Daily Hit Archives - Green Market Report

StaffSeptember 21, 2021
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7min4650

It’s time for your Daily Hit of cannabis financial news for September 21, 2021.

On the Site

SEC

The Securities and Exchange Commission (SEC)  filed charges against three individuals and one issuer on a crowdfunding scheme for two cannabis companies that raised $2 million. The money was supposed to be used to buy and invest in cannabis properties, but no money was ever used for those purposes. Instead, the money was siphoned off for personal use. In addition to that, the SEC also charged the registered crowdfunding portal, TruCrowd, and its CEO Vincent Petrescu, who placed the offerings on the portal’s platform. According to the SEC’s complaint, Robert Shumake, alongside associates Nicole Birch and Willard Jackson, conducted fraudulent and unregistered crowdfunding offerings through two cannabis and hemp companies, Transatlantic Real Estate LLC and 420 Real Estate LLC. The complaint alleges that Shumake and Birch raised $1,020,100 from retail investors through Transatlantic Real Estate, while Shumake and Jackson raised $888,180 through 420 Real Estate. Shumake, Birch, and Jackson allegedly diverted investor funds for personal use rather than using the funds for the purposes disclosed to investors.

Skymint

Michigan-based SKYMINT, is buying 3Fifteen Cannabis and also closing its $70 million Senior Secured Term Loan from Tropics LP, an affiliate of SunStream Bancorp Inc., a joint venture initiative sponsored by Sundial Growers Inc. (Nasdaq: SNDL), and its $8 million equity investment from Merida Capital Holdings. The acquisition will bring Skymint’s workforce to 730 employees and a combined retail portfolio of 27 locations totaling 101,000 square feet, with an additional 18+in the 2021-2022 pipeline. The combined company will now have a dominant market share in four key Michigan regions: Grand Rapids, (4 locations), Greater Lansing (4 locations), Detroit / Metro Detroit (5 locations), and Ann Arbor (2 locations). In addition, it will have two indoor cultivation facilities totaling 77,000 square feet with a third indoor cultivation facility – totaling 184,000 square feet – due to come online next year and a 1,000-acre sustainable, sun-grown farm (Michigan’s largest outdoor cannabis farm).

Medical Consumers

Cannabis data and analytics specialist Headset just released its latest report comparing US medical and recreational cannabis market development, bearing results that reveal sales patterns and unifying trends across the industry.  The report’s findings are grounded in the context of the predominant pattern of a three-step process in cannabis market development, including prohibition, medical access, and adult-use legalization. 

Though there are exceptions to this evolution where markets leapfrog medical use and go straight from cannabis prohibition to adult-use legalization, flagship states like California, which approved medical use in 1996 but took another twenty years to allow adult-use cannabis, follow a more predictable pattern. The report compares California’s slower rollout to Illinois accelerated process, evident in its shorter six-year span between medical and recreational legalization. 

In Other News

Dispense

Dispense, a leading digital dispensary management platform, is announcing the completion of its $2M seed funding. The round of investment is led by NextView Ventures with NextView co-founder, Lee Hower, joining the Dispense board. Dispense is one of the fastest growing software companies in the cannabis space. The platform is currently used by dispensaries in five states, including Illinois, Michigan, Ohio, New Jersey and Massachusetts. Since its beta launch in August 2020, Dispense has processed over 1.5 million orders, with an order value of over $200 million with only two employees. Co-founders Kyla Moore and Tim Officer plan to use the funding to hire top talent, continue developing and enhancing their product, and scale their sales and marketing efforts. 

Helix

Helix BioPharma Corp. (TSX: HBP), an immuno-oncology company developing innovative drug candidates for the prevention and treatment of cancer, announced that the company’s Chairman of the Board, Prof. Dr. Slawomir Majewski, will immediately assume the role of Interim CEO while the Company continues to identify and evaluate candidates.


StaffSeptember 16, 2021
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4min6400

This is your Daily Hit of cannabis financial news for September 16, 2021.

