Business Archives - Green Market Report

Debra BorchardtDebra BorchardtJanuary 19, 2021
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6min20

Cannabis software company Blackbird and payment processor company AeroPay announced a strategic partnership to bring cashless payments to cannabis businesses for online ordering. Blackbird was sold in November 2020 by its parent Tilt Holdings (OTC: TLLTF).  Tilt agreed to sell Yaris Acquisition, LLC better known as Blackbird to Slam Dunk, LLC, a Nevada limited liability corporation controlled by Tim Conder, TILT’s Chief Operating Officer and a member of the board of directors of the company. The company said the total valuation of the deal was $15 million and selling Blackbird resulted in a cut of $3 million in expenses quarterly.

The partnership includes the integration of AeroPay’s payments platform into Blackbird’s white-labeled dispensary menus and the BlackbirdGo cannabis marketplace. The two companies said they also have plans to bring greater efficiencies to other parts of the cannabis supply chain such as physical retail and B2B.

“Cash payments have dominated the cannabis retail consumer experience until now,” said Tim Conder, CEO & Co-Founder of Blackbird. “As licensed cannabis operators, we know the benefits of moving toward cashless payments but also understand the challenges with banking as a cannabis business. Our partnership with AeroPay and the integration of our platforms allows our retail partners and their customers to easily accept digital payments and remove the hurdles associated with being a cash-only business. Additionally, AeroPay’s banking relationships will help eliminate barriers for our retail partners.”

Through the integration, cannabis patients and customers using Blackbird will be able to pre-pay online at the time of check-out for delivery or curbside pick-up orders. Payments made with AeroPay will be facilitated through a secure bank-to-bank transfer between the patient or customer and the business.

AeroPay is a financial technology company providing alternative payment processing solutions to state-legal cannabis businesses.  AeroPay has been approved to work in every state where cannabis businesses can legally operate as well as Washington D.C. AeroPay’s compliant solution offers a safe, simple, and streamlined way for patients or customers to pay their favorite cannabis businesses.

“Our approach has always been to create a better payment experience for both businesses and their customers,” said Daniel Muller, CEO & Founder of AeroPay. “Blackbird is a premier end-to-end logistics and delivery company in the cannabis space and our partnership allows us to do just that for the cannabis industry.”

Dispensary patients and customers ordering through a Blackbird white-labeled menu or the BlackbirdGo marketplace will have the option to pay with AeroPay. For first time AeroPay users, the sign-up process is two easy steps and happens directly on the menu at the time of check-out — customers simply create an AeroPay account and link their bank. For repeat users, payments can be completed with a single click.

While the focus of this integration with Blackbird’s menus is to improve the retail and consumer experience, both Blackbird and AeroPay also provide B2B solutions for the cannabis industry. The companies have plans to streamline the cannabis experience in other parts of the supply chain and lower the volume of cash by implementing digital payments.

“We’re excited about the future of our partnership with AeroPay as both companies have the ability to service the entire value chain,” said Conder. “This is only the beginning of a long-term relationship that has the opportunity to change the way cannabis businesses operate.”

“Payments have been especially inconvenient for cannabis businesses and we are thrilled to work with the team at Blackbird to create a seamless cannabis shopping experience that is safer, faster, and cashless,” said Muller. “Ultimately, we want to give cannabis businesses the ability to operate in the same manner as any other business would.”


Debra BorchardtDebra BorchardtJanuary 19, 2021
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10min180

As states report cannabis sales numbers for 2020, record highs continue across the country. It’s become a billion-dollar business for several states, blowing out levels that states had estimated when originally planning legalization.

Billion Dollar Club

Colorado

The Colorado Department of Revenue reported that cannabis sales in the state passed $2 billion in sales from January – November 2020. Plus, December hasn’t even been added to the total sales figures. Despite the pandemic, the state has continued to break records. Steve Lopez, CEO, The Green Solution (Colorado) said, “With over $2 billion in sales from January through November 2020, we’re continuing to see Colorado break sales records through the pandemic. We debuted over 50 self-serve kiosks at our 21 retail locations across the state last year, and credit high sales to the innovation and creativity in our industry, as well as the measures we’ve implemented to prioritize staff and customer safety.”

