Daily Hit Archives - Page 2 of 26 - Green Market Report

StaffStaffJuly 3, 2019
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6min1990

On The Website

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) Co-CEO Bruce Linton said he was stepping down leaving Mark Zekulin as the sole CEO while the company begins a search for a new top executive. The company said it would consider both internal and external options. Rade Kovacevic, who currently heads up all Canadian operations and recreational strategy will assume the role of President. These changes are effective immediately.

The move comes as a surprise as Linton has been the face of Canopy for years. That Linton stated that the board decided suggests it wasn’t his decision. His biography was also immediately removed from the company’s homepage.

Colorado Update

The federal republic nature of the United States of America requires that each state in the nation simultaneously cooperate and compete in all aspects of our society and the marijuana industry is no exception. Each state is perpetually in a free market arms race with the other states to concurrently balance the need to protect the social values of its constitutes and support the free-enterprise competitive edge of its industry. As the marijuana industry matures, we see each state taking turns making marijuana industry chess moves in reaction to the other states’ last move. Some moves are minor En Passant pawn shifting to adjust and improve existing marijuana regulations and other moves are complex opening moves like the Botvinnik Variation of the Semi-Slave Defense (I had to look it up) to catch up to established marijuana regulatory systems.

In Other News

Grown Rogue

Grown Rogue revenue grew to $1.9 million, a 548% increase from revenue of $0.3 million in its second fiscal quarter ended April 30, 2018, and a 125% increase on a consecutive quarterly basis from $0.8 million in Grown Rogue’s first quarter of fiscal 2019. Organic sales growth are driven through the internal sales force, third party distribution, and strengthening of the Grown Rogue brand.

F2019 Q2 Adjusted Gross Margin was $0.4 million, or 20% of revenues, a substantial improvement from Adjusted Gross Margin of ($0.04) million for the same period last year. Adjusted Gross Margin improved as a result of the efforts of the Company over the past year to refine its cultivation processes to be more efficient, resulting in lower cost of sales, while also increasing revenue.

General and administrative expenses were $1.3 million for the second quarter of fiscal 2019, compared to similar expenses of $0.6 million for the second quarter of fiscal 2018. The increase in expenses was primarily related to the expanded scope of operations and associated sales, general and administrative support. Grown Rogue’s Adjusted EBITDA3 amounted to ($1.0) million for the three months ended April 30 2019, compared to ($0.6) million for the three months ended April 30, 2018. The increased loss was primarily attributable to infrastructure investments required to support the company’s growth plans.

Kona Gold

Kona Gold Solutions, Inc. (OTC Pink: KGKG), a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, is pleased to announce it has beat Second Quarter protected revenue of $400,000 by over $320,000. Kona Gold had its first ever profitable quarter on revenue of over $720,000 from sales of its popular Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters. The Company will surpass $1 million in revenue for 2019 this month.

Slang

SLANG Worldwide Inc. (CNSX: SLNG) announced the outcome of the accelerated expiry of its warrants issued on July 23, 2018, and originally expiring on July 21, 2020. Since the announcement of the accelerated expiry of the Warrants on May 24, 2019, 8,841,319 Warrants were exercised prior to the accelerated expiration date of June 28, 2019 and the Company received aggregate proceeds of approximately C$10.2 million in connection therewith.  Overall, nearly 13.2 million Warrants were exercised, representing 98% of the total Warrants originally issued. As a result, the Company now has common shares outstanding of 225,557,884.  260,608 warrants expired unexercised.


StaffStaffJuly 2, 2019
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6min2730

It’s time for your Daily Hit of cannabis financial news for July 2, 2019.

On The Website

1933

Vertically integrated consumer cannabis company 1933 Industries Inc.  (CSE: TGIF) (OTCQX: TGIFF) delivered its third quarter results for the three months ended April 30, 2019, in Canadian dollars. Revenues of $4.6 million increased 40% over last year’s $3.7 million for the same time period.  The rise was a 28% increase sequentially.

