Daily Hit Archives - Green Market Report

StaffJune 16, 2021
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7min4290

It’s time for your Daily Hit of cannabis financial news for June 16, 2021.

On The Site

Creso Pharma

Cannabis company Creso Pharma Limited  (ASX: CPH)  (OTCQB: COPHF) is merging with psychedelic treatment company Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) to create The HighBrid Lab. The transaction is a reverse takeover of Red Light Holland by Creso Pharma giving Red Light shareholders a 29% premium for their shares. Creso shareholders will own 57% of the new company. The combined company will use the symbol TRIP. The new company is expected to have a cash balance of approximately C$45 million (A$48 million), providing considerable financial flexibility to progress its growth strategy.

Delta 8

If you feel like you’ve been catching a lot of Delta-8 THC content in the media lately, those aren’t just your social media apps hacking your brain. Hemp-derived Delta-8 THC is having a big moment in 2021 in terms of popularity and, most recently, in terms of concerns over legality, safety, and accuracy. This hot new cannabinoid has been branded as “legal marijuana” as the main intoxicating compound in cannabis but one most commonly derived from hemp for commercial use. Social listening data reveals that conversations around Delta-8 grew by a whopping 163% from December 2020 to April 2021, but all is not rosy for this latest trend in cannabis or for companies jumping into production to respond to the surging interest.

Arizona, Colorado, Delaware, and Montana are among the states that have explicitly banned sales of Delta-8 and at least four other states have already removed it from the shelves or otherwise restricted market access. The 2018 Farm Bill categorically removed hemp from the definition of marijuana and modified the definition of tetrahydrocannabinol to exclude tetrahydrocannabinol in hemp. The Drug Enforcement Agency’s interim rule turned that segment of the Farm Bill on its head, declaring derivatives of hemp containing delta-9 tetrahydrocannabinol in excess of .3% THC and all synthetic cannabinoids as controlled substances. 

Connecticut

The state of Connecticut keeps trying to pass the legalization of adult-use cannabis but seems to be thwarted each time. Marijuana Moment reported that in the state’s recent special session, the Senate approved a full legalization bill by a vote of 19-12. A week ago, during the state’s normal legislative calendar, lawmakers passed a similar bill, but Republicans pushed back. The session ended and the measure was moved to the special session. Although Republicans got the blame for the delay, several state Democrats have also expressed concerns. Governor Ned Lamont is mostly supportive of full legalization but has expressed problems with the social equity rules.

In Other News

PsyTech Inc., a leading source of education, clinical care and clinical tools for the fast-growing psychedelic medical sector closed a $3.81 million oversubscribed Series A funding round.  The round was led by Ambria Capital as well as investors in the psychedelics, banking, and medical practice sectors.

 “We are grateful to our new and existing investors who have shown material support for our mission to accelerate the mainstreaming of effective psychedelic-assisted therapies,” said Hayim Raclaw, Chief Executive Officer for PsyTech Inc. “Closing this round enables us to empower healthcare providers with professional-grade software tools, and deliver integrative care to patients. We have a complementary focus on educating the public on the efficacy of psychedelic-assisted therapies and combat the retrograde stigma surrounding their use in healthcare.”

Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) announced the launch of its in-silico drug discovery program in conjunction with researchers at the University of Alberta. Led by top computer-aided drug development expert, Dr. Khaled Barakat, the program is focused on developing artificial intelligence/machine learning (AI/ML) supported drug screenings, including both the ability to build drugs from the receptor up and assess drugs around the receptors of Mydecine’s choosing. With its broader R&D capacity in drug development up and running, the in-silico program will enable the Company to more rapidly screen hundreds of thousands of new molecules without the need to produce them, allowing Mydecine to focus on the strongest potential therapeutics for its chemical and natural development programs. Mydecine will also be able to more efficiently screen its proprietary library of novel compounds designed by Chief Science Officer Rob Roscow and Advisory Board member, Dr. Denton Hoyer.


StaffJune 15, 2021
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5min5200

It’s time for your Daily Hit of cannabis financial news for June 15, 2021.

