Marijuana Money Archives - Green Market Report

Video StaffVideo StaffMarch 23, 2018


It is definitely earnings season as companies begin to report their numbers.

Terra Tech (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 was down to $3.11.

Full-year revenues for 2017  increased 41% to $35.80 million over 2016’s $25.33 million. But Terra Tech delivered a net loss of $32.68 for 2017, which was an increase over last year’s loss of $26.72 million.

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. as you know Aurora Cannabis is acquiring CanniMed.

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 lost 8 cents a share, compared to a loss of 17 cents in fiscal 2016. In addition to the chewing gum.

Two of the largest cannabis companies in the world are joining forces to form a first of its kind venture. On March 19, 2018, Cronos Group Inc. and MedMen announced that they have entered into an agreement to form a cross-border joint venture.

MedMen has 18 production facilities operating in 3 states and owns the largest dispensary chain in California, Most recently, Cronos became the first pure-play cannabis company to become listed on the NASDAQ Exchange (NDAQ).

Cronos also announced $100 million bought deal selling 10,420,000 shares at a price of $9.60 each. The money will be used for expansion, general working purposes, and new investment opportunities.

Online vaporizer site Greenlane formerly known as VapeWorld, acquired its competitor, VaporNation. Greenlane is now one of the world’s largest vaporizer distributors. With this recent acquisition, the company will expand its footprint to include eight US Cites, six automated distribution centers, and approximately 200 hundred employees.

Gene Simmons, best known for being the bassist and co-lead singer of the rock band Kiss and a reality TV star, is finally getting his own marijuana company – albeit with a catch. Invictus Md Strategies announced on Tuesday that Simmons will be the company’s Chief Evangelist Officer. And  the new ticker symbol is now GENE. The company’s previous ticker symbol was IMH.

Simmons owns a significant percentage of the company and will also make appearances for the company, specifically at the annual general meeting, investor meetings, trade shows, as well as serving as the company’s spokesperson.



Video StaffVideo StaffMarch 16, 2018


The online cannabis community Weedmaps is pushing back against demands from the California Bureau of Cannabis Control that the site quit displaying ads for unlicensed cannabis dispensaries. Earlier this year, the BCC chief said the website was in violation of marijuana law.

Weedmaps sent its own letter to the BCC stating that the bureau did not have the authority to regulate them as they are an “interactive computer service,” which is covered under the Communications Decency Act.

Earnings season is firing up.

San Diego-based Arena Pharmaceuticals, Inc. (ARNA) reported fourth quarter revenues of $15.4 million versus $69 million for the same time period last year. They also recorded a net loss of $13.7 million or $0.35 per share 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. Still, the stock popped on the news of an earnings beat.

General Cannabis (CANN) delivered a 19% decrease in losses for 2017 reporting $8.2 million in losses versus last year’s loss 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.

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.

High Hampton Holdings closed on a $19 million private placement deal this week.

CannaRoyalty (CNNRF) announced that it signed an agreement with a syndicate of underwriters, led by Canaccord Genuity Corp. for them to purchase, on a bought deal basis, an aggregate of 3,750,000 units of the company at a price of $4.00 per unit for aggregate gross proceeds of $15.0 million.

High Street Capital is now officially Acreage Holdings. This sleeper cannabis company is already in 11 states and is preparing to go public.

Aurora Cannabis announced that it would be added to the S&P/TSX Composite Index, effective on March 19, 2018.

Video StaffVideo StaffMarch 9, 2018


Insys Therapeutics (INSY) reported its fourth-quarter earnings. Revenue fell 42.6% to $31.5 million for a net loss of $47 million. Subsys sales continued to fall and the stock plunged 12% on light volume. In addition to those problems, the kickback scheme surrounding Subsys prescriptions continues to play out in the news. A Rhode Island doctor is expected to be sentenced on Friday after admitting he took money described as speaker fees but were actually payments to prescribe Subsys. Two patients nearly died from overdoses.

22nd Century Group (XXII) filed its 2017 annual report this week and in it said it had revenues of $16.6 million for 2017 versus annual revenues of $12.2 million in 2016. Net sales for the quarter were also the company’s highest at $5.9 million over last year’s $2.6 million for the same time period. Still, the company reported an operating loss of $13.3 million which was also higher than last year’s loss of $11.3 million. The company lost 11 cents per share versus last year’s loss of 12 cents per share.

