William Sumner, Author at Green Market Report

William SumnerWilliam SumnerJuly 19, 2019
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3min340

Expenses are up, and revenue is down as Namaste Technologies Inc. (TSXV: N) (OTCMKTS: NXTTF) tries to put the troubles of the past few months behind it. Yesterday the company released its financial statements for the three and six month periods ending on May 31, 2019.

Revenue for the quarter was $3.99 million, compared to $4.06 million during the same period in the previous year. For the six month period, revenue was $8.5 million, down from $9.6 million. The net loss for the quarter was $8.6 million. For the six month period, the net loss was $18.91 million, representing a year-over-year increase of $7.47 million.

For the six month period, selling, general and administrative expenses rose from $14.71 million in the previous year to $21.57 million. A significant contributing factor to Namaste’s rising expenses and decreased revenue was a combination of toxic news and legal issues involving its former CEO, Sean Dollinger.

Last October, the company came under a short-seller attack by Citron Research, which among other accusations, claimed that Dollinger, who was then CEO of Namaste, lied to shareholders. Dollinger claimed to have sold Dollinger Enterprises US, a subsidiary of Namaste, to an arm’s length party, when in fact he had sold it to company insiders.

Consequently, Namaste hired a special investigator to examine Citron’s claims, which ultimately led to Dollinger’s ousting and a $1.9 million bill for the investigation. Further compounding the scandal was news that its auditor PricewaterhouseCoopers, LLP resigned as well as claims of “irregular advertising” by the Brazilian government. As a result of losing its auditor, the company was also late in filing its financial statements; placing the proverbial cherry on top of this scandal-ridden sundae.

Nevertheless, Namaste has endured and ended the second quarter with positive working capital of $63.3 million and was able to acquire a 49% stake in Calgary, AB-based Choklat Inc. and as well as increase its equity position in Pineapple Express Delivery Inc. to 49%.

In a statement, Namaste’s interim CEO Meni Morim expressed confidence in the company’s short-term outlook.

“We have improved the Company’s foundations to build the world’s most customer-focused cannabis marketplace,” said Morim. “From here, we are reprioritizing and refining our investments towards scalability, gaining market share and working capital management. We expect to see these results take shape over the next three to six months with a balanced approach between working capital optimization and the right investments to help the company grow.”


William SumnerWilliam SumnerJuly 18, 2019
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5min820

It’s time for your Daily Hit of cannabis financial news for July 18, 2019.

On the Site

Aurora Cannabis

Italy has chosen Canadian-based Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) as the sole winner of the Italian government’s public tender to supply medical cannabis in Italy. The contract is expected to be signed in September 2019… It will be a two-year contract in which Aurora will provide 400 kg of medical marijuana from its Canadian facilities.

5 Ways To Fix The California Cannabis Market

While it would be wonderful to have the luxury of starting over again, rebooting is not an option for California. The past cannot be changed. Those who are interested in addressing the chaos in the regulation of California’s cannabis industry must go forward from where we are today.

 In Other News

Neptune Wellness Solutions

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced that it has closed a private placement offering of 9,415,910 common shares of the company, at a price of $4.40 per share, for $41.4 million. The offering was led by Perceptive Advisors. The proceeds of the offering will go towards working capital, general corporate purposes, and the acquisition of the assets of SugarLeaf Labs LLC and Forest Remedies LLC. The SugarLeaf acquisition is expected to close on or around July 31, 2019.

MediPharm Labs

MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) announced that it has received conditional approval to trade it shares on the Toronto Venture Exchange and list its common shares on the TSX under the symbol “LABS”. “We are thrilled to have qualified to uplist to the TSX. This is an important step for the MediPharm Labs team and our shareholders,” said MediPharm Labs CEO, Patrick McCutcheon.

