Daily Hit Archives - Green Market Report

Kaitlin DomangueKaitlin DomangueFebruary 13, 2020
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4min2380

Its time for your Daily Hit of cannabis financial news for February 13th, 2020. 

On the Site

Meet the Weedy Award Finalists 

The founder and Editor of WeedWeek, Alex Halperin, has created the Weedy Awards, with winners being announced on February 28th in Hollywood. Awards will be presented in categories like best grow, the most socially responsible company, the best delivery company, the best edibles, and the people’s choice cannabis celebrity. 

Aurora Cannabis Stock Slides as Revenue Falls

Canadian-based Aurora Cannabis Inc. (NYSE: ACB) saw its shares falling in early trading after the company said that revenues fell in the second quarter of fiscal 2020 ending December 31, 2019. Aurora reported that its total net revenue reported in Canadian dollars fell 26% sequentially to $56 million in the second quarter from $75 million in the first quarter of 2020. It was higher than the 2018’s second quarter, which delivered net revenue of $54 million.

Neptune Wellness Delivers Solid Quarter as Sales Increase

Neptune Wellness Solutions Inc.  (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for its fiscal third-quarter ending December 31, 2019. Total revenues for Neptune were $9.1 million, a sequential increase of $2.6 million or 41% over the second quarter ended September 30, 2019. This was also an increase of $2.6 million or 40% compared to $6,538 for the three-month period ended December 31, 2018. 

In Other News

SLANG Worldwide Partners with Cali Cannabis Cookie Company 

SLANG Worldwide Inc. (CNSX: SLNG), leading cannabis consumer packaged goods company, has partnered with Cookies, a leading California-based cannabis brand. 

Pursuant to the deal, SLANG will bring Cookies’ products to the Oregon market. 

Cresco Labs Expands C-suite

Cresco Labs will name marketer Greg Butler as its first-ever Chief Commercial Officer. Butler has past supported the brand in a CMO capacity, developing the commercial growth strategy for the brand. He has strong plans to develop Cresco’s market in 2020, as well as promoting diversity and social equity in the cannabis space. 


Kaitlin DomangueKaitlin DomangueFebruary 12, 2020
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2min2060

Its time for your Daily Hit of cannabis financial news for February 12th, 2020. 

On the Site

Kentucky Hemp Farmer Files For Bankruptcy 

GenCanna Global USA, Inc. filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Kentucky. The filing will allow GenCanna to continue to operate its business without interruption to customers, vendors, partners, and employees while working through a reorganization plan that could include the refinancing of the company’s existing indebtedness, or an alternative restructuring transaction such as a sale.

Despite Layoffs, Cannabis Industry Job Growth Continues to Boom

Companies in the cannabis industry have faced a series of layoffs in 2019 and early 2020. Though many jobs were cut, the industry continues to grow at a rapid pace. Its addition of roughly 30,000 jobs last year qualifies it as the fastest-growing job sector in the United States.  

In Other News

Kentucky Medical Cannabis Bill One Step Closer to Reality

Kentucky’s House committee overwhelmingly approved a bill legalizing medical marijuana in the state. The bill, however, might face a snag in the Senate, where there is less enthusiasm about medical cannabis coming into play in Kentucky. Opponents of the bill claim more research is needed before it can safely pass into law for use.


StaffStaffFebruary 11, 2020
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6min2320

It’s time for your Daily Hit of cannabis financial news for February 11, 2020.

On The Site

TILT Holdings

2019 proved to be a challenging year for the companies tied to vape products. Now it looks as if there could be strength in numbers as TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) and its vape subsidiary Jupiter Research, LLC  has partnered with vape device company The Blinc Group, LLC.

The Blinc Group makes proprietary cannabis vaping solutions for MSOs and focuses on control of the entire value chain from R&D to product design, to compliance and manufacturing at ISO and cGMP certified facilities with oversight by Blinc’s China-based quality control team.  Blinc’s Co-Founder and CEO Arnaud Dumas de Rauly said, “We look forward to working closely with Jupiter and bringing additional value and expertise to their extensive network of clients,” said Mr. Dumas de Rauly. “I am excited to see what the future of cannabis vaping landscape holds when two companies like Jupiter and Blinc work closely together to help shape the new standards and set an example for regulatory compliance as a whole.”

