Video Staff, Author at Green Market Report

Video StaffVideo StaffMarch 22, 2019

3min2970

Tilray Inc. (TLRY) delivered its earnings on Monday with Revenue increasing to $15.5 million, up 203.8% versus the fourth quarter of last year and beating the Yahoo! Finance estimate for $14.15 million. Net loss for the quarter was $31.0 million or $0.33 per share compared to $3.0 million or $0.04 per share for the prior year period. Net loss includes non-cash stock-based compensation charges of $4.1 million compared to $34 thousand in the prior year period.

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) reported its results for The fourth quarter with total revenue of $32 million increasing 49% sequentially and 408% over the 2017 fourth quarter. Curaleaf delivered a net loss of $16.5 million, but this was a steep drop from the previous quarter’s loss of $33 million. The company also said it was acquiring Nevada-based Acres Cannabis in a deal valued at $70 million that is expected to close in 2019.

TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) reported its fourth-quarter revenue that increased to C$4.8 million and full-year revenue for 2018 C$6.6 million.

Grassroots launched its convertible note financing round back in December with the plan to raise at least $40 million in proceeds. However, due to strong demand, the financing round was ultimately increased to accommodate $90 million.

California-based  MJIC, Inc. successfully closed a private round of financing resulting in gross proceeds of U.S. $15 million.

Valens GroWorks Corp. (CSE: VGW)  entered into an agreement with AltaCorp Capital Inc. under which AltaCorp has agreed to purchase shares valued at $30 million.

Lots of stock moves this week

Vireo Health International, Inc., a multi-state cannabis company, listed on the Canadian Securities Exchange under the stock symbol.

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF)  said that its common shares began trading today on the Toronto Stock Exchange. The common shares will continue to trade under the symbol “ALEF.”

and

Vape distributor Greenlane Holdings, Inc., a filed to go public. The company wants to list its Class A common stock on the Nasdaq Global Market under the symbol “GNLN.” But so far the Nasdaq has turned almost every cannabis company down.


Video StaffVideo StaffMarch 15, 2019

6min5600

It’s time to buy your tickets to the Green Market Summit in Chicago on May 7, head to the website for more details.

Lawmakers and regulators in Alaska have signed off on new regulations explicitly permitting adults to consume cannabis at specially licensed retailers. “When these rules go into effect, Alaska will be the first state to finalize and approve statewide rules for on-site consumption.”

Harvest Health & Recreation, Inc. (CSE: HARVOTCQX: HRVSF) has entered into an agreement to buy  VeranoHoldings, LLC in an all-stock deal valued at approximately USD $850 million based on a share price of C$8.79. Harvest Health stock jumped over 15% on the news to lately trade at C$9.56. The deal is expected to close in the first half of 2019.

We are in the midst of earnings season, so let’s jump in.

Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) delivered fourth-quarter revenue of $10.5 million for an increase of 380% over the previous year’s $2.1 million. The fourth-quarter net loss of $217.6 million. The pro forma revenue* for the fourth quarter was $22.9 million and the pro forma adjusted net loss*, was $10.8 million. The company has been on a tear with its expansion During the fourth quarter of 2018, Acreage opened two dispensaries under its The Botanist brand in Buffalo, NY and Worcester, MA, and acquired one dispensary in Thames Valley, CT, ending the year with 19 dispensaries (as of today, Acreage has 24 operational dispensaries).

HEXO Corp (TSX: HEXO; NYSE: HEXO) delivered its financial results for the second quarter of the 2019 fiscal year with gross revenue of $16.2 million an increase of 1,269% versus the same time period for last year. Revenues increased by 114% sequentially. The company reported a net loss for the quarter of $4.3 million, which was a big improvement over last year’s net loss of $8.9 million for the same time period. This week the company also said it was acquiring Newstrike Brands in an all-stock deal valued at approximately $263 million.

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2018. IIPR generated rental revenues of approximately $4.7 million in the quarter, representing a 111% increase from the prior year’s quarter and in line with the Yahoo! Finance analyst estimate.

Zynerba (ZYNE)  reported a net loss for the fourth quarter of 2018 of $7.8 million with a basic and diluted net loss per share of $(0.44). That beat analyst estimates by $0.21 cents.

CV Sciences, Inc. (OTCQB: CVSI) reported its financial results for 2018. The company delivered revenue of $48.2 million for an increase of 133% over 2017. The company also reported net income of $10.0 million, or $0.09 per fully diluted share.

