Marijuana Money Archives - Green Market Report

Video StaffVideo StaffAugust 17, 2018

4min1330

Buy your tickets now for the Green Market Summit to be held on Sept. 14 in NYC. Go to www.greenmarketsummit.com for details.

The big news this week was the $5 billion investment by alcohol company Constellation Brands (STZ) into Canopy Growth (CGC). Constellation made an earlier investment in the company late last year and this recent move brings its total ownership up to 38%. Constellation also paid a premium for its shares. Canopy plans to use the money for strategic expansion into other countries.

That wasn’t the only big deal this week.

The longtime Bay Area Harborside dispensary which is actually a company called FLRish Inc. is entering into a binding letter agreement with  Lineage Grow Company Ltd.  (CSE:BUDD) for a reverse takeover in a deal valued at C$200 million. Lineage will acquire all of the outstanding shares of Harborside in exchange for newly issued shares of Lineage.

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

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

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

The Green Organic Dutchman (TGODF) reported its quarterly results that demonstrate the company is still in a phase of ramping up as there are no sales to report as of yet. The net loss for the quarter ending June 30, 2018, was C$8.5 million or C$0.04 per share versus last year’s C$2.3 million loss or C$0.02 per share.

MedMen (MMNFF) reported its unaudited fiscal fourth-quarter sales of $19 million. The sales come from 7 locations in Southern California and do not include the newest store in Abbot Kinney or the store that was just opened in Las Vegas. The company said it would release its full-year audited results in October.

Cowen Research initiated coverage on Tilray Inc. with an Outperform rating and a $34 price target.

Stifel initiated a buy rating on GW Pharmaceuticals (GWPH) and $181 (36% upside) price target citing bullish prospects for Epidiolex.


Video StaffVideo StaffAugust 10, 2018

3min2510

It was a busy week for earnings and most of them came from the biotech side of the industry.

GW Pharmaceuticals reported that its revenue rose 34.6% to $3.5 million and its net loss fell 31.7% to $35.7 million. The company also said it was gearing up for the launch of its drug Epidiolex, which was approved by the FDA by hiring more people. GW also continued to state that it expects cannabis to be rescheduled as a result of the FDA approval.

Insys Therapeutics Inc. (INSY) delivered its second-quarter numbers on Wednesday missing analysts estimates for revenues and earnings. This was following an earlier announcement that it had settled with the Department of Justice saying that it had agreed to pay $150 million over five years.

Arena Pharmaceuticals reported a net loss of $31 million or 65 cents per share, which missed analysts estimates by 3 cents. Don’t worry, the company is sitting on a cash equivalent and investments balance of $592.4 million.

General Cannabis Corp (CANN) announced financial results for the quarter ended June 30, 2018. The company delivered a net loss of $3.6 million for the quarter a 130% drop from the previous year’s loss of $1.5 million for the same time period. The loss per share was ($0.10) versus last year’s loss of ($0.08). Revenues jumped to $1.1 million from last year’s $833,000.

In the non-earnings news – Willam “Beau” Wrigley joined Surterra Wellness’ board and helped the company close a $65 million fundraising round bringing that company’s total raise to $100 million. The medical marijuana company is focused on the Florida and Texas markets.

Navy Capital invested $3 million into Nevada-based Oasis Cannabis. The deal could go higher if the overallotment is taken pushing it to $5.75 million.

Aurora Cannabis entered into an LOI to acquire HotHouse Consulting.

Sugarmade, Inc. (SGMD), a publicly traded cannabis-related hydroponics supply companies is returning to the OTCQB Venture Market.

Mentor Capital, Inc.(MNTR), an M&A and funding provider for the cannabis and medical marijuana sector, will start to trade on the OTCQX Best Market effective today


Video StaffVideo StaffAugust 3, 2018

3min3281

Here are the top financial cannabis news stories for the week ending August 3, 2018.

Scythian Biosciences is taking the money it received from selling its Caribbean and Latin American assets to Aphria and is entering the Florida market. It is purchasing CannCure along with two other entities in a deal valued at $136 million.

