Marijuana Money Archives - Green Market Report

Video StaffVideo StaffAugust 16, 2019

3min4260

We are in the throes of earning season and in the midst of all this information, the broader market went into a tailspin as equities slid over 800 points one day and bonds signaled recessionary fears.

It wasn’t much better over in the cannabis sector either.

Canopy Growth Corporation (CGC) stock dropped over 10% after the company announced first quarter with net losses of C$1.28 billion which dwarfed last year’s losses of C$91 million. The loss was attributed to a non-cash charge of $1.2 billion in Canopy’s extinguishing warrants related to the Constellation Brands Inc. (NYSE: STZ)  investment.

Zenabis Global Inc. (TSX:ZENA) (OTC: ZBISF) reported that its second-quarter net revenue rose 78% to $25 million from last year’s $4.1 million but The company also delivered a net loss of $18.5 million. Zenabis said that it expected net cannabis revenue to be in the range of $10 to $12 million but the actual net cannabis revenue for the period was $7,2 million.

Charlotte’s Web Holdings, Inc. revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. Unfortunately, the net income fell to $2.2 million from last year’s $3.7 million

Tilray’s second-quarter revenue increased 371.1% to $45 million but the company reported a net loss of $35.1 million compared to a loss of $12.8 million last year.

MedMen (MMNFF) reported that its revenue rose 15% sequentially to $42.0 million not counting pending acquisitions. The company also had to amend its deal with Gotham Green to reflect the company’s much lower stock price.

One of the brightest earnings for the week was Trulieve which reported revenue of $57.9 million, an increase of 30% sequentially and net income of $57 million. Not a net loss!

CannTrust  said it received a report from Health Canada telling the company that “Its manufacturing facility in Vaughan, Ontario has been rated non-compliant with certain regulations.” The stock is dropped over 25% on the news that the company has continued to have issues with facilities failing inspections.


Video StaffVideo StaffAugust 9, 2019

3min4820

Colorado Department of Revenue’s Marijuana Enforcement Division (MED) released its 2018 annual update for the fifth straight year. The adult-use market accounted for 66% of the total pounds of marijuana flower sold to consumers in 2018 and accounted for 86% of the total units of edibles sold to consumers

It was a busy week for earnings announcements from some major cannabis companies. British biotech firm GW Pharmaceuticals pls reported second-quarter net sales of $68.4 million of the company’s cannabis-related drug Epidiolex. For the first half of 2019, GW Pharmaceuticals has sold $109 million of the drug. The good news sent the stock higher by over 10% in aftermarket trading and the better news is that 12,000 patients are taking this drug and describing good results.

Columbia Care reported that its second-quarter revenue rose 102% to $19.3 million year over year and that was up 50% sequentially.

GrowGeneration reported that its revenue was up 172% year over year to $19.5 million.  same-store sales were up 23% over last year as well.

CV Sciences reported revenue of $16.9 million for the second quarter of 2019, an increase of 36% over the same quarter in 2018. 14 consecutive quarters of sequential revenue growth.

Cronos Group reported that its Net revenue jumped 202% to $10.2 million in the second quarter. A gain from the revaluation of derivatives caused the company to record a net income of $250 million

In acquisition news, TerrAscend has agreed to acquire 100% of the equity of Ilera for a total consideration of between US$125-$225 million, paid in a combination of cash and TerrAscend shares.

LeafLink raised $35 in a Series B round led by Thrive Capital.

Henry’s Original (Henry’s) closed on an $11million Series B investment led by New York-based private equity firm Merida Capital Partners.

Medical marijuana is now legally available to Louisiana patients, with Baton Rouge’s Capitol Wellness Solutions recording the state’s first-ever regulated medical-cannabis sales transaction at the dispensary’s grand opening today.

 


Video StaffVideo StaffAugust 2, 2019

2min5261

The week New York state Governor Cuomo signed a law that reduces the penalties for cannabis possession. NY actually decriminalized small possessions back in 1977, but that didn’t stop law enforcement from arresting over 300,000 people since then with the majority of those people being black or brown. This law reduces possession to a fine and allows some people to be able to expunge their records of previous marijuana charges.

CannTrust announced it was considering selling the company this week. It has been nonstop scandals for them since they admitted to growing cannabis in unlicensed rooms. Top executives apparently knew about it and condoned it. The CEO was terminated “with cause” just last week. Plus, there is the talk of insider trading among board members who may have known about the illegal grows. No word yet on any interested parties.

