Business Archives - Page 2 of 98 - Green Market Report

William SumnerWilliam SumnerFebruary 12, 2019
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3min2630

Yesterday, the San Francisco-based cannabis dispensary chain, The Apothecarium, announced that they had been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Including in the purchase agreement are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.

With more than 200 employees and $45 million in combined revenue, Apothecarium made for an attractive buy to TerrAscend, which recently has been making moves to enter the U.S. market.

Last month, TerrAscend completed the acquisition of another U.S. company Grander Distribution, LLC. Grander is a producer and distributor of hemp-based wellness products that are available in more than 10,000 worldwide retail locations.

“Teaming up with a larger company means that we will be able to bring the Apothecarium dispensary experience to more people, in more cities around the country,” said Apothecarium CEO Ryan Hudson in a statement. “Our customers won’t see major changes inside our dispensaries.”

Under the agreement, TerrAscend has agreed to pay $73.7 million in cash and to grant 7.325 million proportionate voting shares in the company. All full-time employees, including budtenders, will receive shares of TerrAscend.

Additionally, Apothecarium’s CEO and leadership team are expected to remain in their current roles. The completion of this acquisition is still pending regulatory approval from both the states of California and Nevada.

“Today’s news is another major step in executing TerrAscend’s US strategy,” said TerrAscend President Matthew Johnson. “We believe The Apothecarium is the model for operational excellence and will set the tone for our US cultivation and retail expansion, and we admire their philanthropic dedication and local community engagement.  We look forward to working together with the members of the current team to bring the Apothecarium’s unique experience to more communities and improve patient access to quality cannabis products and services.”


StaffStaffFebruary 12, 2019
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3min960

The vape pen category has shown enormous growth in the cannabis industry, but not all vapes are created equal. Consumers are also beginning to show a preference in their purchasing habits when it comes to vapes as well. Kurvana has kept an eye on these trends and has managed to make a product to satisfy multiple consumers.

Cowen & Co.’s senior analyst Vivien Azer wrote that vape pens have grown their dollar share from 5.8% of the market in January 2016 to 14.7% in May 2018. Vapes have become the number two form factor in the cannabis industry trailing flower which commands a robust 52% of the market. However, flower sales have been losing ground to the vape pen sales.

Azer also determined that pricing varies for vape pens according to the market. For example, a vape pen in Washington state averages $26.31, while in Nevada that number jumps to $49.14. Consumers are also demanding to know more about their vape pens as the market gets flooded with products from dubious sources. Some companies buy their hardware from China from the same manufacturers that make e-cigarettes, but tobacco oil is thinner than cannabis oil, so additives are introduced in order to use the hardware.

Kurvana sources only the highest quality raw flower from organically grown cannabis, provided by trusted farmers well-known to the industry. Kurvana uses a proprietary 50-step process to purify the essential cannabinoids, tasty terpenes, and natural ingredients that contribute to the unique experience of vaping with full spectrum Kurvana oil. They never introduce extra terpenes or additives of any kind, because they distract from the plant’s original essence.

Consumers are also leaning more towards mood based vape pens versus strain based. Kurvana has captured both sides of this market. The ASCND pens offer 10 different strains that are clearly marked as to whether it is indica, sativa or a hybrid. Then the company’s website breaks it down even further into an easy to follow chart so that consumers can locate the symptom they want to address and find the pen to best address it.

The products are only available in California at this time, but with this is a high potency, attractive pen with a great taste that consumers will want to find.


StaffStaffFebruary 12, 2019
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4min890

The Supreme Cannabis Company, Inc.  (OTCQX: SPRWF) reported a 359% increase in revenue to $7.72 million for the second quarter ending December 31, 2018. This was a 50% sequential increase over the first quarter revenue of $5.14 million.

The company trimmed its losses by delivering a net loss for the quarter of $1.55 million versus a loss of $2.03 million for the same time period last year. The losses dropped sequentially as well from the first quarter net loss of $5.39 million.

“We’re pleased with our second quarter results, which show meaningful revenue growth quarter-over-quarter and continues to reflect our strong operational execution,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Since Supreme received its license over two years ago, we have been one of the fastest scaling Licensed Producer’s in Canada, demonstrated by one of the strongest first years of revenue in the sector.”

