Business Archives - Page 3 of 341 - Green Market Report

Kaitlin DomangueJuly 29, 2021
2104-16-1230-scaled.jpg?fit=1200%2C797&ssl=1

9min6880

Smoking cigarettes indoors has been shown to reduce a home’s resale value by up to 29%, says Realtor.com. When it comes to buying a cannabis enthusiast’s home, the resale value research is less clear, though 30% of realtors say they have struggled to sell a house where cannabis was grown. A recent study conducted by the National Association of Realtors said 50% of leasing professionals found it wasn’t hard to re-lease a property after tenants smoked cannabis indoors, and the organization “does not have a position on cannabis legalization.”

Legal cannabis raises home value

There’s been a lot of chatter surrounding cannabis and the real estate market. But, what kind of impact do cannabis operations have on property value by simply just existing in the same town or city as your house? According to research by real estate data company, Clever, property values rose by $17,113 more in states where recreational cannabis is legal, compared to states where it’s illegal or just legal at the medicinal level. Not to mention, millions of dollars in tax revenue created. In 2021, average home values increase by $470 for every $1 million increase in overall tax revenue from cannabis. 

Clever combined data from Zillow, the U.S. Census, and other resources to produce their report. 

New businesses, tourism, and jobs all contribute to the increase

When it comes to answering the “why”, that’s a little more complex. According to Clever, there’s a variety of reasons why property values are increasing as cannabis legalization takes place. “Numerous factors determine home values, including the home’s features and condition, the area’s amenities, and local crime rates. Legalizing marijuana can impact each of these criteria in ways that are both predictable and surprising — particularly by creating fresh demand for housing, new businesses, and tourism,” says the report. 

We often look to Colorado as a model representing cannabis’ potential in different states. Legalization brought Colorado a wave of new business, and the crime rate also dropped. Also, hotel revenue rose by $130 million in the first year after Colorado legalized, according to a study conducted by Penn State

Key Findings

  • Home values increased by $6,338 from 2017 to 2019 in states where cannabis is legal in some form, compared to states that haven’t legalized at all
  • On average, home values increase by $470 for every $1 million increase in tax revenue
    • Eight states reported a full year of tax revenue generated from cannabis sales in 2020, totaling $2.3. $1 billion of that being California sales alone. 
    • The seven states (plus D.C.) who haven’t yet sold a year’s worth of legal cannabis are predicted to collect $601 million in new annual tax revenue.
  • Home values are predicted to increase by an average of $61,343 in states that have legalized recreational cannabis, but sales aren’t yet taking place.  
    • California has seen the biggest increase in home values, up by $128,341 since 2017, among states that have legalized at the recreational level
  • Cities with more dispensaries are positively correlated with higher home values, suggesting legalization boosts jobs and economic growth.
    • In cities with recreational dispensaries, home values increased by $22,090, compared to states where recreational cannabis is legal but not yet being sold in retail locations
    • Property values increase by $519 with each new dispensary a city adds

According to Clever’s future predictions, home values will increase by more than $60,000 on average.

Looking at tax revenue

When it comes to tax revenue, where does it all go? Different states allocate their tax revenue towards different things, but according to a report by Urban Institute, education programs (including community colleges and pre-K schools) are the most likely to benefit. 

Oregon, for example, donates 40% of its tax revenue to the state’s school fund, accumulating $180,252,103 between 2017 and 2021. Arizona recently legalized cannabis for recreational consumption, and they plan to follow suit by donating 33% of their tax revenue to the state’s community colleges. 

