Staff, Author at Green Market Report - Page 22 of 119

StaffStaffJanuary 26, 2021
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GrowGeneration Corp . (NASDAQ: GRWG ) is at it again. The hydroponic chain has acquired Indoor Garden & Lighting, a two-store chain of hydroponic equipment and indoor gardening supply stores serving the Seattle and Tacoma, Washington area. GrowGen said it will be consolidating its current Seattle operation into the acquired stores. This acquisition brings the total number of GrowGen hydroponic garden centers nationwide to 40 stores. The company stock was jumping over 2% in early trading to lately sell at $49.66, closing in on its 52-week high of $53.

“We’re thrilled to kickstart 2021 with our acquisition of Indoor Garden & Lighting, which boasts a strong commercial customer base and a talented team of grow professionals,” said Darren Lampert, GrowGeneration’s CEO. “This deal expands our footprint in the Pacific Northwest and puts us in close proximity to Tacoma’s large commercial operators. With the addition of Indoor Garden & Lighting, we expect Washington’s thriving adult-use market to generate annual revenues of $10 million for GrowGen.”

Founded in 1995, by Mike Long, Indoor Garden & Lighting has operations in Tacoma and Mountlake Terrace.  GrowGeneration also plans to operate out of Indoor Garden & Lighting’s 10,000-square-foot warehouse in Tacoma. As part of the deal, Long and his team of cultivation experts will join GrowGeneration.

The Indoor Garden & Lighting acquisition is the Company’s first acquisition this year and follows yet another quarter of record earnings. Earlier this month, GrowGen pre-announced fourth-quarter revenues of $61.5 million, bringing full-year 2020 revenue to $192 million, up 140% from 2019. Same-store sales increased 63% for full-year 2020, compared to the previous year. The company also raised its 2021 revenue guidance to $335 million – $350 million and raised its 2021 adjusted EBITDA guidance to $38 million – $40 million. GrowGen plans to have 55 garden center locations by the end of 2021.


StaffStaffJanuary 25, 2021
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7min4170

It’s time for your Daily Hit of cannabis financial news for January 25, 2021.

On the Site

RLX Tech

An e-cigarette brand in China called RLX Technology raised $1.4 billion by offering 116.5 million ADSs at $12, above the range of $8 to $10. At the pricing, the company commanded a market value of $18.6 billion. Shares spiked and were lately selling at over $25 with the symbol RELX and now has a $49 billion valuation.

Valens

The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) entered into an agreement with ATB Capital Markets Inc. to purchase 17,080,000 units at a price of C$2.05 per Unit for gross proceeds of C$35,014,000. Then following that announcement, Valens said it was buying LYF Food Technologies Inc. in a cash and share transaction for C$24.9 million, plus up to an additional C$17.5 million in consideration upon the business achieving certain earn-out EBITDA milestones. Valens said in a statement that the LYF Acquisition is expected to be accretive in 2021, and if all of the Milestones are met, the transaction represents an approximate ~4.2x multiple on the last milestone achieved. LYF is an edibles manufacturer based in Kelowna, British Columbia with expertise in novel product creation, white label manufacturing, and infusion technologies.

Harvest Health

Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) is getting a lift in its stock after the company announced the closing of a sale-leaseback transaction with Innovative Industrial Properties, Inc. (NYSE: IIPR) that will bring the company roughly $35 million. Harvest sold an industrial property totaling approximately 292,000 square feet for $23.8 million. The company also noted on Friday that it began adult-use sales in Arizona.  The stock rose by over 8% on Friday to lately sell at $3.40.

Along with the sale of the property, Harvest entered into a triple net lease with IIP.  Harvest said it plans to continue to operate the property as a licensed cultivation and processing facility and expects to recover up to approximately $10.8 million in tenant improvements from IIP.

PSYK

This week the first psychedelic stock ETF (exchange-traded fund) will begin trading on the Canadian NEO exchange under the ticker PSYK on January 27. The base currency will be Canadian dollars. The ETF will be managed by Canadian financial services company Horizons ETF Management and it will be focused on the emerging psychedelics opportunity led by life science and pharmaceutical companies. Horizons noted that a growing body of clinical research has demonstrated the potential use of psychedelic compounds, such as psilocybin and ketamine, as treatment for mental illness, depression, addiction, post-traumatic stress disorder (PTSD), and other medical conditions. As a result, there is a growing number of public companies listed in North America that are focused on the development of therapeutic solutions using psychedelics.