Origin House

Origin House (CSE: OH) (OTCQX: ORHOF) announced that its preliminary unaudited revenue for the second quarter, ending on June 30, 2019, was $21 million, representing an approximate gross margin, excluding fair value items, of 17%. The company plans on releasing its full financial results for the quarter during the second half of August. “Origin House has continued to gain momentum as our team leveraged the California-focused platform we have built over the past two years to drive another quarter of record revenue along with steady progress on gross margin. As expressed previously, we strongly believe that 2019 will mark an inflection point both for the California market and Origin House as a whole and the numbers are proving this out,” said Marc Lustig, Chairman and CEO of Origin House.

Akerna Corp.

Akerna Corp. (Nasdaq: KERN) announced today that it has partnered with Leafly to integrate its seed-to-sale compliance software, MJ Platform, with Leafly.com. With the integration, MJ Platform users will be able to view their inventory and menus automatically update on Leafly. “MJ Platform is the cannabis industry’s first ERP software and through partnerships, such as the one with Leafly, we provide a leading compliance, technology platform across the entire supply chain that connects almost every data point,” said Akerna CEO, Jessica Billingsley. “The partnership with Leafly provides a seamless integration for MJ Platform users, which is good business practice as it eliminates manual updates and delayed information.”


William SumnerWilliam SumnerJuly 17, 2019
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8min980

It’s time for your Daily Hit of cannabis financial news for July 17, 2019.

On the Site

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) plans to acquire all of the shares of privately-held Toronto-based Truverra Inc. in a deal valued at $20 million. Truverra is known for its wholly-owned subsidiaries, Canadian Clinical Cannabinoids Inc. (CCC) and Truverra (Europe) B.V. The move is intended to boost Supreme’s extract offering for later this year when Canada’s market will open up to such products.

SOL Global

SOL Global Investments Corp. (CSE:SOL) (OTCPK:SOLCF) has invested $6.5 million in its portfolio company CannCure Investments Inc. The move is intended to fuel the growth of its position throughout the cannabis markets of Florida, Michigan, and California… CannCure is a majority-owned subsidiary of SOL Global that indirectly holds 100% of 3 Boys Farms,  a Florida cannabis company with a state license to cultivate, process and dispense medical marijuana and other diversified cannabis assets in various stages of investment.

Curaleaf

Curaleaf Holdings Inc. (NURLF) stock popped almost 20% on the news it was acquiring privately-held multi-state operator Grassroots or GR Companies Inc. in a deal valued at $875 million. The deal will be made up of 108.8 million shares and $75 million at the closing which is expected in early 2020. If the deal is completed, Curaleaf’s footprint grows from 12 states to 19 states and putting it within reach of Acreage Holding’s (ACRG.U) size.

In Other News

Plus Products

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) announced revealed the rebranding of its line of low-dose cannabis edibles. Guiding the rebrand was research conducted by Henry J. Rak Associates and designed by Partners & Spade. “Cannabis can be confusing. We hope our new system will help reduce some of that confusion,” said Jake Heimark, Plus Products CEO and Co-founder. “We worked with experienced market researchers to find out why people use cannabis, then translated those findings into an easy-to-use system of cannabis. We are excited to help our customers Uplift their experiences, bring Balance to their everyday, and Unwind without getting unwound.”

PHILTER Labs

The technology company PHILTER Labs, Inc. announced that it has raised $3 million in growth funding. The company specializes in crafting vaporizer products and accessories. Leading the fundraise was Bravos Capital, Explorer Equity, and an undisclosed cannabis-focused private equity firm. “The proprietary technology behind PHILTER made it a very attractive investment opportunity for us; the company’s future product roadmap clearly represents a revolutionary step forward in vape filtration technology, as opposed to the more incremental steps that most vape hardware companies are working on,” said Jeff Kendig, Managing Partner of Bravos Capital.


William SumnerWilliam SumnerJuly 16, 2019
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4min1110

It’s time for your Daily Hit of cannabis financial news for July 16, 2019.

