Marijuana Money Archives - Green Market Report

Video StaffVideo StaffOctober 12, 2018
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MedMen (MMNFF) continues its spending spree. This week the company is buying Pharmacann in a deal valued at $682 million. Pharmacann is a medical marijuana operator with 10 retail stores and three cultivation and production facilities across multiple states. MedMen’s network nearly doubles with this deal and will now have a portfolio of cannabis licenses in 12 states to operate 79 cannabis facilities.

Seed-to-sale technology provider MJ Freeway has agreed to a merger with MTech Acquisition Corp., which is the first US-listed Special Purpose Acquisition Company focused on acquiring a business ancillary to the cannabis industry. MTech and MJ Freeway will become subsidiaries of a newly-formed holding company to be listed on the NASDAQ (NDAQ) Stock Market.

A report from Canada suggested that tobacco giant Altria is considering a minority investment in Aphria. Both companies were evasive when asked if they were considering a deal, but it seems Altria folks were spotted at the Aphria headquarters.

Aurora Cannabis Inc. (ACB) announced that it has filed an application to list its shares on the New York Stock Exchange (ICE). The company said that it expects to begin trading on the NYSE by the end of October under the symbol “ACB.”

Green Acre Capital has announced that it has received more than $75 million for the initial closing of Fund II. With funding in hand, the company said that it will begin making investments and plans to stop taking capital within the next 30 days; focusing on ancillary cannabis companies

Vivien Azer of Cowen & Co reiterated her Outperform rating on both Canopy Growth and Tilray. Azer lifted the price target for Tilray from $62 to $172 and raised the price target for Canopy’s Toronto-traded shares from the U.S. dollar $57.17 to $63.35.

Next week on October 17th Canada will begin selling legal adult use cannabis, so get ready for an avalanche of cannabis news from the great white north.

Following the taping of the Marijuana Money video Aphria (APHQF) first fiscal quarter of 2019 ending August 31 revenue rose 117% to C$13,392 from $6,120 for the previous year for the same time period.  The company said that adjusted gross profit for the first quarter was $8,458, with an adjusted gross margin of 63.6%, compared to $9,468 with an adjusted gross margin of 78.7% in the prior quarter. The decrease in the adjusted gross margin and adjusted gross profit from the prior quarter largely relates to an internal decision to dispose of 13,642 plants prior to harvest.

Net income was $21,176 or $0.09 per share, as opposed to $15,041 or $0.11 per share in the prior year. The increase in net income for the quarter relates to gains on our long-term investment portfolio, primarily our investments in Liberty Health Sciences and Hiku Brands Company Ltd. and the increase in fair value of biological assets caused by the production increase associated with our Part III Expansion project.

 


Video StaffVideo StaffOctober 5, 2018

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MedMen had a busy week. The company acquired a Scottsdale Arizona cannabis company Monarch including the dispensary and cultivation operation. It comes with all the licenses and some exclusive brand agreements. MedMen also acquired Chicago-based dispensary Seven Point this week and announced that it closed on a $73 million loan facility, which immediately got bumped up another five million.  

Dixie Brands is the latest to declare a reverse take over to go public in Canada. The cannabis beverage company will take over Academy Explorations. The company also completed $25 million fundraising round.

Innovative Industrial Properties (IIPR) began a public offering of 2.6 million shares. It is priced at $40.00 per share for gross proceeds of $104 million.  intends to use the net proceeds from this offering to invest in specialized industrial real estate assets that support the regulated cannabis cultivation and processing industry.

GW Pharmaceuticals (GWPH) said it planned on selling $300 million of ADS’s with a possible overallotment of $45 million. GW will issue 1,900,000 American Depositary Shares, representing 22,800,000 ordinary shares of GW, at a price to the public of $158.00 per ADS on the Nasdaq Global Market, raising gross proceeds of approximately $300 million (before deducting underwriting discounts, commissions and offering expenses).  GW has granted the underwriters a 30-day option to purchase up to an additional 285,000 ADSs at the public offering price less underwriting discounts and commissions.  It is expected to close on or about October 5, 2018.