The net loss rose to $7.2 million versus last year’s net loss of $2.9 million. The company attributed the increase in losses to the investment in the company’s consulting arm, Spire Global Strategy. 1933 said that it acquired Spire on the basis of an independent valuation, a strong team, and a solid business plan to provide services to the burgeoning cannabis sector in Canada. The company added that the expected revenue and future market development of Spire were not realized. 1933 said that its strategy has since shifted to consolidate its focus on the nation-wide growth of its consumer branded goods and supporting cultivation and extraction assets, where the value proposition of these sectors to the business provides a better return on investment.

Global Moves

International expansion is the words of the day as several companies announced plans to reach beyond the borders of Canada and the U.S. It seems Colombia is where all the action is.

MJ Freeway

MJ Freeway, a subsidiary of Akerna Corp. (NASDAQ: KERN)  said it is expanding further into Europe by serving clients in two additional countries, Italy and Macedonia. The company also recently opened a Medellín, Colombia office to serve its growing footprint in South America. MJ Freeway client, Clever Leaves, is the first Colombian company authorized to export cannabis into Canada.

MYM Nutraceuticals Inc.

MYM Nutraceuticals Inc.(CSE: MYM) (OTCBB: MYMMF) announced that its subsidiary in Colombia, Colombia Organica S.A.S signed agreements in principle to cultivate both THC and CBD-rich cannabis with independent farmers for an initial five acres. The company said in a statement that cannabis will be cultivated by farmers who will be licensees under the existing Colombia Organica cannabis cultivation licenses. The first crops cultivated on the initial five acres will function as test crops with the intention to add subsequent acreage.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) said it received multiple Export Permits from Health Canada, which allow the Company to begin its first international cannabis product shipment. Aleafia said it expects to ship its branded medical cannabis oils in the next month, which will be distributed by Australian Licensed Producer CannaPacific Pty. Limited. Aleafia Health owns a 10 % equity stake in CannaPacific.

FSD Pharma

R&D pharmaceutical company FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) finalized its acquisition  of Prismic in a deal valued at approximately $17.5 million or C$23.4 million. The company said that the deal will be satisfied by the issuance of approximately 102.7 million Class B subordinate voting shares in the capital of FSD Pharma at a deemed price of CAD$0.2275 (US$0.1704) per FSD Share.

In addition, FSD Pharma said it has agreed to assume approximately $3.05 million of outstanding Prismic long- and short-term liabilities. All of the outstanding Prismic stock options and warrants have been converted into options and warrants to purchase FSD shares, with the number and exercise price of such securities having been adjusted in accordance with the exchange ratio under the agreement.

In Other News

IONIC BRANDS CORP. (CSE: IONC) (OTC: IONKF) has signed an exclusive Heads of Agreement with Lifespot Health Limited (ASX: LSH) to develop and distribute Lifespot’s software and vaporizer technologies.

Lifespot, via its subsidiaries, Seng Vital and Bodytel GmbH, will provide its Bluetooth-enabled vaporizers, which can be used for recreational cannabis consumption, and the Bluetooth Bodytel™ platform, which collects and manages consumer data in a compliant record keeping system that is beneficial to consumers and meets privacy regulations.  IONIC BRANDS and Lifespot, (collectively, the “Parties”) anticipate that a binding Joint Venture Agreement and Distribution Agreement will be completed within 60 days to formally implement the Joint Venture. The Joint Venture provides 12 months exclusive distribution of Lifespot vaporizers to Ionic in the United States and Canada and to the Ionic-owned brand, Astleys of London, in the United Kingdom.  The Company may be granted additional territories over time as needed to meet market demand.


Debra BorchardtDebra BorchardtJuly 1, 2019
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4min1660

It’s time for your Daily Hit of cannabis financial news for July 1, 2019.