Maricann upsized its private placement to $35 million.

Earnings season is underway and we had quite a few companies deliver their numbers, so let’s jump right in.

An overproduction of cannabis in California and regulatory changes put pressure on the Hawthorne division of Scotts Miracle-Gro (SMG). At first glance, it looked like a strong quarter with sales increasing 2% for the overall company and the Hawthorne division, but the cannabis sales actually dropped had it not been for acquisitions.

CV Sciences (CVSI) popped on its overall solid second quarter. Sales rose 203% to $12.3 million and the gross profit came in at $9 million, a huge improvement over last year’s $2.8 million.

Isodiol International (ISOLF) reported a net annual loss of C$36 million, but revenue came in at C$19 million, well above last years’ $300,000 and the company recorded a gross profit of $8.8 million.

Organigram (OGRMF) stock rose when it reported sales of $3.7 million for the fiscal third quarter and earned net income of $2.8 million.

Zynerba Pharmaceuticals (ZYNE) delivered a net loss of $12 million, but the company is still sitting on $43 million in cash. The company recently completed an offering, which investors felt was unnecessary because it diluted the stock but it has set the company up with a big cash cushion.

And finally. While everyone is touting the size of the California cannabis market, the job growth in the industry out there is slowing, while cannabis job growth in the northeast is booming. A new report by Joblift noted a surge in medical marijuana job postings this year in Pennsylvania, Massachusetts and yes even here in NY.

Green Market Report is hosting its first cannabis conference on Sept. 14. Go to www.greenmarketsummit.com for more details.

 


Video StaffVideo StaffJuly 27, 2018

3min3890

The big news this week was the announcement by Acreage Holdings of its $119 million capital raise. This U.S. cultivator is in 13 states and soon to be 15. It is the largest U.S. cannabis company raise and sets the company on a solid path to becoming publicly traded this fall on the Canadian stock exchange. The most amazing part of this story is that Acreage did this without hiring bankers. That’s baller.

The Cato Institute released a new report that said if drugs were legalized the government could save billions of dollars in drug enforcement and also make billions in tax revenues.

Emblem ended up buying all of Natura Naturals in a deal valued at C$76 million. The company announced last week that it made a $3 million dollar investment. This week it decided to buy the whole enchilada.

MariMed acquired iRollie in a deal valued at $600,000.

MedMen completed a strategic investment in Lowell Herb Co., the California pre-roll company known for its celebrity endorsements and marijuana flower crowns.

CV Sciences released unaudited second quarter results boasting Q2 revenue of$12.3 million, up 203% over last year and a 53% sequential increase. The company also announced that it has applied to list on the NASDAQ Capital Market. Until approved, the company will continue trading on the OTC Markets under its current symbol, CVSI. “We believe up-listing from the OTC Market to the Nasdaq Capital Market will increase corporate visibility, improve liquidity, and broaden awareness in the financial markets,” said CV Sciences CEO Joseph Dowling.

Bespoke Extracts was approved for an uplisting to the OTC Venture Market Place. “We are very pleased to be trading on the OTCQB as it will provide our shareholders and potential new investors with greater transparency and liquidity in our common stock.

PotNetwork Holdings had to take back its Form 10 to become a fully reporting SEC company after its accounting firm lost its certification. On Thursday the company hired a new firm and is back on track.


Video StaffVideo StaffJuly 20, 2018

3min3682

Tilray priced its $153 million IPO at $17 a share The stock is listed on the NASDAQ exchange and was priced above its estimated $14-$16 price range. The company recently amended the IPO from raising $100 million to $153 million. The stock immediately traded higher to over $23 a share for a gain of 35%.

Aphria Inc. (APHQF) is acquiring Scythian Biosciences Corp. (SCCYF) Latin American and Caribbean assets in a deal valued at $193 million. The acquisition will allow Aphria to quickly expand into Columbia, Argentina, and Jamaica. It will also give Aphria first offer and refusal for Brazil.

