness Zenabis Global Inc. (TSX:ZENAdelivered its earnings in Canadian dollars. It was 1 am when Zenabis issued its press release reported that its 2019 net revenue was $66.5 million, while its net loss for the year was $127 million or $0.53 per share.

The net revenue did increase 850% over 2018’s $7 million, the net loss for 2019 ballooned from 2018’s net loss of $32.5 million or $0.22 per share. The net losses included non-cash impairment losses of $9.3 million or $0.37 per share. The company said that the cannabis segment increased 316% to $29.1 million from $7.0 million in 2018 and the propagation segment increased to $38.6 million

High Tide

Alberta-based, retail-focused cannabis company High Tide Inc.  (CSE:HITI) (OTCQB:HITIF) delivered its financial results for the first fiscal quarter of 2020 ending January 31, 2020. Revenue for the quarter increased by 173%, to $13.6 million from $5 million in the previous year. The company said that the increase in revenue was primarily driven by the retail segment of the Company with operations of Canna Cabana and KushBar.

The company managed to trim its operating losses to $1.9 million from last year’s $4.8 million at the same time period. The net losses remained flat at $3.8 million for the 2020 fiscal first quarter.

Emerald Health

Emerald Health Therapeutics, Inc. (OTCQX:EMHTF) reported some of its results for the fourth quarter and year of 2019 for its British Columbia-based joint venture, Pure Sunfarms (PSF). The company release the net sales for the year and the fourth quarter of 2019 were $82.8 million and $12.1 million, respectively, compared to $4.9 million and $4.7 million.

The company said this consisted entirely of dried cannabis. PSF also recognized revenue of $8.1 million upon the completion of the Settlement Agreement with Emerald in Q4, but it wasn’t clear if this figure was included in the $12 million figure or if it was in addition to that.

MJardin

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) decided to terminate its previously announced joint venture partnership with Rama First Nation that included prospective plans for a cultivation facility. The company said that the announcement was part of its ongoing review, evaluation and turnaround process and that it has actioned amendments to the Managed Services Agreements (“MSAs”) which were negotiated and put in place by previous management.

In Other News

CannTrust

CannTrust Holdings Inc. (NYSE: CTST) announced it has obtained an order (the “Initial Order”) from the Ontario Superior Court of Justice granting protection under the Companies’ Creditors Arrangement Act. The Initial Order provides for a stay of proceedings in favour of the Applicants for an initial period of 10 days. Despite the efforts by CannTrust’s management and Board of Directors to preserve the Company’s cash liquidity while seeking to restore the Company to operations and resolve the multiple litigations and other contingent claims facing the Company, the Company’s future remains uncertain. Without its cannabis licenses, the Company has been unable to generate any meaningful revenue since June 2019. As of March 20, 2020, CannTrust had a cash balance of approximately $145 million.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) has received approval for the dual listing of its common shares on the Canadian Securities Exchange (CSE). Columbia Care’s common shares will begin trading in Canadian Dollars on the CSE on March 31, 2020 under the symbol CCHW. In addition, the Company’s common shares will continue to trade in Canadian Dollars on its primary, senior listing exchange, the NEO Exchange (“NEO”), as well as the OTCQX® Best Market in US Dollars.

Medicine Man

Medicine Man Technologies, Inc. (OTCQX: MDCL) reported total revenue was $3.3 million during the three months ended December 31, 2019, an increase of approximately 54% as compared to $2.1 million in the same period in 2018. All areas of the business rose quarter over quarter, except for litigation revenue. Net loss was $3.4 million for the quarter-ended December 31, 2019, or a loss of approximately $0.10 per share on a basic weighted average, as compared to a net loss of $4.2 million, or a loss of approximately $0.17 per share on a basic weighted average, for the quarter-ended December 31, 2018.

Full Year 2019 Financial Results
Total revenue was $12.4 million during the twelve months ended December 31, 2019, an increase of approximately 31% as compared to $9.4 million in the same period in 2018. All areas of the business rose year over year, except for the one-time sale of the Canadian master license last year for $3.5 million. Net loss was $17.0 million for the year-ended December 31, 2019, or a loss of approximately $0.50 per share on a basic weighted average, as compared to net income of $0.9 million, or $0.04 per share on a basic weighted average, for the year ended December 31, 2018.