On the Site

Fire & Flower

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced its financial and operational results for the fiscal first quarter ending May 1, 2021 with revenue rising 90.7% to $44.1 million. However, Fire & Flower also delivered a net loss of $61.6 million versus last year’s $12.7 million for the same time period. The company blamed the net losses on a $54.1 million loss on the revaluation of derivative liabilities in the current quarter. The company said it was the fourth consecutive quarter of positive Adjusted EBITDA of $2.3 million as compared to an Adjusted EBITDA loss of $1.4 million for the first quarter of 2020. In addition, the company reported a gross profit percentage of 37.5% compared to 32.6% for the same period in 2020.

KushCo

KushCo Holdings, Inc. (OTCQX: KSHB) reported preliminary and unaudited financial results for its fiscal third quarter ended May 31, 2021. KushCo said it expects its preliminary and unaudited fiscal third quarter 2021 revenue to be between approximately $27.5 million and $28.0 million, compared to approximately $22.3 million for its fiscal third-quarter 2020. This is a decline from the $32.9 million in revenue in the second quarterThe 21% to 26% expected increase in revenue is being driven primarily by an increase in sales to KushCo’s top 25 customers, which consist of leading multi-state operators (MSOs), licensed producers (LPs), and brands. Revenue from these top 25 customers is expected to increase 60%+ to at least $20.5 million in revenue in fiscal third-quarter 2021 from $12.7 million in the same year-ago period. KushCo said it expects to report its complete fiscal third-quarter 2021 financial results in early July 2021.

In Other News

Col-Care

Columbia Care (OTC: CCHWF) has entered into a definitive agreement to acquire Medicine Man Denver, a premier vertically integrated cannabis company, in a deal valued at $42M.The upfront consideration of $42M, comprises of $8.4M in cash and $33.6M in stock, representing a multiple of about 4.5x projected 2021 EBITDA.The transaction terms also include a potential additional milestone payment in 2022 if certain performance targets are met, Columbia Care said.The acquisition of Medicine Man further solidifies Columbia Care’s position as the most scaled retailer, cultivator, and manufacturer in Colorado, the company said.The deal will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care’s national footprint.The transaction is expected to close in Q4 2021.

Charlotte’s Web

Charlotte’s Web (OTC: CWBHF) has appointed Wessel Booysen as Chief Financial Officer, to succeed CFO Russ Hammer, who will retire in August at his two-year anniversary with Charlotte’s Web.Mr. Hammer will assist Mr. Booysen in a planned two-month transition, serving as Senior Executive Advisor to the CFO during the transition period.Mr. Booysen is a top-tier executive with more than a decade of global executive leadership in finance, international expansion and strategic M&A at Molson Coors Beverage Company. Most recently served as Chief Executive Officer and Managing Director at Molson Coors Beverage in Melbourne, Australia.

Field Trip

Field Trip Health Ltd. (TSX: FTRP; FTRP.WT; OTCQX: FTRPF) announced that it has completed initial drug metabolism and pharmacokinetic (“DMPK”) studies for FT-104, its novel psychedelic compound in development. In-vitro preclinical studies confirmed that metabolism of FT-104 is rapid and complete in several animal species, converting FT-104 into the active form of the drug with relatively few metabolites, validating FT-104’s action as a prodrug for the underlying molecule (the “active”) from which FT-104 was derived. The active is a known psychedelic molecule which has yet to be disclosed.


StaffJune 14, 2021
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6min5520

It’s time for your Daily Hit of cannabis financial news for June 14, 2021.

On The Site

Cronos

Canadian-based Cronos Group Inc. (NASDAQ: CRON) stock was rising over 2% on news that the company was buying an option to acquire 10.5% of U.S.-based PharmaCann for $110.4 million. The company said that the option exercise will be based upon various factors, including the status of U.S. federal cannabis legalization, as well as regulatory approvals, including in the states where PharmaCann operates that may be required upon exercise.

