Marijuana Money Archives - Green Market Report

Video StaffVideo StaffOctober 18, 2019

6min5150

Cannabis and Washington crossed paths again this week and not in the usual legislative way. Last week Green Market Report broke the news that two associates of President Trump and Mayor Guiliani who were arrested for campaign finance violations had their hands in the cannabis industry in Nevada. David Correia was arrested this week at a New York Airport. GMR also reported on the ties of already arrested Andrey Kukushkin to the California cannabis market. Kukushkin and Correia are supposed to go back to court on Thursday this week.  

Aphria Inc. (TSX: APHA)(NYSE: APHA) stock jumped over 16% to trade at approximately $5.10 in early trading after the company reported that its revenue increased 849% to $126.1 million for the first quarter with net income of $16.4 million.

Valens GroWorks Corp. (TSXV: VGW) (OTC: VGWCF)  reported its financial results for the third quarter of fiscal 2019 with revenue increasing 87.1% to $16.5 million and delivered net income of $5.9 million.

Cannabis tech company Flowhub has raised an oversubscribed $23 million Series A financing round led by e.ventures, Evolv Ventures — the venture fund backed by Kraft Heinz —  and Poseidon, with contributions from investors 9Yards Capital, former NBA commissioner David Stern and Iqram Magdon-Ismail, the co-founder and former CEO of Venmo, among others.

Orthogonal Thinker announced last month that it raised $2.5 million in capital. This funding completes approximately $4 million in seed capital raised to date, with more funding coming in. Orthogonal will use this financing to support intellectual property rights for plant-based psychoactive compounds. 

Private company Holistic Industries closed on $55 million in funding. The multi-state operator (MSO), which started on the East Coast and has rapidly expanded to the Midwest and West Coast, currently operates in California, Maryland, Massachusetts, Michigan, Pennsylvania, and Washington D.C.

Legion M is a fan-owned company. Its latest project is the Jay & Silent Bob Reboot movie from director Kevin Smith and it was screened this week as a Fathom Event. The dynamic duo head to Hollywood to stop a reboot of their movie. It contains lots of cannabis humor as well.  The movie was released along with the launch of Jay & Silent Bob’s Private Stash cannabis strains, which is available to buy in California with plans to expand to other states


Video StaffVideo StaffOctober 11, 2019

3min5660

This is your marijuana money minute for the week ending October 11 from the New West Media in San Francisco. Wow, what a crazy week to see things blow up and more carnage in the cannabis industry. 

Where to start?

MedMen announced it decided to terminate the deal with PharmaCann that had been valued at $684 million. MedMen said it wants to focus more on its California market and go deeper into its strengths. As a consolation prize, Medmen gets PharmaCann’s Illinois licenses as part of the termination fee. Of course, MedMen has been touting its proforma numbers with Pharmacann and so now those have to be dialed back.

Speaking of dialing back, HEXO Corp said that its previously projected revenues were a bit lofty. The company said it had to reduce its revenue estimates to a range of $46-$48 million for the year, significantly lower than the $400 million it said it would do in 2020. That stock got spanked hard.

The Green Organic Dutchman said that it was considering new financing to complete the construction of two of its facilities. The only problem with that is that on previous investment decks, TGOD claimed that their projects were fully funded. The company also says it has $50 million in cash. How much money d they possibly need if they are only weeks away from completion. The stock lost 40% of its value in 2 days. 

More divorce news.

Aleafia said it was no longer going to buy cannabis from Aphria saying Aphria failed to meet its supply obligations. Aphria seemed to toss it off and said they would still achieve net positive income for this past quarter. To make things more awkward, Aphria owns a lot of Aleafia stock.

And then finally, two Russian nationals were arrested for campaign finance violations this week and it turns out that they had applied for marijuana licenses in Nevada. They didn’t get them because they were late by 2 months.


Video StaffVideo StaffOctober 4, 2019
marijuanamoneyminute-1280x743.jpg

7min2660

Green Market Report thanks the ArcView Group for allowing us to tape Marijuana Money from their event this week. 