Tikun Olam completed a $7 million deal and the Israeli company begins to get its science-based cannabis products into 10 different U.S. states.

Namaste Technologies (NXTTF) reported unaudited February sales of $1.3 million Canadian dollars representing a 146% over last year’s sales for the same month

Aurora Cannabis (ACBFF) completed its bid for CanniMed Therapeutics shares. The company will take up the tendered CanniMed shares and issue Aurora common stock and cash. The company also completed the $230 million bought deal. The company intends to use those proceeds to complete the CanniMed acquisition, plus it is putting some of the money towards the cost of a production facility in Denmark.

WeedMD and Phivida signed an agreement to form a joint venture focused on cannabis-infused beverages call CanBev. It will be produced in Canada and initially manufactured for the medical market with plans for the future adult-use market.

Video StaffVideo StaffMarch 2, 2018


Cronos Group has uplisted from the International Market Exchange at NASDAQ (NDAQ) to the Nasdaq Global Market. The new ticker will be CRON.

MedReleaf announced that it has entered into an agreement to acquire 1 million square feet of existing greenhouse infrastructure on a 669-acre property in Exeter, Ontario  and 95 acres of adjacent land for $21.5 million in cash and 225,083 common shares of MedReleaf

Friday Night Inc. (TGIFF) has acquired as a wholly owned subsidiary Spire Secure Logistics Inc. a Canadian private company specializing in security, intelligence, and compliance with international clients and expertise in both the regulated cannabis industry and other sectors. In addition to that Friday Night Inc. told investors that it had struck a letter of intent to acquire 100% of the Harvest Foundation – a cultivation facility, which lies next to Friday Night’s production subsidiary Alternative Medicine Association in Las Vegas, Nevada. Friday Night also terminated its plan to acquire Body & Mind. 

Namaste Technologies Inc. (NXTTF) announced that is has closed a previously announced “bought deal” for $40 million.

GW Pharmaceuticals plc (GWPH) has been granted orphan drug status by the European Medicines Agency (EMA) for the treatment of tuberous sclerosis (TS). The EMA orphan designation is a status assigned to a medicine intended for use against a rare condition allows a pharmaceutical company to benefit from incentives like reduced fees and protection from competition once the medicine is placed on the market.

MPX Bioceutical Corp. (MPXEF) reported its third-quarter earnings. Dispensary cannabis sales for the quarter ending December 31, 2017, were C$266,182 up 2% sequentially over the previous quarter ending September 31, C$271,405. Total revenues increased 2% for the same time period with sales in the recent quarter of C$4.5 million over the previous quarter revenues of C$4.4 million.

Cannabis testing company EVIO, Inc. (EVIO), announced that it expects to double the number of its cannabis testing laboratories from 9 to 18 in the coming year.



Video StaffVideo StaffFebruary 23, 2018


GW Pharmaceuticals (GWPH) hit a snag on Wednesday when the company reported that it failed a mid-stage study for one of its compounds. The results for a compound showed little difference between the drug and the placebo. This doesn’t affect the company’s priority drug Epidiolex which is still planned for a launch this year.

Media company Freedom Leaf (FRLF) reported its quarterly earnings. The company issued a press release saying it had filed the earnings but then didn’t give any financial information in the release. That’s usually a red flag and it was. The company reported revenues for the six months of $7,659 versus last year’s  $569,000. The company said that as of the end of December it had no cash and reported a net loss of $1.4 million for the last 6 months. The company has been issuing stock to pay for service.

Colorado-based General Cannabis Corp (CANN), announced its highest quarterly revenue results for the fourth quarter ending December 31, 2017, and paid down its long-term debt.

The company delivered approximately $990,000 in revenues for an increase of 27% over last year’s fourth quarter. Annual revenues increased 15% to $3.5 million versus last year’s $2.9 million. The company did not report whether it had a profit or loss for the quarter or the year. There was no formal filing for the earnings, only a press release.

Canopy Growth Corporation (TWMJF) announced today that it has received a license for its cultivation facility in Aldergrove, British Columbia. the site is set to become one of the largest cannabis cultivation facilities in the world.