Hexo

HEXO Corp. (NYSE: HEXO)  reported its financial results for the third quarter fiscal 2021 ended April 30, 2021, with total revenue sliding by $10.2 million sequentially to $22.6 million. It was a 2% improvement over last year’s $22 million for the same time period. Hexo shares were sliding over 5% in early trading to lately sell at $6.24. On a positive note, total net losses were trimmed slightly from the previous quarter from $20.8 million to $20.7 million. However, the losses were slightly higher over the same time period in 2020. All amounts are in Canadian dollars.

Greenway IPO

Greenway Greenhouse Cannabis Corporation has filed a prospectus for a listing on the Canadian Securities Exchange. The company is majority-owned by Sunrite Greenhouses Ltd., an established cultivator of greenhouse-grown produce within the Del Fresco Group of companies. Greenway currently operates in a hybrid greenhouse, located in Leamington, Ontario, and in an indoor nursery, located in Kingsville, Ontario.

According to the filing, Greenhouse has no revenue to date but is licensed to grow and sell dried cannabis. The first crop was fully harvested in May 2021. It intends to sell the strains called Sun County Kush and Lemon Pound Cake. Greenway says it has over 200 strains within its genetic portfolio and plans to be a wholesaler. The company plans to complete five crop cycles per fiscal year. Greenway has $4.1 million in working capital according to the prospectus.

In Other News

Sanity Group

Berlin-based cannabis start-up Sanity Group has closed a $44.2M USD Series A financing round with new investment led by Swiss venture capital firm Redalpine along with US-based Navy Capital and SOJE Capital. GMPVC also participated in the round. This represents the largest round of cannabis funding in Europe to date and brings total investment in Sanity Group to $73M USD. Previous investors include HV Capital, TQ Ventures, Atlantic Food Labs, Cherry Ventures, Bitburger Ventures and SevenVentures. In addition, Sanity Group has attracted prominent celebrity angels including music producers will.i.am, Scooter Braun and actress Alyssa Milano

 “The European cannabis market faces exciting developments in the coming months. Compared to the North American market, Europe is now where we were in the U.S. about four years ago. We want to bring our expertise and experience to the table. For our first investment in Europe, it was important for us to find a team that understands the market and has real industry experts in its ranks. The Sanity Group team particularly impressed us with their expertise and clear approach,” says Sean Stiefel, CEO at Navy Capital.

Cirona Labs

Cirona Labs, a premier innovator in cannabinoids and other functional botanical ingredient manufacturing, announced that it has closed an oversubscribed $1.5 million seed round led by LiDestri Food & Drink, BevSource, and Sweetener Supply. The funding will be used to further expand the company’s research and development, facilities, and team as well as support a general push to market and build stronger relationships with existing brands. “As a newly launched company we are proud to see early market traction and reach this milestone so quickly,” said Hunter Friedland, CEO of Cirona Labs. “It’s clear that the interest in creating products with cannabinoids and other plant medicine is continuing to increase and as a company focused on science and offering sustainable solutions to our customers, we are confident our high-quality products will speak for themselves in the industry.”


Kaitlin DomangueJune 10, 2021
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3min4940

It’s time for your Daily Hit of cannabis financial news for June 10th, 2021. 

 

On the Site

Executive Spotlight: Meg Sanders

Canna Provisions CEO Meg Sanders is a powerhouse and a connector of people and talents. She took $5mil+ business and turned it into a thriving and growing $100mil+ company in US cannabis. Canna Provisions’ home base is Lee, MA – a small Berkshires rural town. Next on her deck is finding thoughtful new investors that support the vision of what Canna Provisions has successfully built.

 

Terra Tech Announces Pending Acquisition of SilverStreak

Terra Tech Corp. (OTCQX:TRTC) announced their plan to acquire SilverStreak Solutions Inc. The two companies have executed an agreement for the acquisition to take place. The close is expected to occur within 90 to 120 days. After the close, SilverStreak’s CEO, Sterling Harlan, is expected to consult with the company for a period of six months. 

 

In Other News

Washington Cannabis Stores Taking Part in “Joints for Jabs”

Washington cannabis retailers are now able to partake in a program encouraging people to get vaccinated against the coronavirus. Anyone over 21 who gets a shot at an on-site vaccine clinic will get a free pre-rolled joint. Breweries have been offering a similar incentive program. 