Speaking of beleaguered cannabis companies. Harvest Health entered a deal to secure a loan of $225 million at 8% interest. The company said it will use the money to fund expansion. Harvest Health has also come under fire for its aggressive expansion moves as Ohio questioned the company’s ownership claims with regards to minority status. All of those licenses are on hold and may be revoked. Harvest may also lose its license for a facility in Carmichael in Pennsylvania.

TILT Holdings refiled amended and restated management discussion and analysis documents for the year ending in December 2018 and the quarter ending March 2019. That company caught a lot of flak for taking a $500 million write-down weeks after going public.

 

SOL Global reported net income of $94.9 million for the year ending March 2019. Most of the money came from the company’s sale of its LATAM assets which went for $297 million.

Nextleaf Solutions common shares began trading on the OTCQB market this week using the symbol OILFF, while on last Friday CannBioRx began trading at the NASDAQ after being acquired by KBL Mergers. The symbol will be KBLM.


Video StaffVideo StaffJuly 26, 2019

4min2800

This is the marijuana money for the week ending July 26, 2019.

This week the FDA sent a warning letter  to Curaleaf saying that the company made unsubstantiated health claims on its CBD products. “You should take prompt action to correct the violations cited…” reads the letter. “Failure to promptly correct these violations may result in legal action without further notice, including, without limitation, seizure and injunction.” Curaleaf has 15 days to respond to the FDA’s letter and take corrective actions. CVS then decided to pull the products from its shelves and this comes just 4 months after CVS made a big deal about selling the products. Curaleaf stock plunged from roughly $8 to below $7 in one day.

Sundial Growers, an early-stage Canadian cannabis producer, announced today the terms of its initial public offering (IPO). Hoping to raise $130 million, the company is offering 10 million shares ranging in price between $12 and $14

Amplify ETF’s announced the launch of Amplify Seymour Cannabis ETF (NYSE Arca: CNBS), an actively managed ETF covering the cannabis industry. Tim Seymour, CIO of Seymour Asset Management and CNBC Fast Money co-host, will act as the fund’s portfolio manager.

The Flowr Corp. was originally thought to be listing shares last week on the NASDAQ Marketplace, but that was shelved. Instead, the company announced on Monday that it agreed to sell 10 million units of the company at a price of C$4.10 per unit for approximately C$43 million in proceeds.

CannTrust (CTST) stock took another turn for the worse after it was disclosed that the top executives were very well aware of the illegal grows happening in the companies unlicensed rooms.

After taping the video, this news was announced: Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) said that the international tobacco company Imperial Brands PLC will make a $123 investment in the company through a convertible debenture.


Video StaffVideo StaffJuly 19, 2019

3min4830

The big news this week was the announcement that Curaleaf was buying Grassroots in a deal valued at $875 million. Grassroots was one of the few remaining multi-states that was still private. This deal will give Curaleaf the midwest footprint that it lacked because of the company’s operations in Illinois and Pennsylvania. In May Curaleaf acquired Select, which will give the company its west coast market. Now with all three pieces of the puzzle-filled, Curaleaf is on course to challenge Acreage Holdings as the largest cannabis company in the country.

A few earnings were reported this week.

Organigram reported its third-quarter net revenue of $24.8 million but that fell sequentially by $2 million from the second-quarter net revenue of $26.9 million. The company blamed it on fewer reorders from British Columbia. The company also delivered a net loss of $10.2 million. The cost of cultivation increased sequentially as well as sending gross margins down. Organigram said it has gone back to its previous method of growing and is preparing for the edible and vape markets to launch in Canada later this year.

Valens GroWorks Corp. reported that its revenue increased to $8.8 million, a 296% increase over the first quarter of 2019. However, the net loss was a whopping $10.5 million.

Canopy Rivers Inc. reported its fourth quarter and year-end financial results for fiscal 2019. Operating income was C$6.08 million, down from C$19.5 million. Operating losses declined a great deal, but the company experienced a total comprehensive loss of $30.35 million for the year.

TILT Holdings Inc. said that it has signed a binding term sheet for a private placement of $125 million. The company said it would use part of that to retired a $20 million credit facility that had a fairly large interest rate of over 18%.

The Arcview Group announced that it has closed a $7.7 million Series A financing round. Leading the fundraise was Trivergance Investments in partnership with Cresco Capital Partners.

