Business Archives - Green Market Report

StaffMay 18, 2022
shutterstock_1855501255.jpg?fit=960%2C720&ssl=1

1min1620

Women’s Leadership Award

C-Suite – Private Company

Ralina Shaw

Founder – House of Tyne

Ralina is the founder of House of Tyne and on the leadership team of 4thMVMT,  a leading social impact organization based in Los Angeles with a mission to support those who have been adversely affected by onerous Cannabis laws. They do this by educating, empowering, and training those adversely affected to run/operate their BIPOC-led “Sixty Four & Hope” retail dispensaries in Los Angeles (2 recently opened locations and counting).  She has kept the company and their mission top of mind while always navigating legislation AND the challenges of getting open at retail.  She is also one of the few BIPOC executives in the PR & Retail space. A true powerhouse with a growing franchise committed to their local communities.


StaffMay 18, 2022
davos2.jpg?fit=273%2C185&ssl=1

6min1980

Every year world leaders come together to discuss the global economy at the World Economic Forum’s annual gathering in Davos Switzerland. This small town in the Alps has become the place where the smartest people on the planet come together to discuss solutions to the world’s economic problems and issues. It is not uncommon for various industries to establish a meeting place for people to come together for conversations. In 2019, the Canada Cannabis House hosted a three-day event for people in the cannabis industry to introduce themselves and talk about business with people who were unfamiliar with the industry. This year the focus has shifted to psychedelic plant medicine and how numerous studies have shown it could be a game-changer for mental health treatments.

Inaugural Event

One thing that is new this year for Davos is that the main event, the World Economic Forum, was pushed back from its traditional January date to May due to the pandemic. Another new feature will be the inaugural Medical Psychedelic Series which hopes to help shape the future of mental health. The inaugural week-long series will take place from May 21-26, 2022, at the eclectic Medical Psychedelics House of Davos located on the main Promenade. It will feature the world’s most prominent psychedelic industry leaders, drug development experts, clinicians, nonprofit organizations, advocates, and influencers. The majority of conversations at the Medical Psychedelics House of Davos will focus on FDA approval for these compounds and their associated therapeutic potential, policy, safety and efficacy, biocultural preservation, drug development pipelines, and patient access.

“This is a one-of-a-kind opportunity for the medical psychedelics ecosystem to stand on the international stage for the first time in front of the world’s most powerful leaders,” says Marik Hazan, CEO of Energia Holdings Incorporated. “We want to spark conversations about the high unmet need in mental health, the future of FDA approved psychedelic-assisted therapy, provide a platform for establishing meaningful relationships and partnerships, and build trust with the global community,” added Maria Velkova, managing partner of Tabula Rasa Ventures.

Hosted by Energia Holdings Incorporated, the series includes educational talks and panels featuring some of the best-known figures in the psychedelic space, including acclaimed author and psychedelic medicine advocate Deepak Chopra; TV personality and advocate Jason Silva; countess of Wemyss and March and nonprofit leader Amanda Fielding; psychedelic researcher David Nichols, PhD; Endowed Professor & Vice Chair of Psychiatry, Icahn School of Medicine at Mount Sinai Rachel Yehuda, PhD and many more.

As the COVID-19 pandemic laid bare, mental health is one of the largest underserved areas in the medical community. With few solutions in sight, there is a growing body of evidence that suggests that psychedelic-assisted therapy could provide a breakthrough in treating countless mental health ailments, such as depression, substance abuse disorders, and PTSD.

At Davos 2022, This Medical Psychedelics Series Will Be the Global Platform for Where Select Attendees Will:

  • Learn from leading experts in the medical psychedelics industry who are setting the narrative for both mental health and psychedelic therapeutics on the global stage in front of world leaders.

  • Experience sessions curated to engage all six senses and give an unforgettable heart-opening, mind-stimulating, experience of human connection through sound meditation, breathwork, and conscious leadership workshops.

  • Connect with psychedelic entrepreneurs, researchers, policy makers, and nonprofit leaders and some of the world’s most innovative psychedelic organizations like the Multidisciplinary Association for Psychedelic Studies (MAPS), Maya Health, Compass Pathways, Imperial College London, and many others.