SCC

The Sustainable Cannabis Coalition (SCC) has been created by a diverse group of cannabis cultivation, manufacturing, and technology experts. The SCC said it will work proactively with industry cultivation and manufacturing peers and vendors to promote proven sustainability best practices that can be implemented at scale across the cannabis market.

In Other News

 

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCPK: ITHUF) provided updates on: (i) a complaint filed by MPX New Jersey, LLC (“MPX NJ”); (ii) the Company’s previously announced recapitalization transaction (the “Recapitalization Transaction”); and (iii) a class action complaint filed against the Company’s wholly-owned subsidiary, iAnthus Empire Holdings, LLC (“IEH”) for alleged violations of the Telephone Consumer Protection Act (“TCPA”).

The Company is in receipt of a complaint filed in the Superior Court of New Jersey by MPX NJ against iAnthus New Jersey , LLC and iAnthus Capital Management, LLC. MPX NJ entered into a Financing, Leasing, Licensing and Services Agreement with iAnthus NJ in August 2019. MPX NJ seeks a declaratory judgment from the court declaring: (i) MPX NJ is solely authorized to represent its interests to state and local officials and other parties and that Ms. Stavola is principally responsible for the management and operations of MPX NJ; and (ii) that the Services Agreement is currently ineffective and unenforceable.  iAnthus disputes the allegations of the Complaint and disputes that it ever engaged in the conduct that was the subject of the temporary restraints in the first place.


StaffStaffJanuary 25, 2021
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8min7101

The Sustainable Cannabis Coalition (SCC) has been created by a diverse group of cannabis cultivation, manufacturing, and technology experts. The SCC said it will work proactively with industry cultivation and manufacturing peers and vendors to promote proven sustainability best practices that can be implemented at scale across the cannabis market.

“With investors across the industry incorporating Environmental, Social and Governance (“ESG”) factors into the investment process, the creation of a coalition to address sustainability in this space is critical,” said Peter Dougherty, CEO of Gro IQ and SCC Co-Founder. “The SCC is uniquely poised to impact the industry as it continues to rapidly evolve. As leaders in this space, it is our responsibility to provide data driven sustainability guidance to the industry while protecting both consumers and the environment.”

The SCC founders include CohnReznickAnderson Porter DesignValiantWholly H2OCloud FarmingArgus ControlsConvironGro iQTrulieveByers Scientific365 CannabisGMP CollectiveOmega Equipment and SupplySimplifyaPathogenDxGrow Generation (NASDAQ: GRWG) and Outlaw Technology. These industry leaders are experts in data-driven business strategy, facility design, facility construction, water use, pathogen detection, energy consumption, waste disposal, economic and social impact, vertical farming, ERP and seed to sale systems, lighting, air emissions, extraction, packaging and data-driven monitoring and optimization of environmental control systems.

Amy Larsen, Vice President of Marketing & PR at Simplifya wrote on the site blog, “The relationship between cannabis compliance and cannabis sustainability is a double-edged sword. In the interest of protecting consumers from this “dangerous” plant, regulatory bodies have turned cultivating something that literally grows freely like a weed in the sun into an industry carving an incredible environmental impact. Because so few states allow legal outdoor grows, cultivators are weighed down by compliance mandates resulting in significant water usage and massive electricity consumption.

Regulations around single-use, child-proof packaging, combined with mandatory dispensary exit bags results in literal tons of packaging waste, much of which is non-recyclable. In some cases, requirements around cannabis waste disposal demand that extractors make their cannabis waste and extraction byproducts “unusable” by mixing them with products like cat litter or bleach so they are impossible to consume…which ultimately results in doubling the amount of non-compostable waste headed to landfills.”

The SCC said it plans to release informative blog posts and podcast interviews bi-weekly addressing each vertical segment of the cannabis cultivation and manufacturing supply chain within the industry along with best practices for sustainability.

 


StaffStaffJanuary 25, 2021
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6min3900

An e-cigarette brand in China called RLX Technology raised $1.4 billion by offering 116.5 million ADSs at $12, above the range of $8 to $10. At the pricing, the company commanded a market value of $18.6 billion. Shares spiked and were lately selling at over $25 with the symbol RELX and now has a $49 billion valuation.

Renaissance Capital noted that the company “boasts a 62.6% market share in China for closed-system e-vapor products in terms of retail sales. The company has partnered with 110 authorized distributors to supply its products to over 5,000 RELX Branded Partner Stores, and over 100,000 other retail outlets nationwide, covering over 250 cities in China. Revenue nearly doubled in the nine months ended September 30, 2020, to $324 million, with net income of $16 million.”

