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StaffStaffNovember 25, 2019
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7min1620

It’s time for your Daily Hit of cannabis financial news for November 25, 2019.

On The Site

Organigram

Organigram Holdings Inc. (OGI) (OGI) reported that its gross revenue grew to $19.2 million for the fourth quarter ending August 31, 2019, versus $3.1 million for the fourth quarter in 2018. The net loss for the 2019 fourth quarter was $22 million versus last year’s net income of $18 million for the same time period. The larger loss was due to “non-cash fair value changes to biological assets and inventories.”

For the full year, Organigram delivered net revenue of $80.4 million, which grew 547% over 2018’s $12.4 million. The net loss for 2019 was $9.5 million versus 2018’s net income of $22.1 million.

Four Biggest Fibs

The Facilities Are Fully Funded

On Oct. 9, 2019, The Green Organic Dutchman (OTC: TGOD) said in a press release that it was updating the market on credit financing. In the statement, it noted that “The Company may revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain sufficient financing on reasonable terms, within the required timeframe. There can be no assurance that this review will result in the completion of any financing transaction.” Basically, TGOD said it needed money to finish the projects as planned.

Business on a Budget

Guest Post by Joseph Collins, Content Director at The Amsterdam

Ever since states began to legalize medical and recreational marijuana, the cannabis business is booming. Eleven states and the District of Columbia have passed laws making recreational marijuana use legal. Another 22 states have laws legalizing medical marijuana. The Farm Bill of 2018 legalized hemp for industrial purposes, including the production of CBD oil.

It is not too late to get in on the profits by starting your own cannabis business. If you’re thinking that too much startup capital is needed, then take a look at these cannabis entrepreneurs.

In Other News

MJardin

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, today announced its financial and operating results for the three and nine-month periods ending September 30, 2019. Revenue of $7.6 million, includes $0.8M contribution from Cheyenne since acquisition date; Generated positive Adjusted EBITDA of $0.5 million; Sequential revenue growth from AMI facility of 47% compared to the prior quarter.

”The third quarter results reflect another period of building out size and scale across our operational platform, which as expected comes with challenges in any business, however we continue to successfully tackle these issues as we execute against our strategic plans which are centred around growth and profitability in 2020,” commented Pat Witcher, CEO of MJardin. “We further reduced SG&A and have decreased those costs by 45% compared to Q2 2019. This allows us to focus on and effectively allocate resources to developing our product lines within Health Canada’s upcoming regulations around extraction, edibles and topicals. We continue to invest in these business lines on both sides of the border. Responsible deployment of capital to maximize shareholder value remains our top priority as we grow our operational footprint with accelerated revenue growth.”

GrowGeneration

GrowGeneration Corp. (NASDAQ: GRWG), the largest chain of specialty retail hydroponic and organic garden centers, with currently 25 locations, is pleased to announce that its common shares have been approved for listing on the Nasdaq Capital Market. GrowGeneration Corp. common shares will begin trading on NASDAQ on December 2, 2019 under the trading ticker symbol “GRWG.”

“This up-listing to NASDAQ is a major corporate milestone and reflects the financial performance of our Company. As the premier hydroponic supplier in the country, we continue to focus on expanding the number of garden centers, increasing our commercial portfolio of customers, focusing on the cutting-edge products, while expanding revenue and EBITDA. We believe our NASDAQ listing will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors” said Darren Lampert, CEO of GrowGeneration Corp.

True Leaf

True Leaf Cannabis Inc.  (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) has secured licenses from Health Canada to cultivate, process and sell cannabis for medical purposes pursuant to the Cannabis Act for its 18,000 square foot True Leaf Campus facility in Lumby, British Columbia.

The license allows True Leaf to begin cultivating, processing and selling medical cannabis from its facility immediately and to produce alternative cannabis products such as edibles, topicals, and capsules. True Leaf Campus sits on a 40-acre site of industrial zoned land wholly owned by True Leaf.

“Today marks an important milestone for True Leaf as becoming a licensed producer helps support the continued development of our therapeutic pet care products,” said Darcy Bomford, Founder and Chief Executive Officer of True Leaf. “Our facility is now licensed and meets EU GMP and HACCP standards. This is required for the ‘Cannabis 2.0’ market in Canada and also opens the door to export cannabis to the booming European market.”


StaffStaffNovember 25, 2019
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8min2580

Guest Post by Joseph Collins, Content Director at The Amsterdam

Ever since states began to legalize medical and recreational marijuana, the cannabis business is booming. Eleven states and the District of Columbia have passed laws making recreational marijuana use legal. Another 22 states have laws legalizing medical marijuana. The Farm Bill of 2018 legalized hemp for industrial purposes, including the production of CBD oil.

