Daily Hit Archives - Green Market Report

StaffStaffJune 17, 2019
daily_hit004-1280x533.png

8min1040

It’s time for your Daily Hit of cannabis financial news for June 17, 2019.

On The Site

Akerna Approved For Nasdaq

Today MTech Acquisition Corp. and MJ Freeway LLC announced the completion of their merger to form the Akerna Corp. MTech Acquisition Corp. (NASDAQ: MTEC), the first US-listed Special Purpose Acquisition Company (SPAC) focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway, a leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform, has now become the first compliance technology company in the cannabis space to be traded on Nasdaq. Jessica Billingsley also becomes the first female CEO from the cannabis industry to lead a company that will trade on the exchange.

Colorado

“It’s crazy to think how much money states are flushing down the toilet by keeping marijuana in an illegal market,” said Mason Tvert, VP of Communications at Vicente Sederberg, LLP upon the release of a report that detailed how the over $1.2 billion raised in cannabis tax revenue has helped the state thrive.

According to the report released this week from Vicente Sederberg, LLP, since regulating cannabis for adult use in 2014, the Colorado government has collected more than $1 billion in cannabis-related taxes and fees, which have gone into local and state improvement programs.

Breath of Life

Israeli medical cannabis producer Breath of Life International Ltd. (BOL) cut its valuation for a pending Toronto Stock Exchange initial public offering by about 17%. According to a Canadian regulatory filing on June 14, the company is seeking to list 14% of its shares at a fully allotted valuation of CAD 1.02 billion (USD 827 million), compared to a previous valuation estimate of about $1.19 billion, following its May 23, 2019 prospectus.

Breath of Life produces medical cannabis and cannabis products — including 99%-pure cannabinoids — distributed primarily through pharmacies. The company currently supplies 48 pharmacies from its single facility in the southern Israel kibbutz of Revadim. It is targeting export markets in the E.U., Canada and Australia.

Amersterdam

The Netherlands’ on-off love affair with cannabis has taken another twist as three of its largest cities have backed out of a government experiment to end the legal grey areas that exist around the country’s famous coffee shops.

The weed experiment, or Wietexperiment, would allow 10 licensed producers to legally grow and distribute cannabis to Netherlands coffeeshops, which would then sell and serve their customers without fear of sanction.

However, Amsterdam, Rotterdam and The Hague have all dismissed the plans and pulled out of the project, leaving just Utrecht to sign up. Despite their willingness to go ahead, officials in Utrecht have also complained of the plan to force all of its coffee shops to take part, however.

In Other News

Probiotic

Probiotic Holdings, LLC and its subsidiaries Proviera Biotech, LLC and SCD Probiotics announced closing an additional $6 million investment. This includes UMB Bank providing a credit facility and AltCap providing financing through the use of federal New Markets Tax Credits that were purchased by U.S. Bank to facilitate debt financing. The latest round of financing brings the total to $9.3 million since January 2019.

“Through strategic capital and industry partnerships over two decades in business, Probiotic Holdings has developed a broad range of cost-effective bio-based products,” said Probiotic Holdings CEO Matt Wood. “Our cutting-edge technology enables us to produce fermentation products from renewable resources that ultimately perform better and are healthier for people and the planet than traditional petrochemicals.”

Valens

Valens GroWorks Corp. (CSE: VGW) (OTC: VGWCF) received conditional approval to list the common shares and warrants of the Company on the TSX Venture Exchange as a Tier 1 life sciences issuer. The listing is subject to the company fulfilling certain requirements of the TSXV in accordance with the terms of its conditional approval letter dated June 14, 2019.

Wildflower

“Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF)  announced that it has received and fulfilled an opening purchase order from Dillard’s department stores that will place Wildflower wellness products in Dillard’s stores across the US.”

“Wildflower’s premium hemp CBD infused products can now be seen throughout 292 Dillard’s locations across the U.S. and the company’s retail presence throughout the country continues to expand. Rooted in transparency and best practices, Wildflower is looking forward to entering new key markets such as Florida and Texas to educate new consumers on salable products in the region. Wildflower has received subsequent purchase orders from Dillard’s and is fulfilling orders as they are received.”

