Daily Hit Archives - Page 2 of 35 - Green Market Report

Kaitlin DomangueKaitlin DomangueDecember 19, 2019
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7min4580

Its time for your Daily Hit of cannabis financial news for December 19th, 2019. 

On the Site

CuraLeaf Says 2019 Was Great, 2020 Will Be Even Better

Debra Borchardt at Green Market Report sat down with Curaleaf’s CEO Joe Lusardi at MJBizCon in Las Vegas last week. There were talks of Curaleafs acquisition with Select, a premium cannabis product company known for their vapes, the cannabis market in Illinois and other states, and Curaleaf’s 2020 hopes. Lusardi says that he “thinks it’s also important to know that the Select brand is not just the vape brand, it’s a family of products.”, and we will be seeing gummies, tinctures, sprays, and more from Select. He says that Illinois is the next big market, and he knows by looking at the state’s numbers. The CEO touched on Massachusett’s market not living up to 2019 expectations, but thinks 2020 will be a good year for the state. Curaleaf just opened their first adult-use store in the state in November. Lusardi says 2020 will be a fantastic year for Curaleaf. “We’re opening stores, we’re executing on our business. We’re turning all of the investment we’ve made into cash-generating assets. So this is the best year in our company history. I mean, it was really a great year, operationally. 2020 sets up to be even better.”

Grateful Dead’s Mickey Hart Launches Hash-infused Pre-roll

Grateful Dead drummer Mickey Hart is expanding his cannabis brand Mind Your Head with the launch of Space Ticket, a 1-gram hash-infused pre-roll. Space Ticket is inspired by the transformation and enlightenment that fans experience at live shows. Mind Your Head Space Ticket is a potent 1-gram hemp leaf wrapped pre-roll featuring Indica-leaning strains Trinity Star and D.O.G. Chem and is infused with an aromatic, artisanal ice-water hash. Mind Your Head was launched earlier this year with its first product offering of Magic Minis, pre-rolled whole-flower joints packaged in a tin adorned with Hart’s celebrated artwork. The brand was founded on the belief that cannabis grown with care can transport minds by inspiring creativity and mindfulness. Mind Your Head operates using sustainable, just and innovative practices.

Trulieve Finds Itself in the Crosshairs

Trulieve Cannabis Corp. (OTC: TCNNF) was being touted as the most promising of cannabis stocks. Its earnings reports put competitors to shame as the company delivered impressive net incomes and others instead struggled with net losses. This week a short-seller report has accused the company of being a fraud and that comes a week after the company faced fire over unwanted texts. The stock tumbled on the news of the Grizzly Report but began to recover as others stepped up to defend the company. The stock fell from a close of $11.91 on Monday to $10.40 on Tuesday but was lately trading at $10.84. The report called out the company for a variety of bad behaviors and questioned the earnings. The summary of the allegations are as follows; Low-quality cultivation facilities that could lead to poor products, accusations that the CEO Kim River’s husband JT Burnette is involved in an FBI probe, accusations that Burnette is Trulieve’s main construction partner, alleges that Trulieve is not being truthful about its lenders and takes out small loans from insiders even as it suggests it has plenty of cash, alleges that Trulieve is marking up the product to portray profitability.

In Other News

Online Cannabis Marketplace Dutchie Secures $15 Million Series A Round

Dutchie, the leading e-commerce platform for cannabis pickup and delivery, closed a $15 million Series A round. The powerhouse team of investors included Led by Gron Ventures, Snoop Dogg’s Casa Verde Capital, Kevin Durant’s and Rich Kleiman’s Thirty Five Ventures, Sinai Ventures, Shutterstock founder and CEO Jon Oringer, DoorDash founders and early executives. Dutchie is an online platform that allows customers to order cannabis products from dispensaries for pickup or delivery. Ross Lipson, CEO and co-founder of Dutchie says “We’re thrilled to have such a great group of investors to help guide us through this next phase of the business. Scaling a company has its share of challenges, especially in an emerging new industry; however, having seasoned investors in our corner who can lend their experience and expertise will help us take Dutchie to the next level.” The company is in a period of extreme growth,  facilitating over $140 million in Annualized GMV with over 450 dispensaries across 18 states now using the platform. This latest round of funding brings the total investment to $18 million. 