Tilray

Tilray, Inc. (NASDAQ: TLRY) unanimously approved the pro rata release of 11 million shares of Class 2 common stock held by the former equity holders of Privateer Holdings, Inc. The shares are being released from lock-up agreements entered into in under the Agreement and Plan of Merger and Reorganization, dated September 9, 2019, by and among Tilray, Privateer, Down River Merger Sub, LLC, a Delaware limited liability company and wholly owned subsidiary of Tilray, and Michael Blue, as the Stockholder Representative. The waiver and release will take effect on April 3, 2020, and the released shares may be sold on or after that date, subject to applicable securities law or contractual limitations.


StaffStaffMarch 30, 2020
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6min1760

It’s time for your Daily Hit of cannabis financial news for March 30, 2020.

On The Site

Cronos Group

Good luck making sense of Cronos Group Inc. (CRON.TO) (CRON.TO) 2019 fourth quarter and full-year business results. The company said it will restate its unaudited interim financial statements for the first, second and third quarters of 2019. The icing on the earnings cake was that it will also reduce revenue for the three months ending March 31, 2019, by C$2.5 million and the three months ended September 30, 2019, by C$5.1 million.

HEXO

HEXO Corp. (NYSE: HEXO)  reported a staggering net loss of C$289 million for fiscal 2020 second-quarter ending January 31, 2020. The net revenue for Hexo increased by 17% to $17 million from $14.5 million in the first quarter. The earnings are reported in Canadian dollars.

The loss from operations for the quarter was $289.4 million, compared with a loss of $60.6M in the prior period. The company said that excluding non-cash write-downs and impairment charges in the quarter, the adjusted net loss was ($23.2M) compared with ($34.0M) in Q1’20. This was basically one of those kitchen sink quarters. The company just tossed everything but the kitchen sink into the loss column and just ripped the bandaid off.

Champignon

Medicinal mushroom company Champignon Brands Inc. (CSE: SHRM) has entered into a definitive agreement to acquire Tassili Life Sciences Corp. in an all-stock deal. Tassili will receive 16 million shares, which is roughly C$7.3 million.

The acquisition will expand Champignon’s preclinical trial pipeline, as well as its aggregation of broad intellectual property related to the development of novel psychedelics therapeutics and their delivery systems, targeting multiple pathological psychological diseases.

Tassili working to develop effective psilocybin-based therapeutics for the treatment of mild traumatic brain injuries (mTBI) and/or post-traumatic stress disorder (PTSD). The company is doing this in partnership with a multidisciplinary team of scientists and physicians at the University of Miami.

Cannabis Consistency

According to Vividata’s National Cannabis Consumer Study, 70% of consumers are not sure they know the difference between THC and CBD. Moreover, quality remains the top criterion in selecting a cannabis product for purchase. How are companies setting the standards for quality and how are we researching consumers to understand their experiences with cannabis products accurately and ethically? This post explores the manufacturing and research standards to consider when conducting research studies with cannabis.

In Other News

TerrAscend announced it will open its award-winning Apothecarium branded dispensaries in 2 PA locations – Lancaster and Plymouth Meeting – in order to serve Pennsylvania medical marijuana patients. The Plymouth Meeting location will even have PA’s first drive-through pick up to allow patients to access their medicine while maintaining social distancing. TerrAscend currently supplies its products to 65 of the 76 dispensaries in the state. To service increased demand for its wholesale business, TerrAscend has recently tripled its cultivation footprint and has hired 30 new positions at its 140,000 square foot facility. The Company continues to actively recruit employees for cultivation and manufacturing, as well as the new Apothecarium retail outlets.

Elixinol has launched a worldwide rebrand and an innovative new line of wellness products designed to build upon its existing consumer trust and knowledge about CBD. “We know that this is an unprecedented time. The novel coronavirus (COVID-19) has been declared a global pandemic and it is impacting many people, and while this rebrand has been in the works for some time, we believe our products are more important than ever now as we continue to serve consumers around the globe and focus on people’s health and wellness,” said Stratos Karousos, CEO of Elixinol Global.