Bouquets

The trend of cannabis decorative bouquets, gifts, and arrangements is here to stay. As of January 2020, it was rated one of BDS Analytics Top 10 Cannabis Market Trends for 2019″ and its popularity as a must-have, must-try cannabis item is steadily growing: BDS Analytics › Top Ten Cannabis Market Trends for 2019

Additionally, cannabis florist Cortney Lynn, owner and founder of Bitchin’ Bouquets in Big Bear, California, opened her online business on Dec. 5, 2017. She offers some tips for DIY cannabis bouquets for those looking to complement their weed arrangements and handicrafts:

In Other News

GenCanna

GenCanna Global USA, Inc. announced today it has filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court in the Eastern District of Kentucky. The filing will allow GenCanna to continue to operate its business without interruption to customers, vendors, partners, and employees while working through a reorganization plan that could include the refinancing of the Company’s existing indebtedness, or an alternative restructuring transaction such as a sale.

GenCanna has obtained approximately $10 million in post-petition debtor-in-possession (DIP) financing from its senior lender, which, subject to Court approval, will provide the Company with liquidity to maintain its operations in the ordinary course of business during the Chapter 11 process.

Supreme

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) announced the implementation of a new operating structure, including staff reductions, to drive efficiencies and support long-term, profitable growth. Under the new optimized organization, reporting structures at the corporate level are being streamlined and vendor contracts and support services have been rationalized. Focusing the Company on near-term revenue generating opportunities and creating a more nimble and effective corporate structure resulted in a 33% reduction in employee headcount at a corporate level.

Grown Rogue

Grown Rogue International Inc.  (CSE: GRIN) (OTCQX: GRUSF) announced that on February 10th, 2020 it received a commitment from Cannabis Growth Opportunity Corporation (CSE: CGOC) to invest up to CDN$1,500,000 million in a non-brokered private placement offering with each unit comprising of one common share in the capital of the company and one common share purchase warrant.  Each warrant is exercisable into one share at a price equal to a 25% premium to the unit price for a period of 24 months.

Old Pal

Today Old Pal announced that Kiva Sales and Services (KSS), the states’ leading distribution operator, will be their exclusive distribution partner and the first to service the entire state of California for Old Pal.

This partnership between these two powerhouse brands is projected to more than double Old Pal’s retail availability and will expand KSS’s portfolio of products. Kiva will start to distribute Old pal’s full portfolio of sharable cannabis products to licensed California dispensaries effective immediately. A great benefit to this agreement is that KSS’s logistics capabilities will increase Old Pal’s speed to market and meet the consistently rising demand from California consumers for Old Pal’s products.


StaffStaffFebruary 10, 2020
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6min2330

It’s time for your Daily Hit of cannabis financial news for February 10, 2020.

On The Site

CLS Holdings

While Planet 13 Holdings (CSE: PLTH) (OTCQX: PLNHF)reported that its January sales held strong and that January revenue was roughly 10% higher than the seasonally slow months of November and December. CLS Holdings USA, Inc. (OTCQB: CLSH)(CSE: CLSH) said it saw a drop in its January sales.

Still, the 2020 January sales were better than in 2019. Revenue increased 49% from last year’s $0.73 million to this year’s $1.5 million. The company also reported that its consolidated record gross margin was 52% compared to 39% in January 2019 for an increase of 33%. The company also reported a 136% increase in dispensary customers, from 10,908 (351 average per day) in January 2019 to a record 25,776 (831 average per day) in January 2020.

Investors in 2020

2019 was a rough year for cannabis. Stocks plummeted, just one hurdle of many in the year, and sent some potential investors running. Even big players Aurora Cannabis (ACB), Canopy Growth (CGC) (WEED), and Cronos Group (CRON) fell 52.7%, 32.6%, and 37.4%, respectively, as of a Market Realist article published last November.

Capital in cannabis seemed, and was, tight.

Green Market Report had the pleasure of catching up with Jon Trauben, a partner of Altitude Investment Management, to try and decipher exactly what investors are looking for before they put their coins into cannabis in 2020.

