Video Staff, Author at Green Market Report

Video StaffVideo StaffJuly 18, 2018

4min400

The Green Market Report Cannabis Company Index recovered following a challenging start to the year. After falling 21.9% in the first quarter, the Index on average gained 20% for the second quarter of 2018.

If you’ll recall at the beginning of the year, U.S Attorney General Jeff Sessions rescinded the Cole Memorandum and stocks responded accordingly with many investors taking profits gained in 2017. There was a great deal of fear that the Department of Justice (DOJ) would begin cracking down on the cannabis industry and shareholders wanted no part of that. As it turns out, the DOJ was more bark than bite and very little punitive action has taken place.

The second quarter began a slow climb back up the charts as shareholders began to return to the market comforted by the lack of movement by the DOJ. The quarter was significant for high profile IPO’s like MedMen Enterprises, The Green Organic Dutchman, and Green Thumb Industries. Adding to the excitement, the major stock exchanges in the U.S. opened their doors to Canadian cannabis companies. The NASDAQ welcomed Cronos Group and the New York Stock Exchange-listed Canopy Growth.

Canada’s final legislative approval for legalized adult-use marijuana in June was met with relief and it was capped off by Prime Minister Trudeau’s setting October 17, 2018, as the goal date for sales. Since so many Canadian cannabis companies have built business strategies around this market, it was encouraging to get a green light with a set date. Uncertainty is always unsettling and these final pieces to the legalization puzzle were finally put in place.

The medical market also received the expected good news for GW Pharmaceuticals from the FDA, which approved its cannabinoid drug Epidiolex. This drug will be used to treat rare forms of epilepsy called Dravet Syndrome and Lennox Gastaut. It uses real cannabis plants and is not a synthetic compound. The company had been achieving all of its drug trial study goals and there seemed to be no reason for the FDA to have turned the company down. So, even with positive expectations, getting the final word was heartening.

Still, the FDA made it clear that its approval did not change the scheduling status for cannabis and that the agency would send a recommendation to the DEA, but did not say what that recommendation would be. GW Pharma was more clear and adamantly stated that rescheduling would occur within 90 days.

This approval has many in the cannabis industry feeling that there will be some big moves for the rescheduling question as a result of the FDA’s approval. Even though there really is no guarantee of this happening, most feel that there is no turning back now for cannabis and a change in its classification is inevitable.

You can read the entire  Index Summary here.

 

 


Video StaffVideo StaffJuly 6, 2018

2min3100

It was a slow news week with the Fourth of July holiday falling in the middle of the week on Wednesday. The markets were closed for trading and it seems many people were taking part of the week as extended holidays.

Sunda,y July 1 was supposed to be the start of recreational marijuana sales in Massachusetts, but the state has only issued one license and there are no labs licensed to test product. Vermont legalized adult use cannabis, but sales of the product are illegal. And California set that day as the day for all products sold in dispensaries to be compliant with the new regulations causing many businesses to offera huge sale to dump non-compliant products.

Flow Kana announced the completion of a $22 million round of financing, led by a $15 million investment from Gotham Green Partners.

Pharmaceutical company Zynerba said that the phase 1 study for its cannabinoid compound ZYN001 failed and that the company was moving instead with its other drug ZYN002. The company’s stock plunged over 15% in early trading on Thursday, but trimmed those losses by the afternoon.

The Canadian province Alberta decided upon its cannabis suppliers and several companies were happy to announce the news but only hometown favorite Aurora Cannabis and Maricann actually stated the amount that was agreed to be supplied. Other companies included Aphria, Organigram, Emblem WeedMD and Supreme Cannabis.


Video StaffVideo StaffJune 29, 2018

4min2730

There wasn’t a ton of financial news this week, but what came through was BIG.

First, the FDA approved GW Pharmaceuticals’s (GWPH) drug Epidiolex. This cannabinoid drug is used to treat rare forms of epilepsy and it went through all the FDA study trials like any other prescription medicine. In the FDA’s statement, the agency reminded everyone that cannabis is still considered a schedule one drug, but that it would send a recommendation to the DEA about that classification.

GW Pharma had another take on that issue. They said that rescheduling would occur within 90 days. This DEA and administration have not been very receptive to medical marijuana, so it remains to be seen whether they would actually follow the FDA recommendation.

Also, Oklahoma became the 30th state to legalize medical marijuana. Despite a well-funded opposition, the voters prevailed.

Canopy Growth Corporation (CGC) reported that its fourth-quarter revenue rose 55% to C$22.8 million versus last year’s C$14.7 million for the same time period. Still, the company recorded a net loss of C$61.5 million or C$0.31 per share, which was dramatically higher than last year’s net loss of $12.0 million, or $0.08 per share for the same time period. Revenues jumped 95% in the fiscal year ending March 31, 2018, to C$77.9 million over revenue of C$39.9 million for last year.

Aurora Cannabis Inc. (ACBFF) has agreed to a new C$200 million debt facility, with a potential increase to C$250 million, with the Bank of Montreal. The debt will consist of a $150 million term loan and a $50 million revolving credit facility both of which will mature in 2021.

We have a few acquisitions for the week.

EVIO Labs is acquiring MRX Labs for an undisclosed amount. The deal will allow MRX Extractors to focus on extraction while letting the lab side of the business combine with EVIO to focus on lab work.

Marapharm Ventures Inc.  (MRPHF)  entered into a Letter of Intent to purchase all the shares of  Full Spectrum Medicinal Inc.

Harvest One Cannabis Inc. (HRVOF) has signed a binding Share Sale Agreement with Australian-based MMJ PhytoTech Limited for the purchase of 100% of Israeli-based PhytoTech Therapeutics Ltd.