 

Ohio Adds Three Conditions to The List of Approved Conditions

The Ohio State Medical Board added three approved conditions for people to seek medical marijuana in the state: 

  • Huntington’s disease.
  • Terminal illness.
  • Spasticity.

The board rejected additional conditions, including: autism spectrum disorder, restless leg disorder, panic disorder with agoraphobia, and spasms. 


StaffJune 9, 2021
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8min4410

It’s time for your Daily Hit of cannabis financial news for June 9, 2021.

On the Site

Vireo

Vireo Health International, Inc.  (CSE: VREO; OTCQX: VREOF) announced at this week’s investor day event that it is changing its name to Goodness Growth Holdings, Inc. The company is also changing its ticker symbol to “GDNS” on the Canadian Securities Exchange (CSE: GDNS) and on the OTCQX Market in the United States the ticker symbol will be “GDNSF” (OTCQX: GDNSF).

Jushi

Jushi Holdings Inc.  (CSE: JUSH ) (OTCMKTS: JUSHF ) reported its official financial results for the fourth quarter and the full-year ending December 31, 2020, plus the first-quarter 2021 ending March 31, 2021. Jushi had originally released unaudited results in April. Revenue increased 29.0% sequentially in the first quarter of 2021 to $41.7 million from $32.3 million in the fourth quarter. It missed analyst estimates slightly by $650,000.  Jushi said the increase in revenue was due to solid revenue growth at the BEYOND/HELLO stores in Pennsylvania and Illinois, early revenue contributions from its Virginia retail operations, and increased operating activity at its PAMS and Nevada facilities. The first-quarter net loss was $26.8 million, or $0.18 per diluted share, versus a net loss of $156.7 million, or $1.35 per diluted share, in the fourth quarter This missed analyst estimates by $0.14. Jushi said the $129.9 million improvement in net losses was due to a decrease in fair value losses on derivative liabilities, along with higher revenue and gross profit.

In Other News

Connecticut

According to NRML, House members failed to hold a floor vote on Senate Bill 1118, which sought to legalize the marijuana market in Connecticut, prior to the close of the 2021 regular legislative session. Senate lawmakers had approved the measure on Monday, and Democratic Gov. Ned Lamont called the legislation a “national model for regulating the adult-use cannabis marketplace.” However, Republicans in the House expressed opposition to the bill and successfully delayed lawmakers from casting their votes on the issue prior to Wednesday’s midnight deadline. Nonetheless, several lawmakers have indicated that legislators are likely to revisit and pass a similar version of the legislation if a special session is convened in the coming weeks.

Auxly

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF)has entered into an agreement with ATB Capital Markets Inc., as sole bookrunner, and Cantor Fitzgerald Canada Corporation, acting as co-lead underwriters of the Offering, together with a syndicate of underwriters, will purchase 47,620,000 Units of the Company, on a bought-deal basis at a price per Unit of $0.315 for gross proceeds of $15,000,300. A.G.P./Alliance Global Partners is acting as the sole U.S. sub-agent and financial advisor to the Company in connection with the Offering in the United States.


StaffJune 8, 2021
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6min6430

It’s time for your Daily Hit of cannabis financial news for June 8, 2021.

On The Site

Top Magazines

It is truly a labor of love to put out a regular print publication. A combination of writers, artists, printers, and distributors. Not to mention the trying to sell the advertising to pay for all of this. While most of us consume our media on our phones, there is something deeply satisfying when reading a story on paper accompanied by beautiful photographs. The pictures on our phones just don’t have the same impact. Plus, who doesn’t love to see themselves or their company featured in a print publication? So with that said, we put together a list of the top cannabis industry print publications. They are listed in alphabetical order.

Tilray

Tilray, Inc. (NASDAQ: TLRY) is launching a new medical marijuana product called Symbios. The company said that the new brand was developed to provide a broader product at a better price point. Potency will range from 15%-18% and all flower is grown in the same Greenhouse as Aphria-branded flower. Current strains include Nordle, Treasure Island, Sour Kush, Jack Herer, Exodus Cheese, and Grower’s Blend (milled flower).

