Financial Archives - Green Market Report

Debra BorchardtDebra BorchardtMarch 23, 2018


Canadian-based CBD manufacturer Isodiol International Inc. (ISOLF) announced that it has signed a letter of intent to acquire 100% of KURE™ Corp.  The company, a leading specialty vape retailer headquartered in Charlotte, North Carolina, calls itself the ‘Starbucks’ of the vape industry. The amount was not disclosed, but KURE reported unaudited annual revenues for fiscal 2018 of $8.8 million. The deal is expected to close by the end of April 2018.

KURE has tried to differentiate itself from other vape shops by creating the KURE Vaporium & Lounge, a retail environment, and lounge catering to the vaping community. The company operates a total of twelve e-juice bars and lounges today, with plans for international expansion.

“We believe KURE to be the Starbucks (SBUX) of the specialty retail vape industry,” said  Craig Brewer, Chairman & CEO of KURE Corp. ” With over 200,000 customer transactions per year and growing, KURE’s knowledge base in the vape industry is exceptional. In joining the Isodiol family, we will now be able to provide our devout customers the very best CBD products on the market.”

KURE specializes in the retailing of vaporizers and e-cigarettes, e-juices, and related accessories. Its products are available online and throughout its store locations across the United States. KURE Vaporium & Lounge, KURE Society, Kuriousity, Kurators are all respective trademarks of KURE  Corp. Its e-Juices can be purchased pre-bottled or freshly mixed by its staff of “Kurators”, well-trained and experienced mixologists who can “blend” over 500,000 unique flavors from the KURE Juice On Tap bar.

“KURE’s executives are highly experienced business entrepreneurs that have done a tremendous job in building the KURE™ brand,” said Marcos Agramont, Chief Executive Officer of Isodiol.  “Not only does this further entrench our footprint in the vaping and e-cigarette industry, but through KURE retail stores, the Company will set up its own distribution channels for its family of brands, including ISO-Sport and Be Tru Wellness.”

“When we acquired Bradley’s Bioscience, we were excited about the prospects of providing safer alternatives to smoking, while at the same time being able to enter a market poised to be worth over $60 billion by 2025,” said Agramont.   “With this partnership, we will further entrench our footprint in this fast-growing industry, and we look forward to the global opportunities it presents for the Company.”

Isodiol stock was lately trading at 90 cents, down from its 52-week high of $1.69.

Jack SmithJack SmithMarch 19, 2018


AXIM Biotechnologies (AXIM) reported fiscal 2017 full-year results, with CEO Dr. George Anastassov highlighting “solid progress” the company is making on its clinical pipeline, including it getting a mass-market chewing gum to help cancer patients with nausea and vomiting.

The company said it ended the year with $2.1 million in cash, losing 8 cents a share, compared to a loss of 17 cents in fiscal 2016. In addition to the chewing gum, Dr. Anastassov highlighted other achievements the company is working on.

“Our product development partner obtained the licenses to import and work with controlled drugs that are required to continue the development of MedChew Rx® pharmaceutical chewing gum to treat pain and spasticity associated with multiple sclerosis (MS),” Anastassov said in a statement. “We achieved encouraging clinical trial results from our phase IIA pilot trial for the treatment of irritable bowel syndrome (IBS) with our CanChew +® 50 mg CBD (cannabidiol) functional, controlled release chewing gum.”

Dr. Anastassov also noted the company received two patent allowances for cannabinoids-based ophthalmic solutions, which are used to treat glaucoma and conjunctival inflammation. It also has filed a new patent for a chewing gum that has a “controlled release of cannabinoids and opioid agonists and antagonists for the treatment of opioid addiction and cannabis dependence.”

“We are committed to innovation, and believe the company is well positioned for further growth given our robust IP portfolio and proprietary CGMP extraction and microencapsulation methods,” Dr. Anastassov added.

