Business Archives - Page 2 of 196 - Green Market Report

StaffStaffApril 3, 2020
stock-1863880_640.jpg

12min2330

Horizons ETFs Management Inc. has completed the quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) and the Horizons US Marijuana Index ETF (NEO:HMUS).

This quarter, four companies were removed from HMMJ’s portfolio:

Deletions

Company Name

Ticker

Exchange

Abacus Health Products Inc.

ABCS

Canadian Securities Exchange

Agraflora Organics International Inc.

AGRA

Canadian Securities Exchange

Flower One Holdings Inc.

FONE

Canadian Securities Exchange

CBDMD Inc.

YCBD

New York Stock Exchange

Performance Update as of March 31, 2020,

1
Month

3
Month

6
Months

YTD

1
Year

Annualized
Since Inception**

HMMJ

-15.28%

-28.36%

-45.68%

-28.36%

-69.05%

-9.55%

NAMMAR Index

-17.27%

-32.10%

-43.98%

-32.10%

-69.91%

-15.89%

TX60AR Index

-15.30%

-18.48%

-16.49%

-18.48%

-11.68%

-0.79%

HMUS REBALANCE

Launched in April 2019, HMUS is the world’s first U.S.-focused marijuana index ETF. HMUS seeks to replicate, to the extent possible, the performance of the US Marijuana Companies Index, net of expenses. This index is designed to provide exposure to the performance of a basket of publicly-listed companies having significant business activities in, or significant exposure to, the marijuana or hemp industries in the United States. Constituents of this index are selected from Canadian and U.S. exchanges. While some securities may be listed on major North American exchanges, the majority of the securities currently trade on North American exchanges that include but are not limited to the Canadian Securities Exchange and the Aequitas NEO Exchange.

This rebalance resulted in the removal of six companies from the portfolio:

Deletions

Company Name

Ticker

Exchange

Abacus Health Products Inc.

ABCS

Canadian Securities Exchange

Body & Mind Inc.

BAMM

Canadian Securities Exchange

Ignite International Brands

BILZ

Canadian Securities Exchange

Green Growth Brands Inc.

GGB

Canadian Securities Exchange

Plus Products Inc.

PLUS

Canadian Securities Exchange

CBDMD Inc.

YCBD

New York Stock Exchange


Debra BorchardtDebra BorchardtApril 3, 2020
Acreage2.png

6min4300

Acreage Holdings, Inc.  (CSE: ACRG.U) (OTCQX: ACRGF) has hit the reset button as the company lays off 122  employees and kills the Deep Roots among other measures. The company blamed the COVID19 virus and other “uncontrollable factors.”

The company also said it was suspending its previous 2020 financial targets and will provide a more detailed update on its first-quarter earnings call tentatively scheduled for May 13, 2020.

“Although we are facing difficult times, I remain optimistic about the U.S. cannabis industry and Acreage in particular,” said Acreage Chair and Chief Executive Officer, Kevin Murphy. “But as a result of the COVID-19 pandemic, we have made the very difficult decision to furlough several of our employees and close certain facilities while we navigate through the crisis. Additionally, we withdrew from certain agreements with Deep Roots and Greenleaf as circumstances have materially changed. These bold measures will help to ensure that we emerge from this very challenging situation stronger than ever before.”

Acreage recently took measures to raise more capital. On February 7, 2020, the company announced its entry into the Institutional Credit Agreement for a $100 million Institutional Credit Facility was established, with $49 million to be available in March 2020. On the same day, the company also announced its entry into non-binding letters
of intent pursuant to which a subsidiary of Acreage is proposing to enter into the Poppins Credit Agreement to provide cash collateral as security for the Institutional Credit Facility.

