Business Archives - Green Market Report

StaffStaffJuly 13, 2020
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4min90

0HHo, a leader in providing organic, sustainable, ecologically friendly CBD products, announced a partnership with  Omura to launch its first-ever flower product.

oHHo is a believer in providing superior hemp products for discerning customers, using only organic, sustainable, ecologically friendly, natural practices to grow exceptional hemp. Family grown in the sunny, fertile soils near the Green Mountain forest in NY state, every plant is hand sown and nurtured across 2 acres, carefully trimmed and slowly cured over several weeks; allowing each flower to develop rich levels of CBD and an abundance of terpenes.

Founded in 2018, Omura is the next generation heat-not-burn platform for the clean and effective consumption of whole flower cannabis and hemp CBD. The company’s flagship vaporizer, Omura Series 1, implements revolutionary technology which heats the cannabis flower through a wide range of temperatures, allowing the release of the cannabinoids at a higher efficiency. Omura has partnered with more than 9 cannabis brands in California and Nationwide, and is available in more than 17 retail locations.

“We’re thrilled to be partnering with Omura and producing the first oHHo flower which is high quality and a great complement to Omura’s innovative technology,” commented oHHo Founder, James Stephenson. “oHHo flower supports independent farmers and is crafted with the same dedication to sustainability as our line of CBD oils.” 

oHHo is very excited to bring their signature hemp flower strain Lifter to the Omura platform, starting at $30 for a flower stick pack and $69.99 for a starter pack.

Lifter Details  

  • 19% CBD
  • 0.001% THC

Prominent Minor cannabinoids:

  • CBG
  • CBC

Prominent Terpenes:

  • Myrcene
  • Caryophyllene
  • Pinene
  • Limonene
  • Humulene
  • Linalool

Lifter will be available online on Omura.com as well as for sale on weareohho.com to ship nationwide.

“oHHo is the perfect partner to continue to expand Omura and our hemp CBD offering as they expand the quality hemp CBD products they sell to consumers. We’ve got a lot of great activations planned with the oHHo team this summer so stay tuned to our social feeds to learn more,” the CEO of Omura, Mike Simpson co-founder and CEO of Omura, told Green Market Report.


StaffStaffJuly 13, 2020
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4min90

It’s time for your Daily Hit of cannabis financial news for July 13, 2020.

On the Site

Jushi

Jushi Holdings Inc. (OTCQX: JUSHF) announced $15.25 million in debt financing. To date, The company said it has received cash proceeds of $16.325 million and additional binding subscriptions, for a pro forma total issuance of $17.425 million of 10% senior secured notes and warrants to acquire a subordinate voting share. The company also received non-binding indications of interest for up to an additional $10 million of financing.

The money will be used for the cash portion of a previously announced Pennsylvania grower-processor permit holder transaction.  Last month the company said it was planning on buying Vireo Health’s (OTC:VREOF) Pennsylvania Medical Solutions in an effort to strengthen its position in the state’s market. Jushi was to pay Vireo $16.3 million in cash, a $3.8 million seller note, and assume a $17 million facility associated with a long-term lease obligation. The $37 million deal is expected to close by the end of August 20.

Colorado

According to the state Department of Revenue data, Colorado’s cannabis dispensaries sold almost $192.2 million worth of marijuana products in May. the state reported $42.9 million in medical marijuana sales and $149.1 million adult-use cannabis sales.

Sales shot up 23% over April, which is typically the biggest month for sales due to the 420 holiday. That’s an 11% increase over the all-time high of $173.2 million, set in August of 2019. Denver County alone accounted for $43.9 million in sales.

In Other News

In celebration of National Hemp Month, Uncle Bud’s, the Made in America, mass-market leader in Hemp and CBD, reveals its first campaign imagery with Jane Fonda, the brand’s newest ambassador. Shot by acclaimed photographer John Russo with styling by Cristina Ehrlich, who is named one of the top 25 most powerful stylists by The Hollywood Reporter, the campaign features two-time Academy Award-winning actress, author, activist, and fitness guru Jane Fonda, who was playfully captured with her go-to products from Uncle Bud’s Hemp & CBD.