NCIA

Next week is the National Cannabis Industry Association’s first Northeast Cannabis Business Conference. This two-day event will be held in Boston on February 19-20 and features over 150 exhibitors and over 100 speakers.

As Massachusetts has the most advanced legal adult-use market, the Boston location is ideal for the cannabis community to meet and discuss the key topics concerning the industry. The agenda is also regionally focused to help those in the northeast corridor get more involved. Also, since this is a legal state, this expo floor will represent true buyers and sellers of products.

Legislation

2020 started with legislation siding entirely in favor of Cannabis throughout twelve states US (and the District of Columbia). Aside from full legalization, more than 75% of the United States of America have legalized (and decriminalized) Cannabis use. Whether that use is in the form of CBD, restricted to medicinal use, or completely without consequence, America’s legislation is changing rapidly.

The legalization of Cannabis has been a slow, agonizing, and long-overdue struggle that has finally started to see some quantifiable traction. Finally, the taboo haze that has encircled the use of Cannabis is lifted. For the first time in a long time, lawmakers are representing what the people want and what science supports concerning benefits and safety.

Illinois

Complaints from patients across the state prompted an advisory from the Illinois Department of Financial Professional Regulation for dispensary operations across the state on Friday. The complaint was directed at possible shortages of patients’ normal medical purchases, due to recreational sales.

New mandates from regulators state that a dispensary must leave a window open solely for medical sales. Dispensaries must not hold products back for recreational sales. Medical patients must be able to purchase 2.5 times the amount set by a dispensary, for any recreational sales. Cannabis supply for medical patients has eased somewhat, since the first of the year, in the Champaign – Urbana area of Illinois, as of this writing on February 7, 2020.

In Other News

Pyxus International, Inc. (NYSE: PYX) reported that its third-quarter sales and other operating revenues decreased by 30.7% to $363.3 million when compared to last year, due to a decrease in volume and average sale prices. The volume decrease was driven by flue-cured oversupply conditions, shipment timing, and the impact of Hurricane Florence and foreign tariffs in the U.S. Average sale price decrease was driven by a lower concentration of lamina in South American leaf product mix.

Gross profit as a percent of sales improved to 15.2% from 14.2% for the same period last year attributable to favorable foreign currency exchange rate fluctuations resulting in lower leaf green inventory prices in Africa and South America.

Selling, general, and administrative expense increased $4.2 million to $45.9 million when compared to last year mainly due to branding, marketing, and advertising expenses to support Figr cannabinoid brand growth and costs incurred to evaluate and develop plans for a potential partial monetization of interests in subsidiaries in the Other Products and Services segment.

Net loss attributable to Pyxus International, Inc. for the three months ended December 31, 2019, was $22.0 million.


Kaitlin DomangueKaitlin DomangueFebruary 6, 2020
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6min3400

It’s time for your Daily Hit of cannabis financial news for February 6th, 2020. 

On the Site

Planet 13 Cafe Is Paying Off As Sales Stay Strong

 

Las Vegas-based cannabis dispensary Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) reported record-breaking January sales driven by strong traffic and attributed it to the company’s newly opened cafe and event space. The company said that the average ticket size was approximately $100. Planet 13 said that January revenue was ~10% higher than the seasonally slow months of November and December.

CBD Craze Sparks ‘Weed Washing’ Trend

 

Remember the term ‘pinkwashing’? Where companies slapped a pink ribbon on just about anything and claimed to be donating lots of money to breast cancer research? It’s happening again, but this time it’s in the cannabis industry.

“Weed washing” is a disturbing trend that appears to be most dominant in the beauty industry and refers to the act of adding hemp oil that does not contain CBD or only contains a minuscule, non-therapeutic amount to a product in order to capitalize on CBD’s popularity and high price point. 

Psychedelic Clinic Company Field Trip Raises $8.5 Million

 

Psychedelic clinic company Field Trip Psychedelics Inc. closed its oversubscribed Series A financing round. The financing, which was completed through a private placement, raised $8.5 million for the company.

The company said the funds will be used to execute the initial stages of Field Trip’s strategic plan to build out the world’s first network of medical centers focused exclusively on psychedelic-enhanced psychotherapy. In addition to that, the financing will help fund the final construction of its research and cultivation facility at the University of the West Indies in Jamaica. 