It is not too late to get in on the profits by starting your own cannabis business. If you’re thinking that too much startup capital is needed, then take a look at these cannabis entrepreneurs.

Success Stories

Gofire creators Peter Calfree and John Woodbine started Gofire with one goal: to create the perfect vaporizer. The vaporizer they created delivers a precise dosage of cannabis. They started their business with $200, used to bribe a local college student for access to a 3-D printer to make a prototype. They used that prototype to get the rest of their funding secured.

Fruit Slabs founders Roxanne Dennant and Brian Cona used just $1,000 to buy materials and equipment to make organic fruit leather edibles. They started out by selling to friends and family and now, their product is available in 65 stores across California.

Think Outside the Dispensary

When it comes to what kind of business to start, many people automatically think about starting a dispensary like TheAmsterdam or a grow operation. While this may seem like the most profitable idea, consider the fact that dispensaries and grow operations are the most strictly regulated. Also consider that as more states legalize cannabis, these types of businesses will begin seeing fewer and fewer profits. The crucial thing when it comes to starting a business in any industry is to come up with a unique idea that fulfills an unmet need. While funding a grow operation or dispensary is probably the most expensive option, there are options that do not touch the plant itself and thus, require less funding than the $1 million in cash needed to start a dispensary in some locations.

Ancillary marijuana businesses, however, tend to be less burdened with the red tape and high taxes associated with businesses that directly touch the cannabis. They also tend to cost less in startup capital, as mentioned above. For example, if you’re a foodie, you can create a unique line of edible treats. The startup cost is generally only the ingredients. If you are an artist, you could consider designing your own unique line of cannabis-themed t-shirts or accessories. Perhaps you know your way around a cannabis-legal city and can offer tourists a unique glance into the area.

Another area where you can get into the cannabis business with little funding is in the media sector. You can start your own blog and fill it with cannabis-related news, reviews of products, and recipes for edibles. YouTube also provides a way to get into the cannabis media business. You can start a channel reviewing different vaporizers, products, and even marijuana strains. Kick in some pay-per-click advertising, and you can start making money with very little startup funds needed.

Ways to Secure Funding

If your idea is the kind of groundbreaking concept that is beyond your financial means, you don’t have to fully fund the venture yourself. You can initially approach friends and family members to kick in on startup costs. Be sure that you have a rock-solid business plan in place and put how and when you’ll repay the loan in writing. You can also consider crowdfunding your venture. Platforms like Kickstarter have given many a cash-poor entrepreneur the necessary startup funds to get going. Other sites like Patreon can help get a media startup going. Of course, you need to be able to offer your supporters something in return.

Once you’ve gotten started and realize that it’s time to expand, you can begin looking for angel investors. They will put down their own capital as an investment and are often the first outsiders to invest. They also make great mentors. The trick is to attract one!

The cannabis industry is expected to be worth $20.2 billion by 2021. It presents many exciting opportunities for any entrepreneur. You don’t have to have a lot of startup capital. Just an amazing idea and the desire to succeed.

 

 


StaffStaffNovember 21, 2019
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6min6480

LAS VEGAS, NV., November 21, 2019 /AxisWire/ The next generation of cannabis retail technology has arrived to solve one of the biggest pain points facing mainstream cannabis consumers: Deciding which strain, product or brand to purchase. Introducing Cannabiscope, a new Software as a Service (Saas) platform combining science, data and technology to reinvent how retailers merchandise cannabis, and how both medical and recreational consumers make smart, well-informed purchase decisions.

The Cannabiscope shopping tool, customized to meet each organizations needs, is an interactive wheel that invites consumers to learn and shop at the same time. Whether browsing online or at a retail location, through a series of clicks shoppers select desired effects, preferred delivery methods, flavor, scents, dosage and more as the Cannabiscope wheel guides the consumer to the right product for them. The education model of the wheel is designed to turn cannabis confusion into curiosity, aiding newly informed customers to explore and make confident decisions on purchase choices that will more accurately reflect their desired cannabis effect.

Give Cannabiscope a spin!

“Whether they’re hoping to treat pain, anxiety or sleep issues, it is difficult for consumers to compare different cannabis strains or products and make an informed, confident purchase decision,” said Cannabiscope co-founder and CEO David Schacter. “We want to change how people think about and understand cannabis, and provide a science-led, data-backed platform for education and discovery.”

For businesses, Cannabiscope offers a customizable version of the wheel to reflect, track and market current inventory in real-time. In-store kiosks or online models present customers with informative, accurate menu offerings while providing robust back-end consumer insights to retailers. The platform allows brands to display detailed product descriptions, dosage information, product photos and certified lab results, allowing both medical patients and recreational customers to purchase with confidence.