“The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) has entered into a multi-year extraction services contract with Valens GroWorks Corp. (CSE: VGW) (OTC: VGWCF).

 


Video StaffVideo StaffMarch 12, 2019

5min2670

This interview was conducted at Accelerate Cannabis in Newark NJ on February 19.

Debra Borchardt, Green Market Market

Michael Markarian’s company Contempo Specialty Packaging is based in Rhode Island. How did you get into cannabis?

Michael Markarian, Contempo Specialty Packaging

Well that’s a great question. So we’re in Rhode Island because our roots are in the jewelry and fashion business and back in the ’70s and ’80s Rhode Island was the jewelry capital of the world for the costume and bridge sides. So we started in Rhode Island, our roots have always been in Rhode Island and we work for with 40 years with the biggest fashion brands. And we started getting calls a little over two years ago from cannabis companies saying, “Hey the same way you brand some of the greatest fashion brands, can you brand us? We don’t wanna settle for generic average looking packaging.” And when we heard that a few times the light bulb really went off and we’ve been full steam ahead building out a separate division within Contempo.

GMR

So when you mention that most people think packaging’s they think, “Well you probably just do child resistant caps or things like that.” But you go another step beyond that and you’re really doing branding. So how important is branding now to these cannabis companies?

Markarian

Branding is a huge part for cannabis companies particularly as markets mature. So I think early on with the markets initially just by being one of the first you can have success. But then what happens is competition comes in and that can creep up on some of the first movers where they lose their advantage. So competitors come in with better branding that connects with consumers and those early people lose their edge. So as the market matures branding becomes far more important. And our goal is just to make that process super simple for people to get beautiful packaging and also compliant packaging because compliance always comes first. Because these people have so many things on their plate so it’s about the standard of excellence in cannabis packaging and making it super simple is the reason that we’ve been having success.

GMR

You know one thing that a lot of people are talking about now in the cannabis industry is too much packaging. They come out and it’s just it feels wasteful. What can you do to combat that?

Markarian

So establish that fine line because there is a perspective where you can do too much and it becomes wasteful. So I’ve been traveling all over the country and talking to different dispensary owners and there’s certain concepts that they look cool and people appreciate on the first stop into the dispensary. But then when they’re making that purchase over and over again it’s like I don’t want all this packaging. So there’s ways to get around that. But something to be conscious of is over packaging and there is a point where you can go a little bit too far with your packaging.

GMR

So you’re out of Rhode Island obviously the east coast is coming on fairly strong rather quickly, are you mostly working with clients on the east coast or are you also branched out across the country?

Markarian

All over the country. All over North America. We do something called the Cannabis Packaging Show on YouTube and we got someone from Nigeria and South Africa saying, “Hey we watched the show and we want to work with you.” So our focus is definitely the northeast but as we launch these novel child resistant products that are also eco friendly, we’re stating to get inquiries from all over the country and that’s probably the most exciting part of what we’re doing.

 


Video StaffVideo StaffMarch 8, 2019

4min6540

Namaste Technologies Inc. continues to see its troubles compounded following the recent scandal involving the company’s founder and former CEO Sean Dollinger. On Wednesday the company confirmed that its auditor PricewaterhouseCoopers, LLP resigned and will no longer be acting as the company’s auditor and the company will miss filing its financial documents. In addition to that, the company ran afoul of advertising restrictions in Brazil and separately, decided to stop several company initiatives. Oh, and it bought a company called Choklat.

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) made a statement claiming it wasn’t aware of stock promotion activity by a company it hired for public relations. MedMen acknowledged that the OTC Markets had made inquiries about promotional activity relating to promotional materials encouraging investors to buy the company’s Class B Subordinate Voting Shares. MedMen said it thinks that an announcement about earnings that sparked the trading activity, either way, it had the offending article removed.

CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) filed and a prospectus to offer up to C$700,000,000 of debt securities, warrants, subscription receipts, units or common shares.

Flower One Holdings Inc. (FLOOF) is offering up to 50,000 convertible debentures for an offering size of up to $50,000,000

Cannex Capital Holdings Inc. (CSE: CNNX)(OTCQX: CNXXF) moved beyond the interim agreement from November and as of March 1, 2019 officially agreed with 4Front Holdings, LLC to merge the two companies. The new company will initially trade under Cannex’s symbol “CNNX”, although the company said it expected to receive a new ticker in connection with the transaction.

High Tide Inc. (HTDEF) filed its year-end 2018 financial results. Revenue for the fiscal year ended October 31, 2018, was $8,7 million down from last year and mostly due to the loss of a wholesale customer in the Famous Brandz business.