Constellation Brands (NYSE: STZ) wrote down its Canopy Brands (NYSE: CGC) investment to the tune of almost half a billion dollars. Constellation, which also owns Modelo beer and Robert Mondavi wines, said its share of equity losses from its roughly $4 billion investment came to $484.4 million. 

 Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC)  has completed an all-cash transaction to purchase a majority stake in sports nutrition company BioSteel Sports Nutrition Inc. The amount of the acquisition was not disclosed. The deal gives Canopy a significant entry into the sports nutrition and hydration category and lays the groundwork for cannabidiol (CBD) products to be sold in the U.S.

Venture capital firm Canopy Rivers Inc.  (TSX: RIV)(OTC: CNPOF) completed a $10 million investment ( in TerrAscend Canada Inc., a subsidiary of its portfolio company.

Gotham Green Partners has invested an additional $20 million in iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) through the purchase of senior secured convertible notes. Green Gotham said it was part of a broader $100 million financing plan to support the buildout of all existing markets in which iAnthus currently operatesTerrAscend Corp. 

TILT Holdings Inc.  (CSE: TILT) (OTCQB: TLLTF) has negotiated an agreement with six of its remaining founders regarding the immediate forfeiture of all 60,217,088 stock options granted at the time of the merger. Adjusting for the subsequent forfeiture, TILT’s Q2 2019 net loss of $48.9 million would have been almost entirely reduced, bringing the Company close to break-even.

Fire & Flower Holdings Corp. (TSX: FAF) its financial results for the second fiscal quarter ending August 3, 2019, with total revenue of $11.1 million versus $9.5 million for the same time period in 2018. The net loss for the quarter was $6.4 million.

High Tide Inc. (CSE:HITI) (OTCQB:HITIF) announced financial results for the third fiscal quarter of 2019 ending July 31. Revenue in the third quarter increased by 281%, to C$8 million from C$2 million last year. 

48North Cannabis Corp. (TSXV: NRTH) delivered net revenue of $4.8 million marking 48North’s first full year of revenue, but a net loss of $8.1 million. In fiscal 2019, the company raised over $48 million and at the end of the year had $52.7 million in cash and cash equivalents on hand.

Arizona-based DNA testing technology company PathogenDx, Inc. announced $7.5 million in Series B funding. 

And finally HeavenlyRx Ltd. Acquired CBD company PureKana. 


Video StaffVideo StaffSeptember 27, 2019

5min5810

On Tuesday, the U.S. House of Representatives approved the Secure and Fair Enforcement (SAFE) Banking Act 321-103. It was considered a historic event because this is the first standalone cannabis policy reform bill to ever reach a House floor vote. The legislation overwhelmingly passed with bipartisan approval.

The House of Representatives voted 321 to 103, representing 79% of the vote, in favor of HR 1595. The YES votes represented 99% of the Democratic majority caucus and 47% of the Republican minority caucus. The next step is for the Senate to pass a similar piece of legislation.

You can follow these moves on the Green Market Report for free. Just go to our menu tab titled Legislation.

At a press conference on Tuesday, Massachusetts Governor Baker said that he is banning all vaping products in the state until Jan 25, 2020. Across the country, consumers have reported vaping-related illnesses. 530 people said they have have been affected, and nine people have died. Massachusetts’ Department of Public Health said this month that all physicians must report any vaping-related pulmonary disease to the department, and the state is now tallying 61 possible cases.

GW Pharmaceuticals plc (Nasdaq: GWPH) announced that its flagship drug, Epidyolex, has been approved by the European Commission for use as adjunctive therapy of seizures associated with Lennox‑Gastaut syndrome (LGS) or Dravet syndrome, in conjunction with clobazam, for patients 2 years of age and older. The regulatory path is now clear for GW to start selling Epidyolex in European markets.

The cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology company Akerna Corp. (Nasdaq: KERN) (formerly known as MJ Freeway) reported total revenue of approximately $11 million for the year ending June 30, 2019, which was a 4.2% increase over last year’s $10.5.

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) told the market on Tuesday that it will achieve positive net income for the quarter ending September 30, 2019. The company also stated that it had $51 million in cash on hand.