Grenco Science (G Pen), the leader in advanced technology cannabis vaporization, announced a brand partnership with B Real, the critically acclaimed artist, Cypress Hill frontman and cannabis entrepreneur behind Dr. Greenthumb’s Dispensaries. The historic partnership represents a revolution in cannabis retail and product development as the two pioneers in music and cannabis collaborate on the global line of G Pen advanced technology vaporizers, introducing iconic co-branded product offerings and fully integrating the G Pen line into Dr. Greenthumb’s Dispensaries with custom build-outs in California. I would love to talk to you further about G Pen and the exciting partnership with B Real!


StaffStaffMarch 26, 2020
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7min2760

DaVinci has been leading the vaporizer market for almost 10 years (the company launched its original vaporizer in 2012). Founder Cortney Smith (Cort) is known for engineering vaporizer devices that set the industry standard.  When Apple banned vaping apps, his team created the first on-device dosage control in just 3 days, to make sure every user has access to their dosage information. Cort has a vision for clean, responsibly built vaporizer devices that can put the cannabis industry at the forefront of mainstream consumer technology.

Executive Spotlight: Cortney Smith, CEO, and founder, DaVinci

Title: Founder, Inventor, and Chief Executive Officer

Company: DaVinci

Years at current company: Nine; I founded DaVinci in 2011.

Education profile: Graduated from Brigham Young University with a degree in Chinese and International Relations.

Most successful professional accomplishment before cannabis: Before becoming a cannabis entrepreneur, I brought bungee jumping to China in the 1990s. I moved to China as part of my college education, and in 1991 I founded Bungee International, which designed, manufactured and installed large-scale theme park attractions across China. Bungee International became the world’s largest bungee jumping company, with over 2 million jumpers and 70 locations throughout Asia. My passion for extreme sports also led me to produce China’s first X Games event in 1998.

Company Mission: I founded DaVinci with the desire to change the world’s imagination of what is possible for plant-based wellness. Drawing from my history in manufacturing and hardware design, DaVinci’s mission is to innovate cannabis consumer tech while bringing responsible consumption to the forefront.

Company’s most successful achievement: We continue to design and produce new advanced devices that cannabis consumers deserve while tackling the challenges of the vaporizer market. From the 2019 vaping injury outbreak to the Apple App Store ban on vaporizer apps, we’ve weathered quite a few obstacles just in the past year.

Fortunately, our team has built responsibly from the start with clean, medical-grade hardware—and we have the ability to pivot at a moment’s notice. We started 2020 with the launch of the DaVinci IQ2. Our engineers designed an exceptional portable device that works with both flower and concentrates, and has new features that really resonated with cannabis aficionados. To overcome Apple’s app ban, for example, we developed the world’s first Load Your Own & Know Your Dose feature that gives consumers their dosage information right on the device. And the IQ2’s adjustable airflow is another innovation for which we’ve received a lot of positive feedback.

Necessity is the mother of invention. When you’re an inventor, you need to believe that anything is possible with human ingenuity. Without that inventor mindset, you don’t open yourself up to the new solutions that must be created in times of uncertainty. The cannabis companies that will succeed are the companies with a culture of possibility. That’s how you win in a market that faces as many barriers as cannabis does.

Has the company raised any capital (yes or no): No, we have no debt and have always operated as a boot-strapped organization.

Any plans on raising capital in the future? Yes, we will be seeking capital in the future to aid in the expansion of the company.

Most important company 5-year goal: Consumers need quality cannabis brands they can trust. As the leading vaporizer brand, DaVinci has a responsibility to continue our legacy of safety and innovation in everything we do, and that comes from delivering a consistent product experience, whether that’s our debut Classic vaporizer that’s still on the market or a more recent model. Our goal for the next five years is to expand our product offerings while building brand loyalty and trust that we’re already known for. From the IQ2 to other new product categories we have in the works, we’re supporting cannabis consumers and moving the market forward for years to come.


StaffStaffMarch 25, 2020
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6min2740

It’s time for your Daily Hit of cannabis financial news for March 25, 2020.