On The Site

Acreage

Acreage Holdings, Inc. (OTC: ACRHF, ACRDF) is selling its four Oregon dispensaries to Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF). The divestiture is part of Acreage’s strategy to target only core states versus trying to be the largest MSO in the most states.  The deal is valued at $6.5 million. Acreage’s four Oregon retail dispensaries are branded as Cannabliss & Co. and the sale will end the company’s presence in the state. The company said in a statement that the Oregon stores were negatively affecting the company’s bottom line and utilizing management resources.

Awakn

It’s been a busy week for psychedelic company Awakn Life Sciences Corp. (NEO: AWKN) (OTCQB: AWKNF) who reported its financial results for the quarter ending July 31, 2021 and announced an acquisition. On Wednesday, Awakn reported its earnings, but the relatively new company has no revenues to speak of. Instead, the company reported that it had a net loss of $9.1 million for the six months ending in July. Awakn also addressed its situation as a going concern due to its lack of incoming revenue. However, it has been able to raise money and currently has $8.7 million in cash. The company completed an $8.3 million financing at $2.50 per share in conjunction with its listing on the Neo Exchange.

In Other News

Australis Capital Inc., operating as AUDACIOUS (CSE: AUSA) (OTC: AUSAF) is buying the outstanding shares of BW Macaw Group, Inc. (“Herbs”) for $5 million, in an all-stock deal. The retail license, located at 543 Parrot Street, San Jose, Calif. 95112, is part of the contemplated transaction, as well as Herbs’ business license to cultivate, manufacture (production of derivatives and edibles), and distribute cannabis products.

 Additionally, Herbs has entered into a distribution agreement with EAZE, California’s largest legal cannabis delivery and distribution company. The Company has two contract manufacturers lined up to commence production of the Company’s products in California.

 “This deal creates a platform for our further expansion in California through a compellingly valued transaction that sees us establish a brick-and-mortar presence in an underserved market while teaming up with EAZE, one of the marquee names in the industry with more than 800,000 registered customers,” said Terry Booth, CEO of AUDACIOUS. “Through our EAZE partnership, we can provide consumers throughout California access to our award-winning brands, including our LOOS shots and new products in development that will be launching soon. In addition, with a license allowing manufacturing and cultivation, this transaction, once closed, will provide us with the option to scale up operations throughout the value chain to capture higher margins. The transaction will accelerate our revenue growth, while reflecting our ongoing execution towards becoming a tier one MSO.”

 


StaffSeptember 14, 2021
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6min4860

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

On the Site

High Tide

High Tide Inc. (NASDAQ: HITI) reported its financial results for the third fiscal quarter of 2021 ending July 31, 2021, as revenue increased by 99% to $48.1 million versus $24.1 million in the same quarter last year. High Tide noted that the financial results included the acquisition of META Growth Corp., Smoke Cartel, Fab Nutrition, and DHC Supply LLC. The net loss for the quarter was $1.7 million versus last year’s net income of $3.8 million for the same time period. Geographically, $38.4 million of revenue was earned in Canada and $9.6 million in the United States. Revenue from the U. S. increased to $9.6 million, versus $5.7 million for the second quarter of 2021, representing a 69% increase sequentially.

Fire & Flower

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced its financial results for the fiscal second-quarter ending July 31, 2021, as revenue rose 51.4% to $43.3 million over last year’s $28.6 million. Fire & Flower delivered a net income of $19 million versus last year’s net loss of $29 million. Digging into the company’s earnings, retail revenue rose by 36.3% year-over-year to $31.8 million. However, in troubling news, the company noted that same-store sales decreased 14% for forty-eight (48) stores in operation during the comparable period in Q2 2021 due to a surge in newly licensed retail cannabis stores in Ontario, from 665 on May 1, 2021, to 981 at July 31, 2021. Fire & Flower contributed to the surge by opening seven new stores in Canada, bringing total stores to 91. In early June 2021, the Ontario cannabis market opened up from lockdown due to COVID-19, allowing for foot traffic into all Fire & Flower retail stores.

Plus Products

It’s a sign of how difficult it is to be a CBD-only company. This week Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) filed for the Canadian version of bankruptcy. According to Plus’ filing, it has secured court protection from its creditors under the Companies Creditors Arrangement Act or “CCAA”, in order to restructure its business and financial affairs. Plus Products has canceled its Annual General Meeting previously scheduled for September 14, 2021.

