Business Archives - Page 3 of 174 - Green Market Report

Video StaffVideo StaffJanuary 10, 2020

1min2780

Youngevity (NASDAQ: YGYI) is a health fitness supplement company that wants its CBD products to go from farm to shelf. Green Market Report met with the company at the NASDAQ Marketsite where executives rang the closing bell. We had a chance to speak with Dr. James Rouse, actress Marilu Henner, and Youngevity CFO David Briskie. Thank you for watching the Green Market Report! Be sure to subscribe to our channel to get the latest videos on the cannabis industry from the business point of view.


Video StaffVideo StaffJanuary 10, 2020

4min3380

Green Market Report is getting closer to its first event focusing on the Investment Opportunities for Psychedelic companies. Psychedelics are gaining attention as a treatment for conditions like drug-resistant depression. We’re super excited to present this Summit on January 24 in New York City. Go to www.greenmarketsummit.com for more details. 

A new Ontario-based limited partnership created to buy cannabis-based real estate businesses called Subversive Real Estate Acquisition REIT closed on its initial public offering by raising $200 million.

Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House have terminated a deal to combine. Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

GrowGeneration Corp. (NASDAQ: GRWG) reported revenue of $80.0 million for the 2019 fiscal year-end, an increase of $51.0 million or 176% versus 2018. The revenue for the fourth quarter of 2019 was $26 million versus $9.1 million for the same time period in 2018.

KushCo Holdings Net revenue increased 38% from last year’s fiscal first quarter to $35.0 million. The net loss was roughly $12.5 million versus last year’s $8.6 million. The company also said it was off to a positive start with the recently launched hemp trading desk, which is on pace to achieve $25 million in revenue for fiscal 2020

Emerald Health Therapeutics, Inc. has agreed to the second tranche of funding for the company for approximately $4.5 million.

Hightimes Holding Corp. told investors that it accepted the resignation of Kraig G. Fox as the Company’s Chief Executive Officer and President Effective December 24, 2019. On January 6, 2020, Stormy Simon, one of the Company’s independent directors and former President of Overstock.com Inc., was appointed to the position of Chief Executive Officer of the company by the board of directors.

Vireo Health International, Inc. (CNSX: VREO)(OTCQX: VREOF) announced that workers at its Maryland MaryMed voted overwhelmingly to ratify a Collective Bargaining Agreement and officially join the ranks of United Food and Commercial Workers Local 27 (UFCW27).

SOL Global Investments Corp.’s  (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with  Goldstream Minerals. CannCure will be called “Bluma Wellness Inc.” with operations in Florida via One Plant Florida which is also known as 3 Boys Farm and in California with premium flower cultivator Northern Emeralds. It’s expected to close on or about March 31.  

Ericka Pittman is officially joining Viola as its new CMO. The new c-suite appointment marks the first hiring of an African American female CMO of a multi-state cannabis operator.


Kaitlin DomangueKaitlin DomangueJanuary 9, 2020
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7min2590

Its time for your Daily Hit of cannabis financial news. 

On the Site

Dixie Brands Says Michigan Market A High Point For Sales

Dixie Brands Inc. (CSE: DIXI.U) (OTCQX: DXBRF) said that it closed out the Michigan market in 2019 on a high note. By entering a packaging and supply agreement with Choice Labs, Dixie grew its sales by 108% and increased dispensary penetration by 33% in the fourth quarter. Chuck Smith, President and CEO of Dixie Brands Inc., said “Expanding into the great state of Michigan was a priority for Dixie in 2019 and the incredible results we have managed to achieve so quickly are a testament to the strength of our brands and the expertise of both our production and commercial teams. And this is only the beginning! With the approval of recreational use, we expect the market to grow exponentially and Dixie’s portfolio is well-positioned to expand on its market-leading position into 2020 and beyond.”

SOL Globals’ CannCure To Go Public Through Reverse Merger

SOL Global Investments Corp.’s  (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with  Goldstream Minerals Inc. (NEX: GSX.H). The companies entered into a letter of intent dated January 8, 2020, outlining the proposed terms and conditions.  Goldstream will buy a 100% interest in CannCure and then do a reverse takeover by the shareholders of CannCure. The deal is expected to close on or near March 31, 2020. 

In Other News

KushCo Holdings

KushCo Holdings, Inc. (KSHB) reported financial results for its fiscal first quarter ended November 30, 2019. Net revenue increased 38% from the prior-year quarter to $35.0 million. The net loss was approximately $12.5 million, compared to approximately $8.6 million in the prior-year period. Basic and diluted loss per share was $0.12 compared to $0.11 in the prior-year period. On a Non-GAAP basis, excluding the impact of certain non-recurring charges and gains, net loss for the quarter was $9.2 million and net loss per share was $0.09.