Mydecine

Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) reports that its R&D team has discovered over 40 compounds with pharmacological potential in mushrooms. Mydecine said that it has screened over 25 mushroom species, including various varieties of p. cubensis, and has selected and analyzed over 40 unique compounds found throughout the various species. Of these compounds, a large majority appear to have never been reported before and could be vital to the critical effects of naturally-sourced mushrooms on human health and wellbeing as well as synergistic effects with pure psilocybin.

Brightfield

The cannabis industry’s proof was in 2020’s revenue, but Brightfield’s newest report shows consumer behavior to match exactly what the cannabis industry already knew: people consumed more cannabis during the pandemic than they were before. 

Marley Natural

It is surely a move that Bob Marley never would have dreamed could happen. A dispensary bearing his name, legally selling his beloved herb in his home country of Jamaica. The Marley family and Docklight Brands announced that the Marley Natural will open a new, first-of-its-kind Marley Natural dispensary located at Bob’s former home and recording studio, which is currently the Bob Marley Museum, in Kingston, Jamaica. Privately owned Docklight Brands, Inc. holds the exclusive global rights to Bob Marley cannabinoid products. Docklight was founded by Privateer Holdings.

In Other News

Field Trip Health Ltd. (OTCQX: FTRPF) has applied to list its common shares on the NASDAQ Stock Market. “Psychedelics stand poised to disrupt modern psychiatry, and the NASDAQ is where world class companies whose ambition is disruption list to reach a global audience of investors,” said Ronan Levy , Field Trip’s Executive Chairman. “By applying to list on the NASDAQ, we are declaring to the world that Field Trip is such a world class company.”

HERBL, California’s largest cannabis supply chain solutions company, today announced its acquisition of Blackbird, a premier cannabis distributor and direct-to-consumer software solutions company based in Nevada. The transaction allows HERBL to leverage Blackbird’s ecosystem of national retail and logistics insights to enter the Nevada market and create the most comprehensive supply chain platform in the industry. The acquisition positions HERBL as the leading multi-state supply chain company that serves 98% of California’s and Nevada’s cannabis retailers. BlackbirdGo, Blackbird’s proprietary e-commerce platform, will be seamlessly integrated into HERBL’s retail services offering, providing a new sales channel that connects retailers and consumers to HERBL’s portfolio of best-selling brands. 


StaffJune 7, 2021
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6min4710

It’s time for your Daily Hit of cannabis financial news for June 7, 2021.

On The Site

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQB: PLNHF) reported record sales in May of $11.2 million with gross margins above 50%. The company said that May represents the third consecutive month of record sales as Las Vegas and America return to normal. In a statement, Planet 13 said that hotels across the Las Vegas strip have reported having hotel rooms sold out for the foreseeable future and Planet 13 expects continued strong sales on the back of increased tourist traffic. In May, Planet 13 reported that its first-quarter revenue rose 41% to $23.8 over 2020 before the pandemic had really settled in and lockdowns began. So, there is a great deal of optimism about the second quarter.

Red White & Bloom

Red White & Bloom Brands Inc. (OTC: RWBYF)  closed on a deal raising approximately $36.8 million of new cash and retired $7.7 million of debt. RWB closed on a private placement of 8,445,426 units at a price of C$1.15 per Unit for gross proceeds of C$9,712,239 (or USD $7,769,792). In addition to the statutory 4-month hold, the investors have agreed to a 12-month lock-up of their shares. In addition, RWB completed a private placement to an arm’s length purchaser of a principal amount $6,500,000 unsecured debenture.

Sol Global

Cannabis Law Reports reported that Sol Global (OTC: SOLCF) lost the first round in its lawsuit with investor MMCap. Sol Global had filed a case in the state of New York regarding the repayment of a $50 million loan. At the heart of the lawsuit is a big chunk of Verano shares, which MMCap and the 1235 Fund say belong to them as an option for the repayment of the loan, while Sol Global claims the shares belong to them alone and that all the 1235 Fund gets is a cash repayment. Judge Jennifer Schecter wrote that of all interested parties only one, Verano Blocker 2, specifically agreed to New York as a place of jurisdiction. She also described the group as “sophisticated parties” suggesting all the parties understood what had been agreed to for jurisdiction. MMCap and the 1235 Fund filed their case in Ontario, which Judge Schechter said was consistent with the other clauses in the agreements signed by the parties.