Flow Capital Corp. (TSXV: FW) has commenced legal proceedings against Dionymed Brands Inc. (DYME) as DionyMed is in default under the company’s royalty agreement.  The claim is for the minimum sum of $2,698,116 

Jushi Holdings Inc. (NEO: JUSH.B; OTCQX: JUSHF)has qualified to trade on the OTCQX Best Market and began trading this week using the symbol “JUSHF.”


Video StaffVideo StaffSeptember 20, 2019

3min3340

This week Senator Mitch McConnell asked the FDA issue guidance on the sale of hemp CBD products. The FDA had been suggesting it could take 3-5 years to set up its rules and regulations, but the industry is pushing for a faster turnaround.

Shopify said this week that it will open up for CBD sales and has some payment processors that will work with CBD merchants.

Cannabis software delivery company Eaze is fighting back against the scandalous things that DionyMed has said about the company/ Eaze filed suit last week claiming DionyMed had breached its contract and had engaged in dirty tricks to try to steal Eaze’s business through its own platform called Chill. DionyMed has poached Eaze employees and created a similar product, except that Chill only accepts cash. DionyMed had a rough week, because, in addition to the Eaze suit, its stock was halted for trading as the company announced it had to restructure its debt and lost ts COO. The stock reopened after two days of not trading and plunged over 30%.

Cresco Labs is buying Tryke companies known for its Reef Dispensaries in Las Vegas, Phoenix, and Utah for $282 million. The acquired company is expected to generate $70 million in revenue per year.

iAnthus is expanding its footprint in Nevada with an acquisition of Sierra Well for roughly $27.6 million. Sierra Well has two dispensary locations and six licenses. The company has annualized revenue of approximately $16 million and positive net income.

Superstar John Legend teamed up with PLUS Products for the company’s hemp-derived CBD launch. PLUS just released three new products called Balance, Sleep and Uplift that can be purchased online.

Supreme cannabis company reported net revenue of $19 million for the fourth quarter a 90% increase sequentially and a 443% increase over last year.

Flower One sold its cultivation and production facility to Treehouse real estate for $20 million and will engage in leaseback situation with the company.

CannTrust had its license suspended. It was a combination of a partial suspension for cultivation and a full suspension for standard processing, medical sales, and drugs & research. You’ll recall the company ran into trouble this summer over growing plants in rooms that had no official license.


Video StaffVideo StaffSeptember 6, 2019

3min4460

Next week is the Green Market Report’s first Summit in Los Angeles. We’ll be doing a deep dive on the topic of cannabis branding. The number one selling product in California, PLUS products will be talking with CNBC’s Jane Wells, we’ll have singer Melissa Etheridge speaking about her company Etheridge Farms and on Day 2 Athletes for Care will be bringing several professional athletes who have started their own cannabis companies. You can still get tickets at www.greenmarketsummit.com.

Now on to the news,

Markets were closed on Monday to observe the Labor Day holiday.

Aurora Cannabis (ACB) sold off its remaining shares in The Green Organic Dutchman giving the company roughly $86 million. Aurora had a 50% internal rate of return for the investment. It no longer owns any shares, but still has over 16 million warrants to purchase more shares. TGOD also said this week that it received approval from Health Canada to expand operations in its new greenhouse in Hamilton Ontario.

Medicine Man Technologies, Inc. had a very busy week for acquisitions. The company is going to acquire Colorado Harvest Company which has two dispensaries in Denver and one in nearby Aurora. They are paying $4 million in cash and $8.5 million in Company stock. Then after they announced that, Medicine Man said it was buying four additional dispensaries in Colorado for $36 million. Still not done, it said it would buy five dispensaries operating under the Starbuds brand in Colorado paying $31 million for the group.

 Diego Pellicer bought a dispensary in Denver that did over $8 million in sales in 2018.

 GrowGeneration picked up Grand Rapids Hydroponics located in Michigan and now has four locations in the state.

WeedMD did a bought deal for 10,000 convertible debentures netting the company $10 million.