Golden Leaf

Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) announced that the company’s Board of Directors has appointed John Varghese, presently a Director of Golden Leaf, to succeed Karyn Barsa as Interim President and CEO of the Company and lead the Company through a strategic assessment of its management and operations. Ms. Barsa is no longer with the company. Mr. Varghese is mandated to lead the search for a new CEO and a new CFO immediately.  Company Controller Jason Benedict will serve as Interim CFO until a qualified replacement has been hired by the company.

Choom

Choom (CSE: CHOO)(OTCQB: CHOOF) announced that Choom Niagara, the first legal, adult use cannabis store to operate in Niagara Falls, ON has produced over $49,000 in sales on its opening day.”

“We are really happy with the turnout we had for Choom Niagara’s opening day.” states Chris Bogart, President and CEO of Choom “We’ve had a lot of support from the local community, and we’re excited to bring Choom to Niagara Falls. The feedback from our customers has been fantastic, and that is a testament to our dedicated staff and in-store experience.  Doing over $49,000 in sales on the first day of operation is a great milestone for us and our team who have worked so hard to get where we are today.”


William SumnerWilliam SumnerJune 13, 2019
daily_hit004-1280x533.png

6min1890

It’s time for your Daily Hit of cannabis financial news for June 13, 2019.

On the Site

Cannabis’ Black Market Continues to Thrive Amidst Continued Legalization

Despite legalization continuing to spread, and efforts advocating towards federal legalization of cannabis, the black market in the U.S. for cannabis continues to thrive across the nation.Simply put, despite access and legal product being available, people are still as or more likely to purchase their cannabis from black market sources, with this trend not showing any signs of stopping.

HEXO Corp.

HEXO Corp (TSX:HEXO) ( NYSE-A:HEXO)  reported its financial results for the third quarter of the 2019 fiscal year with $15.9 million in gross revenues and a net loss of $7.7 million. The company claims it is on track to reach $400 million in net revenue in 2020 and says it will double net revenue in the fourth fiscal quarter.

Executive Spotlight: Amanda Ostrowitz, Founder & CEO of RegsTechnology

Amanda Ostrowitz is a regulatory attorney and entrepreneur who’s identified a need for a user- friendly, scalable platform to research regulations and laws in the cannabis industry. Amanda founded RegsTechnology and its current product, CannaRegs, as a tool to aid attorneys, business people, and governments with localized tracking of regulatory issues.

MJMicro Conference

Although adult-use cannabis is legal in nine U.S. states, problems persist with companies trying to gain access to capital and essential financial services. Consequently, the industry has devised a series of methods and institutions to circumvent these difficulties; from credit unions to keeping their funds in a giant safe. Another unique way that the cannabis industry has adapted to the issue has been connecting companies with private capital investment through investor forums. A perfect example of this is the MJMicro Conference planned for June 25, 2019, in New York City.

In Other News

Tilray

Tilray, Inc. (NASDAQ: TLRY) today announced the appointment of Kristina Adamski as Executive Vice President, Corporate Affairs. Adamski will help coordinate the company’s corporate affairs team and help oversee the company’s public relations, corporate social responsibility and government affairs functions. Adamski previously served as Nissan North America’s Vice President of Corporate Communications for more than three years. “We’re thrilled to welcome Kristina to our growing senior leadership team. We’re confident that her vast experience in corporate affairs and global communications will support Tilray’s long term global growth strategy as we expand around the world,” says Brendan Kennedy, CEO, Tilray.

Treehouse REIT

Treehouse Real Estate Investment Trust, Inc. announced that it has closed on nearly a $16 million debt commitment with a large, federally insured and regulated commercial bank. As the company continues to acquire cannabis-use properties, the note commitment will carry a 5.6% interest rate and provides for a revolving facility for future notes. “Treehouse is excited to announce that we have successfully procured federally insured commercial bank financing,” said Brian Kabot, Stable Road Capital Chief Investment Officer and Treehouse Board Member. “The capital relationship allows us to continue executing cannabis-related real estate acquisitions in a scaled, non-dilutive manner that is most accretive to our investors. We are witnessing federally regulated lenders enter the cannabis space and we are thrilled to be at the forefront of those efforts.”