Video StaffMay 18, 2022

1min1590

On April 28, 2022, the Green Market Report hosted its first Women’s Summit in New York City. This panel was titled “Women Creating Cannabis Brands.” These savvy and accomplished women have created truly unique and original products and companies. Their products are unlike others in their categories. This panel explores what it takes to create a company and product that stands out in a sea of sameness. Panelists included Jill Ellsworth – Founder CEO Willow Industries, Brett Heyman – Founder Edie Parker, Jodi Scott CEO Green Goo & Good Goo, and moderated by Tori Chamberlain – WHDH News Producer Thank you for watching the Green Market Report! Be sure to subscribe to our channel and our newsletters.


StaffMay 17, 2022
daily-hit.jpg?fit=700%2C394&ssl=1

6min3240

The Daily Hit is a recap of the top cannabis business stories for May 17, 2022.

On the Site

Halo

Halo Collective Inc.  (NEO: HALO) (OTCQB: HCANF) announced its financial results for the first quarter ending March 31, 2022, as revenue declined 23% to $7.6 million versus revenue of $9.9 million for the same time period in 2021. Halo said that sales were impacted by a significant downturn in both the California and Oregon markets. The company also said that the flower category, which is a leading indicator, sharply declined, with sales falling by 23% in California and 26% in Oregon year over year. Halo also reported a net loss of $13 million in the quarter, which increased over last year’s net loss of $9 million. Read more here.

Greenlane

Greenlane Holdings, Inc. (NASDAQ: GNLN) reported financial results for the first quarter ending March 31, 2022 as revenue increased 37% to $46.5 million versus last year’s $34.0 million for the same quarter. However, it was a dramatic fall from the fourth quarter’s revenue of $56 million and it missed the Yahoo Finance average analyst estimate for sales of $51 million. Read more here.

Akerna

After several lackluster quarters, cannabis software company Akerna (Nasdaq: KERN) announced that it has hired JMP Securities to assist in evaluating strategic alternatives as the company and the board seeks to maximize stakeholder value. Akerna also reported that CFO John Fowle is leaving to pursue other interests, effective May 17. The Board has appointed Dean Ditto as Akerna’s interim CFO. Read more here.

Green Goddess

Green Goddess Supply, a “cultivation to consumption” cannabis technology lifestyle brand offering a line of high-quality products to grow, store, prep and consume hemp flower and cannabis products has launched a crowdfunding campaign. The company was initially funded by management and “friends and family.” With this offering, the company will gain access to over 750,000 investors via the StartEngine Regulation CF platform, to showcase its patented cannabis home grow system. Read more here.

In Other News

InterCure

 InterCure Ltd. (NASDAQ: INCR) (TSX: INCR.U) announced its financial results for the first quarter of 2022 and is pleased to provide shareholders with a business update. The company had quarterly revenue of $34 million (NIS 87 million), almost three times greater than Q1 2021 ($13 million or NIS 33 million) and up 9% sequentially compared to the prior quarter. Net income of $6 million (NIS 15 million) for the Q1 of 2022 compared to $2 million (NIS 4 million) in Q1 of 2021 Seventh consecutive quarter of positive cash flow from operations. Read more here.

iPower Inc.

iPower Inc. (Nasdaq:IPW) announced financial results for its fiscal third quarter ended March 31, 2022. Total revenue increased 74% to $22.8 million. Net income increased significantly to $1.2 million or $0.04 per share as compared to $(0.01) per share for Q3 2021. Total revenue in the fiscal third quarter of 2022 increased 74% to $22.8 million compared to $13.1 million for the same period in fiscal 2021. The increase was driven by greater product sales to the Company’s largest channel partner as well as strong demand for iPower’s ventilation products, commercial fans and shelving products. Read more here.


StaffMay 17, 2022
MindMed.jpg?fit=500%2C378&ssl=1

4min3330

Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), (NEO: MMED) reported its financial results for the first quarter ending March 31, 2022. At this time, MindMed does not have any revenue to report. The net and comprehensive loss for the quarter was $18.5 million, compared to $13.8 million for the same period in 2021.

