Financial Archives - Page 2 of 19 - Green Market Report

Debra BorchardtDebra BorchardtSeptember 4, 2018
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3min10250

Aurora Cannabis Inc. (ACBFF) said that it has closed its previously announced debt facility with the Bank of Montreal for a C$150 million term loan and a $50 million revolving credit facility. The two pieces of debt will mature in 2021 with the option to increase it to C$250 million.

According to a company statement, the debt facility is primarily secured by Aurora’s production facilities, including Aurora Sky, Aurora Mountain, and Aurora Vie. Aurora Sky is strategically located at Edmonton International Airpor and is projected to produce in excess of 100,000 kg per year of high-quality, low-cost per gram, cannabis upon completion.

“We are incredibly proud to have successfully closed this historic debt facility supported by a premier Canadian bank, BMO, who understands our needs and potential. This is both a reflection of the rapidly maturing nature of the broader cannabis industry and strong validation of the economic potential of Aurora’s best-in-class, technologically advanced production facilities,” said Terry Booth, CEO of Aurora. “This additional capital positions us well to continue building the pre-eminent global cannabis company with a focus on vertically integrated, geographically and horizontally diversified assets.”

In addition to closing on the debt deal, Aurora also announced that it has agreed with The Green Organic Dutchman (TGODF) to extend its deadline for the company’s first milestone option by six weeks. to October 12, 2018, from the original date of August 2. The option enables Aurora to purchase an additional 8% of TGOD shares.

“The Aurora partnership has been incredibly beneficial for both parties to date,” said Brian Athaide, TGOD’s CEO. “In addition to the organic supply agreement, the value of Aurora’s initial investment has increased nearly five-fold. In turn, the assistance provided by the Aurora team has helped accelerate our progress across all divisions, and we look forward to continuing our strategic partnership as we work towards building the largest organic cannabis brand in the world,” continued Athaide.

Terry Booth, CEO of Aurora, added, “We are pleased with the progress made at TGOD to date, as reflected by the significant appreciation of our investment. We are now working with the TGOD team on finalizing the details of our go forward partnership, and we will continue to support them as they execute on their strategy.”


Debra BorchardtDebra BorchardtAugust 22, 2018
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4min3080

Toronto-based Emblem Corp. (EMMBF) reported second-quarter revenues of $1.5 million for the quarter ending June 30, 2018, an increase of 180% over the same time period in 2017. The company also delivered a gross loss of $159,000 for the quarter versus last year’s zero amount and a let loss of $4.7 million versus last year’s net loss of $2.9 million.

The company said that higher revenues and unrealized gains on changes in fair value of biological assets were offset by rising production costs that had ramped up to meet those rising sales volumes.

“Demand for our medical cannabis products significantly increased period over period, further driven by our oil extracts released at the end of 2017,” said Nick Dean, President & CEO of Emblem Corp. “We have established Emblem as a trusted brand in the medical cannabis space. We are supporting our registered patients with additional cannabinoid oil profiles and new size formats including 30ml bottles, in addition to the original 60ml bottles. In addition, we anticipate launching our new metered-dose controlled oral sprays during the third quarter of 2018.”

According to the company statement, revenues of dried cannabis flower purchased by registered medical patients amounted to $499,000 and $956,000 during the three and six months ended June 30, 2018 (June 30, 2017 – $398,000 and $859,000), respectively. Total dried flower sold to medical patients during the three and six months ended June 30, 2018 amounted to 58.6 kilograms and 111.4 kilograms of dried flower (June 30, 2017 – 53.9 kilograms and 108.6 kilograms), at an average selling price of $8.58 per gram and $8.59 per gram (June 30, 2017 – $8.41 per gram and $7.90 per gram), respectively.

Revenues from cannabis oil products during the three months and six months of 2018 amounted to $320,000 and $507,000 or 39% and 35% of total sales to medical patients, respectively. Prior to December 2017, the Company did not sell cannabis oil products as it did not receive its sales license to sell cannabis products until late 2017.

Looking Ahead

Since the quarter ended, Emblem has made a $3 million investment into Natura Naturals and plans to acquire the company increasing Emblem’s production capacity to 70,000 kilograms by the end of 2019. The company also embarked on a strategic partnership with GreenSpace Brands Inc. to develop and commercialize cannabidiol infused health and beauty products for the soon to be legal adult-use cannabis market.

Emblem has increased its patient count to roughly 4,430 active registered patients and launch its first adult-use cannabis brand called “Symbl.”

This week, Emblem said that it signed a supply agreement with the Ontario Cannabis Store, and the Alberta Gaming, Liquor, and Cannabis Commission.