Canndescent

The luxury cannabis brand Canndescent announced that it has signed a definitive agreement to acquire buildings and operating licenses in Nevada, Michigan and Massachusetts for $28.5 million. The acquired building will be retrofitted to support the company’s proprietary cultivation and extraction methods. “Our expansion is a huge win for cannabis consumers as the best of California cannabis will finally be available in other markets,” said Canndescent CEO Adrian Sedlin. “We’re sort of the ‘anti-MSO’ or as I like to call it, we’re an MSBO, Multi-State Brand Operator, having nailed brand and execution first and now rolling up assets with intentionality and understanding.”


William SumnerWilliam SumnerJune 12, 2019
daily_hit004-1280x533.png

6min1500

It’s time for your Daily Hit of cannabis financial news for June 12, 2019.

On the Site

Oregon House Passes Cannabis “Export” Bill

In a bi-partisan vote of 42-17 on Tuesday, the Oregon House passed a historic measure that will allow Oregon’s Governor to enter into agreements with other consenting states to allow for the legal export of cannabis between state markets.  Governor Brown is expected to sign the bill.

MJ Freeway

Seed-to-sale cannabis software company MJ Freeway and MTech Acquisition Corp. (NASDAQ: MTEC) agreed to issue and sell an additional 215,475 shares of Class A common stock at $10.21 per share as part of its previously announced private placement in a deal valued at $2.2 million. The company is expected to go public within months.

Coda Signature

Luxury cannabis brand Coda Signature California closed on a $24.4 million round of Series A funding. Altum Investments is the parent company of The Grow Foundry California, which goes by the name of Coda. The company said that the funds will be used to accelerate expansion into emerging North American markets for Coda Signature-branded premium cannabis-infused edibles, topicals and concentrates. In addition to that, the money will also be used for strategic additions to the management team.

In Other News

Willow Industries

Willow Industries announced that it has raised $2 million in venture funding. The fund raise was co-led by AFI Capital Partners and Welcan Capital and were joined by Halley Venture Partners and Flatiron Venture Partners. Willow Industries is a technology company that specializes in hemp and cannabis decontamination without compromising the integrity of the flower. “The support we received in this financing round from our investors substantiates the value that Willow provides to cannabis cultivators around the country,” said Jill Ellsworth, Willow’s Founder and CEO. “This investment allows us to maintain our position as the leader in what we’re passionate about: consumer safety and helping cultivators across the country sell high-quality, clean, safe cannabis.”

Neptune Wellness Solutions

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced the release of its financial results for the quarter and fiscal year ending on March 31, 2019. Year-over-year evenue for the quarter declined from $7 million to $5.8 million. Net loss for the quarter increased from a loss of $4.8 million to a net loss of $12.4 million. The net loss for the fiscal year was $23.2 million, down considerably from a net income of $20 million in the previous year. Despite the loss, management remains positive in the company’s outlook for the coming fiscal year. “With the largest extraction facility in Canada, with a licence, and a transaction pending for a second facility in the United States, multiple supply partnerships now in hand, and solid and growing relationships with new clients, we are on our way to realizing our objective to become the global leader in cannabis extraction,” said Jim Hamilton, CEO of Neptune.

MediaJel

The cannabis advertising and marketing firm MediaJel announced that it has acquired Potnt Agency, a hemp and cannabis-focused public relations agency. Under the agreement, Potnt CEO Jennifer Price will stay on as MediaJel’s Vice President of Communications. “Public relations is one of the most relevant communications disciplines for the feverishly evolving cannabis industry. The old narrative needs to be changed. Today’s market is fully different, and successful communications embracing this market is, to say the least, quite complicated at the local level,” said Thomas Harrison, Chairman of the Board, MediaJel.