Acreage’s management took the following steps according to a company statement:

  • Temporarily furloughed 122 employees across both the corporate office and field operations teams
  • Temporarily closed certain operations, including:
    °  one dispensary in each of Maryland and North Dakota
    °  wholesale operations in Iowa
    °  Form Factory operations in California, Oregon, and Washington
  • Converted its dispensary in Queens, New York, to a delivery hub
  • Terminated the securities purchase agreement among Greenleaf Compassionate Care Center, Inc., GCCC Management, LLC, the equity holders of GCCCM and High Street Capital Partners, LLC relating to the proposed acquisition of a dispensary in Rhode Island

Deep Roots

The merger agreement between Acreage and Deep Roots was announced back in April 2019 and valued at $120 million. The company said it was terminated “due to the ongoing moratorium imposed by the Nevada Department of Taxation.” Acreage said that the delay prevented the parties from obtaining the consents, approvals, and authorizations necessary to consummate the merger prior to the outside date provided in the merger agreement. At the time Deep Roots sold and distributed its Deep Roots, Chillers, Bluebirds, and Helix Twist branded products, and other third-party brands, into nearly 80% of the retail dispensaries in Nevada, making it one of the most connected wholesale operations in the state.

Greenleaf Compassionate Care

The Greenleaf deal stretches back to 2018. According to the company’s MD&A from November 2019, Acreage “entered into a definitive agreement to acquire all ownership interests in GCCC Management, LLC, a management company overseeing the operations of Greenleaf Compassionate Care Center, Inc., a non-profit cultivation and processing facility in Rhode Island, for cash consideration of $10,000. The company is working to resolve regulatory items outstanding prior to closing the transaction.”

Layoffs

Within the 122 employees given pink slips, Acreage also announced the resignation of Steve Hardardt, the Company’s Executive Vice President, Chief People Officer, and Administration, effective immediately.

The company said in its statement, “With the COVID-19 pandemic resulting in a virtual shutdown of significant parts of the United States that is expected to continue for at least the next month and possibly longer, continued construction and regulatory delays in Illinois, California, Massachusetts, Michigan and elsewhere, and in anticipation of a significant economic downturn that will have a yet-to-be-measured impact on the U.S. cannabis industry, the Company re-evaluated its business plan and determined its most prudent path toward profitability.”


Debra BorchardtDebra BorchardtApril 3, 2020
bankruptcy-scaled.jpg

6min2180

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) has placed the company’s CBD business into receivership. This is typically a move to avoid bankruptcy. This was the determination from the company’s special committee of the Board of Directors.

Just a few weeks ago, Green Growth Brands closed down its CBD business, which was operating as the chain of Seventh Sense stores or kiosks. The company stated at that time that the stoppage in business was due to COVID19 and the closing of malls and retail areas. However, the company was struggling prior to the virus crisis.

The consent to the appointment of the receiver was filed on April 2, 2020, with the Franklin County Court of Common Pleas, in Franklin County, Ohio.  Materials related to the filing can be accessed via the Franklin County Clerk of Courts electronic docket, which can be found at https://fcdcfcjs.co.franklin.oh.us/CaseInformationOnline/.

Technically, the CBD Business is operated by six of the company’s subsidiaries: Green Growth Brands LLC, GGB Beauty LLC, GGB Licenses LLC, Green Growth Brands Realty LLC, GGB Kiosks LLC, and GGB GN LLC (collectively, the “CBD Subsidiaries”).  Each of the CBD Subsidiaries will be subject to the receivership order.

Going Concern

Green Growth said that aside from the CBD situation, “there remains a significant risk that the company will be unable to realize sufficient cost savings, find sufficient sources of financing for on-going working capital requirements and maturing debt and other liabilities or to negotiate extensions or alternate payment terms in respect of such debt.” Green Growth is trying to negotiate its obligations and has drawn down all the money available to it through All J’s Greenspace and Chiron Ventures.

All Js advanced approximately $1.5 million from its portion of the previously announced $52.3 million debenture repayment backstop commitment.  The company said it is actively pursuing alternative financing sources but there can be no guarantee that any such financing will be consummated or if consummated on what terms.