 


Kaitlin DomangueKaitlin DomangueDecember 18, 2019
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12min2720

Its time for your Daily Hit of cannabis financial news for December 18th, 2019.

On the Site

Elixinol Continues To Navigate CBD Labeling Rules

Green Market Report sat down at the 2019 MJBiz Conference with Leif Harrison, the CEO of Elixinol. Debra and Leif discussed the frustrating issues surrounding hemp regulations in the United States. Elixinol figured there would have been more concrete movement at the end of 2019 then there has been in terms of labeling products. Elixinol’s CEO said it can all be boiled down to one question, “Is CBD a dietary supplement or isn’t it?” Debra at Green Market Report mentioned to Leif that companies have been getting warning letters because of the terms that have been used for marketing, and how it seems that it is getting harder and harder to simply describe the products. Leif says, it absolutely is and it is a constant battle to say the right thing, especially when the right thing is changing all of the time. Leif also talked with Debra about Elixinol’s recent rebranding, as well as adding organic products to their already highly-rated product portfolio. Elixinol’s CEO also touched on pulling out of Japan’s market.

Executive Spotlight: Oregrown’s Aviv Hadar

Green Market Report talked to Aviv Hadar, the CEO and co-founder of Oregrown Industries, Inc. He has been in this role for six years and transitioned to cannabis from the tech sector. Before Oregrown, he was attending school at the University of Montana for computer science. He stopped school to found a software company that recently celebrated its 10th year in existence.

Oregrown is a farm-to-table cannabis company based in Oregon. They use organic methods to produce high-quality products. Oregrown is the first, exclusive Oregon producer for PAX Era. The company also crafts several of the state’s premier dispensary products including their own lines of Oregrown flower, extracts, and concentrates. Oregrown’s flagship dispensary located in downtown Bend, Oregon has won several awards including Best Budtender (2019), Best Place to Work (2017), Bend’s Best Place to Visit for First Dispensary Experience (2016), and Bend’s Best Dispensary five years in a row (2015-2019). They consider their best achievements to be winning Best Dispensary for five years in a row in downtown Bend, being voted the best place to work for two years in a row, and voted startup of the year by Bend Chamber of Commerce. The company has raised capital and plans to do so as well in the future. The company’s most important five-year goal? Aviv Hadar says it simply, “growth and profitability. If the perfect M&A transaction emerges, to take the ride.”

GrowGeneration Buys Oregon’s GrowWorld

GrowGeneration Corp. (NASDAQ: GRWG) has purchased the assets of Portland, Oregon-based GrowWorld for an undisclosed amount. GrowWorld was founded in 2011 and is the largest retail and warehouse garden space by square footage in the state. In addition to that, it has the highest sales volume of a hydroponic store in Portland and the highest revenue in the state.

A GrowGen statement said that “The GrowWorld acquisition is our 8th in 2019, adding an accretive $5.0 Million in revenue to our Company.  GrowWorld is one of the largest hydroponic stores in Oregon and strengthens our position in the Pacific Northwest region, that currently includes our Seattle location. With over 700 commercial cultivation licenses and a strong medical caregiver program, we feel we can capture a large market share of the Oregon hydroponic supply market.”

Leafly Expands Into E-Commerce, Data

Green Market Report sat down with Dave Cotter at Leafly during the recent MJBiz Conference in Las Vegas. Dave talked with Debra about their recent launch of Leafly Market, an e-commerce platform for purchasing the largest selection of CBD products. It has been said that Leafly’s e-commerce expansion was an organic one, because of the education Leafly already provides on different strains and dispensaries. Dave says that the company was “responding to where [their] customers are pulling [them], which is now that I understand or now that I’m educated, I now want to buy something. And so we’re creating a platform that allows them to do so.” The company also recently announced its partnership with the American Marijuana Medical Physician’s Association and their plans to work on a joint curriculum for different doctors.

