Video Staff, Author at Green Market Report

Video StaffVideo StaffNovember 9, 2018

3min4220

Cannabis arch enemy Attorney General Jeff Sessions resigned this week at the request of President Trump. If you’ll recall Sessions rescinded the Cole Memorandum and initiated lifetime bans at the northern border of people that work in the cannabis industry. It’s hard to say at this point whether the acting AG Matthew Whitaker will be for or against cannabis legalization, presumably he will be focused on the Russian investigation and not legalization issues.

We also got the results from the midterm elections this week and Michigan became the 10th state to legalize adult use cannabis. Missouri and Utah both legalized medical cannabis. North Dakota just said no to approving adult-use cannabis.

In New York, the state gained a democratic majority and many believe that this will result in legalizing adult use cannabis.

Golden Leaf is merging with Terra Tech (TRTC) after the company reported a net loss of $5.5 million in the third quarter. Revenues did climb to $5.1 million, but the value of its biological assets fell.

High Times has extended its stock offering to the end of November. The company said it wanted to accommodate additional investors that have resulted from the ad campaign as a result of the iHeart Radio deal. The iconic magazine also updated the market on declines in its revenue, but it seems the company’s expenses have fallen.

Green Growth closed on another C$30 million raise bringing the company’s total capital raise so far to $140 million.

Third quarter earnings have begun to roll in. Innovative Industrial Properties (IIPR) reported that its revenues climbed 150% to $3.9 million for the third quarter versus $1.6 million for the same time period last year. The company also delivered a net income of $1.5 million or $0.21 per diluted share. and IIPR said it would pay its sixth consecutive dividend.

Insys Therapeutics (INSY)  delivered a quarterly loss of $0.37 per share missing the Zacks Consensus Estimate for a loss of $0.20. The company also delivered revenues of $18.35 million, which also fell short of Zack’s estimate by 18%. Insys said that it was reviewing its portfolio of opioid assets including Subsys meaning it could be on the selling block.

Aphria (APHA) acquired German-based CC Pharma. Germany is key to the company’s international expansion.

Aurora Cannabis made a $20 million investment in the upscale chain called Choom.


Video StaffVideo StaffNovember 2, 2018

3min5502

Curaleaf began trading on the Canadian Securities Exchange on October 29 with the symbol CURA. The stock fell almost 20% on the first day of trading but quickly began to rebound. The company had an initial valuation of $4 billion.

The New York Stock Exchange listed Aphria Inc. and then delisted India Globalization Corp. Aphria stock will begin trading on the NYSE on November 2, while IGC shares have been suspended immediately. Diego Pellicer did a 20 to 1 reverse split and received a temporary stock symbol from the OTC Markets of DPWWD until November 30, when it will revert to DPPW.

Arizona is hot this week and not just temperature wise.

MedMen acquired Arizona-based Level Up in a cash and stock deal valued at $33 million. It includes licenses for 2 vertically integrated operations with retail stores in Scottsdale and Tempe. In addition, MedMen gets a 40% stake in K.I.N.D. concentrates and will get to put its locally made MedMen products in the Arizona stores.

Cresco Labs has acquired Arizona Facilities Supply for an undisclosed amount. It includes 2 cultivation facilities, a processing facility, and a dispensary.

Separately Sugarmade acquired the hydroponic supply company Sky Unlimited in a $40 million deal.

Lots of capital raises to go over.

Hydrofarm raised $55 million and said it is planning a 2019 IPO.

Tiger Global and Casa Verde combined to invest $50 million into seed-to-sale software company Metrc.

Wayland Group Raised $50 million, Indus Holding company raised $46 million. and Jane Technologies raised $6 million.

And finally, the Nevada Dispensary Association issued a report on the effect of legal cannabis sales to the economy. Currently, adult use cannabis sales account for 63% of all cannabis sales in the states, while medical sales make up the remaining 37%. Between 2018 and 2024, the state’s adult use cannabis industry is expected to generate an estimated $8 billion of economic activity.

Additionally, the industry is expected to support approximately 67,000 jobs in the same period. Cannabis regulations are also forecasted generate roughly $3.6 billion in direct, indirect, and induced labor income.

Direct spending in the cannabis industry is also projected during this period to have a multiplier effect of 1.63; which means that for every $1 spent on retail cannabis, another $0.63 will be generated throughout the state economy.


Video StaffVideo StaffOctober 30, 2018

1min2140

The internet is taken for granted by most companies, but it poses challenges for cannabis companies. At the recent Green Market Summit in New York City, several cannabis executives discussed how they meet conquer these barriers and thrive. Vivien Azer of Cowen & Co., Sean Dollinger, Namaste Technologies CEO, Peter Gigante – Head of Policy Research at Eaze and Michael Arnkvarn COO at MPX Bioceuticals.


Video StaffVideo StaffOctober 26, 2018

3min6160

The broader stock market took a tumble this week and brought the cannabis stocks down as well. However, considering how high they had gotten, a little reversal seems healthy.

MedMen (MMNFF) reported fourth-quarter sales of $20.6 million and annual revenue of $39.8 million. Both increases over 1000%. Unfortunately, that came at a cost. The net loss was $66 million. But no worries, MedMen is sitting on almost $80 million in cash and will have numerous stores coming online in the near future through the many acquisitions the company has made. MedMen also uplisted to the OTCQX Best Market from the Venture market.

Scythian Biosciences had a big week. The company flipped its Florida property 3 Boys Farms to Verano and in exchange will get the multi-state properties from Verano’s portfolio. The exchange is valued at $100 million.

Namaste Technologies (NXTTF) closed on its previously announced bought deal including the over-allotment option for gross proceeds of $51 million.

Lots of housekeeping notes on stocks this week.