South Carolina Kicks Off Hemp Farming Season

 

The South Carolina Department of Agriculture (SCDA) said that it will begin accepting applications for hemp farming, handling and processing permits for the 2020 growing season starting Feb. 1, 2020. Now in its third year, South Carolina’s hemp farming program has grown from 20 farmers in 2018 to 114 permitted farmers and 43 processors at the end of the 2019 season. 

Requirements to receive a hemp farming permit include:

  • Proof of South Carolina residency
  • Criminal background check
  • $100 nonrefundable application fee and $1,000 permit fee
  • GPS coordinates of all locations on which hemp will be grown
  • Attending an SCDA orientation and signing a Hemp Farming Agreement prior to possessing any hemp, including clones and seeds

In Other News

Aurora Cannabis Appoints Two New Independent Directors

 

Lance Friedmann and Michael Detlefsen have been appointed as two new directors for the Canadian cannabis company, Aurora Cannabis. The two have held roles with Kraft Foods and Pomegranate Capital Advisors, respectively. 

Aurora Cannabis Executive Chairman and Interim CEO Michael Singer stated, “We are pleased to welcome Lance Friedmann and Michael Detlefsen as independent members to the board at this critical time in our transformation. We expect to see cannabinoids grow as a category in consumer products and believe their depth of experience and strong track records of successful brand development and operational business transformation will provide helpful insights to our executive team. With the addition of Messrs. Friedmann and Detlefsen, Aurora has expanded its Board, independent directors.”

KushCo Holdings Announces $16 Million Registered Direct Offering

 

KushCo Holdings has announced its entrance to a definitive agreement with investors purchasing stock in the company. The agreement includes 10,000,000 units, with each unit representing one share of common stock. The transaction was set for $0.001 per share, and a warrant to purchase half a share of common stock, at an offering price of $1.60 per unit, pursuant to a registered direct offering.


Kaitlin DomangueKaitlin DomangueFebruary 5, 2020
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3min2590

It’s time for your Daily Hit of cannabis financial news for February 5th, 2020. 

On the Site

Business Strategy For Psychedelic Companies

The Green Market Report hosted its first conference on Psychedelic Investing in New York City on January 24. This panel was titled “Business Strategy For Psychedelic Companies.

Journalist Jeremy Berke of Business Insider moderated this panel.

Atai Life Science CEO, Florian Brand, was on the panel along with Shlomi Raz, the founder of Eleusis. The two were joined by Dr. Terry Kelly, the CEO of Perception Neurosciences.

Tilray Restructures, Cuts Workforce, Stock Rises

Canadian cannabis producer Tilray (NASDAQ: TRLY) said it was restructuring and cutting roughly 10% of its workforce. The stock was moving almost 2% higher on the news in pre-market trading to $18.50.

“By reducing headcount and cost, Tilray will be better positioned to achieve profitability and be one of the clear winners in the cannabis industry, which will drive value for our investor and employee shareholders,” said Chief Executive Brendan Kennedy in a statement.

74% of CBD Buyers Own Pets

A new industry report from Nielsen (NYSE: NLSN) and cannabis data provider Headset has highlighted the impact of hemp-based cannabidiol (CBD) on the U.S. pet care market. According to the 2020 Pet Industry Green Paper by Nielsen and Headset, hemp-based CBD pet products will represent 3-5% of all hemp CBD sales within the U.S. by 2025.

Key takeaways:

  • Pet products have logged over $9.4 million in sales at regulated adult-use cannabis retailers in California, Colorado, Nevada, and Washington combined (Q1 2018 through Q3 2019).
  • To date, 24% of pet owners use hemp-CBD either for themselves, their pet(s), or for both.

In Other News

Aurora Cannabis to Cut Workforce By 10%

Cannabis company Aurora has announced they are cutting their workforce by 10%. Shares are down 1% after hours. This comes right after the announcement of Tilray’s plans to also cut their workforce by 10%.


StaffStaffFebruary 4, 2020
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4min2420

It’s time for your Daily Hit of cannabis financial news for February 4, 2020.

On The Site

Green Wave Advisors

Green Wave Advisors has released a new report explaining the impact of the federal prohibition on cannabis businesses. Since many multistate operators (MSO)’s have gone public, the companies are including financial disclosures explaining the influence of 280E.

