Marijuana Money Archives - Green Market Report

Video StaffJanuary 14, 2022

5min4810

Tilray, Inc.  (Nasdaq: TLRY) stock jumped this week when the company turned in a solid earnings report for the second fiscal quarter with revenue increasing approximately 20% to $155 million versus last year’s $129 million. 

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) delivered its results for the first fiscal quarter with revenue increasing 57% to $30.4 million, from $19.3 million for last year. Organigram also trimmed its net loss to $1.3 million, versus last year’s net loss of $34.3 million. 

Hydroponic chain GrowGeneration Corp. (NASDAQ: GRWG) announced revised full-year 2021 revenue expectations of $420 million to $422 million, versus $193 million for 2020, an increase of 118%.  The important news though was that same stores sales are expected to decline in the fourth quarter by 12.3%. This follows other hydroponic companies like Hydrofarm and Scotts Miracle-Gro that also warned of slowing sales.

Leafly Holdings Inc. and cannabis SPAC Merida Merger Corp. I (NASDAQ: MCMJ)  announced that it has entered into a $30 million convertible note agreement, but more importantly, Merida has postponed the member vote on the SPAC which had originally planned to close at the end of December.  

Halo Collective Inc. (NEO: HALO) (OTCQB: HCANF) announced that it is expanding into the functional beverage market with an acquisition of H2C Beverages in a deal valued at $30 million. It brings to Halo the Halo’s H2C and Hushrooms branded products. 

Private companies were all over the news this week with several announcing fund raising rounds. 

Cannabis industry hiring platform Vangst has completed a $19 million Series B financing. Vangst said it plans to use the money to expand its platform into new markets to support the influx of jobs. Vangst also said it will use this infusion of capital to launch products that support both cannabis businesses and employees, including training and employee payment solutions. 

Michigan-based Viola Brands announced the closing of a $13 million equity funding round. The company said this latest round of funding will allow it to expand into several key new markets, including Pennsylvania, Illinois, New Jersey, and Maryland,

Female-owned Garden Society has raised more than $7 million in Series A funding. The funding was led by RJ Primo LLC and the proceeds will be used to scale product offerings, modernize manufacturing, and further expand its team to meet the growing demand throughout California, as well as to expand into other states in 2022.


Video StaffJanuary 7, 2022

5min8070

Happy New Year everyone. We took a small break as the news cycle died down at the end of 2021, but we are back and ready to crush 2022.

This week Emerald Holding (NYSE:EEX) said it is buying MJBiz in a deal valued at $120 million. In 2021, MJBiz’s revenues were approximately $27 million and its EBITDA was $13.7 million. MJBizCon is a top trade show in the cannabis industry having featured more than 1,200 exhibiting companies. While the company boasted over 18,000 paid registrations, at the October 2021 event, it was a big drop from the company’s last pre-pandemic event. 

The Scotts Miracle-Gro Company (NYSE: SMG) announced two acquisitions, but at the same time warned that sales in its hydroponic division Hawthorne were expected to drop by 40% for the fiscal first quarter that ends at the end of January. Scotts said the decline in sales was caused by a slowdown in the cannabis market as well as supply chain disruptions that have delayed the sale of certain product lines. 

MedMen (OTCQX: MMNFF) is still refusing to close its agreed-upon deal with Ascend Wellness (CSE: AAWH.U) (OTCQX: AAWH) for the properties in New York. The investment, which was agreed upon in March 2021, was dependent upon New York State’s approval, which the Office of Cannabis Management of the Cannabis Control Board of the State of New York gave on December 16, 2021. MedMen is trying to kill the deal saying it didn’t get NY’s approval in time, but Ascend is saying that isn’t the case. Ascend is also accusing MedMen of not remaining compliant with NY state’s cannabis regulations.   

Headset is predicting in a new report that the total annual U. S. cannabis market has the potential to reach $45.8 billion by 2025. Despite its current challenges, California is expected to remain the number one market. Headset is projecting that the state’s market will reach $7.7 billion in just three years. Even though New York is a medical-only state at this time, adult-use sales could begin in 2023. Headset is forecasting the market to become the third-largest in the country with sales of $2.86 billion. 