The Rise of Do-It-Yourself CBD

DIY CBD is thriving. Recipes for products ranging from gummies to facial scrubs and beard wax to candles and personal lubricant jostle for space online. A small 30ml bottle of CBD oil can cost up to $300 depending on the quality and strength per dose, so many are turning to crafting their own products at home. The process in most cases is not overly onerous, although the hemp flower buds must be “decarboxylated” before use, which is an intimidating term that simply refers to the process of putting the hemp buds under low heat (between 225-245 degrees Fahrenheit) for about an hour in order to activate their chemical and pharmacological effects. Afterward, the hemp buds are ready to be used for teas, cocktails, baking, infused into oil, etc. It sounds pretty straightforward, but there is still room for frustrating and costly user error to occur. If a recent study cited by Iris Dorbian in Forbes Magazine is accurate and the CBD market could indeed surpass $20 billion dollars by 2024, there is plenty of room for DIYers and entrepreneurs alike to work for CBD, and make CBD work for them.

In Other News

Akerna to Acquire Canadian Cannabis Software Provider Ample Organics

Akerna, developer of the industry’s first seed to sale enterprise resource planning software technology (MJ Platform), has entered into a definitive agreement with Ample Organics Inc. to acquire all of the issued and outstanding shares of the company. The cash and stock transaction was valued at up to $45 million USD. The possibility of Akerna paying an additional $7.6 million in the form of stock-based deferred consideration may be paid to Ample Organics shareholders, pending specific certain revenue targets are reached by Ample Organics in the 2020 calendar year. Ample Organic’s projected 2020 calendar-year revenue is $8.7 million, reaching projected-cash flow positive in the second quarter. The acquisition multiple on 2020 revenue is 5.2x, assuming the deferred consideration is achieved in full. The purchase is expected to close by the end of Q1 2020.

Green Growth Brands Terminates Its Bid for Moxie

Green Growth Brands announced the termination of its proposed business combination with Moxie, amid the market’s adjustment to the changing macro environment. CEO of Green Growth Brands, Peter Horvath, says, “We are aggressively growing our businesses across America as we drive to become a leading cannabis retailer in the country. While we continue to be open to collaborating with other industry leaders, we need to ensure we are focused on building our operational strengths, maximize our returns and, most importantly, avoiding excessive dilution to our shareholder base.” The company will continue with its powerful growth in multi-state operations and CBD businesses. The MSO business includes a 47 dispensary rollout in three key states.

 

 

 


Kaitlin DomangueKaitlin DomangueDecember 17, 2019
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4min2020

Its time for your Daily Hit of cannabis financial news for December 17th, 2019. 

On the Site

Fire & Flower Revenue Grows As Company Reports Net Income For The Third Quarter

Fire & Flower Holdings Corp.  (TSX: FAF) announced that its third-quarter 2019 revenue increased 443% to $13.7 million for the quarter ending November 2 over last year’s $2.5 million for the same time period. It was also higher sequentially over the 2019 second-quarter total revenue of $11.1 million. The company also delivered a net income of $10.2 million over last year’s net loss of $22.5 million for the same time period. It was just a note, but one of the most important items in the company’s announcement was that it closed the strategic investment with Alimentation Couche-Tard Inc. The company said that the strategic investment would result in Couche-Tard obtaining a controlling interest in Fire & Flower if all securities issued in connection with the strategic investment are converted/exercised in full.

New Jersey Kicks Full Legalization To The Voters In 2020

On Monday, lawmakers in New Jersey’s Senate and Assembly approved a resolution for full legalization in November 2020. The politicians came close in 2019 to writing legislation that would legalize adult-use cannabis, but ultimately failed and were unable to pass any laws. By punting, the voters will now decide whether to legalize cannabis for adults’ use in November 2020. Steve Hawkins, executive director at the Marijuana Policy Project said, “Legalizing, taxing, and regulating marijuana is the cannabis policy New Jersey deserves. It is unacceptable to accept the status quo of prohibition that continues to negatively impact countless lives and communities. I am hopeful that New Jerseyans will vote in favor of adult-use legalization in 2020.”

In Other News

Tilray Announces New Cannabis Products

High Park Holdings Ltd., a wholly-owned subsidiary of Tilray, Inc. introduced its phase two adult-use cannabis products today. The products will launch across Canada in 2020. The line includes edibles and confectionary, beverages, and vape products. High Park is based in Toronto and all of their products are in line with Health Canada’s standards for safety and quality. 