Other states use their tax revenue for different things, like Washington, where the tax revenue goes towards a healthcare trust account to provide basic healthcare services to people without insurance. Ranked from most to least common, here’s how different states use their cannabis tax revenue: 

  • Education programs
  • Substance abuse education and treatment programs
  • Reparations for those negatively affected by the War on Drugs/criminal justice reform
  • General funds
  • Transfers to local governments
  • Administrative costs of initiating new laws
  • Public health and safety programs
  • Law enforcement, crime reduction, and fire departments
  • Transportation and infrastructure
  • Programs for conservation
  • Programs for veterans

Cannabis’ impact on local communities

This is just another piece of evidence supporting cannabis’ positive impact on local and state economies. According to Leafly, the legal cannabis industry supports 321,000 full-time jobs across the United States, adding 77,300 of those last year. Not to mention the tax revenue generated from legal cannabis sales. Criminal justice reform, education, substance abuse treatment, and local governments all benefit from the new source of revenue. 

As the cannabis industry continues to grow, we see it positively affects more than just consumers. 


StaffJuly 28, 2021
daily-hit.jpg?fit=700%2C394&ssl=1

7min5330

It’s time for your Daily Hit of cannabis financial news for July 28, 2021.

On The Site

Tilray

Tilray, Inc. (Nasdaq: TLRY) reported financial results for the full fiscal year and fourth quarter ending May 31, 2021. In the fourth quarter, net revenue increased 25% to $142.2 million from $113.5 million for the same time period last year. Cowen & Co. had estimated revenue to be $163 million for the quarter making this a fairly large earnings miss. Investors though seemed pleased with the results as the stock was trading higher by over 10% in early trading to lately sell at $14. Cowen’s price target is $23.

Canopy

Seth Rogen’s cannabis company Houseplant and Canopy Growth Corporation (NASDAQ: CGC) have decided to end their relationship after three years. It won’t affect the company’s U.S. business and the product is expected to remain on some shelves through September 2021. The relationship between Houseplant and Canopy started in 2018, well ahead of Canadian legalization. The Canadian cannabis market has evolved substantially since those days, and the parties believe the time is right for the Houseplant brand to develop independently while Canopy advances its focus on wholly-owned brands for the Canadian market.

IM Cannabis

IM Cannabis Corp. (NASDAQ: IMCC) is buying R.A. Yarok Pharm Ltd. also called Pharm Yarok, Rosen High Way Ltd., and High Way Shinua. Ltd. by IMC Holdings Ltd., a wholly-owned Israeli subsidiary. The deal is valued at C$4.6 million. The acquisition is expected to integrate assets that include a license to sell medical cannabis to patients (including the ability to sell online), a large customer service center, a virtual store, and online properties, intellectual property, a logistics, and warehousing center with specialized storage space for over 350 kg of medical cannabis as well as a large customer base.  IMC said it expects to be able to consolidate the financial results of Pharm Yarok, Rosen High Way, and HW Shinua as of the date of executing the definitive share purchase agreements and prior to Closing.

Cannara

Cannara Biotech Inc. (OTCQB: LOVFF) announced its third-quarter results for the period ending May 31, 2021, with total revenue of $7.2 million, including $5.9 million in cannabis sales, net of excise tax. this was a huge gain over last year’s $763,906. The net income for the company was $1.7 million versus last year’s net loss of $2.5 million.

GrowGen

GrowGeneration Corp. (NASDAQ: GRWG ) is at it again and the latest acquisition is HGS Hydro, the nation’s third-largest chain of hydroponic garden centers, with six stores across Michigan and a seventh store slated to open in the fall of 2021. This transaction is expected to close before the end of the fiscal year-end 2021. Founded in 2015 by Rocky Shaeena, HGS Hydro is the largest chain of hydroponic garden centers in the state of Michigan and generated approximately $50 million in revenue in 2020.

In Other News

Field Trip

Field Trip Health Ltd. (OTCQX: FTRPF) has received final approval from The NASDAQ Stock Market to list its common shares on the NASDAQ Global Select Market. The Company’s shares will begin trading at market open on Thursday, July 29, 2021 with the ticker symbol FTRP. Hannan Fleiman, Field Trip’s President, said “Listing on the Nasdaq Global Select Market, NASDAQ’s top tier, is a mark of achievement and stature for listed companies who must meet the highest the highest financial and liquidity qualifications for inclusion.”