KushCo reiterates its net revenue guidance for fiscal 2020 to be between $230 million and $250 million. The Company also reiterates that included in this financial guidance is its expectation that net revenue from its hemp trading business will exceed $25 million for fiscal 2020. KushCo also reiterates its expectation to achieve positive adjusted EBITDA on a quarterly basis in the second half of fiscal 2020.

Trulieve Set to Open New Storefront in Northwest Florida

Trulieve Cannabis Corp. (CSE: TRUL & OTCQX: TCNNF) a leading cannabis company based in the United States, is on track to open their Fort Walton Beach storefront on January 10th. The location will be their 43rd in Florida and their 45th nationwide. “Trulieve is focused on creating a strong customer-centric experience, and that starts with ensuring that patients across Florida have access to the medications they’ve come to rely on. Expanding our reach inside the Florida Panhandle is just one of the ways we’re doing that. Our well-trained staff is ready and willing to assist patients during every step of the process, from exploring medical cannabis for the first time to transitioning into a new treatment process.”, says Trulieve CEO Kim Rivers. Patients can find THC and CBD products in Trulieve’s stores, in a variety of consumption methods. The store will host a grand opening event on January 10th. 

Halo Announces Closed Acquisition of Mendo Distribution and Transportation

Halo Labs Inc., acquired Mendo Distribution and Transportation for $4.95 million. The deal is set to be paid for using Halo’s common shares. The transaction is expected to increase revenue and gross margins across all Californian operations, extend distribution capability in Northern California, launch new edible and white label product lines with Type N license onsite, and reduce overall distribution costs and potentially manufacturing & distribution tax rates.


StaffStaffJanuary 9, 2020
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4min3210

SOL Global Investments Corp.’s  (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with  Goldstream Minerals Inc. (NEX: GSX.H). The companies entered into a letter of intent dated January 8, 2020, outlining the proposed terms and conditions.  Goldstream will buy a 100% interest in CannCure and then do a reverse takeover by the shareholders of CannCure. The deal is expected to close on or near March 31, 2020.

CannCure will be called “Bluma Wellness Inc.” with operations in Florida via One Plant Florida which is also known as 3 Boys Farm and in California with premium flower cultivator Northern Emeralds. The company said that the LOI was negotiated at arm’s length.

“Bluma will continue to execute on its plan to cultivate and deliver to patients and consumers the highest quality cannabis flower and flower derived products in the coveted Florida marketplace via One Plant Florida, and in California with premium flower producer Northern Emeralds. Bluma will also remain laser-focused on the responsible scale-up of its operations in both Florida and California with a continued focus on its proprietary home delivery model paired with strategically located flagship stores (that will also serve as delivery hubs) and efficient and data-driven premium flower cultivation”, said SOL Global CEO Brady Cobb.

Cobb, who is currently the CEO of SOL Global, will move over to become the CEO and Chairman of Bluma Wellness. SOL Global also stated that it will be the largest shareholder of Bluma. Former CannCure shareholders will become Bluma Shareholders.

“It has been an honor to lead one of the most dynamic and forward-thinking cannabis investment companies, and it’s has been my distinct privilege to work alongside our dedicated team as we assembled an amazing portfolio of cannabis, CBD and Esports investments” continued Brady Cobb. “My strengths have always been on the operations side, and I’m thrilled at the prospect of being able to focus exclusively on scaling up our operations in Florida and California and delivering value to our shareholders.”

Goldstream is listed on the NEX board of the TSX Venture Exchange, the company plans to delist the Goldstream shares from the NEX and then move to the Canadian Stock Exchange. SOL Global will stay at the CSE and the company said that it will not change its business to “that of a life sciences issuer operating as a multi-state cannabis operator in the United States.”

Valuation

In addition to the reverse takeover announcement, SOL Global also reported that Canadian firm Duff & Phelps completed a valuation of its portfolio of private and public investments and concluded that the value of the Investment Portfolio, as at November 30, 2019, was in a range between $165.2 and $182.4 million with a midpoint of $173.8 million.

The company said that it has 54,459,256 common shares issued and outstanding and the valuation implied an NAV per share of approximately $1.70. The stock was lately trading at 40 cents per share with a market cap of $19 million as per Yahoo! Finance.