Emblem Corp.  (EMMBF) is making a $3 million strategic equity investment into Canadian cannabis company Natura Naturals Inc. In addition to the investment, the two companies have also signed a three-year cannabis supply agreement for Natura to provide Emblem up to 3,000kg of high-quality cannabis flower per year from its Phase 1 cultivation facility. The deal is expected to close later this week.

AmeriCann, Inc. (OTCQB: ACAN), an agricultural-technology company that is developing the next generation state-of-the-art greenhouse cannabis cultivation and processing properties, announced today that it has closed an all-equity financing offering with total proceeds of $3,819,000.

The Green Organic Dutchman paid a dividend in the form of a warrant. The warrant is for a spin-off company that will be called TGOD Acquisitions. TGOD said that it had come across many companies that weren’t a great fit for TGOD, but were good companies none the less.

Green Spirit Industries Inc. (GSRX) has changed its name to GSRX Industries Inc.  The Company will continue trading under ticker symbol “GSRX”.

Aurora Cannabis Inc. (ACBFF) has joined a growing number of cannabis companies working with the Canadian e-commerce platform Shopify. Today, Aurora announced that it had reached an agreement with Shopify to leverage the e-commerce site’s platform to assist in distributing Aurora’s medical and recreational cannabis globally.

 


Debra BorchardtDebra BorchardtJuly 13, 2018

3min3130

July 10 is or 710 is becoming a big sales promotion day and is growing in popularity. If you turn the numbers upside down, it loosely resembles the word “OIL.” So, fans of cannabis oil as using that as an excuse to celebrate. Not convinced?

According to MJ Freeway, point-of-sale (POS) data from thousands of cannabis retailers across the U.S., Monday, July 10, 2017 sales were 15% higher than average Monday sales. The 15% increase can be wholly attributable to increased concentrate purchases.

Canopy Growth Corporation said it was acquiring Hiku Brands Company Ltd.  (HIKU.CN) and paying a premium for the shares. Canopy is paying C$1.91 per share, which is a 33% premium based on the average price over a 20-day period. Consequently, WeedMD has terminated its plans to merge with Hiku and will receive a $10 million termination fee. The companies had announced an “Arrangement Agreement” back in April. That deal was more a merger than an acquisition.

Kush Bottles, Inc. (KSHBacquired Zack Darling Creative Associates, LLC along with its wholly-owned subsidiary, The Hybrid Creative, LLC, a specialist design agency based in Santa Rosa, California. Kush Bottles acquired ZDCA for a total purchase price of $1.45 million in cash and 360,000 shares of Kush common stock. Kush also announced this week that it was changing its name to Kushco Holdings

Nutritional High (SPLIF) announced that it has signed a definitive agreement for the acquisition of Pasa Verde, a commercial scale cannabis oil extraction and edible facility in Sacrament, California.

Sunniva Inc. (SNNVF) announced that it intends to spin out its Canadian assets into a separate Canadian entity and apply to list the shares on the Toronto Stock Exchange and the NASDAQ Stock Market in an effort to unlock the underlying value of the company’s assets on both sides of the border.

Tilray Inc.  amended its IPO to raise $135 million. The company has applied to list its shares on the NASDAQ.

Sproutly Canada Inc, a ACMPR Licensed Producer of cannabis is now trading on the CSE with the ticker SPR. The company just recently submitted their letter of intent to acquire Infusion Biosciences .


Video StaffVideo StaffJuly 6, 2018

2min3810

It was a slow news week with the Fourth of July holiday falling in the middle of the week on Wednesday. The markets were closed for trading and it seems many people were taking part of the week as extended holidays.

Sunda,y July 1 was supposed to be the start of recreational marijuana sales in Massachusetts, but the state has only issued one license and there are no labs licensed to test product. Vermont legalized adult use cannabis, but sales of the product are illegal. And California set that day as the day for all products sold in dispensaries to be compliant with the new regulations causing many businesses to offera huge sale to dump non-compliant products.