With the partnership kicking off during the pandemic, Uncle Bud’s, an innovative leader in the Hemp and CBD space was inspired to get creative in working with Fonda to release the collaboration. In lieu of a traditional photoshoot, Fonda was announced as the brand’s newest ambassador in May by way of a lighthearted video created by Fonda and shared on her personal social media accounts. The video was a fun play on TikTok’s viral ‘pass the brush’ challenge, and the partnership has lived on social channels until now.


Debra BorchardtDebra BorchardtJuly 13, 2020
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3min520

According to the state Department of Revenue data, Colorado’s cannabis dispensaries sold almost $192.2 million worth of marijuana products in May. the state reported $42.9 million in medical marijuana sales and $149.1 million adult-use cannabis sales.

Sales shot up 23% over April, which is typically the biggest month for sales due to the 420 holiday. That’s an 11% increase over the all-time high of $173.2 million, set in August of 2019. Denver County alone accounted for $43.9 million in sales.

The slump for medical cannabis seemed to be over as the category staged a comeback in May setting a monthly record. Sales for medical marijuana had been bumping along at $26.6 million in February prior to COVID-19. Then the lockdowns began and the quarantine’s started causing lots of nervous anxiety for the population pushing sales to almost $43 million in May.

Marijuana sales for 2020 from January to May have already reached $779 million. At this rate, the state is sure to top last year’s sales of $1.7 billion.

Tax Data

So far the state has collected $167 million in tax revenue in 2020 from January to June. If the tax collection remains consistent, the state could end up collecting roughly $334 million in taxes for 2020. This would also top 2019’s tax collection of $302 million.

Colorado depends heavily on the tourist trade for the state’s income. Many of the ski resorts had ended their seasons early when the virus began. Now the crucial summer season is underway. The state has encouraged in-state travel this summer as a way to help boost its hospitality industry. The state is running ad campaigns saying that there would be no quarantine efforts against travelers.

While indoor bars are still closed, many cooped up tourists are ready to have some active outdoor fun. The state offers so much in the ways of outdoor sporting activities that can be done with social distancing that many are opting to head to Colorado for fun and to escape depressive pandemic locations. Plus, a trip to the dispensary can ease that anxiety and make for a much better vacation.


Debra BorchardtDebra BorchardtJuly 13, 2020
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3min410

 Jushi Holdings Inc. (OTCQX: JUSHF) announced $15.25 million in debt financing. To date, The company said it has received cash proceeds of $16.325 million and additional binding subscriptions, for a pro forma total issuance of $17.425 million of 10% senior secured notes and warrants to acquire a subordinate voting share. The company also received non-binding indications of interest for up to an additional $10 million of financing.

The money will be used for the cash portion of a previously announced Pennsylvania grower-processor permit holder transaction.  Last month the company said it was planning on buying Vireo Health’s (OTC:VREOF) Pennsylvania Medical Solutions in an effort to strengthen its position in the state’s market. Jushi was to pay Vireo $16.3 million in cash, a $3.8 million seller note, and assume a $17 million facility associated with a long-term lease obligation. The $37 million deal is expected to close by the end of August 20.

Debt Terms

The company said in a statement that all Notes would mature on January 15, 2023, and will bear interest of 10.0% per annum payable in cash quarterly. Jushi’s obligations under the Notes are secured by the assets of Jushi and certain of its subsidiaries (subject to certain exclusions) and are also guaranteed by certain subsidiaries of the Company and rank pari passu with the currently outstanding 10% senior secured notes of the Company.  In connection with the Offering, the purchasers of the Notes will also receive Warrants to acquire subordinate voting shares of the Company at 75% coverage with an expiry date of December 23, 2024, at an exercise price equal to US$1.25 (~CAD$1.70 as of 7/10/20).  The Warrants contain a cash-less exercise (net settlement) option available 12 months after issuance.