During the quarter, the company was able to raise $100 million of gross proceeds through a bought deal offering of 6% unsecured convertible debentures due 2021 and led by GMP Securities L.P. and BMO Capital Markets. The company also uplisted from the TSX Venture Exchange to the Toronto Stock Exchange.

“During the second quarter, we made our first shipments of 7ACRES-branded product to adult-use markets in six provinces. The consumer feedback has been overwhelmingly positive. Cannabis enthusiasts are vocal about their passion for high-quality cannabis. We believe 7ACRES has quickly established itself as Canada’s only premier cannabis producer at scale. With construction on the flowering room at 7ACRES scheduled to be completed by the end of March, we’re looking forward to increasing our production capacity to help meet consumer demand and drive further revenue growth throughout the year.”

7Acres

The company’s flagship brand 7ACRES, was named Brand of the Year at the 2018 Canadian Cannabis Awards.  7ACRES also entered into a supply agreement with the New Brunswick Liquor Corporation and has been registered as a supplier in the province of Saskatchewan, expanding distribution into eight provinces.

Subsequent To The Quarter End

Supreme contracted Medipharm Labs Co. to facilitate the launch of the Company’s cannabis oil products line. Supreme Cannabis and Khalifa Kush Enterprises announced an international partnership agreement to develop and launch premium cannabis products for the Canadian and international markets excluding the United States.

Stock Performance

Supreme stock was lately trading at C$2.26, up from the company’s 52-week low of C41.15, but below the year’s high of C$2.43.


Sean HockingSean HockingFebruary 12, 2019
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2min480

Gleam Law is a Cannabis Law Firm that operates in  California, Oregon, and Washington. They have created this great quick guide infographic on Marijuana Law: Past, Present, and Future.

What’s it got in terms of takeaways?

A) Usefully. a current map of legalized states, things are changing so quickly snatch a look before things move on.

The takeaways.

Unsurprisingly all the action is still on the west coast.

There are now only 4 states without any regulation and surprise surprise they are in the midwest.

What’s interesting is the picture of growing CBD regulations. That patch of light green will spread and we’d guess turn darker sooner than most might think.

They’ve also  created a national price map and a quick world map explaining where other jurisdictions currently are or not as the case may be

B) Although there’s only the first draft bill in DC going to committee now it’s interesting to note that 360 banks already operate in the space

C) there’s also a quick explanation of US state & federal law positions if you need that

Learn more about the firm at https://www.gleamlaw.com/marijuana-law/


StaffStaffFebruary 11, 2019
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6min1070

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

On The Site

Aurora Cannabis Inc. (ACB) reported that its gross revenue jumped 430% to $62 million over last year’s $11.7 million for the same time period. The net revenue rose 363% to $54.2 million over last year’s $11.7 million.

Losses jumped a whopping 3,179% to $237 million versus last year’s gain of $7.7 million for the same time period. The company said in a statement that “Non-cash expenses including the December 31, 2018 mark-to-market adjustments of approximately $190 million primarily on the company’s derivative investments contributed significantly to a net loss of $240 million.”

Green Growth Brands Inc. or GGB (OTCQB: GGBXF)  entered into an agreement to gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG). GGB will expand its chain of CBD-infused personal care product shops under the Seventh Sense Botanical Therapy.

Simon is the biggest mall operator in the country with high-profile properties including Roosevelt Field in metro New York; The Galleria in Houston, TX; and Woodbury Common Premium Outlets in Central Valley, NY. While there are certainly numerous CBD shops, this is the first company to look at establishing a huge chain right off the bat.

Barney’s New York Inc. is opening a luxury cannabis store on the fifth floor of its Beverly Hills store next month. Bloomberg reported that the luxury store known for its cutting edge fashion will open a department called “The High End.”

Since Barney’s isn’t a licensed dispensary, it will be limited to selling cannabis accessories like pipes, rolling papers, and stash boxes. The company’s partner will be the premium cannabis brands called Beboe and as part of the arrangement, Beboe will educate consumers on its products that they can order online for delivery in the California area.

On Wednesday this week, Congress will hold a hearing on banking services for the cannabis industry. This is the first hearing to be held by the new Congress that will begin tackling the issue of banking for cannabis companies.