On The Website

Cannabis consumers love a good holiday and July brings two in quick succession. First, of course, is the Fourth of July. Cannabis software company Akerna Corp. (NASDAQ: KERN) said that it expects Americans will spend more on cannabis this Fourth of July than chicken for their BBQs.

According to Akerna, Fourth of July-week (June 28 – July 4) cannabis sales are expected to increase by 80% compared with an average week, ringing in approximately $450 million in total sales nationally. If this keeps up, Akerna said that by 2020 Americans could end up spending more money on cannabis than they would spend on wine for the Fourth of July.

While sales are expected to begin on the weekend before the holiday, increased sales are expected to continue throughout the week. Since the Fourth falls on a Thursday this year, Wednesday’s sales are forecast to be the busiest of the year.

In Other News

Relevium Tech

Relevium Technologies Inc. (TSX.V: RLV)(OTCQB: RLLVF) announced that it has been made aware of and requested by the OTC Markets Group, Inc. to comment on recent promotional activity concerning its common shares traded on the OTCQB market.

On June 27th, 2019, the OTC Markets Group sent the company copies of three newsletters sent on June 25 and June 26, 2019 by SmallCapFirm, a third-party marketing and awareness firm utilized by StockWireNews, LLC, which in turn was utilized by one of the company’s marketing firms, Shore Thing Media, LLC. The company was not aware of the newsletters until the OTC Markets Group sent the copies on June 27th, 2019.

After inquiry of management, except with respect to the engagement of Shore Thing as further described below, none of the company’s officers were involved, directly or indirectly, with the creation or distribution of promotional materials nor were we asked to provide, nor did provide any editorial content.

GenTech

GenTech Holdings, Inc. (OTCMKTS: GTEH) announced approaching core supplier deals and an expanded product offering as it prepares for a full launch of CBD product sales through both its e-commerce and CBD-infusion café models under the “Healthy Leaf” brand designation.

“With both CBD white label and infusion suppliers now in advanced negotiations, we are finalizing supportive product suppliers and we are happy to provide some details for shareholders,” commented GenTech CEO, David Lovatt. “Most importantly, the process has been highly successful in terms of our top priority at this stage: to gear our approach from the ground up to target the high-end CBD niche. That mission puts a premium on strong deals for truly best-of-breed accompanying products on our site and in our Healthy Leaf Cafés.”

Arte de Brasil has been selected as a key supplier already. They offer a range of super-premium coffee and tea blends, with an emphasis on a premium mild coffee variety. Management notes that the company will be bringing its coffee in bulk to its US-based CBD-infusion center for final quality testing to ensure a premium grade CBD-infused final product.

 


William SumnerWilliam SumnerJune 27, 2019
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4min1360

It’s time for your Daily Hit of cannabis financial news for June 27, 2019.

On the Site

Green Growth Brands

After a trial period of selling the Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) CBD line called Seventh Sense Botanical Therapy products, Abercrombie & Fitch (A&F) has decided to carry the products in 160 stores. The expansion includes Seventh Sense’s CBD-infused body lotions, muscle balms, lip balms, and sugar scrubs, and is Green Growth Brands’ second major wholesale agreement since the passage of the Agriculture Act of 2018 in December 2018.

Executive Spotlight: Dr. Jared Helfant, Co-Founder and President of Sparx Cannabis

At Sparx, Dr. Helfant applies his expertise to oversee operations, branding, and marketing. With a proven track record of providing top-tier, customer-facing services and long-term strategic planning, his knowledge helps facilitate budget analysis, marketing strategies, and partner relationships.