Weedmaps

WM Technology, Inc., better known as Weedmaps  (Nasdaq: MAPS) is buying Sprout, a leading, cloud-based CRM & marketing platform for the cannabis industry. Weedmaps did not disclose the valuation of the deal. Sprout is a cannabis CRM and marketing software platform used by dispensaries and cannabis brands across the United States, Canada, and Puerto Rico. Sprout’s cannabis CRM platform includes an entire suite of omnichannel marketing solutions including customer relationship management, text & email marketing, loyalty, mobile wallets, QR codes, mobile surveys, mobile coupons, advanced customer segmenting, and analytics.

 

In Other News

GPS Global

The global consortium Gateway Proven Strategies (GPS.Global) announces the acquisition of the Global Cannabis Network Collective (GCNC), an elite network for cannabis executives building and transforming the international cannabis trade. The agreement brings Chris Day and Jillian Reddish, co-founders of GCNC, into ownership and executive positions at GPS. The duo continues to operate the GCNC day-to-day.

“This is a true merging of the minds. We have great respect for GCNC’s achievements joining global companies to expand the international supply chain. This acquisition is a natural fit initiating the next phase for GPS. It accelerates our goal of being the most trusted firm focused on helping companies navigate global markets and supporting ethically-minded entities in expanding the cannabis marketplace,” said GPS Founder and Chairman, Bob Hoban.


StaffSeptember 13, 2021
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4min6040

It’s time for your Daily Hit of cannabis financial news for September 13, 2021.

On the Site

Akerna
Akerna (Nasdaq: KERN) is buying 365 Cannabis, a cannabis business management software system built on Microsoft’s Dynamics 365 Business Central in a $17 million deal at 2.1x LTM revenue. The deal will be paid with $4 million in cash and $13 million in stock with a potential earnout of $8 million. The acquisition is expected to close in the fourth quarter of 2021. “By adding 365 Cannabis into our Akerna ecosystem, we will continue to create new standards and best practices around compliance in every state, province, and country across the globe, standardize how the global supply chain is managed, and forge best practices in technology and hosting,” says Jessica Billingsley, Chief Executive Officer of Akerna. “The synergies between our two companies’ products and offerings will finally create all in one for the entire cannabis industry, on a global scale.”

Jushi
Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its previously announced acquisition of Massachusetts-based Nature’s Remedy in a deal valued at $91.2 million. Jushi also noted that the deal was revised resulting in 4.3 million fewer shares issued to Nature’s Remedy. However, Jushi did pay an additional $2.9 million in cash to acquire excess inventory worth $17.5 to $22.5 million at prevailing wholesale prices.

Mass. Mayor

The former mayor of Massachusett’s town Fall River Mayor Jasiel Correia could face 11 years in prison for shaking down cannabis license applicants. The corrupt mayor was found guilty in May for stealing from investors with regards to an app he developed, but also for extorting money from cannabis applicants. He was convicted of 21 of the 24 counts he faced. On Friday, the government suggested Correia should be sentenced to 11 years in prison, then 24 months’ supervised release, $298,190 in restitution to certain SnoOwl investors. In addition, they are requesting that he pay $20,473 in restitution to the IRS, forfeit $566,740, and a final mandatory special assessment of $2,100.
In the government filing, which was posted on Law360, it was noted that Correia remained defiant despite having 33 witnesses testify against him saying that the truth would come out. Correia even suggested he refused a plea deal because he was innocent, but the government said no such deal had been offered.

In Other News

Heritage Cannabis

Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) has executed a term sheet with Merida Capital Partners IV LP for up to $1.5 million in Senior Unsecured Convertible Promissory Notes to fund the Company’s entry into the state of Missouri. Missouri’s first legal medical sale took place in October 2020, and, per the Missouri Department of Health and Senior Services, there are already 140 approved dispensaries responsible for over USD$65 million of retail sales in the first half of 2021, and USD$21 million of sales in the month of July.