“We believe the combination of the wheel’s ability to integrate buyer intent, consumer data, and information gathered from multiple points of sale will give our partners an edge in this incredibly competitive space through unique data insights,” stated Cannabiscope co-founder Paul Shockley. “Whether you are a retailer, cultivator or educator, Cannabiscope creates a new front door for your business.”

The robust content management system and integrated approach to point of sales tracking is designed around education, to solve for the lack of industry consumer data, and to empower the growth and success of the now and future cannabis industry. Cannabiscope’s technology is currently in use by over 250 cannabis companies and ancillary businesses, including:

 

 

In addition to the current cannabis-centric version of the wheel, the company has completed a recent round of funding to launch a CBD-specific, e-commerce enabled version, expected in the second quarter of 2020.

To support the next shift in cannabis retail history and join the Cannabiscope crowdfund, visit MicroVentures.

About Cannabiscope | Green Valley Affiliates Inc. 

Cannabiscope was founded in 2015 with the goal of making it easier for THC/CBD retailers to display their products in a way that both optimizes business operations and supports consumer education and satisfaction. Through the gamification application of their interactive Cannabiscope wheel consumers can explore new cannabis knowledge and learn the effects of each product before purchasing. Cannabiscope is a Software-as-a-Service (SaaS) menu platform that integrates with THC/CBD retailers’ point-of-sale (POS) systems to present their inventory in real-time onsite and online, giving dispensaries and other customers a competitive edge in this increasingly saturated market. To try out the interactive wheel, visit www.cannabiscope.com.

 

Media Inquiries:

Trailblaze on behalf of Cannabiscope

Lisa Weser

lisa@trailblaze.co

Brittany Confer

brittany@trailblaze.co


StaffStaffNovember 20, 2019
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8min15370

In a 24-10 vote, the House Judiciary Committee approved the MORE Act that would effectively end marijuana prohibition on Wednesday. This is the first time that a congressional committee has approved a bill to make cannabis legal.

“Today’s vote marks a turning point for federal cannabis policy, and is truly a sign that prohibition’s days are numbered,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “Thanks to the diligent efforts of advocates and lawmakers from across the political spectrum, we’ve seen more progress in this Congress than ever before. Supermajority public support for legalization, increasing recognition of the devastating impacts of prohibition on marginalized communities and people of color, and the undeniable success of state cannabis programs throughout the country are all helping to build momentum for comprehensive change in the foreseeable future.”

The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act was sponsored by House Judiciary Committee Chairman Jerry Nadler (D-NY) and would federally decriminalize and deschedule cannabis. In addition to that, the MORE Act contains strong social equity provisions with an emphasis on restorative justice for communities most impacted by cannabis prohibition.

“This committee vote is a historic step forward for cannabis policy reform at the federal level,” said Cannabis Trade Federation CEO Neal Levine. “The MORE Act would ensure cannabis consumers and businesses are treated fairly under the law. It would also bolster state and industry efforts to promote diversity within the cannabis business community, while helping communities and individuals adversely impacted by the war on drugs. A solid majority of Americans support ending cannabis prohibition, and we’re finally seeing that reflected in a vote on Capitol Hill.”

“These votes demonstrate the broad bipartisan support that exists in Congress for allowing states to determine their own cannabis policies,” Levine said. “There appears to be a consensus among both parties that the conflict between state and federal cannabis laws is untenable and needs to be resolved. We encourage our allies in the Democratic and Republican parties come together to find a bipartisan path forward and pass a law this Congress.”

Drug Policy Alliance Executive Director Maria McFarland Sánchez-Moreno said, “With today’s mark-up of the MORE Act, the United States is coming one step closer to ending the devastating harms of marijuana prohibition, which have fallen so heavily on Black and Brown people. This legislation won’t make up for the full scale of harm that prohibition has caused to its victims. It’s not going to return anyone their lost dreams, time lost at the mercy of the criminal justice system; or the years spent away from their families. But this legislation is the closest we’ve come yet to not only ending those harms at the federal level, but also beginning to repair them. Now it’s up to Congress to do the right thing and swiftly pass the bill to ensure justice is not delayed a moment longer.”

Max Simon, CEO of Green Flower Media said, “It’s exciting that government is finally aligning itself with what the people want — to decriminalize cannabis. No sensible person is still able to back up the ludicrous claim that cannabis should remain a Schedule 1 drug, and this vote would finally embrace this as truth.”