Axim now has three patents, one for a chewing gym which has cannabinoids and two others for patnets for ophthalmic solutions. It also has 12 patent applications and 28 national trademarks, covering a wide variety of topics and products for the company.

2017 also saw the the first phase II pilot trial of the company’s CanChew chewing gum, which is used for irritable bowel syndrome. The study, which still has to go to phase III before it can be approved by the FDA, saw a 50 percent higher pain reduction when patients took the drug as opposed to an active placebo.

Over the next 12 to 18 months, Axim said it expects to complete the Phase I-III clincal trials for MedChew, a bioequivalence study of its proprietary chewing gum-based functional delivery system to Marinol, the open-label phase II clinical trial of CanChew and a host of other clinical trials, relating to disesases such as glaucoma, opioid addiction and psoriasis.

It also expects to start proof of concept studies related to cannabis dependence, post-haerpetic neuralgia and a clinical trial on illicit drug-related psychosis.


StaffStaffMarch 19, 2018


Terra Tech Corp. (TRTCD) delayed its earnings announcement from Thursday to Friday following the market close. On Friday the stock closed $3.77, but then on Monday after the investors digested the news, the stock fell to a close of $3.24 and then slipped further to $3.20 on Tuesday.

Full-year revenues for 2017  increased 41% to $35.80 million over 2016’s $25.33 million. Total revenues for the fourth quarter ending in December increased 54% to $11.01 million over last year’s $7.13 million for the same time period.

Terra Tech delivered a net loss of $32.68 for 2017, which was an increase over last year’s loss of $26.72 million. In a company statement, the loss was blamed on “an increase in sales, general and administrative expenses from the opening of the new dispensaries, an increase in the amortization of debt discount, an increase in loss on the extinguishment of debt, an increase in loss on fair market valuation of derivatives, an increase in loss on fair market valuation of contingent consideration offset by a gain on settlement of contingent consideration in the year ended December 31, 2017, compared to the prior year.” The loss per share for 2017 was ($0.71) versus last year’s loss of ($1.04).

Expenses for the year amounted to approximately $25.36 million, compared to approximately $20.72 million for the year ended December 31, 2016.

Management Comments

Derek Peterson, Chief Executive Officer of Terra Tech said, “The rapid growth of the legal cannabis market, coupled with our aggressive expansion strategy, has led to Terra Tech’s emergence as a pre-eminent retail and wholesale cannabis company in the United States. Our strategy to establish our Blüm and IVXX brands as premium cannabis experiences in targeted states set the foundation for the Company to quickly expand into the adult use market when Nevada welcomed legalization in July 2017, followed by California in January 2018. These regulatory milestones significantly expanded our addressable market and transformed the Company’s potential growth path.”

Terra Tech has $5.45 million in cash as of December 31, 2017. Subsequent to the quarter end, the company announced that it has secured a $40 million investment commitment, to be made in eight tranches of $5 million over 24 months.

Reverse Split

On March 13, the company conducted a 1:15 reverse split that was originally approved last year. As a result of this, the stock also changed its CUSIP number and the stock symbol was changed from TRTC to TRTCD.

The company said in its filing, “Although we believe that a higher market price of our common stock may help generate greater or broader investor interest, there can be no assurance that the reverse stock split will result in a share price that will attract new investors, including institutional investors. In addition, there can be no assurance that the market price of our common stock will satisfy the investing requirements of those investors. As a result, the trading liquidity of our common stock may not necessarily improve.”

StaffStaffMarch 19, 2018


CanniMed Therapeutics (CMMDF) reported that its sales rose 41% to $4.8 million from last year’s $3.4 million for the same time period. The company said that rising demand for dried medical cannabis caused those sales to jump 33% to 455kg with an average selling price of $10.56.

Net earnings for the first quarter were $5.3 million and according to the company statement,  included a $23.6 million gain on derivative instruments (Q1 2017 – $3.9 million net loss, including a $2.4 million loss on derivative instruments) that was partly offset by transaction costs of $13.1 million (Q1 2017 – $nil) and a mark to market loss on marketable securities of $2.2 million (Q1 2017 – $nil).