And finally, now that the holiday season has wrapped up, various data companies have finally had a chance to measure the results. Headset said that its data showed that Canada saw a rise in sales of more than 26% while the US saw an increase of 17% during the holiday month. Springbig reported that starting from a week before Christmas and going into New Year’s Day, it saw (excluding Christmas day) $276 million in total sales with a daily average gross of $20.82mm. This year the data providers said that sales were spread out over the month versus just right at the specific holiday date. 

 


Video StaffDecember 17, 2021

3min9240

It was a rough week for some cannabis companies. News that Visa (NYSE: V) could begin cracking down on the way many cannabis customers use their debit cards to make a purchase and the change could have a devastating effect on the cannabis industry. The company sent out a memo warning that cashless ATM transactions were prohibited. 

 

Cannabis leaders had a tough week as well. 

 

Charlotte’s Web made sweeping changes in its C-suite. CEO Deanie Elsner was out of a job and a former Bacardi executive Jacques Tortoroli was named the new CEO. Jared Stanley, Charlotte’s Web Co-founder and Chief Cultivation Officer, will assume an expanded role as Chief Cultivation and Innovation Office and the CFO has seen his duties expanded. 

 

Turning Point Brands also named a new CEO Yavor Efremov replacing the Company’s current CEO, Larry Wexler. 

 

Hexo Corp. (TSX: HEXO; NASDAQ: HEXO)  reported its revenue rising 29% sequentially to $50.2 million. Hexo also reported a total net loss of $116 million and warned that it was a going concern saying that “existing funds on hand, when combined with operational cash flow, would not be sufficient to fund the potential Senior Secured Convertible Note redemption payments.

 

Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWD) announced its revenue rising 37% to $45.4 million. One cautionary note was that Fire & Flower reported that same-store sales decreased 27% for fifty-four (54) stores in operation during the quarter due to increased competition as the surge in newly licensed retail cannabis stores continues across Canada. 

 

Also this week, companies seemed to wrap up some debt issues. Glass House Brands was approved for a $100 million debt deal and Curaleaf  received commitments for a private placement of 8.0% Senior Secured Notes due 2026 for aggregate gross proceeds of $425 million.  It’s the largest single debt financing of any publicly-traded US cannabis company in history and at a rate that is also one of the lowest seen within the industry. 

 

And that’s it for this week. This will be the last marijuana moment video for 2021. Have a happy holiday everyone and we’ll see you in 2022. 


Video StaffDecember 10, 2021

5min9590

In Congress, a new version the National Defense Authorization Act (NDAA) did not include cannabis banking reform. Senator Schumer has insisted on focusing full marijuana reform instead of tackling safe banking. Rep. Perlmutter filed an amendment in committee to attach the marijuana language to the legislation— but he ultimately didn’t insist on a vote.

 

This week included National Brownie Day and what better way to celebrate than creating the world’s largest edible – an infused brownie. MariMed, Inc. (OTCQX: MRMD) unveiled the world’s largest cannabis-infused brownie in celebration of the launch of its new brand Bubby’s Baked and National Brownie Day and the news went crazy – even landing on the Jimmy Kimmel show. 

 

There were a few acquisitions this week to discuss:

 

Tilray, Inc. (NASDAQ: TLRY) is buying Breckenridge Distillery, a leading distilled spirits platform located in Breckenridge, Colorado that is widely known for its award-winning bourbon whiskey collection and innovative craft spirits portfolio. Tilray didn’t disclose the price it paid for the company but it did say that the acquisition will be immediately accretive to EBITDA. 

 

Agrify Corporation (Nasdaq: AGFY) is buying extraction company PurePressure for $9 million. PurePressure engages in solventless extraction and advanced ice water hash processing in the cannabis and hemp industry. 

 

Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF)  is buying Pineapple Express Delivery Inc., Canada’s largest delivery and logistics company serving the cannabis sector in a deal valued at $5.3 million

 

In money moves, Schwazze (OTCQX:SHWZ) has entered into a securities purchase agreement for $95 million of principal amount and $93 million of funding amount of convertible notes. High Tide Inc.  (TSXV: HITI) (NASDAQ: HITI) announced that it was going to issue up to C$40 million (or the equivalent in U.S. dollars) of common shares at the company’s discretion and subject to regulatory requirements.