Jushi’s Chairman & CEO Jim Cacioppo subscribed for US$1.5 million of the Notes with other insiders and management subscribing for US$3.475 million of the Notes.


StaffStaffJuly 10, 2020
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5min2350

Four former senior staffers at High Times Magazine have partnered with Northwest Leaf Magazine to launch Northeast Leaf, a free monthly print magazine focused on the growing Cannabis communities and businesses in the eight states of the region. Making the move from High Times are Former Senior Cultivation Editor Dan Vinkovetsky (previously known as Danny Danko), Editor-In-Chief Michael Gianakos, Director of Technology Pete Thompson, and Advertising Executive Michael Czerhoniak.

Distribution is planned for September 2020, New York, New Jersey, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine will be represented. Northwest Leaf is a ten-year media brand that is currently publishing in five markets covering California, Oregon, Washington, Alaska, and Maryland.

Leaf Nation Founder & Publisher Wes Abney says, “With targeted media showing no signs of losing relevance, we’re elated for this opportunity to bring such an amazing stable of proven veterans into the Leaf family. The world needs honest Cannabis education and entertainment and it is our promise to stay true to the plant and the people as we grow the Leaf Nation into the global leader for Cannabis journalism.”

Dream Team

The team that Northeast leaf has assembled comes with a stellar pedigree. Gianakos was the former Editor-in-Chief of High Times from 2006-2020. He is the co-host and producer of Grow Bud Yourself! podcast. Danny “Danko” Vinkovetsky has written about cannabis for over 18 years at High Times and was most recently the Senior Cultivation Editor. He is the author of The Official High Times Field Guide to Marijuana Strains and Cannabis: A Beginners Guide to Growing Marijuana.

Vinkovetsky said, “With several popular magazines all having gone out of print, it makes perfect sense for us to continue our passion for the written word with such a respected, proven brand as The Leaf. And I love that it’s free to the public!”

Co-owner of The leaf and former syndicated radio personality, Mike Ricker, also shared in the merriment. “I’m elated to bring my 20 years of corporate broadcast experience to the next level as we expand our magazines, multimedia platforms, podcasts, and world-class events while building the most revered brand in the blooming Cannabis industry and beyond!” Ricker received the Billboard Award for Rock radio Personality of the Year in Seattle in 2008.

Rounding out the team, Thompson was the digital director at High Times from 2013-2014 and Black was a 21-year veteran of High Times. Black is the host of the podcast Blazin’ With Bobby Black and the Co-founder of High Way Travel. Czerhoniak was the advertising director at High Times for 15 years and is currently the Registration & Event Director for CHAMPS Trade shows.


Debra BorchardtDebra BorchardtJuly 10, 2020
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5min2160

Law 360 reported that the Massachusetts’ Cannabis Control Commission handed down hefty fines to three cannabis companies doing business in the state. 4Front Ventures Corp. (FFNTF) and Garden remedies were fined for using pesticides on plants, while Acreage Holdings Inc. (OTC:ACRGF) was fined for failing to disclose its relationship with two license holders.

4Front Ventures

4Front Ventures fined $350,000 settlement over pesticides used at its Georgetown, Massachusetts, facility. According to Law360, the settlement included a statement that 4Front Ventures admitted hydrogen peroxide, baking soda, and other pesticides were used at the facility, which is not approved for use on marijuana. The commission reportedly said that the company received test results that showed the plants contained a banned pesticide in June or July 2019 but didn’t alert the commission until August. Company CEO Leo Gontmakher said the company has made changes to ensure the violations do not happen again. “Patients were protected and no one was harmed,” Gontmakher said.