On the Site

TILT

Multi-faceted cannabis company TILT Holdings Inc.  (CSE: TILT) (OTCQB: SVVTF) said that it has signed a binding term sheet for a private placement of $125 million from a syndicate of institutional investors led by UCP, a Toronto-based investment firm specializing in cannabis and alternative assets. The company said that the money will be in the form of convertible senior secured notes that will provide aggregate gross proceeds of $50 million and could go up to $125 million. The deal is expected to close in August.

Jane Technologies

With one of the largest cannabis technology fundraises completed to date,  Jane Technologies, Inc., a retail software company that created the first and largest online cannabis marketplace, has announced it has secured $21 million in Series B funding. The I “Heart” Jane team is the company behind the first cannabis e-commerce marketplace expands to keep up with global demand for retail cannabis products sold online. This latest round of funding, led by new and returning investors, will allow Jane to expand its online marketplace to international vendors, bolster its data analytics platform, and deliver data to other industries.

In Other News

The Arcview Group

The cannabis industry investor network, The Arcview Group, announced that it has closed a $7.7 million Series A financing round. Leading the fundraise was Trivergance Investments in partnership with Cresco Capital Partners. In connection with the financing,  Washburn Ampology co-CEOs, Jerry Stone and Jonathan, and Codie Sanchez, Cresco Capital Managing Director, will join Arcview’s board. “We have been a proud partner of Arcview from many years, as several of our portfolio companies have successfully raised capital through their platforms,” said Sanchez. “We see a real need for the new asset management offerings in development at Arcview to fuel great ideas and passionate entrepreneurs. We are thrilled to help continue to ensure cannabis startups receive the funding they need to flourish.”

Canopy Rivers

Today Canopy Rivers Inc. (TSXV: RIV) (OTC: CNPOF) reported the fourth quarter and year-end financial results for the 2019 fiscal year. Operating income was C$6.08 million, down from C$19.5 million in the same period of the previous year. However, year-over-year operating losses declined from C$17.15 million in Q4 2018 to C$1.43 million in Q4 2019. Operating income for the year fell from C$50.21 million in 2018 to C$38.47 million in 2019. The company experienced a total comprehensive loss of $30.35 million for the year. “This past fiscal year represented a period of significant capacity build-out and operational investment at our portfolio companies. We are excited to see our partners complete their build-out activities over the next few quarters, allowing their underlying businesses to scale and accelerate their individual paths towards the generation of meaningful EBITDA across the Company’s ecosystem,” commented Canopy Rivers CFO, Eddie Lucarelli.


William SumnerWilliam SumnerJuly 11, 2019
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5min2200

It’s time for your Daily Hit of cannabis financial news for July 11, 2019.

On the Site

Bhang Corporation

Cannabis edible company known for its chocolates Bhang Corporation (CSE: BHNG) began trading on the Canadian Securities Exchange as Bhang Inc. under the stock symbol “BHNG” on July 11, 2019. “We’re proud to announce this major milestone for Bhang and the industry, as we see a national cannabis brand begin trading on the CSE. This public listing fuels our strategy to meet the growing demand for today’s most innovative cannabis products,” Scott Van Rixel, CEO of Bhang, said.

California Cannabis Contract Conundrums For Lawyers

We were prompted to write this article by the juxtaposition of two articles republished by Cannabis Business Executive in its July 4th Edition. The title of the first article, The Top 5 Most Dangerous Cannabis Contracts in California, caught our eye. We were intrigued by the title. What is a “dangerous” contract?

Executive Spotlight: Antonio Frazier, Director of Operations for CannaSafe

Antonio Frazier is the Director of Operations at CannaSafe, the first ISO licensed cannabis lab in the world and the leading marketshare holder in California. He met CannaSafe President, Aaron Riley, while playing football together at Furman University, where he earned a Bachelor of Science degree; he also holds a B.S. in Materials Engineering from Clemson.