“Our mission is to make RELX a trusted brand for adult smokers through state-of-the-art products, industry-leading technologies and scientific advances in collaboration with talented and committed people around the globe. We are the No. 1 branded e-vapor company in China, capturing 48.0% and 62.6% of the market share of closed-system e-vapor products in terms of retail sales value in 2019 and the nine months ended September 30, 2020, respectively. We have launched five series of rechargeable closed-system e-vapor products, and we deeply engage in the key activities in the e-vapor industry, from scientific research, technology and product development, supply chain management, to offline distribution. We partner with 110 authorized distributors to supply our products to over 5,000 RELX Branded Partner Stores and over 100,000 other retail outlets nationwide, covering over 250 cities in China. China’s e-vapor market is expected to grow at a CAGR of 65.9% from 2019 to 2023. Our net revenues increased from RMB133 million in 2018 to RMB1,549 million ($228 million) in 2019, and RMB2,201 million ($324 million) in the first nine months of 2020.”

Despite the vape crisis of 2019 and then the Covid pandemic which specifically affected people’s lungs, vaping has continued to grow in popularity. Juul pods were marketed to teens with candy type flavors, which caused the government to begin regulating and banning such marketing. Still, the smoking method has remained popular due to its convenience. It also remains to be a popular form factor for cannabis consumers.

Here are the top 5 selling cannabis cartridges of 2020, according to LeafLink List:

    • Grease Monkey Cartridge from Platinum Vape (MI)

    • PLUGPlay Express 1g Cartridge from PLUGPlay (CA)

    • Skydoggie 1g Cartridge from Raw Garden (CA)

    • 1000mg Lemon Faderade Cartridge (Energy) from Timeless Vapes (AZ)

    • 1g High Potency Cartridge from Batch (CO)

 

Challenges Remain

Fortis Law Partners doesn’t think vaping is completely out of the woods just yet. The company recently said they expect to see more insurance companies use the fact that COVID-19 is a respiratory illness as a reason to add more exclusions to policies, particularly for businesses that specialize in vaping and/or other smokable cannabis products. “In addition, a new Colorado rule goes into effect on Jan. 1, 2021, requiring cannabis manufacturers to test the vapor emissions from their products—i.e., what consumers are actually inhaling—in addition to the oil itself.”

 


StaffStaffJanuary 22, 2021
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5min7001

Editors Note: This is a guest post. 

From the last couple of years, the demand for cannabis products has been bombed. Scientists have proved the amazing benefits of this powerful plant. 

CBD acts as a non-psychoactive way to treat various mental issues like anxiety. Many people use CBD products regularly but are not seeing any effect of cannabis for improving their anxiety. Remember, the reason is not cannabis but the way you are using it. There could be two common mistakes like too much CBD consumption, buying the wrong product. These blunders may be becoming a big hurdle from getting effective results. Let’s know these mistakes to see the real benefit of CBD. 

  • Going With Cheap Quality Products

One of the common mistakes that many people make is not choosing the right product.

Users purchase cheap quality products to save some bucks or sometimes are not aware of less reputed brands in the market. Therefore, to get the best quality, you need to choose high-quality products? But how to choose the right quality products is a matter of concern for new CBD users. Therefore, keep in mind certain factors;

  • Check out whether the product is made from a local source of organic hemp or not. It will save you from buying pesticide-contaminated products.
  • Choose a product that is undergone with a CO2 extraction method rather than petroleum processing.
  • Check whether the CBD products have been lab-tested before selling. It will ensure that you are choosing the right product from a reputable vendor. 

Sometimes it could be hard to get a quality product that can meet the guidelines mentioned above. But once you choose a product, it will help minimize anxiety and other symptoms. 

  • Not Using Right Dose

Suppose you get tired of using CBD to minimize anxiety symptoms, still not getting effective results. Keep in mind to check the CBD product’s dose. Consuming too much CBD, or low dosage have their effects on the body. Therefore, you may need to do experiments to figure out which is the best dose for your body. Here we have some general guidelines;

  • Always start with low CBD dose consumption. If you are not sure what will be the right dose, choose CBD capsules, gummies, or other similar products with a fixed-dose. 
  • Once you become comfortable with a fixed CBD dose, you can increase it based on the effect on your body. For example, earlier, you were consuming one capsule, now you can go with two. Do not forget to analyze the changing effect of dose on the body.
  • You can also try the micro-dosing method. This means, here you can take a smaller dose of CBD products after a fixed time. It will help to maintain general health troubles and reduce anxiety symptoms. 