Separately, Emblem uplisted its stock to trade on the OTCQX market.

Dean added, “We remain steadfastly focused on executing against our plan and building a sustainable business that will drive long term value for our shareholders. long-term quarter results are a testament to this mission.”

 


StaffStaffAugust 14, 2018
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3min3030

GrowGeneration Corp.

GrowGeneration Corp. (GRWG), one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets, with currently 18 locations, reported financial results for its 2nd quarter ended June 30, 2018.

The company delivered revenue of $7.15 million, up 74% compared to revenue of $4.1 million for the 2nd quarter of 2017. Store operating costs have declined 13% from 18.2% for the 2nd quarter 2017 to 16.1% for the 2nd quarter of 2018. YTD revenue of $11.5 million, up 72% compared to YTD revenue of $6.7 million for 2017. YTD store operating costs have declined from 19.4% for the six months ended June 30, 2017, to 17.6% for the six months ended June 30, 2018.

The company had $17.4 million in cash and cash equivalents at June 30, 2018. As of June 30, 2018, the company had working capital of $24.5 million compared to working capital of $5.6 million at December 31, 2017.

Surna Inc.

Surna Inc. (SRNA) announced operating and financial results for the three and six months ended June 30, 2018.  Surna Inc. designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada.

The company reported that its Q2 2018 revenue was $2,008,000, a decrease of $47,000, or 2%, compared to Q1 2018.  It had Q2 2018 net bookings of $3,867,000, a decrease of $756,000, or 16%, compared to Q1 2018.  The ending backlog as of June 30, 2018, was $8,883,000, an increase of $1,859,000, or 26%, compared to the March 31, 2018 backlog, and its largest quarter-end backlog. The Q2 2018 gross profit margin was 26%, an increase of seven percentage points from its Q1 2018 gross profit margin.

CannTrust Holdings Inc.

CannTrust Holdings Inc. (TRST), a Canadian licensed producer of medical announced financial and operating results for the three and six months ending June 30, 2018. All amounts expressed are in Canadian dollars.

Revenue for the three and six month periods ended June 30, 2018 was $9,050,239 and $16,890,086 respectively, compared to $4,541,378 and $7,574,623 in the comparable 2017 periods. Net income for the three and six month periods ended June 30, 2018, was $104,905 and $11,547,015respectively, compared to a net income of $754,864 and a net loss of ($23,040) in the comparable 2017 periods.

Earnings for the current period were impacted by approximately $1.5 million of increased costs associated with the ramp-up of the Niagara Perpetual Harvest Facility. Earnings per share for the three and six month periods ended June 30, 2018, was $Nil and $0.12 respectively, compared to earnings per share of $0.01 and $Nil in the comparable 2017 periods.


Debra BorchardtDebra BorchardtAugust 14, 2018
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3min4960

Cronos Group (CRON) stock popped over two percent in early market trading after the Canadian cannabis reported that its revenue for the second quarter jumped 428% to $3.4 million. It was an increase of $2.8 million over the previous year’s quarter.

The main drivers behind the revenue increase were an expansion in patient onboarding, an increase in average sales price and the strong growth in cannabis oil sales. Second quarter cannabis sales were responsible for 40% of the company’s domestic medical sales.

The company delivered a gross profit of $6.3 million for the quarter versus $1.1 million for the same quarter in 2017. The net income rose to $723,000 for the quarter versus $174,000 for the same quarter last year. Cronos strengthened its balance sheet by raising $100.0 million of gross proceeds through a bought deal offering of common shares in April 2018. bringing the company’s total liquidity to $118.0 million.

“Cronos Group delivered encouraging results across the Company in the second quarter with sales growing among all of our products and channels, impressive improvements in cultivation yields since the start of the year, and continued business development success in penetrating new markets and establishing new partnerships for expansion,” said Mike Gorenstein , CEO of Cronos Group.

Since Q2

The company has been busy since the quarter closed. Last month it announced a 50/50 strategic joint venture with a group of investors led by Bert Mucci to create a new partnership named Cronos Growing Company Inc. The group plans to construct an 850,000 square foot greenhouse for cannabis production on approximately 100 acres of land owned by Cronos GrowCo in Kingsville, Ontario. Once fully operational, the greenhouse is expected to produce up to 70,000 kilograms of cannabis annually.

In addition to that joint venture, Cronos entered into a supply agreement with Cura Cannabis Solutions, which is one of the largest cannabis companies in the world by revenues in the first quarter of 2018. The five year take-or-pay supply agreement is set to purchase a minimum of 20,000 kilograms of cannabis per annum from Cronos GrowCo starting from the date Cura receives its production and sales licenses from Health Canada. Cura also expects to build its proprietary, state-of-the-art extraction facility on a parcel of land owned by Cronos Group in the heart of Okanagan Valley, British Columbia.