Garden Remedies

A $200,000 settlement was reached with cannabis company Garden Remedies over its Fitchburg, Massachusetts, facility. Like 4Front, Garden Remedies also noted in its settlement that it acknowledged using unapproved pesticides and altering its financial records to hide the purchase.

Company CEO Karen Munkacy said in a statement that the company has fired the employees involved in the falsified documents and ended its relationship with the vendor that provided the pesticides in question.

“While the product we used is permitted to be used in cannabis cultivation in many other states and is not an externally applied pesticide that puts anyone in danger, it is not permitted in Massachusetts and the situation was mishandled,” Munkacy said. “The company and I will continue to strive to ensure that ethical and regulatory violations never again occur.”

Acreage Holdings

Law360 also reported that The Botanist, an Acreage Holdings subsidiary agreed to pay a $250,000 fine for failing to disclose its parent company’s controlling relationship with two medical marijuana licensees. Massachusetts had passed a law when its program was established that limited license holders to just three so that there would be no monopolies and more companies would share in the industry.

Acreage Holdings came under fire for bragging that it had numerous licenses in the state. The commission’s investigation found that Acreage’s contracts with two affiliate medical marijuana treatment centers in the Bay State gave it a controlling relationship over them. Despite the ruling, the commission can approve two provisional retail licenses for The Botanist Inc.

“We want to express our thanks to the CCC for their professional approach as we worked through today’s resolution,” Acreage general counsel James Doherty said in a statement. “We’re looking forward to focusing all of our energies on what we do best, which is deliver great products to the citizens of Massachusetts.”

It seems the original agreements had been entered into while Massachusetts had a medical-only program and the regulations at the time were not so specific about control and ownership. The commission went on to clarify the rules about ownership limits at which time the commission said Acreage should have realized it had too many.

The commission did state that The Botanist “cooperated with the commission’s investigation into ownership and control interests and engaged in good-faith efforts to comply with the regulations after being notified of possible control issues.”

 


Video StaffVideo StaffJuly 10, 2020

3min3051

KushCo Holdings Inc. reported that its revenue had dropped by 46% as the company shifted gears to focus on larger, more financially stable customers. The compare reported revenue of $22 million, which missed analyst estimates and was far lower than what even the company had forecast it would report. Net losses increased to $13 million, but the company’s expenses fell by 50%. The drop in expenses was partly due to the pandemic. 

Jushi Holdings Inc.  reported that its Total revenue increased 43% sequentially to $8.6 million in the first quarter, while the company delivered a net loss for the quarter of $15.8 million. The net losses were down slightly from the fourth quarter’s net losses of $17 million. Jushi said that it expects to report total revenue of $15.0 million in the second quarter, an increase of 74% sequentially. Jushi said it is also reaffirming its 2021 revenue guidance of $200 to $250 million.

A story from the Cannabis Law Report broke the news that the SEC has told High Times to stop selling its shares until it files its annual report. The two year long offering was recently extended again to September. High Times hasn’t reported any financial information since June 2019. The company requested a delay due to COVID-19.

It seems that the day that convenience stores could be selling cannabis is getting closer as Fire & Flower announced the openings of its first two cannabis retail stores adjacent to Circle K locations in the province of Alberta. Fire & Flower’s plan is that it will gain from the high traffic at these Circle K locations that will be convenient for cannabis customers. 

Cannabis tissue culture company Conception Nurseries has raised $15 million in a Series A offering.

And finally, more psilocybin companies have launched this week. CannaGlobal Wellness is a combination of CannaGlobal, Sansero Life Sciences, and Rise Wellness. The new company said it will focus on psilocybin and other natural compounds to promote emotional, mental, and physical wellness. Lorne Gertner the founder of Tokyo Smoke islisted as the Chairman. CEO Susan Chapelle has launched Havn Life which will be developing a range of standardized, quality-controlled psilocybin products to be used by researchers.


Noemi GonzalesNoemi GonzalesJuly 10, 2020
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5min840

It’s Just a Plant: A Children’s Story about Marijuanaby Ricardo Cortes

For many parents, this topic is a looming monster that needs to be slain but is too often hidden from.