It is important to pay attention to certain factors such as digestive system, age, gender, and past CBD experience. 

CBD products are a great remedy to deal with anxiety issues and symptoms. But make sure to choose the correct quality product and check the CBD dose. You will soon start getting positive results.   


StaffStaffJanuary 21, 2021
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5min9370

No sooner had Revive Therapeutics Ltd. (OTC: RVVTF) announce it had raised $10, then it stopped trading to say the deal was upsized to $20 million. Revive is a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders. The company entered into an agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. to pay $0.50 per Equity Unit. Under the amended terms, the Underwriters have agreed to purchase, on a bought deal basis, 40 million Equity Units for gross proceeds to the Company of $20 million. The stock was lately selling at $0.47. The closing of the offering is expected to occur on or about the week of February 8, 2021. 

The company said that the net proceeds would be used for Phase 3 ‎clinical costs for Bucillamine for COVID-19, Phase 1 clinical ‎costs for Psilocybin for methamphetamine use disorder ‎study, and other Psychedelic formulation development work as well as working capital and general corporate purposes. ‎

Revive has also granted the Underwriters an over-allotment option at any time until 30 days following the Closing, to purchase up to that number of additional Equity Units, Common Shares or Warrants, or any combination thereof, as is equal to 15% of the aggregate number of Equity Units sold in the Offering to cover over-allotments, if any.

The company announced last week that it had entered into a sponsored research agreement and an exclusive option to license agreement with North Carolina State University to develop a novel biosynthetic version of psilocybin based on a natural biosynthesis enzymatic platform developed by Dr. Gavin Williams, Professor and Researcher at NC State. The biosynthetic platform developed by Dr. Gavin Williams  will provide a potentially simple and efficient method for rapidly producing natural products, such as psilocybin, using an engineered enzymatic pathway in E. coli.

Revive seeks to develop and commercialize its own pharmaceutical-grade psilocybin with this biosynthesis technology at scale to support the Company’s current psilocybin-based product pipeline that includes an oral thin film product currently being developed in collaboration with the University of Wisconsin-Madison and the intellectual property and research with psilocybin being developed by PharmaTher Inc. (CSE: PHRM, OTCQB: PHRRF). The company also recently acquired Psilocin Pharma Corp. and is advancing the development of Psilocybin-based therapeutics in various diseases and disorders. Revive’s cannabinoid pharmaceutical portfolio focuses on rare inflammatory diseases and the Company was granted FDA orphan drug status designation for the use of Cannabidiol (CBD) to treat autoimmune hepatitis (liver disease) and to treat ischemia and reperfusion injury from organ transplantation

Terms

Each Equity Unit will consist of one (1) common share of the Company (a “Common Share“) and one (1) Common Share purchase warrant (a “Warrant“). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price of $0.70 (the “Exercise Price“) at any time up to thirty-six (36) months following Closing (as defined below). The expiry of the Warrants may be accelerated by the Company at any time prior to the expiry date of the Warrants if the volume-weighted average price of the Common Shares on the Canadian Securities Exchange (the “Exchange“) is greater than $1.10 for any ten (10) consecutive trading days, at which time the Company may, within ten (10) business days, accelerate the expiry date of the Warrants by issuing a press release announcing the reduced warrant term whereupon the Warrants will expire on the 30th calendar day after the date of such press release.

 


StaffStaffJanuary 20, 2021
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5min4820

It’s time for your Daily Hit of financial news for January 20, 2021.

On the Site

Valens

The Valens Company Inc.  (OTCQX: VLNCF)  provided an update on its corporate initiatives following the close of the market on Tuesday. The Valens Company said it made the strategic decision to liquidate the majority of its cannabis oil inventories at market-clearing prices in the fourth quarter of 2020. The stock was falling over 9% on the news to lately sell at $1.92.

This company said that the decision will lead to a related one-time financial statement impact in the fourth quarter of 2020 between $9.0 million and $10.0 million, including a $2.9 million to $3.2 million loss from the sale of bulk cannabis oil, an inventory write-down of $4.7 million to $4.9 million, and a provision on previously entered biomass commitments of $1.4 million to $1.9 million.