Attorney Brady Cobb met with House lawmakers last week and is actively engaged with the legislative process. “With the opposition out of the way, we can finally make some progress,” said Cobb. He was referring to the ouster of Pete Sessions, who continually refused to bring cannabis legislation to the floor for a vote. Cobb said that the committee’s existing members were supportive and expect new members to be positive as well. The hearing will be available on CSPAN.

The National Cannabis Roundtable (NCR) was announced on Friday by the group’s new leader former speaker of the House John Boehner. The group will be lobbying to remove federal restrictions that stand in the way of medical research on cannabis and encourage the development solutions to help patients.

Other agenda items for the group include working to correct the tax code and improve the banking situation for cannabis companies. NCR will also be working to help states enact their own cannabis legislation.

In Other News

Lineage Grow Company Ltd. (CSE:BUDD) and FLRish, Inc. d/b/a Harborside, a private company incorporated under the laws of California have entered into a definitive merger agreement, which will result in the reverse takeover of Lineage by Harborside. The resulting issuer will seek a listing of the Subordinate Voting Shares on the CSE. Lineage intends to effect a change of its name to “Harborside Inc.” and has reserved the new stock symbol “HBOR”.

Geyser Brands Inc. (TSX-V: GYSR) entered into a non-binding letter of intent with Solace Management Group Inc, a company incorporated under the laws of the Province of British Columbia, setting out certain terms and conditions as to the acquisition of all of the issued and outstanding shares of Solace by way of a share purchase, share exchange or similar transaction, following a review of all relevant legal, regulatory and tax matters.

Southern Tier Hemp, a vertically-integrated agriculture technology company that will offer a suite of branded wellness products, just announced its new headquarters will be the largest hemp processing facility in New York State. The company recently disclosed that it reached an agreement to purchase the former Gannett printing plant in Johnson City, New York. The 100,000 square foot facility will become headquarters for Southern Tier Hemp as the company develops, manufactures and sells hemp cannabidiol (CBD) wellness products worldwide.


Debra BorchardtDebra BorchardtFebruary 11, 2019
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5min1870

Aurora Cannabis Inc. (ACB) reported that its gross revenue jumped 430% to $62 million over last year’s $11.7 million for the same time period. The net revenue rose 363% to $54.2 million over last year’s $11.7 million.

Losses jumped a whopping 3,179% to $237 million versus last year’s gain of $7.7 million for the same time period. The company said in a statement that “Non-cash expenses including the December 31, 2018 mark-to-market adjustments of approximately $190 million primarily on the company’s derivative investments contributed significantly to a net loss of $240 million.”

“Aurora continues to execute strongly across all of its market segments, as demonstrated by the 83% revenue growth over last quarter and the significant increase in confirmed production results,” said Terry Booth, CEO of Aurora.

The company said average selling prices were impacted by the introduction of excise taxes across all Canadian sales channels on October 17, 2018, as well as lower wholesale pricing realized in the Canadian consumer market. Aurora said that it intends to continue prioritizing medical patients in Canada and globally where margins continue to exceed those achieved on the wholesale consumer market. The cash cost to produce per gram of dried cannabis sold temporarily increased from $1.45in the previous quarter to $1.92 in Q2 2019.

Q2 2019 kilograms produced and kilograms sold of 7,822 and 6,999 were up 57% and 162%, respectively, driven by continued and significant scale-up of Aurora’s cultivation operations and strong demand across all the Company’s markets.

Gross margins on cannabis sales dropped dramatically to 54% from 70% in the prior quarter.  The decrease was primarily due to a lower average selling price per gram of dried cannabis, the impact of excise taxes on medical cannabis net revenues, and a temporarily lower proportion of cannabis oil sales in the company’s sales mix ratio.

Aurora also blamed increased packaging requirements under the Cannabis Act and one-time ramp up and optimization costs for the Sky facility. The company said it expects that the launch of new product lines like edibles and vapes will contribute to improving margins.

Glen Ibbott, CFO of Aurora added, “We are also very pleased with our recent placement of US$345 million in convertible notes.  These convertible notes were subscribed by high-quality US, Canadian, and international institutions and offer Aurora the flexibility and optionality to settle the entire principal amount of the notes in the future for cash, shares, or any combination thereof. This funding sufficiently supports the global opportunity for us to continue our commitment to growth in the legal, regulated medical and consumer cannabis systems across the globe.”