In Other News

Terra Tech Corp. (OTCQX:TRTC) is selling its non-operating N. 4th Street property in Las Vegas, NV. Based on local zoning changes, the property cannot be used for any cannabis-related activities. The sale price of $2.6M results in an approximate $900K balance sheet improvement, after paying off the existing $1.6M mortgage on the property and related sales fees. The sale also eliminates the current monthly burn of carrying the property, including mortgage, taxes, and other associated costs. The closing of the sale is subject to customary conditions and is expected to occur by early August 2021.

GrowGeneration Corp . (NASDAQ: GRWG ) announced that Power Si, a proprietary brand operated and owned by GrowGen, has signed an exclusive distribution agreement with GreenPlanet Wholesale, one of Canada’s oldest and most trusted hydroponic distributors. PowerSi’s original patented formula of mono-silicic acid has consistently proven to improve the yield, strength, and lateral branching of crops and is a must-have for new and experienced growers.  Power Si is widely used in North America and facilitates fast, visible and structured periods of both vegetative and flowering growth.


Kaitlin DomangueJune 3, 2021
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5min7500

It’s time for your Daily Hit of cannabis financial news for June 3rd, 2021. 

On the Site

Executive Spotlight: Kathryn Blackwell

Kathryn Blackwell is the Co-Founder and CEO of The Open Dør, a national cannabis retail franchise headquartered in Scottsdale, Arizona. 

Since establishing The Open Dør in 2020, Kathryn has integrated proven franchise strategies and merchandising practices into the dispensary brand to deliver a modern aesthetic and transform the consumer experience. 

RIV Capital Stays On Path To Crossover To U.S. Cannabis

RIV Capital Inc. (TSX: RIV) (OTC: CNPOF) released its financial results for the fourth quarter and fiscal year ended March 31, 2021, which proved to be a very transitional period for the company. 

Riv sold certain financial assets to Canopy Growth for $118.4 million in cash in February, as well as 3.65 million common shares of Canopy Growth and other aggregate forms of payment. 

Eddie Lucarelli, Chief Financial Officer, said, “With the CGC Transaction complete and the PharmHouse Credit Facility fully settled, our rejuvenated balance sheet puts us in an advantageous position to capitalize on the growing momentum in the U.S. cannabis market.”

Silo To Create Mushroom Stores In Jamaica

Silo Wellness Inc. (CSE: SILO) has signed a letter of intent with Canadian-based mushroom company Mushe Inc. to create the first legal functional and psychedelic mushroom retail outlet based in Jamaica. 

Silo Wellness currently cultivates psilocybin mushrooms, conducts psychedelic wellness retreats, and is testing a proof-of-concept patent-pending nasal spray.

Empower Clinics Adds Diabetes To Clinic Portfolio

Empower Clinics Inc. (CSE: CBDT) (OTCQB: EPWCF) is buying Medi + Sure Canada Inc. also called Medisure, a leading Canadian manufacturer of medical devices for patients managing diabetes in a deal valued at $3.5 million. 

Last year, Empower created a subsidiary company dedicated to the advancement of psilocybin research and patient care, addressing the significant mental health issues of anxiety, depression, post-traumatic stress disorder (PTSD), and addiction.

In Other News

Zynerba Announces Results of Study Exploring Cannabinoid Therapy for Autism Spectrum Disorder

Cannabinoid pharmaceuticals company, Zynerba Pharmaceuticals, announced their presentation of efficacy and safety findings in children and adolescents with Autism Spectrum Disorder. 

“The previously disclosed data from these three studies provide evidence of the potential for Zygel [the cannabinoid product studied) to have a clinically meaningful impact on a variety of endpoints associated with ASD and related disorders,” said Joseph M. Palumbo, M.D., LFAPA, MACPsych, Chief Medical Officer of Zynerba. “Should these findings be confirmed in additional trials, we believe Zygel has the potential of being a new and differentiated therapeutic option for these patient communities.”