 


StaffStaffJune 11, 2019
daily_hit004-1280x533.png

6min1380

It’s time for your Daily Hit of cannabis financial news for June 11, 2019.

On the Site

HempFusion

US hemp-based CBD company HempFusion has a distribution with over 3,400 retailers and is now partnering with RADD Capital to advise the company on strategic fundraising initiatives including multiple staged private financings and a future Canadian Initial Public Offering.

The company is FDA compliant and one of two companies with pending Self-Affirmed GRAS Affirmation. HempFusion has 31 products launched and 25 in the pipeline with two unique brands. It is one of the first 13 companies certified by the US Hemp Authority (GMP Verification).

C21 Investments

C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF) announced unaudited revenue of $3.2 million for the month ended May 31, 2019. Unaudited Gross margin (before fair value adjustments) is estimated to be 50%. This amount reflects revenue from the Company’s operations in Nevada and Oregon. These figures include revenue from Swell Companies, starting from the closing date of the acquisition of May 24, 2019.

According to the company statement, the company delivered $7.7m in first quarter reported sales, Q1 had 89 days which is an average of $86,500 per day.  The company’s May sales increased averaging $103,000 per day. During the month, C21 Investment’s retail dispensaries completed a record 53,120 customer transactions compared to 38,076 for May 2018, prior to their acquisition by C21.

In Other News

Trulieve

Trulieve Cannabis Corp.  (CSE: TRUL) announced that it has priced its previously announced public offering of units of the company comprised of an aggregate principal amount of $70 million of 9.75% senior secured notes maturing in 2024 and an aggregate amount of 1,470,000 subordinate voting share warrants.

The company will issue an aggregate of 70,000 Units at a price of $980 per unit for gross proceeds of $68.6 million. Each unit will consist of one Note and 21 Warrants. Each Warrant will be exercisable for three years to purchase one subordinate voting share of the Company at an exercise price of C$17.25 per share, subject to adjustment in certain events.

Cresco Labs

Cresco Labs Inc.  (CSE: CL) (OTCQX: CRLBF) provided an update on its acquisition of CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF). Under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended Cresco Labs is required to file a notification to U.S. antitrust authorities and observe a waiting period before completing the Transaction. On June 10, 2019, pursuant to the HSR Act, the Company received a request for additional information from the United States Department of Justice Antitrust Division. The Second Request extends the HSR Act waiting period for up to 30 days after Cresco Labs and Origin House have each substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the Department of Justice.

Shareholders have approved the deal.

Sparx Cannabis

Sparx Cannabis, a vertically-integrated, family-owned and California-grown cannabis lifestyle company, announced today the completion of the Company’s Series A funding round with $10 million raised through private funding.

The funding comes at a vital time in Sparx Cannabis’ growth strategy. The Company plans to utilize the funds raised in their Series A round to continue to build out facilities and further their reach within the state of California to serve more customers. Funds raised will go toward the build-out and management of a manufacturing building called Sparx Distillery and the build-out of a distribution center. Additionally, the funds will be utilized to further promote the Sparx Cannabis brand as well as upgrading and running current Sparx Cannabis cultivation sites.

The Series A funding will also allow Sparx Cannabis to employ more residents of California’s central coast as additional employees will be needed to fill the infrastructures once build-out is complete.


William SumnerWilliam SumnerJune 6, 2019
daily_hit004-1280x533.png

6min2340

It’s time for your Daily Hit of cannabis financial news for June 6, 2019.

On the Site

Cresco Capital Partners

Cresco Capital Partners (Cresco Capital) announced today that it has closed an oversubscribed fund of $60 million. Founded in 2014, Cresco Capital was one of the first and largest private equity firms to focus solely on the legal cannabis industry.

Italian court bans cannabis derivatives, in blow to popular sector

Italy’s top court has banned the sale of cannabis products, on the heels of threats by the country’s deputy prime minister to close shops who sell legal derivatives of the plant. Deputy Prime Minister and far-right League leader Matteo Salvini had declared war on so-called “cannabis light” shops in the run up to the European Parliament elections.