Massachusetts

Adult-use cannabis retailers in Massachusetts have now tallied more than $1 billion in gross sales, according to information reported in the state’s mandatory seed-to-sale tracking system, the Cannabis Control Commission. At the close of business on October 30,  the aggregate data reported in Metrc by 80 retailers reached $1,000,521,905. What makes this even more impressive is that the state program is basically only two years old.

“This sales milestone represents licensees’ ability to successfully support a safe, accessible, and effective adult-use industry, and I am pleased the resulting tax benefits will have a significant impact on communities throughout the Commonwealth,” Commission Chairman Steven J. Hoffman said. “These numbers also speak to Commission licensing and enforcement staff working around the clock to make sure these businesses and their products comply with all of our regulations, especially the health and safety provisions. Each year, as this marketplace matures, the public will continue to see progress on state mandates and Commission objectives, including our commitment to equity, and the steps we have taken in 2020 are evidence of that.”

California

The California Department of Tax and Fee Administration has shown that the state is on track to bring in a billion dollars in cannabis tax revenue in 2020. So far, a total of $778.4 million was generated from marijuana taxes in the first three quarters of the year, including $306.8 million in the third quarter. As of August 11, 2020, California’s cannabis excise tax generated $101.8 million in revenue reported on the 2nd Quarter 2020 returns due by July 31, 2020, and the cultivation tax generated $22.9 million. Since January 2018, total program revenue to date is $1.45 billion, which includes $709.9 million in cannabis excise tax, $173.7 million in cultivation tax, and $563.6 million in sales tax.

Oregon

The Oregon Liquor Control Commission (OLCC) recently released data noting that total cannabis sales in the state increased from $795 million in 2019 to $1,110,520,723 in 2020, a new record-breaking year for the state. Jeff Yapp, CEO, Golden Leaf Holdings, which operates Chalice Farms dispensaries (Oregon) said, “2020 was a tough year for many small business owners, however, it was a record-breaking year for cannabis and Golden Leaf Holdings through Chalice Farms as more people turned to cannabis as an alternative form of health and wellness. With so many states deeming cannabis essential businesses, it began to change the conversation in a positive direction in the industry. Our customers dealing with the stress, anxiety, and pain caused by the many challenges of COVID-19 and the impacts it is having on their lives, are seeing positive results from the responsible use of cannabis products.”

Washington

Washington State is another one of the more mature states for cannabis sales. Its adult-use cannabis market generated $1.1 billion in fiscal 2019 – up 8% over 2018. The state’s fiscal year 2019 is from July 1, 2019, through June 30, 2020.

Almost Billion Club

Nevada

One of the cities impacted most dramatically over the past year is Las Vegas, which is incredibly reliant on tourism and hospitality. While Nevada’s cannabis industry continues to see increases in sales, the market has consistently brought in much-needed tax revenue to the state and has maintained jobs for more than 8,000 workers. The state’s fiscal year 2020 delivered $684 million in taxable cannabis sales. Three months into the fiscal year 2021, the state has reported sales of $234 million. This compares to $178 million for the same period in the previous fiscal year.

Matt Janz, director of THC marketing, The Source+ (Nevada) said, “We’ve seen our industry grow from illegal to essential. Nevada not only saw an increase in overall cannabis sales in 2020 but maintained much-needed jobs for thousands of people across a state almost entirely reliant on hospitality and tourism. We’re looking forward to continuing to provide wellness in our state as an essential business and provide substantial tax revenue to Nevada in these challenging times.”

Michigan

Michigan reported that in 2020 combined cannabis sales were $984.6 million, with adult-use leading the way with sales of $510.7 million, while medical sales contributed $474 million. The adult-use market noted that flower and trim were most desirable and took 55% of the market. Concentrates and vape accounted for 25%, with edibles falling in fourth place at 19% of the market. The decline in the price of flower was welcome with prices beginning the year at over $8000 a pound in January but ended in December at $5614 per pound.

Illinois

Another relative newcomer is Illinois. That state reported that its 2020 adult-use and medical cannabis sales were reported to be $669 million. A spokesperson from Green Thumb Industries said, “Another record-breaking month of adult-use cannabis sales in Illinois is not surprising. Cannabis is a massive new engine in the American economy and there is a tidal wave of demand for cannabis products. There is mass acceptance of the U.S. cannabis industry by consumers. There are very few issues that have that kind of universal acceptance.  We look forward to welcoming a new generation of entrepreneurs when the social equity licenses are awarded.”