Cannabics Pharmaceuticals Launches Program for Cancer Treatment Research 

Gabriel Yariv, Cannabics Pharmaceuticals President and COO, said: “We have successfully completed a series of preclinical experiments in our in-house research facilities and have identified promising antitumor results on Breast Cancer cell lines. Based on these encouraging results, we now plan further research aimed at developing a new drug candidate for the treatment of Breast Cancer.”

This announcement comes shortly after the launch of a similar treatment program for melanoma. 

Jay-Z’s Company Invests in First Black Woman-Owned Speakeasy 

Jay-Z’s company, TPCO Holding Corp., aka The Parent Company, has chosen Josephine & Billie’s to be its first social equity corporate venture fund investment. 

The speakeasy-style storefront will be a private cannabis consumption lounge, exclusive to BIPOC women and allies. 


StaffJune 1, 2021
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7min6482

It’s time for your Daily Hit of cannabis financial news for June 1, 2021.

On The Site

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC)  announced its financial results for the fourth quarter and fiscal year 2021 ending March 31, 2021. Canopy Growth’s revenue increased 38% to $148 million. The net losses for the quarter were $617 million, an improvement over 2020’s net losses of $710 million. The company blamed the bloated net losses on non-cash fair value changes of $292 million and impairment and restructuring charges of $75 million primarily related to changes to its Canadian operations that were announced on December 9, 2020.

For the full year, net revenue increased 37% to $546 million over the prior year driven by double-digit growth across Canadian cannabis, international cannabis and other consumer products businesses. Total net cannabis revenue of $379 million in the fiscal year 2021, represented an increase of 28% over the prior year.

The reported fiscal year 2021 net loss of $1.7 billion, a $283 million wider loss than fiscal year 2020, was driven primarily by the year-over-year change in other income (expense), net, the reduction in the income tax recovery, and expected credit losses on financial assets and related charges, and partially offset by the year-over-year improvement in gross margin and reductions in selling, general and administrative expenses, share-based compensation expense, and asset impairment and restructuring charges.

Harborside

Harborside Inc. (CSE: HBOR) (OTCQX: HBORF) reported its financial results for the first quarter ending March 31, 2021, after the market close on Monday. Harborside reported that its net revenues fell 9% to $12.4 million versus last year’s $13.7 million for the same time period. This missed the Yahoo Finance average analyst estimate for revenues of $13.65 million. The company blamed the decline on decreased store traffic due to COVID-19 restrictions, however, there were also declines in the wholesale business related to lower yields. The net losses for the quarter grew 21.9% to $2.9 million from last year’s $2.3 million.

Following the earnings announcement, Harborside said it was buying California-based Sublimation Inc. also known as Sublime for $43.8 million. The acquisition is expected to close in July 2021. Founded in 2016, Sublime is best known for its expansive line of high-potency, high-quality and affordable, Fuzzies branded pre-rolls, a leading brand of pre-rolls in the state of California, as well as vapes and roll-your-own flower kits.

Hollister Biosciences

Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF)  reported its financial and operating results for the first quarter of 2021 with total revenue in the first quarter of $23.1 million versus $0.95 million in the first quarter of 2020 and up 97% sequentially from $11.7 million in the fourth quarter of 2020. The net income for Hollister in the first quarter was $2.0 million versus a net loss of $2.2 million in the first quarter of 2020. The adjusted EBITDA was $2.80 million in the first quarter compared to a loss of $1.1 million in the first quarter of 2020. Investors seemed pleased with the results as the stock was moving higher by almost 20%. U.S. markets were closed on Monday for the Memorial Day holiday.

In Other News

Scotts

The Scotts Miracle-Gro Company (NYSE: SMG) announced increased sales and earnings guidance for fiscal 2021 based on the continued strength of both its U.S. Consumer and Hawthorne segments. For the fiscal year ending September 30, 2021, ScottsMiracle-Gro now expects company-wide sales growth of 17% to 19%. The revision is due mainly to stronger growth in the U.S. Consumer segment, where the Company now expects sales growth of 7 to 9%, compared with its previous range of 4 to 6%. Hawthorne sales also continue to exceed expectations as the Company now expects sales growth of 40 to 45% for the full year, compared with previous guidance of 30 to 40% growth.