Cannex Capital Holdings (CNXXF) reported that its revenues increased 223% to $3.4 million in its fiscal first quarter. Net income was $2.4 million versus a loss last year of $403 thousand for the ame time period. Revenue was generated primarily by way of packaging sales and rental income. Income for the period was $2,428,507 for Q1 2019, $.01 per share, as compared to a loss of $403,027 for the comparative period.

Aleafia Health (ALEAF) applied to list on the NASDAQ. The company currently trades in Canada on the OTC markets.

Hollyweed North Cannabis acquired Women Grow for an undisclosed amount.

 

 


Video StaffVideo StaffSeptember 28, 2018

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Marijuana Money is taped on Thursday in order to produce the video for Friday morning. After the video had been taped, the DEA rescheduled the GW Pharmaceutical drug Epidiolex to a schedule five drug.

Schedule five drugs are considered to have a low level of abuse and include substances like Robitussin cough syrup or Lomotil diarrhea medicine. The order made it clear that other cannabis products would remain in the schedule 1 category. The statement said, “As further indicated, any material, compound, mixture, or preparation other than Epidiolex that falls within the CSA definition of marijuana set forth in 21 U.S.C. 802(16), including any non-FDA-approved CBD extract that falls within such definition, remains a schedule I controlled substance under the CSA.”

There will be more new publicly traded cannabis companies. At the end of last week, Acreage Holdings announced a reverse takeover of Applied Inventions Management Corp. The stock is expected to list on the Canadian Securities Exchange.

The Flowr Corporation began trading this week on the Toronto Venture Exchange under the symbol FLWR.

Lots of bought deals and private placements to report.

Green Thumb Industries announced a $65 million deal that got supersized to $88 million and if the next option gets picked up, it could get upgraded to $101 million.

Separately, Supreme Cannabis Company Inc. (FIRE)  entered into an agreement with a group of underwriters, led by GMP Securities and BMO Capital Markets, on a bought deal basis to purchase C$90 million of convertible debentures, at a price of $1,000 per debenture.

Namaste inked a $45 million deal.

A lot happened in cannabis media this week.

High Times is acquiring Dope Media in a cash and stock deal valued at $11.2 million. The company said there would be no personnel changes at this time. High Times has made several acquisitions over the past year as it has attempted to become a publicly traded company. It acquired Culture and Green Rush Daily, but the Green Rush Daily founder Scott McGovern only lasted a year at High Times.

Speaking of getting let go, Leafly has ousted its CEO of one year Chris Jeffrey over what the company cited as “concerns about management of the company.”

Aurora Cannabis reported its earnings delivering a 223% increase in revenue for Q4 and revenue of C$55 million for the year, a big improvement over the previous year’s C$18 million.

Khiron Life Sciences signed an MOU with Chile and received a speculative buy rating from Canaccord.


Video StaffVideo StaffSeptember 21, 2018

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What a crazy week for cannabis stocks. Tilray began the week at $117, which was already a fairly rich valuation. It closed at $154 on Tuesday and then all hell broke loose. It opened at $233 on Wednesday, shot up to $300 at one point, dropped to $151 and then the trading was halted during the day. It eventually reopened and the stock closed at $214.

Tilray was approved by the DEA to bring in medical marijuana for a scientific study, which made some people think this was opening the floodgates for cross-border cannabis sales. Actually, it was a classic short squeeze from the short sellers who had been screaming to short the stock.

Also earlier this week, Bloomberg reported that Coca-Cola was considering doing a beverage deal with Aurora Cannabis. Both firms denied they were in talks but left some wiggle rooms saying they always look at various deals. Still, the market went nuts about Coca-Cola making a CBD drink. Aurora Cannabis COO Cam Battley told the Financial Post that it would soon be listing its stock on a major exchange in the U.S., but wouldn’t disclose which one it would be.

MJ Freeway scored $10 million in an oversubscribed deal this week.