The initial license will cover approximately 400,000 square feet of growing space, but it is expected to expand into 1.3 million square feet over the comings month in time for the flowering and harvest stage of cultivation.

Cannabis Strategic Ventures (NUGS), a Los Angeles based firm that offers outsourced personnel solutions to the cannabis industry, announced that it has entered into an agreement to acquire Pure Applied Sciences and its brand of organic and pure cannabis oils, PureOrganix.


Debra BorchardtDebra BorchardtFebruary 16, 2018


Valentine’s Day is now the fourth biggest holiday for dispensaries. Flowhub reported that sales in the weekend leading up to Valentine’s day increased 22% over last year’s weekend before the holiday. There are more and more products being created specifically for women as the end target, so consumers are shopping for less traditional gifts. Plus, it seems celebrating is being expanded beyond wine and champagne.

Canopy Growth (TWMJF) reported results for its fiscal year third quarter with revenue rising 123% to $21.7 million over last year’s $9.8 million. Net earnings were $11 million or one cent per share. Gross margins fell from last year as new subsidiaries are not yet cultivating or selling cannabis.

In terms of cost, the weighted average cost per gram to point of harvest fell by 18% to $0.59 per gram, making it the sixth consecutive quarter under $1 per gram. Likewise, the weighted average cost per gram before shipping and fulfillment also fell by 18% to just $1.03 per gram. Going forward, this will become the most important statistic for any cultivator.  

The company has approximately $400 million in cash on hand to fund domestic and global expansion.

MedReleaf (MEDFF) delivered mixed results for its third quarter as sales increased but so did the losses. The company reported sales of $11.4 million, an increase of 9% over last year and a sequential increase of 16%. Still, MedReleaf had a loss of $5 million over last year’s net income of $1.7 million.

Earnings also slipped as the adjusted EBITDA for the quarter was ($0.2) million, a decrease of $4.3 million from $4.1 million for the prior year period. The drop in earnings was attributed to “overhead costs to support the Bradford Facility; increased expenditures related to professional fees; business development; increased patient support costs to support patient demand; investments in sales, marketing, and brand development;

Not to worry, the company is sitting on a mountain of cash. Also, not to mention, this company gives a discount to veterans.

Six cannabis companies announced today that they have signed a letter of intent to provide the province of Quebec with cannabis. They include Aphria (APHQF), Canopy Growth, Hydropothecary (HYYDF), MedReleaf, Aurora Cannabis (ACBFF) and Tilray.

Kush Bottles (KSHB) got $6 million from Merida Capital as it looks to expand its east coast presence.

Sunniva Inc. (SNNVF) and SinglePoint (SING) were both upgraded from the pink sheets at the OTC Marketplace to the OTCQX exchange.


Debra BorchardtDebra BorchardtFebruary 9, 2018


Earlier this week, Treasury Secretary Mnuchin signaled that he wouldn’t remove the FinCEN memo about cannabis banking without something to replace it. When pressed whether this meant he was going to make a positive move regarding marijuana and banking, he was evasive. Yet he did note he didn’t like the idea of bags of cash and specifically noted that effect on the IRS. Bags of cash makes it hard to collect taxes and with all the spending getting approved in Washington, they will need all the additional money they can get.

Before you get too excited that the cannabis industry may finally get some good news from the federal government, the same day Attorney General Sessions continued to say how marijuana was bad and made sure to remind everyone that it is still illegal. Just another day in DC.

Aurora Cannabis (ABCFF) delivered a strong fiscal second quarter of earnings with revenues rising 201% and gross profits increasing a whopping 374%. The company attributed the good results to increasing patient counts, a higher average sales price for dried cannabis in Canada, exports to Germany and the consolidation of three companies. In addition to that, the average price of the product sold increased 40.3% over last year from $5.96 a gram to $8.36, mostly as a result of an increase in sales of cannabis oil in Germany.

Aurora also stated that the total product sold for the period was 1,161,809 grams of dried cannabis and cannabis oils rose 115.9% as compared to 538,045 grams of dried cannabis in the second quarter of 2017, and up 30.5% from 889,965 grams in Q1 2018.