Debra BorchardtDebra BorchardtJanuary 9, 2020
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5min3200

Dixie Brands Inc. (CSE: DIXI.U) (OTCQX: DXBRF) said that it closed out 2019 in the Michigan market on a high. The cannabis brand company entered the Michigan cannabis market through a packaging and supply agreement with Choice Labs in February of 2019. It helped Dixie grow its sales by 108% and increased dispensary penetration by 33% in the fourth quarter.

“Expanding into the great state of Michigan was a priority for Dixie in 2019 and the incredible results we have managed to achieve so quickly are a testament to the strength of our brands and the expertise of both our production and commercial teams,” said Chuck Smith, President, and CEO, Dixie Brands. “And this is only the beginning! With the approval of recreational use, we expect the market to grow exponentially and Dixie’s portfolio is well-positioned to expand on its market-leading position into 2020 and beyond.”

According to the Detroit Free Press, Michigan is the second-largest medical cannabis market in the country with over 300,000 registered medical cannabis patients driving $30 million in annual retail sales. The state just initiated its legal adult-use cannabis sales in December and that market is projected to grow to $1.5 billion by the end of 2021. Still, the rollout has been slow with only 21 retail licenses awarded and roughly 80% of the cities in the state have opted out. Recreational marijuana sales managed to hit $6.5 million in December alone.

Dixie says it chose its partner will as Choice Labs is one of only four processors that were given a recreational license. Dixie said it launched its portfolio of branded products in early 2019 and then quadrupled the number of available SKU’s by the end of April in response to the positive reaction from both retailers and consumers. Since launching in February of 2019, Dixie has established itself as a powerhouse brand in the state with over 70% dispensary penetration and demand consistently outstripping supply.

CEO Chuck Smith spoke with Green Market Report in June of 2019 and said, “We had said at the beginning of the year that we were going to open up between four and six new states that would be adding to the four states that we already have. So, our goal is really in between eight and 10 new states. Oklahoma is our sixth.”

 

 

 


StaffStaffJanuary 8, 2020
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8min3160

It’s time for your Daily Hit of cannabis financial news for January 8, 2020.

On The Site

Justice Grown

A multi-state cannabis operator, Justice Grown, was recently awarded five total licenses across two states. The company was awarded two licenses in Utah and three in Missouri. The recent approval of these licenses brings Justice Grown’s operations to a total of seven states. In addition to Missouri and Utah, the company operates in Illinois, California, Pennsylvania, New Jersey, and Massachusetts.

The competition for aspiring commercial cannabis cultivators in Missouri was fierce. With almost 600 applicants and only 60 spots, hundreds of groups were out thousands of dollars and the countless hours that were put into their applications. The Missouri Department of Health and Senior Services has already been sued by Sarcoxie Nurseries, who felt the ruling on approved cannabis cultivation facilities was unjust. In Utah, the competition for “medical cannabis pharmacies”, as Utah calls dispensaries, was even tougher with only 14 total licenses awarded, and a maximum of two licenses per company. Justice Grown’s pharmacies will be in Salt Lake City and St. George, Utah.

Subversive REIT

A new Ontario-based limited partnership created to buy cannabis-based real estate businesses called Subversive Real Estate Acquisition REIT closed on its initial public offering by raising $200 million. Making this the largest post-market correction equity capital raise to date. Subversive REIT also began trading its Class A Restricted Voting Units on the NEO Exchange as NEO:SVX.UN.

Deal Is Off

As the cannabis industry faces pressure, the valuation retractions have caused several proposed deals to unravel. The lastest is between Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF). Bhang and its wholly-owned operating subsidiary, Bhang Corporation has terminated its agreement with Origin House and its wholly-owned subsidiary, Kaya Management, Inc.

With regards to the termination agreement, Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

In Other News

GrowGeneration

GrowGeneration Corp. (NASDAQ: GRWG) reported revenue of $80.0 million for the 2019 fiscal year-end, an increase of $51.0 million or 176% versus 2018. The revenue for the fourth quarter of 2019 was $26 million versus $9.1 million for the same time period in 2018.

The company did not release the full report of its earnings. The press release on its revenue did not include any information on profits or losses. It did note that same-store sales were up 62% for the quarter versus last year’s fourth quarter and same-store sales were up 36% for the fiscal year 2019 versus 2018.

Darren Lampert, Co-Founder and CEO, said, “The Company’s fiscal year ending 2019 record financial results reflect our continued focus on revenue growth and EBITDA expansion. Revenue was up 176% year over year to $80 million. Our same-store sales were up 62% Q4 2019 versus Q4 2018. For the full year, same-store sales were up 36% versus full year 2018. Our online business is now branded GrowGen.Pro and is being integrated as part of our omni channel strategy with all our stores locations, ” Order online and Pickup in store”. GrowGeneration Management Corp, our commercial division, is now approaching a $20 million segment of the business. The Company completed the rollout of its new ERP platform and all of our store operations are on our ERP platform. The GrowGen ERP platform is designed to lower costs, improve departmental productivity, integrate our online and store sales and supply channels and provides forecasting and reporting tools.