StaffStaffJanuary 18, 2021
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14min1001

Editors Note: This is a guest post

How Hemp Helps You During the Winter

Discover the benefits of taking hemp during the winter and how it benefits our body. 

Hemp- A Helping Hand for the Cold Winters

Winter is here and during the winter season we barely get any long sunny days, it is rather filled with long cold nights. All we want to do is lay in bed under our comfy blankets and just be lazy, wishing someone would bring us a cup of hot cocoa with marshmallow toppings.

Moreover, the gloominess outside from the pale white skies makes us depressed and we feel a lack of motivation to go by our daily routine. It is that time of the year where due to dry weather, the sale of moisturizers, lip balms, and other such products increase and become our basic need. If you think winter completely brings your spirits down then we have the perfect solution for you – Hemp.

Weed or Hemp can help you in many ways by giving the oomph you need to get yourself going. Our body constantly keeps reminding us that the season has changed by developing dry skin, increased body pains, fatigue, and many more such issues. Don’t worry, Hemp is your knight in shining armor.

Let’s Talk About the Skin During Winter

Do you ever look at your skin during winter and feel terrified of how ashy and scaly it becomes? You can almost feel like a desert lizard if you touch it. You probably have to apply lotion a million times to keep it moisturized but even that’s a problem because lotion works differently on every individual.

So while you are struggling to battle this dryness, if you want to save some skin cells, you better get yourself some CBD oil or any CBO-infused topical creams. Your skin remains hydrated and this is because hemp molecules are extremely tiny and can easily penetrate through the skin, unlike other creams.

If you are worried about how to purchase these products, well this pandemic has made everything virtual and you can easily buy weed for sale online. The solution to all your winter problems will now be at your doorstep with just a few clicks and you wouldn’t even have to get up from your seat.

Regulate Your Mood

Sometimes all we need to feel good is a beacon of light which is pretty much what’s missing during the winter. The dark and doomed days may lead you into seasonal depression. It is nothing to be ashamed of, we all have our darker days when we need some sunshine.

Yet what happens in the winter when there is no sunshine? Rest easy as hemp comes to you as a symbol of hope. Hemp helps relieve stress and makes you feel relaxed. It also acts as an antidepressant and has worked for many people. So you can go ahead and give it a shot.

The light may be gone for many days during the winter but that does not necessarily mean it should be the same in your personal lives. Take some CBD/Hemp and observe the difference. It is time to make winter a wonderland.

Are Your Muscles a Little Sore?

Just like us, our muscles too can become lazy during the winter. You may be a crazy sport junky and only during the winter can you go skiing on the snow and ice skating (even though nowadays you can do that in summers also) these things altogether make the winter chic.

However, after a day of fun, your muscles may give up on you as soon as you hit the bed. You can even feel fatigued the next day and may have some leg cramps and increased pain and this is all due to winter. The season adds to these problems.

A quick way of recovering would be using hemp oil. It will help you reduce the soreness in your muscles and is a very handy tool to keep. If you are sitting in front of a bonfire, enjoying some music and wine yet your muscles hurt, just apply some CBD oil and let it work its magic.

Need a little Hike up of Energy?

As the sun goes down during the winter, so does our energy. Have you ever noticed how hard it is to wake up on a winter morning compared to a morning in the summer? We suddenly feel like an empty canister and have this craving for energy. Hence we start losing motivation too.

A good cup of coffee should help that situation; yet if you drink too much coffee you can end up being immune to its effects, plus coffee has additional backlashes like anxiety and restlessness. We don’t want that added to our list of winter problems. One might think of taking prolonged naps and yet not feel sufficiently energized.

So how do we overcome this? You can use some hemp. They are said to give a rush of energy by consolidating the cells in your body. Not only that, it keeps you awake which means that you can carry on the regular activities you do during the day without feeling tired or losing motivation. Now that by itself is a plus point.

Want to Quit Smoking?

If you are a smoker then winter is a very difficult time for you. due to seasonal depression, you may be smoking several packs of cigarettes every day. This is not good for health and especially if you end up catching a cold. You may end up having an asthma attack.

If you are looking to quit smoking, you can just start using hemp. Smoking is a health hazard as it can cause various diseases like lung cancer, heart disease, liver cancer, and many more. Hemp will fulfill your nicotine cravings and even though it may not give you the same feeling as smoking a hot cigarette during winter, it will help you get rid of that habit.

This is an advantage for your health and everyone around you is being affected by passive smoking.