 

 


StaffStaffNovember 19, 2019
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10min1880

Minority Cannabis Business Association and Merida Capital Partners announced the winning recipients of investment through the Inclusive Industry (“i2”) Accelerator, which will deploy $500K initially to fast-track the development of five minority-owned businesses. MCBA and Merida launched i2 earlier this year to accelerate the development of minority-owned businesses in the cannabis and hemp industry by creating a meaningful executive mentorship program for underserved communities that could increase diversity and inclusiveness in key networks within the cannabis ecosystem and develop an infrastructure for entrepreneurs seeking capital.

“Our i2 Accelerator with Merida is a historic step towards creating a diverse, representative cannabis and hemp industry,” said MCBA President Jason Ortiz. “People of color have suffered from disproportionate enforcement of cannabis laws and have high barriers to entry and success in the hemp and cannabis industries. i2 provides companies with rigorous executive mentorship and critical resources to place them in the best possible position to successfully scale their enterprises and remove those barriers.”

“We are so proud to support these meritorious businesses and begin a sustained effort to close the inclusion gap for aspiring cannabis entrepreneurs in disadvantaged communities. The quality and number of applicants gave us confidence that this program will create incredible value for minority operators, investors and the industry at large, motivating us to significantly increase our target investment amount, so not one, but five minority-owned businesses could participate in the i2 Accelerator in this first round,” said Merida Capital Partners Managing Partner Mitch Baruchowitz.

The recipients:

Vega Holdings; Meriden, CT; $150K Investment: Vega Holdings is the only Latino-owned holder of a Connecticut pilot hemp license, operating in Meriden, Connecticut, with indoor and outdoor facilities that produce high-quality CBD and biomass. Luis Vega, a seasoned farmer and grower with an MBA and experience in the hospitality industry, returned to his family’s roots in farming to found Vega Holdings and will use his investment to significantly scale his existing hemp farming operation and product manufacturing.

High Road; Washington, D.C.; $100K Investment: High Road is an app-driven delivery platform that provides patients and consumers with access to licensed cannabis products through safe, convenient and compliant delivery services. The integrated, on-demand software company was founded by Jennifer Snowden, a former real estate and interior design executive turned entrepreneur. In addition to advocating for expungement and smart policy reforms, High Road hires and trains those convicted of nonviolent cannabis offenses. i2’s investment, business mentorship, networks and tools will help High Road expand its platform capabilities and propel its first mover advantage in East Coast markets.

Higher Learning Institutions; Pontiac, MI; $100K Investment: Higher Learning Institutions is a state-licensed vocational school with a cultivation and extraction lab and partnership with a major university that offers affordable, hands-on job training, educational certificates, career development, internships, free monthly seminars and job opportunities and placements in the cannabis industry. After researching the medicinal benefits of cannabis for his grandmother and taking a course at Oaksterdam University and consulting for cultivation facilities, Founder Sammie Rogers realized there were no institutions focused on assisting underserved communities with affordable career development, job training and placements in the cannabis industry. With Merida’s presence in the fast-growing Michigan market, the capital investment will help launch the school, broaden its inclusiveness efforts and close important educational and resource gaps in the cannabis sector.

James Henry; Oakland, CA; $100K Investment: In 2017, James Victor and John Alston cofounded James Henry, a minority- and veteran-owned lifestyle, health and wellness cannabis brand with licenses in manufacturing, distribution and retail delivery and a 1,700 sq. ft., green-zone facility in Oakland. With proprietary formulations developed by medical doctors, scientists and extraction experts to manage pain and other conditions, the company is committed to helping the U.S. address its opioids crisis through the promotion of responsible cannabis products for medicinal purposes, therapeutic assistance and lifestyle situations. James and John have incorporated original art and social equity as part of their brand ethos, infusing a balance of wellness and culture for consumers.

Canna Bistro; Atlanta, GA; $50K Investment: Canna Bistro offers CBD-infused foods out of a members café in Atlanta’s Historic West End. The company was founded in 2018 by Chef Swan Simpson, a self-trained vegan/vegetarian chef, who spent more than three decades perfecting plant-based, infused recipes and proprietary formulations. Initially, Chef Swan started selling $5 smoothies at pop-up retail locations across Atlanta, parlaying her loyal customer base into the first-all-CBD-infusion eatery in the southeastern U.S. In addition to incredible food Chef Simpson serves up, Canna Bistro promotes the hiring of individuals with non-violent, criminal records, along with business opportunities for previously incarcerated women and social good efforts in under-served areas.

 


StaffStaffNovember 19, 2019
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3min2000

The Flowr Corporation

The Flowr Corporation (TSXV: FLWR)(OTC: FLWPF) reported that it has closed its previously announced credit facility from a syndicate of lenders led by ATB Financial and including Farm Credit Canada. The $25 million facilities consist of a $24.5 million recapitalization term facility and a $500,000 revolving operating credit facility. Flowr will receive the first tranche of funding of approximately $20.05 million on closing with the remaining of the recapitalization term facility available subject to certain conditions.