The+Source

Green Growth said it will continue to operate its cannabis business in FloridaMassachusetts, and Nevada through its subsidiaries Nevada Organic Remedies LLC, Henderson Organic Remedies LLC, Wellness Orchards of Nevada LLC, Just Healthy LLC, and Spring Oaks Greenhouses Inc.  NOR and Henderson operates the The+Source dispensaries in the Las Vegas, Nevada region, and have recently started a delivery service in response to Nevada Governor Stephen Sisolak’s March 20, 2020 order limiting dispensary operations in the state.  None of the MSO subsidiaries nor any of their respective assets will be subject to the receivership order.

In exclusive reporting by the Green Market ReportGreen Growth attempted to lay off its workers without giving them back pay. Once the story was uncovered, the company was able to secure the money. On Friday, March 20, 2020, Green Growth Brands informed its laid-off workers that they would get paid. A spokesman for the company said, “At the time of the decision, the company remained uncertain of its ability to fund the payroll for the period ending today, March 20, 2020. As of this writing, I can confirm that such funding has been secured, that payroll has been initiated, and that all associates released will be paid for their time worked.”

The spokesman also confirmed that Horvath resigned voluntarily and would receive no severance pay. According to the company’s Management Information Circular, “If Mr. Horvath had been terminated by the Company without cause or had resigned from the Company for good reason as of June 30, 2019, Mr. Horvath would have been entitled to a payment of $2,550,000.”


StaffStaffApril 3, 2020
ProductHeadersChocolate_0053.LGedits-1280x876.jpg

7min2830

Executive Spotlight: Chef Lauren Gockley, Director of Edibles, Coda Signature

Title: Director of Edibles

Company: Coda Signature

Years at current company: Five years—I was one of the original founders when we started Coda Signature in 2015.

Education profile: I’m a classically trained chocolatier. I completed my studies in France at L’Ecole du Grand Chocolat in Tain-l’Hermitage, home of the Valrhona Chocolate Company.

Most successful professional accomplishment before cannabis: I worked my way up in the culinary world for a decade, including upscale restaurants such as Jean-Georges Vongerichten’s Bank in Houston and Thomas Keller’s Per Se in New York. Along the way, I developed a fascination for the potential of chocolate as a superfood—and also how it influences our psyches. It has a powerful ability to transport you to moments of nostalgia, to communicate love, to get you through tough times. I’m proud of the fact that I have been named one of Dessert Professional’s Top 10 Chocolatiers in North America and have gained so much knowledge about natural cacao while working as a raw, vegan chocolatier.

Company Mission: Coda Signature seeks to elevate the sensory experience of cannabis the way music elevates life. Inspired by both classical music and classical confections, Coda Signature creates cannabis-infused products full of imagination. The company has established itself as a leading luxury brand with products featuring bold flavor combinations and top-quality, natural ingredients.

Company’s most successful achievement: We have created a new standard for affordable indulgence in cannabis. Since we launched our original line of hand-painted truffles in 2016, we’ve defied industry norms, both in cannabis and in the mainstream culinary world. At a time when the rest of the industry was taking a formulaic approach to edibles, we were looking for ways to do it differently, experimenting with unexpected flavor combinations and beautiful designs. Now we’re seeing competitors out there bringing new flavors and inventive products, and we hope we’ve inspired the industry as a whole to move forward.

We don’t rest on our laurels, though. My goal is always to find new ways to innovate, whether expanding our medical product portfolio or breathing new life into the infused gummy. When developing products, I aim to create a moment in time. When someone tries a Coda Signature Coffee & Doughnuts chocolate bar, I want them to feel that perfect relaxing moment of a morning coffee break. When someone tastes a Coconut & Lime Fruit Note, I want them to get an immediate beachy, tropical vibe. We infuse our creations with emotion and excitement as much as we infuse them with cannabis.

Has the company raised any capital (yes or no)?: Last year we raised $24.4 million in a  Series A funding round.

Any plans on raising capital in the future? Yes, we are looking to expand our operations to other markets in North America.