Harborside

California-based cannabis company Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) upsized its previously announced brokered private placement of units of the company at a price of C$2.55 per SVS Unit for gross proceeds of approximately C$27 million, representing an increase of C$7 million, due to excess demand.  The stock was lately selling near $2.22, which isn’t far from the company’s 52-week high of $2.40.

ATB Capital Markets and Beacon Securities Limited are co-lead agents to the offering. The company said it expects to use the net proceeds from the offering for general corporate and working capital purposes. The company said in a statement that it has granted the Agents an option to sell up to an additional 15% of the Units in the Offering, exercisable in whole or in part at any time prior to the closing of the Offering. As previously announced, Entourage Effect Capital, LLC, one of the largest shareholders of Harborside, is participating in the offering with approximately C$9.0 million in commitments.

In Other News

CannTrust

CannTrust Holdings Inc. announced today that it has entered into a Restructuring Support Agreement with plaintiffs who have commenced litigation in Canada and the United States asserting claims against CannTrust and others on behalf of a global class of CannTrust shareholders and their legal counsel. The RSA provides a comprehensive framework for settling the Securities Claims under a Court-approved plan of compromise, arrangement and reorganization pursuant to the Companies’ Creditors Arrangement Act ( Canada ).

“Today’s announcement represents a significant milestone towards the resolution of substantially all of the civil litigation claims that were filed against CannTrust following the Company’s non-compliance with certain Health Canada regulations,” said Greg Guyatt , Chief Executive Officer at CannTrust. “Although much work remains to conclude the matters contemplated by the RSA, I am pleased that, in addition to relaunching our medical and recreational businesses, we are also making further tangible progress to exit from the CCAA and put CannTrust in a position to be a successful player in the cannabis industry.”

Fyllo

Fyllo, the leader in digital marketing and compliance solutions for highly regulated industries, announced today it has acquired DataOwl, the leader in cannabis retail point-of-sale marketing and loyalty. DataOwl’s marketing and loyalty solutions power more than 320 cannabis retailers across 25 states as well as Puerto Rico and Jamaica, serving over 3M network members. DataOwl’s AI-powered retail solutions will be integrated into Fyllo’s Compliance Cloud, creating the industry’s first end-to-end, brand-safe marketing platform, allowing cannabis brands to target consumers at every level of the sales funnel. “Fyllo enables ambitious companies, and marketers in highly regulated industries, to scale with speed. Due to the complex legal space, these companies have had to choose between compliance and the ability to grow. Together, Fyllo and DataOwl are able to deliver a first of its kind, end-to-end cannabis marketing and data solutions, answering a significant unmet need in the market,” said Chad Bronstein, CEO and founder of Fyllo.


StaffStaffJanuary 20, 2021
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Clever Leaves 

A multi-national company with operations and investments in Canada, Colombia, Germany, Portugal, and the United States. The company just closed a SPAC deal to become publicly traded on NASDAQ this month using the symbol CLVR.

Spokesperson: Kyle Detwiler, CEO

Thoughts: 

  • The recent passing of the MORE Act is a giant step towards advancing the understanding of the medical benefits of cannabis and reducing barriers on medical cannabis research. In addition to the expected tax revenue and new jobs that legal cannabis could bring, we’ve only scratched the surface of the medical benefits of the plant, and the 2020 Green Wave and the House’s MORE Act is a sign of medical progress. At Clever Leaves, we hope to have an opportunity to be a leader in this field and support the development of high-quality, consistent medical cannabis treatments.
  • With a Democratic President in power, the cannabis industry will likely continue to grow internationally. There were many international movements in cannabis reform, including Israel announcing a plan for a recreational program in less than a year, and the UN voting to reclassify cannabis as a less dangerous narcotic drug. Clever Leaves has operations and export capabilities in 14 countries and 5 continents and we are poised to take advantage as new markets open up internationally.
  • At Clever Leaves we operate in strict compliance with all federal laws and so we are looking forward to providing Clever Leaves’ high-quality, pharmaceutical grade cannabis to patients and customers in the U.S., when the legal framework allows.

NewLake Capital

A cannabis real-estate investment vehicle that has tenants across the supply chain in the U.S. including cultivation, manufacturing and retail. Company owns 20 properties across 8 states that are operated by experienced, well-capitalized medical and adult-use operators like Columbia Care, Trulieve, Curaleaf and PharmaCann.