Pure Global Cannabis also did a $10 million private placement and Valens GroWorks did a bought deal valued at C$25 million.

In acquisitions….

MPX Bioceutical  (MPXEF) is acquiring all of the outstanding shares in the capital of Spartan Wellness Corporation from Ninth Square Capital Corporation and Veteran Grown Corporation.

GrowGeneration Corp. (GRWG) purchased HeavyGardens.com, an online seller of hydroponic and grow supplies. HeavyGardens.com is projected to generate over $5,000,000 in sales for GrowGen for fiscal year-end 2019.

In earnings….

KushCo Holdings, Inc. (KSHB) formerly known as Kush Bottles said that it is expecting to report a 171% increase in annual revenue to over $51 million for the fiscal year ended August 31st, 2018. The stock popped over 8% to lately trade at $5.23 on the news.

Sunniva (SNNVF) reported that its total revenues over a six month period were C$9.6 million, against a net loss of C$11.2 million, compared to an C$11.7 million loss in the same period last year and the company did a bought deal for $10 million.

And Canopy Rivers (RIV) began trading on the Toronto Exchange under the symbol RIV.


Video StaffVideo StaffSeptember 7, 2018
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Next week is the Green Market Summit on September 14 in New York City, go to www.greenmarketsummit.com to buy your tickets. We’ve got TheStreet’s Jim Cramer interviewing Brian Athaide, the CEO of The Green Organic Dutchman (TGODF) and Danny Moses of Moses Ventures, the trader made famous in The Big Short will talk about why he’s long marijuana. All the conference goers will get to attend the one-year anniversary party for the Green Market Report.

It was a shortened trading week with markets closed on Monday for Labor Day, but there were lots of financial deals happening.

Cronos Group (CRON) announced a partnership with Gingko Bioworks to produce cultured cannabinoids in a deal potentially valued at $122 million.

The Flowr Corporation raised $36 million in an oversubscribed offering ahead of its plans to do a reverse takeover of the Needle Capital Corp. This is expected on or about September 10th. This company is led by former founders of MedReleaf.

Canndescent raised another $13 million that’s in addition to the $10 million they already raised. The California cannabis company will use the money for expansion.

Liberty Health (LHSIF) reported that its second-quarter sales jumped 95% to $2.2 million. The company also got approval by Florida to implement FlorPass as the state’s first online patient management system. the company said that “The growth in revenue reflects the wider recognition of the Liberty brands in terms of quality and consistency as well as the patient-centric approach that the Company uses. The corresponding patient count increased to almost 10,000 patients at the end of August from 4,600 at the end of May, a 112% increase over this time period.”

Charlotte’s Web (CWEB.CN) closed on a $5.6 million private placement, this follows the company’s launch on Canadian markets last week.

Aurora Cannabis (ACBFF) closed on its big $200 million debt facility and the company got The Green Organic Dutchman to agree to an extension for its investment option into the company.

And finally, Kush Bottles (KSHB) officially changed its name to Kushco Holdings.


Video StaffVideo StaffAugust 31, 2018

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As a reminder folks, the Green Market Summit is on September 14 in NYC, head to www.greenmarketsummit.com for your tickets. This is the first time you will see TheStreet’s Jim Cramer interview The Green Organic Dutchman CEO Brian Athaide.

Charlotte’s Web, the cannabis company responsible for turning CNN’s Dr. Sanjay Gupta into a medical marijuana believer filed for an IPO worth C$100 million and began trading on Thursday under the symbol CWEB. That’s a pretty rich valuation considering the company only had $40 million in revenues for 2017. Having said that the company has a 14% market share for CBD products

Early this week, Plus Products filed a  prospectus for its IPO and is planning to list shares on the Canadian Securities Exchange. The company hopes to raise $15 million through the offering,

CannaRoyalty Corp.  (CNNRF) agreed to sell its equity stake in Alternative Medical Enterprise or Alt-Med to  Tidal Royalty Corp. (TDRYF) for $8 million. Canna Royalty will continue to have the right to license MÜV products in California, Nevada, Canada and other select markets. CannaRoyalty said that the sale of AltMed represents a roughly 168% return on investment for its shareholders.