RIV Capital

RIV Capital announced that it has received a cash distribution of approximately $6.5 million and that termination of PharmHouse’s proceedings under the Companies’ Creditors Arrangement Act (Canada) and PharmHouse’s assignment into bankruptcy under the Bankruptcy and Insolvency Act (Canada) is expected imminently. Pursuant to orders granted by the Ontario Superior Court of Justice (Commercial List) in the CCAA Proceedings, RIV Capital was entitled to the cash remaining in PharmHouse. The receipt of this cash distribution concludes the Company’s relationship with PharmHouse in all material respects.


StaffSeptember 2, 2021
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4min8550

It’s time for your Daily Hit of cannabis financial news for September 2, 2021.

On the Site

Forian

Healthcare tech company Forian Inc. (NASDAQ: FORA) has raised $24 million through a convertible note offering. The company said in a statement that the notes are convertible into shares of the company’s common stock at a conversion price of $11.98, the consolidated closing bid price of its common stock as reported by the Nasdaq on Tuesday, August 31, 2021. In addition to the fundraising, Forian appointed Michael Vesey as Chief Financial Officer effective September 2, 2021. Vesey will succeed Clifford Farren, who will remain with Forian in an advisory capacity through the end of the year to ensure an orderly transition.

Beverages

The global cannabis beverage market is estimated to reach $2.8 billion by 2025 and is projected to see a growth rate of 17.8% from 2019 to 2025. As consumer behavior shifts from carbonated soft drinks to health sodas and legalization gains more footholds across the country, the cannabis beverage market pivots to offer consumers potent and flavor-forward beverages that offer a fresh take on the time-honored ritual of “kicking back with a cold one”. Innovative technologies are likewise flourishing, a development that both drives and responds to growth in the cannabis beverages market.

NY

Green Market Report broke the news yesterday that New York’s Governor Kathy Hochul had named her two candidates for leading the adult-use cannabis legalization movement. Chris Alexander for the Executive Director of the Office of Cannabis Management and Tremaine Wright will be named Chair of the Board. Late Wednesday the state Senate confirmed both nominees to lead the agencies that will regulate cannabis sales in New York. The process had stalled under Governor Cuomo who publicly supported legalization, but often stalled the process behind the scenes.

 

In Other News

 

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) has received approval from the Florida Department of Health’s Office of Medical Marijuana Use (OMMU) to operate as Cannabist.

Effective immediately, Columbia Care’s 14 dispensary locations across the state will be renamed to Cannabist. Patients will continue to have access to the same high-quality cannabis products at their preferred dispensaries and will begin seeing retail improvements that reflect the new Cannabist brand and shopping experience.


StaffSeptember 1, 2021
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7min10330

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

On the Site

Gage

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) is buying Michigan-based Gage Growth Corp.  (CSE: GAGE) in a deal valued at $545 million. Gage’s portfolio includes the city and state approvals for 19 “Class C” cultivation licenses, three processing licenses, and 15 provisioning centers (dispensaries). Once the deal is closed, the combined business will have operations in 5 states and Canada, including 7 cultivation and processing facilities and 23 operating dispensaries serving both medical and adult-use cannabis markets in the U.S. and Canada.

Ayr Wellness

Ayr Wellness Inc. (OTCQX: AYRWF) is buying Pennsylvania-based PA Natural Medicine, LLC, which operates three licensed retail dispensaries in the Commonwealth of Pennsylvania. The deal is valued at $80 million but could see an extra $40 million if milestones are met. The deal is expected to close in the fourth quarter and Ayr said that it expects to rebrand the stores once the transaction is complete.

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) is buying a subsidiary of Harvest Health & Recreation Inc. (OTC: HRVSF) in an all-cash deal valued at $55 million. The company will be named Planet 13 Florida Inc. and will purchase a license to operate as a Medical Marijuana Treatment Center issued by the Florida Department of Health to the seller. The acquisition is dependent on the successful close of the Trulieve Cannabis Corp./Harvest arrangement transaction and the Florida Department of Health’s Office of Medical Marijuana Use approval for Planet 13 Florida.