Spokesperson: Anthony Coniglio, CEO

  • The Democrats gained control of the majority with Vice President-elect Kamala Harris’ tie-breaking vote forward for the cannabis industry and put federal legalization one step closer. While this is an exciting time for the industry, the reality of legislative priorities, narrow majorities in the House and Senate, as well as a lack of scientific research on cannabis will cause federal legalization to take longer than the industry would like and some prognosticators are predicting.
  • Cannabis is a capital-intensive business and those operators with access to capital will be best positioned to thrive over the next few years.  That capital access will allow companies to further scale, which will enhance profits and cash flow.

SLANG Worldwide Inc.

A leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands across the United States.

Spokesperson: Chris Driessen, CEO

  • We will see swift action by Democrats to introduce meaningful cannabis policy reform. This could be Safe Act or rescheduling of cannabis. I don’t think full federal legalization will come anytime soon. Any or all of these measures would be welcome news, especially the Safe Act, as it would likely eliminate 280e. This tax provision is extremely punitive to cannabis businesses as it only allows minimal deductions for things like COGS. This would be a big relief, especially for public cannabis companies.
  • Slang would welcome any legislation that allows cannabis businesses to operate like their mainstream counterparts. We thrive in open, competitive markets, so the ability to operate in a more efficient way would be positive news. Whether that be fair taxation, interstate commerce or outright legalization, any of which would be a positive catalyst for our business.
  • Publicly traded cannabis companies stand to benefit the most with cannabis policy reform. Retail investors can find liquidity in the short term with the expected positive momentum that would be expected if politicians enact meaningful reform. Institutional investors would also benefit as many of these firms are hesitant to invest in cannabis in a meaningful way until it’s clear that federal policy is changing.
  • CPG focused cannabis companies, like Slang, stand to benefit the most with federal legalization. This is due to our market leading brands and their respective performance across 13 states, Canada and Jamaica. It’s our belief that large MSO’s with capital intensive requirements to grow their businesses will not be as desirable as companies that are able to command large market share positions across multiple markets with far less capital requirements.

Fyllo 

The Fyllo Compliance Cloud is a suite of enterprise-grade software and services powered by RegsTechnology, the largest database of cannabis laws and regulations at the federal, state and local level. We deliver advanced data, media and compliance solutions that are built for the complexities of highly regulated industries. Ambitious marketers and legal professionals choose Fyllo as their partner to go bigger and grow faster with trust and confidence in compliance.

Spokesperson:  Jeff Ragovin, Chief Commercial Officer.

  • Biden will face an unprecedented array of challenges, but federal legalization will open up many opportunities for the U.S. and for cannabis business:
    • Job creation as well as generate additional tax revenues for the many states in need
    • If cannabis companies are able to operate similarly to other legal CPG companies we will see a wave of great product creation that will also force brands to focus greatly on sales and make every effort to be more efficient, preserving margins while aggressively seeking out new customer bases.
    • Better quality control systems to ensure product quality and safety – as brands and governments are struggling to fight the illicit cannabis market and define quality standards, better regulation will provide overall product transparency as well as crackdown on non-compliant operations

The Valens Company 

A global leader in the end-to-end development and manufacturing of innovative, cannabinoid-based products. Valens is focused on being the partner of choice for leading Canadian and international cannabis brands by providing best-in-class, proprietary services including extraction, analytical testing, formulation and product development, and custom manufacturing. Valens is the largest third-party extraction company in Canada.

Spokesperson: Everett Knight, Executive Vice President, Corporate Development & Capital Markets

  • Cannabis 2.0 Products Will Dominate the Market in Canada with 3.0 Products Gaining Market Share: Similar to the US we will see 2.0 products take more market share and next generation products such as cannabis/CBD infused bath bombs, lip balms or CBD-infused honey will start to gain market share in 2021. We’ll also see an explosion of stores in Ontario and the beverage market in Quebec will gain massive steam compared to the rest of Canada because of the restrictions on other products.
  • The US Will See More Regulation: With many more legal markets in the States, the FDA will pass more regulations in 2021. The liability risks because of lack of regulations reminds regulators of the tobacco industry when it was unregulated in the past. Expect to see increased safety requirements and product recall processes instituted in the US market. US MSOs will have to transition to GMP and food safe regulations imposed on Canadian LPs.
  • International Market Expansion: A strong trend has emerged in the last couple of years across the world – medical legalization paves the way for adult-use – this will come through bigger and faster in 2021. Mexico and Israel look like they could be close to legalization. These markets have the potential to open up a landslide of opportunities for established companies in the US and Canada looking to capture global market share. Everyone has to remember the cannabis space is just getting started.