GW Pharmaceuticals (GWPH) also delivered its earnings this week. First, revenue for the first quarter rose 203% to $7.7 million beating estimates by $5.4 million and topping last year’s revenue for the same period. However, losses increased to $63.3 million or 47 million pounds, higher than last years 15.6 million pounds. The earnings per share for the quarter were -$2.44 a miss of 31 cents. The company also announced that the European Medicines Agency (EMA) has decided to accept for review a marketing application seeking approval for Epidiolex.

Canopy Growth (TWMJF) closed on its $200 million bought deal. A total of 5,800,000 common shares in the capital of Canopy Growth were sold at a price of $34.60 per share, for aggregate gross proceeds of $200,680,000. The stock was trading in the low $30’s in January, but later slipped to down to $19 and change on February 2 as cannabis stocks all seemed to correct. It was lately trading in the low $20’s.

In private company news….

A lawsuit was filed against cannabis cryptocurrency company Paragon Coin. The investor, who paid in bitcoins is upset that Paragon’s investments that made millions somehow didn’t include the money from the Paragon ICO that he invested in. They used the money raised to buy real estate. He’s upset. He wants his bitcoins back. The investor is complaining that the financial instrument wasn’t a registered security, however, the SEC hasn’t registered any cryptocurrency products at all.

VividGro lighting company acquired the community app WeGrow.

Video StaffVideo StaffFebruary 2, 2018


San Francisco’s district attorney has decided to immediately dismiss all marijuana misdemeanor convictions dating back to 1975. The city said it will review all felony cases and where appropriate drop them to misdemeanors. Convicted persons must petition the court if they want to have the arrest expunged from their records.

The DA really zeroed in on the racial disparity in arrests. Only 7.8% of the residents in San Francisco were African American during this period, yet accounted for 41% of the arrests between 1999 and 2000. Even when arrests declined in 2011, African Americans accounted for 50% of the arrests.

High Times Holding Corporation (OACQ) filed for a stock offering pricing shares at $11 and hoping to raise between $5 million and $50 million. The company has incurred a mountain of debt during its acquisition and is hoping to push its looming August debt payment out a few years. The company also needs to raise at least $17.2 million to satisfy the Nasdaq to remain listed on the exchange.

Insys Therapeutics (INSY) stock tumbled after the New York Attorney General filed a lawsuit seeking at least $75 million from the company, which he said deceptively promoted a fentanyl-based cancer pain medicine for unsafe uses. “New York Attorney General Eric Schneiderman alleged that the Chandler, Arizona-based drugmaker recklessly marketed its product Subsys for wider uses than the U.S. Food and Drug Administration approved and bribed doctors to prescribe it,” Insys said its Subsys prescriptions were a minuscule amount for the market and it shouldn’t be lumped into the opioid crisis.

MassRoots (MSRT) held a conference call on Thursday saying the company had raised $4.75 million and was down to five employees and a $200,000 a month burn rate. CEO Isaac Dietrich said he expects the company to become cash flow positive this year.

Hemp Americana (HMPQ) got a skull and crossbones designation from the OTC Marketplace questions some stock trades. Just be careful here, Its very hard for companies to recover when this happens. With regards to the trading, while the company says it knows nothing about odd trading activity, it has paid $71,000 to OTC Tip Reporter and $71,000 to Stock Prophet to promote the company through the end of 2017. Buzz Stocks was also paid $71,000 for the same time period. In addition to these outlets, was compensated $20,000 cash via bank wire by a third party, Awarness Consulting Network LLC for a one-day HempAmericana Inc. promotion.

iAnthus Capital (ITHUF) closed its acquisition of Citiva Medical and Citiva USA for approximately $18 million. Citiva holds one of the New York state licenses and has plans for dispensaries in Brooklyn, Staten Island, Dutchess county and Chemung County. Brooklyn is set to open in the fourth quarter. While the New York market remains very restrictive, many companies like iAnthus and MedMen are planting their flags on the ground and marking their territory for when recreational marijuana becomes legal.

Organigram Holdings Inc. (OGRMF) reported its highest quarterly net sales to date in its earnings results for the fiscal first quarter ending November 30, 2017. Net sales rose to $2.7 million in Q1-2018 an increase sequentially over the fourth quarter’s $2.1 million and beating last year’s $2.2 million for the same time period. Still, Organigram delivered a net loss and comprehensive loss of $1.4 million for Q1-2018 trimming the losses from the previous quarter of $2 million in Q4-2017, but more than last year’s loss of $0.8 million.