Harvest One Cannabis Inc. (TSXV: HVT) (OTCQX: HRVOF) and Delivra Corp. (TSXV: DVA) entered into a definitive arrangement agreement pursuant to which Harvest One will acquire all of the issued and outstanding common shares of Delivra.

CB2 Insights (CSE:CBII) has commenced trading on the Canadian Securities Exchange (CSE) under the symbol “CBII”.

Village Farms had its shares halted from trading because it turns out it was not DTC eligible yet and that of course is a requirement on Nasdaq.


Video StaffVideo StaffMarch 5, 2019

6min3350

Recorded at the Accelerate Cannabis event in Newark NJ.

Debra Borchardt, Editor, GMR

Slang and Organa Brands just recently did a merger/acquisition. How is it?

Chris Driessen, President, Organa Brands

Oh, it’s been great. It’s been great. It’s been an absolute dream come true. So Slang acquired Organa Brands, so now we’re part of Slang, and it’s been awesome. Our partners, Billy Levy and Peter Miller are great capital markets guys, a lot of experience coming out of Canada, plugged in with us, obviously on the cannabis distribution side, and so far it’s been a match made in heaven.

Borchardt: Now, Organa was already killing it. You guys did over $100 million in sales since 2014, so already a really strong company. What is Slang going to do for you at this point?

Driessen: You know, the ultimate reason we decided to go public and move forward with the transaction, when you looked at what was happening in Canada, and the multiples on these businesses, we really had an honest conversation between myself and my partners to say, “Gosh, we could run the best cannabis business in the world, and you’re just not going to be able to keep up with what’s happening in the public markets.” It was also something that gave us a lot of trepidation, because it’s something we knew little, if nothing, about. So we wanted to identify who was likely going to give us the best opportunity at success in that world. We were very confident, obviously, in what we do, and getting merged up with the partners we did, and Peter and Billy, as I said, it’s just been … it’s been great. It just allowed us really to capitalize yourself to execute on a strategic growth plan and continue expanding our empire.

Borchardt: And, you just signed a deal with Trulieve which is going to get you guys into Florida. So, this seems like a really great combination, because Trulieve already their flag planted in Florida, and you guys have the product, so …

Driessen: Yeah. They are the 800-pound gorilla in the room in Florida. They have, according to the Department of Health, a 60+% market share. And as you know, we go and we really do a lot of due diligence in vetting on our partners when we want to enter into a relationship, and over time it was just clear that their culture, their vision for the Florida market, the infrastructure, just the passion they share for bringing products to the patients in Florida really aligned with what we were trying to create. So it just seemed like a great fit, and over time I think that’s going to bear itself out.

Borchardt: So, do you have any new products on the pipeline, for Organa?

Driessen: We do. We’ve got a lot of fun stuff lined up for this year. One of the newest things that we’re going to be releasing is actually the week after next is the new reiteration of our reserve line. It’s a botanical and terpene-based value-based cartridge. Craft Reserve does great cannabis-derived dominant market share in pretty much every market we’re in. What we’ve identified is that there’s a huge section of the population out there that, you know, wants a quality product at a great price. So being able to provide that to patients and consumers everywhere is something we hold near and dear to us, and I feel really good about it. It’s a winner of a product.

Borchardt: Absolutely. With taxation so high in so many places, it’s really important for the cannabis companies to recognize that for the consumers that are already going to have to have this added expense on top of their purchase.

Driessen: Yeah, no doubt about it. We spend a lot of time segmenting out our products into different tiers, and then obviously doing different pricing segmentation within those tiers. But it’s all about the business of how do I match you up with the best product for what your individual situation is, and we do a pretty good job of that.

Borchardt: Alright, well, I’m excited. I can’t wait to see this new reserve product.


Video StaffVideo StaffMarch 1, 2019

2min5770

This week, Martha Stewart agree to work with Canopy Growth Corporation (CGC) to create a CBD line of products for animals.

On the acquisition front, Curaleaf (CURA) bought Eureka Investment Partners in a deal valued at $30.5 million. Eureka operates a cultivation facility in the Salinas Valley and is developing three dispensaries across the state. The deal will be $10 million in cash, $20.5 million in Curaleaf stock, with a potential added bonus to be paid if certain goals are met. The deal is expected to close in March 2019.

SOL Global formed a new hemp subsidiary called Heavenly RX and its first investment was for $30 million into a  Tennessee-based company called Bluhen Botanicals.