The Green Solution

The Green Solution (TGS), with 21 dispensary locations in Colorado, has launched a new, budget-friendly flower line, Sunlit Farms, available now at all locations. Starting at only $13.95 per eighth, Sunlit Farms is the dispensary’s most affordable bud yet. The new flower has sativa, indica and hybrid options, with varieties including Moon Gas, Satan’s Spinach, High-Key, Green Frostbite, Bruh and Gassed. Sunlit Farms flower is pre-packaged whole bud value flower from both indoor and outdoor grows.

Front Range

Front Range Biosciences announced today an extended partnership with Aligned Distributing LLC. Since 2019, Front Range Biosciences and Aligned Distributing have had a sales partnership, and the extended multi-year agreement makes Front Range Bioscience’s world-class hemp varieties a fixture of Aligned Distributing’s national product portfolio.

Aligned Distributing sells equipment and supplies to indoor and field cultivators across the United States and Canada. As the uses for industrial hemp expands, farmers in various regions and climates have begun to add the crop to their rotations. The partnership leverages Aligned Distributing’s national market presence to enhance Front Range Bioscience’s sales and distribution capabilities of reliable seeds, seedlings and rooted cutting designed for successful yields.

Gage Cannabis

Gage Cannabis Co. will open Cookies, a new flagship cannabis provisioning center in the heart of Detroit, with a mammoth blue street party. Cookies is a cannabis brand in North America and will be located at 6030 E. 8 Mile, Detroit.

 

 


StaffStaffJanuary 8, 2020
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5min2820

It’s time for your Daily Hit of cannabis financial news for January 7, 2020.

On The Site

Vireo Health

Vireo Health International, Inc. (CNSX: VREO)(OTCQX: VREOF) announced that workers at its wholly-owned subsidiary, MaryMed, LLC  voted overwhelmingly to ratify a Collective Bargaining Agreement and officially join the ranks of United Food and Commercial Workers Local 27 (UFCW27).

The company said that the three-year agreement will be the first medical cannabis union contract ratified in the State of Maryland. The contract will cover employees working in Vireo’s 20,000 square-foot Hurlock, Maryland-based manufacturing facility, which supplies precisely formulated medical cannabis products to third-party dispensaries throughout the state.

Legislation

With the start of a new legislative session kicking off this week, cannabis enthusiasts are hopeful for a year of progress on cannabis bills like the SAFE Act to jumpstart the industry out of its current lull and bring more legitimacy to its legalization movement. Well, keep waiting.

Despite Congress’ holiday break, President Donald J. Trump has been impeached by the House of Representatives and the Senate is going to have to act at some point, leaving cannabis and every other possible issue on the back burner. I take that back, cannabis won’t be on the back burner, it won’t even be in the kitchen.

In Other News

1933

1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) said that it has readied its California operations to begin manufacturing its line of proprietary CBD wellness products with full-spectrum CBD for the ever-growing California dispensary market, as well as debuting its Alternative Medicine Association (AMA)-branded THC products for the first time in that state.

With a cultivation area of approximately 10,000 sq. ft. and with an additional 10,000 sq. ft. of shared manufacturing and distribution space in the Los Angeles area, the California facility will serve as the Company’s main distribution hub for deliveries across the state. After a successful trial run of 30,000 units now completed, full spectrum CBD Canna Hemp™ products will be available at dispensaries later this month, once the products undergo required laboratory testing. Product offerings will include Canna Hemp™ relief creams, elixirs, lotions, capsules, vape pens and cartridges as well as Canna Hemp X™ recovery creams and elixirs. The Company anticipates its first harvest from the California facility during the first week of February with a second harvest the following week. The Company expects monthly harvests to yield approximately 100 lbs. of craft-grown flower or its Blonde™ and AMA brands as well as concentrates.

C3 Industries

C3 Industries (C3), a premium cannabis producer and retailer headquartered in Ann Arbor, has completed ground-up construction of a new indoor cannabis cultivation and manufacturing facility in Webberville, Michigan. The facility began operating in November and is expected to reach full production capacity in Q1 2020.

Sweet Dirt

Sweet Dirt LLC, a Maine-based cannabis company, and ArchSolar, a national provider of environmentally sustainable greenhouses, have partnered to build out a state-of-the-art 32,800 square foot extreme-light deprivation greenhouse.

