Public Archives - Green Market Report

Debra BorchardtJanuary 26, 2023
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3min3340

The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (US-OTC: TGODF) is changing its name from “The Green Organic Dutchman Holdings Ltd.” to “BZAM Ltd.” In addition to changing the company name, the ticker symbol will also switch from TGOD and TGODF to “BZAM” on the CSE and “BZAMF” on the OTCQX. TGOD acquired the shares of BZAM in November 2022 resulting in one large shareholder owning 49.5% of the company.

“This Name Change marks a new era,” said Matt Milich, Chief Executive Officer of the company. “It reflects our larger portfolio of brands and facilities, and our ability to reach a broader consumer base to realize our vision of being one of Canada’s favorite sources for cannabis.”

The company’s new corporate website, www.BZAM.com, will launch following the completion of the name change. BZAM Cannabis is a multi-licensed Canadian cannabis producer focused on branded consumer goods, cultivation, processing, and people. The BZAM Cannabis family includes core recreational cannabis brands BZAM, -ness, and TABLE TOP, and partner brands Dunn Cannabis, FRESH, SuperFlower, and Snackbar.

Earlier this week, The Green Organic Dutchman released 1,142,857 common shares held in an indemnity escrow account upon the closing of the acquisition of Galaxie Shares, to two vendors of the Galaxie Shares. The remaining 7,428,571 common shares held in the indemnity escrow account will be returned to the treasury and canceled. In addition, an aggregate of 1,120,226 common shares of the “BZAM Shares” will be issued to the company’s largest shareholder, at a deemed issuance price of $0.596 per BZAM Shares.

The company also announced that Mr. Bassam Alghanim has been appointed Chairman of the Board, effective as of January 24, 2023. Alghanim was recently named to the board to fill the vacancy left by the resignation of Mr. Tony Moschella. Alghanim managed and expanded Alghanim Industries, a multi-national conglomerate. Later, Mr. Alghanim spearheaded the acquisition of a controlling stake in Gulf Bank, becoming Chairman in 1999. After leading Gulf Bank for over nearly 10 years, during which it experienced profound growth, Mr. Alghanim moved on to hold diplomatic posts.


John SchroyerJanuary 24, 2023
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2min5210

Montreal-based Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) was slightly profitable for its first financial quarter of 2023, with $2,209 in net income against $7.7 million in revenue, the company reported.

The vertically integrated Canadian marijuana company also spent $2.7 million to expand its footprint, increase headcount, and bring 14 new product lines to market during the quarter, which ended Nov. 30 last year. The quarter was the second in a row in which Cannara turned a profit, according to a news release.

“We continued to execute on Cannara’s growth plan,” said CEO Zohar Krivorot in the release, lauding the “hard work” of company employees.

Revenues were up 57% year-over-year. Cannara also bucked the layoff trend, increasing its staffing levels from 190 workers a year prior to 280 employees in the latest quarter

In addition, Cannara expanded its cultivation footprint by opening a new Valleyfield facility, the seventh of 24 planned grow operations, which will have 25,000 square feet of canopy apiece. That brings Cannara’s cultivation capacity to 175,000 square feet, and two more facilities are already in the works.

The company also entered the British Columbia market, while maintaining its market share in other provinces, and is poised to enter the Alberta market as well.


Debra BorchardtJanuary 19, 2023
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5min36400

Innovative Industrial Properties, Inc. (IIP)(NYSE: IIPR) announced that its rent collections have dropped from 100% at this time last year to just 92% for the month ending January 31, 2023. The company said it had collected 97% of its rent at the end of December. The company’s stock was plunging by over 14% on the news to lately sell at $94. This is a huge drop from the 52-week high of $211.

The cannabis REIT (Real Estate Investment Trust) outlined the various cannabis companies that have slipped in their rent payments.

Missed Rent Payments

IIP reported that SH Parent, Inc. also known as Parallel was in default on its obligations to pay rent at one of IIP’s Pennsylvania properties (approximately 2.9% of invested/committed capital). However, IIP did note that rent was paid in full through January 31, 2023, on all other IIP properties leased by Parallel.

In addition to Parallel, Green Peak Industries, Inc. (Skymint) was in default on its obligations to pay rent at one of IIP’s Michigan properties under construction (approximately 2.7% of invested/committed capital). However, rent was paid in full through January 31, 2023, on all other IIP properties leased by Skymint.

In California, Affiliates of Medical Investor Holdings, LLC (Vertical) were in default on their obligations to pay rent at IIP’s California properties (approximately 0.7% of invested/committed capital).

Lease Adjustments

IIP also made changes to some lease agreements to include cross-default provisions and/or extend lease terms in exchange for limited base rent deferrals. One California property and one Michigan property leased by Holistic (approximately 1.8% of invested/committed capital in the aggregate) have used security deposits in order to pay the leases. In addition to that, one Missouri property leased by Calyx Peak, Inc. (approximately 1.2% of invested/committed capital) received a 100% base rent deferral through March 31, 2023, with pro-rata payback over the following 12 months and an extended term of the lease, with no other adjustments to lease terms.