GTI

Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) has bought Massachusetts-based GreenStar Herbals, Inc. The value of the transaction was not disclosed. The single state operator owns and operates two adult-use retail locations in Massachusetts. The acquisition also includes a third retail location, set to open in 2021 near Logan International Airport and the Encore Casino.

NY

It got confirmed that Governor Kathy Hochul will name Chris Alexander to be the Executive Director of the Office of Cannabis Management. Alexander is the government relations and policy director at the cannabis company Vill LLC, a Multi-State Cannabis Company based in Canada. He was also an Associate Counsel in the New York State Senate and Policy Coordinator for the Drug Policy Alliance.

In Other News

iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCPK: ITHUF), which owns, operates and partners with regulated cannabis operations across the United States, announced that it has won a dismissal of the complaints filed in the previously disclosed consolidated actions in the United States District Court for the Southern District of New York. The Consolidated U.S. Actions include (a) various shareholder class action claims filed in the Southern District of New York against, among others, iAnthus and certain of its current and former officers and directors alleging violations of the U.S. securities laws; and (b) a complaint filed by Hi-Med LLC in the Southern District of New York against iAnthus and certain of its current and former officers and directors alleging violations of the U.S. securities laws and other state-law claims.

DEA

A notice from the DEA to be published this Thursday proposes to adjust the 2021 aggregate production quotas for several controlled substances in schedules I and II of the Controlled Substances Act. DEA is proposing significant increases to the APQs of the schedule I substances psilocybin, psilocin, marihuana, and marihuana extract, which are directly related to increased interest by DEA registrants in the use of hallucinogenic controlled substances for research and clinical trial purposes. DEA firmly believes in supporting regulated research of schedule I controlled substances. The DEA now wants to produce 2 million grams of marijuana, or about 4,400 pounds, in 2021. That’s a 500,000-gram increase for its initial quota for the plant for this year. The quota was set at 50 grams for psilocybin, which has been revised to 1,500 grams—a 2,900%. DEA also wants to manufacture 1,000 grams of psilocin, instead of just 50 grams as initially proposed.


StaffAugust 31, 2021
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6min6150

It’s time for your Daily Hit of cannabis financial news for August 31, 2021.

On the Site

Valens

The Valens Company Inc.  (OTCQX: VLNCF) is buying  Citizen Stash Cannabis Corp. (formerly Experion Holdings Ltd) (TSXV: CSC) (OTCQB: EXPFF) in an all-stock deal valued at approximately $54.3 million on an enterprise value basis. Citizen Stash shareholders will receive 0.1620 of a Valens common share for each Citizen Stash Common Share held. The Exchange Ratio implies a premium per Citizen Stash Common Share of approximately 35.1%. Valens said the Citizen Stash acquisition is expected to be accretive in 2021 and 2022 before synergies and will provide Valens with a strategic, asset-light expansion into flower and pre-rolls, the largest segments of the Canadian cannabis market currently accounting for over 70% of retail sales. Prior to the acquisition, Citizen had signed a processing agreement with The Valens Company to outsource the production of Citizen Stash pre-rolls, supporting a lower cost of goods moving forward for pre-rolls.

Emerald

Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) reported its financial results for the second quarter ending June 30, 2021, with total sales of C$3.7 million, which increased over the first quarter’s C$2.6 million. The net losses for Emerald Health increased to $13.9 million over the previous quarter’s net loss of $2.9 million. The net loss included a $10.67 million non-cash impairment of an asset held for sale.

RWB

After the market closed on Monday, Red White & Bloom Brands Inc. (OTCQX: RWBYF) (RWB)  reported select second quarter 2021 financial results with revenue rising 13% from the first quarter to $13.3 million and a big improvement over last year’s $1.9 million for the same time period. RWB reported a net loss for the quarter was trimmed to $11.4 million from last year’s net loss of $23 million. While RWB does seem to be increasing its revenue, the company did note in its filing that it faces a huge mountain of debt that seems to overshadow the level of income that it is generating. The filing stated, “As at June 30, 2021, the Company has accumulated losses of $(100,885,345) since inception, and for the six month period ended June 30, 2020, the company incurred a net loss of $ (68,336,512) and net cash used in operations was $ 24,826,326. 