Cansortium Inc. Announces Definitive Plan to Sell Non-Core Operations

Canasortium Inc. announced the signing of separate definitive agreements to sell their non-core operations in Canada and Puerto Rico. The terms of the sales were not disclosed. Canastortium Inc. is based in Florida and operates under the Fluent brand. The company is committed to being the highest quality cannabis company in Florida, focusing on excellence from seed to sale. 

Health Canada Recalls Zenabis CBD Gel Capsules Containing THC

Zenabis released incorrectly labeled cannabis gel capsules under their Namaste brand and they are being recalled by Health Canada. The label indicates the product is “CBD Light gelcaps” but the product contains THC. The label is said to show each pill contains 0.19 mg of THC and 6.13 mg of CBD. Health Canada said the actual values are 2.247 mg of THC and 0 mg of CBD. 

 


Kaitlin DomangueKaitlin DomangueDecember 16, 2019
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5min1680

Its time for your Daily Hit of cannabis financial news for December 16th, 2019.

On the Site

Valens GroWork Says Revenue Almost Doubles From Last Quarter

Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF)  gave revenue guidance for the fourth quarter of 2019 in the range of $27 million to $30 million. This is a big jump sequentially for the company as it delivered revenue of $16.5 million in the third quarter of 2019. Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF)  gave revenue guidance for the fourth quarter of 2019 in the range of $27 million to $30 million. This is a big jump sequentially for the company as it delivered revenue of $16.5 million in the third quarter of 2019. In addition to giving a heads up on the increasing revenue, Valens said it is planning to launch a Normal Course Issue Bid or NCIB for the purchase and cancellation of up to 6,275,204 shares, representing approximately 5.0% of the issued and outstanding Shares, calculated on a non-diluted basis. 

HEXO Reports Decline In Revenue, Rising Expenses

HEXO Corp. (TSX: HEXO)(NYSE: HEXO)  reported its financial results for the first quarter fiscal 2020 ended October 31, 2019, in Canadian dollars. The company reported that the net revenue in the first quarter decreased sequentially to $14.5 million versus $15.4 million in the fourth quarter of 2019. The revenue increased over $5.7 million reported in the first quarter of 2019.

The net loss for the quarter was an eye-popping $62.4 million. The company attributed the increase in loss to “The larger magnitude of the company’s operations, the expanding scale production and sales in the period, and an impairment loss.” Operating expenses increased from $22 million in the first quarter of 2019 to $35.1 million for the first quarter of 2020.

In Other News

Jerry Jones, Dallas Cowboys Owner, Speaks on Cannabis Use

The owner of the NFL’s Dallas Cowboys told CBS Sports that the issue of cannabis use is one that the NFL is evaluating. He says, “It’s also an issue contemporarily we’re excited about being in step with the social and legal scene as it goes forward. And, so, we not only have the interest of competitiveness in mind when it comes to any type of substance, we have the issue of the law and we have the issue of the society focus on it.” While he did not confirm any upcoming changes in the league, his comments are a step forward. Other athletes and prominent figures in sports have shown their support for policy changes regarding cannabis in the NFL and other national sports leagues. 

FSD Pharma

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) announced that Nasdaq has approved its application to have its Class B Subordinate Voting Shares listed on the Nasdaq Capital Market. FSD Pharma expects the Shares to commence trading on Nasdaq in the near future.

 

 


William SumnerWilliam SumnerDecember 12, 2019
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5min2250

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

On the Site

Cresco Labs Shores Up Its Balance Sheet, Sells Property for $50 Million

The Illinois-based Cresco Labs (CSE: CL) (OTCQX: CRLBF) is looking to shore up its balance sheet by selling off one of its properties. Today the company announced that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million. Though Cresco is technically selling the property, which is still under construction, the company has entered into a triple-net lease agreement with GreenAcreage and will continue operating on the property as a licensed medical & recreational cannabis cultivation and processing facility.

Industry Power Women Awards Three During MJBiz Conference

The women’s cannabis networking organization known as Industry Power Women joined forces with Accelerate Cannabis during the 2019 MJ Biz Conference to recognize three individuals and their efforts within the cannabis industry. During the Mid-Atlantic Mixer, Saphira Galoob, Erica Daniels and Kristin Jordan each received engraved crystal awards in recognition of their work.