In Other News

Harborside

Harborside Inc. has announced that it has filed its listing statement with the Canadian Securities Exchange and that it will begin trading shares of the company on June 10, 2019 under the ticker symbol “HBOR.” “The start of trading represents a significant milestone for Harborside, and we’re grateful for the support that we’ve received from the CSE throughout the process,” said Harborside CEO Andrew Berman. “We’re excited to move forward as a public company, with a vehicle that attracts growth capital from new investors, and continue maintaining Harborside’s status as California’s premier cannabis operator.”

PharmaCielo Ltd.

PharmaCielo Ltd. (TSXV: PCLO) has entered into an implementation agreement to acquire all of the issued and outstanding shares and listed options of the global medical cannabis company Creso Pharma Ltd. for A$122 million. Under the agreement, PharmaCielo will pay A$0.63 per share, which is a premium of 50% over the closing trading price of the Creso Pharma shares on May 31, 2019. “PharmaCielo’s acquisition of Creso Pharma, harnessing the synergies between us, creates a combined company that is poised to become a global powerhouse in the medicinal cannabis industry,” said David Attard, CEO of PharmaCielo. “Upon closing of the transaction, the combined company will quadruple our global footprint with presence in more than a dozen countries spanning North and Latin America, Switzerland, Europe, the Middle East, Australia and New Zealand.”

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA: ARAH) reports that it is offering 35,000 convertible debenture units of the company, at a price of $1,000 per unit, for a total of $35 million. Leading the offering is Mackie Research Capital Corporation and BMO Capital Markets, which is acting on behalf of a syndicate of agents including Canaccord Genuity Corp.  The proceeds of the offering will be used for working capital requirement and other general corporate purposes.

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) has entered into a securities purchase agreement for the sale of up to $14 million of the company’s common stock from an affiliate of the private equity firm Dye Capital & Company. The company will use the proceeds to fund growth initiatives. The company also announced a series of pending acquisitions, including MedPharm Holdings, Colorado’s first licensed cannabis research & phytopharmaceutical company; Medicine Man Denver; Los Sueños Farms,  North America’s largest sustainable cannabis farm; and Mesa Organics, a cannabis products manufacturing company. “Dye Capital is the right partner for our Company with a unique set of skills and experience in merger and acquisition transactions, integration experience, and scaling operations.  Our entire team is excited about teaming with Dye Capital,” said Medicine Man Technologies Co-Founder and CEO Andy Williams.


William SumnerWilliam SumnerJune 5, 2019
daily_hit004-1280x533.png

4min1120

It’s time for your Daily Hit of cannabis financial news for June 5, 2019.

On the Site

Free Advice For California’s Cannabis Tax Collection

Everyone knows the maxim “Free advice is worth what you pay for it”  There are, however, exceptions.  Everyone knows a second maxim “The exception that proves the rule”  In this article, we provide free advice to the California Department of Tax and Fee Administration (“CDTFA”).

Creative Digital Methods For Effectively Marketing A Cannabis Company

One of the most interesting and exciting elements to the, now emerging, legalized cannabis trade is how cannabis’ image, its past connotations and all of the potential uses that it has open to it, affects its sales and sales potential. Given that we’re talking about image, we’re really talking about marketing, and how you could creatively market something which was previously not only illegal most places, but actively frowned upon…

In Other News

Gabriella’s Kitchen

Gabriella’s Kitchen Inc. (CSE: GABY) (OTCQB: GABLF) announced that it has upsized a previously announced private placement offering of C$10 million units of the company up to C$20 million. Advised by its lead underwriter, GMP Securities L.P., the company has structured the upsized offering with a base of up to C$16 million with an over-allotment option of C$4 million. The proceeds of the offering will go towards capital expenditures, potential acquisitions, brand and sales investment, working capital, and general corporate purposes.