4Front Ventures  (CSE: FFNT) (OTCQX: FFNTF) is a national multi-state cannabis operator and retailer, with a market advantage in a mass-produced, low-cost quality branded cannabis products. 4Front manufactures and distributes a portfolio of over 25 cannabis brands including Marmas, Crystal Clear, Funky Monkey, Pebbles, and the Pure Ratios wellness collection, distributed through retail outlets and their chain of strategically positioned Mission branded dispensaries.

Expert: Kris Krane, President

  • Cannabis is poised to be an even better market in 2021 for a variety of reasons. New states like New Jersey and Arizona that legalized this November are poised to come online for adult use for the first time. Newer markets like Illinois, Michigan and Massachusetts are poised to expand and mature. A Biden administration is likely to be friendlier towards this industry than the current administration. But most importantly, the larger companies in the space are now focused on operations and execution, resulting in better overall performance, revenue, and EBITDA. I would expect that we will see more consolidation in 2021, as companies use some of their new profits to acquire businesses and market share.
  • 2021 will likely see a continued focus on operations and execution, separating out the major players from those that were always built on hype and smoke and mirrors.  We may see some name brands go under in 2021, but the cream will rise to the top and the likely eventual big winners in the market will start to emerge.

StaffStaffJanuary 20, 2021
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14min7110

Jushi Holdings Inc. (OTC: JUSHF) President, Board Member and Founder Erich Mauff Biden Inauguration

With the latest Gallup poll for legalization at 68%, big ballot wins for adult use in South Dakota, New Jersey, Montana and Arizona, and therapeutic cannabis deemed essential throughout the COVID-19 crisis, we are heralding in a new era in cannabis.

It’s the first time since 2008 that we’ve seen unified Democratic control of the White House and Congress. We think that bodes well for cannabis, particularly if you look at what Biden said during his campaign about cannabis decriminalization and Schumer’s comments on legalization. The Democrats have an incredible opportunity to stand on the right side of history, but between the COVID-19, economic, climate and racial equality crisis and Biden’s robust legislative agenda, we’re really not expecting to see much movement in his first 100 days in office.

While nothing is a surefire bet, we think descheduling, decriminalization, giving cannabis businesses access to banking and capital, tax reforms that allow cannabis businesses to deduct the ordinary businesses expenses, giving veterans, students and physically and economically challenged access to safer choices and expanding medical research are on the table.

Democrats have an opportunity to implement cohesive, meaningful federal oversight that would create billions of dollars in infrastructure investment, thousands of service level jobs, billions of dollars in tax revenues and more equitable opportunities, so it’s hard to see how that’s not a win-win for them politically and society as a whole.

We also expect the cannabis normalization trend to continue at the state and federal level, states like Virginia and Pennsylvania to make the move from medical to adult-use and even Mitch McConnell’s home state of Kentucky take steps to enact a medical marijuana program.

Glass House Group Chairman and Chief Executive Officer Kyle Kazan 

While there will be many competing priorities being placed in front of the newly sworn in Biden Administration with the focus on his first 100 days, I expect a reincarnation of the MORE Act will be amongst them.  Covid vaccine responses, a $2,000 check to Americans, rent relief, stimulus money to struggling states will be top of his list.  As Mr. Biden has never been a supporter of cannabis but has stated he would support decriminalization, the timing and ultimate bill which reaches his desk will depend on the push from Majority Leader Schumer and Speaker Pelosi and their respective caucuses.  In my view, some sort of legalization or decriminalization will happen in 2021 but not likely immediately given the pandemic.

 

Ganja Goddess CEO Zachary Pitts 

“Over the years leaders in both parties have been reticent to change cannabis policy despite the majority support for legalization among both Republican and Democrat voters, so legalization advocates and cannabis businesses were limited to very minor changes attached to omnibus budget deals. With new Senate leadership and a strong advocate in the Vice President, actual and significant new laws look like a very real possibility in the next year or two. I think updates to banking and tax law are likely to be seen very quickly, perhaps inside the next 6 months. This could lead to a second bull market phase of investment and new businesses in cannabis over the next few years. De-scheduling and federal legalization may take closer to a year or two, as the Democrats have more pressing priorities. Either way, whether you work in the industry or you understand the moral justification for why cannabis should be legalized, there’s a lot of eager anticipation and celebration!