On The Site

Top Cannabis Legal Firms

In these trying times, it’s always good to have an excellent lawyer on your side. A strong contract goes a long way towards protecting your interests and if you find yourself in a dispute, you certainly want someone who understands your business and can work with cannabis companies.

Green Market Report compiled this list with assistance from the Cannabis Law Report. We separated the list into two categories: cannabis only legal firms and large cannabis divisions within larger firms. We put them in alphabetical order and there is no ranking.

Also, no free legal advice was given to get on this list nor did anyone pay to be included.

EcoWaste

Interview with Arman Zeytounyan, CEO and Co-Founder of EcoWaste in California

The “Beast” in this scenario is cannabis sustainability, and the distinct lack thereof. The market for change is wide open, and here’s the perspective of one man and the vision of one California company who is getting an edge in the sustainability market due to the cannabis waste removal and compliance services they offer.

EcoWaste ensures compliance every step of the way for the security of your cannabis license. EcoWaste provides an exceptional, reliable and proven cannabis waste disposal. EcoWaste believes there’s a better way to conduct cannabis waste management, combining the right knowledge and provide a solution that is effective and embraces the regulations.

Jushi

Multi-state operator Jushi Holdings Inc.  (CSE: JUSH) (OTCQX: JUSHF) said that its dispensaries received the “life-sustaining” business designation in Pennsylvania and the “essential services” designation in Illinois. As a result, the company’s six dispensaries in Pennsylvania, operating under the brand “BEYOND/HELLO,” and its two dispensaries in Illinois, operating under the brand “The Green Solution” (transitioning to BEYOND/HELLO branding later this year), will remain open.

Covid 19

Cannabis dispensaries have been super busy as sales skyrocketed ahead of lengthy lockdowns. With anxiety levels rising, many consumers turned to cannabis to ease their tensions and help make the time stuck inside go by a little easier. For some companies, they have taken extra steps in order to assist in the fight against the virus.

In Other News

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced the appointment of Errol Schweizer to its board of directors. Mr. Schweizer has over 25 years of experience in the food and cannabis industries, including 15 years at Whole Foods Market, where he held a number of roles within the organization, including Vice President of Grocery. In this role, Mr. Schweizer oversaw merchandising, product assortment, promotional programs and financial performance for over 80 product categories and $5 billion in annual sales. Mr. Schweizer departed Whole Foods Market in 2016 and has been a strategic advisor to several high-growth retailers and brands.

Simultaneous to Mr. Schweizer’s appointment, the Company announces that Jay Brown resigned from the Company’s Board, effective March 24, 2020. Mr. Brown has left the Board in order to focus on other business endeavors and will continue to serve as a strategic advisor to the Company’s management team.

Vertosa

Vertosa announced new product launches in conjunction with four new brand partnerships for spring 2020: the start-up THC sparkling beverage  line Calexo; hemp-CBD infused cold brew coffee from California cannabis brand CalivaCC Wellness’ first ever CBD sensual care products; and a custom development partnership with Resonate Blends.

“Vertosa’s reach has expanded rapidly in the first quarter of 2020 and we’re thrilled to help propel best-in-class infused products from innovative brands such as Calexo, Caliva and CC Wellness to market,” said Vertosa CEO Ben Larson. “Our collaboration with Resonate Blends, a company committed to utilizing cannabinoids to their full wellness potential, is also an important step towards the mainstreaming of cannabis. Thanks to this partnership, we can create a multitude of cannabis products that fit an array of wants and needs.”


StaffStaffMarch 25, 2020
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7min5020

Cannabis dispensaries have been super busy as sales skyrocketed ahead of lengthy lockdowns. With anxiety levels rising, many consumers turned to cannabis to ease their tensions and help make the time stuck inside go by a little easier. For some companies, they have taken extra steps in order to assist in the fight against the virus.