In Other News

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced the execution of several financing agreements. First, the company executed a term sheet for a non-brokered offering of subordinate voting shares worth $27 million, which is expected to close on or around December 18, 2019. MedMen also announced an amendment to the terms of a senior secured convertible credit facility arranged by Gotham Green Partners, securing an additional $10 million in funding. In addition to the two financing agreements, the company executed a binding term sheet in respect of certain amendments to the definitive agreements for the $78 million senior secured term loan, which is expected to mature on January 31, 2022.

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced the launch of a hemp-based line of CBD products. Dubbed “First & Free,” the new line of products will include a variety of formats such as soft gels, oil drops, and creams. The products will be made available through the company’s new e-commerce site www.firstandfree.com.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) today signed a definitive agreement for its first sale-leaseback with NewLake Capital, valued at $35 million. The agreement involves six properties across three states (California, Illinois, and Massachusetts), and totals approximately 127,000 square feet of space. The transaction includes a dispensary in San Diego, California; a dispensary in Chicago, Illinois; dispensaries in Greenfield and Lowell, Massachusetts; and two cultivation and manufacturing facilities in Lowell, Massachusetts and Aurora, Illinois. “As our markets come on-line and mature, we intend to demonstrate the power and scale of our economic model by generating positive cashflow at the individual product, facility and market levels, as well as on a consolidated basis,” said Nicholas Vita, Chief Executive Officer of Columbia Care.


William SumnerWilliam SumnerDecember 11, 2019
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3min2100

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

On the Site

The Green Lining In The Cannabis Layoff Cloud

Considering the fact that the cannabis industry is still in its infancy on the grand scale, it comes as no surprise that this industry is still facing a variety of challenges and setbacks. One of the many challenges that the cannabis industry is currently facing is appropriate levels of workforce and dealing with potential layoffs. Let’s take a look at California as an example.

Cannabis Exchange Traded Note Launched By REX Shares

REX Shares (REX) has launched the MJO, the first leveraged exchange-traded product in the U.S. linked to the cannabis industry. MJO is an Exchange-Traded Note (ETN), is linked to MSMJ, the Indxx MicroSectors™ North American Cannabis Index, and will seek to provide 2x leveraged exposure to the Index. In a statement, REX announced that the MJJ, a 1x version of the Exchange Traded Notes is linked to the Index.

Study: Individuals with Depression More Likely to Use Cannabis

Cannabis is on the rise in the United States, especially among those suffering from depression. According to a study published in the journal Addiction, individuals with depression were more likely than those without depression to use cannabis.

In Other News

TerrAscend

TerrAscend Corp. (CSE: TER) announced its intention to complete a private placement offering. The company plans to offer approximately 10.77 million units of the company at a price of CAD$2.45 per share,  which will generate gross proceeds of US$20 million. Each unit consists of one common share of the company and one common share purchase warrant. Assuming its completion, the company will use the proceeds of the offering to speed up the completion of its New Jersey cultivation and processing facility and to make a purchase price payment for the acquisition of Ilera Healthcare. So far, the company has received indicative lead orders totaling approximately US$15 million from Executive Chairman Jason Ackerman, Entourage Effect Capital, funds advised by JW Asset Management, LLC and/or other affiliated entities of Chairman Jason Wild, and others.


StaffStaffDecember 9, 2019
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4min3510

It’s time for you Daily Hit of cannabis financial news for December 9, 2019.

On The Site

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) named David Klein as the company’s Chief Executive Officer effective January 14, 2020. The company said that Klein has served in a number of senior leadership capacities over the past 14 years at Constellation Brands. His background includes extensive CPG and beverage alcohol industry experience, strong financial orientation, and experience operating in highly regulated markets in the U.S., Canada, Mexico and Europe. However, Klein has zero experience in the cannabis industry.

Cresco Labs

Cresco Labs (CSE:CL) (OTCQX:CRLBF) has completed its first harvest from its expanded cultivation facility in Lincoln, IL. The state will begin sales of legal adult-use cannabis on January 1 and is projected to be a $2-4 billion dollar market once it has matured and is expected to be one of the largest cannabis markets in the country.