The net cash used in operating activities was $12.9 million for the quarter versus $10.0 million for the same period in 2021.  R&D expenses were $10.2 million for the quarter versus $6.8 million for the same period in 2021. MindMed said the increase of $3.4 million was primarily due to $4.4 million of internal expenses related to compensation costs for an additional headcount of $2.0 million and an increase in non-cash expenses of $1.7 million of stock-based compensation expenses.

“The outset of 2022 was marked by significant progress across all aspects of the company that propelled our business forward, as we continued to advance and de-risk our three lead product candidates: MM-120 for the treatment of generalized anxiety disorder, MM-402 for the treatment of core symptoms of autism spectrum disorder, and MM-110 for the management of opioid use disorder,” said Robert Barrow, Chief Executive Officer and Director of MindMed. “We anticipate multiple upcoming catalysts and further growth across our drug development pipeline as well as our enabling technologies. We look forward to building on this momentum and believe we are well-positioned to deliver on the therapeutic potential of psychedelics and other novel targets to transform the treatment of brain health disorders.”

Cash Levels

The company said it has cash of $120 million, down from $133 million for the first quarter in 2021. Despite the large amount of cash on hand, MindMed filed a prospectus for an at-the-market equity offering under which the company may offer and sell its Subordinate Voting Shares or common shares re-designated from the company’s Subordinate Voting Shares  for up to $100 million in aggregate sales proceeds in “at the market” transactions.

The company has a deficit of $156 million and said in it’s last filing, “We expect that it will be several years, if ever, before we have a commercialized product and generate revenue from product sales. Even if we succeed in receiving marketing approval for and commercializing one or more of our product candidates, we expect that we will continue to incur substantial research and development and other expenses in order to discover, develop and market additional potential products.”


StaffMay 17, 2022
Tray1_Amazon.webp?fit=1072%2C1072&ssl=1

4min4190

Green Goddess Supply, a “cultivation to consumption” cannabis technology lifestyle brand offering a line of high-quality products to grow, store, prep and consume hemp flower and cannabis products has launched a crowdfunding campaign. The company was initially funded by management and “friends and family.” With this offering, the company will gain access to over 750,000 investors via the StartEngine Regulation CF platform, to showcase its patented cannabis home grow system.

“We are incredibly excited to launch this initiative,” said Founder and CEO, Eric Robichaud. He continued, “What’s impressive to me is management’s ability to build, ship and deliver almost 600 systems during the global pandemic that has been riddled with supply chain obstacles and seemingly never ending “red tape” including, but not limited to, price gouging for Ocean Freight, new hidden costs such as “port congestion,” scarce and expensive domestic LTL shipping, supply chain and materials delays, and more.”  The company has overcome these obstacles and is expanding The Armoire product line with new, higher-margin models ready for the 2022 holiday selling season. This capital raise will enable the company to continue to expand the product line, and scale sales and marketing.

Green Goddess Supply has built a catalog of cannabis-centric accessory products including storage boxes, rolling trays, grinders, pipes and more. The crown jewel in its product line is the critically acclaimed, award-winning personal home grow system sold and marketed as “The Armoire.” Now, with a U.S. patent in hand and rave reviews, the company believes The Armoire is ready for prime time.

Robichaud points out that The Armoire isn’t “just some idea” – it’s gone through R&D, prototyping, pre-production and into production. The company has built-out shipping and warehousing capabilities, internal and external systems and processes, and more. “It’s amazing to see the results of these Armoire units successfully deployed in homes across the country, which have been able to really help to change and improve lives! We’re now ready to scale up and bring it to the masses,” he said.