Most important company 5-year goal: As consumer tastes change and the culinary world evolves, Coda Signature will be pushing those trends forward in the cannabis world. For instance, we’re seeing demand for more wellness-conscious products, which is why we developed vegan, gluten-free Fruit Notes gummies—more to come there.

We’ll also be prioritizing market expansion. In five years, our hope is that customers across the nation will continue to find their moments of indulgence. Everyone who wants a quality cannabis consumption experience should be able to access it, and with each new market and product offering, we get closer to that goal.


Video StaffVideo StaffApril 3, 2020

4min3540

The pandemic rages on with one CBD company getting a warning letter from the FDA for making unfounded claims. NeuroXPF said it could prevent COVID19 with no science to back up that claim. The FDA quickly responded and told the company to stop or risk legal action.

Despite the pandemic, there were several earnings announcements this week.

HEXO Corp. reported a staggering net loss of C$289 million for fiscal 2020 second-quarter on  net revenue of just $17 million.

Under the cover of darkness Zenabis Global Inc. (TSX:ZENA) delivered its earnings It was 1 am when the company  issued its press release reported that its 2019 net revenue was $66.5 million, while its net loss for the year was $127 million 

 High Tide Inc. reported that Revenue for the quarter increased by 173%, to $13.6 million and The company managed to trim its operating losses to $1.9 million.

MariMed Inc. quarterly revenues increased 50.9% to  $5.19 million, For the full year total revenues grew to approximately $45.6 million.  Net loss for the full year 2019 was $81.2 million due to the bankruptcy of its investment in GenCanna.

In Psychedelic News, MindMed signed a multi-year deal on LSD studies with the laboratory of Professor Dr. Matthias Liechti with the University Hospital Basel in Switzerland.

And Medicinal mushroom company Champignon Brands Inc. (CSE: SHRM) has entered into a definitive agreement to acquire Tassili Life Sciences Corp. in an all-stock deal. Tassili will receive 16 million shares, which is roughly C$7.3 million.

That’s it for this week. Everyone keep up with your physical distancing and stay safe out there.


Noemi GonzalesNoemi GonzalesApril 3, 2020
792399-v0_5-GMR-BC-FB.png

6min2660

“Magic Mushrooms and Marijuana: a Great Trip to Know, Understand the Risks, Cultivate and use Cannabis and Psychedelic Mushrooms even for Medical Use. A High Trip to the Knowledge You Will Not Forget!” by Tommy Smith – Review

 Now here’s a dynamic duo of topics to discuss: cannabis and mushrooms.

Author Tommy Smith has put together a very solid compilation of data focused on helping the reader better understand the risks, how to cultivate, various uses, and other useful information when it comes to both cannabis and magic mushrooms. There is still much inaccurate information prevalent on these topics so the more genuine content we see circulating then all the better.

This book will teach you how to create an ideal environment to grow mushrooms in your home, decide whether or not to grow indoors or out, how to begin growing marijuana, how to identify various types of mushrooms and so much more.

Did you know that around 5,000 BC that the Chinese were among the first cultures to regularly cultivate and consume cannabis?

See? You’re learning already!

-Topic Focus-

So much good content packed into this book about both cannabis and mushrooms. Where to begin?

You will find this book useful if you:

  • Want to learn how to begin growing cannabis
  • Want to learn how to begin growing mushrooms
  • Want to learn about the medicinal benefits of both cannabis and mushrooms
  • Are interested in the history surrounding cannabis and mushrooms

About the Author

“Magic Mushrooms and Marijuana: a Great Trip to Know, Understand the Risks, cultivate and use cannabis and Psychedelic Mushrooms even for medical use. A high trip to the knowledge you will not forget!” author Tommy Smith quickly displays both expertise on these topics and a passion for them as you read this book.

You can tell that Tommy truly cares about sharing this information in the way that the book is written as well as the fact that so much useful content is shared for such a low price. Very generous.