Stock Performance

Cronos stock was moving up over 2% in early trading to $5.96. The stock’s 52-week high was $10.39 and the year’s low is $5.12.


StaffStaffAugust 13, 2018
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4min3110

C21 Investments Inc. (CSE: CXXI)  has entered into an agreement to acquire Oregon-based premium cannabis edible companies Grön Chocolate and Grön Confections. The deal is expected to close by November 1, 2018. C21 has agreed to pay Grön unitholders $6.8 million plus the bonus earn-out shares of $4.375 million

Edibles are one of the fastest growing segments of the cannabis space,” said Robert Cheney, Chief Executive Officer, C21 Investments.  “Grön is a critical addition to C21’s growth strategy to acquire operations that can vertically integrate in each state and compete aggressively in the US$11 billion cannabis market in the United States.”

According to the company statement, This is the sixth acquisition agreement announced by C21 Investments in the past year and will be accretive to earnings of C21 Investments.  Other agreements include Silver State Relief in Nevada, as well as Phantom Farms, Swell Companies, and Eco Firma Farms in Oregon.  C21 Investments has been successful in ensuring that the talent of each operation continues to perform and grow in order to provide a strong culture for its group of companies.

Grön

Grön was founded by Christine Smith in 2014, who named the company after the Swedish word for green and is a tribute to Christine’s architecture studies in Denmark and love for all things sustainable and Scandinavian. The brand is considered one of Oregon’s largest and most respected edible brands and known as the most prolific chocolate bar in Oregon. Grön has secured shelf space in over 400 retail stores with immediate plans to expand into California and Nevada. Grön has two licensed manufacturing facilities totaling over 7,000 square feet as well as a small retail/tasting room with an emphasis on CBD education.  In 2018, Grön launched the first fully licensed CBD café in North America with the introduction of their CBD lifestyle/wellness line.

C21 Investments

Vancouver-based C21 Investments Inc. is a vertically integrated cannabis corporation that cultivates, processes, and distributes quality cannabis and hemp-derived consumer products in the United States.  The company has definitive agreements to acquire cannabis companies in Oregon and Nevada that, when closed, will make C21 one of the largest public cannabis companies by revenue in the world.

 


Debra BorchardtDebra BorchardtAugust 13, 2018
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4min8490

FLRish Inc., a California corporation d/b/a Harborside is entering into a binding letter agreement with  Lineage Grow Company Ltd.  (CSE:BUDD) for a reverse takeover in a deal valued at C$200 million. Lineage will acquire all of the outstanding shares of Harborside in exchange for newly issued shares of Lineage.

Harborside operates two flagship dispensaries in the San Francisco Bay Area as well as a cultivation facility in Salinas California, plus the Harborside brand. The move will help Harborside expand within the state and across the U.S.

“I founded Harborside with Dress Wedding in 2006 to provide a gold standard of medical cannabis retailing; to serve patients with the most attractive facilities, highest levels of care, and best product knowledge in the industry; and to offer and produce safe, innovative and effective products that improve the quality of our customers’ lives,” said Steve DeAngelo, Chairman Emeritus and Co-Founder of Harborside.

Dress Wedding is the Co-founder and Holistic Services Director at Harborside. His bio on the company website reads, “Having always been a free spirit and nonconformist, dress has spent much of his adult life as an activist for peace and justice; working with non-hierarchical groups on direct action projects to stop war and injustice, and bring more equality and balance to the lives of poor and oppressed peoples.”

Combined, the two Harborside dispensaries have generated over CAD $400 million in sales since their opening, including over CAD $50 million sales in 2017. Harborside is currently structured as a private California corporation.

Lineage’s chief executive officer Peter Bilodeau, who will assume the role of Chairman of the Board of Directors of the Resulting Issuer, commented, “We are very excited to be joining forces with Harborside, one of the most iconic and longstanding brands in the cannabis industry, which positions the resulting company extremely well for future growth. After the Transaction, the company will have access to the necessary resources to fulfill our combined vision for California’s most trusted, vertically-integrated cannabis company focused on high margin retail and branded product sales channels.”

Terms

100% of the outstanding securities of Harborside shall be exchanged for Lineage securities. The price per Lineage share issued to Harborside security holders will be $0.165. Current shareholders of Harborside are expected to own in excess of 80% of the common shares of Lineage and the company is expected to operate under the name “Harborside, Inc.” The shares are planned to trade on the Canadian Securities Exchange.