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) announced that it has entered into binding term sheets to acquire Colorado-based Los Sueños Farms, LLC, North America’s largest sustainable cannabis farm, and Mesa Organics Ltd., a cannabis dispensary and infused products manufacturing company. The acquisition was made possible through the passage of the Colorado measure House Bill 19-1090, which opens Colorado’s cannabis industry to outside investors.

Green Thumb Industries

Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) has announced that it has closed its acquisition of Integral Associates. Included in the acquisition is Integral Associates’ three high-traffic Essence retail stores located in the Las Vegas area, including the only cannabis retail store on the Las Vegas Strip; eight additional retail licenses in Nevada; a retail license in West Hollywood; Desert Grown Farms, a 54,000 square foot state-of-the-art cultivation and processing facility; and Cannabiotix NV, a 41,000 square foot cultivation and processing facility.


William SumnerWilliam SumnerJune 4, 2019
daily_hit004-1280x533.png

4min1130

It’s time for your Daily Hit of cannabis financial news for June 4, 2019.

On the Site

FDA Holds Public Hearing on Regulating CBD

Last week, the U.S. Food and Drug Administration (FDA) held its first public hearing on regulating cannabidiol (CBD). Over the last several years, CBD has been growing in popularity as a health and wellness product. That popularity has only been amplified by the passage of the 2018 Farm Bill, which removed hemp and hemp-derived products (CBD included) from the federal government’s list of controlled substances. At stake in these hearings is a potentially billion-dollar market. According to Brightfield Group, the CBD market could grow to as high as $22 billion by 2022.

Green Growth Brands

Green Growth Brands, Inc. (GGB.CN) (GGBXF) has announced that it has executed an arm’s length definitive agreement to acquire all issued and outstanding shares of Spring Oaks Greenhouses (Spring Oaks) for approximately $54.6 million. Spring Oaks is a licensed medical cannabis provider in the state of Florida.

In Other News

DionyMed Brands

DionyMed Brands Inc. (CSE: DYME) (OTCQB: DYMEF) has announced its financial results for the quarter ending on March 31, 2019. Quarter-over-quarter, revenue rose from $5.5 million to $14.4 million. Adjusted EBITDA was a loss of $6 million, which the company attributes to increasing platform costs to support its continued growth activities. The net loss for the period was $1.03 million. “Our continued growth, both financial and operational, is a direct result of our ability to deliver today’s leading cannabis brands to consumers through the industry’s most efficient cannabis brands platform. Our first quarter financial results demonstrate the success of our efforts to scale our Direct-to-Consumer and retail distribution businesses through organic growth initiatives,” said DionyMed CEO Edward Fields.

Fire & Flower

Fire & Flower Holdings Corp. (TSXV:FAF) announced that it has entered into a letter of engagement with Eight Capital, pursuant to which Eight Capital and GMP Securities L.P. will purchase, as co-lead underwriters and joint bookrunners, 15 million convertible debenture units of the company for $15 million. A single unit consists of one $1,000 principal amount unsecured convertible debenture and 278 common share purchase warrants. Each warrant entitles the holder to purchase one common share of the company, for up to 24 months following the closing period, at a price of $1.45 per share. The company will use the proceeds from the offering for working capital and general corporate purposes.


William SumnerWilliam SumnerJune 3, 2019
daily_hit004-1280x533.png

5min1180

It’s time for your Daily Hit of cannabis financial news for June 3, 2019.

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) announced the release of their financial results for the first quarter of 2019. Year-over-year, revenue rose from $8.3 million to $19.2 million. Net loss for the period was $20 million, which the company attributes to planned investments in infrastructure and personnel. Adjusted EBITDA was $4.7 million. “By adhering to our four core initiatives: building a world class team, aggressively expanding our retail and wholesale footprint across the U.S., building, acquiring and expanding brands and distributing them across our footprint, and continuing on a path of profitable growth, we believe that we can fulfill our objective of becoming the most valuable cannabis company in the world,” commented Harvest Health CEO Steve White.

TILT Holdings Inc.