Aurora Cannabis began trading at the New York Stock Exchange this week using the symbol ACB. The company moved over from the OTC markets.

CannaRoyalty changed its name to Origin House and it will begin using the symbol OH in trading.

Marapharm  Ventures changed its name to Liht Cannabis and will use a new symbol LIHT.

Canaccord initiated coverage on The Green Organic Dutchman (TGOD)  with a Speculative Buy rating and a C$7 target price. The Canadian stock was lately trading at C$3.83. “While TGOD’s current focus is on increasing production capacity in Ontario and Quebec, we expect the company to be free cash flow positive in 2020 as it plans to build a portfolio of organic cannabis brands that will serve legal recreational and medical markets around the world.”

Bloomberg reported that Pax Labs was valued at $5 billion.

And 4Front holdings raised $31 million and putting itself solidly on the road to going public. 4Front will use the proceeds of the offering to fund its ongoing investment in top-tier talent, the build out in multiple states of its Mission-branded dispensaries and cultivation facilities, as well as for M&A opportunities


Video StaffVideo StaffOctober 19, 2018

5min5580

The big news this week, of course, was Canada. The country began its legal adult use cannabis sales on the 17th. While there weren’t necessarily a huge amount of dispensaries open, there were definitely some that began sales at midnight. Delta 9 (VRNDF) cannabis store reported that within the first minute of online sales, there were 100 orders and that sales for the day totaled $50,000. Products sold out within the first few hours.

In other Canada news, Acreage Holdings invited former Prime Minister Brian Mulroney to its board of directors.

iAnthus Capital (ITHUF) is acquiring MPX Bioceutical Corporation (MPXEF) in an all-stock transaction valued at $835 million. At a price of approximately $1.28 per MPX common share, its a premium of 30% based on the closing price of iAnthus and MPX common shares on October 17

Canopy Growth Corporation (NYSE: CGC) entered into an agreement to acquire the assets of hemp research company ebbu, Inc.  It is a cash and stock deal that is expected to close in November. Canopy Growth will pay C$25 million in cash and issue 6,221,210 company common shares to ebbu in exchange for the assets being acquired.

MedMen is selling three of its property assets to Treehouse Real Estate Investment Trust. This initial investment in the three properties will represent approximately $12.5 million in proceeds, after debt repayment. The properties sold will be leased back to MedMen so the medical cannabis giant and its subsidiaries can continue to operate in its original properties.

Lots of housekeeping news on stocks

Aurora Cannabis Inc. said that its shares have been approved for listing on the New York Stock Exchange and will begin trading at the open of markets, October 23, 2018.

CannAmerica Brands began trading on the Canadian Securities Exchange under the symbol “CANA”.

Elev8 Brands, Inc. (OTCQB: VATE), was approved for trading on the OTCQB Venture Market.

In earnings:

India Globalization Capital Inc. (IGC) is – a cannabis company that doesn’t sell cannabis and is listed on the New York Stock Exchange. The company only books revenue from its legacy business of trading commodities and heavy equipment rental. For the three months ending September 30, this was $811,000. The net loss for the quarter was $858,000. There is no revenue from cannabis products at this time.


Video StaffVideo StaffOctober 12, 2018
marijuanamoneyminute-1280x743.jpg

5min7070

MedMen (MMNFF) continues its spending spree. This week the company is buying Pharmacann in a deal valued at $682 million. Pharmacann is a medical marijuana operator with 10 retail stores and three cultivation and production facilities across multiple states. MedMen’s network nearly doubles with this deal and will now have a portfolio of cannabis licenses in 12 states to operate 79 cannabis facilities.

Seed-to-sale technology provider MJ Freeway has agreed to a merger with MTech Acquisition Corp., which is the first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry. MTech and MJ Freeway will become subsidiaries of a newly-formed holding company to be listed on the NASDAQ (NDAQ) Stock Market.

A report from Canada suggested that tobacco giant Altria is considering a minority investment in Aphria. Both companies were evasive when asked if they were considering a deal, but it seems Altria folks were spotted at the Aphria headquarters.

Aurora Cannabis Inc. (ACB) announced that it has filed an application to list its shares on the New York Stock Exchange (ICE). The company said that it expects to begin trading on the NYSE by the end of October under the symbol “ACB.”

Green Acre Capital has announced that it has received more than $75 million for the initial closing of Fund II. With funding in hand, the company said that it will begin making investments and plans to stop taking capital within the next 30 days; focusing on ancillary cannabis companies

Vivien Azer of Cowen & Co reiterated her Outperform rating on both Canopy Growth and Tilray. Azer lifted the price target for Tilray from $62 to $172 and raised the price target for Canopy’s Toronto-traded shares from the U.S. dollar $57.17 to $63.35.

Next week on October 17th Canada will begin selling legal adult use cannabis, so get ready for an avalanche of cannabis news from the great white north.

Following the taping of the Marijuana Money video Aphria (APHQF) first fiscal quarter of 2019 ending August 31 revenue rose 117% to C$13,392 from $6,120 for the previous year for the same time period.  The company said that adjusted gross profit for the first quarter was $8,458, with an adjusted gross margin of 63.6%, compared to $9,468 with an adjusted gross margin of 78.7% in the prior quarter. The decrease in the adjusted gross margin and adjusted gross profit from the prior quarter largely relates to an internal decision to dispose of 13,642 plants prior to harvest.

Net income was $21,176 or $0.09 per share, as opposed to $15,041 or $0.11 per share in the prior year. The increase in net income for the quarter relates to gains on our long-term investment portfolio, primarily our investments in Liberty Health Sciences and Hiku Brands Company Ltd. and the increase in fair value of biological assets caused by the production increase associated with our Part III Expansion project.

 



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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