Harborside intends to complete a convertible debenture financing prior to the closing of the deal, for gross proceeds of C$20 million. The funds raised will be used for capital expenditures at Harborside’s cultivation campus in Salinas, CA, development of Harborside’s retail management services business segment, general corporate expenses, working capital, and a loan to Lineage to assist with completion of its previously announced acquisitions pending closing of the RTO.


Debra BorchardtDebra BorchardtAugust 7, 2018
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3min5560

New York-based cannabis-focused institutional fund Navy Capital Green International Ltd. invested $3 million of equity into  Nevada-based Oasis Cannabis. Oasis is an integrated cannabis producer and retailer in Nevada. It is also a subsidiary of CLS Holdings USA Inc., which operates as Cannabis Life Sciences.

Navy Capital said that it has an extreme interest in the CLS patented extraction and processing technology. According to the company statement, Navy Capital or select others may invest an additional two million with a 15% overallotment for a total of up to $5,750,000 by August 15, 2018.

“We believe CLS Holdings possesses the premier vertically-integrated cannabis business in Nevada and when combined with the company’s opportunities in other major U.S. states and its cutting-edge scientific developments, we expect that CLS quickly will establish itself as one of the top companies in the emerging U.S. cannabis market,” said John Kaden, Managing Partner and Chief Investment Officer of Navy Capital.

With this investment, CLS now has all the funds in place to complete its build-out of its Las Vegas cultivation and production facility. In addition, CLS will utilize a portion of the proceeds to update its existing Oasis Cannabis dispensary location and improve its signage.

Jeff Binder, Chief Executive Officer of CLS, commented, “We look forward to the added value that Navy Capital brings to CLS. It is a terrific corporate development to have an additional partner, of Navy Capital’s stature, and we are excited by the expertise they bring to CLS.”

Oasis Cannabis

Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top marijuana retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas in combination with its delivery service to residents allows it to efficiently serve both locals and tourists in the Las Vegas area. The company recently commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products in August 2017.


William SumnerWilliam SumnerAugust 1, 2018
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3min3170

CV Sciences (CVSI), a company dedicated to developing CBD oil products and novel therapeutics utilizing synthetic CBD, today announced its financial results for the second quarter, which ended on June 30, 2018. The stock popped almost 5% on the news sending the price to approximately $3.31 for a 52-week high. Most recently the company announced that it has applied to list its stock on the NASDAQ Capital Market.

Overall results were positive. Sales for the quarter rose to $12.3 million, representing a 203% increase compared to the same period last year and a 53% increase over the previous quarter.

Gross profit for the quarter was $9.06 million, compared to $2.8 million in the same period last year, and its GAAP net income was $3.1 million. The company’s EBITDA for the quarter was $3.3 million, and its Adjusted EBITDA was $3.8 million. During the same quarter last year, the company’s EBITDA was $811,488, and its Adjusted EBITDA was 280,939.

Over the last quarter, the company increased its retail distribution channels by 11% to 1,968 stores nationwide. The company increased its cash position by $3.3 million in the second quarter, with approximately $6.4 million in unrestricted cash and $7.2 million in total cash.

On August 1, 2018, the company will hold a conference call, led by CV Sciences CEO Joseph Dowling, to provide an operational and financial summary of the second quarter and year-to-date results. The call begins at 4:15 PM EDT and will be available for live stream on the company’s website. For those unable to attend, a recording of the call will be made available for the following two weeks.

“CV Sciences delivered strong financial results for the second quarter of 2018, including our second consecutive quarter of profitability. We also reported record key performance metrics that include triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison,” said CV Sciences CEO, Joseph Dowling, in a statement. “To date, we have been able to successfully execute our planned strategy of aggressively and consistently growing our sales distribution channels, further penetrate the market and increase our market share within the natural products industry…”


StaffStaffAugust 1, 2018
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5min5970

Canadian-based cannabis company Aphria Inc. (APHQF) reported increasing sales for its fourth quarter and year ending May 31, 2018. Revenue for the quarter rose 17% sequentially to $12,026. The increase in the quarter was driven primarily by reporting Broken Coast results for a full quarter versus only one month of revenue in the prior quarter.

Adjusted gross profit for the fourth quarter was $ 9,468, with an adjusted gross margin of 78.7%, compared to $4,903 with an adjusted gross margin of 85.7% in the prior year’s fourth quarter, representing an increase of over 90%. The increase in the adjusted gross margin from the prior quarter was consistent with the increase in revenues combined with improved cost structures.