There is also trouble with the Kings Garden, which has said it is looking for a merger. For now Kings Garden is paying rent for the four properties in California that it continues to occupy, including rent on the capital invested in the expansion project which is a part of the lease of one of the properties. However, there are two properties that were leased to Kings Garden and it seems the company is trying to get leave. The San Bernardino property (approximately 192,000 rentable square feet), which IIP said it is actively evaluating alternative non-cannabis uses for the property due to market conditions in California and changes in the zoning of the property. The Cathedral City property (approximately 23,000 rentable square feet), which IIP said it has executed a letter of intent to lease the property and is negotiating lease terms with the potential tenant. However, IIP said there can be no assurance that it will lease the property on the terms anticipated, or at all.

Portfolio

IIP says it now owns 110 properties located in 19 states, representing a total of approximately 8.7 million rentable square feet (including approximately 1.9 million rentable square feet under development/redevelopment).  The company states that no tenant represents more than 14% of the total portfolio and no state represents more than 16% of the total portfolio. Parallel accounted for 10% of the company’s rental revenues and PharmaCann accounted for 12%. As Parallel defaulted on its debts, many were wondering if the company was continuing to pay rent on its properties and now that question has been answered. Multi-state operators (MSOs) represent 85% of the operating portfolio and public company operators represent 55% of the operating portfolio.

With regard to the balance sheet, the company stated the following:

  • 12% debt to total gross assets, with approximately $2.6 billion in total gross assets.
  • Total quarterly fixed cash interest obligation of approximately $4.2 million.
  • No secured debt.
  • No debt maturities until May 2026, other than $6.4 million principal amount of 3.75% Exchangeable Senior Notes in 2024.

Dave HodesJanuary 17, 2023
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6min9260

Yesterday, Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, released its financial results for the quarter ending November 30, 2022.

The company is one of the few in the industry reporting revenue growth, for the most part, because of its area of business concentration as a provider of therapy treatment services involving ketamine and Spravato.

Revenue grew 618% year-over-year to C$5.7 million. Their gross margin grew to 41.9% from 31.5% in the fourth quarter of 2022, with a gross profit of C$2.4 million, representing an increase of C$1.1 million.

The company ended the quarter with a cash position of C$26.4 million, down from C$41.8 in the previous quarter ending May, 2022, and also showed a net loss of C$6.2 million—C$1 million more than in 2021.

“We’re very pleased with the momentum that is building across all aspects of our business and the trajectory we’re on, making Numinus the first publicly traded psychedelic-focused company to achieve profitability, which we believe is likely to occur in the next 18 to 24 months,” Payton Nyquvest, founder and CEO of Numinus, said during the earnings call.

The company’s clinical network during Q1 2023 completed more than 19,774 client appointments, including one-on-one and group therapy sessions, neurology-related appointments, paid group programs, ketamine-assisted psychotherapy (KAT), transcranial magnetic stimulation (TMS) and ketamine/spravato medicine appointments, representing a 13.7 percent increase in clinic appointments compared to more than 17,000 appointments in Q4 2022.

Numinus had 138 practitioners providing client treatments through its wellness clinics and virtual services, a 13.1 percent increase from the beginning of the quarter.

The company was especially busy during the end of 2022, launching a new financing option for clinic patients in Canada and expanding its ketamine-assisted therapy offering to its Toronto location in September.

Then on October 28, 2022, Numinus announced the launch of its Ketamine for Chronic and Serious Medical Illness Program, a new program to be introduced in clinics in Utah, British Columbia and Quebec.

All this is seen as good news for the company by investors. The stock rose 13.64% on the Toronto exchange on the financial report news, though earnings per share were down slightly. Analysts positioned the company as a strong buy, according to Yahoo finance.

Future plans include establishing Numinus as a key provider of psychedelic-assisted therapy training during this quarter, Nyquvest said that they submitted a clinical trial application to Health Canada to conduct experiential psilocybin-assisted therapy training research. “This new experiential training study will enable practitioners training to provide psilocybin-assisted therapy the ability to experience and observe psilocybin sessions and further our understanding of the treatment,” he said. “It is one of the first training programs with an experiential option, and something that further differentiates our broader practitioner training program from others offered.” 

Numinus is initially launching the program at their clinic in Vancouver but expects to expand it to other locations.

Nyquvest also noted that the company has focused on acquiring and adapting clinics that can meet the needs of psychedelic-assisted therapy protocols to be used in the future, ensuring their clinics have therapy rooms large enough to comfortably hold a patient and two therapists, with the appropriate soundproofing and patient access to private bathrooms. “Not all wellness clinic companies currently offering ketamine-assisted therapy have taken the same strategy, and we’re confident that Numinus is the best-positioned clinic network to offer MDMA or psilocybin-assisted therapies as soon as they’re approved.”

Nyquvest concluded his remarks by noting that the main focus is now around practitioner recruitment. “It’s about just filling the capacity that we’ve got as we get prepared for some of these other psychedelic products that we anticipate coming online early next year,” he said.


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