Cresco has an advantage in the marketplace as the only operator in the state with three cultivation facilities and currently has 25% of the share in the medical market. It has 35,000 square feet of cultivation space across the three facilities.

In Other News

Holistic

Holistic Industries said it will make a $20 million investment in Madison Heights for its Michigan headquarters. The investment includes transforming the currently neglected property at 29600 Stephenson Highway, the vacant Fairlanes Bowling property, into a beautifully landscaped, environmentally friendly source of pride and an engine of economic development for the city and its residents.

Holistic Industries will soon break ground on the 65,000 square foot medical cannabis cultivation, processing and provisioning center. The facility will house Holistic’s flagship retail location, which will be a desirable destination for customers and patients from across the metro Detroit area and the state of Michigan.

MCOA

Marijuana Company of America, Inc. (OTCQB: MCOA), an innovative hemp and cannabis corporation, today announced the resignation of Donald J. Steinberg as Chairman of the Board, Chief Executive Officer, and Treasurer. Going forward, Mr. Jesus Quintero will serve as the Principal Executive Officer and Chairman of the Board of Directors of the Company along with Board Members Robert Coale and Edward Manolos. Mr. Quintero was already the Chief Financial Officer of the Company.

The new focus and goal of the Company will be to enter strategic acquisitions with various operational cannabis and hemp companies that are distressed in order to expand the Company’s vertical model. Additionally, the Company intends to expand its hempSMART™ branded product lines and marketing channels as well as launch other CBD brands using a direct to consumer sales approach.

iCan/Tress Capital

iCAN Israel-Cannabis and Tress Capital announced a strategic investment by Tress into iCAN.

Tress’s investment will align its mostly North American strategic cannabis investments with that of iCAN, an international cannabis incubator corporation based in Israel. The companies are working on joint strategic initiatives that create an unmatched global canvas of cannabis industry coverage and capabilities.

 


Kaitlin DomangueKaitlin DomangueDecember 5, 2019
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6min4010

Its time for your Daily Hit of cannabis financial news for December 5th, 2019.

 

On the Site

 

Greenlane Brings Keith Haring Artwork To The World of Cannabis

The company mostly known for Pax and Juul sales, Greenlane Holdings Inc.(NASDAQ: GNLN) is now producing a line of functional glassware with legendary graffiti artist Keith Haring’s work. The smoking accessories include small glass pipes, larger water pipes ashtrays and regular rolling trays.  The K.Haring Collection launches November 21, 2019, in Higher Standards stores and will be available online on November 25th at haringglass.com.

“As a longtime admirer and supporter of Keith Haring, his art, and his legacy, I am thrilled to introduce the K.Haring Collection,” said Sasha Kadey, Chief Marketing Officer of Greenlane and Creative Director for the K.Haring Collection. “The art world has long had an intertwined relationship with cannabis and has in many ways been instrumental in the advancement of the industry. The K.Haring Collection will help our mission to destigmatize and elevate the cannabis experience.”

Haring passed away in 1990 at the age of 31 in Manhattan from the AIDS disease. The Haring Foundation wants to continue to promote the artwork, but is also known for supporting not-for-profit organizations that help underprivileged children, as well as organizations involved in education, prevention, and care related to AIDS. Haring doesn’t have any cannabis images in his artwork, but his skateboard images are loved by the skateboard community which does support the cannabis community.

In Other News

Class Action Lawsuit Filed Against HEXO Corp.

 

The Schall Law Firm has announced a class action lawsuit has been filed against HEXO Corp., and encourages investors with losses in excess of $250,000 to contact them. The company is in hot water for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

 

CBD Sparkling Water Company Makes a Splash in the Beverage World

 

Infuzed Brands is a zero-sugar, zero-calorie, all-natural CBD-infused sparkling water brand. The brand is blowing up on Instagram, and within a few short months, the product is now in shelves in over 100 independent retail stores across the United States. It is quickly growing into reaching the convenience store shelves, which is considered the “make or break” sector for emerging beverage brands.