 Facing Anxiety Problems?

Winter is a perfect excuse for people to stay at home and completely stop interacting with people. As the darkness of winter hits, for some odd reasons, it amplifies every feeling that we have and among them is anxiety.

Anxiety is like sweet poison. You will not be able to do anything if you have anxiety. You won’t be able to work,  sleep, or eat, all you will be able to do is feel agitated and twitchy.

Using CBD oil will help ease these anxieties. You will feel way better and able to cope up with the world around you regardless of what season it is. That’s the kind of incentive we all need.

Having Chronic Pain?

An annoying truth about winter is that all your chronic pains return like the dead walkers of The game of thrones, to torment you. The cold breeze of winter may find shelter in your joints and yes it is very hard to sleep or even function when you are experiencing continuous pain in your body.

Even though you are using many remedies to try and fix this problem, none of them seem to work. Start using CBD oil regularly, this will reduce the pain in your joints and muscles and help make you feel 100 percent better again.

You can get right up and do your daily chores and make things a little less painful for yourself. Feel the joy of winter and holidays more.

 The Big Question – What is Hemp?

Even after reading all these amazing benefits of hemp, there might still be a big question in your mind. What exactly is hemp? Hemp is typically a variety of the cannabis plant which is dioecious in nature. This simply means it can have both male and female plants.

Hemp has been used for many different purposes for a very long time such as fiber for making clothes, ropes, furnishing, and other building materials. Apart from that hemp can be taken as oils and topical creams for health benefits.

You may wonder if hemp has any tetrahydrocannabinol more commonly known as THC which is very strong and intoxicating. The amount of THC present in hemp is very little which makes it a good therapeutic agent and a popular one these days.

So Now That You Are Aware of the Benefits, Don’t Delay the Purchase

Make winter your favorite season again by having some hemp by your side. Winter is a blessing, and the holidays bring everyone back together. You do not want to be spending such times sulking and in pain. Grab your favorite hemp product and make this winter memorable.

Don’t just get it for yourself, get some extra ones for your family too but make sure to keep the kids away.

Have a wonderful winter!

 


StaffStaffJanuary 15, 2021
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3min1560

The U.S. Department of Agriculture (USDA) today announced the final rule regulating the production of hemp in the United States. The final rule incorporates modifications to regulations established under the interim final rule (IFR) published in October 2019. The modifications are based on public comments following the publication of the IFR and lessons learned during the 2020 growing season. The final rule is available for viewing in the Federal Register and will be effective on March 22, 2021.

“With the publication of this final rule, USDA brings to a close a full and transparent rule-making process that started with a hemp listening session in March 2019,” said USDA Marketing and Regulatory Programs Under Secretary Greg Ibach. “USDA staff have taken the information you have provided through three comment periods and from your experiences over a growing season to develop regulations that meet Congressional intent while providing a fair, consistent, science-based process for states, tribes, and individual producers. USDA staff will continue to conduct education and outreach to help industry achieve compliance with the requirements.”

Shawn Hauser, partner and chair of the Hemp and Cannabinoids Department at Vicente Sederberg LLP said, “The transition from prohibition to a legal and regulated system takes time, and USDA’s final rule is a historic step forward for hemp in the U.S.  Many are justifiably disappointed by the DEA’s continued (and in some ways expanded) role in the agricultural hemp program, but there were also a number of positive improvements. The expanded harvest window, alternative disposal/remediation authorizations, and increase of the standard of negligence to 1% will be critical to building a successful hemp industry, and they indicate the USDA gave meaningful consideration to stakeholder’s comments. We are undoubtedly making progress, and we will continue to work with regulators and through Congress to perfect the regulatory structure for hemp.”

Key provisions of the final rule include licensing requirements; recordkeeping requirements for maintaining information about the land where hemp is produced; procedures for testing the THC concentration levels for hemp; procedures for disposing of non-compliant plants; compliance provisions; and procedures for handling violations.


Debra BorchardtDebra BorchardtJanuary 15, 2021
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7min780

TPCO Holding Corp. (OTCQX: SBVCF, SBVQF) completed its qualifying transaction to acquire CMG Partners Inc. better known as Caliva and Left Coast Ventures, Inc. with global icon, entrepreneur and MONOGRAM founder, Shawn “JAY-Z” Carter and entertainment powerhouse Roc Nation. TPCO said it expects pro forma revenues of $334 million in 2021.