In Other News

Demetrix

The biotechnology company Demetrix Inc. announced that it had raised $50 million in Series A funding. The company specializes in the production of CBD through fermentation, using bakers’ yeast to help accelerate cannabinoid production. Tuatara Capital led the fundraise and included investors from Horizons Ventures, who led Demetrix’s previous $11 million Series Seed round. Demetrix plans on using the funds to scale its operations.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF) announced that its company founders have voluntarily entered into a lock-up agreement. Representing 65,253,093 subordinate voting shares of the company (59.25%), shareholders have agreed that they will not sell or offer to sell their shares on or before July 25, 2020. On January 25, 2020, an additional 15%, or 11,205,960, of the subordinate voting shares will be released from the lockup. According to Trulieve CEO Kim Rivers, the lock-up will help increase shareholder value. “This extension of the lock-up period demonstrates the continued confidence the company founders have in the execution of our long-term strategy,” Rivers said.

Green Growth Brands

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) announced that it had reached a deal with American Eagle Outfitters to sell hemp-based CBD infused products in nearly 500 of the retail clothing brand’s stores, as well as its online store. The products will be specifically designed for the American Eagle brand, and sales are expected to begin sometime in October 2019.

Supreme

The Supreme Cannabis Company, Inc. announced today that the Supreme Court of British Columbia had approved its acquisition of Blissco Cannabis Corp. The arrangement will close on July 12, 2019, upon which Supreme will acquire all of Blissco’s issued and outstanding common shares. “With the closing of this acquisition, Supreme Cannabis will expand its portfolio to include a consumer focused brand that specializes in products for the premium global wellness category,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “In addition to gaining an established wellness brand, Supreme Cannabis will acquire Blissco’s facility built to EU GMP standards that has been extracting oils for the Canadian market since August 2018.”


William SumnerWilliam SumnerJuly 10, 2019
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4min2070

It’s time for your Daily Hit of cannabis financial news for July 10, 2019.

On the Site

Canaccord Genuity Increases Its Long-Term Growth Outlook for U.S. Cannabis

Analysts with Canaccord Genuity (CG) have increased their 2019 to 2022 long-term growth outlook for the U.S. cannabis industry from 19% CAGR to 20%. According to the report, the modest increase was attributed primarily to increased expectations for Illinois’ adult-use market, as well as recent positive trends in the Nevada and Massachusetts market.

Gotham Green

Gotham Green Partners, with participation from Wicklow Capital, has agreed to an additional $30 million in an equity commitment to MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF), bringing the total financing commitment to $280 million. To date, Gotham Green Partners has funded $100 million of the total commitment.

KushCo

KushCo Holdings, Inc. (OTCQX: KSHB) announced its financial results for the third quarter ending on May 31, 2019, after the market closed on Tuesday. Net revenue was $41.5 million, representing a quarter-over-quarter increase of 17.9%.On a GAAP basis, gross profit was 17.8%. On a GAAP basis, the net loss was $10.6 million, up from $9.2 million in the same period of the previous year.

Extractors Celebrate Their 710 Holiday – Dab Day

Extractors get their own holiday every year. July 10, also known as 7/10 has been fondly named “Dab Day” within the cannabis community. Spelling “OIL” when flipped upside-down, 7/10 is the day when cannabis concentrates and extracts are celebrated, and sales data is showing that cannabis consumers are eagerly participating in the celebration.

In Other News

GrowGeneration Corp.

GrowGeneration Corp. (OTCQX: GRWG) announced today that former Home Depot CEO, Bob Nardelli, will join the company as a strategic advisor, providing advice to the company’s CEO and Board of Directors on matters related to supply chain, merchandise, branding, distribution, new product introductions, pricing and channel selection. “Bob is a globally recognized business visionary.  He comes with a strong track record of executive operations to generate accelerated, profitable growth and shareholder value across many industry verticals that are of great interest to us,” said GrowGeneration CEO Darren Lampert.