“We are extremely pleased to strengthen our financial position through non-dilutive financing at attractive pricing,” commented Vinay Tolia, Flowr’s Chief Executive Officer.  “The reduced size of the ATB Credit Facilities compared to the initial commitment reflects our reduced capital needs as we focused on those investments with the greatest potential to generate cash flow in the near term.  With our third-quarter earnings release on November 26, 2019, we will provide our shareholders with a comprehensive business update.”

The company said it would release its third-quarter 2019 results after the close of the financial markets on Tuesday, November 26, 2019, which will be followed by a conference call and webcast to review these results at 5:30 p.m. Eastern Time.

Meta Growth

National Access Cannabis Corp (TSXV: META) d/b/a Meta Growth said that it has reached a new agreement to extend its $9,000,000 loan from Opaskwayak Cree Nation to December 31, 2022.

The original loan was set to mature on December 14, 2019.  As one of META’s largest shareholders, owning approximately 10.8 million shares, OCN has agreed to extend the maturity of the Loan until December 31, 2022, at an interest rate of 10% per annum, and an annual administration fee of $225,000.

“OCN sees the ongoing investment into META as a growth opportunity for both META and OCN.  The income that OCN generates from the interest on the Loan helps OCN with investing in our community infrastructure, such as housing,” said Christian Sinclair, Onekanew (Leader) of OCN and Board Member of META. “We hope to continue to capitalize on opportunities with META as the Ontario government is anticipated to issue additional licenses for cannabis retail locations.”


StaffStaffNovember 19, 2019
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5min2830

Full birth name: Diana Anglin

 

Title: Chief Operating Officer

 

Company: CannAmerica Brands Corp.

 

Years at current company: 1.5 years

 

Education profile: BS from Western Michigan University (1994)

 

Most successful professional accomplishment before cannabis: Previous to cannabis I was in the public higher education sector. I had plenty of experience interpreting rules for higher education like Title IV (federal financial aid), NCAA (National Collegiate Athletic Association), and college accreditation standards. While serving as the Graduation Services Advisors for the Colorado School of Mines I was able to motivate many students burned out from the rigorous program to stay focused and finish their degree. It brought me heartwarming pride to see “my students” walk across the stage at graduation.

 Company Mission: Our mission is to maximize the value of our brands by promoting, marketing and licensing the brands through various distribution channels, including to dispensaries, wholesalers and distributors in the United States and internationally. CannAmerica Brands owns a portfolio of cannabis brands in the cannabis space currently in the states of Colorado, Nevada, Maryland, Oklahoma, and Massachusetts. Our core strategy is to enhance and monetize the global reach of our existing brands, and to pursue additional strategic acquisitions to grow the scope of and diversify our portfolio of brands.

 Company’s most successful achievement:

Creating our Intellectual Property company to protect what our founders spent years creating was an early industry achievement that put our Company ahead of other cannabis companies. CannAmerica achieved a major milestone when we began trading on the Canadian Securities Exchange (“CSE”) under the symbol “CANA” on October 15th of 2018, when Canada announced federal legalization of cannabis. In December, CannAmerica also commenced trading on the OTCQB® Venture Market in the United States under the symbol “CNNXF.”

 Has the company raised any capital (yes or no): if so, how much?:

Yes, CannAmerica raised approximately $7 million via non-brokered private placements.

 Any plans on raising capital in the future?

At this time, the Company is focused on operational success.  Once current plans for expansion and new lines of products are in place, the Board will review the market temperature to determine the course of action for financing additional projects.

 

Most important company 5-year goal:

Expansion into more legal cannabis marketplaces, national hemp finished product sales, and additional lines of business to increase the revenues for the company and to create as many opportunities for brand expansion and acquisition.

Diana Anglin Bio:

Diana Anglin is a leader in cannabis regulatory compliance in the state of Colorado. She has assisted many companies to obtain licensing and prepare for opening of business. She served as Chair for Compliance Council of the Colorado Cannabis Chamber of Commerce and held the position of Director of Compliance for two licensed marijuana companies. Currently she is the Chief Operating Officer for CannAmerica Brands Corp. Diana has been working in regulatory compliance for over 20 years. Her career started with helping young people navigate the college regulatory processes of Student Financial Aid, Graduation Services, and Enrollment Management.

Diana enjoys using her unusual sense of humor to raise money for local charities as well as using her free time to enjoy the many activities Colorado has to offer.