 

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) reported total revenue of $6.5 million for the fourth fiscal quarter. The company also delivered a net income of $1.1 million, an increase of $5.0 million from a net loss of $3.9 million in the fourth quarter of 2020. 

 

And finally Chicago Atlantic Real Estate Finance, Inc., priced its common stock at a public offering price of $16.00 per share. Shares began trading on The NASDAQ Global Market using the symbol “REFI.” 


Video StaffDecember 3, 2021

6min12380

Green Wednesday 2021 was a big one for the cannabis industry, while Black Friday fizzled in comparison. Green Wednesday saw cannabis sales increase across the U.S. Black Friday did not have the sales growth seen in previous years, though some data (Flowhub) showed larger order values and bigger discounts than Green Wednesday. 

 Harborside Inc.  (CSE: HBOR), (OTCQX: HBORF) announced it was buying California retailer UL Holdings Inc. also known as Urbn Leaf and  Loudpack. Loudpack is a manufacturer, cultivator and distributor of award-winning cannabis brands in California.  The newly combined company will be renamed StateHouse Holdings. The company said that it expects to trade the new company on the Canadian Securities Exchange under a new symbol (CSE: STHZ) and the deal is expected to close in the first half of 2022. In addition to announcing the big transaction, Harborside also delivered some sobering news to investors. The company said it was withdrawing its previous revenue guidance for 2021 and said it would revisit the forecast after the deal closes. A variety of reasons were given including a decline in wholesale pricing for bulk products in the California market and a decline in retail revenue which was primarily due to a decrease in retail store foot traffic.  

Red White & Bloom Brands Inc. (OTCQX: RWBYF) reported third quarter revenue increasing 93% to C$11.8 million and a net loss of C$5.5 million, RWB though is still facing a huge debt problem that it warned investors about last quarter. The company said this time that it is in advanced discussions with a number of funds to restructure the current debt of $115 million due in 2022 into a more advantageous long-term debt solution. 

Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF) announced third-quarter revenue increased 9% to $15.6 million compared to $14.3 million. The company is revising its 2021 outlook for revenue and now expects it to range between $63-$66 million.

Gage Growth Corp.  (CSE: GAGE) (OTCQX: GAEGF) reported its third-quarter revenue rose to $27.2 million and the company had a net loss of $3.7 million. Gage said it is in active discussions with multiple retail operators in Michigan to potentially acquire over 10 retail locations in the coming months. 

Chicago Atlantic Real Estate Finance, Inc. is a newly formed commercial real estate finance company or REIT. The current portfolio is mostly first mortgage loans to state-licensed operators in the cannabis industry. The company expects the IPO to be priced between $16.00 and $18.00 per share and could raise as much as $129 million. It has applied to list the common stock on the Nasdaq Global Market under the symbol “REFI”.

The newest cannabis SPAC (special purpose acquisition corp.) Canna-Global Acquisition Corp. (NASDAQ: CNGLU) priced its initial public offering of $200 million and began trading on the Nasdaq Global Market on Tuesday using the ticker symbol “CNGLU”. The SPAC said it has not selected a business combination target 

Emerald Health Therapeutics, Inc. (CSE: EMH) (OTCQX: EMHTF) announced that it is leaving the cannabis industry and pivoting to a pharmaceutical development focus. Emerald said it is looking for buyers for its cannabis assets to further strengthen its already strong capital position.

 

 

 


Video StaffNovember 19, 2021

5min10820

We are still in the thick of earnings season and with so many companies delivering their numbers this week, we can only hit the notable ones here. 

Trulieve Cannabis Corp.  (CSE: TRUL) (OTCQX: TCNNF) announced that its third-quarter revenue increased 64% year-over-year to $224.1 million, beating estimates by $2 million.

TPCO Holding Corp. also known as The Parent Company (NEO: GRAM.U) (OTCQX: GRAMF) announced its financial numbers for the third quarter with an eye-popping charge of $570 million. The Parent Company’s revenue for the quarter was $39.7 million.