Shawn “JAY-Z” Carter, The Parent Company’s Chief Visionary Officer, said, “This is an incredible time for this industry. The end of cannabis prohibition is here, and The Parent Company will lead the charge to a more expansive and inclusive cannabis industry. We are paving a path forward for a legacy rooted in dignity, justice, care, and consistency. The brands we build will redefine growth, social impact, and social equity. This is our time. I’m proud and excited to lead the vision of The Parent Company.”

Jay-Z recently launched his premium cannabis line called Monogram, whose flower is cultivated at The Parent Company’s flagship growing facility in San Jose, California, using a batch-by-batch approach. The company said that each plant receives personalized attention from the company’s expert growers, who grade and select every flower by hand. The team is led by Cultivation Ambassador DeAndre Watson, who has been working with the plant for over 25 years. The packaging is matt black and looks as if it’s inspired by a high-end cosmetics line.

Common Shares and Warrants are now trading on the NEO Exchange under the symbols “GRAM.U” and “GRAM.WT.U”, respectively, and remain trading on the OTCQX under the symbols “SBVCF” and “SBVQF,” respectively. Beginning January 19, 2021, the OTCQX symbol “SBVCF” will change to “GRAMF.”

Michael Auerbach, Chairman of SCAC and The Parent Company, added, “This is an industry-defining moment. With its experienced management team, advanced infrastructure, industry-leading operational efficiencies, proven strategy of brands, and cultural influence, The Parent Company will help shape the future of cannabis in the U.S. and beyond as well as begin to repair and rectify the wrongs of prohibition.”

The Parent Company listed the following investment highlights in a company statement:

 Progressive Operational Platform –

  • TPCO owns its supply chain, enabling the company to leverage scale and profitably produce and distribute a broad portfolio of cannabis products for every consumer segment. The vertically integrated, omnichannel strategy maximizes gross profit and EBITDA margins, scales consumer reach, generates proprietary consumer data, and beats the illicit market on price, quality, and convenience.
  • Omnichannel Platform – TPCO’s scalable omnichannel business offers customers convenient express or scheduled delivery, and in-store or curbside pick-up, all through a single user-centric e-commerce platform, Caliva.com. This omnichannel e-commerce platform, offering both a robust portfolio of high-margin owned brands as well as third-party brands, allows The Parent Company to rapidly scale its direct-to-consumer reach to all Californians. Coupled with its powerful sourcing and low-cost manufacturing capabilities, this omnichannel platform offers consumers across California compelling pricing and convenience while remaining profitable.
  • Exclusive Brand Partnerships and Leading Cultural Influence – Brand strategy and marketing playbook led by Shawn “JAY-Z” Carter and Roc Nation, leveraging unparalleled cultural influence of leading artists and entertainers to build the most valuable and scalable brand portfolio in cannabis. JAY-Z officially launched the first his flagship cannabis line, MONOGRAM, on December 10, 2020.
  • Unrivaled Consumer Reach  TPCO currently reaches over 50% of consumers in California through Caliva.com, its existing direct-to-consumer platform. The Parent Company will have the greatest consumer reach of any cannabis company in California, reaching 75% of consumers in the state by the end of 2021 and almost 90% by the end of 2022 through scaling of its omnichannel platform.
  • Strong Balance Sheet –The Parent Company is the most well-capitalized cannabis company in the United States and will pursue an aggressive M&A strategy to accelerate growth, market share gains, and profitability.
  • Industry-Defining Social Impact  Led by Shawn “JAY-Z” Carter, The Parent Company will fund The Parent Company Social Equity Ventures with an initial target of $10 million and an annual contribution of at least 2% of its net income to invest in minority-owned and Black-owned cannabis businesses and contribute to the effort to rectify the wrongs of prohibition through diversifying both the business leadership and workforce of the cannabis industry. Beyond investing, the fund will also support organizations and programs focused on diversifying the cannabis workforce through job fairs and placement, industry training and education, as well as Social Equity application support.

Steve Allan, The Parent Company’s CEO, said, “With both the most comprehensive vertically integrated platform and brand portfolio in California, and the healthiest balance sheet in cannabis, we will reshape the industry in the world’s largest cannabis economy.”