 

 


StaffStaffNovember 18, 2019
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9min2590

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

On The Site

MedMen

MedMen Enterprises Inc. (MMEN.CN) (MMNFF) claimed to be the unicorn of marijuana companies when the California-based business went public in May of 2018. Now just 18 months later, it has a market cap of $170 million, according to Yahoo Finance, and is being forced to dramatically curtail its plans.

On Friday, the company said it was taking several steps to achieve profitability including laying off of 190 employees or 20% of its workforce, cutting back on store openings and selling assets.

In addition to the employee layoffs, which the company said would save $10 million, MedMen is also selling its interest in Treehouse REIT for net proceeds of $14 million. So far, its gotten $7 million and has agreements to sell the remainder. 

Sunniva

Sunniva Inc. (OTC: SNNVF) stock plunged over 40%  to lately trade at 45 cents after the company announced that President Kevin Wilkerson would resign. This comes just one week after the company’s Chief Financial Officer also resigned.

Wilkerson also resigned from his position as President and Chief Executive Officer of Sun CA Holdings effective December 2. The company said the resignation was for personal reasons and a replacement has not been named. It follows last week’s announcement that CFO Dave Lyle was resigning, also for personal reasons, and David Weinmann has been appointed interim CFO. In addition to that, Michael Barker who was on the board of directors also resigned.

Acreage Holdings

Acreage Holdings, Inc. (“Acreage”) (CSE: ACRG.U) (OTC: ACRGF) is buying New Jersey’s  Compassionate Care Foundation, Inc. which is a vertically integrated cannabis nonprofit corporation. The deal is subject to state approval and the amount of the deal was not disclosed. However, the state of New Jersey did state that Compassionate Care reported $4.9 million in revenue in 2018, badly trailing Curaleaf’s $19 million in revenue for 2018.

The Biennial report also stated that when looking at total inventory, neither Greenleaf Compassion Center nor Compassionate Care Foundation eclipsed 200 lbs of total product from June to December of 2018. “During the study period, Compassionate Care Foundation had a range of between 12 and 102 lbs of product onhand and an average of 41 lbs, while Greenleaf had a range between 5 and 12 lbs of product on hand and an average of 8 lbs on-hand.

In Other News

Ayr

Ayr Strategies Inc. (CSE: AYR.A)(OTCQX: AYRSF) is reporting financial results for the three and nine months ended September 30, 2019. Total revenue increased 19% to $32.1 million compared to $26.9 million. Loss from operations was $10.7 million compared to $20.1 million. Adjusted EBITDA increased 16% to $8.7 million compared to $7.5 million.

“We are extremely pleased with how well our business is executing after just four months of combined operations,” said Jonathan Sandelman, CEO of Ayr. “In that brief time, we have made considerable progress on key initiatives in both the Western and Eastern U.S. – organic growth has exceeded our expectations, our retail stores are among the most productive in the industry, and our wholesale business has become a substantial contributor to the top and bottom line.

“In Nevada, we continued to generate margin improvements from vertical integration of the four companies we acquired. In fact, our dispensaries are now sourcing even more products internally than they were just a few months ago, and our cultivation expansion in Nevada remains on track for completion in the first half of 2020.  In Massachusetts, our wholesale business continued to gain momentum during the quarter as our monthly revenue has nearly tripled since closing our qualifying transaction in May.

Cannabis Sativa

Cannabis Sativa, Inc. (OTCQB:CBDS) reported earnings for the quarter ending September 30, 2019 year-to-date results and certain comparisons to the same period in 2018.

For the nine-month period ended September 30, 2019, revenue increased 72%, to $705k, from a year ago while gross margin improved 71% from the comparable 2018 period ($413k vs. $241k), at 59% of revenue. PrestoDoctor’s patient growth and geographic expansion were the primary drivers for the improved revenue and margins. Operating loss for the nine months ended 9.30.19 was $1.7 million, an improvement of $1.4 million (42%) from the same period in the prior year. The Company continues to see benefits of its aggressive cost control program, implemented two years ago. Operating costs (SG&A) are down 36% from YTD Q3 2018, and down 66% from YTD Q3 2017, primarily due to lower professional and consulting fees.

Freedom Leaf

Freedom Leaf, Inc.  (OTCQB: FRLF), a first in class hemp consumer packaged goods company that recently acquired Green Lotus™ to build its position as a leading provider of natural cannabinoid-rich hemp products, announced today that it closed a $5 million convertible note financing led by an affiliate of Merida Capital. David Goldburg, Chairman of the Board, and Dave Vautrin, Independent Director, invested $125,000 and $67,000, respectively, in the convertible note financing. Proceeds from the financing will primarily support the Company’s production, marketing, and sales efforts as it continues to build its position as a leading CBD and hemp company servicing the North American and Mexican markets.