 

Zenabis Stock Drops After Facility Fails EU Quality Inspection

 

Zenabis stock trading is down following reports that one of their facilities did not comply with the EU’s GMP requirements during an inspection last year. European Union regulators published a “statement of non-compliance with [GMP] good manufacturing practice” against Zenabis on November 27th. The inspection was conducted last December when it was determined that Zenabis did not meet the EU’s requirements.

 

 

 

 


Kaitlin DomangueKaitlin DomangueDecember 4, 2019
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5min3670

Its time for your Daily Hit of cannabis financial news for December 4th, 2019. 

On the Site

Banks Cleared For SARS Reports With Hemp Farmers

On Tuesday, The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), and the Office of the Comptroller of the Currency issued a statement clarifying banking rules around hemp customers.

The key takeaway from the statement is that banks no longer need to file the onerous Suspicious Activity Report, known as SARS for hemp farmers. The statement said, “Because hemp is no longer a Schedule I controlled substance under the Controlled Substances Act, banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if indicia of suspicious activity warrants.”

Sunniva Racking Up Default Notices As Turmoil Continues

Sunniva Inc.  (CSE: SNN) (OTCQB: SNNVF) has been named in a lawsuit, along with its wholly-owned subsidiary, 1167025 B.C. Ltd., co in connection with loans made by Matrix Venture Capital Management Inc.  to Sunniva on August 28, 2019 and October 11, 2019, respectively, in the aggregate amount of $7 million. According to the company’s November 26 finance statement, it said that in June 2018, Sunniva, through its subsidiary 116, entered into a $3.4 million mortgage to finance the purchase of land for the greenhouse facility in Okanagan Falls, British Columbia. “The mortgage is repayable on October 31, 2019, and has an interest rate of 5% per annum. This balance has been reclassified to Liabilities associated with assets held-for-sale (note 7). The Company has repaid $400,000 as of September 30, 2019, but is currently in default on the remaining balance.

Separately, in the company’s lastest MD&A dated November 26, Sunniva said that on November 25, 2019, it received a 30-day notice of termination and a notice of default from SPCL “for items related to payment of outstanding balances and failure to meet certain conditions of the Build to Suit Lease. In addition, the Company received a notice of default from a promissory note holder for not applying a certain portion of the note proceeds to agreed-upon outstanding amounts.

Additionally, the company has had many of its executives resign for various reasons, and the stock fell another 13% to lately trade at 23 cents. The 52-week high was $4.30.

In Other News

Canopy Growth Launches CBD Consumer Line in the U.S.

Canopy Growth has quietly launched its hemp-derived CBD brand, First & Free, in the 31 U.S. states that allow such sales. Company spokesperson Jordan Sinclair says early signs are “positive” with some orders successfully placed.

Exactus, Inc. Announces Closing of $2 Million Convertible Note

Extractus, Inc., industrial hemp farmer and manufacturer of hemp-derived products, announced today the closing of the initial tranche of a $2 million senior secured convertible note financing from a single institutional investor. The total net proceeds from the note are approximately $1.94 million, after deducting the initial purchaser’s discount, commissions and estimated offering expenses. The note consists of three tranches where the initial financing consists of the issuance of a note in the principal amount of $833,333.33, to be followed by a $277,777.77 tranche upon the filing of an S-1 and concludes with the remaining $833,333.33 to be distributed pending the S-1 becoming effective with 25% warrant coverage priced at 105% of the closing price on the subsequent closings. 

 


StaffStaffDecember 2, 2019
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9min3790

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

On The Site

Lil Wayne

The cannabis industry continues to see a crossover of rap artists entering the space. The latest is Lil Wayne who announced on Monday the launch of GKUA Ultra Premium. The GKUA Ultra Premium will offer a line of high-potency cannabis products designed to provide consumers with ‘the best high of their lives.’

“I used to just want to get high, now I smoke to get inspired,” said Lil Wayne. “With GKUA, I’m sharing a feeling that I love.”

SOL Global

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) delivered its second-quarter results in Canadian dollars with a net loss of $51.3 million loss and no revenues only a loss of $57 million versus last year’s loss of $17 million for the same time period. The second quarter of 2018 also experienced a net income of $179 million due to the gain on the sale of a subsidiary.