“CanniMed’s continued success reflects our accomplished team that always strives for excellence and remains focused on high-quality products from GMP compliant production practices,” said Brent Zettl, CEO, CanniMed. “This past quarter we have met many key milestones, including new product introduction and capacity growth. Now, as CanniMed transitions and integrates with Aurora Cannabis, I am confident that our tremendous people will continue to serve our customers well and help Aurora to realize even greater accomplishments.”

Readers may recall the epic battle that took place between Aurora Cannabis (ACBFF) and CanniMed Therapeutics. Last week,  Aurora announced that it had completed its initial take up of common shares.  Aurora extended the period in which shareholders of CanniMed may tender their shares under the offer to March 25, 2018.


CanniMed is targeting production expansion which is estimated to reach 17,000 to 21,000 kg within the next 24 months. The company launched CanniMed Topical Cream, a new product that has been formulated to provide relief from pain and inflammation and began fulfilling orders and shipping Topical Cream Kits.

The company is also prepared to commence sales of cannabis oil capsules, in anticipation of Health Canada approval in the second quarter of 2018.

During the first quarter of fiscal 2018, CanniMed announced that it had entered into an international marketing and distribution agreement with leading global pharmaceutical compounding company Fagron NV.

William SumnerWilliam SumnerMarch 14, 2018


High Hampton Holdings Corp. (HC), a cannabis investment company focused on the California market announced today that it had closed a previously announced a non-brokered private placement of 31,703,565 units of the company, valued at $19 million.

One unit of the company consists of a common share of the company and one common share purchase warrant. Each warrant allows the holder to purchase one common share of the company at a price of $0.90 per share for a two year period following the closing of the offering.

As part of the offering, the company paid eligible finders a sum total of $1,129,286 and 1,723,814 non-transferable finder’s warrants. Much like the common share purchase warrant, each finder’s warrant entitles the holder to one common share, valued at $0.90 per share, for a two year period following the closing of the offering.

The securities issued in this offering will not be registered under the United States Securities Act of 1933, and none of the securities will be purchased or sold in the United States barring applicable exemptions.

Additionally, find company insiders were issued 840,000 units of the company, which constitutes as a “related party transaction” as defined by the Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101). The issuance is exempt from formal valuation and does not require minority shareholder approval as the issuance’s fair market value does not exceed 25% of the Company’s market capitalization.

In a statement, High Hampton CEO David E. Argudo thanked the company’s shareholders for their continued support.

“It represents a strong vote of confidence for our company and team to deliver on High Hampton’s near and long-term goals,” said Argudo. “Our strategic plan for 2018 is laid out, and we are now in an excellent financial position to aggressively pursue its execution and create sustainable value for our shareholders.”

The company will use the proceeds from the offering to finance growth, complete phase one of its Coachella development, and for general and corporate purposes.

StaffStaffMarch 14, 2018


The Green Organic Dutchman Holdings Ltd. (TGOD)  announced that it has filed an amended and restated preliminary long form prospectus with the securities regulatory authorities in each of the provinces of Canada in respect of its previously announced initial public offering (IPO). The company plans a minimum offering of $75 million with a maximum offering of $100 million through the issuance of a minimum of 20,547,945 units and a maximum of 27,397,260 units at a price of $3.65 per unit.

The IPO is being led by Canaccord Genuity Corp. as the sole bookrunner and co-led with PI Financial Corp., together with Industrial Alliance Securities Inc., INFOR Financial Inc., Echelon Wealth Partners Inc. and Mackie Research Capital Corporation as agents. To date, the company has raised approximately $160 million dollars and has over 4,000 shareholders.