Cybin

Cybin Inc. (NEO: CYBN) (OTCQB: CLXPF) announced the pricing of its previously announced overnight marketed offering of an aggregate of 8,824,000 common shares in the capital of the company at a price of $3.40 per share for total gross proceeds of $30,001,600.


StaffJuly 28, 2021
David-McCullough-6178-crop-1.jpg?fit=755%2C753&ssl=1

6min5370

Prior to being appointed CTO of Akerna, David McCullough served as Akerna’s Executive Vice President of Product & Engineering, overseeing all software development, development operations, quality assurance, automations, systems, and security operations. He has 16 years of Software Engineering experience. Before joining Akerna, he was the CTO of StudentPublishing.com, where he actively managed the technical aspects of Student Publishing’s sale to and systems integration with lulu.com. David has extensive government systems experience and was also a professor at New Mexico State University where he taught courses in data communications and networking. 

 

GMR Executive Spotlight Interview Q & A:

 

Title:

Chief Technology Officer (CTO)

Company:

Akerna

Years at current company:

Six

Most successful professional accomplishment before cannabis:

Before David’s work in cannabis, he invented an online self-publishing software that allows schools and children to create and publish books online to be published as physical books and returned to the writer.

Company Mission:

We are passionate about solving problems that better our world. Akerna provides data-driven cannabis solutions worldwide across the entire cannabis supply chain. Our technology empowers the cannabis industry to prove outcomes that positively change lives every day.

Company’s most successful achievement:

Our CEO, Jessica Billingsley, co-founded the company that invented seed-to-sale tracking in 2010. This was done upon identifying the need for organic material tracking and compliance SaaS solutions in the nascent cannabis industry. We recognized that due to the unique complexities and needs of the industry, cannabis needed technology built for it specifically, not just adapted from other industries. We believed visibility across the entire supply chain from seed-to-sale would be a requirement for the industry’s sustained growth. Today, this type of tracking is a requirement of most states that regulate legal cannabis.

In 2017, we launched MJ Platform, the cannabis industry’s first ERP in response to the maturing of the cannabis market to multi-state enterprise businesses. We also led international expansion in the cannabis technology sector very early on in 2012 in Canada then into Spain. Today, our total footprint spans 23 states and 15 countries. Innovation and seeing what opportunities are next on the horizon – and then being ready for them first – has been a hallmark of Akerna since the inception of our flagship product MJ Freeway.

In 2019, Akerna became the first cannabis software business to be traded on a major U.S. exchange, Nasdaq (ticker KERN). This listing was an unprecedented milestone for the cannabis industry and signified a shift in beliefs and generated ripples of opportunity for the future of the industry.

Since then, we have grown the Akerna family to include many leading cannabis and alcohol technology solution s: Ample Organics,  Last Call Analytics,  Leaf Data Systems,  MJ Freeway/MJ Platform, solo sciences, Trellis, and Viridian Sciences.

Today,  Akerna is the cannabis industry’s only scaled technology provider, enabling compliance, regulation, and taxation. We provide the single most comprehensive product ecosystem for cannabis operators that have businesses across any part of the supply chain, from seed-to-sale. This provides transparency and accountability along virtually every piece of the supply chain.

Over the past decade, we have seen much change in the political and social environments surrounding cannabis. As we prepare for a post-legalization landscape and the industry continues to consolidate and mature, we firmly believe the enterprise capabilities we offer, including comprehensive compliance solutions and financial reporting integrations, will become increasingly crucial to the future leaders of the cannabis industry.

Has the company raised any capital (yes or no): 

Yes

If so, how much?

Since going public Akerna has raised $22,000,000

Any plans on raising capital in the future?

 We feel we are well capitalized today and continue to have institutional support and access to the markets should the need arise.  We are always carefully evaluating the needs of the business to maximize long-term shareholder value. 