“We are part of a larger, DISRUPTIVE revolution: investing in private companies in red-hot sectors before they go public or are sold, said Vincent Bitetti, inventor of The Armoire and Chief Cannabis Officer at Green Goddess Supply.  “Under Reg CF, companies apply via a highly-regulated system, akin to going public. It all takes place through an SEC-registered intermediary, either a broker-dealer or a funding portal such as StartEngine.com.” These rules are relatively new—the SEC approved Reg CF in 2017. For the first time ever, this enables eligible companies to offer and sell securities through crowdfunding. And similarly, it allows individual investors to access pre-IPO businesses that were previously only accessible to accredited investors – typically via private placements as companies prepare to go public.

 


Debra BorchardtMay 17, 2022
tech.jpg?fit=960%2C641&ssl=1

5min4430

After several lackluster quarters, cannabis software company Akerna (Nasdaq: KERN) announced that it has hired JMP Securities to assist in evaluating strategic alternatives as the company and the board seeks to maximize stakeholder value. Akerna also reported that CFO John Fowle is leaving to pursue other interests, effective May 17. The Board has appointed Dean Ditto as Akerna’s interim CFO

“Our goal is to ensure we are taking every possible step to maximize value for our stakeholders,” said Jessica Billingsley, CEO and Board Chair of Akerna. “We are actively involved in strategic discussions and are happy to have JMP assist us in evaluating our opportunities, given their deep experience in the technology sector. We are confident in our ability to capitalize on the strength of our business, and we remain intensely committed to our clients, our team members and all other stakeholders.”

Fowle recently said on the company’s earnings call, “The ability of the company to continue as a going concern is dependent on our ability to secure other sources of financing, reduce debt, and attain profitable operation. Our corporate liquidity requirements primarily include payroll costs, corporate overhead expense, and debt service costs and our current sources of liquidity include cash on hand, as well as proceeds we anticipate from the access to our ATM programs. The board is addressing the working capital deficiency and considering all options available to the company in the best interest of our shareholders.”

The company’s recent filing spelled out the news more starkly saying, “If we cannot timely raise additional funds, we may also be unable to meet the financial covenants of the Senior Convertible Notes, which could result in an event of default under those instruments which could negatively impact the Company.”

Akerna President and COO Ray Thompson will become a Special Advisor to CEO. In this role, Ray will continue to oversee the legacy business, assist the CEO with special projects and advise on various aspects of corporate strategy.

“It’s been a privilege to serve as President & COO for Akerna, and I look forward to continuing to advise the organization on its business strategies in my new role as Special Advisor to the CEO,” said Ray Thompson.

Akerna’s Losses

Last week, Akerna reported that its software revenue was $6.5 million in the first quarter, up 71% year-over-year and total revenue was $7.0 million, up 73% year-over-year. However, the loss from operations was $20.6 million, up $17.1 million year-over-year and the net loss was $22.0 million, up $15.5 million year-over-year.

Akerna recently reported its 2021 earnings with total revenue of $20.7 million, up 49% year-over-year. The loss from operations though were $33.4 million, up $6.6 million year over year and the net loss was $33.6 million, up $6.7 million year-over-year.

Going Concern

In the company’s latest filing it noted, “Since our inception, we have incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing operations. During the three months ended March 31, 2022, and March 31, 2021, we incurred a loss from operations of $20.6 million and $3.5 million, respectively, and used cash in operations of $3.6 million and $1.4 million, respectively. As of March 31, 2022, a working capital deficit of $15.1 million with $9.7 million in cash available to fund future operations. We will require additional financing in the second quarter of 2022 to meet our ongoing operational working capital requirements and continue to meet the financial covenants of the Senior Convertible Notes.”

 


Debra BorchardtMay 17, 2022
greenlane.jpg?fit=890%2C501&ssl=1

5min3520

Greenlane Holdings, Inc. (NASDAQ: GNLN) reported financial results for the first quarter ending March 31, 2022 as revenue increased 37% to $46.5 million versus last year’s $34.0 million for the same quarter. However, it was a dramatic fall from the fourth quarter’s revenue of $56 million and it missed the Yahoo Finance average analyst estimate for sales of $51 million.

Net losses at Greenlane grew to $18 million from last year’s net loss of $7 million and the earnings per share were ($0.17). This also missed the estimates for earnings of ($0.07). The stock was falling over 5% in early trading to lately sell at 35 cents.