 

Ganja Goddess Founder Tara Wells
I am thrilled that our new administration is taking a visionary and level headed approach to Cannabis. I foresee that nationwide legalization will be a reality in the next four years. I also predict that the insane pressure regarding keeping Cannabis as a Schedule 1 drug will be abandoned. This will ease the difficulty of banking in our industry, which will allow Cannabis to thrive like never before as an industry. The cannabis industry is in its infancy. With nationwide legalization, we can finally grow up and the world of cannabis will thrive in an unprecedented way. The potential tax base and job creation capacity is almost unimaginable, it is so big. I look forward to the embrace and support of this new, forward-thinking administration.

Tilt Holdings Inc. President Gary Santo  

A November Gallup poll shows that public support for legal cannabis is at an all-time high, highlighting the steady incline of cannabis’ acceptance among Americans.

Given the ongoing pandemic and economic challenges we are facing, we don’t expect to see any immediate movement in Congress on cannabis. However, we do believe Biden and the Democratic-controlled Senate, which ultimately hold the fate of legalization in their hands, will make progress on several fronts.

Both the MORE and SAFE Banking Acts have real potential to better the lives of everyday Americans, businesses and the overall economy. SAFE Banking would open up capital and encourage more accredited investors to enter the space. As a result, the trickle-down effect would have a major impact on emerging cannabis markets, M&A opportunities and the expansion of brands from the West to East Coast.

We’re hopeful the Senate takes action on these bills during Biden’s first two years in office. If they do, it will not only help to further normalize the sector, but also assist with our economic recovery by opening up capital and overturning injustices that have been on the books for far too long.

Regardless of what route the Senate takes, cannabis’ entrance into the mainstream is coming, and that’s clear in the polling and economic growth we are seeing coming out of the sector.

High Life Farms’ Vice President Jim Laporte

Given the repercussions of COVID and economic fallout we’re in, cannabis likely won’t be a top priority for the Biden Administration right out of the gate, but that’s likely to change over time. Biden and Democrat-Congress bring promise for a set of new laws that markets nationwide.


StaffStaffJanuary 19, 2021
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It’s time for your Daily Hit of cannabis financial news for January 19, 2021.

On The Site

Billion Dollar Club

As states report cannabis sales numbers for 2020, record highs continue across the country. It’s become a billion-dollar business for several states, blowing out levels that states had estimated when originally planning legalization.

Colorado

The Colorado Department of Revenue reported that cannabis sales in the state passed $2 billion in sales from January – November 2020.

Massachusetts

Adult-use cannabis retailers in Massachusetts have now tallied more than $1 billion in gross sales, according to information reported in the state’s mandatory seed-to-sale tracking system, the Cannabis Control Commission. At the close of business on October 30,  the aggregate data reported in Metrc by 80 retailers reached $1,000,521,905. What makes this even more impressive is that the state program is basically only two years old.

Cannabis software company Blackbird and payment processor company AeroPay announced a strategic partnership to bring cashless payments to cannabis businesses for online ordering. Blackbird was sold in November 2020 by its parent Tilt Holdings (OTC: TLLTF).  Tilt agreed to sell Yaris Acquisition, LLC better known as Blackbird to Slam Dunk, LLC, a Nevada limited liability corporation controlled by Tim Conder, TILT’s Chief Operating Officer and a member of the board of directors of the company. The company said the total valuation of the deal was $15 million and selling Blackbird resulted in a cut of $3 million in expenses quarterly.

In Other News

Harborside

Harborside Inc. (CSE: HBOR), (OTCQX: HBORF), a California -focused, vertically-integrated cannabis enterprise, today announced a brokered private placement of units of the company at a price of C$2.55 per SVS Unit for gross proceeds of approximately C$20 million with approximately C$9.0 million of commitment from Entourage Effect Capital, LLC, one of the largest shareholders of Harborside.

Bengal Capital

Bengal Capital announced Josh Rosen, co-founder, former CEO and current Chairman of 4Front Ventures (CSE: FFNT), has joined the firm as a Managing Partner.

“Bengal has been immersed in the cannabis industry since our 2013 seed investment in Green Thumb Industries and Josh is as impressive as anyone we’ve met in the space. He brings a successful investment and operating track record to Bengal, and we can’t imagine a better partner to help us identify, act upon, and unlock value in the special situations we see across the investment landscape. Above all, he’s an ideal culture fit for Bengal and I’m incredibly happy Josh agreed to partner with us,” said Sanjay Tolia, founder and Managing Partner of Bengal Capital.


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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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