Most important company  5  year  goal:

To be the dominant provider of technology to the cannabis, hemp, and CBD industries, while also serving additional verticals by providing complete accountability and transparency to what consumers are putting in and on their bodies.


StaffJuly 28, 2021
Doobie-Press-Release-Bag-v2.png?fit=1200%2C727&ssl=1

5min5020

Doobie now provides cannabis delivery service to medical marijuana patients throughout the St. Louis market.

As more states open up to cannabis retailers, the natural progression is to offer delivery services. Doobie, a leading on-demand cannabis delivery platform, announced that it is expanding delivery services to medical marijuana patients in Missouri, a state where medical marijuana is legal. 

In partnership with JANE Dispensary, located in St. Louis, Doobie will be the first company to provide medical marijuana delivery in the state. Doobie’s co-founder Joseph Rubin says, “We’re proud to be the first delivery company to provide medical marijuana to patients in Missouri. Finding a partner like JANE, who has the best selection of products in the state, makes it that much more exciting.” Missouri is part of Doobie’s expansion plan, which includes Boston, New York and Los Angeles.

Since Missouri is a medical market, having delivery available will provide a significant benefit to patients that aren’t able to easily leave the house or are uncomfortable going into a dispensary. Doobie provides delivery in an easy, discreet, and safe way to get patients their medicine. Patients can view their favorite products through an online platform at trydoobie.com or get recommendations from Doobie customer service consultants over the telephone at 1-888-8DOOBIE (1-888-836-6243). 

The online platform at trydoobie.com is a streamlined, mobile-optimized shopping experience. You can browse popular products by category or brand, and if there are any questions, Doobie expert cannabis consultants are available via chat and phone. After checkout, you can track your delivery in real time, just like when you order from your favorite restaurants. 

Before ordering, patients must have a Missouri marijuana card, which may take around 4 to 6 weeks to receive. Patients must meet certain health requirements and receive a completed Physician Certification Form from a licensed doctor in person or online from companies like Elevate Holistics, Heally, or Missouri Marijuana Card. After the visit, patients must then register for the Missouri Medical Marijuana Program using the online Complia application  portal. The Physicians Certification for Medical Cannabis Form will need to be submitted via the application portal on the Missouri Department of Health and Senior Services’ online registry along with a $25 fee. The Missouri State Health Department will mail you a Missouri medical card within 30 days.

Due to Missouri medical marijuana regulations, all cannabis orders must be paid for before they go out for delivery. Doobie and JANE use an electronic payment service called Hypur that provides a cashless option that is safe, convenient, and reliable. Hypur is simple to use and eliminates the hassle of cash.

Doobie delivery service is available in many cities and counties throughout the St. Louis area including Saint Louis City, Saint Louis County, Saint Charles County, Franklin County, Jefferson County, Warren County and Lincoln County, and Doobie is offering free delivery through the end of August. 


StaffJuly 28, 2021
Houseplant-scaled.jpg?fit=1200%2C675&ssl=1

4min6350

Seth Rogen’s cannabis company Houseplant and Canopy Growth Corporation (NASDAQ: CGC) have decided to end their relationship after three years. It won’t affect the company’s U.S. business and the product is expected to remain on some shelves through September 2021. The relationship between Houseplant and Canopy started in 2018, well ahead of Canadian legalization. The Canadian cannabis market has evolved substantially since those days, and the parties believe the time is right for the Houseplant brand to develop independently while Canopy advances its focus on wholly-owned brands for the Canadian market.

“The recent launch of Houseplant in the United States has given us a clear benchmark for what Houseplant stands for, and how we plan to bring the brand to life globally,” says Michael Mohr, Co-Founder and CEO, Houseplant. “While our collaboration with the Canopy team has been fruitful and we continue to hold similar views on the opportunities ahead, we believe the time is right for us to focus on Houseplant independently.”