Flow Kana announced the completion of a $22 million round of financing, led by a $15 million investment from Gotham Green Partners.

Pharmaceutical company Zynerba said that the phase 1 study for its cannabinoid compound ZYN001 failed and that the company was moving instead with its other drug ZYN002. The company’s stock plunged over 15% in early trading on Thursday, but trimmed those losses by the afternoon.

The Canadian province Alberta decided upon its cannabis suppliers and several companies were happy to announce the news but only hometown favorite Aurora Cannabis and Maricann actually stated the amount that was agreed to be supplied. Other companies included Aphria, Organigram, Emblem WeedMD and Supreme Cannabis.


Video StaffVideo StaffJune 29, 2018

4min3560

There wasn’t a ton of financial news this week, but what came through was BIG.

First, the FDA approved GW Pharmaceuticals’s (GWPH) drug Epidiolex. This cannabinoid drug is used to treat rare forms of epilepsy and it went through all the FDA study trials like any other prescription medicine. In the FDA’s statement, the agency reminded everyone that cannabis is still considered a schedule one drug, but that it would send a recommendation to the DEA about that classification.

GW Pharma had another take on that issue. They said that rescheduling would occur within 90 days. This DEA and administration have not been very receptive to medical marijuana, so it remains to be seen whether they would actually follow the FDA recommendation.

Also, Oklahoma became the 30th state to legalize medical marijuana. Despite a well-funded opposition, the voters prevailed.

Canopy Growth Corporation (CGC) reported that its fourth-quarter revenue rose 55% to C$22.8 million versus last year’s C$14.7 million for the same time period. Still, the company recorded a net loss of C$61.5 million or C$0.31 per share, which was dramatically higher than last year’s net loss of $12.0 million, or $0.08 per share for the same time period. Revenues jumped 95% in the fiscal year ending March 31, 2018, to C$77.9 million over revenue of C$39.9 million for last year.

Aurora Cannabis Inc. (ACBFF) has agreed to a new C$200 million debt facility, with a potential increase to C$250 million, with the Bank of Montreal. The debt will consist of a $150 million term loan and a $50 million revolving credit facility both of which will mature in 2021.

We have a few acquisitions for the week.

EVIO Labs is acquiring MRX Labs for an undisclosed amount. The deal will allow MRX Extractors to focus on extraction while letting the lab side of the business combine with EVIO to focus on lab work.

Marapharm Ventures Inc.  (MRPHF)  entered into a Letter of Intent to purchase all the shares of  Full Spectrum Medicinal Inc.

Harvest One Cannabis Inc. (HRVOF) has signed a binding Share Sale Agreement with Australian-based MMJ PhytoTech Limited for the purchase of 100% of Israeli-based PhytoTech Therapeutics Ltd.

PotNetwork Holdings, Inc. (POTN) announces that it is in the process of filing an amendment for a name change from PotNetwork Holdings, Inc. to “BioTech Hemp, Inc.”.

 

 


Video StaffVideo StaffJune 22, 2018

4min3980

It was a big week for our friends in the great white north. Canadian lawmakers passed the Cannabis Act, also known as C-45 which will legalize and regulate cannabis for adult use. Prime Minister Trudeau has been very supportive of the legalization effort and has stated that October 17 is the planned date for the first legal recreational sales. Canada will be the first G7 nation to legalize marijuana for adults at the national level.

Tilray Inc. has filed for an initial public offering to list its shares on NASDAQ using the symbol TLRY. Privateer Holdings will continue to own a majority of the voting power of all outstanding shares of Tilray’s capital stock and as such will be considered a “controlled company.” Privateer will own 75 million shares and have the majority of the voting power. In the company filing, Tilray reported that revenue rose 62% from 2016’s C$12.6 million to 2017’s C$20.5 million.