-Reading Experience-

This book gets right to work with no fluff or hyperbole and dives right into the history and starts from the ground up with an introduction to what cannabis is, what THC is, and a brief history of it’s legalization status over the years. It felt like author Tommy Smith just couldn’t wait to start sharing his expertise with the reader.

There are many of us who struggle to learn tasks such as cultivation so having a guide that is simple to follow is an incredibly useful tool. The information presented is done so in a way that is easy to interpret and take action from.

Not only are the medicinal benefits of cannabis and mushroom use discussed here, but so are the potential risks that accompany such use. Many people involved in these industries tend to display consumption in a positive light without discussing potential risks so being willing to address the potential negatives of such consumption lends the writer a degree of credibility.

-Summary-

“Magic Mushrooms and Marijuana: a Great Trip to Know, Understand the Risks, cultivate and use cannabis and Psychedelic Mushrooms even for medical use. A high trip to the knowledge you will not forget!” by Tommy Smith is over 300 pages that get right to work teaching you useful content and is only $6.90 (at the time of writing) so you can’t really go wrong grabbing your copy.

The content is clearly written in a way that communicates how familiar the author is with these topics while also making cultivation feel all the more accessible. If you are not already an expert on cannabis then there is definitely much here for you to dive into. Even the more veteran among us can learn a thing or three from this useful book.

If you are ready to begin your own educational journey regarding cannabis and mushrooms then get your copy here: https://www.amazon.com/Magic-Mushrooms-Marijuana-Understand-Psychedelic

 


StaffStaffApril 2, 2020
daily_hit004-1280x533.png

5min1780

It’s time for your Daily Hit of cannabis financial news for April 2, 2020.

On The Site

NeuroXPF

Within days of proclaiming in social media that its CBD products could cure COVID19, the Food & Drug Administration (FDA) sent a warning letter to NeuroXPF. The letter stated, “We request that you take immediate action to cease the sale of such unapproved and unauthorized products for the mitigation, prevention, treatment, diagnosis, or cure of COVID-19.”

NeuroXPF is a cannabidiol product company founded by former NFL player Kyle Turley. The company boldly went on social media suggesting that by using its products it could help people’s immune systems in the fight against COVID19.

Israel

Israel has been the center of some of the strongest research on cannabis, but for years remained in the research only field. That is beginning to change as more Israeli companies are raising money and more cannabis is being imported to the country.

Pharmaceutical company Panaxia Labs Israel Ltd. (TASE: PNAX) said that it completed a successful fundraising round of 17 million ILS (Israeli shekels)  or approximately $4.6 million by today’s currency exchange. The private placement consists of common stock and warrants to Israeli Institutional Investors: the provident funds, mutual funds, and portfolio management entities of Mor Investment House and Noked Capital Hedge Fund. Total gross proceeds raised, including the exercise of the option by the company, are 23 million ILS.

The Supreme Cannabis Company, Inc.  (TSX: FIRE) (OTCQX: SPRWF)  said that it completed its first international cannabis shipment from Canada into Israel. The Canadian cannabis company said that it partnered with Breath of Life International Ltd., Israel’s largest and a leading producer of medical cannabis and cannabis products, to offer Truverra-branded premium medical cannabis to patients in Israel.

In Other News

Innovative Industrial Properties, Inc. (NYSE: IIPR) closed on the acquisition of a property in Athol, Massachusetts, which comprises approximately 199,000 square feet of industrial space. The purchase price for the Massachusetts property was approximately $26.8 million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement with a subsidiary of Ascend Wellness Holdings, LLC (AWH) for continued operation as a licensed cannabis cultivation and processing facility. AWH is expected to complete tenant improvements for the property, for which IIP has agreed to provide reimbursement of up to approximately $22.2 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property will be $49.0 million. The lease provides for an initial annualized aggregate base rent of 13.5% of the sum of the initial purchase price and tenant improvement allowance, subject to a phase-in of the base rent associated with the tenant improvement allowance at the beginning of the term.