And finally, A decision by Israel’s Securities Authority last week opens the doors for cannabis companies from around the world to explore a public listing on the Tel Aviv Stock Exchange, even though recreational use is not legal in Israel.


Video StaffVideo StaffJuly 12, 2019

3min6510

Last week it was 4th of July, this week the industry celebrated Dab Day on July 7. Oil spelled looks like 710, see what they did there. Sales data shows that customers are happy to keep the party going.

CannTrust sent shockwaves through the industry after admitting the company grew plants in rooms that hadn’t received licenses. The licenses were pending and the company did eventually get the rooms approved, but the plants grown in those rooms were seized. Employees also lied to Health Canada officials. The company has since hired a compliance officer, but the stock took a beating on the news.

Rapper and husband to Beyonce, Jay-Z (Shawn Carter) signed a deal with California cannabis company Caliva. Jay-Z joins other rappers that have partnered up with cannabis companies. Carter announced online today that he will enter into a multi-year partnership with Caliva as Chief Brand Strategist. The statement said that he will play a crucial role in driving creative direction, outreach efforts, and strategy for the brand.

Green Growth Brands is buying Moxie Holdings in an all-stock deal valued at $280 million. Moxie is a California cannabis brand. Green Growth also announced that it is selling its CBD products in American Eagle stores.

Gotham Green ponied up another $30 million for MedMen bringing the company’s total commitment to the retailer to $280 million. So far $100 million of that has been funded.

KushCo announced quarterly net revenue of $41 million, but a net loss of $10.6 million. The company said it would focus on its big customers and customer financing opportunities in its future strategy. KushCo also filed to list at the NASDAQ citing Greenlane and Akerna’s successful bids to list at the exchange as a reason why they believe they will be successful.

In other earnings news, Radient Technologies reported an $18 million loss for its fiscal 2019 year. The company only made a little over $200,000 for the year.

Also this week, Bhang, known for its award-winning infused chocolates began trading on the CSE using the symbol BHNG.


Video StaffVideo StaffJune 28, 2019

4min2700

This week Governor Pritzker of Illinois signed HB 1438 legalizing adult use cannabis for people over the age of 21. This makes Illinois the 11th state to legalize recreational cannabis. It will also expunge the records of over 700,000 residents convicted of marijuana-related offenses.  The bill also includes a “social equity program,” which makes it easier for those with marijuana convictions to get business licenses. The program also allocates $12 million for startup businesses related to cannabis. 

The Flowr Corporation began a public offering of common shares for approximately C$125,000,000 this week sending the stock down in trading as shareholders showed their displeasure at the dilution. Flowr said that it intends to use the proceeds to fund part of its acquisition of Holigen Holdings.

Private cannabis company Surterra Wellness closed on a $100 million Series D funding round and the expansion of its Board of Directors.  Surterra plans to use the proceeds to fund strategic acquisitions and infrastructure capital expenditures. Participants in the round include existing and new investors, ultra-high net worth individuals and family investment offices, including former Patrón Spirits Company CEO, Ed Brown, who is also a new board member. Surterra also announced the acquisition of Molecular Infusions, a Boston-based biotechnology research and development company.

Green Growth continues its takeover of the mall as Abercrombie & Fitch said it would sell the Seventh Sense Botanical Therapy products in 160 stores. This follows a trial period that must’ve been successful if the company decided on a much bigger rollout. 

There were several small acquisitions this week. 

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

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

Vice Ventures said it had closed its first $25 million fund. Vice Ventures is an investment management company that focuses on developing early-stage companies in what it calls the “vice space.” the company was founded by Catharine Dockery who served as an early member of the digitally native vertical brands M&A team at Walmart (WMT), alongside Bonobos CEO Andy Dunn.

And finally, it is Pride month. We commend all those who have fought for the rights of the LGBTQ community. Love is love. Respect each other and embrace who you are because you are all beautiful people.


Video StaffVideo StaffJune 21, 2019

2min8520

New York State ended up not approving any adult use legalization. While some believed it might happen in the last minute, the bill was abandoned in favor of further decriminalization.

Akerna, the combination of MTech and MJ Freeway began trading this week on the Nasdaq using the symbol KERN. CEO Jessica Billingsley is the first woman to lead a Nasdaq traded cannabis company and this is the first compliance software company to get approved for listing at this exchange. The stock moved over 200% in its first day of trading.

Canopy Growth and Acreage Holdings shareholders approved of the company’s merger.  There had been some noise from a shareholder that it wouldn’t get approved at one point, prompting the company to state that there was no such problem and indeed there wasn’t. Full speed ahead for this mammoth merger.