Greenlane reported that the year-over-year increase in net sales was primarily driven by the KushCo merger. Excluding KushCo’s post-merger sales, revenue declined 47% to $18.1 million, compared to $34.0 million for the same period in 2021. Third-party brand sales decreased 49% due to its strategy to focus on our proprietary, higher-margin Greenlane Brands. Greenlane Brand sales decreased 34% to $6.0 million, or 12.8% of total revenue, in the first quarter 2022 compared to $9.0 million, or 26.6% of total revenue in 2021. The decrease was mainly due to interruptions related to the ERP implementation.

“Building on a record and transformational 2021, we made meaningful progress executing on our strategic 2022 plan in Q1 2022, from reducing our corporate headcount to focusing more on our higher-margin Greenlane Brands,” said Nick Kovacevich, CEO of Greenlane. “Total revenue increased 37% to $46.5 million, driven primarily by the KushCo merger. If you exclude KushCo’s post-merger sales, revenue declined 47% year-over-year to $18.1 million, driven in large part by our strategic shift away from non-core third-party brands, sales of which decreased 49% from the same period in 2021. As part of our strategy to focus more on our higher-margin, proprietary Greenlane Brands, we expect a decline in total revenue from discontinuing some of these third-party brand relationships, but we believe the overall quality and margins of the revenue that we will generate going forward will be far more favorable and sustainable.

Costs Up, Sales Down

Greenlane reported that its cost of sales increased by $15.1 million, or 59%, as compared to the same period in 2021. The company attributed the increase to the impact of the KushCo merger of $26.2 million, offset by a decrease in revenue of 47% excluding the impact of the KushCo merger.

Salaries, benefits, and payroll taxes expenses increased by 58% to $10.1 million versus $6.4 million for the same period in 2021, primarily due to an increase related to the KushCo merger, an increase in severance of $0.6 million and an increase in stock compensation expense of $0.4 million. The increase was offset by salaries and payroll taxes decrease related to a reduction in force we completed in March 2022, which we expect to result in approximately $8.0 million in annualized cash compensation cost savings. This reduction in force is a part of its 2022 plan to reduce the cost structure, increase liquidity and accelerate our path to profitability.

Kovacevich added, “Sales of our Greenlane Brands was down 34% year-over-year to $6.0 million, largely due to our ERP system implementation, which caused interruptions in our ability to accept and fulfill customer orders. Although we expect to fully transition to this new ERP by the end of 2022, these interruptions materially impacted revenue for the first quarter, with some orders slipping into the second quarter. Growing our proprietary brands remains a key focus of ours, as it helps expand our strategic moat, margins, revenue, and profitability. In fact, we’re excited to have recently announced our partnership with Universal Distribution to distribute our Greenlane Brands in the promising Latin America market. Given that we are not subject to the same global trade restrictions as our plant-touching peers, we can ship our products worldwide in an asset-light manner, enabling us to scale faster and wider, and ultimately build our brands ahead of legalization in these markets.


StaffMay 17, 2022
Halo.jpg?fit=840%2C960&ssl=1

6min3950

Halo Collective Inc.  (NEO: HALO) (OTCQB: HCANF) announced its financial results for the first quarter ending March 31, 2022, as revenue declined 23% to $7.6 million versus revenue of $9.9 million for the same time period in 2021. Halo said that sales were impacted by a significant downturn in both the California and Oregon markets. The company also said that the flower category, which is a leading indicator, sharply declined, with sales falling by 23% in California and 26% in Oregon year over year. Halo also reported a net loss of $13 million in the quarter, which increased over last year’s net loss of $9 million.

“Marked to market the company’s estimated unrealized gain before taxes at March 31, 2021, on Halo’s investment in Akanda was approximately $74.6 million,” said Kiran Sidhu, CEO, and Director. “We expect that if the intended acquisition and subsequent spin out of PhytoCann SA is completed, it will also create substantial value by delivering meaningful revenue and operating profit contribution.”