Grown Rogue International Inc. (CSE:GRIN) (OTCQX:GRUSF), a multi-state cannabis company with operations and assets in Oregon, California and Michigan, has released its financial and operating results for the three months ended January 31, 2020. Since Q2 2019, the company has been committed to shifting its business strategy away from low margin, third party product distribution and towards highly profitable Grown Rogue branded product sales. Generated over $150k in positive cash flow from operations for the first time as a public company. Revenue grew 33% year over year to $1.1m, with sales of Grown Rogue branded product more than doubling from 1Q 2019. Net loss was $233k vs last years $4.7m.

Radient Technologies Inc. (OTCQX: RDDTF) announced that it has received the approval from  the TSX Venture Exchange to extend the term of 1,070,712 warrants originally scheduled to expire on April 14, 2020 to April 14, 2021.


Debra BorchardtDebra BorchardtApril 2, 2020
shutterstock_1232348650.jpg

6min3240

Israel has been the center of some of the strongest research on cannabis, but for years remained in the research only field. That is beginning to change as more Israeli companies are raising money and more cannabis is being imported to the country.

Panaxia Labs

Pharmaceutical company Panaxia Labs Israel Ltd. (TASE: PNAX) said that it completed a successful fundraising round of 17 million ILS (Israeli shekels)  or approximately $4.6 million by today’s currency exchange. The private placement consists of common stock and warrants to Israeli Institutional Investors: the provident funds, mutual funds, and portfolio management entities of Mor Investment House and Noked Capital Hedge Fund. Total gross proceeds raised, including the exercise of the option by the company, are 23 million ILS.

In connection with the offering, the company issued 6,319,703  shares of the company’s common stock at a purchase price per share of 2.69 ILS, and warrants to purchase an additional 5,055,762 shares of common stock at an exercise price of 4.00 ILS per share.

The company said it intends to use the proceeds from the financing to advance the execution of its strategic plans, especially the export, the marketing, and the sales in Europe. Among the investors: Panaxia Israel’s Chairman, Mr. Jonathan Kolber, CEO Dr. Dadi Segal, General Manager Assi Rotbart, LL.B., CTO Dr. Eran Goldberg, Mr. Ran Nussbaum, and additional Israeli and foreign investors. Exercise of the option is subjected to, among other conditions, the approval of Panaxia Israel shareholders’ meeting.

Supreme Shipment

The Supreme Cannabis Company, Inc.  (TSX: FIRE) (OTCQX: SPRWF)  said that it completed its first international cannabis shipment from Canada into Israel. The Canadian cannabis company said that it partnered with Breath of Life International Ltd., Israel’s largest and a leading producer of medical cannabis and cannabis products, to offer Truverra-branded premium medical cannabis to patients in Israel.

“This transaction represents a new international revenue opportunity for Supreme Cannabis and builds Truverra’s global medical brand in one of the most sophisticated medical cannabis markets in the world,” said Colin Moore, Interim President and CEO of Supreme Cannabis. “With the support of BOL Pharma, we navigated both Canada and Israel’s complex regulatory landscapes to achieve compliance with regulatory authorities in both countries, including Health Canada, the Canadian Food Inspection Agency and Israel’s Ministry of Health and Ministry of Agriculture and Rural Development. We benefitted from BOL Pharma’s skilled team, international experience and solidified the position as a leading medical cannabis company in Israel. As we pursue capital-light international opportunities, we will continue to look to Jeff Adams, Truverra’s CEO, and his exceptional team to build Truverra’s medical brand globally.”

“We are pleased to address the growing demand for premium indoor grown medical cannabis products in Israel through our first cannabis import from Canada. Supreme Cannabis is a partner that shares our high standards for quality and respect for patients and consumers,” said Dr. Tamir Gedo, CEO of BOL Pharma. “On March 30, Truverra products became available across pharmacies in Israel and we are already receiving positive feedback from patients.”

BOL Pharma has been involved in researching and developing cannabis-based products for 13 years. It is the largest medical cannabis company in Israel and the only one to handle all stages of cultivation and production, ensuring compliance with the strictest standards set by the Israeli Ministry of Health and EU-GMP conditions. BOL Pharma is distributing Truverra’s medical cannabis in 10-gram containers to its network of pharmacies across Israel.