Talking to kids about Cannabis use is scary but having books like “It’s Just a Plant” can make that conversation far less anxiety-inducing as it helps the parents to be more prepared for that heavy discussion.

 

If you’re a parent or might be one then you can prepare yourself by diving into this book a bit. Dig in and arm yourself against the misinformation on cannabis with this book.

-Topic Focus-

As we see a growing level of acceptance for cannabis in modern society we must still combat the remaining dredges of social stigma as we face having those particular conversations with our children regarding the truth about marijuana use.

“It’s Just a Plant” contributes to diffusing this stigma by telling a simple story that is relatable for kids while also conveying information to children in a digestible fashion.

The story consists of the tale of a young girl named Jackie that meets farmers and doctors who proceed to give her a unique perspective on marijuana and how they use it to positively impact the lives of others.

About the Author

Are you familiar with the best seller “Go the F*ck to Sleep”? Author of “It’s Just a Plant” Ricardo Cortes is the illustrator behind that wonderful book as well as being the writer behind the book we are discussing here today.

Author Ricardo Cortes has also written books and is passionate about topics such as marijuana use, jury duty, coffee, coca-cola, and more.

If you’re interested in exploring the various projects by Ricardo Cortes you can explore his content at:

www.Rmcortes.com

-Reading Experience-

You can quickly tell that this book was written with children in mind by someone who genuinely cares about helping to further destroy the stigma against marijuana through education as opposed to indoctrination.

An adult reader has much to glean from the book in regards to how one can address this conversation with their kids in a comfortable fashion.

The writing level is clearly intended for kids which works just fine for it’s intended purpose. The balance between enjoyable telling a story and solid information on the topic is well done.

-Summary-

Again, this book is more than just a nice story. This bok is a tool for parents to use as a comfortable path to begin educating their kids regarding cannabis use. This book would be ideal for teachers and educators who might have to face this conversation as well.

Jackie’s story does a great job of humanizing people involved in the world of Cannabis as more than just stereotypical caricatures, which is much needed in the marijuana community.

Prepare yourself for this conversation by getting your copy of “It’s  Just a Plant: A Children’s Story about Marijuana” at the link below:

https://www.amazon.com/Its-Just-Plant-Childrens-Marijuana/dp/1617758000/ref=sr_1_1?dchild=1&keywords=It%27s+just+a+plant&qid=1593028102&sr=8-1


StaffStaffJuly 9, 2020
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6min1070

It’s time for your Daily Hit of cannabis financial news for July 9, 2020. 

On the Site 

High Times 

The Cannabis Law report has confirmed from HighTimes Holding Corp. lawyer  Stephen Weiss and Megan Penick of L.A. based Michelman Robinson LLP that the Securities & Exchange Commission (SEC) has halted sales of shares in the company. The story as reported by Teri Buhl states that the reason the sales were stopped is the company hasn’t filed its annual report. 

The last time the company filed official annual earnings was June 2019. High Times had told investors it would get updated financial information on June 12, but that did not happen. The company has extended the offering of shares for two years, initially telling investors that it would list its shares on the NASDAQ. Then it lowered those expectations to the Over-The-Counter Marketplace. Still, it hasn’t happened. 

What has happened is that the company continually announces acquisitions and tells investors how much money the new acquisition will bring in. Then months later, the deal typically quietly goes away. Sometimes announced in an SEC filing and sometimes just through a press release. In some cases, the acquisitions just never close and stay in a suspended state waiting for the shares to go public as payment for the acquisition. 

Higher Ground 

Higher Ground media and Seattle-based cannabis company Saints Joints have created The Ballot Box, a high-end box of cannabis joints designed to smash stoner stereotypes by registering people to vote. In addition to five premium pre-rolls, the Ballot Box contains a QR code that immediately registers voters, a mini version of the Bill of Rights, and non-partisan information about voting and elections. 