In Other News

Surterra Wellness

The medical cannabis company Surterra Wellness announced that it had closed a $100 million Series D funding round. So far, the company has raised over $300 million in private capital. Proceeds from the funding will go towards expansion initiatives such as strategic acquisitions and infrastructure capital expenditures. Surterra also announced that it had expanded its board of directors to include Ed Brown, Surterra’s Executive Director, and its Executive of Operations, Kevin Fisher.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced today that it had acquired both Glendale Greenhouse and Phytotherapeutics Management Services, LLC. Glendale Greenhouse is a vertically integrated cannabis business operating a cultivation and processing facility with a 20,000 square foot production facility capable of producing 3,600 pounds of flower annually. Glendale also owns a 1,500 square-foot dispensary and the master lease on the 15,000 square-foot multi-tenant building where the dispensary is located. Phytotherapeutics Management Services, LLC operates under the license of Phytotherapeutics of Tucson, LLC. Once the transaction is closed, the Phytotherapeutics’ license would be transferred to Curaleaf and apply to a newly developed, flagship dispensary.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA:ARAH) has closed a $40.25 million over-subscribed public offering. Leading the offering was Mackie Research Capital Corporation and BMO Capital Markets, and included Canaccord Genuity Corp. “We are excited to close this financing and strengthen our balance sheet as we solidify and accelerate the expansion of our cannabis health and wellness ecosystem, in Canada, and globally,” said Aleafia Health CEO, Geoffrey Benic. “This is a key step enabling management to execute on its business plan and to drive operational results creating value for shareholders.”


William SumnerWilliam SumnerJune 26, 2019
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4min1410

It’s time for your Daily Hit of cannabis financial news for June 26, 2019.

On the Site

Canopy Growth

Canopy Growth Corporation (TSX: WEED, NYSE: CGC)  has acquired Saskatoon-based bio-product extractor KeyLeaf Life Sciences. Canopy Growth said it has been working closely with KeyLeaf – formerly known as POS Bio-Sciences – as a trusted partner building out extraction processes and technology for the past year as it refines its scale extraction model for Canadian and global markets.

Executive Spotlight: Corey Mangold, Co-Founder & CEO of Orchid Essentials

No stranger to entrepreneurship, Corey Mangold started his first company at the young age of 18. Even in his teens, he understood the great risk, and potential reward of going into business for yourself and accepted that challenge head-on.

In Other News

GrowGeneration Corp.

GrowGeneration Corp. (OTCQX: GRWG) announced that it had raised $12.8 million in an upsized private placement offering, issuing 4,123,254 shares at a price of $3.10 and 2,061,632 warrants exercisable at $3.50 per share. All the company’s strategic institutional investors participated in the offering. “With the completion of our oversubscribed offering, the Company now has over $16 million of cash on the balance sheet to execute on multiple acquisitions, with several planned to close in the 3rd and 4th quarters of 2019,” said Darren Lampert, Co-Founder and CEO of GrowGen.

Fire & Flower Holdings Corp.

Fire & Flower Holdings Corp. (TSXV: FAF) announced the closing of a private placement offering. Selling 27,188 convertible debenture units at a price of $1,000 per unit, the company raised $27.18 million. The company also announced its financial results for the three-month period ending on May 4, 2019. Recognized revenue was $9.5 million, with a gross margin of 38.5%. The net loss for the period was $17.1 million. “These results provide a solid foundation upon which Fire & Flower will continue to execute on our growth strategy. Our growth plan is well funded and in addition to the strength of our retail network, we have set ourselves apart as a modern retail company through the Hifyre digital cannabis platform that is reflective in our financial performance” commented Fire & Flower CEO Trevor Fencott.


StaffStaffJune 26, 2019
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6min1730

 

It’s the Daily Hit for June 25, 3019.

On The Site

The Flowr Corporation (TSX.V: FLWR)(OTC: FLWPF) announced today that it has commenced an underwritten public offering of common shares for approximately C$125,000,000. As part of the offering, the company is offering an overallotment to purchase an additional 15% of the number of common shares at the offering price for 30 days following closing.
Flowr said that it intends to use the net proceeds to fund part of its acquisition of the approximately 80% equity interest of Holigen Holdings Limited that it does not already own, working capital required for the construction and development of Holigen’s and the company’s cultivation and production facilities.