TGOD grows high quality, organic medical cannabis with sustainable, all-natural principles and its products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. Additionally, TGOD has a capacity to grow 116,000 kg of cannabis and is situated on approximately 175 acres of land between two of the most populated areas of Canada; Ontario & Quebec.

According to the company statement, each unit consists of one common share of the TGOD and one-half of one common share purchase warrant of the company. Each warrant is exercisable into one common share at the price of $7.00 per warrant Share, subject to adjustment, on or prior to 4:00 p.m. eastern time on the date that is the earlier of (i) 24 months after the Closing Date and (ii) the date specified in any Warrant Acceleration Notice. If, at any time, the volume-weighted average trading price of the common shares of the company is equal to or greater than $9.00 for any 10 consecutive trading day period, the company may provide written notice to Computershare Trust Company of Canada as warrant indenture trustee and the registered holders of warrants  that the expiry time of the Warrants shall be accelerated to the date which is 30 days after the date of such Warrant Acceleration Notice, subject to TSX approval.


Debra BorchardtDebra BorchardtMarch 14, 2018


San Diego-based Arena Pharmaceuticals, Inc. (ARNA) reported revenues of $15.4 million versus $69 million for the same time period last year. The company recorded a net loss of $13.7 million or $0.35 per share for the fourth quarter easily beating the estimate for a loss of $0.59 per share, but worse than last year’s net income of $38 million or $1.59 per share.

For the full-year, Arena delivered revenues of $21.3 million, a huge drop from 2016’s revenues of $92 million. The company recorded a net loss of $91.4 million or $2.77 per share;  a whopping increase over last year’s loss of $22 million or $0.93 per share. On December 31, 2017, Arena had cash and cash equivalents and investments totaling $271.3 million.

“We’ve made significant progress in 2017, achieving the clinical and corporate objectives we set forth as a new team,” said Amit D. Munshi, president, and CEO of Arena.  “Our focus remains on advancing our potentially best-in-class or best-in-disease pipeline and driving further value in the Company. We look forward to the etrasimod Phase 2 data readout this month and are enthusiastic about the Phase 3 clinical program for ralinepag, which we expect to begin in the second half of 2018.”

 The most advanced investigational clinical programs for Arena are ralinepag (APD811), which will be commencing a Phase 3 program for pulmonary arterial hypertension (PAH), and etrasimod (APD334), which is in Phase 2 for a broad range of immune and inflammatory conditions.  Arena is also evaluating APD371 in Phase 2 for the treatment of pain associated with Crohn’s disease. In addition, Arena has collaborations with the following pharmaceutical companies: Everest Medicines Limited (ralinepag and etrasimod in Greater China and select Asian countries), Axovant Sciences GmbH (nelotanserin – Phase 2), Boehringer Ingelheim International GmbH (undisclosed target – preclinical), and Eisai Co., Ltd. and Eisai Inc. (BELVIQ® – marketed product).

Arena stock was up over 4% in pre-market trading to $41. It is nearing its 52-week high of $44.50 and the stock moves further away from its 52-week low of $11.30. Eight analysts cover the stock with five at a buy rating and three with a hold rating.

StaffStaffMarch 13, 2018


General Cannabis (CANN) reported a 19% decrease in losses for the year ending December 2017 with revenue of $8.2 million versus last year’s revenue of $10.1 million. The loss per share was $0.40 versus last year’s loss per share of $0.66. The company said that as of December 31, 2017, it had an accumulated deficit of $34.8 million. Revenues for 2017 increased 18% to $3.5 million from $2.9 million. It had net cash of $5 million at the end of December 2017 versus $800,000 at the end of 2016.

“Fiscal 2017 was a transformative year for General Cannabis.  Our balance sheet has never been stronger.  Along with generating record revenues in 2017, we successfully paid down substantial amounts of debt, raised new equity, and significantly increased our book value,” said Robert Frichtel, Chief Executive Officer of General Cannabis.  “Our liquidity continued to improve in 2018, as we paid off all of our debt and generated an additional $4.2 million through the exercise of warrants and stock options.”