StaffStaffApril 2, 2020
FDA3.jpg

5min1800

Within days of proclaiming in social media that its CBD products could cure COVID19, the Food & Drug Administration (FDA) sent a warning letter to NeuroXPF. The letter stated, “We request that you take immediate action to cease the sale of such unapproved and unauthorized products for the mitigation, prevention, treatment, diagnosis, or cure of COVID-19.”

NeuroXPF is a cannabidiol product company founded by former NFL player Kyle Turley. The company boldly went on social media suggesting that by using its products it could help people’s immune systems in the fight against COVID19.

  • “Crush Corona . . . While scientists around the world are working 24/7 to develop a COVID-19 vaccine, it will take many more months of testing before it’s approved and available. However, there’s something you can do right now to strengthen your immune system. Take CBD . . . CBD can help keep your immune system at the stop of its game. . . . We want everyone to take CBD and take advantage of its potential to help prepare your body to fight a coronavirus infection. So, we’re making all of our products more affordable.” [from your website https://neuroxpf.com]
  • “Crush Corona! Your best defense against the COVID-19 blitz starts with a strong immune system. It’s what protects your body from the everyday attacks of bacteria, viruses, parasites and a host of other nasties. Learn more here: https://neuroxpf.com/crush-corona/” [from March 19 posts on your social media websites https://www.facebook.com/NeuroXPF/ and https://twitter.com/NeuroXPF]

Even people within the cannabis community chastised Turley for making claims that most knew would make it a target of the FDA. It may even have been a big PR stunt as the founder doubled down saying he’d welcome the FDA’s enforcement. He thinks such an action would expose the government for “covering up the potential of the plant.”

FDA Response

The letter stated, “We advise you to review your websites, product labels, and other labeling and promotional materials to ensure that you are not misleadingly representing your products as safe and effective for a COVID-19-related use for which they have not been approved by FDA and that you do not make claims that misbrand the products in violation of the FD&C Act.” The company has two days to make the changes and if it doesn’t it could result in legal action, including, without limitation, seizure and injunction.

CBD & COVID

While top scientists around the globe are looking for a vaccine and top medical workers are trying numerous methods to treat the deadly virus, Turley is basing his information on anecdotal evidence. He says he has had conversations with experts in the field but does not name the experts.

Other cannabis companies have received FDA warning letters in the past and have been able to address those issues and move on. Charlotte’s Web faced such a situation and made the requested changes. It makes selling CBD more challenging since the company can hardly even describe what it does, but Charlotte’s Web has satisfied the FDA and still owns a large market share in the CBD space.

The website does not mention COVID at this time and while Turley continues to state on his Twitter feed that he continues to believe in the effectiveness of CBD for COVID, the NeuroXPF feed does not mention the virus. It focuses instead on brain injury awareness.


StaffStaffApril 1, 2020
daily_hit004-1280x533.png

7min1490

It’s time for your Daily Hit of cannabis financial news for April 1, 2020.

On The Site

MariMed

MariMed Inc. (MRMD:OTCQX) quarterly revenues for the quarter ending December 31, 2019, increased 50.9% to  $5.19 million versus $3.44 million for the same period of 2018. The company attributed the increase to the roll-up up of MariMed’s licensed client businesses in Illinois in the fourth quarter of 2019.  Fourth-quarter 2019 revenues were also bolstered from new distribution channels secured for MariMed’s Betty’s Eddies and Kalm Fusion brands. The company did not disclose the net loss for the quarter.

Full Year 2019

For the full year ending in December, total revenues grew to approximately $45.6 million. Core cannabis sales for the fiscal year 2019 were $16.6 million, a 40.0% increase compared with $11.9 million for the fiscal year 2018. The operating loss for 2019, including the GenCanna receivable reserve, was $41.6 million, compared with an operating loss of $5.4 million for the full year 2018.  Net loss for the full year 2019 was $81.2 million or $0.39 per share, compared with a net loss of $13.6 million or $0.07 per share for the full year 2018.