In Other News

Driven Deliveries, Inc., (DRVD) completed the acquisition of Ganjarunner, Inc., a cannabis delivery company that provides high-quality lab-tested, pesticide-free medicinal and recreational products throughout California.

In addition to growing Ganjarunner’s customer base, the acquisition of Ganjarunner will allow for Driven to leverage its brand-to-consumer model across virtually the entire state of California. The subsidiary will provide Driven with multiple fulfillment centers, an additional delivery license in California, and a unique technology platform that will allow for improved efficiency. Ganjarunner has shown continuous revenue growth since its inception. During the previous 12 months, the Ganjarunner, Inc. successfully completed 18,854 deliveries to more than 7,748 customers and has experienced year over year revenue growth of 49.3%. As a subsidiary of Driven, Ganjarunner is projected to reach $4.1 million in revenue by the end of 2019.

Nabis Holdings Inc. (CSE:NAB) (OTC: NABIF) completed the purchase of 2,260,500 common shares, representing a 49% interest, of Cannova Medical Ltd., a provider of innovative solutions for cannabis consumption, with the option to acquire the remaining 51% interest.

Surterra Wellness announced the acquisition of Molecular Infusions (Mi), a Boston-based biotechnology research and development company that leverages innovative product delivery systems to improve the results of cannabis therapies.  The acquisition expands Surterra’s research and development capabilities and establishes its first international footprint.

 

The Supreme Cannabis Company, Inc.  (TSX: FIRE) (OTCQX: SPRWF) in partnership with Khalifa Kush Enterprises Canada ULC (KKE), launched KKE Oil, the first product under the KKE brand line. KKE Oil is a premium, recreational focused oil, developed for the consumer who wants the convenience, high THC potency and precise dosing offered by a cannabis oil. KKE Oils are one of the first ever recreational-focused cannabis oils available to consumers in Canada. Wiz Khalifa and the KKE team specifically selected the Supreme Cannabis’ wholly-owned subsidiary, 7ACRES Sensi Star strain for the debut of the line.

“I’m excited to bring our first products to Canada and launch KKE Oils. They are an awesome, high-in-THC product that everyone will love,” said Wiz Khalifa, principal of KKE. “This is a legendary moment that will be followed by many more game changing releases KKE will launch with Supreme Cannabis over the next year.


StaffStaffJune 24, 2019
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4min2890

It’s time for your Daily Hit of cannabis financial news for June 24, 2019.

On The Site

BioTrackTHC

BioTrackTHC has been awarded a contract by the New Hampshire Department of Health and Human Services  to provide its Therapeutic Cannabis Program Patient Registry System to electronically process and track patient and caregiver card applications. BioTrack is a subsidiary of Helix TCS, Inc. (OTCQB: HLIX)

According to the statement. BioTrack has a separate contract with all of the New Hampshire Alternative Treatment Centers, referred to as “dispensaries” in most states, for seed to sale inventory tracking. The contract’s life is through December 31, 2021 and is valued at $400,000. With the addition of this contract, BioTrackTHC provides government cannabis regulatory technology to 10 U.S. states and territories and was recently awarded seed to sale traceability contract extensions in Illinois, Hawaii, and Delaware.

Executive Spotlight

Morgan Paxhia is a co-founder and Managing Partner of Poseidon, one of the longest running funds in the cannabis industry.

With over ten years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. Since 2012, he has dedicated his investment focus primarily to the cannabis industry. Given the limited amount of information in this emerging vertical, the lack of institutional research, and relative industry immaturity, Morgan embraces an active approach of working closely with companies. He utilizes a “boots on the ground” methodology to better understand individual companies and the industry.