One World Pharma

One World Pharma Inc. (OTC: OWPC), “OWP,” a fully licensed pure-play cannabis and hemp ingredient producer in Colombia, is pleased to announce that its common stock has been uplisted to the OTCQB platform, effective immediately.

Acceptance to the OTCQB will increase liquidity in the Company’s common stock and provide shareholders with greater access to the majority of broker-dealers who trade stocks on the OTCQB. Historically, ascension to the OTCQB has often been met with enhanced liquidity and visibility. The OTCQB is a venture market designed for early-stage and developing U.S. and international companies.

“We are most pleased to have reached this milestone and to have been accepted to trade on the OTCQB platform,” said Craig Ellins, Chief Executive Officer, One World Pharma. “Uplisting to the OTCQB allows us to have our corporate successes potentially recognized by a far greater constituency of brokers, analysts and individual investors and ultimately seek a listing on a major exchange.”


StaffStaffNovember 16, 2019
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7min3981

The USA has a new boom for hemp farmers. Though it is forbidden to consume cannabis at the federal level, 33 states legalized its usage for medical purposes and 11 states don’t mind about you smoking hemp for your personal advantage. 

Let’s distinguish the difference between hemp and marijuana. There are over 50 thousands of goods that have hemp as one of the ingredients. They include clothes, cosmetics, beverages, food, construction supplies, etc. These two types of crops are cultivated from one sort of plant, Cannabis sativa L. However, hemp has only 0.3% of THC (Tetrahydrocannabinol), the addictive component of marijuana. This means, that hemp can’t make you high and doesn’t have a similar effect as smoking a joint of marijuana. 

According to Barclays Bank and EssayShark, the size of the legal cannabis market reached $28 billion in the past year. If the USA legalizes the full cannabis market, it will enhance to $41 billion by 2028.  In case the medical usage is legalized in Europe and at the federal level, the market will grow to $55 billion. It’s logical that such perspectives attract lots of investors. This fact led to the appearance of many hemp-related startups in 2018. At the beginning of 2019, their total value was worth $1.2 billion.

It’s not surprising that these tendencies and potential increased the number of new hemp farmers. There are limits to growing cannabis, but they are quite ridiculous. For example, you can’t grow more than three sorts of the plant. A person can freely grow up to 6 bushes of hemp. People who managed to “catch the wave” of planting cannabis have now grown to the earning millions of dollars. The average price for their final product is seven thousand dollars per one kilo. Farmers are sure that it’s better to work legally and the prohibitions only support the drug dealers and the development of the black market.

The product that had been illegally brought to the USA turned into legal goods. Authorities imposed taxes and customs on them. Workers involved in the hemp industry obtained official employment, government establishments started checking the quality of the product. As a result, the price for legal cannabis increased by 5-6 times in comparison to the illegal options. Many people with low budgets prefer purchasing under-the-table weed instead of paying more. Thus, the new hemp farmers who want to have a stable income must sell their product almost without any retail margin to compete with the existing offers until they have a stable audience of customers. 

Due to the high demand and the global madness over an opportunity to earn money in this industry, many people attempt starting their own production of hemp. Those people who have never had experience with anything related to agriculture (it is agriculture by any measure) have a strong belief that it’s a piece of cake. New hemp farmers usually make the same mistakes. They don’t compile a harvest plan and take into account the weather conditions. As a result, they might lose their yield or have a smaller amount of crop than expected.

Another reason that influences the new businessmen is their confidence in finding the customers or contractors for selling their products. Experienced and considered farmers search for the contractors prior to planting the crop. Therefore, they can estimate the approximate number and the workforce required to cultivate and process the product. The majority of new farmers rely on independent contractors who have to cultivate, harvest, and dry their crops. Unfortunately, many such contractors make only verbal promises and don’t satisfy their customers’ needs. As a result, farmers fail to yield and process hemp to have a final product for sale. 

It’s difficult for amateur farmers to enter the market and beat the competition. The huge processing and harvesting companies in the industry leave almost no chances for small businesses. Thus, even if you consider all the negative factors like unfortunate weather, low prices, lack of labor, and create a perfect harvesting plan, there is still a high possibility that you might push your income into the red. The industry is facing the oversupply of hemp which leads to the decreased rates. Many farmers hurry to fire-sale their crops to anyone not to lose all the money and efforts put into the cultivation, harvesting, and processing. 

The hemp market is definitely flourishing in the USA. Unfortunately, the equipment, workforce, knowledge, skills, and time required to grow cannabis might be too much for the newbie farmers. They tend to underestimate the efforts and financial risks for entering this sphere. 