This tax code prevents those “trafficking” federally illegal substances from claiming business-related deductions on their taxes, and unfortunately at this time that includes cannabis, even if the business is operating legally at the state level.

Franny’s Farmacy

North Carolina-based Franny’s Farmacy announced on Friday, January 31st, the launch of its third online public offering. The company said the goal of this online public offering is to support the expansion of Franny’s Manufacturing, where all of its Franny’s branded edibles, topicals, lotions, treats, and more are made for the men, women, children, and pets they call loyal customers.

So far the company has raised $47, 586 from 85 investors. The company’s valuation is listed as $3 million. Shares are priced at $2.

Kali Extracts

 Kali-Extracts, Inc.  (OTC: KALY) said that it has entered into a letter of intent (LOI) under which KALY could receive a $20 million investment to fund its Cannabis Biopharmaceutical Technology. The proposed investment values KALY’s cannabis biopharmaceutical technology at $50 million. The company said in a statement that the confidential terms of the LOI target a planned $5 million first tranche within ninety days.

In Other News

Lift & Co. Corp. (TSXV:LIFT) (OTCQB:LFCOF) reported that its total revenues for the third quarter increased 11% to $926,429 for the three-month period ended December 31, 2019. The net loss for the quarter was $1.5 million. The earnings per share for the quarter were a loss of two cents per share.  Revenue increased 41% to $4.6 million for the nine-month period, compared to the same periods in the prior year. Loss from operations decreased 7% to $2 million for the three-month period and decreased by 17% to $4.8 million for the nine-month period.

Revenue fell for the Lift & Co. trade show to $427,204 in the third quarter versus $501,516 in the previous year. The company reported a loss of $161,501 on event marketing for that period. For the past nine months, though the company reported $3.5 million in revenue for the events and a net income of $1.1 million beating the previous year’s net income of $529,416 for the same time period.

 

Dixie Brands Inc. (CSE: DIXI.U) (OTCQX: DXBRF) announced that its wholly-owned subsidiary, AcesoHemp, is adding to its existing Health & Wellness offering via the introduction of two new consumer-driven product segments – Healthy Beauty and Performance Management.


StaffStaffFebruary 3, 2020
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8min2840

It’s time for your Daily Hit of cannabis financial news for February 3, 2020.

On the Site

Cresco Labs

Cresco Labs (CSE: CL) (OTCQX: CRLBF) closed on its recently announced non-brokered credit agreement for a senior secured term loan of $100 million. Cresco Labs says it has an option to increase the size of the facility to a maximum of $200 million. Curaleaf said it will use the money to pay for the expansion of operations in Illinois, closing and integration costs associated with pending acquisitions, and other strategic growth initiatives in key markets.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) said that it closed its acquisition of vape brand Select on February 1.  Curaleaf’s acquisition of Cura Partners, Inc. who are the owners of the Select brand, includes Select’s manufacturing, distribution, marketing, and sales operations marketed under the Select brand name, including all intellectual property.

GW Pharmaceuticals

GW Pharmaceuticals (NASDAQ:GWPH) has filed a supplemental marketing application in the U.S. seeking approval to use Epidiolex (cannabidiol) oral solution to treat seizures associated with tuberous sclerosis complex, a rare inherited disorder characterized by the growth on non-cancerous tumors in many parts of the body. It affects approximately 40-80 thousand individuals in the U.S. and nearly one million people worldwide.

Zynerba

Zynerba Pharmaceuticals (NASDAQ:ZYNE)reported that it has successfully achieved patient screening target in its 14-week CONNECT-FX (Clinical study of Cannabidiol (CBD) in Children and Adolescents with Fragile X) trial assessing the efficacy and safety of Zygel CBD Gel in children and adolescents ages three to 17 with full mutation Fragile X syndrome.

Golden Leaf

Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) signed a definitive agreement to acquire Oregon-based Tozmoz, which is a wholly-owned subsidiary, TZ Acquisition, Inc. for roughly $2.8 million. Tozmoz is a cannabis extractor that was founded in 2015 as one of the first Oregon Liquor Control Commission licensed processors in the state. Golden Leaf bought all of the assets of Tozmoz, including the facility located in Clackamas, which serves as the headquarters for approximately $2.8 million. The deal consisted of cash and advances totaling $675,000, an earnout of up to $400,000 and GLH stock (29,166,667 shares at US$.06 per share).