Harborside

After the close of the market on Monday, Harborside Inc.  (CSE: HBOR) (OTCQX: HBORF) reported its financial results for the second quarter ending June 30, 2021, as revenues were essentially flat year over year, but up sequentially. The revenue for the quarter was $16.19 million versus last year’s $16.14, but an improvement over the first quarter’s total revenue of $12.9 million. There are two analysts covering Harborside who had an average estimate for revenues of $12.4 million. Harborside delivered a net income attributable of $1.8 million in the second quarter versus a net (loss) of approximately $(1.7) million in 2020, an approximately 201% increase in net income on a year-over-year basis. The company attributed the year-over-year increase was due primarily to fair value gains related to other current assets which were recognized during the quarter.

In Other News

 

Organigram Holdings Inc. (TSX: OGI) (NASDAQ: OGI)has obtained a receipt for a final short form base shelf prospectus filed with the securities commissions in each of the provinces and territories of Canada to sell C$500 million worth of securities.


StaffAugust 30, 2021
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5min5790

It’s time for your Daily Hit of cannabis financial news for August 30, 2021.

On The Site

Hemp Farmers

As hemp prices continue to fall, farmers are leaving. When the Farm Bill of 2018 passed, farmers rejoiced at the ability to legally grow hemp. Visions of massive demand for CBD products caused farmers to plant thousands of acres. Indeed, it seemed a sure-fire thing. Seemingly overnight numerous products on retailers’ shelves had some version with CBD included. Body products, foods, and supplements all touted the benefits of having CBD added. Then it all fell apart as several problems combined to crash the market. The problems ranged from a lack of guidance from the FDA, falling prices, less demand for CBD than expected, weather-related issues, and a pandemic. The crops planted in 2019  led to a glut of biomass that persists today. Farmers that were unable to make any money have left the business leaving only the truly committed.

Australis

Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) delivered its unaudited financial statements and management discussion and analysis for the first quarter of the fiscal year 2022 ending June 30, 2021. AUSA revenues rose 2,652% to $1.7 million over last year and was a sequential increase of 266%. The company said that the quarter included revenues from ALPS (acquired in March 2021) and management fees from GT. Australis recorded a net loss of $(9.5) million or $(0.04) per share. The company said the loss was driven primarily by a decrease during the first quarter in the price of Body and Mind (“BaM”) shares held. To date in Q2 FY 2022, BaM has rebounded back to the per-share price as of March 31, 2021.

Ascend

Ascend Wellness Holdings, Inc.  (CSE: AAWH.U) (OTCQX: AAWH) announced that it has closed on a $210 million Senior Secured Term Loan with Seaport Global Securities LLC as lead manager. AWH said that it plans to use the proceeds to (i) repay substantially all of its debt excluding approximately $12 million of outstanding acquisition payments with near zero interest rates, (ii) finance the company’s pending investment in MedMen NY, Inc., and (iii) support its future growth and acquisition initiatives.

Red Light

Psychedelic companies Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) and Creso Pharma Limited (ASX: CPH) (OTCQB: COPHF)  have mutually agreed to terminate the previously announced plan to merge. The two companies had announced in June they would combine, but now cite various impacts from the COVID-19 pandemic, including significant travel restrictions, where they decided that the merger would no longer be in the best interests of their respective shareholders.

In Other News

Hexo

HEXO Corp (TSX: HEXO; NASDAQ: HEXO) completed the acquisition of all of the outstanding shares of the entities that carry on the business of Redecan, Canada’s largest privately-owned licensed producer. At closing, HEXO paid the selling shareholders of Redecan $400 million in cash and delivered 69.7 million newly issued common shares of HEXO.

Empower

Empower Clinics Inc. (CSE:CBDT)(OTC PINK:EPWCF) reported Total revenues from continuing operations of $861,826 for Q2 2021 compared to Q2 2020 revenues $85,775, representing 1005% year over year growth. Cash at June 30, 2021, was $5,191,944 which increased from the cash of $4,889,824 on December 31, 2020, primarily driven by the proceeds generated on the exercise of share purchase warrants.