In Other News

Flowr

The Flowr Corporation (TSX.V: FLWR)(OTC: FLWPF) announced that it has entered into a definitive agreement to acquire the remaining 80.2% interest in Holigen Holdings Limited by way of a share purchase. Flowr previously announced its intention to acquire 19.8% of Holigen. Upon the Closing of the Acquisition, Flowr expects to own 100% of the issued and outstanding shares of Holigen. The Acquisition has been approved by the board of directors of each of Flowr and Holigen and is strongly supported by both management teams.

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) received a new license from Health Canada permitting it to grow cannabis at an outdoor site in northern Saskatchewan. Hours after receiving the license, the first cannabis cuttings were planted at a 7 million sq. ft. (160 acres) secure cultivation field in the province, one that is patrolled by drones (kidding – no drones, promise.) The new license expands Canopy Growth’s diversified Canadian footprint and complements its existing indoor and greenhouse facilities to provide a leading balance of facilities to produce low-cost input materials for value-add products while ensuring more sophisticated growing operations for in-demand flower products.


William SumnerWilliam SumnerJune 19, 2019
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5min2540

It’s time for your Daily Hit of cannabis financial news for June 19, 2019.

On the Site

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc.  (TSX:CWEB)(OTCQX:CWBHF) reported its final hemp planting for its 2019 growing season. The company said that in order to meet growing demand the total acres planted for 2019 has been increased to 862, an 187% increase from 300 acres planted in 2018.

CannTrust Holdings

CannTrust Holdings Inc. (NYSE: CTST) shares popped over 5% in early trading on news that the company had formed a joint venture with California hemp grower Elk Grove Farming Company. CannTrust is a Canadian cannabis company founded by pharmacists and this would be the company’s entry into the United States. The company said it expects to invest roughly $20 million in the operation by the end of 2020. The shares were lately trading at $5.22.

Executive Spotlight: Kraig Fox, President & CEO of High Times Holdings

A veteran media and entertainment executive, Kraig Fox oversees High Time’s day-to-day operations, which now include Dope Magazine, Culture Magazine, Green Rush Daily, and a number of events, including the Cannabis Cup Festivals.

Not Even Close To OK !!! California, Cannabis & IBI (Inherent Bureaucratic Ineptitude)

The Times article describes yet another band-aid the Legislature is slapping on California’s maladroit roll-out of cannabis regulation. This particular band-aid is an emergency extension of time through a budget Trailer Bill. The Bill, which is opposed by environmental groups, extends provisional licensing.

In Other News

Canopy Rivers

Canopy Rivers Inc. (TSXV: RIV) (OTC: CNPOF) announced that has made a $10 million investment and has entered into a strategic collaboration with ZeaKal Inc. ZeaKal is a California-based company with with proprietary technologies that reportedly increase photosynthesis, improve plant yield and enhance nutritional profiles for a variety of crops. “Our investment in ZeaKal, the fifth consecutive international transaction for Canopy Rivers, builds on our thesis of selecting globally scalable and innovative processes, products, and technologies from complementary industries, and applying them to the cannabis and hemp economy,” said Mary Dimou, Director of Business Development at Canopy Rivers.

Green Flower Media

Green Flower Media today announced that it has closed a $20 million Series A financing round. The financing round was led by Tuatara Capital and additional funding came from Poseidon Asset Management and Phyto Partners. The proceeds from the round will go towards developing new certificate programs, creating new content for its subscription service, expanding the company’s team, and forming strategic partnerships.

Innovative Industrial Properties

Innovative Industrial Properties, Inc. announced that it entered into an amendment of the lease with Green Peak Industries, LLC, largest vertically integrated medical-use cannabis license holder in Michigan. The amendment will make available an additional $18 million for Green Peak to expand its cultivation and processing facilities at 10070 Harvest Park in Dimondale, Michigan. “We are thrilled to expand our real estate partnership with one of the premier medical-use cannabis operators in the state of Michigan, another example of our position as a long-term real estate capital partner that our tenant operators can count on,” said Paul Smithers, President and CEO of IIP.