TILT Holdings Inc. (CSE: TILT) (OTCQB: SVVTF) released its financial results for the first quarter of 2019. Reported revenue for the quarter was $34.4 million, and pro forma revenue was $39.6 million. Adjusted EBITDA was $8.0 million, and the net loss was $77.89 million. “We are pleased to report our first quarter as a consolidated company, reflecting the strength of the business combination that has established TILT as one of the largest revenue producing companies in the cannabis industry,” said Mark Scatter Day, TILT’s interim CEO. “We have only begun to realize the synergies of our business combination, which we expect to drive incremental revenue growth and improved margins as we execute our business development and integration strategies.”

Vireo Health International

Vireo Health International, Inc. (CSE: VREO) announced the released of their financial results for the first quarter of 2019. Year-over-year revenue rose by 57% from $3.7 million to $5.8 million. Much of the revenue increase was driven by retail sales wholesale revenue generation in the states of Maryland and Pennsylvania. Gross profit before fair value adjustments was $2.1 million. The net loss was $3.4 million, and adjusted EBITDA was $3.8 million. “We continued to experience strong revenue growth during the first quarter, with increasing patient counts in Minnesota and New York and contributions from wholesale revenue streams in Maryland and Pennsylvania during the quarter,” said Vireo Founder & CEO, Kyle Kingsley.

Organigram Holdings

Organigram Holdings Inc. (NASDAQ: OGI) (TSXV: OGI) announced that it had closed a previously announced credit facility with Bank of Montreal as lead agent. The facility consists of a $115 million term loan and a $25 million revolving credit facility, which matures in May 2022. The facility includes an option to increase it in increments of $35 million, up to $175 million. The proceeds of the facility will go towards the funding of Phase 4 and 5 expansions of its Moncton campus and refinance its existing long-term debt with Farm Credit Canada.  “The closing of this credit facility reflects BMO’s and the syndicate lenders’ vote of confidence in our management team, ability to deliver financial results, and investment in our world-class Moncton campus,” said Organigram CEO Greg Engel. “Our current expansion plans are fully funded as we continue to remain on track for completion of Phases 4 and 5 of our campus.”

 


William SumnerWilliam SumnerMay 30, 2019
daily_hit004-1280x533.png

5min1750

It’s time for your Daily Hit of cannabis financial news for May 30, 2019.

On the Site

The Economics of Cannabis and Women Led Businesses

Women lead almost 30% of the businesses in cannabis and the opportunities are there. This group of distinguished women reviews the best sectors to build a business and how to obtain the capital for your company to thrive and grow. Click here to watch.

MJardin

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported its financial results for the quarter ending March 31, 2019, in Canadian dollars. The company delivered revenues of $10.9 million versus last year’s $6.7 million for the same time period. MJardin said it continued to see improvements in the sales of Cannabis from its WILL facility, recording $1.1 million in sales in the first quarter with a $0.8 million fair value adjustment to inventory.

In Other News

Illinois

The Illinois State Senate has voted to approve the Cannabis Regulation and Tax Act. Under the approved measure, cannabis would be taxed and regulated like any other substance and would help communities disproportionately affected by the “War on Drugs.” This is just one step of many in ending cannabis prohibition. Even after this bill passes there will still be work to do to give adults in Illinois access to cannabis without having to purchase it from a limited amount of stores and cultivators,” said Dan Linn, Executive Director of Illinois NORML.

Green Thumb Industries

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) today reported its first quarter financial results for the period ending on March 31, 2019. Quarter-over-quarter revenue grew by 34% to $27.9 million. Adjusted EBITDA was $4.9 million. For the quarter, the company incurred a net loss of $9.7 million, which the company attributes to the decrease in value from a variable note receivable in other income. The company currently has $151.1 million in assets and $6.7 million in outstanding debt.

Cansortium

Cansortium Inc. (CSE: TIUM.U) today reported its financial results for the period ending on March 31, 2019. Revenue for the quarter was $5.5 million and the experienced a consolidated net loss of $16.6 million. “We expect 2019 to be a year of expansive growth and we are reaffirming our previous full year outlook,” said Cansortium CEO Jose Hidalgo. “Our team is focused on positioning the Company and the Fluent brand to capitalize on rapidly expanding opportunities in the U.S., while laying important groundwork for future expansion in international markets.”