Chiefton Apparel

Revenues for the apparel line Chiefton recovered in the fourth quarter. The company said in its filing that in 2017 it experienced a drop in apparel sales and an increase in consulting revenue, as it dedicated resources to launching the design agency.   “Expenses for the design business during the first six months of 2017 were high, as we tried different approaches to establishing its operations, which negatively impacted costs and expenses.  We believe we now have an efficient model for Chiefton Design, with manageable, moderate recurring expenses.  In the third quarter of 2017, we hired a new managing director to drive Chiefton Supply’s apparel business, which contributed to increased sales in the fourth quarter of 2017.”

Security Segment

Revenues decreased 16% to $1.8 million in 2017 from last year’s $2.2 million due to the loss of a significant customer as a result of the drop in wholesale cannabis prices in Colorado. General Cannabis said that it was partially offset in the third quarter of 2017 by organic growth and our acquisition of Mile High.  The filing stated, “Costs and expenses typically vary with changes in revenue, however, the increase in costs and expenses in 2017 compared to 2016, relates primarily to overtime and training time for guards as our customer base recovered from the decline experienced during the first six months of 2017.  We also incurred additional expenses in 2017 for our expansion into California and overhead from the Mile High acquisition.”

Operations Consulting

Revenues in 2017 increased 193% to $1.2 million over last year’s $432,000 primarily due to General Cannabis’ assisting companies submitting applications to acquire licenses in states that recently legalized cannabis like California and adding a significant two-year contract in July 2017 to manage the cannabis grow facility for a customer.  Costs and expenses increased in 2017 primarily due to the company hiring new consultants to meet current and expected future demand for services, as well as the cost of the products sold.

Additional Management Comments

“Along with growth through acquisitions, we are also focused on organic growth and driving each segment to profitability,” said Joe Hodas, Chief Operating Officer of General Cannabis.  “I have spent extensive time with each of our segment leaders, diving into staffing models, revenue projections and challenges.  With initial analyses in hand and the existing General Cannabis infrastructure, I believe we can capitalize on new lines of business, cross-sale opportunities between segments, and operating efficiencies.  I am eager to work with the great team in place here at General Cannabis to drive strong top line and bottom line results.”

Michael Feinsod, Executive Chairman of General Cannabis, stated:  “Our business expanded during the year, which positions us for continued national expansion.  We will continue to hire talented executives to support our growth.  General Cannabis has never been in a better position to take advantage of our strong infrastructure and continue to focus on growth through acquisitions.  Our strong platform and corporate team can quickly help entrepreneurial cannabis companies achieve success.”


Debra BorchardtDebra BorchardtMarch 13, 2018


Arizona-based Zoned Properties Inc. (ZDPY) reported its fourth quarter and full year results with revenue dropping slightly in the quarter as the company sold a building in Tempe, AZ in March. Revenue fell by 2% to $533,000 versus last year’s $543,000.

Net income was $189,000 or one cent per diluted share versus last year’s net loss of $166,000 or one cent per share. Income from operations was $204,000 for the fourth quarter, an improvement over last year’s loss from operations of $109.000.

For the full year, revenue increased 14% to $2.1 million over last year’s $1.9 million. The company recorded a one-time gain of $832,000 for the sale of a property. Net income for the full year was $1.4 million versus last year’s loss of $501,000. The company delivered net income of seven cents per share over last year’s loss of three cents per share. At the end of December, Zone Properties had cash of $824,000 versus last year’s cash position of $366,000 at the end of 2016.

“At the start of 2017 we expressed our optimism about achieving profitability through increased monthly rental revenue streams and lower operating expenses, and we achieved those goals with revenue growth of 14% and a reduction in our operating expenses of more than 30% to drive net income of $1.4 million and positive cash from operations for the full year,” commented Bryan McLaren, Chief Executive Officer of Zoned Properties. “Our 2017 accomplishments not only drove impressive financial results but also laid the groundwork for us to further invest in other projects to replicate our successes and further drive value for our shareholders.”