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its results for the third quarter with revenues of $207 million, which increased over the second quarter’s revenue of $199 million.

TILT Holdings Inc. (NEO:TILT) (OTCQX: TLLTF) reaffirmed guidance of $205-$210 Million For 2021 and reported its revenue increasing 37% to $53.4 million driven by growth in both cannabis and inhalation and accessory revenue. 

TerrAscend Corp.  (CSE: TER) (OTCQX: TRSSF) reported that its third quarter revenues dropped by 16% sequentially to $49.1 million from the second quarter’s $58.7 million. However, it was better than 2020’s third-quarter revenue of $38.1 million.

Jushi Holdings Inc.  (CSE: JUSH) (OTCQX: JUSHF) announced its financial results with total revenue rising 13.1 sequentially to $54.0 million, and an increase of 116.7% over last year. 

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) announced its total revenues were $25.9 million, topping last year’s $12 million for the same time period for a gain of 70%. However, the company experienced a 4% sequential drop in sales from the second quarter. 

SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) announced the departure of several top executives and a new financing deal with Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF). The company’s CEO Chris Driessen resigned and the board chair Peter Miller stepped aside. Several other board members left as the company git $17 million in financing from Trulieve. 

It looks as if the MedMen Enterprises Inc. (OTC: MMNFF)  trial is coming to a close. According to Law360, the lawyers for the company’s former Chief Financial Officer James Parker attorney gave his closing arguments on Tuesday. Parker claims he is owed up to $24.89 million due to his employment contract, while MedMen believes the contract isn’t enforceable because Parker negotiated it himself. 

And finally this week, Republican lawmakers filed a bill today that would federally legalize and tax cannabis, the States Reform Act. Rep. Nancy Mae (R-SC) is sponsoring the bill which lowers the tax level from the Schumer legislation, which hasn’t been filed but also excludes any social equity component. 


Video StaffNovember 12, 2021

4min10530

It was Veterans Day this week and we salute all those who served. Markets remained open for the holiday. 

We are in the thick of earnings season with almost 20 different cannabis companies reporting third-quarter earnings this week. 

But before we cover some of the top names cannabis retail tech firm Springbig announced it was going public through the Tuatara SPAC. The post transaction valuation is listed as $500 million and it is being suggested the company will have $200 million in cash after the closing. It is worth noting that springbig is only on track to report $24 million in revenue in 2021. 

Curaleaf Holdings, Inc. (OTCQX: CURLF) is buying western state operator Tryke Companies known for its Reef Dispensaries in a deal valued at approximately $286 million. The acquisition is expected to close in the second half of 2021. Curaleaf said it will be immediately accretive. Tryke is expected to deliver nearly $110 million in full year 2021 revenue.

Turning in one of the best earnings reports this week was Green Thumb Industries Inc. (GTI)  (CSE: GTII) (OTCQX: GTBIF)  Third quarter revenue at Green Thumb increased 48.7% to $233.7 million. GTI’s same-store sales growth was 14% on a base of 48 stores, driven primarily by increased transactions. 

GrowGeneration Corp. (NASDAQ: GRWG) reported third-quarter 2021 revenues of $116.0 million and the company said it is on track for full year revenue of $435 to $440 million in 2021.”  GrowGen also delivered a net income of $4.0 million.

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced its revenue grew 2.6% sequentially to $215.5 million, and an increase of 40.6% year-over-year. Still, Cresco recorded a non-cash impairment charge of $291 million in the quarter as a result of the strategic shift in California operations. That resulted in a net loss for the quarter of $263 million. Cresco reaffirmed its guidance for revenue in the fourth quarter between $235 million and $245 million.

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), announced its results for the first quarter of 2022 and total cannabis net revenue was $60.1 million, a 10% sequential increase from the prior quarter. Still, the revenue missed estimates and the company also reported a net loss of $12 million. 

As a reminder the weekly newsletter will go out Monday morning with a run down of what to look for during the week.