Outlook

Aurora said that it anticipates that with Aurora Sky operating at full capacity, as well as a continued reduction in operating costs, the cash cost to produce per gram will trend significantly lower. Management reiterates its expectation that the sustainable long-term operating cost at its Sky Class facilities will be well below $1 per gram. Aurora said it expects to achieve sustained positive EBITDA beginning in fiscal Q4 2019 (calendar Q2 2019).

Aurora is now operating at an annualized production rate of approximately 120,000 kgs, based on Health Canada approved planted rooms, and expects to reach in excess of 150,000 kgs by March 31, 2019.  Management reiterated its previous guidance that based on the company’s current confirmed production results, Aurora will have approximately 25,000 kgs available for sale in Q4 (April to June 2019).


StaffStaffFebruary 11, 2019
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3min1310

Barney’s New York Inc. is opening a luxury cannabis store on the fifth floor of its Beverly Hills store next month. Bloomberg reported that the luxury store known for its cutting edge fashion will open a department called “The High End.”

Since Barney’s isn’t a licensed dispensary, it will be limited to selling cannabis accessories like pipes, rolling papers, and stash boxes. The company’s partner will be the premium cannabis brands called Beboe and as part of the arrangement, Beboe will educate consumers on its products that they can order online for delivery in the California area.

“This will appeal to our core customer,” said Matthew Mazzucca, creative director of Barneys. “Our brand really looks at creating dialogue and focusing on cultural shifts.” Beboe is a hit among the fashion crowd in Los Angeles. It was founded by Scott Campbell, a celebrity tattoo artist and Clement Kwan who has a long history in executive roles across the fashion industry. He has been integral to the growth and success of luxury brands such as Theory, Diesel and Dolce & Gabbana. In 2012, Clement took on the role of President, heading the U.S. business of YOOX Group.

Beboe just announced last week that it was being acquired by Green Thumb Industries Inc., (GTBIF) which plans on expanding the brand’s presence into many more markets. Currently, the products are only for sale in California and Colorado.

“For us, we’re getting to communicate with curious customers who are basically our target demographic,” said Scott Campbell, one of Beboe’s co-founders.

Premium cannabis isn’t exactly as expensive as $16,000 striped St. Laurent mink striped top, but it is targeting the same crowd. The packaging has always been known to be fancier than most cannabis packaging.

Many of the store’s customers have “made cannabis part of their lifestyle,” according to Chief Executive Officer Daniella Vitale.


Debra BorchardtDebra BorchardtFebruary 11, 2019
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4min3540

Editors Note: You can follow all current legislation for free under the Green Market Report Legislation tab.

On Wednesday this week, Congress will hold a hearing on banking services for the cannabis industry. This is the first hearing to be held by the new Congress that will begin tackling the issue of banking for cannabis companies.

Businesses that work in states where cannabis has been legalized continue to struggle with financial institutions. The major credit card companies of Mastercard and Visa refuse to work with cannabis companies since it is still a federally illegal product. The major banks in this country also decline to bank these companies even though some are publicly traded entities with market capitalizations in the billions. Cannabis companies have turned to local banks and credit unions for their banking needs. Payment options are a pieced together with various solutions, but they aren’t ideal.

Attorney Brady Cobb met with House lawmakers last week and is actively engaged with the legislative process. “With the opposition out of the way, we can finally make some progress,” said Cobb. He was referring to the ouster of Pete Sessions, who continually refused to bring cannabis legislation to the floor for a vote. Cobb said that the committee’s existing members were supportive and expect new members to be positive as well. The hearing will be available on CSPAN.

This comes on the heels of the creation of a new lobbying group called the National Cannabis Roundtable that is being chaired by former Speaker of the House John Boehner. The Speaker sits on the board of Acreage Holdings Inc. (ACRG.U). That group is also working towards getting laws changed to favor more traditional banking.

Marijuana Moment reported that the people scheduled to testify include Corey Barnette, owner of the District Growers Cultivation Center and Metropolitan Wellness Center, which produce and sell medical cannabis in D.C., California State Treasurer Fiona Ma, Rachel Pross, the chief risk officer at the Oregon-based Maps Credit Union and Greg Deckard of State Bank Northwest in Washington State representing The Independent Community Bankers of America. In addition to that, Major Neill Franklin, a retired Maryland police officer who serves as the executive director of Law Enforcement Action Partnership (LEAP) looks to be on board.