Oregon Issues

The company noted the numerous issues within the Oregon market and is attempting to address them while the state tries to rectify the situation. Halo said it decreased distribution of its products to Oregon dispensaries from 478 on December 31, 2021, to 464 on March 31st, 2022. the company also noted that bad debts have been reduced, and accounts receivable days have decreased. It plans on further reductions planned of production overheads and “right-sizing” of the business for current revenue and future projections. It has also reduced outdoor cultivation operations both in scope and cost for the 2022 growing season to decrease working capital expenditure and improve cash flow.

Halo said in a statement that in March 2022, the Oregon legislature signed HB4016, a moratorium that inactivates all marijuana license applications received after January 1, 2022, until March 31, 2024. Additionally, it allows the Oregon Liquor and Cannabis Commission to refuse to issue any new marijuana licenses until further notice. Halo anticipates this favorable policy change will decrease saturation and lead to rising wholesale cannabis prices over time. The net effect of this bill is expected to result in an increase in product profitability in the State of Oregon.

California

As of April 2022, Halo discontinued operations at Coastal Harvest and consolidated with Outer Galactic Chocolates/Mendocino Distribution and Transportation LLC, which will reduce overheads and increase profitability in the second quarter 2022. The company anticipates Governor Newsom’s tax proposal- which would eliminate cultivation tax starting July 2022– if passed, would further increase profitability and growth of the California business segment.

“Halo’s California wholesale business segment is EBITDA positive and scaling. We expect to re-achieve positive EBITDA contribution from the Oregon wholesale business segment in the latter half of 2022,” added Joshua Haddox, Chief Operating Officer.

“The Company’s California dispensary business segment officially opened in Q1 and is growing quickly. After a six-month ramp-up period per dispensary, we expect the Los Angeles dispensaries in North HollywoodWestwood, and Hollywood to contribute positive EBITDA,” commented Beau McKeon, Senior Vice President of Retail Operations.

Looking Ahead

“In 2022, we intend to develop, grow, and ultimately monetize assets by incubating promising cannabis related businesses while remaining laser-focused on optimizing West coast cannabis operations. The planned spinout of Halo Tek Inc. is expected to result in a distribution to all Halo shareholders. The intended acquisition of Phytocann is expected to add significant revenue and EBITDA to the Company in late 2022,” said Katie Field, President, and Director. The company remains a going concern according to its filing.


StaffMay 17, 2022
shutterstock_1855501255.jpg?fit=960%2C720&ssl=1

2min3320

Women’s Leadership Award

Cultivation

Joyce Cenali

COO Sonoma Hills Farm

 

Joyce Cenali is COO of Sonoma Hills Farm, a premium craft cannabis farm and organic culinary garden nestled on 60-acres in Sonoma Valley. In addition to Sun+Earth certification, the farm’s cannabis was one of the first to be recognized as “organic comparable,” as designated by CCOF’s OCal program, which certifies consistency with the uniform standards of the National Organic Program. The farm bridges Sonoma county’s rich agricultural history with a farm-to-table cannabis lifestyle.

Joyce has worked day in and day out to assist other entrepreneurs, many of which are minorities, in cannabis. She is an advisor for various female founders of early-stage companies that are innovating in cannabis with a mission to advance a modern regulatory model that unites capitalism with inclusion A long time craft cannabis cultivator, she co-founded an Emerald Cup winning operation and began angel investing in various women-founded early-stage cannabis start-ups including Sava. She is a board advisor with Access & Innovation whose mission is to advance a modern regulatory model that unites capitalism with inclusion, and former co-chair for the Sonoma County chapter of Women Grow, which serves as a catalyst for women to influence and succeed in the cannabis industry as the end of marijuana prohibition occurs on a national scale. 

She’s an avid supporter and investor in LADY BUDS, an indie film that features women in cannabis. She also leads operations at Big Rock Partners, a strategic advisory firm serving investors and companies at the intersection of food, hospitality, and cannabis.


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.


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


READ MORE



Recent Tweets

@GreenMarketRpt – 2 hours

Psychedelics Takes A Seat On the World Stage

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

We respect your privacy. See our privacy policy.