Canopy Growth/Hexo

BNN Bloomberg reported that Canopy Growth (NYSE: CGC) spokesperson Jordan Sinclair said that the company donated “thousands” of gloves, Tyvek suits, and masks sourced from two massive greenhouses in British Columbia that it shut down earlier this month. “We committed our personal protective equipment from our recently shuttered B.C. sites to the front-line medical staff at a local health unit in Victoria,” Sinclair said in an email to BNN Bloomberg. Hexo said it donated 150 N95 facemasks to paramedic services in the Outaouais region in Quebec to “help fill their critical need”, according to a company spokesperson.

CannaCraft

The edible cannabis company CannaCraft said it has converted a portion of their manufacturing space and production capacity to formulate and package individual bottles of hand sanitizer that will be donated to individuals and organizations throughout California.

The company trialed the program last week, creating hundreds of tubes that were distributed to employees and customers. After the successful test run and registering with the FDA, the company procured enough materials to make 40 gallons (or 5,000 1oz. tubes) of hand sanitizer. The hand sanitizer will be donated to non-profits, customers, employees, and essential businesses and will be distributed later this week by Kind House Distribution, the company’s wholly-owned distribution arm.

“We are doing everything we can to protect our employees and our communities by adhering to guidelines and directives from officials and experts. At the same time, we are uniquely positioned to help in other ways because we have manufacturing equipment, scientific expertise, and a statewide distribution network built into our business,” said Jim Hourigan, CannaCraft CEO. “When we started hearing reports of a shortage in hand sanitizer, we knew that we could be of assistance without negatively impacting our employees or our operations.”

The hand sanitizer was formulated by CannaCraft’s head of R&D, Matthew Elmes, Ph.D., and is being packaged and distributed by a limited production team, due to the company’s decision to restrict facility access to essential production and distribution staff only. The teams have been split into smaller groups and are spread throughout CannaCraft’s 70,000 ft2 headquarters to reduce unnecessary interactions. Additionally, CannaCraft has implemented robust health and safety protocols throughout every step of the supply chain process.

Glass House

Glass House Group is donating 1,000 protective gowns to Cottage Hospital, a Santa Barbara hospital, so their healthcare workers can use the disposable protective equipment during the COVID-19 health crisis. The company is also working with its suppliers to find extra masks for frontline healthcare workers, donating 5% of their local product sales from its Santa Barbara dispensary to the food bank to help kids get free nutritious meals while schools are closed and offering all of their workers two weeks of paid leave.

Marrone Bio Innovations

Plant health company Marrone Bio Innovations, Inc.  (NASDAQ: MBII) announced that its Jet-Oxide® 15% post-harvest sanitizer and industrial disinfectant product is now allowed by the U.S. EPA for use against human coronaviruses to sanitize industrial food and agricultural hard surfaces.  The allowed use was based on a study conducted by the EPA with Human Coronavirus Strain 229E (one of the viruses associated with human colds)  on the effectiveness of spreading of diseases on hard surfaces.

The study, conducted at a sanctioned EPA laboratory, met all requirements for 40CFR 160 – yielding a 99.99% reduction of Human Coronavirus Strain 229E. The study was conducted using a dosage of approximately 1300 ppm (0.130%) of the active ingredient with a contact time of 60 seconds at an ambient temperature of 22 degrees Celsius.

Crazy Calm

CBD coffee brand Crazy Calm said that for every online order from now until the end of March, all profits will be donated to Direct Relief. The company said it chose Direct Relief (DirectRelief.org) because it has a long-standing track record, have already helped tremendously and will continue to do so:

“In the U.S., Direct Relief is delivering protective masks – along with exam gloves and isolation gowns – to health care organizations in areas with confirmed COVID-19 cases.”

“In China, Direct Relief has delivered via FedEx more than 30,000 pounds of protective gear — nearly 800,000 N95 and surgical masks, more than 400,000 gloves, and numerous coveralls, face shields, and shoe covers — to frontline health workers.”


StaffStaffMarch 24, 2020
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5min2210

It’s time for your Daily Hit of cannabis financial news for March 24, 2020.

On The Site

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said it will acquire three Arrow Alternative Care (AAC) dispensaries in the state of Connecticut. AAC operates three out of 18 total stores currently operational in the state. Its first store opened in Hartford in 2014, the second in Milford in 2017, and the Stamford store opened its doors in January 2020.