StaffStaffJanuary 15, 2021
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9min600

The vape technology company The Blinc Group, Inc. has successfully raised a pre-Series A bridge financing of $1.5 million led by Equitas Partners Fund, WGD Capital, LP, and 7thirty Capital. The company said that the money will be used towards expanding Blinc’s sales team, opening an office in Toronto, as well as expanding the team in Shenzhen, and the research and developing of new innovative materials and vape technologies.

“The Blinc Group puts quality and safety at the forefront of its vape technology and since day one, that dedication to the highest standards has brought us the endorsement of institutional investors focused on the cannabis industry. Our team navigated 2019’s vape crisis helping set standards and advise regulators on testing and compliance, and last year the company saw our best quarter yet amid the COVID-19 pandemic as the industry learned the benefits of safety and traceability. We have shown that we are a resilient company that puts consumers first, which has made all the difference,” said Arnaud Dumas de Rauly, CEO and co-founder of the Blinc Group.

The Blinc Group managed to weather the storm of the 2019 vape crisis and persevered through the COVID pandemic. In 2020, the company said that it more than tripled its orders with over 330% year-over-year growth. The company attributed its success to the emphasis it placed on safety, compliance throughout the vape crisis of 2019 and the Coronavirus pandemic. The company has won clients from around the globe including Canadian heavyweights because of its unique ability to meet Health Canada’s rigorous standards, a success unmatched by most other vape companies. In September 2020, The Blinc Group joined the ASTM International, formerly known as the American Society for Testing and Materials, Committee D37 on Cannabis.

“We began underwriting our initial investment in Blinc near the onset of the so-called vape crisis in 2019 and it became quickly apparent that the team’s experience within the vape technology space and its focus on quality, traceability and customer service would see them through and enable them to emerge as a market leader. While others turned more attention towards safer vaping products after the crisis, safety had always been a major pillar of Blinc’s products and part of its DNA, which attracted us as investors and gave us confidence that they would be able to substantially expand their business into Canada and elsewhere,” said Andi Goldman, Managing Member and co-founder of the Equitas Partners Fund. The Blinc Group also received additional funding from the Arcview Collective Fund and the Panther Opportunity Fund.

The Blinc Group has also stayed ahead of the industry in part due to its strong ties in Shenzhen, China, and employing a manufacturing line dedicated to their products, which helped eliminate hiccups in the supply chain. The company’s China-based team is the backbone of Blinc’s “Powered By Blinc” offering, a certified product manufactured to the highest international standards of safety and compliance with complete quality control and full traceability of the product, process, and each sub-component across the entire supply chain.

“We have watched the Blinc team over the past few years as they have grown their business and dedicated their focus to safety and traceablity within the vape hardware sector.  Blinc’s reputation for putting these important factors first has secured customer wins with some of the leading cannabis operators in North America,” said Michael Mitgang, Managing Director and Co- Founder of the WGD Opportunity Fund.

In 2020, The Blinc Group worked closely with Colorado’s Science & Policy Committee on the adoption of new testing standards for the emissions from vape devices. This kind of work is just one example of the dedication that the Blinc Group team puts on aligning the cannabis industry with best practices for the safest products possible.

“The vape category is one of the primary revenue drivers in every market and satisfies the demands of some of the most committed cannabis consumers. Providing high-quality products is a must for any brand looking to win and retain loyal shoppers,” said 7thirty’s Director of Research, Ben Richardson. “The Blinc Group’s focus on vape safety and compliance, in addition to CEO Arnaud Dumas de Rauly’s leadership roles with International and European committees on vaping products, position the Company as a leading voice in this fast-growing category.”

 

 

 

 


Debra BorchardtDebra BorchardtJanuary 15, 2021
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4min500

Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) has entered into definitive agreements with certain institutional investors for the purchase and sale of an aggregate of 10,887,097 common shares in a registered direct offering, for expected gross proceeds of approximately $135 million (approximately CAD$171 million ). The company sold the shares at $12.40 (approximately CAD$15.70 ). The closing is expected to be on or about January 20, 2021. Village Farms said the net proceeds will be used for general working capital purposes.

The stock was dropping in early trading on the news but was lately selling at $14.35, not too far from the company’s 52-week high of $15.05.

The Road To Owning Pure Sunfarms

In March of 2020, Village Farms and Emerald Health Therapeutics (TSXV: EMH)(OTCQX: EMHTF) said that they had entered into a settlement agreement that would settle their prior disputes. The result was that Village Farms would own 53.5% of Pure Sunfarms (PSF) and Emerald would own 46.5% of Pure Sunfarms. Originally this was a 50/50 joint venture, but then the two companies had a falling out. Then on November 2, 2020 (subsequent to quarter-end), the company acquired all issued and outstanding shares of Pure Sunfarms, as a result of which Village Farms owned 100% of Pure Sunfarms.