CV Sciences, Inc. (CVSI) issued a statement denying that it had violated securities laws. The statement stemmed from a claim by Citron Research that CV Sciences had a patent application rejected by the United States Patent and Trademark Office (USPTO) and that it didn’t disclose this to shareholders. That prompted a class action lawsuit. CV Sciences said it appealed the rejection, but didn’t really address whether it had told shareholders about the patent office’s communications.

Lots of earnings this week as we close out the third quarter of the calendar year here are the highlights.

MPX Bioceuticals (MPXEF) reported that its revenues increased 224% to 14.5 million Canadian dollars versus last year’s $4.5 million. Still, though MPX delivered a net loss of 11 million Canadian.

Green Thumb Industries (GTBIF) announced that its revenues in the second quarter rose 25% from $10.9 million to $13.6 million, driven mostly by the increased wholesale distribution of its finished branded products to retail customers in Illinois and Maryland, as well as increased traffic at the company’s retail stores.

Tilray (TLRY) reported that its revenues increased to $9.7 million, an increase of 95.2% over last year’s $4.9 million for the same time period. The company said that the jump was due to increased patient demand in Canada, sales to licensed producers and international sales.

In addition to these companies, you can get more details on earnings from Golden Leaf Holdings, True Leaf Medicine, FluroTech, WeedMD, VIVO Cannabis and Kalytera therapeutics on the Green Market Report website.

This weekend is Labor Day and so markets will be closed on Monday.


Video StaffVideo StaffAugust 24, 2018

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Don’t’ forget to buy your tickets now for the Green Market Summit to be held on Sept. 14 in NYC. For the first time ever you’ll get to see TheStreet founder Jim Cramer interview The Green Organic Dutchman’s new CEO Brian Athaide. This week TGOD said it is acquiring HemPoland in an immediately accretive deal

The state of California released its tax data for Q2 cannabis sales last week.  Tax revenue from the cannabis industry totaled $74 million from April 1, 2018, through June 30, 2018. However, the state is behind what it had estimated it would get. For the first six months California only bro,ught in $135 million, not the $175 million it expected.

MedMen (MMNFF) said on Monday that its stores accounted for roughly six percent of all legal retail sales of cannabis and cannabis products in the second quarter for the state. On a separate note, MedMen signed an exclusive deal to use the iconic Woodstock brand on cannabis products and get premium placement at Woodstock branded festivals.

Namaste Technologies Inc. (NXTTF) signed a wholesale supply agreementwith Manitoba-based licensed producer, Bonify Inc.  Namaste will buy bulk cannabis products through the wholly-owned subsidiary, Cannmart. Bonify is a leading provider of medical marijuana and it operates a large-scale cultivation facility.  Namaste also signed a revenue sharing agreement with cannabis business tech company Cannvas MedTech Inc.

CannaRoyalty reported that its second quarter revenues jumped 266% to C$3.5 million Canadian dollars and the company delivered a net income of $9.3 million. Compare that to last year’s C$2 million loss for the same time period.

Toronto-based Emblem Corp. (EMMBF) reported second-quarter revenues of $1.5 million for the quarter ending June 30, 2018, an increase of 180% over last year. The company also delivered a gross loss of $159,000 for the quarter versus last year’s zero amount and a let loss of $4.7 million versus last year’s net loss of $2.9 September

Kaya Holdings had a 45% increase revenues with $291,000 for the quarter. It’s a 60% increase year-over-year.

Cannabis Strategic Ventures acquired The Asher House Pet CBD brand.

BlackRock is now the largest institutional holder of 22nd Century group stock

Canopy Growth said that its venture arm Canopy Rivers will complete its Reverse Take over of AIM2 during the week of September 17 and will use the symbol RIV. As a side note, Canopy Rivers will be at the Green Market Summit.

 

 


Video StaffVideo StaffAugust 17, 2018

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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

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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

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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.

 



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