Curaleaf is already one of four licensed growers in Connecticut and currently operates a 60,000 square foot cultivation facility in Simsbury that provides high-quality cannabis products to over 40,000 patients throughout the state. The acquisition will now allow Curaleaf to be vertically integrated, providing products to the patients directly as well as through existing wholesale channels.

DEA

Late last week, the Drug Enforcement Administration (DEA) and the Department of Justice announced action to further expand opportunities for scientific and medical research on marijuana in the United States.

The Notice of Proposed Rulemaking was filed for public inspection on March 20.  The proposed rule was then published in the Federal Register on Monday, March 23.  The new approach will expand opportunities for marijuana growers who seek to grow marijuana for research purposes and outline the agency’s proposed process for administering the new program, consistent with applicable law.

Leafly

Private cannabis company Leafly laid off 91 employees this week amid the COVID-19 pandemic. Former Leafly editor Ben Adlin announced on Twitter that he had heard Leafly had made the layoffs which were later confirmed by the company. Adlin also noted the company still owed him $6,700. Adlin’s employment was prior to the pandemic layoffs. The company said it would provide one week of severance pay for the laid-off employees and two months of health insurance

In Other News

Charlotte’s Web

Charlotte’s Web announced a definitive agreement to acquire Abacus, where the combined entity is anticipated to represent nearly 35% of U.S. CBD sales withing the Food/Drug/Mass Retail channel.  Under the terms of the Arrangement Agreement, shareholders of Abacus will receive 0.85 of a common share of Charlotte’s Web for each Abacus Share held. The Exchange Ratio implies a price per Abacus Share of C$4.39, representing a premium of 38% based on the 10-day volume-weighted average price of the Abacus Shares on the Canadian Securities Exchange and the 10-day VWAP of the Charlotte’s Web Shares on the Toronto Stock Exchange as of March 20, 2020, for implied total equity consideration of approximately C$99 million.

Elixinol

Elixinol, a global hemp-derived CBD brand, announced it has named Tom Siciliano as the organization’s new CEO Americas effective immediately. Siciliano is charged with leading Elixinol’s refined strategy on hemp-derived CBD in the Americas region.

Siciliano has an extensive background in the cannabis industry. In his most recent role, Siciliano was president of Nutritional High International Inc. a vertically integrated cannabis manufacturing and distribution company with operations in Colorado, Oregon, Washington, Nevada and California. Prior to Nutritional High, Siciliano served as President and Chief Financial Officer for Canna Security America where he turned the company into the second-largest security company within the cannabis industry.


StaffStaffMarch 24, 2020
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3min2700

Shannon Reed is a brand marketer with a decade of experience building global consumer focused brands. She’s worked on some of the largest brands in the world including Samsung, Google, Tinder and Bacardi.

Throughout her career Shannon has focused on marketing based on deep consumer insights, helping to launch first of its kind digital experiences for Google Star Wars as well as Tinder’s Swipe Night.

GMR Executive Spotlight Interview:

Full Name: Shannon Reed

Title: VP of Marketing

Company: Omura 

Years at current company: Less than 1 year

Most successful professional accomplishment before cannabis: I have a deep love of technology and have had the honor of working with some absolutely amazing technology brands delivering first of its kind products with Google, Samsung and Tinder.

Company Mission: At its heart Omura is a technology brand, founded by flower enthusiasts. Omura’s mission is to lead heat-not-burn technology innovation by delivering the cleanest whole flower vaping experience. 

Company’s most successful achievement: Development of our proprietary technology for the entire Omura Platform. We’ve created patented technology for our flower sticks, the method to fill our flower sticks, the filling equipment as well as the heat-not-burn technology within the oven itself.

Has the company raised any capital (yes or no): We’ve successfully raised $5 million in capital in the last year. 

Any plans on raising capital in the future? Yes. 

Most important company 5 year goal: We want to take the Omura platform global and become the go to brand for vaporization of whole flower. This will allow us to create a new category for consumers that focuses on the best way to vaporize whole flower. 


StaffStaffMarch 24, 2020
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3min2080

Late last week, the Drug Enforcement Administration (DEA) and the Department of Justice announced action to further expand opportunities for scientific and medical research on marijuana in the United States.