Net loss for the fourth quarter was $4,992 or $0.06 per share versus the net loss of $2,593 or $0.02 per share in the prior year. The decrease in net income for the quarter relates to $6.5 million in incremental share-based compensation, $3.3 million of costs associated with Aphria International, $8.6 million in net losses on the company’s investment portfolio, all offset by almost $13.0 million in incremental gross profit.

Annual Results 

For the year revenue increased 81% to $36,917 versus $20,438  for 2017. Adjusted gross profit for the year was $27,912 , with an adjusted gross margin of 75.6%, compared to $15,854 , with an adjusted gross margin of 77.6%, representing an increase of over 75%. The increase in adjusted gross profit for the year is consistent with the company’s increase in revenue over the period.

Net income for the year was $29,448 or $0.18 per share, as opposed to $4,198 or $0.04 in the prior year. The increase in net income for the year relates to fair value adjustments associated with biological assets and unrealized gains on the company’s investment portfolio.

Management Comments

“We had a healthy fourth quarter and a solid year with many achievements we are proud of,” said Vic Neufeld , Chief Executive Officer, Aphria. “We are excited and ready to hit the ground running on the first day of legal adult-use. It won’t be without its challenges but we have a plan and the team in place to get it done. We continue to sign supply agreements with provinces and territories, and our Southern Glazer’s sales network partnership is unmatched, ensuring our brands and products are available and represented by retailers across the country.”

“Beyond that, we will continue to extend our industry-leading expertise and experience into global markets. We’ve had an exciting year adding more depth and experience to our senior leadership team that has helped expand our international operations and presence outside of Canada, US and Australia to an additional eight countries, and look forward to continued expansion within LATAM,” continued Neufeld.

Preparing For Adult Use Sales

Aphria suggested that revenue could dip due to its “previously announced decision to discontinue wholesales sales to other licensed producers, to provide increased inventory for the eventual pipeline fill for adult-use and international market opportunities over the next six to nine months.” Aphria has signed MOU‘s with British Columbia, Alberta, Manitoba, Quebec, New Brunswick and the Yukon Territory, with more agreements to be announced in the short-term.

Aphria believes that its low cost of production will help it to be successful against its peers as adult use sales begin. The company reported improved cash costs to produce dried cannabis per gram to $ 0.95, a decrease of $0.01 in the quarter, remaining below $1.00 for the second consecutive quarter.


Debra BorchardtDebra BorchardtJuly 30, 2018
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3min4040

Canadian-based Organigram Holdings Inc. (OGRMF) stock rose over 2% to approximately $3.43 after the cannabis delivered solid results for its fiscal third quarter. The company reported sales of C$3.7 million for the fiscal third quarter versus last year’s C$1.9 million in the same time period.  The company also reported net income of C$2.8 million for a sequential increase of 162% compared to $1.1 million in the second quarter. This easily topped last year’s third-quarter loss of $C2.3 million.

“Our fiscal third quarter was transformational for the Company,” read the company statement. “Our production capabilities have increased exponentially, we launched our adult recreational brand strategy and have signed agreements with a number of provinces and private retailers as well as announcing key significant investments from both a strategic and international perspective. As we head into the launch of the adult use recreational market we believe Organigram is well positioned to build upon its domestic medical business into becoming a national player in the adult recreational market and a global player in the medical market.”

The company’s cultivation the cost per gram for dried flower came in at C$0.80 per gram “all-in” which includes direct labor and materials, allocated overhead and depreciation. Excluding depreciation, the cost was C$0.58 /gram.

Organigram reported that its cannabis oil sales volume increased 39% sequentially to 768,400 milliliters from the second quarter and jumped 452% over last year’s third quarter. The sales volume for dried flower increased 28% sequentially from the second quarter to 303,428 grams and rose 55% over last year’s 196,129 grams.

The company is in solid financial position with $156 million in cash and short-term investments (up from $34 million at the August 31, 2017 year-end). Still, there is $98 million in long-term debt and convertible debentures.

Last week, Echelon Wealth Partners initiated coverage on Organigram with a speculative buy rating and a $7 price target.

 

Looking Ahead

The company said that its Phase 4a (26 grow rooms) and 4b (27 grow rooms) construction expansions began in Q4 including a substantially complete 40-megawatt (peak capacity) substation worth $4 million – total cost of Phases 4a and 4b (including the $4 million spent on the substation) estimated to be $70 million bringing target production capacity to 89,000 kg/annum. Phase 4c (24 grow rooms) which has an estimated cost of $40 million would bring target production capacity to 113,000 – construction scheduled to begin in January 2019.



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