Veritas Pharma

Veritas Pharma Inc. (CSE: VRT) (OTC: VRTHF) (Frankfurt: 2VP) announced that it has sold its 50% interest in 3 Carbon Extractions to Yari Nieken for $375,000. According to interim CEO Peter McFadden, the sale of its interest is part of the company’s wider restructuring efforts. “The sale of our interest in 3 Carbon was taken as part of the restructuring of the Company with aims to consolidate and focus the Company through assets that directly contribute to the advancement of our mission. Currently neither our research nor our operations aligned with our interest in 3 Carbon,” McFadden said.


William SumnerWilliam SumnerJuly 10, 2019
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5min4460

Analysts with Canaccord Genuity (CG) have increased their 2019 to 2022 long-term growth outlook for the U.S. cannabis industry from 19% CAGR to 20%. According to the report, the modest increase was attributed primarily to increased expectations for Illinois’ adult-use market, as well as recent positive trends in the Nevada and Massachusetts market.

Illinois

Earlier this year, the Illinois legislature passed a law legalizing the use and sale of recreational cannabis. Although regulations for the state’s adult-use market have not yet been formed, CG is making a bet that existing operators in the medical market will be among the first to receive licenses and that recreational sales will begin sometime next year.

As a result, analysts are upping their estimates for the Illinois cannabis market from $277 million in 2020 to $488 million. By 2022, that figure is expected to grow to $987 million, up from CG’s initial estimate of $395 million. Acreage Holdings (ACRG.U), Harvest Health & Recreation (HARV) and MedMen (MMEN) are expected to benefit from this market expansion as they already have existing medical cannabis operations in Illinois.

Nevada

Growth estimates for the Nevada market have also been increased. Nevada cannabis sales are expected to reach $745 million in 2019 and grow to nearly $1 billion by 2022. Although there is pending litigation surrounding the state’s 2018 licensing rounds, analysts expect the matter to be resolved in over the next few months, which either will result in additional licenses being issued or a completely new series of licensing applications. This, in turn, will help drive the creation of more cannabis businesses.

Furthermore, several large-scale cultivation operations are expected to become operational in the short term, which should help alleviate supply issues and help drive down cannabis prices. CLS Holdings USA Inc. (CLSH), DionyMed, Green Growth Brands (GGB), Harvest Health, iAnthus, MedMen, Planet 13 (PLTH), Plus Products (PLUS) and 1933 Industries (TGIF) are expected to benefit the most from growth in the Nevada market as they have significant exposure there.

Massachusetts

While Massachusetts’ adult-use market has been incredibly slow in rolling out, CG analysts expect the market to experience accelerated growth in the coming months. In addition to natural growth, they note in the report that a number of operators have secured licenses for retail stores close to population centers, such as the Boston suburbs of Brookline and Newton, which should spur growth.

By the end of 2019, Massachusetts’ cannabis market size is expected to reach $600 million and grow to $1.2 billion by 2022. The companies that are expected to benefit the most from this growth are Acreage Holdings, Columbia Care Inc. (CCHW), DionyMed Brands Inc. (DYME), Harvest Health, iAnthus (IAN), KushCo Holdings Inc. (KSHB), Slang Worldwide Inc. (SLNG), TILT Holdings (TILT) and Trulieve Cannabis Corp. (TCNNF).

New York/New Jersey

Pushing down CG’s overall growth estimate for the cannabis industry were the markets in New York and New Jersey. Despite expectations, New York this year failed to pass legislation that either legalized adult-use cannabis or expanded its existing medical market. Given this legislative failure, it is unlikely that the state will attempt to pass another legalization measure for the next two years.

The most likely scenario is that adult-use cannabis will make it on to the 2020 ballot. Assuming the measure passes, which many expect that it would, New York’s adult-use cannabis market would come online by 2021 at the earliest. Because of this, CG has reduced their 2019 and 2020 New York estimates from $458 million and $604 million to $261 million and $265 million, respectively.