During these three years, Houseplant has become a popular consumer brand in Canada and is currently a top 10 brand in the premium cannabis market in Ontario. Beverages are a highlight of the brand’s success, with Houseplant Grapefruit notably attaining the top-selling cannabis beverage spot in Canada (measured by units sold) in its launch year. More than one million cans of Houseplant beverages were sold in Canada within the last year.  Houseplant launched a line of premium homewares and cannabis products in the United States in March 2021 and has quickly become a cultural and industry leader.

Canada is where it all started – for us as people, and for the brand,” says Houseplant Co-Founder Seth Rogen. “This is not an exit from the Canadian market, but a chance for us to evolve the brand.” Houseplant plans to relaunch in the Canadian market in the future with products more consistent with its US offerings.

“We’re proud of our collaboration with Houseplant. Together, we’ve delivered high quality and innovative products to Canadian consumers and played a critical role in defining the premium cannabis category in Canada,” said Rade Kovacevic, President and Chief Product Officer, Canopy Growth. “As we move forward, Canopy will advance our focus on our wholly-owned brands for the Canadian market and we wish the Houseplant team the best in their future endeavors.”

 

 

 


Kaitlin DomangueJuly 28, 2021
pexels-wendy-wei-1537638-scaled.jpg?fit=1200%2C800&ssl=1

6min13400

Lollapalooza was cancelled last year due to the COVID-19 pandemic, but the famous music festival is back at Grant Park this year, starting tomorrow and ending on Sunday. Not only is this the festival’s first post-COVID comeback, after being canceled last year, but also the decades-old event’s first run since Illinois’ adult cannabis market took off in 2020. 

Chicago cannabis sales expected to increase as Lollapalooza kicks off tomorrow 

According to cannabis market research firm, BDSA, out-of-state travelers coming to Lollapalooza is expected to boost dispensary sales in Chicago. 

If you’re not familiar with the event, we’ll do our best to paint a picture of the massive music festival. Lollapalooza happens every year in Chicago, at Grant Park. In 2019, 400,000 people attended Lollapalooza, along with a few medical transports and arrests. Unfortunately, one person also died, which drew negative criticism towards the event’s safety protocols as another festival goer also died the year prior. Needless to say, the event brings a large crowd and plenty of room for cannabis sales to soar. 

Drug use is popular at Lollapalooza

Now that cannabis can be purchased legally in Illinois, one might wonder if the consumption of illegal, potentially unsafe drugs will decrease at the festival. The details surrounding the 2019 Lollapalooza death weren’t released, but the 2018 death of a 16-year-old was confirmed to be an overdose. Among the top five preferred drugs at Lollapalooza, alongside smoking cannabis and drinking alcohol, are MDMA, cocaine, and LSD, according to a survey conducted by global travel magazine, Time Out. One third of those surveyed have smoked cannabis in Grant Park, while more than 70% drank alcohol. 

Opt for vaping or eating edibles

Don’t let this give you any ideas. Smoking cannabis is prohibited per Grant Park’s rules, but more discrete methods of consumption like vaping and eating edibles will still be popular and play a major role at the festival. BDSA says 38% of consumers report taking cannabis gummies for their convenience. Just be mindful of the summer temperature! Gummies might melt into a jelly-filled mess or lose cannabinoids under extreme heat, so leave excess gummies at home or in your hotel room. 

Vape sales are likely to increase

Vape sales saw a small jump during Lollapalooza in 2019, with Friday, August 2nd, recording the highest dollar sales for vapes that month. Dispensaries in the River North and West Loop areas, like Sunnyside, Modern Cannabis (MOCA), and Dispensary 33 are likely to see the biggest growth in sales from the festival. 

According to BDSA, 30% of Illinois consumers take cannabis when going out or taking part in high-energy activities, while 36% of consumers say cannabis plays a role in celebrations or important events. 

Chicago’s sweet history 

You may or may not know Illinois’ Windy City, Chicago, has a rich candy making history. It’s been considered the “candy capital of the world” since the late 1800s. Iconic brands like Tootsie Rolls, Brach’s, Wrigley Gum, Fannie May, and Mars Candy all have Chicago roots. If they play their cards right, the city already has their foot in the cannabis edibles door. 