Long-time cannabis media company High Times is launching an equity crowdfunding program under the SEC’s Reg. A+ process. The company had made plans in 2017 to go public following a merger with Origo Acquisition company, but so far the deal hasn’t closed.  With the crowdfunding campaign, High Times will offer investors a chance to buy shares before the delayed initial public offering. The Reg. A+ stock is to be priced at $11 a share and the company is saying that this will be a 10% discount to its planned price on NASDAQ.

High Times said the initial response to the crowdfunding campaign has been strong with 400 new investors on the first day alone.

The Hydropothecary Corporation (TSX-V:THCX) announced that it has received approval from the Toronto Stock Exchange to uplist from the TSX Venture Exchange to the regular Toronto Stock Exchange. In addition to the uplisting,  the company is changing its corporate name from The Hydropothecary Corporation to HEXO Corp and will trade under the symbols “HEXO”

Innovative Industrial Properties (IIPR) filed a prospectus for a $300M mixed securities shelf offering. The company intends to use the net proceeds from the sale of these securities to invest in specialized industrial real estate assets

Canadian cannabis company MedReleaf reported that its sales increased 8% to C$43.6 million for the fiscal year 2018, still the company reported a net loss of C$7.5 million. The fiscal fourth-quarter sales rose 16% to C$12 million and a net loss of C$812,000.

Scotts Miracle-Gro Co. (SMG) was downgraded to underperform from market perform at Raymond James on concerns that expectations are too high to overcome near-term challenges.

Marketing tech company springbig announced that it has exceeded the 1,000,000 consumer milestone, establishing the company as one of the fastest growing CannaTech companies in the cannabis industry.


Video StaffVideo StaffJune 15, 2018

6min3740

Green Thumb Industries

Chicago-based cannabis company Green Thumb Industries (GTI) began trading on June 13 under the ticker symbol “GTII” on the Canadian Securities Exchange. GTI’s owner VCP23 did a reverse take over of Bayswater Uranium Corporation raising $67 million through a private placement. VCP reported that its total revenue for the year ending December 31, 2017, was $16.5 million with a net loss of $4 million.

48North

Toronto-based 48North began trading on Monday on the TSX Venture Exchange with the ticker NRTH. Led by Chief Executive Officer Alison Gordon, this cannabis company is a vertically-integrated house of brands focused on women’s health and wellness. So far the company has raised $27M between 2014-2016 via non-brokered private placements.

22nd Century Group

22nd Century Group, Inc. (NYSE: XXII) announced that it will be added to the Russell 2000, Russell 3000, and Russell Global Indexes when FTSE Russell (Russell) reconstitutes its U.S. and global equity indexes on June 22, 2018.

Aurora Cannabis

Aurora Cannabis Inc. (ACBFF) has signed a binding term sheet to acquire all the shares of private company Anandia Laboratories Inc. in an all-stock transaction valued at C$115 million. Anandia Labs is led by cannabis expert Jonathan Page, Ph.D., the company’s CEO and Co-founder. Dr. Page was the first scientist to sequence the cannabis genome and provide deep insights into the biosynthesis of cannabinoids and the interplay between cannabinoids and terpenes.

PRØHBTD

PRØHBTD, the leading cannabis lifestyle media, and brand platform have raised $12 million in funding, $8 million of which was recently secured from a Series A round of investment. The company plans to go public in Canada this year.

In other cannabis news…

Farm Bill

The Farm Bill passed with the attached hemp legalization language.  The Senate Agriculture Committee passed the 2018 farm bill in a 20-1 vote despite an attempt to tighten farmer subsidies. Sen. Chuck Grassley, R-Iowa, cast the sole “no” vote, because his amendment to limit subsidy payments wasn’t added to the proposed bill.

And finally

A new report from the Alaska Alcohol and Marijuana Control Office and the Department of Environmental Conservation found that labs testing marijuana for potency were delivering very different results.

Different labs using similar methodology should have reported similar results, instead, the results came back and they weren’t even close. For example, the test took a marijuana muffin, and brought it to the only two testing labs in the state. The results delivered a large margin of error between the two. They can’t even tell which lab is the accurate one.

 



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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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