Similarly, New Jersey also failed to pass adult-use cannabis legislation this year, although the expansion of its medical cannabis program remains a possibility. Consequently, CG now estimates that 2019 and 2020 New Jersey medical sales will be approximately $123M and $227M, respectively. Should the state expand its medical program, those figures could change.


William SumnerWilliam SumnerJuly 9, 2019
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5min1720

It’s time for your Daily Hit of cannabis financial news for July 9, 2019.

On the Site

Caliva

Shawn “JAY-Z” Carter announced online today that he will enter into a multi-year partnership with Caliva as Chief Brand Strategist. The statement said that he will play a crucial role in driving creative direction, outreach efforts, and strategy for the brand. Caliva is one of the largest vertically integrated cannabis companies in California and has quickly become a market leader in cannabis consumer products in the state.

Radient Technologies

Cannabis and hemp extractor Radient Technologies Inc. (TSXV: RTI)(OTCQX: RDDTF) reported that the company lost C$18 million in its financial results for the fiscal year ending March 31, 2019.The company only reported revenues of C$214,060 for the year and expenses of C$18,319,167. The cost for that revenue was C$131,249. On a positive note, the company’s cash balance at the end of its fiscal year totaled C$31,752,852, representing an increase of $9,897,548 from March 31, 2018.

Executive Spotlight: Erin Gore, Founder & CEO of Garden Society

Erin Gore is founder and CEO of Garden Society, a California-based, cannabis-focused benefit corporation serving women in search of new, more holistic ways to rejuvenate from the rigors of their daily lives. Garden Society creates artisanal confections and sun-grown pre-rolls that connects biodynamic farming, sustainable ingredients and strain-specific cannabis in a variety of products.

Green Growth Brands

Cannabis retailer Green Growth Brands Inc. (CSE: GGB)(OTCQB: GGBXF) is acquiring MXY Holdings LLC also known as Moxie in an all-stock deal valued at $310 million. The deal is expected to close within six months. Moxie is located in three states at this time, California, Nevada, and Pennsylvania. Michigan is set to be the fourth state. The products are in 250 dispensaries, which is a retail relationship that GGB would like to leverage.  Moxie provides customers with high-quality recreational and medical cannabis products.

In Other News

Surterra Wellness

The medical cannabis provider Surterra Wellness announced today that it has appointed Fareed Khan as Chief Financial Officer (CFO), who will be responsible for corporate finance, investor relations, tax and shared services activities. Formerly serving as the CFO for the Kellogg Company, Khan helped drive the company’s corporate strategy to include revitalizing key brands through targeted investment and transforming the company’s portfolio through mergers and acquisitions. “Fareed’s track record of translating strategy into initiatives that drive growth for both private and public companies, across a number of industries, will propel our continued success,” said  Surterra CEO and Chairman  William “Beau” Wrigley, Jr.

KushCo Holdings

KushCo Holdings, Inc. (OTCQX: KSHB) announced today its financial results for the third quarter ending on May 31, 2019. Net revenue was $41.5 million, representing a quarter-over-quarter increase of 17.9%.On a GAAP basis, gross profit was 17.8%. On a GAAP basis, the net loss was $10.6 million, up from $9.2 million in the same period of the previous year. Cash on hand is approximately $12.2 million.  “We expect demand to increase for the Company’s core product offerings as the cannabis and hemp markets continue to expand and mature. Our customer base is gaining strength with the largest multi-state operators and Canadian LP’s starting to scale in existing markets, while also preparing for growth in new emerging geographies – including recently approved Illinois,” said KushCo Chairman and CEO Nick Kovacevich.


William SumnerWilliam SumnerJune 28, 2019
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3min2650

Vice Ventures announced today that it had closed its first $25 million fund. Vice Ventures is an investment management company that focuses on developing early-stage companies in what it calls the “vice space.” The company broadly defines vice as non-traditional businesses operating in industries such as cannabis, alcohol, sex-tech, CBD, esports, gambling, nicotine, psychedelics, and addiction recovery.