Chicago-based Cresco Labs is dominating the edibles market, churning out batches and batches of gummies and other cannabis edibles for Illinois dispensary shelves. It’s a good market to join. According to Chicago-based Brightfield Group, edibles made up 21% of cannabis sales last year, trailing behind consumers’ all-time favorite category: flower. The Brightfield Group predicts edibles will grow 20% annually through 2025, compared to flower growing 15% over the same period of time. The cannabis industry’s total sales are expected to reach $41 billion by 2026. 

Lollapalooza will be held starting tomorrow, July 29th, to Sunday, August 1st in Chicago’s Grant Park. Proof of vaccination or negative COVID test is required to attend. 


StaffJuly 28, 2021
shutterstock_1232348650.jpg?fit=960%2C720&ssl=1

4min5310

IM Cannabis Corp. (NASDAQ: IMCC) is buying R.A. Yarok Pharm Ltd. also called Pharm Yarok, Rosen High Way Ltd., and High Way Shinua. Ltd. by IMC Holdings Ltd., a wholly-owned Israeli subsidiary. The deal is valued at C$4.6 million.

The acquisition is expected to integrate assets that include a license to sell medical cannabis to patients (including the ability to sell online), a large customer service center, a virtual store, and online properties, intellectual property, a logistics, and warehousing center with specialized storage space for over 350 kg of medical cannabis as well as a large customer base.  IMC said it expects to be able to consolidate the financial results of Pharm Yarok, Rosen High Way, and HW Shinua as of the date of executing the definitive share purchase agreements and prior to Closing. The collective current annual revenue run rate of Pharm Yarok, Rosen High Way, and HW Shinua is approximately $8 million with an expected positive EBITDA of approximately $1 million.

“The Israeli medical cannabis market continues to grow and evolve very rapidly. Pharm Yarok is one of the leading medical cannabis retailers in Israel, selling approximately 1,000 kg of medical cannabis per year and serving over 2,000 patients per month. The Acquisition significantly advances our retail expansion strategy, initiated earlier this year through the acquisition of Panaxia-to-the-Home’s distribution and in-house pharmacy activities,” said Oren Shuster, CEO of IMC. “We expect that the continuation of our vertical integration strategy will increase our purchasing power with suppliers, create potential synergies with our established call center and online operations and provide for additional margin on direct sales and up-sells across a growing range of products. We welcome the Pharm Yarok and Rosen High Way management teams and employees, along with their expertise in retailing and branding.”

Acquired Companies

Pharm Yarok is a leading medical cannabis pharmacy located in central Israel. Pharm Yarok serves more than 2,000 medical cannabis patients per month. Pharm Yarok is located in Netanya, a city in central Israel, and has been serving patients since June 2020.

Rosen High Way is a trade and distribution center providing medical cannabis storage, distribution services, and logistics solutions for cannabis companies and pharmacies in Israel and HW Shinua is an applicant for a medical cannabis transportation license from the Israeli Medical Cannabis Unit. If the license is received it would permit HW Shinua to transport large quantities of medical cannabis to and from Pharm Yarok’s pharmacy and Rosen High Way’s distribution center and to and from third parties in the medical cannabis sector, including medical cannabis growing facilities, pharmacies, manufacturers and distribution centers across Israel.

The transaction consists of approximately $4.6 million in cash, of which $1.3 million shall be invested in IMC in consideration for IMC’s equity by the shareholders of Pharm Yarok, Rosen High Way, and HW Shinua.


StaffJuly 28, 2021
Cannara.jpg?fit=960%2C467&ssl=1

4min3980

Cannara Biotech Inc. (OTCQB: LOVFF) announced its third-quarter results for the period ending May 31, 2021, with total revenue of $7.2 million, including $5.9 million in cannabis sales, net of excise tax. this was a huge gain over last year’s $763,906. The net income for the company was $1.7 million versus last year’s net loss of $2.5 million.