Hemp Farmers

Currently, there is a bit of confusion regarding the legalization of hemp as an industry in the States. This confusion leads the local government to ban new farmers from attending to their hemp gardens for fear of being penalized under the new law.

The next few paragraphs will hopefully clear all the confusion away and allow new farmers to work on their land without much hesitation and limitation.

Giving Back

Last week was Thanksgiving and many cannabis companies and dispensaries ran holiday promotions. However, some cannabis companies though treat every day like its Thanksgiving as they make giving back to the community part of the company mission. These are some of the cannabis companies who give back every day and not just at the holiday.

In Other News

Indus Holdings

Indus Holdings, Inc. (CSE:INDS)(OTCQX: INDXF), a leading, vertically-integrated cannabis company, announced its financial results for the fiscal third quarter ending September 30, 2019. All figures stated are in US Dollars. Revenue generated for the three-month period ending September 30, 2019, was $10.1 million; 94% year-over-year growth. Revenue for the nine-month period ending September 30, 2019, was $26.2 million; 140% year-over-year growth.

EBITDA for the three-month period ending September 30, 2019, was ($16.8 million), EBITDA for the nine-month period ending September 30, 2019, was ($22.9 million). EBITDA included ($5.4 million) in write-offs of certain inventory in net loss, foregoing any future remediation, labor, and sales costs required. The inventory adjustments included revaluation and write-offs driven by the company’s decision to discontinue certain emending processes as a result of enhancing internal quality metrics, changes in materials requirements, inconsistent laboratory testing in California, and the overall economics of re-blending and reprocessing.

Chief Executive Officer, Robert Weakley, stated, “The Company achieved a new revenue record – $10.1 million in Q3. While that represents a 94 percent year-over-year increase, we did expect more. Our projections were impacted by a cultivation contract that was not fulfilled in Q3 – we had contracted for 2,000 pounds of flower in the quarter, which did not pass our lab tests and pricing agreement, resulting in more than a $3 million negative revenue impact. At the same time, our own harvest, which we planned to have two weeks of sales in Q3, got pushed to the beginning of Q4.”

4Front Ventures

4Front Ventures announced the company’s Q3 2019 earnings. As previously reported, Systemwide Pro Forma Revenue, a non-IFRS measure, of $16,902,029, an increase of more than 20% over the previous quarter’s $14,058,442. As previously reported, IFRS Revenue of $7,517,621. The company also reported a net loss of $7 million.

True Leaf

True Leaf Brands Inc. (CSE: MJ) (OTCQX: TRLFF) announced its operating and financial results for the fiscal 2020 second quarter ended September 30, 2019. True Leaf Pet division reported revenues from global sales totaling $706,752 (CAD), a 70% increase over the first quarter of fiscal 2020 and a 24% increase year over year. The company also reported a loss of $1.8 million.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF)  reached a definitive Cannabis Material Purchase Agreement on November 29, 2019, with a Canadian Licensed Producer. Under the terms of the Agreement, Aleafia Health will sell 2,840 kg of dried cannabis flower at a price per gram of $2.50, generating $7.1 million in revenue. The transaction will include up to three shipments, all of which will be completed before January 31, 2020.

The dried flower was cultivated at Aleafia Health’s Port Perry Outdoor Grow facility, which yielded 10,300 kg in 2019. The yield figure is limited to dried flower only, and excludes stems or other parts of the cannabis plant.

Aurora Cannabis

Aurora Cannabis Inc.  (NYSE: ACB), the Canadian company defining the future of cannabis worldwide, today announced that one of the Company’s oil products has now been approved for use under Ireland’s new Medical Cannabis Access Programme (MCAP). Aurora’s High CBD Oil Drops received approval from the Irish authorities and have now been added to a regulatory schedule by the Irish Minister of Health enabling importation, prescribing and supply under the scheme and is to date, one of only two products to gain such authorization.

Aphria

Aphria Inc.  (TSX: APHA)(NYSE: APHA) announced that its subsidiary Aphria Diamond secured a credit facility, on November 29 2019, with a major Canadian chartered bank as sole arranger, sole book runner and administrative agent on behalf of a group of lenders for a committed senior secured credit facility of $80 million.



About Us

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


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