Video Staff, Author at Green Market Report - Page 2 of 10

Video StaffVideo StaffNovember 16, 2018

4min7700

The MJ Biz conference happened this week. It’s the biggest marijuana conference in the country.. There are 25,000 people attending the conference here in Las Vegas.

But the biggest news this week is that Acreage Holdings began trading on the Canadian Securities Exchange using the symbol ACRG.U. The shares were priced at $25. The multistate operator is in 17 states and is valued at over $2 billion. Acreage hasn’t released any revenue projections and instead would like investors to focus on its extensive footprint.

However, Acreage wasn’t the only company to begin trading this week. MJardin acquired GrowForce in a deal valued at $275 million and the company began trading on the CSE. The symbol is MJAR. MJardin projects that it will bring in $162 million in revenue in 2019 according to an investor presentation. The 2020 estimates are for $325 million in revenue.

Think that’s it for new cannabis stocks today? You are wrong! Harvest also began trading on the CSE today with the symbol HARV. This multistate operator is operational in four states and has licenses for 11. The RTO has brought the company’s capital raise to $218m. The stock was priced at C$8.67, but opened lower at C$5.50 and then closed at $7, opened at C$5.50.

We had some big earnings this week too.

Canopy Growth (CGC) stock fell after the company missed analysts estimates. Canopy Growth reported that its second-quarter fiscal 2019 revenues jumped 33% to C$23.3 million, but analysts had estimated the company should have had revenues of C$60 million. Sales and marketing expenses were $7.6 million or 43% of revenue.

Tilray (TLRY) stock fell after the company reported third-quarter revenue of $10 million, an increase of 85% versus the same time period for last year. The company said that the average net selling price was $6.21 versus last year’s $7.53. The net loss for the quarter was $18.7 million or $0.20 per share compared to last year’s $1.8 million or C$0.02 per share.

Cronos Group (CRON) reported a 186% increase in third quarter revenuesto $3.8 million versus last years $1.3 million for the same time period. Gross profits were essentially flat with C$2.09 million for this past quarter versus C$2.0 million for the previous year.

The net loss increased to C$7.2 million for the quarter over last year’s net income of C$1.0 million. The net loss per diluted share was four cents versus last year’s net income per diluted share of one cent.

 

 


Video StaffVideo StaffNovember 9, 2018

3min6760

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

3min8012

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

1min3990

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

3min8330

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



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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