William SumnerWilliam SumnerJune 18, 2019
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7min2620

It’s time for your Daily Hit of cannabis financial news for June 18, 2019.

On the Site

Luxury Cannabis is Not Going Away Anytime Soon

The world of cannabis is becoming more refined. When California first legalized medical cannabis in 1996, the only way one could purchase cannabis legally was through darkly-lit dispensaries with bars on the windows that were squirreled away in industrial parks. More than two decades later, the cannabis industry has evolved to a point where its consumers are more sophisticated and discerning, giving rise to a new sub-market within the industry: Luxury Cannabis.

MediPharm Labs

MediPharm Labs Corp. (LABS.V) (MEDIF) (MLZ.F) has applied to list its common shares on the Toronto Stock Exchange (TSX). MediPharm Labs continues to trade on the TSX Venture Exchange under the symbol “LABS”. This follows the company’s announcement that it had closed its previously announced bought deal offering of 13,514,000 common shares in the capital of the company at a price of $5.55 per common share for aggregate gross proceeds of C$75 million.

Surterra Wellness

Biotech company Intrexon Corporation (NASDAQ: XON) and cannabis company Surterra Wellness (Surterra) announced an exclusive global licensing agreement.  The two companies will join forces to help Surterra’s cannabinoid production by using Intrexon’s proprietary yeast fermentation platform. According to the company statement, yeast fermentation of cannabinoids provides advantages over conventional plant-based extraction.

Flowr Corp.

The Flowr Corporation (TSXV: FLWR)(OTC: FLWPF)  has received a loan commitment from a syndicate of lenders led by ATB Financial in its capacity as lead arranger and administrative agent for up to $50,000,000 of committed senior secured credit facilities.

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

Ben Kovler brings his extensive experience managing complex operating companies and his deep commitment to philanthropy as Founder, CEO and Chairman of Green Thumb Industries.

In Other News

California Cannabis Enterprises

California Cannabis Enterprises (CCE) announced that it has appointed Daryl Kato as its Chief Operating Officer. Kato is the former chief financial officer (CFO) and board director at Nissin Foods USA and finance manager for confections and snacks at Nestle USA. “With an aggressive plan for continued growth and a commitment to expand our family of companies and world-class brands, attracting top talent like Daryl will give us a competitive advantage as the cannabis marketplace expands and matures,” said CCE CEO Kyle Kazan.

CAVU Resources

CAVU Resources, Inc. (OTCMKTS: CAVR) announced that it has applied to trade under a new symbol, “KUSH.” The change was requested because the company wants its symbol to reflect the new cannabis-focused direction the company is taking. CAVU is also seeking a regional accounting firm to provide audit services for 2017, 2018 and the current year to date 2019 so that it can start the procedure of up-listing to OTCQB.

Delta 9 Cannabis

Delta 9 Cannabis Inc. (TSXV: NINE) (OTCQX: VRNDF) announced that its previously announced offering will be for an offering size of a minimum of $10,000,000 and up to $14,000,000. Priced as $1,000 per unit, the company will issue between 10,000 and 14,000 convertible debenture units. The offering is being co-led by Mackie Research Capital Corporation, as sole bookrunner, and Canaccord Genuity Corp. as co-lead agents.

Jushi Holdings

Jushi Holdings Inc. (NEO: JUSH.B) has entered into an agreement to acquire an unnamed Phase I Medical Marijuana Dispensary Permit holder and three provisional Phase II Medical Marijuana Dispensary Permit holders for an aggregate of approximately $63 million. Of the $63 million, $27.11 million will be paid in cash, $27.5 million will be paid through the issuance of certain 10% secured notes, and the remaining balance will be paid through the issuance of approximately 3.38 million shares to the sellers of the purchased companies.


StaffStaffJune 17, 2019
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8min2940

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.”



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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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