PotNetwork Holdings, Inc. (POTN) announces that it is in the process of filing an amendment for a name change from PotNetwork Holdings, Inc. to “BioTech Hemp, Inc.”.

 

 


Video StaffVideo StaffJune 25, 2018

1min1240

Releaf is the app that takes the mystery out of medical marijuana says CEO Franco Brockelman. His app crowdsources medical marijuana patients in order to get real-life experiences to help other patients determine the best strain and dosage. Brockelman spoke to Green Market Report Editor-In-Chief Debra Borchardt at the recent Cannabis Learn event in Philadelphia.

The company was created with founder Franco Brockelman’s mother in mind, Releaf was designed under the basic principle that there had to be a better way to track and demystify the world of medical cannabis; a process which can be hard to navigate for experienced users, let alone people who are new to their course of treatment.


Video StaffVideo StaffJune 22, 2018

4min3190

It was a big week for our friends in the great white north. Canadian lawmakers passed the Cannabis Act, also known as C-45 which will legalize and regulate cannabis for adult use. Prime Minister Trudeau has been very supportive of the legalization effort and has stated that October 17 is the planned date for the first legal recreational sales. Canada will be the first G7 nation to legalize marijuana for adults at the national level.

Tilray Inc. has filed for an initial public offering to list its shares on NASDAQ using the symbol TLRY. Privateer Holdings will continue to own a majority of the voting power of all outstanding shares of Tilray’s capital stock and as such will be considered a “controlled company.” Privateer will own 75 million shares and have the majority of the voting power. In the company filing, Tilray reported that revenue rose 62% from 2016’s C$12.6 million to 2017’s C$20.5 million.

Long-time cannabis media company High Times is launching an equity crowdfunding program under the SEC’s Reg. A+ process. The company had made plans in 2017 to go public following a merger with Origo Acquisition company, but so far the deal hasn’t closed.  With the crowdfunding campaign, High Times will offer investors a chance to buy shares before the delayed initial public offering. The Reg. A+ stock is to be priced at $11 a share and the company is saying that this will be a 10% discount to its planned price on NASDAQ.

High Times said the initial response to the crowdfunding campaign has been strong with 400 new investors on the first day alone.

The Hydropothecary Corporation (TSX-V:THCX) announced that it has received approval from the Toronto Stock Exchange to uplist from the TSX Venture Exchange to the regular Toronto Stock Exchange. In addition to the uplisting,  the company is changing its corporate name from The Hydropothecary Corporation to HEXO Corp and will trade under the symbols “HEXO”

Innovative Industrial Properties (IIPR) filed a prospectus for a $300M mixed securities shelf offering. The company intends to use the net proceeds from the sale of these securities to invest in specialized industrial real estate assets

Canadian cannabis company MedReleaf reported that its sales increased 8% to C$43.6 million for the fiscal year 2018, still the company reported a net loss of C$7.5 million. The fiscal fourth-quarter sales rose 16% to C$12 million and a net loss of C$812,000.

Scotts Miracle-Gro Co. (SMG) was downgraded to underperform from market perform at Raymond James on concerns that expectations are too high to overcome near-term challenges.

Marketing tech company springbig announced that it has exceeded the 1,000,000 consumer milestone, establishing the company as one of the fastest growing CannaTech companies in the cannabis industry.


Video StaffVideo StaffJune 15, 2018

6min3240

Green Thumb Industries

Chicago-based cannabis company Green Thumb Industries (GTI) began trading on June 13 under the ticker symbol “GTII” on the Canadian Securities Exchange. GTI’s owner VCP23 did a reverse take over of Bayswater Uranium Corporation raising $67 million through a private placement. VCP reported that its total revenue for the year ending December 31, 2017, was $16.5 million with a net loss of $4 million.

48North

Toronto-based 48North began trading on Monday on the TSX Venture Exchange with the ticker NRTH. Led by Chief Executive Officer Alison Gordon, this cannabis company is a vertically-integrated house of brands focused on women’s health and wellness. So far the company has raised $27M between 2014-2016 via non-brokered private placements.

22nd Century Group

22nd Century Group, Inc. (NYSE: XXII) announced that it will be added to the Russell 2000, Russell 3000, and Russell Global Indexes when FTSE Russell (Russell) reconstitutes its U.S. and global equity indexes on June 22, 2018.

Aurora Cannabis

Aurora Cannabis Inc. (ACBFF) has signed a binding term sheet to acquire all the shares of private company Anandia Laboratories Inc. in an all-stock transaction valued at C$115 million. Anandia Labs is led by cannabis expert Jonathan Page, Ph.D., the company’s CEO and Co-founder. Dr. Page was the first scientist to sequence the cannabis genome and provide deep insights into the biosynthesis of cannabinoids and the interplay between cannabinoids and terpenes.

PRØHBTD

PRØHBTD, the leading cannabis lifestyle media, and brand platform have raised $12 million in funding, $8 million of which was recently secured from a Series A round of investment. The company plans to go public in Canada this year.

In other cannabis news…

Farm Bill

The Farm Bill passed with the attached hemp legalization language.  The Senate Agriculture Committee passed the 2018 farm bill in a 20-1 vote despite an attempt to tighten farmer subsidies. Sen. Chuck Grassley, R-Iowa, cast the sole “no” vote, because his amendment to limit subsidy payments wasn’t added to the proposed bill.

And finally

A new report from the Alaska Alcohol and Marijuana Control Office and the Department of Environmental Conservation found that labs testing marijuana for potency were delivering very different results.

Different labs using similar methodology should have reported similar results, instead, the results came back and they weren’t even close. For example, the test took a marijuana muffin, and brought it to the only two testing labs in the state. The results delivered a large margin of error between the two. They can’t even tell which lab is the accurate one.

 



About Us

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


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