StaffAugust 19, 2021
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4min6610

It’s time for your Daily Hit of cannabis financial news for August 19, 2021.

On The Site

TerrAscend

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its financial results for the second quarter period ending June 30, 2021 as revenues increased 72% to $58.7 million over last year’s $32.4 million. Sales grew 10% sequentially over the first-quarter sales of $53.4 million. TerrAscend reported a net loss of $23 million, which the company said was largely impacted by a non-cash loss on the fair value of warrants of $20 million, a non-cash impairment of intangibles of its Arise Bioscience CBD division of $8.6 million, and an unrealized foreign exchange loss of $3 million primarily related to USD cash balances held in Canada.

Trademark

As the cannabis industry matures, companies are demonstrating the will to fight for patents and trademarks. Since the industry was born of one that operated mostly illegally, many companies operated with the idea that “rules are made for breaking.” That idea is being tested as entrepreneurs are losing patience with broken deals and copycat issues. Apparently, imitation is not the highest form of flattery. 

In Other News

Flora Growth Corp. (NASDAQ:FLGC) reported selected financial and operating results for the six-month period ending June 30, 2021. Flora Growth generated revenues of +$2M with a gross profit of 60% (unaudited), as compared to revenues of ~$100K for 2020. The operating expenses for the first half were $6M, yielding a net loss of $4M (unaudited). However, these results were heavily affected by almost $3M of one-time IPO related expenses (unaudited). 

Weedmaps announced today a multi-year agreement with Kevin Durant and Thirty Five Ventures as well as a sponsorship deal with Boardroom. As part of Weedmaps’ mission to power a transparent and inclusive global cannabis economy, this strategic partnership will aim to further deconstruct the negative stereotypes associated with cannabis while elevating the conversation around the plant’s potential for athlete wellness and recovery.


StaffAugust 18, 2021
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4min6000

 It’s time for your Daily Hit of cannabis financial news for August 18, 2021.

On The Site

Eaze

Private cannabis delivery company Eaze is buying multi-state retail operator Green Dragon and will provide service to customers and patients in California, Colorado, Michigan, and Florida. Eaze said in a statement that the combined company will operate 42 delivery and storefront retail locations and serve markets with a combined value of nearly $10 billion. The company did not disclose the valuation of the transaction. Green Dragon is a multi-state operator, with stores spanning major metropolitan areas in Colorado and Florida, cultivation operations in both states, and more than one million transactions in 2020 alone. The company said that Green Dragon’s retail stores in Colorado achieved a 39% growth in 2020. In July, Green Dragon announced the opening of its first two Florida dispensaries and plans to have at least 20 locations secured in Florida by the end of 2021.

Irwin

Irwin Naturals Inc. (CSE: IWIN), formerly Datinvest International Ltd. closed on its previously announced reverse takeover of Datinvest International Ltd. by Irwin Naturals. The company de-listed its common shares from the NEX Board of the TSX Venture Exchange effective at the close of business on August 13, 2021. It began trading its subordinate voting shares on the Canadian Securities Exchange (“CSE”) under the ticker “IWIN” on August 17, 2021.

In Other News

Mydecine

Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) announces it has signed a five-year research agreement with Johns Hopkins University (JHU) School of Medicine, with research to be led by Professor of Psychiatry and Behavioral Sciences at Johns Hopkins University, Dr. Matthew W. Johnson, Ph. D. The Johns Hopkins Behavioral Pharmacology Research Unit has extensive experience conducting clinical research related to the therapeutic use of psychedelics.  Mydecine CEO Josh Bartch said, “We are excited to expand on the current work we are conducting with Dr. Matt Johnson and his team at JHU in regards to smoking cessation to include numerous other projects over the next five years. The researchers at JHU have proven their incredible depth of knowledge in the field.”

Valens

The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) has received authorization to contract or subcontract with a public body from the Autorité des marchés publics (AMP) in Quebec. With this authorization, Valens can now apply to become a registered vendor to supply goods and services in Quebec. This marks a significant step toward entering the third-largest cannabis market in Canada, representing approximately 17% of Canadian cannabis retail sales1 in the country and approximately 22% of the Canadian population.


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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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