MediPharm Labs said it plans to uplist at the Toronto Exchange and the company also closed on a $75 million bought deal.

Jushi Holdings acquired three unnamed dispensary permit holders for $63 million. Not dispensaries, just permit holders.

The Flowr Corporation signed for a $50 million credit facility.

Green Flower Media closed on a $20 million Series A Round.

CannTrust formed a joint venture with Elk Grove Farming Company to make its entry into the California and U.S. market

And Charlotte’s Web increased its hemp planting by 187% to meet demand. 


Video StaffVideo StaffJune 14, 2019

4min6320

Oregon passed an export bill but there are concerns that even if other states allowed this it’s just a way for the state to legally dump its oversupply of cannabis into other markets.

Harborside began trading this week on the CSE using the symbol HBOR. This company is led by a pioneer in the cannabis industry Steve D’Angelo and started one of the first dispensaries in California. The company commands a large market share in the state and plans on increasing that.

HEXO Corp reported its earnings late on Wednesday evening and no wonder, the sales of adult use and medical cannabis both fell sequentially from the second quarter to the third. The company has ambitious plans to double its revenue but right now it is going in the wrong direction.

In other poor earnings news, Neptune Wellness Solutions Inc. reported that its year-over-year revenue for the quarter declined from $7 million to $5.8 million. the Net loss increased from $4.8 million to a net loss of $12.4 million.

Cresco Labs was asked to provide more information regarding its Origin House acquisition to U.S. anti-trust authorities. The company is complying and doesn’t believe it will change the plans for the acquisition.

The beautiful and delicious Coda Signature chocolates raised $24 million in plans to expand the company.

Sparx Cannabis completed the Company’s Series A funding round with $10 million raised through private funding.

MJ Freeway raised another $2.2 million. The company is still on track to become a publicly traded company this summer. 

Tilray’s biggest shareholder Privateer Holdings will be releasing a large portion of the privately held Tilray shares. Many analysts have cited these privately held shares as a reason they won’t give a higher rating for the stock.  

Green Growth Brands has opened an astonishing 50 stores in four months in various malls and has plans to make that number 70 stores.

Jushi began trading on the NEO exchange in Canada using the symbol JUSH.


Video StaffVideo StaffMay 31, 2019

5min5150

Even though it was a shorted trading week due to the Memorial holiday, there were a lot of big earnings.

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) reported that revenue rose by 22% to $36.6 million in the third quarter. However, the company still reported a huge net loss of $63.1 million amid all of its legal troubles.

Acreage Holdings, Inc.  (ACRG-U.CN) (ACRGF) reported that its revenue rose 487% to $12.9 million, but the company also delivered a whopping net loss of $31.2 million. Looking at pro forma results, the revenue would have been $33.1 million and the adjusted net loss would have been $15.5 million. On the company’s conference call, Murphy said he wanted the company to become the “Proctor & Gamble of cannabis.” He highlighted the Form Factor acquisition saying it was a prudent use of shareholder money. Suggesting that other companies were paying high prices for fewer returns on their acquisitions.

Charlotte’s Web Holdings, Inc. (CSE:CWEB) (OTCQX:CWBHF) reported Q1 revenue growing 66% to $21.7 million. The net income dropped to $2.3 million from last year’s $3.1 million.

Origin House (CSE: OH) (OTCQX: ORHOF) said its Revenue for the first quarter was $11.2 million,

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported its financial results for the quarter ending March 31, 2019, in Canadian dollars. The company delivered revenues of $10.9 million versus last year’s $6.7 million for the same time period

Acquired Sales Corp. (OTC Pink: AQSP) signed a letter of intent to acquire 100%  Illinois-based Warrender Enterprise Inc. also known as Lifted Liquids for approximately $7.5 million in cash, plus 4,545,455 shares of Acquired Sales Corp.’s common stock.

MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) entered into an agreement with Scotiabank, in which the underwriters have agreed to purchase on a bought deal basis 10,815,000 common shares of the company at a price of $5.55 per Share for gross proceeds of $60 million

FLRish Inc. also known as Harborside, announced that it has closed an approximately C$19.65 million private placement of subscription receipts.

Cannabis Strategies Acquisition Corp. will now be known as AYR Strategies and began trading on the NEO Exchange in Canada under the symbols NEO: AYR.A.



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


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