On November 23, the company announced that Pure Sunfarms had received from Health Canada its Cannabis Research License to conduct human administration trials for sensory evaluation of cannabis, enabling it to engage in on-site assessments of the taste, sight, smell, or touch of its products at its Delta 3 cannabis facility in Delta, British Columbia.

“This license provides us with significant new opportunities in the formulation and refinement of our products, and underscores our commitment to innovation and the advancement of the Canadian cannabis consumer experience,” said Mandesh Dosanjh, President and Chief Executive Officer, Pure Sunfarms. “We look forward to leveraging this new capability to continue to extend Pure Sunfarms’ product leadership and further strengthen what is already one of Canada’s best-selling cannabis brands.”

Net income for the nine months ending September 30, 2020, included a $4.7 million gain on receipt of Pure Sunfarms shares from Emerald Health Therapeutics as per the Settlement Agreement and Mutual Release, dated March 2, 2020, by and between Village Farms International, Inc., Emerald Health Therapeutics Inc., Emerald Health Therapeutics Canada Inc., and Pure Sunfarms Corp.

 


Video StaffVideo StaffJanuary 15, 2021

3min2610

On Monday, Governor Andrew Cuomo confidently stated that New York will legalize adult-use marijuana in his state of the state address.  Cuomo said in the speech. “This will raise revenue and will end the over-criminalization of this product that has left so many communities of color over-policed and over-incarcerated.”

Cresco Labs (CSE: CL) (OTCQX: CRLBF) is buying Florida-based Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX: BMWLF) in an all-stock deal valued at $213 million. Bluma Wellness operates as “One Plant Florida” and has seven strategically located dispensaries with eight more locations under legal control with plans to open.

 KushCo announced financial results for its fiscal first-quarter ending November 30, 2020, with net revenue decreasing 23% from the prior-year period to $26.8 million. On a positive note, the net loss was trimmed to $4.5 million from $12.5 million in the prior-year period. 

Organigram (NASDAQ: OGI) delivered net revenue of $19.3 million for the first fiscal quarter of 2021 versus last year’s $25.2 million, which the company blamed on significantly lower wholesale revenue from licensed producers and a lower average selling price in the quarter. The company also delivered a first-quarter net loss of $34.3 million largely due to greater negative gross margin.

GW Pharma said it expects total net product sales to be approximately $148 million for the fourth quarter and approximately $526 million for the year ended December 31, 2020. 

And finally, According to data from Akerna (NASDAQ: KERN) the Christmas holiday period generated $427 million in cannabis sales. Typically, the Friday before Christmas is the biggest sales day of the holidays, but this year Christmas was on a Friday. So it was the Wednesday before Christmas that got the most significant bump in sales with a 76% increase in daily sales.


StaffStaffJanuary 14, 2021
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5min630

It’s time for your Daily Hit of cannabis financial news for January 14, 2021.

On the Site

Cresco Labs

Cresco Labs (CSE: CL) (OTCQX: CRLBF) is buying Florida-based Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX: BMWLF) in an all-stock deal valued at $213 million. Bluma Wellness operates as “One Plant Florida” and has seven strategically located dispensaries with eight more locations under legal control with plans to open.

The terms of the deal include Bluma shareholders receiving 0.0859 of a subordinate voting share of Cresco Labs for each Bluma Share held. The Exchange Ratio implies a price per Bluma Share of approximately $1.12, representing a premium of approximately 29% based on the closing price of Bluma Shares on the CSE as of January 13, 2021.

Aphria

Aphria Inc. (TSX: APHA) (Nasdaq: APHA) reported its financial results for the second quarter and six months ended November 30, 2020, with all amounts are expressed in Canadian dollars. The stock was moving higher by over 7% in early trading as the earnings per share beat expectations.

Net revenue for Aphria increased 33% to $160.5 million from $120.6 million in the same period last year. Second-quarter net revenue increased 10% sequentially from $145.7 million. The company attributed this to an increase in distribution revenue at CC Pharma in Germany and an increase in net cannabis revenue as well as five days of contribution from net beverage alcohol revenue from the acquisition of SweetWater.  The increase in distribution revenue is a result of a return to normalized levels from the prior quarter.