“This quarter’s results are a testament to our strategy’s efficacy and management’s focus,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “With impressive revenue generation in our first full quarter of sales in retail market, the closing of our additional $5 million private placement, and headline acquisition of our latest one million square foot facility in Valleyfield, we are now positioned among the country’s leading cannabis producers.”

Cannara said it sold approximately 1,400 kg of cannabis it had in inventory from previous harvests for a total value of $1,265,000.

“Our positive net income and strong gross margins confirm our operational excellence, uniquely lean company structure, and continued growth,” said Nicholas Sosiak, Chief Financial Officer of Cannara. “Cannara’s core competence is our differentiated model that underscores our ability to excel at maximizing the use of our resources. We are executing against this proven model, as we continue to scale our business in the next chapter of our growth roadmap.”

Following the end of the quarter, Cannara acquired a one million sq. ft. state-of-the-art cultivation facility from The Green Organic Dutchman Ltd. (“TGOD”) for $27 million, providing it with the ability to reach an annual cultivation capacity of 125,000 kg of premium-grade cannabis. The company also launched an additional six SKUs in the market under the Tribal and Orchid CBD brands in June 2021 and released three new cannabis genetics, Cuban Linx, Do-Si-Dos, CBD Runtz, in dried flower and pre-roll formats

On the financial side, Cannara closed private placements of $24.3 million priced at a premium to the market price at the time of the transaction and $5.7 million in convertible debentures bearing interest at 4% to fund the acquisition of the Valleyfield facility and related working capital expenditures. It converted the company’s existing $5 million credit facilities bearing interest at 13% into a convertible debenture bearing 4% interest and subject to a statutory hold period of four months and one day from the date of issuance.

In addition, it uplisted to the TSX Venture (TSXV) from the Canadian Stock Exchange (CSE) on April 8, 2021, reflecting the company’s maturity and the commercialization of its operational strategy.


StaffJuly 28, 2021
growGeneration-logo.jpg?fit=960%2C609&ssl=1

4min7450

GrowGeneration Corp. (NASDAQ: GRWG ) is at it again and the latest acquisition is HGS Hydro, the nation’s third-largest chain of hydroponic garden centers, with six stores across Michigan and a seventh store slated to open in the fall of 2021. This transaction is expected to close before the end of the fiscal year-end 2021. Founded in 2015 by Rocky Shaeena, HGS Hydro is the largest chain of hydroponic garden centers in the state of Michigan and generated approximately $50 million in revenue in 2020.

“We are excited to add HGS Hydro to our portfolio of stores before year-end, with its impressive leadership and commercial teams. The addition of HGS Hydro will propel Michigan to GrowGen’s second-largest state behind California. Michigan is one of the fastest-growing states for medical and recreational cannabis sales.” said Darren Lampert, GrowGen’s CEO. “We look forward to building on HGS Hydro’s experience as we continue to expand our commercial footprint. This acquisition represents our continued focus on purchasing ‘best of breed’ hydroponic operations in the U.S. and strengthening our management team with seasoned veterans from our industry.”

When completed, the transaction will also bring the total number of GrowGen hydroponic garden centers in Michigan to 14 and the total number of stores to 65. The new GrowGen locations will include Shelby TownshipSouthfieldSterling HeightsHazel ParkWalled LakeAlbion, and Imlay City, Michigan. GrowGen will announce its second-quarter results on August 12.

“The combination of HGS Hydro and GrowGeneration will further solidify GrowGen’s leadership position as the nation’s largest chain of hydroponic garden centers. As one of the pioneers of our industry, we are excited to bring our years of experience, insight, and relationships to the GrowGen team to assist in the Company’s continued growth and success,” said HGS Hydro’s CEO Rocky Shaeena.