Although the United States is awash in investment opportunities, many venture capital firms often avoid companies in vice categories; mainly due to legal liability or self-imposed pledges to not make investments in controversial fields.

Hoping to challenge social stigmas, as well as capitalize on the lack of participation from traditional capital, Vice Ventures plans on using its funding to develop 100 early stage “vice” companies. Investments for the fund launch include the sparkling CBD water brand Recess, the canned Rose brand Bev, and the vaporizer Indose.

The company was founded by Catharine Dockery. Dockery has a background in venture capital and served as an early member of the digitally native vertical brands M&A team at Walmart (WMT), alongside Bonobos CEO Andy Dunn and Jet.com CEO Mark Lore. Dockery is also an early investor of Bev.

“It is essential that we approach these investments with a strong moral compass,” commented Dockery. “We care deeply about finding the highest quality operators in vice industries, and that includes a serious focus on harm reduction, informed consumption, and safe products. Black and white approaches like fund vice clauses completely ignore that many companies approach their work ethically and responsibly, leaving some exceptional operators struggling to get funding. Ignoring the role of vices in our society is not productive, and we believe progress can come from increased legitimacy of the best operators and an informed discussion on their impact.”

While Vice Ventures is still in its early stages, the company has already attracted several high profile investors, including Marc Andreessen and Bradley Tusk. In addition to investing, Tusk will also serve as an advisor to the fund.


William SumnerWilliam SumnerJune 27, 2019
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4min1290

It’s time for your Daily Hit of cannabis financial news for June 27, 2019.

On the Site

Green Growth Brands

After a trial period of selling the Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) CBD line called Seventh Sense Botanical Therapy products, Abercrombie & Fitch (A&F) has decided to carry the products in 160 stores. The expansion includes Seventh Sense’s CBD-infused body lotions, muscle balms, lip balms, and sugar scrubs, and is Green Growth Brands’ second major wholesale agreement since the passage of the Agriculture Act of 2018 in December 2018.

Executive Spotlight: Dr. Jared Helfant, Co-Founder and President of Sparx Cannabis

At Sparx, Dr. Helfant applies his expertise to oversee operations, branding, and marketing. With a proven track record of providing top-tier, customer-facing services and long-term strategic planning, his knowledge helps facilitate budget analysis, marketing strategies, and partner relationships.

In Other News

Surterra Wellness

The medical cannabis company Surterra Wellness announced that it had closed a $100 million Series D funding round. So far, the company has raised over $300 million in private capital. Proceeds from the funding will go towards expansion initiatives such as strategic acquisitions and infrastructure capital expenditures. Surterra also announced that it had expanded its board of directors to include Ed Brown, Surterra’s Executive Director, and its Executive of Operations, Kevin Fisher.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced today that it had acquired both Glendale Greenhouse and Phytotherapeutics Management Services, LLC. Glendale Greenhouse is a vertically integrated cannabis business operating a cultivation and processing facility with a 20,000 square foot production facility capable of producing 3,600 pounds of flower annually. Glendale also owns a 1,500 square-foot dispensary and the master lease on the 15,000 square-foot multi-tenant building where the dispensary is located. Phytotherapeutics Management Services, LLC operates under the license of Phytotherapeutics of Tucson, LLC. Once the transaction is closed, the Phytotherapeutics’ license would be transferred to Curaleaf and apply to a newly developed, flagship dispensary.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA:ARAH) has closed a $40.25 million over-subscribed public offering. Leading the offering was Mackie Research Capital Corporation and BMO Capital Markets, and included Canaccord Genuity Corp. “We are excited to close this financing and strengthen our balance sheet as we solidify and accelerate the expansion of our cannabis health and wellness ecosystem, in Canada, and globally,” said Aleafia Health CEO, Geoffrey Benic. “This is a key step enabling management to execute on its business plan and to drive operational results creating value for shareholders.”



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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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