In Other News

Namaste

Namaste Technologies Inc.  (OTCMKTS: NXTTF) has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters and pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 29,000,000 units in the capital of the Company at a price of C$0 .35 per Unit for aggregate gross proceeds to the Company of C$10,150 ,000.

Ayr Strategies

Ayr Strategies Inc. (OTCQX: AYRWF) closed of its previously announced overnight marketed offering of an aggregate of 4,600,000 subordinate voting shares, restricted voting shares or limited voting shares at a price of C$34.25 per share for total gross proceeds of approximately C$157,550,000, which included the exercise in full of the over-allotment option granted to the underwriters, before deducting the underwriters’ fees and estimated offering expenses. Canaccord Genuity Corp. acted as the lead underwriter for the Offering, on behalf of a syndicate of underwriters including Beacon Securities Limited, Echelon Wealth Partners, Roth Canada, ULC and PI Financial Corp.

Mydecine

Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF) has agreed to increase the size of its previously announced bought deal financing led by Canaccord Genuity Corp. Canaccord Genuity has agreed to purchase, on a bought deal basis pursuant to the filing of a short form prospectus, an aggregate of 30,000,000 units of the Company at a price of C$0.50 per Unit for aggregate gross proceeds to the Company of C$15,000,000. If the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be C$17,250,000.

MindMed (OTCQB: MMEDF) a leading psychedelic medicine biotech company today announced the addition of Robert Barrow, an accomplished pharmaceutical executive, as Chief Development Officer. Mr. Barrow has over a decade of experience leading drug development programs aimed at identifying and testing novel treatments in a wide range of disease conditions under FDA and EMA.


Debra BorchardtDebra BorchardtJanuary 14, 2021
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4min1440

Cresco Labs (CSE: CL) (OTCQX: CRLBF) is buying Florida-based Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX: BMWLF) in an all-stock deal valued at $213 million. Bluma Wellness operates as “One Plant Florida” and has seven strategically located dispensaries with eight more locations under legal control with plans to open.

“Our strategy at Cresco Labs is to build the most strategic geographic footprint possible and achieve material market positions in each of our states. With Florida, we will have a meaningful presence in all 7 of the 10 most populated states in the country with cannabis programs – an incredibly strategic and valuable footprint by any definition. We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way – we identified Bluma as having the right tools and key advantages for growth. Bluma is known for having best-in-class cultivation in the state of Florida, a differentiated retail experience and omnichannel offering with effective delivery, a clear pathway to scale and an incredible management team. We have a proven track record of integrating assets in strategic states, improving fundamentals, and amplifying operations to take share in the most competitive cannabis markets,” said Charles Bachtell, CEO of Cresco Labs.

Terms

The terms of the deal include Bluma shareholders receiving 0.0859 of a subordinate voting share of Cresco Labs for each Bluma Share held. The Exchange Ratio implies a price per Bluma Share of approximately $1.12, representing a premium of approximately 29% based on the closing price of Bluma Shares on the CSE as of January 13, 2021.

Last month, Bluma reported that its net revenue for the third quarter of 2020 increased by 47.7% from the prior quarter.  The revenue growth was driven primarily by the organic growth of existing dispensaries and the opening of additional retail dispensaries in the third quarter. Additionally, One Plant Florida has seen a steady increase in the average price per gram of medical cannabis flower sold, attributable to the market’s continued recognition of One Plant Florida’s premium medical cannabis products. Net income for the third quarter of 2020 was approximately $300,000.

Bluma used to be called Sol Global, but in 2019 changed its name. The company explained that “Bluma” is an ancient Hebrew word that means to flower, bloom, r blossom. It selected this name based on a key principle of the business: to ensure that its patients and consumers utilize the plant-based products to enhance their daily lives, namely to bloom and thrive.

“Bluma’s high-quality cultivation operations, scaled delivery platform, and strategic retail investments combined with Cresco Labs’ track record of execution and capital allocation creates the best path forward to accelerate growth for our business in Florida,” said Brady Cobb, CEO of Bluma. “Our vision for Bluma and One Plant Florida has always been to cultivate remarkable experiences through exceptional cannabis. Our management team took the responsibility to seriously assess potential partners and we’re thrilled to be joining an organization that aligns operationally and shares our passion for creating quality cannabis products.”

 



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