While it would be great news for cannabis companies and dispensary owners to finalize use a major bank or take a debit card for a transaction, it could spell trouble for others. A whole cottage industry has sprung up in order to solve the banking problems for cannabis companies. It’s possible that by opening up the system, these companies stand a chance of getting acquired by bigger banks who want to get a quick foot in the door.


Debra BorchardtDebra BorchardtFebruary 11, 2019
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3min2200

Green Growth Brands Inc. or GGB (OTCQB: GGBXF)  entered into an agreement to gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG). GGB will expand its chain of CBD-infused personal care product shops under the Seventh Sense Botanical Therapy.

Simon is the biggest mall operator in the country with high-profile properties including Roosevelt Field in metro New York; The Galleria in Houston, TX; and Woodbury Common Premium Outlets in Central Valley, NY. While there are certainly numerous CBD shops, this is the first company to look at establishing a huge chain right off the bat.

“We are constantly on the lookout for cutting-edge new concepts, like the GGB shops,” said John Rulli, President of Simon Malls. “We are committed to adding new and dynamic retailers and uses to our shopping destinations, and the GGB shopping experience is exactly the type of innovation our customers want and expect from us. We’re excited to work on the GGB launch, and look forward to a long and deepening relationship as we build this network together.”

The first shop is expected to open in March 2019 at Castleton Square Mall in Indianapolis, Indiana. The remaining shops will be opened over the course of 2019.

“Our partnership with Simon allows GGB to launch our brands and CBD products in premier shopping destinations across the U.S.,” said Peter Horvath, CEO of GGB. “Our management team has had decades of experience working closely with developers and operating premium retail stores in their properties. We know this arrangement gives us access to the best locations, foot traffic, and consumers.”

GGB said that along with this agreement it has entered into a consulting agreement for services with Simon Canada Management Ltd. through its wholly owned subsidiary GGB Kiosks LLC.  In exchange for the services rendered GGB has issued to Simon Canada $2,232,824.42  in GGB common shares and 1,000,000 common share purchase warrants of GGB with an exercise price of $4.47.

GGB also said that it entered into an Advisory Services Agreement with J. Salter Ltd., d.b.a. Authentic Retail Concepts, Ltd., for a variety of consulting services that leverage a network of strategic relationships, including Simon Property Group. As compensation for the services under the Advisory Agreement, GGB has issued to ARC $2,232,824.42 in GGB common shares reflecting the GGB share price of USD$4.47.


Debra BorchardtDebra BorchardtFebruary 11, 2019
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3min3830

The National Cannabis Roundtable (NCR) was announced on Friday by the group’s new leader former speaker of the House John Boehner. The group will be lobbying to remove federal restrictions that stand in the way of medical research on cannabis and encourage the development solutions to help patients.

Other agenda items for the group include working to correct the tax code and improve the banking situation for cannabis companies. NCR will also be working to help states enact their own cannabis legislation.

Boehner has come a long way since his days as the Speaker. At one time he was very vocally anti-marijuana and opposed the very legislation he will now be fighting for. Since his time as Speaker, Boehner joined the board of one of the largest cannabis companies Acreage Holdings Inc. (ACRG.U) and has described his opinion towards cannabis as “evolved.”

“As the cannabis industry grows and matures, it’s vital that we work together for a common-sense legal framework for cannabis policy,” Speaker Boehner said in a statement. As membership grows, he says, NCR will be comprised of growers, processors, retailers, wellness centers, investors, entrepreneurs, and publicly traded companies. Acreage Holdings is a founding member of the group.

Edible company Plus Products is another company that has joined forces with the group. “As the Cannabis industry matures, leading companies have a responsibility to help keep the public safe and well informed,” said Jake Heimark, CEO of PLUS. “Our mission at PLUS is to make cannabis safe and approachable and we are excited to help further that mission by being an inaugural participant in the National Cannabis Roundtable.”

“As the top edible company in the largest state, we look forward to helping shape the national dialog around cannabis consumption and make sure the cannabis industry takes a responsible role in keeping consumers safe,” said Jennifer Tung, PLUS’ Chief Risk Officer.



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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