Indus Holdings

After the market close yesterday, Indus Holdings announced the release of their first quarter financial results. Year-over-year, revenue grew by 180% to $6.4 million. The gross margin increased from 10% in the previous quarter to 21%.  “As consumer awareness and demand grows, for a company to be successful, it has to be strategic and adaptable with the capacity to scale up. We will selectively grow in a disciplined manner with smart and very accretive deals with an eye to high return – adding strategic and like-minded partners as we position ourselves as a multi-state operator,” stated Indus co-founder and CEO, Robert Weakley.


William SumnerWilliam SumnerMay 29, 2019
daily_hit004-1280x533.png

6min1560

It’s time for your Daily Hit of cannabis financial news for May 29, 2019.

On the Site

Acreage Holdings

Acreage Holdings, Inc.  (ACRG-U.CN) (ACRGF) reported financial results for the quarter ending March 31st, 2019 with revenue rising 487% to $12.9 million, but the company also delivered a whopping net loss of $31.2 million.  Looking at pro forma results, the revenue would have been $33.1 million and the adjusted net loss would have been $15.5 million.

Special Report: Current Issues in Marijuana Regulation – Veterans Struggle to Gain Access to Medical Marijuana

Thirty-three states and the District of Columbia have enacted medical marijuana programs. Despite this expansion military veterans often face greater obstacles to gaining access to medical marijuana than other groups.

Another Delay for New Jersey Cannabis Legalization

An ongoing political saga took another unpredicted turn this month. After over a year of building momentum, hopes for a legislative vote on legalizing the adult-use of recreational cannabis have once again faded.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc. (CSE: CWEB) (OTCQX: CWBHF) announced that it has received conditional approval to list its common shares on the Toronto Stock Exchange (TSX). The company anticipates that it will begin trading as of market open on May 31, 2019. As part of its listing on the TSX, the company will delist its stock on the Canadian Securities Exchange at the close of the market on May 30, 2019. “As the market leader in hemp CBD extract products, we are very proud to be the first US-based hemp company to receive a senior listing on a major exchange such as the TSX,” said Joel Stanley, Chairman and Co-Founder of Charlotte’s Web. “The TSX is Canada’s most senior exchange and a tremendous validator of our company’s corporate governance and evolution.”

Origin House

Origin House (CSE: OH) (OTCQX: ORHOF) released today their financial results for the first quarter of 2019. Revenue for the quarter was $11.2 million, the gross margin was $1.7 million, and adjusted EBITDA was $12.7 million. As of March 31, 2019, the company had $39.3 million in cash and approximately $269.4 million in assets. On Jun 11, 2019, Origin House will hold a special shareholders meeting regarding Cresco Labs Inc.’s previously announced acquisition of all of the company’s issued and outstanding shares.

TREC Brands

TREC Brands Inc. announced the launch of two brands, WINK and Blissed, and a $10 million private placement. Blissed is a female-focused cannabis oil brand and WINK is TREC’s second luxury cannabis brand. “We are proud of the premium nature of our organization and our actions to create an industry-wide movement around community support,” says Trang Trinh, CEO, TREC Brands. “With Blissed, the goal is to uplift the modern woman through education and content that complements her lifestyle, while giving back to causes in her neighborhood that matter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) today released their financial results for the third quarter for the 2019 fiscal year. Revenue rose by 22% to $36.6 million. The gross profit margin  after biological asset adjustment was 53.7%. For the quarter, the company reported an adjusted EBITDA loss of $42.6 million and a net loss of $63.1 million. “Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said Adam Bierman, MedMen co-founder and chief executive officer. “We continue to march onward towards profitability.”



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 7 hours

Executive Spotlight: Ben Kovler, CEO, Founder & Chairman of Green Thumb Industries (GTI)

Back to Top

You have Successfully Subscribed!