Video StaffSeptember 24, 2021

4min21713

First big news. Green Market Report is being acquired by Crain Communications. We are excited to join the team and expect to grow and expand. I will continue as Executive Editor and we will keep bringing you the quality journalism you’ve come to expect.

And speaking of acquisitions Michigan-based SKYMINT, is buying 3Fifteen Cannabis and also closing its $70 million Senior Secured Term Loan from Tropics LP, an affiliate of SunStream Bancorp, a joint venture sponsored by Sundial Growers and its $8 million equity investment from Merida Capital Holdings. The acquisition will bring Skymint’s workforce to 730 employees and a combined retail portfolio of 27 locations totaling 101,000 square feet, with an additional 18+in the 2021-2022 pipeline.

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) paid $1.35 million for a property in Missouri and entered into a long-term lease with CPC of Missouri – Smithville, LLC (CPC), a subsidiary of Calyx Peak, Inc. (Calyx). CPC is expected to construct approximately 83,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $26.72 million. 

Stem Holdings, Inc., also known as Driven by Stem (OTCQX: STMH) (CSE: STEM), is buying an Oregon-based extraction company called Artifact Extracts and two dispensaries. The deal is valued at $2.9 million 

The (SEC)  filed charges against three individuals and one issuer on a crowdfunding scheme for two cannabis companies that raised $2 million. The money was supposed to be used to buy and invest in cannabis properties, but no money was ever used for those purposes. Instead, the money was siphoned off for personal use. In addition to that, the SEC also charged the registered crowdfunding portal, TruCrowd, and its CEO Vincent Petrescu, who placed the offerings on the portal’s platform.

This week Stifel analysts issued a huge report updating investors on their outlook for the cannabis industry. The group lowered estimates and price targets on several companies. They also noted they have a negative outlook on the Canadian cannabis industry and Canopy Growth in particular. With regards to the U.S. market, the analysts don’t believe the current administration will change the legality of the industry but believe this is actually a positive thing.


Video StaffSeptember 17, 2021

4min23131

On Tuesday, the Food & Drug Administration (FDA) issued a warning about Delta-8 THC noting that the product hasn’t been evaluated or approved by the agency. Granted the FDA’s opinion on anything cannabis-related is received with a healthy dose of skepticism. The FDA still hasn’t made any determination on CBD after years of discussion and research. The notice described 22 hospitalizations from side effects, while the Poison Control Center reported over 600 cases. 

It’s a sign of how difficult it is to be a CBD-only company. This week Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) filed for the Canadian version of bankruptcy. According to Plus’ filing, it has secured court protection from its creditors under the Companies Creditors Arrangement Act or “CCAA”, in order to restructure its business and financial affairs. Plus Products has canceled its Annual General Meeting previously scheduled for September 14, 2021.

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its previously announced acquisition of Massachusetts-based Nature’s Remedy in a deal valued at $91.2 million. Jushi also noted that the deal was revised resulting in 4.3 million fewer shares issued to Nature’s Remedy.

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced that revenue for the fiscal 2nd quarter rose 51.4% to $43.3 million over last year’s $28.6 million. Fire & Flower delivered a net income of $19 million versus last year’s net loss of $29 million.

High Tide Inc. (NASDAQ: HITI) reported its revenue increased by 99% to $48.1 million for the third fiscal quarter versus $24.1 million in the same quarter last year.

In acquisitions this week,

Acreage Holdings, Inc. (OTC: ACRHF, ACRDF) is selling its four Oregon dispensaries to Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF).  The deal is valued at $6.5 million. Acreage’s four Oregon retail dispensaries are branded as Cannabliss and the sale will end the company’s presence in the state. The company said in a statement that the Oregon stores were negatively affecting the company’s bottom line.

WM Technology, Inc., better known as Weedmaps  (Nasdaq: MAPS) is buying Sprout, a leading, cloud-based CRM & marketing platform for the cannabis industry. Weedmaps did not disclose the valuation of the deal. 

Akerna (Nasdaq: KERN) is buying 365 Cannabis, a cannabis business management software system built on Microsoft’s Dynamics 365 Business Central in a $17 million deal at 2.1x LTM revenue. 


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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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