“At HGS Hydro, my biggest priority has always been serving our loyal customers and providing an abundance of inventory at all times.  We have grown tremendously as a company in the past, and I believe merging with GrowGeneration will help us continue to grow with the best service and selection possible for our customers,” said Chris Kiryakoza, HGS Hydro’s COO.


Debra BorchardtJuly 28, 2021
Tilray-BetterTogether-2.png?fit=960%2C470&ssl=1

5min5890

Tilray, Inc. (Nasdaq: TLRY) reported financial results for the full fiscal year and fourth quarter ending May 31, 2021. In the fourth quarter, net revenue increased 25% to $142.2 million from $113.5 million for the same time period last year. Cowen & Co. had estimated revenue to be $163 million for the quarter making this a fairly large earnings miss. Investors though seemed pleased with the results as the stock was trading higher by over 10% in early trading to lately sell at $14. Cowen’s price target is $23.

Tilray said the increase was driven by 36% growth in net cannabis revenue to $53.7 million, which included four weeks of contribution from legacy-Tilray, a 10% decline in distribution revenue, net beverage alcohol revenue of $15.9 million following the SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest. The net income of $33.6 million during the fourth quarter was a big improvement over last year’s net loss of $84.3 million.

Full Year Results

Tilray reported that its fiscal 2021 full-year net revenue increased 27% to $513.1 million from $405.3 million in 2020. This also missed the Cowen & Co. estimate for a full fiscal year of revenue at $685 million. The company said the increase was driven by 55% growth in net cannabis revenue to $201.4 million, which included four weeks of contribution from legacy-Tilray, 1% growth in distribution revenue to $277.3 million, net beverage alcohol revenue of $28.6 million following the SweetWater acquisition on November 25, 2020, and wellness revenue of $5.8 million from Manitoba Harvest due to the Tilray reverse acquisition on April 30, 2021. The net loss of $336.0 million in 2021 was much higher than the net loss of $100.8 million in 2020. The company said this was driven by $63.6 million of transaction costs related to out-of-pocket fees to consummate the business combinations and $170.5 million of non-cash unrealized loss on our convertible debentures.

“Early results from the new Tilray affirm that, while the global cannabis market remains in its early stages, our vision, scale, access to resources, and operational excellence position us optimally to capitalize on the opportunity,” said Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer. “In a very short period of time since our business combination was finalized, we transformed and strengthened Tilray, delivered solid results amid continued COVID-19 lockdowns and restrictions, and achieved $35 million in synergies to date – well on our way to delivering $80 million in cost savings over the next 16 months.”

Since the Quarter Ended

The company has made progress with its SweetWater brand. In July, it announced the launch of 420 Imperial IPA, the first line extension off of its flagship 420 brand. The company also announced its West Coast expansion including a new Colorado Brewery and the opening of SweetWater Mountain Taphouse at Denver International Airport. In June, the company announced the first cross-brand product collaboration between Canadian craft-cannabis brand Broken Coast and SweetWater to launch U.S. distribution of “Broken Coast BC Lager” and introduce the cannabis brand to consumers across the country.

Tilray completed and shipped its first successful EU GMP-certified medical cannabis harvest grown in Germany for German distribution. In Canada, Tilray launched its new medical cannabis brand, Symbios. Symbios is the inaugural brand from the ‘new’ Tilray developed to offer patients a broader spectrum of medical cannabis formats and cannabinoid ratios at a better price point.

Looking Ahead

Looking ahead, Tilray said it expects to deliver significant cost synergies totaling approximately $80 million within eighteen months of closing the Aphria Tilray business combination and plans to achieve cost synergies in the key areas of cultivation and production, cannabis and product purchasing, sales, and marketing, and corporate expenses. To date, Tilray said it has achieved $35 million in synergies.


Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

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 – 10 hours

$JAZZ has big plans for drug . Helping more children with other forms of #epilepsy…

@GreenMarketRpt – 1 day

$GRAMF Parent Company Buys Jayden’s Journey Dispensary

Back to Top