ABCann (ABCCF) announced a $70 million bought deal. The proceeds from the agreement will go towards construction and development at the company’s Vanluven facility and planned Kimmett facility, general working capital, corporate development, and product development.

On Jan. 31, 2018, GCH Inc., a Colorado-based firm founded by Willie Nelson and parent company of Nelson’s premium cannabis brand Willie’s Reserve, announced that it had raised $12 million to fund its state-by-state expansion.

Debra BorchardtDebra BorchardtJanuary 26, 2018


Aurora Cannabis and CanniMed Therapeutics finally agreed to the previously hostile takeover saying that they’ve now agreed on friendly terms. In a deal valued at $1 billion, Aurora is paying $43 a share for  CanniMed, which is even more than the previously agreed upon $24 a share. Neither company is buying Newstrike Resources, which had gotten dragged into the deal when CanniMed said it would buy them in order to get rid of Aurora. Spurned Newstrike will get $9 million bucks for its trouble.

High Times Corp. filed for an offering to raise between $5 million and $50 million. The company also said it was trying to address its upcoming debt payments. The company must raise $17.2 million in order to remain listed on the NASDAQ exchange. High Times also has a debt payment of over $11 million due this August. The company’s merger with Origo Acquisition (OACQ) still has not closed and has only until March 2018 to be completed. High Times report a net loss last year but hopes to return to profitability this year.

MedMen announced that it was planning a reverse takeover in order to become a publicly traded company on the Canadian Exchange. The goal is for MedMen to become a public company during the second quarter.

GW Pharmaceuticals (GWPH) got one step closer to getting its epilepsy drug into the marketplace. The British Biotech company published positive phase three results in The Lancet publication. The company has already filed for an NDA and has a PDUFA goal set for the end of June. It looks like Epidiolex could be available for commercial sales sometime this year.

Privateer Holdings announced it had raised $100 million.

Premium cannabis company Canndescent raised $10 million.

True Leaf Medicine also said that it raised $10 million through a RegA+ offering.

And the MJIC Marijuana Index added seven new companies to its Canadian Index.

Video StaffVideo StaffJanuary 19, 2018


This is Marijuana Money for the week ending January 19, 2018, covering the top financial news headlines in the cannabis industry.

Colorado reported that medical marijuana sales fell 2% in 2017 as consumers made the switch to recreational marijuana. Initially, medical sales had only slowed when adult use was made legal, but now the data shows they are actually declining.Medical marijuana sales were down year-over-year to $420 million in the full year 2017 versus $430 million in 2016 ’16. Recreational marijuana sales increased 30% year over year to $1.074 billion.

Even though the trading week was shortened with a holiday on Monday as U.S. markets were closed for Martin Luther King Day, several big deals have been announced.

Canopy Growth (TWMJF) announced a $175 million bought deal led by GMP Securities and BMO Capital Markets. The deal is expected to close on February 7 and the proceeds will be used for expansion and working capital. The offering is expected to close on Feb. 7, 2018. This latest deal comes on the heels of a two year agreement between Canopy and the Canadian provincial government of Prince Edward Island, in which the company will provide the province with a minimum of one million grams of cannabis for at least the first year.

The Green Organic Dutchman raised $112 million including $55 million from Aurora Cannabis (ACBFF). The company also said it expects to go public at some time in March.

Aphria (APHQF) acquired Broken Coast Cannabis in a deal valued at 230 million Canadian dollars. Aphria also signed a supply agreement with Australian based Althea company which will increase their presence in Australia.

Kush Bottles (KHSB) reported that its revenue rose 258% in the fiscal first quarter to $8.85 million. The company also delivered net income of $94,000 versus last year’s loss of $161,000. Gross profits also rose to $2.6 million over last year’s $834,000. Gross margins fell from 34% to 30% as business increased in the lower margin vaporizer category. The company acquired CMP Wellness which generated strong vaporizer sales, but at the cost of lower margins.

And finally, Organigram (OGRMF) and Canopy Growth both signed deals to supply Canada’s Prince Edward Island with cannabis.

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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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