The Notice of Proposed Rulemaking was filed for public inspection on March 20.  The proposed rule was then published in the Federal Register on Monday, March 23.  The new approach will expand opportunities for marijuana growers who seek to grow marijuana for research purposes and outline the agency’s proposed process for administering the new program, consistent with applicable law.

“The Drug Enforcement Administration continues to support additional research into marijuana and its components, and we believe registering more growers will advance the scientific and medical research already being conducted,” said DEA Acting Administrator Dhillon.  “DEA is making progress to register additional marijuana growers for federally authorized research, and will continue to work with other relevant federal agencies to expedite the necessary next steps.”

This proposed rule will result in additional registered growers and a larger, more diverse variety of marijuana available for research. The new regulations will enable DEA to evaluate each of the 37 pending applications to grow marijuana for research under the applicable legal standard and conform the overall program to relevant laws.

The release of this Notice of Proposed Rulemaking is the latest and most significant action taken to expand the number of registered marijuana growers in the United States and underscores the federal government’s support for scientific and medical research with marijuana and its chemical constituents.

Since the beginning of this Administration, there has been a 58 percent increase in the number of active researchers registered with DEA to conduct research with marijuana, marijuana extracts, and marijuana derivatives – from 377 in January 2017 to 595 in March 2020. At present, more researchers are registered to conduct research on marijuana, marijuana extracts, and marijuana derivatives than on any other schedule I substance in the United States. More than 70 percent of DEA’s total schedule I research registrant population is registered to conduct research on these substances.  To accommodate this growth in research, DEA has increased the annual production quota for marijuana by 575 percent – from 472 kilograms in 2017 to 3,200 kilograms in 2020.


StaffStaffMarch 24, 2020
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Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said it will acquire three Arrow Alternative Care (AAC) dispensaries in the state of Connecticut. AAC operates three out of 18 total stores currently operational in the state. Its first store opened in Hartford in 2014, the second in Milford in 2017, and the Stamford store opened its doors in January 2020.

Curaleaf is already one of four licensed growers in Connecticut and currently operates a 60,000 square foot cultivation facility in Simsbury that provides high-quality cannabis products to over 40,000 patients throughout the state. The acquisition will now allow Curaleaf to be vertically integrated, providing products to the patients directly as well as through existing wholesale channels.

“Arrow Alternative Care’s stores are the gold standard of pharmacy-like operations in Connecticut. They have grown a large, dedicated patient base by providing exceptional service and quality products,” said Joe Lusardi, CEO of Curaleaf. “This acquisition will be immediately accretive and provides Curaleaf with vertical integration in Connecticut. We can now bring the knowledge we’ve cultivated through our experience across 15 states to Connecticut’s medical cannabis patients directly.”

Essential Services

The company said that it has received an Essential Services Designation in key markets which will allow the company to continue to meet the needs of its customers. Curaleaf noted that the designation means that like pharmacies and grocery stores, Curaleaf dispensaries provide an essential service to communities and are authorized to remain open during the COVID-19 outbreak.

“The COVID-19 situation is evolving rapidly and we are responding as quickly as possible to ensure we can continue to meet the needs of our customers. We have never been more committed to providing our vital services and products and will continue to do everything we can to fulfill that mission while protecting the wellbeing of our dedicated employees. In these difficult times, we will be hiring employees and working with local organizations to provide job opportunities to those who are out of work,” said Joseph Lusardi, Chief Executive Officer of Curaleaf.

Curaleaf dispensaries will remain open in ArizonaFloridaMaineMarylandMassachusetts (medical only), Nevada (delivery only), New JerseyNew York, and Oregon. Curaleaf said it has adjusted its dispensary schedule to accommodate increased demand and prioritize vulnerable customers, including dedicated hours for seniors. The company is also enforcing social distancing, increasing sanitation and hygiene measures and using technology to minimize contact and increase safety by working to employ curbside delivery, mobile pre-ordering, express pickup, and a waitlist ordering app.

Curaleaf is working to minimize risk to its customers and employees by collaborating closely with local and statement governments, and implementing new procedures, technologies and policies at its dispensaries.



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