Choom acquired Clarity Cannabis MD Holdings in a cash and stock deal valued at roughly $5.5 million. Clarity has 30 retail locations in Canada.

Cannex bought Pure Ratios Holdings as a way into the CBD market in a deal valued at $8 million.

It is certainly earnings season. We can’t cover them all here, but these are the major ones:

GW Pharmaceuticals(GWPH)  released its first earnings to include sales of its drug Epidiolex. Revenue for the quarter was $6.7 million, which beat analyst estimates and sales from Epidiolex whose sales began on November 1 were $4.7 million.

MedMen Enterprises (MMNFF) reported revenue of $29 million for its fiscal second quarter but net losses remained high at $64 million.  Most of the company’s revenue came from its Southern California stores.

In other news

Zynerba (ZYNE) received a patent for its CBD gel which covers the company’s ZYN002 drug.

CannTrust began trading on the NYSE using the symbol CTST. It will continue to trade on the Toronto Exchange using the symbol TRST.


Video StaffVideo StaffFebruary 22, 2019

2min5100

New Jersey has made progress with regards to full legalization. The state’s leaders agreed to tax cannabis by the pound versus taxing according to sales. While the agreement still needs to have a majority of representatives vote in favor, it’s a big step since they have been negotiating for months without any progress.

Tilray, Inc. (NASDAQ: TLRY) is buying the largest hemp-based food company Compass Group Diversified Holdings, LLC (NYSE: CODI) otherwise known as Manitoba Harvest. The company is paying $318 million in a cash and stock deal. It is Tilray’s sign that it plans on going big with hemp.

Ascend Wellness Holdings secured $37 million in a bridge round of preferred equity and $18 million in a senior secured cultivation note. The $55 million in raised funds will be used to build out market-leading operations in Massachusetts, as well as the continued expansion in limited license cannabis markets.

Canopy Growth Corp. (NYSE: CGC) restated its latest earnings and while the third quarter figures didn’t change, the nine months figures had to be restated. It seems the losses were actually double what the company previously reported. Instead of a C$69 million loss for the nine months ending in December, it was C$155 million. This was an C$86 million mistake that was blamed on a spreadsheet formula error. How did that even get past the audits? That’s not a little mistake folks.

Namaste Technologies Inc. reached a settlement with its founder and former CEO Sean Dollinger. Dollinger will end all his formal roles with the company, drop his lawsuit and vote with the board.

CannTrust Holdings Inc. (TSX: TRST) will begin trading the Company’s common shares on the NYSE on Monday, February 25, 2019, under the ticker symbol “CTST”. The Company’s common shares will continue to be listed on the Toronto Stock Exchange under the ticker symbol “TRST”.


Video StaffVideo StaffFebruary 15, 2019

4min5420

We have exciting news. Our next conference will be on May 7 in Chicago. Go to www.greenmarketsummit.com for details.

The state of Colorado reported that In  2018, marijuana revenue came in at $266.5 million. This compares to $247 million in 2017.

On Wednesday this week, Congress held a hearing on banking services for the cannabis industry. This is the first hearing to be held by the new Congress that will begin tackling the issue of banking for cannabis companies.

This week, we got earnings from Aurora Cannabis and Canopy Growth.

Canopy Growth Corp. (CGC) reported earnings after the market close on Thursday. Net income for the quarter was $74.9 million compared to a net income of $11.0 million for the same time period during last year. Net revenue increased 282% to $83 million over last year’s $21.7 million for the same time period. Total gross revenue increased 350% to $97.7 million. The company reported that the adjusted EBITDA in the third quarter fiscal 2019 amounted to a loss of $75.1 million compared to a loss of $5.7 million in the same period last year. The net loss per diluted share was $0.38.

Aurora Cannabis (ACB) reported that its net revenue rose 363% to $54.2 million over last year’s $11.7 million. However, losses jumped a whopping 3,179% to $237 million versus last year’s gain of $7.7 million for the same time period. The company said in a statement that “Non-cash expenses including the December 31, 2018 mark-to-market adjustments of approximately $190 million primarily on the company’s derivative investments contributed significantly to a net loss of $240 million.”

The San Francisco-based cannabis dispensary chain, The Apothecarium, has been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Included in the purchase are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.

Green Growth Brands Inc. or GGB (OTCQB: GGBXF)  entered into an agreement to gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG). GGB will expand its chain of CBD shops under the Seventh Sense Botanical Therapy. Simon is the biggest mall operator in the country.