As a result, adjusted non-GAAP earnings are expected to be in a range of $9.00 to $9.30 per share. This compares to the previous guidance of $8.60 to $9.00 per share. Adjusted non-GAAP results exclude impairment, restructuring and other one-time expenses.

Emerald

Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) has released its financial results for the three months ended March 31, 2021. Net sales of $2.3M decreased 22% compared to net sales of $2.9M in 1Q20 and decreased 25% from net sales of $3.0M in 4Q20. Volumes sold in 1Q21 were in line with 1Q20, while the average selling price per gram decreased from $4.32 to $3.65 in the adult-use channel. Total SG&A expense of $3.5M, which includes $0.6M of non-cash expenses, decreased $2.4M from $6.0M in 1Q20 and decreased $10.6M from $14.1M in 4Q20. Net loss of $2.9M improved by $2.0M from $4.9M in 1Q20 and improved by $5.2M from $8.1M in 4Q20.


StaffMay 25, 2021
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6min5820

It’s time for your Daily Hit of cannabis financial news for May 25, 2021.

On The Site

TILT

TILT Holdings Inc. ( CSE: TILT ) ( OTCQX: TLLTF ) reported its financial and operating results for the three months ended March 31, 2021. Revenue increased 15% to $46.8 million compared to $40.6 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 45% to $11.7 million and inhalation and accessory revenue increased 8% to $35.1 million. Net losses dropped sequentially from $45 million in the fourth quarter to $1.5 million in the first quarter.

HempFusion

HempFusion Wellness Inc. (TSX:CBD.U) (OTC:CBDHF) is buying Sagely Enterprises, Inc., a leader in premium CBD products with mass distribution in more than 14,000 retailers nationwide. The deal is valued at $25 million and consists of $2 million in cash and $23 million in common shares of HempFusion at a price per share of roughly $1.021. In addition, the sellers may be entitled to receive an earnout payment of up to $5 million subject to Sagely hitting certain revenue targets within a year.

Chalice

Chalice Brands Ltd., formerly Golden Leaf Holdings Ltd. (CSE:CHAL) (OTCQB:GLDFF) reported its financial and operating results for the first quarter of 2021 with total revenue of $5.5 million versus $4.7 million for the same period in 2020. The 18% year-over-year increase was attributed to the overall improvements in the Oregon retail and wholesale businesses. Net losses increased from last year’s $2.4 million to $4.3 million in the first quarter. The company noted that had it included revenue from its Homegrown acquisition, the first quarter 2021 revenues would have been $8.2 million.

GrowGen

GrowGeneration Corp . (NASDAQ: GRWG) is buying The Harvest Company, a northern California -based hydroponic supply center and cultivation design innovator with stores in Redding and Trinity County. The Harvest Company serves growers in Northern California’s Emerald Triangle, which is the largest cannabis-producing region in the country. GrowGen will now own 20 stores in the state of California – its largest footprint.

Herve

Investors continue to show their desire to invest in edible brands within the cannabis industry. The latest to have no problems raising money is Hervé.  Well-known as the maker of those stunningly beautiful infused macarons, Herve closed on its oversubscribed $3 million Series A round of funding. Hervé said the funds will support its growth and fund new opportunities.

In Other News

Keef Brands, founded in 2010 as one of the original cannabis-infused beverage companies and now ranked by BDS Analytics as the country’s number one cannabis beverage brand, is proud to announce Travis Tharp as the company’s new Chief Executive Officer. Tharp first joined Keef Brands in 2017 as Chief Operating Officer, was named President in 2019, and in 2020 oversaw the company’s largest year over year growth of beverage market share (by dollars sold). The transition of Tharp moving into the CEO role is the result a long-planned succession. Co-Founder and former CEO Erik Knutson, who will remain on the Board of Directors, worked with Tharp and the Board to position the company for this move and expansion. The appointment comes at a pivotal time, as Keef Brands is poised to release cutting-edge new product formulations and introduce their revolutionary wave of social consumption into more recently legalized markets across the country.


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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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