Video StaffVideo StaffAugust 30, 2019

2min4300

We have just two weeks to go until the Green Market Summit called The Economics of Branding in Los Angeles on Sept. 11-12. Go to www.greenmarket summit.com for tickets. You’ll see CNBC’s Jane Wells interview PLUS products CEO Jake Heimark talk about the importance of creating your brand, while singer Melissa Etheridge makes an appearance on a panel about celebrity branding. You won’t want to miss this deep dive conference.

Ok, moving on to the news. There were lots of earnings this week as we close out summer and from many of the major players in the industry. We’ll hit the highlights here.

Green Thumbs Industries of GTI said its second-quarter revenue increased 228% to $44.7 million and jumped 60% sequentially. GTI also closed this week on its purchase of NY cannabis company Fiorello Pharmaceuticals. Still, GTI delivered a net loss of $22.2 million versus a net loss of $9.7 million in the first quarter.

TILT Holdings delivered revenue of $39 million in its second-quarter but also reported a whopping net loss of $48.9 million.

Curaleaf Holdings reported revenue of $35.25 million in its second-quarter as its net loss came in at $24.5 million.

iAnthus delivered second-quarter revenues of $19.2 million, an increase of 100% as the company trimmed its net losses to $9.3 million from $16.5 million in the first quarter.

Slang Worldwide delivered second-quarter revenue that increased sequentially by 44% to $7.2 million better yet, Slang reported a net income of $17.5 million in the quarter versus a net loss of $13 million for 2018 as options valuations increased.

Tilray announced it was buying the Alberta dispensary chain Four20 in a deal valued at C$110 million. Four20 has 6 licensed retail stores and an additional 16 locations available.

Hound Labs raised $30 million for a dual-purpose breathalyzer that tests for alcohol and cannabis.

This weekend is Labor Day and markets will be closed on Monday. Everyone enjoy your three day weekend.


Video StaffVideo StaffAugust 23, 2019

3min4130

Just a heads up, our next conference is in Los Angeles September 11-12. It is called The Economics of Branding and it will do a deep dive into all the facets of branding in the cannabis industry. Go to www.greenmarketsummit.com for more details and to buy tickets.

The bad news just keeps coming for CannTrust. This week the company said that Ontario informed them that some of its products are “non-conforming” under the Master Cannabis Supply Agreement. It has opted to return the product valued at C$2.9 million. CannTrust did note that Health Canada has not ordered a recall of its products.

iAnthus secured a $50 million loan, which will be doled out in two tranches of $25 million each with similar terms. iAnthus said it will use the money for its expansion efforts in Florida and the company’s new Be. retail locations in NevadaNew Jersey and New York. The company is expected to report its second-quarter earnings on August 27.  Last month the company noted that its CBD For Life products will be sold in Dillards Department Stores.

BDS Analytics closed on a $7 million round of financing as did Helix BioPharma.

There were still some earnings coming out this week.

Cresco Labs reported that its revenue rose 253% to $29.9 million year over year and 42% sequentially. The net loss was $3.9 million with the blame going to tax items related to acquisitions.

TerrAscend reported second-quarter revenue of $17.6 million and raised guidance for the full year to $141 million from $135 million. Having said that the net loss jumped to $21 million from last year’s $5 million.

Indus Holdings reported second-quarter revenue rose 183% to $9.7 million over last year and a 51% jump over the first quarter.

ManifestSeven acquired the Haven dispensary in Santa Ana, while Acquired Sales is acquiring CBD Lion.

Some stock moves to cover for this week:

Organigram got approval from the Toronto Stock Exchange to begin trading this week and will keep the symbol OGI.

Cansortium began trading on the OTCQB with the symbol CNTMF along with Empower Clinics using the symbol EPWCF.

Valens GroWorks began trading on the OTCQX exchange this week with the ticker VGWCF.


Video StaffVideo StaffAugust 16, 2019

3min7580

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

3min7430

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.

 



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


READ MORE



Recent Tweets

@GreenMarketRpt – 16 hours

SXSW 2020: Descheduling Cannabis: Be Careful What You Wish via @sxsw

@GreenMarketRpt – 16 hours

Where will you be during ? We’re going to be on stage! Thanks for including us…

@GreenMarketRpt – 16 hours

RT : Super excited to finally announce my panel was approved by @t…

Back to Top

You have Successfully Subscribed!