Barney’s New York Inc. is opening a luxury cannabis store at its Beverly Hills store next month. Bloomberg reported that the luxury store known for its cutting edge fashion will open a department called “The High End.” And is partnering with Beboe on the effort. Since Barney’s isn’t a licensed dispensary, it will be limited to selling cannabis accessories like pipes, rolling papers, and stash boxes.

The Supreme Cannabis Company, Inc.  (OTCQX: SPRWF) reported a 359% increase in revenue to $7.72 million for the second quarter. This was a 50% sequential increase over the first quarter. The company trimmed its losses by delivering a net loss for the quarter of $1.55 million versus a loss of $2.03 million for the same time period last year.


Video StaffVideo StaffFebruary 8, 2019

4min3890

If you like this news report, please help support the Green Market Report by becoming a Patron go to www.patreon.com/greenmarketreport and feel good about keeping unbiased news alive.

This week, Namaste Technologies Inc. (NXTTF) terminated its CEO Sean Dollinger. The company said that a special committee found cause to terminate. Dollinger, who co-founded the company has filed a counter lawsuit. Dollinger is still on the board and owns 6% of the company’s shares. The investigation seemed to confirm a short-seller report from Citron Research that had alleged impropriety involving the sale of a company asset.

FSD Pharma and Auxly terminated their agreement to work together. Auxly said that FSD breached the agreement and when notified and asked to comply with the agreement, FSD didn’t and then tried to control the message by announcing it had terminated first.

In another divorce in the cannabis industry, MedMen Enterprises Inc. (MMNFF)  former CFO James Parker filed a lawsuit against the company late last week. The company said it will fight the lawsuit and considers it to be a meritless case from a disgruntled ex-employee.

Green Thumb Industries Inc. (OTCQX: GTBIF) is acquiring For Success Holding Company, the owner of Los Angeles-based Beboe branded cannabis products for an undisclosed amount that will be paid in GTI stock.

LB Equity has raised $50 million for a portfolio titled LB Equity Emerging Growth Fund, which will be concentrating its investments in cannabis companies that are involved in beauty, health, and wellness. The company’s first investment is with the platform Standard Dose,

Canopy Rivers Inc. (TSXV:RIV) entered into an agreement with CIBC Capital Markets and Eight Capital to purchase, for a $55.0 million bought deal.

Illinois-based Verano Holdings, LLC has acquired Four Daughters Compassionate Care Inc. of Sharon, Massachusetts and its provisional medical cannabis licenses for an undisclosed amount. The first cultivation and dispensary facilities in Sharon are expected to open in six to nine months. The company said it would hire 50-75 employees locally and train them for these sites in 2019.

The Supreme Cannabis Company, Inc. (FIRE) began trading on Toronto Stock Exchange on February 4, 2019.


Video StaffVideo StaffFebruary 1, 2019

3min8701

SLANG Worldwide went public this week using the symbol SLNG and trading on the Canadian Securities Exchange. The shares were priced at $1.50 and jumped 33% on the first day of trading to $1.99. The company is a merger between Slang and Organa Brands, the vape powerhouse that has done over $100 million in sales since 2014. Firefly is also included in the new company.

Organigram Holdings Inc. reported its first fiscal 2019 quarter results with net sales for the three months ending November 30, 2018, of $12.4 million, up 419% from $2.4 million in Q1’2018.  Sales rose 287% sequentially as the impact of legal adult use sales in Canada continues to be felt on the income statement. Net income for the quarter was $29.5 million

Sproutly Canada, Inc. announced financial results for the quarter ending November 30, 2018. The company reported a net loss of C$2.8 million or $0.02 per diluted share for the quarter versus last year’s net loss of C$473,405 for the same time period. In the filing, Sproutly noted that it has not generated any revenues from operations and has incurred losses since inception. The company has an accumulative deficit of $12,312,832

Innovative Properties Inc. d/b/a Nabis Holdings entered into an agreement with Canaccord Genuity Corp. and Eventus Capital Corp. for a brokered private placement of debenture units of up to C$30,000,000.

Dixie Brands Inc.  (CSE: DIXI.U) and Khiron Life Sciences Corp. (OTCQB: KHRNF) have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market.

Israel is set to pass a law allowing exports of medicinal cannabis, the Finance Ministry said last week, as the county ramps up its attempt to woo more investment and bolster state coffers. The bill passed its third reading in the Israel parliament in December and is now waiting for the cabinet and Prime Minister Benjamin Netanyahu to sign it into law.

 



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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