Guest post by Kelly Pethick


StaffStaffNovember 15, 2019
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9min3590

The Supreme Cannabis Co.

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported a year-over-year increase in net revenue, growing 122% from $5.1 million in Q1 2019 to $11.4 million in Q1 2020. The net revenue achieved during Q1 2020 was comprised of $10.5 million from 7ACRES and $0.9 million from Blissco.

Sequentially, net revenue decreased by 40% from $19 million in Q4 2019. The quarter-over-quarter decrease in net revenue is predominately attributable to the combination of a rapid deterioration of pricing and demand in the wholesale market and the previously announced 7ACRES mechanical failure in grow rooms 1, 2 and 3, which was an isolated one-time event with all three grow rooms recommissioned and replanted in September 2019.

In Q1 2020, in response to wholesale market conditions, the company prioritized its annual performance objectives by product planning for future quarters and holding back product from wholesale channels. In the second half of fiscal 2020, the company expects this inventory of high-quality products to serve as inputs for flower convenience products and select cannabis derivative products, including pre-rolled joints, CBD oils and vaporizer oils.

The company continues to reduce its reliance on the wholesale market as it increases packaging capacity at its 7ACRES facility and transitions 7ACRES to solely recreational sales. In Q1 2020, wholesale sales accounted for 57% of cannabis flower sales, as compared to 65% in Q4 2019 and 100% in Q1 2019.  As Supreme Cannabis transitions into a CPG company, sales from recreational markets continue to increase. In Q1 2020, the company saw strong demand for its consumer-facing brands, with net revenue from recreational sales increasing 68% quarter-over-quarter.

Village Farms International, Inc.

Village Farms International, Inc.  (TSX: VFF) (NASDAQ: VFF) reported net sales (before Village Farms’ 50% share), which consisted entirely of dried cannabis sold predominantly to other licensed producers, were C$24.0 million (US$18.1 million).  Sales for the third quarter did not include C$7.2 million that was invoiced to Emerald Health Therapeutics. The company delivered net loss (before Village Farms’ 50% share) of (C$2.4 million) ((US$1.8 million)) which included the non-cash impact of a net charge of (C$12.6 million) due to a change in value of the biological asset.

Michael DeGiglio, Chief Executive Officer, Village Farms said,  “Pure Sunfarms’ achieved its fourth consecutive quarter of positive EBITDA, with an industry leading all-in cost of production of C$0.63, gross margin of 69% and EBITDA margin of 56%.  In the 12 months since adult-use cannabis was legalized in Canada in October 2018, Pure Sunfarms has already generated C$47 million in EBITDA, an especially impressive number given that its operations were ramping up throughout most of that period.”

“In our U.S. outdoor hemp program, we recently completed harvest of our 2019 crop, highlighted by yields that were well above our projections.  We remain on track to begin generating profitable hemp sales as early as the fourth quarter of this year.  Importantly, our first growing season has provided significant learnings that will be invaluable going forward.  In our greenhouse hemp program, we continue to work with Texas Department of Agriculture on the implementation of its hemp regulatory framework subject to the recently published US Department of Agriculture rules and are optimistic that licensing could commence in the first quarter of 2020.  As we did in Canada with Pure Sunfarms, we are building a rock-solid foundation of exceptional growing operations from which to aggressively pursue our objective to launch our own white-labeled and branded CBD products in 2020.”

Jushi Holdings

Jushi Holdings Inc. (NEO: JUSH.B) (OTCQX: JUSHF) reported its financial results for the third quarter ended September 30, 2019. The company delivered revenue for the third quarter of 2019 increased 2871% to $3.6 million, compared to $0.1 million in the third quarter of 2018 due to revenue from operations. Net income for the third quarter of 2019 was $4.2 million, or $0.04 per diluted share, compared to a net loss of $2.3 million, or $0.05 per share, in the third quarter of 2018. During the quarter, the company reported a gain on a financial asset of approximately $9.2 million and a one-time other income of approximately $5 million.

Gross profit for the third quarter of 2019 was $1.5 million, resulting in gross margin of 43%, compared to $0.1 million for the third quarter of 2018. The increase over the prior year was primarily due to the increase in retail sales.

“During the third quarter of 2019, we generated revenue of $3.6 million, an increase sequentially from $0.2 million, due primarily to commencement of retail operations in Pennsylvania and New York, and cultivation and manufacturing in Nevada. Additionally, we reported a net gain of $13.2 million in other income primarily from sale of our minority stake in Gloucester Street Capital resulting in net income of $4.2 million for the quarter,” stated Jim Cacioppo, CEO and Chairman of Jushi.



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