In Other News

Whoopi & Maya has ceased operations. According to LA Cannabis News, “A rift had developed between Whoopi Goldberg and Maya Elisabeth that was irreconcilable. When this happened several months ago, Cusick and others tried to resolve the problem and thought they had reached an agreement. But on Friday, January 31, Goldberg submitted her resignation to the board. The divorce was final.”

Co-founder and board member Rick Cusick told CelebStoner, “The company is ceasing operations immediately,” he says. “It’s with deep regret that we can no longer provide services to patients.”

IIPR

Innovative Industrial Properties, Inc. (NYSE: IIPR) closed on a sale-leaseback transaction with Green Thumb Industries Inc. (GTI) (CSE: GTII; OTCQX: GTBIF) for its licensed cannabis processing facility in Toledo, Ohio. The purchase price for the property was $2.9 million (excluding transaction costs). GTI is also expected to make certain improvements to the property, for which IIP has agreed to provide reimbursement of up to $4.3 million. Assuming full reimbursement for such improvements, IIP’s total investment in the property will be $7.2 million.

This sale-leaseback transaction mark IIP’s second acquisition and lease with GTI, with a prior sale-leaseback transaction for GTI’s licensed medical cannabis cultivation and processing facility in Pennsylvania completed in November of last year.

Aurora Cannabis

Aurora Cannabis Inc. (NYSE: ACB) has received European Union Good Manufacturing Practice certification. EU GMP certification is granted to companies whose production facilities demonstrate a high degree of quality and consistency in their manufacturing procedures and is a requirement for the export of medical cannabis products into most European markets.


Kaitlin DomangueKaitlin DomangueJanuary 30, 2020
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5min2860

It’s time for your Daily Hit of cannabis financial news for January 30th, 2020.

On the Site

CLS Nevada Projects 2020 Revenue Of $17 Million

CLS Holdings USA, Inc (OTCQB: CLSH)(CSE: CLSH) released its 2019 calendar year-end statement for CLS Nevada, not long after the company reported its quarterly earnings on January 14. The company said in a statement that it was “forecasting CLS Nevada 2020 revenue of $17 million and positive EBITDA of $4 million.” The company will need to hustle if it wants to hit that $17 million goal. CLS said that it plans to increase sales by 100% at City Trees by eliminating low return on investment SKUs, re-branding and increasing visibility through better marketing channels. That includes expanding the  Oasis Cannabis parking lot and vault to allow it to efficiently serve 1250 customers a day. The company also wants to create new revenue streams by offering advertising opportunities to brands and partners.

High Times Tells Shareholders It Needs More Capital

It’s been a tumultuous two months for venerable cannabis publisher High Times following an equally bumpy road to going public. On Wednesday, Chairman Adam Levine sent a letter to shareholders of the private company stating that it would once again extend its fundraising campaign and abandon its efforts to list on the NASDAQ Marketsite Exchange (NASDAQ: NDAQ).

The latest extended offering will terminate on the first to occur of either the date on which all 4,545,454 shares are sold or March 31, 2020. These shares though are priced back at $11 with the goal of raising another $5 million. According to the most recent corporate presentation, High Times had 32,460, 313 issued shares and if all were valued at $11, that is a $357 million market cap. The company’s current total liabilities are $68 million.

The First Historically Black College Is Launching A CBD Line

The Southern University Agricultural Research and Extension Center in Baton Rouge, Louisiana, along with its partner Ilera Holistic Healthcare is launching a CBD product line called ALAFIA. Southern is the first HBCU (Historically Black College University) to start its own CBD product line that is available for sale at dispensaries and other retail locations.

“Southern has been a leader in agriculture and the sciences for 140 years while staying true to its mission of access,” said Ray Belton, the president of the Southern University System. “This CBD venture with Ilera encompasses all of that.”

Hemp Glut Causing Prices To Drop, Unsold Harvests

Hemp Benchmarks report for January was published on Wednesday at the Hemp Benchmarks website. Founder Jonathan Rubin noted that wholesale hemp markets continue to face significant challenges, including oversupply and declining prices.