“The cliche, obviously, is that pot smokers are lazy and couch-locked, when – in fact – we’re as active and involved as any community,” notes Higher Ground Editor-in-Chief Michael A. Stusser. “With the Ballot Box, we’re using a new platform as an entry point to spark engagement, and register new voters.” 

In Other News 

Marijuana Policy Project, the largest organization in the U.S. focused solely on enacting humane cannabis laws, is launching its “Reimagining Justice” Initiative on July 15. The event will take a deeper look at Race, Cannabis and Policing in America with an afternoon of thoughtful discussion amongst America’s leading civil rights and cannabis activists, including former NBA star Al Harrington and Canadian cannabis entrepreneurs and Houseplant co-founders, Seth Rogen and Evan Goldberg. 

“As our country grapples with how to address criminal justice and policing reform, it is of the utmost importance to include cannabis legalization in the discussion. For decades, cannabis criminalization has disproportionately harmed Black and Brown lives and has served as a pretext for countless police stops, some of which end with fatality. While cannabis legalization is not the cure-all to end oppressive policing, it is necessary and would provide an opportunity to shift policing away from the failed drug war and towards community healing,” said Steve Hawkins, Executive Director of the Marijuana Policy Project. 


StaffStaffJuly 9, 2020
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4min1730

Higher Ground media and Seattle-based cannabis company Saints Joints have created The Ballot Box, a high-end box of cannabis joints designed to smash stoner stereotypes by registering people to vote. In addition to five premium pre-rolls, the Ballot Box contains a QR code that immediately registers voters, a mini version of the Bill of Rights, and non-partisan information about voting and elections.

“The cliche, obviously, is that pot smokers are lazy and couch-locked, when – in fact – we’re as active and involved as any community,” notes Higher Ground Editor-in-Chief Michael A. Stusser. “With the Ballot Box, we’re using a new platform as an entry point to spark engagement, and register new voters.”

The Saints Joints/Higher Ground Ballot Boxes was launched on July 4th and will be available in California, Washington, and Oklahoma. The QR code directs consumers to the Cannabis Voter Project – and immediately registers individuals to vote. The nonprofit and non-partisan Cannabis Voter Project is focused on educating, registering, and turning out voters. HeadCount has registered half a million voters since 2004 at concerts and events.

Higher Ground TV is an online cannabis media company not unlike The Daily Show. It has been using comedy driven videos and parodies to elevate the dialogue on cannabis culture, including Comedians in Cars Smoking Cannabis, and Profiles in Legal Cannabis.

Saints Joints is known for its hard-cased luxury boxes highlighted by artists such as the Bay Area’s Jeremy Fish in their Artist’s Series packs, a Tattoo Art Series featuring Jimbo Phillips, and a Limited Edition Pride Pack with proceeds benefiting Equal Rights organizations. Each specialty box is a limited edition similar to album covers and creating a rock n’roll collect-‘em-all incentive.

“We see ourselves as leaders not only in the arena of legal cannabis but as members of the mainstream community,” said Lawrence Perrigo, founder of Saints. “The collaboration with Higher Ground is our latest joint effort to raise awareness, and show how cannabis brands – and consumers – are doing more than getting high. We’re also highly engaged in the democratic process.”

“We thought it was important to include the Bill of Rights in our Ballot Box,” said Stusser, “because these individual rights weren’t originally included in the Constitution. Like the legalization of marijuana, the people had to push the government to allow it.” The Bill of Rights, of course, includes the first 10 amendments in the Constitution, including freedom of speech, religion and the press, the right to assemble, States rights, and due process.

“These amendments – like cannabis – were controversial at first,” notes Saint’s Perrigo. “Today, over 70% of the population supports legalization – but we have a long way to go at the national level. So adding the Bill of Rights is a nod to weed smokers that our democracy is still evolving – and we need to be involved to make lasting change.”

 



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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