In a letter to shareholders, McLaren said he planned to diversify the company through its Strategic Advisory Services which would advise clients in the early stages of their projects. The idea being that it would give Zoned the ability to shape property development plans, which would increase the chances of success and secure a longer-term role for the company with that property. He also noted that the company would secure “non-toxic sources of capital.” McLaren stated that the portfolio of debt-free properties was increasing in value and that Zoned could leverage those assets to secure lower-cost debt.


In the letter, McLaren stated, “To date, we are working with multiple operators in a number of states, some of which have not yet been announced. By taking a relationship approach for the projects we choose to invest our time and resources, we have the ability to establish a foundation for long-term results for years to come.”

The stock was lately trading at 70 cents, down from its 52-week high of $1.80.

Zoned Properties is a strategic real estate development firm whose primary mission is to identify, develop, and lease sophisticated, safe, and sustainable properties in emerging industries, including the licensed medical marijuana industry. The company focuses on the strategic development of commercial properties that face unique zoning challenges; identifying solutions that could potentially have a major impact on cash flow and property value. Zoned Properties targets commercial properties that can be acquired and re-zoned or permitted for specific purposes. Zoned Properties does not actually “touch the plant” and remains a landlord.

StaffStaffMarch 12, 2018


The North American Marijuana Index, a stock index created by The Marijuana Index that tracks the top performing cannabis stocks in the U.S. and Canada, decreased 24% in February as the broader market also tumbled. The Russell 3000 and the S&P 500 both fell 3.7%. Even the MSCI REIT Index plunged 7.7%, making this the deepest monthly slide in over six years.

Following a strong start in 2018, the U.S. Marijuana Index spiraled down 23% in February. According to the Marijuana Index, all 15 stocks in the Index registered losses for the month and 13 companies lost more than 10%. Traders seemed to disappear as volumes fell a whopping 75% in February versus January.

The Canadian stocks didn’t fare much better and that index had been on an impressive winning streak posting five consecutive months of gains. The Canadian Marijuana Index decreased 21% in February and most of those losses occurred in the first two days of the month. Cronos Group Inc. (TSX-V: MJN) and CanniMed Inc. (TSX:CMED) were the only companies to end the month in green territory. Cronos Group also made headlines by uplisting at the Nasdaq and moving from the International Exchange to the Global Exchange using the ticker CRON. So far, it is the first cannabis grower stock to be listed on a major U.S. exchange.

The Biggest Losers

The top overall losers were Maricann Group (CSE: MARI) (MRRCF) which fell 41%, followed by Namaste Technologies  (CSE: N) (NXTTF) which also dropped 41% and then Kush Bottles (KSHB) slid 37% for the month.

The top losers for the U.S. Index were Kush Bottles, followed by Cannabics Pharmaceuticals Inc. (CNBX) falling 34% and Surna Inc. (SRNA) dropping 32%. The top losers for the Canadian Index were Maricann, the Namaste and then rounding out the top three was MYM Nutraceuticals Inc (CSE: MYM) (MYMMF) which dropped 37%.

The Most Active

The most actively traded stocks were Aurora cannabis (TSX:ACB) (ACBFF) which fell 11% for the month as $159 million in shares were traded. It was followed by Canopy Growth Corporation (TSX:WEED) (TWMJF) which declined by 12% as $130 million in shares were traded. GW Pharmaceuticals (GWPH) slid 18% for the month as $55 million in shares changed hands.


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


Recent Tweets

@GreenMarketRpt – 8 hours

RT : This is a super important dynamic: As long as you can shop around for labs, there will be some that are more “friendly…

@GreenMarketRpt – 8 hours

RT : Review your team approach and from the week so far. How can you make adjustments to boost the p…

Back to Top