The report stated, “We have in previous reports emphasized the current glut of biomass on the market, which has led to farmers being unable to move their harvests. Such market conditions continued in January, with numerous members of our Price Contributor Network reporting that relatively little buying and selling of biomass was taking place. Transactions that were reported showed high-CBD biomass prices continuing to sink, with the assessed rate for transactions of over 1 million pounds down 53% from last month.

In Other News

Two Kentucky Hemp Companies Facing Bankruptcy 

Two companies are facing financial trouble as GenCanna has had three separate creditors try and force the company to declare bankruptcy. The three creditors are owed $50,000 collectively. Separately, Sunstrand owner William “Trey” Riddle filed for Chapter 7 bankruptcy in a Louisville court. 

A creditors’ meeting is scheduled for February 6th in Louisville, KY. 


Kaitlin DomangueKaitlin DomangueJanuary 29, 2020
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4min3470

It’s time for your Daily Hit of cannabis financial news for January 29th, 2020. 

On the Site

Top 10 Most Influential Communication Professionals To Watch In Cannabis 2020

Green Market Report compiled a list of the 10 most influential communication professionals in cannabis to keep an eye on. The list is Daniel Yi, Chief Communications Officer at Shryne Group Inc., Rosie Mattio Founder & CEO of Mattio Communications, Jason Erkes, Chief Communications Officer at Cresco Labs, Gia Moron, Founder and CEO of GVM Communications, Inc, Linda Marsicano, VP Corporate Communications at Green Thumb Industries, Alex Howe, Head Of Corporate Communications at Harvest Health & Recreation, Inc., Shawna Seldon Mcgregor, Founder & CEO of Maverick Public Relations, Lewis Goldberg, Managing Partner at KCSA Strategic Communications, Evan Nison, Founder & CEO of Nison Co., Heidi Haller Groshelle, Founder & CEO of Groshelle Communications

EcoGen Closes on $40 Million Private Placement

US-based company, EcoGen Labs, is continuing to expand and grow as it successfully closes on a $40 financing arrangement through private placement. EcoGen has a solid strategy for the utilization of this transaction, the plans include supporting the further development of its facilities, focusing on its research and development, and the expansion of marketing and sales divisions.

Cuomo Plan for Social Equity Forgets Minorities

Governor Andrew Cuomo (NY) announced his plans to legalize cannabis for adult use in his state budget speech last week. If we look closely at the Cuomo cannabis plan there are red flags. According to Cuomo’s budget, “the program will limit the number of producers and retail dispensaries to guard against a market collapse.”

States that have limited licensing markets face serious product shortages, increased consumer cost, and greater startup expenses that ultimately keep illicit markets going. Fewer licenses at higher costs mean fewer entrepreneurs. In many markets the initial capital requirements are so high minority entrepreneurs can’t compete.

“Hot Plants” Prove Problematic for Hemp Entrepreneurs

Current  issues plaguing hemp producers in 2019 are coming to light, and industrial hemp poses a new challenge: how to bring a crop in under the .3% THC limit mandated by the federal government

A hemp plant can “go hot” (aka experience a spike in THC levels) due to using a new seed variety, environmental factors, or a plant left to flower for too long. This can lead to what the National Law Review article describes as “excessive non-compliance and crop destruction”, not to mention devastating financial losses for growers.

In Other News 

Curaleaf Set to Open First Adult Use Cannabis Dispensary on Cape Cod, Massachusetts

Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF) is going to be the first adult-use dispensary in Cape Cod, the facility is set to have its grand opening on February 6th, 2020.

“We are very excited to bring the first adult-use cannabis dispensary to Cape Cod. Provincetown is a vibrant community where we plan to hire over 30 people and become engaged with the cultural activities, charities and local initiatives that are important and make the Outer Cape and Provincetown so special,” said Patrik Jonsson, President of Curaleaf Massachusetts.

Driven Deliveries to Acquire Humboldt Heritage Inc.

Driven Deliveries has announced its decision to purchase Humboldt Heritage Inc., a cannabis company based in Northern California.

The acquisition is expected to add an additional $20M to the company’s 2020 revenue forecast.



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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