Muni Bonds

MPG Consulting has recently authored a report looking at the potential of Cannabis Municipal Bonds (CMB).  Adam Orens, Founder of MPG and Sal Barnes, Managing Director, MPG have conducted a theoretical analysis using Colorado showing how the state can translate its cannabis revenue into a short-term bond amount of $166 million and long-term bond issued in the amount of $591 million resulting in $123 million and $438 million available for educational initiatives and infrastructure, respectively.

States and municipalities already use revenue bonds as a way to pay for large projects. The investors of such bonds feel that the risk for these investments is lower since there is a captive source of revenue to pay the interest. The report gives Iowa as an example. That state allocates $55 million in gaming taxes every year to pay the debt on revenue bonds that were issued in 2009 and 2010. That money raised selling these bonds was then used for community revitalization, flood mitigation, and bridge improvement efforts.

Compensation

Canadian cannabis company CEOs have been making big pay packages over the last few years coinciding with net losses. But, they have not been disclosing details required by Canadian law about who they employ to come up with the pay formulas and how much these consultants are paid.

A review of Canadian public filings by Cannabis Law Report has found at least three publicly traded companies who have failed to be transparent in telling shareholders how much they were actually paying their executives.

It appears that some packages could be described as “over-compensation” and were/are making some individuals very wealthy.

In Other News

MindMed

Mind Medicine (MindMed) Inc. (NEO: MMED OTC: MMEDF), the leading neuro-pharmaceutical company for psychedelic inspired medicines, today announced the signing of a multi-year, branch exclusive collaboration with the laboratory of Professor Dr. Matthias Liechti, the world-leading psychedelics pharmacology and clinical research group at University Hospital Basel in Switzerland.

Under the agreement, MindMed gains exclusive worldwide rights to data, compounds, and patent rights associated with the Liechti laboratory’s research with LSD and other psychedelic compounds, including data from preclinical studies and eight completed or ongoing LSD clinical trials. MindMed has already begun working with Professor Dr. Liechti’s laboratory to file patents for the data and clinical trials it has generated over a 10-year period.

Therapix

Therapix Biosciences Ltd.  (Nasdaq: TRPX), a specialty, clinical-stage pharmaceutical company focusing on the development of cannabinoid-based treatments, today announced the pricing of a public offering for the issuance of an aggregate of 4,166,668 units, each consisting of (i) one pre-funded warrant to purchase one American depositary share (“ADS”) and (ii) one Series B warrant to purchase one ADS, at a purchase price of $0.2999 per unit. The Series B warrants will have an exercise price of $0.43 per ADS, will be exercisable upon issuance and will expire five years from the date of issuance.

TGOD

The Green Organic Dutchman Holdings Ltd.  (TSX:TGOD) (OTC:TGODF), a leading producer of premium certified organic cannabis, is pleased to announce that the Company has entered into a $30 million secured revolving credit facility (the “Facility”) with a private lender (the “Lender”) that is secured on accounts receivable and inventory, with a second lien over the Company’s other assets.  The Facility has an initial term of one-year, subject to renewal for up to an additional year.

Upon closing of the Facility, TGOD will be able to draw $10 million.  The remaining $20 million will become available as TGOD ramps up its operations and additional borrowing base becomes available from inventory and accounts receivable generated from operations.  The Company’s existing lender (the “Senior Lender”) has also agreed to advance an incremental $5 million on the Company’s accordion facility, pending the amendment of the existing credit agreement.

 



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 – 5 hours

Our biggest fans this week: RobbinsGroupLLC, WallandBroad, kcsastrategic. Thank you! via

@GreenMarketRpt – 6 hours

More crossover to as $NLBIF Brands To Buy Mushroom Company Mydecine for $850k in stoc…

Back to Top

You have Successfully Subscribed!