Construction on the greenhouse will begin January 2020 and the facility will be located at Sweet Dirt’s headquarters in Eliot, Maine, where voters last November overwhelmingly approved an ordinance and licensing procedure allowing for adult use cannabis cultivation, manufacturing and retail operations.

New Dispensary For Franny’s

Franny’s Farmacy is opening the doors of their latest dispensary located at 2361 W Broad St #10 Athens, GA 30606 on Thursday, January 23rd. The Grand Opening lasts the entire weekend until Sunday, January 26th. North Carolina’s first female hemp farmer and Franny’s Farmacy Owner, Franny Tacy and CEO, Jeff Tacy will be on-site Thursday, January 23rd and Friday, January 24th to discuss the benefits of hemp-based products for adults, infants, and even pets.


StaffStaffJanuary 8, 2020
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5min7000

A new Ontario-based limited partnership created to buy cannabis-based real estate businesses called Subversive Real Estate Acquisition REIT closed on its initial public offering by raising $200 million. Making this the largest post-market correction equity capital raise to date. Subversive REIT also began trading its Class A Restricted Voting Units on the NEO Exchange as NEO:SVX.UN.

While most cannabis companies have been struggling as money quickly dried up, this raise was done in less than two weeks. Particularly notable was that it was done in December when most people were focused on the holidays.  The company said that the initial tranche of capital will potentially be allocated to only a portion of Subversive REIT LP’s broader pipeline of high-quality real estate assets. Particularly those in need of non-dilutive growth capital to fund high-ROI investment opportunities like expansion into new geographical markets.

The Subversive REIT brings together three cannabis industry-leading investment companies, including Subversive Capital, an investment firm with a diverse portfolio and which raised $575 million in 2019 for a cannabis special-purpose acquisition company (SPAC) called the Subversive Capital Acquisition Corp. (NEO: SVC.A.U), The Inception Companies,  a private opportunistic investment firm based in Beverly Hills and London and Canaccord Genuity. Inception REIT’s management team launched a private, independent platform in 2018 providing real estate capital solutions to leading operators in the U.S. cannabis industry, is managing the SPAC.

Subversive REIT said it looks to provide capital to top cannabis operators via real estate sale-leasebacks transactions across retail and industrial assets. Richard Acosta, founder and CEO of Inception REIT, as well as founder and CEO of IA REIT Advisors (external manager of Inception REIT), will be heading Subversive REIT as director and CEO.

Selling Assets

Numerous cannabis companies have begun selling their real estate assets as a way to generate cash. The leaseback model has worked as a way to maintain their business location while monetizing a valuable asset. Most cannabis companies found that in the early days of the industry, banks were unwilling to lend money for mortgages and most were forced to buy buildings. Landlords were also unwilling to rent their buildings to cannabis companies and this added to the challenge of finding a place to do business.

Several companies like MedMen (OTC: MMNFF)and Acreage Holdings (ACRG.U)created separate real estate companies that would buy the buildings and then set up the lease arrangements. Innovative Industrial Properties (NYSE: IIPR) was the first REIT to identify this opportunity within the cannabis industry and has been handsomely rewarded for being first to market.

 

 


Debra BorchardtDebra BorchardtJanuary 8, 2020
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3min3190

As the cannabis industry faces pressure, the valuation retractions have caused several proposed deals to unravel. The lastest is between Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF). Bhang and its wholly-owned operating subsidiary, Bhang Corporation has terminated its agreement with Origin House and its wholly-owned subsidiary, Kaya Management, Inc.

With regards to the termination agreement, Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

Bhang has said that it will use Trava, Inc. and Herban, Inc. to make Bhang-branded products in California. In addition, Bhang said that it has also contracted Shelf-Life Distributing to distribute these Bhang-branded products across California. The company stated that moving from a licensing model to a direct-to-retail model will allow it to control the use of its brand while substantially increasing its footprint throughout California and realizing operations-derived revenue rather than royalties.

Last month,  the company said that Jamie L. Pearson, Bhang’s Interim President, would assume the role of President & CEO, overseeing day-to-day management and strategic initiatives

Origin House

Earlier this week, Origin House said that it had received a final order from the Ontario Superior Court of Justice approving the plan for Cresco Labs Inc. to buy all of the shares of Origin House. The company said it expected to close the deal soon. Originally announced in April, this deal was valued at C$1.1 billion or C$12.68 per Origin House Share (based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29). The deal looked to be the largest public company acquisition in the history of the U.S. cannabis industry.

The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.

Origin House has not made a comment regarding the termination of the deal with Bhang.



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


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