Marijuana Money Archives - Green Market Report

Video StaffVideo StaffSeptember 18, 2020

3min2760

Cannabis technology company Akerna (Nasdaq: KERN) reported that cannabis sales over the Labor Day weekend exceeded a quarter billion dollars, however, the increase was lower than previous years. The lack of big holiday sales could be attributed to bigger sales in August meaning consumers aren’t waiting for the holiday to make purchases.

We have a few earnings to review this week.

Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) reported that revenue fell from $25 million in the 2019 second quarter to $21.6 million for the 2020 second quarter. The company missed the average estimate for revenues, which was $25.9 million according to Yahoo Finance. The company also missed the earnings estimate of -$0.04 with reported earnings of -$0.13. The company also delivered a net loss of $14 million for the quarter versus last year’s net income of $2.2 million.

Fire & Flower Holdings Corp. (OTCQX: FFLWF) delivered second quarter revenue of $28.6 million. Still, the company reported a net comprehensive loss of $29.1 million, or net loss per share, and on a fully diluted basis of $0.18.

High Tide Inc. (OTCQB: HITIF) reported revenue for its third quarter of fiscal 2020 of $23.20 million an increase of 180% from $8.29 million for the same quarter last year. High Tide also delivered income from operations of $2.11 million versus a loss from operations of $4.04 million for the same period of 2019.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) is buying Pennsylvania’s PurePenn and Pioneer Leasing & Consulting as well as dispensary operator Keystone Relief Centers which is doing business as Solevo Wellness. Trulieve has agreed to acquire PurePenn for an upfront payment of $46 million.

Arizona-based Fibonacci Brands is buying the cannabis company Darwin Brands from Harvest Health and Recreation (OTC:HRVSF) for an undisclosed amount. Darwin is part of the Arizona Natural Selections. In February 2020, Harvest acquired AZ Natural Selections in a deal valued at approximately $30 million

PharmHouse is costing Canopy Rivers Inc. (OTC: CNPOF) millions as it works to keep it afloat after the company missed its cash flow goals. The problems have led to a deterioration among the partners causing counterclaims of bad behavior. Canopy Rivers said it will act as a debtor-in-possession lender for PharmHouse and will provide up to $7.2 million in DIP financing. This will allow PharmHouse to continue its day-to-day operations throughout the anticipated restructuring. Canopy Rivers owns 49% in the joint venture of PharmHouse, which was formed in May 2018.

And finally, MedMen was able to borrow another $20 million, but the company is paying 18% interest. And you thought your credit card balance was bad.


Video StaffVideo StaffSeptember 11, 2020

3min3570

It was a shortened trading week as markets were closed on Monday for the Labor Day holiday.

Aurora Cannabis Inc.  (NYSE: ACB) gave an update on its business this week in which the company said it would take a $1.8 billion charge as it released unaudited preliminary fiscal fourth-quarter 2020 results. Revenues also fell sequentially. Aurora reported that its 2020 fourth-quarter net revenue was expected to be in the range of $70 million and $72 million, versus $75.5 million in the third quarter As an aside, the company also named a new CEO Miguel Martin.

Emerald Health agreed to sell ts interest in Pure Sunfarms to Village Farms International for $79 million. This was a joint venture that was established between the company and Village Farms in 2017 and emeral health still owned a 41% interest. 

Columbia Care Inc.  (OTCQX: CCHWF) is buying California-based Project Cannabis for approximately $57 million in Columbia Care stock and approximately $12 million in cash from the proceeds of a concurrent sale of Project Cannabis’ real estate assets. The deal is expected to close in the fourth quarter of 2020.

Havn Life Sciences was granted a Section 56 exemption by Health Canada, meaning it now has the ability to possess certain amounts of pure psilocybin for scientific purposes, specifically for the research and development of quality control methods. Earlier this week, Havn began trading on the Canadian Securities Exchange using the ticker symbol “HAVN”.

And finally The queen of lifestyle branding Martha Stewart has launched a new line of CBD products with cannabis company Canopy Growth Corporation (NYSE:CGC.) The hemp-derived wellness supplements are inspired by some of Martha’s most popular recipes featuring Meyer lemons and blood oranges. The initial product offering will include a range of human wellness supplements, with a gift box and pet line launching later this year.

 


Video StaffVideo StaffSeptember 4, 2020

3min3490

Markets will be closed on Monday in observance of the Labor Day holiday.

The UK-based mental health company known for its psychedelic treatments, Compass Pathways has filed to go public this week. The company said it plans to list its American depositary shares on the Nasdaq under the ticker “CMPS”. The company reported total net losses of $24.8 million for the six months ending in June. The company has raised $116 million so far. Its largest shareholder is Atai Life Sciences, which owns 29% of the stock. 

CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH) reported that its fiscal year-end 2020 total revenues were $11,917,629 but the company also reported a net loss $30 million versus last year’s net loss of $27 million. 

4Front Ventures Corp. (OTCQX:FFNTF) reported revenue of $12.7 million in the second quarter versus $2.5 million for the same time period as last year. The company said that it achieved positive operating cash flow in the month of August and expects a positive adjusted EBITDA starting in the third-quarter of 2020.

Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) reported retail revenue for the quarter  ending June 30, 2020, was $3,987,777. The company also disclosed that it has incurred losses and has had negative cash flows from operations from inception. The company also said it would not be able to make its mortgage payments and didn’t make an interest payment on a convertible debenture. 

And finally

AdvisorShares has launched the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS), which will begin trading this Wednesday (September 2nd).   MSOS becomes the first U.S.-listed active ETF to deliver exposure dedicated solely to American cannabis companies, including multi-state operators (MSOs)


Video StaffVideo StaffAugust 28, 2020

4min1830

You are probably aware that California has been subjected to some of the largest fires ever in the past couple of weeks and several farms have been destroyed. We are so sorry to hear about this and our hearts go out to you.

Democratic Gov. Tom Wolf of Pennsylvania announced today that regulating the adult-use cannabis market and “restoring justice” to those with past marijuana convictions are among his fall legislative priorities. Wolf said: “I’m calling on the legislature to legalize recreational marijuana, with the revenue going to small business grant funding [and] restorative justice programs. At the same time, we must pursue policies that restore justice for individuals convicted of marijuana-related offenses.”

Columbia Care Inc. is planning to buy The Green Solution (TGS) in an all-stock deal that is expected to close on September 1, 2020. Colorado-based TGS is said to have unaudited revenue through July 2020 of $52.7 million, Columbia Care said that the deal would be immediately accretive

(MindMed) announced that it is working with the University Hospital Basel’s Liechti Lab on a combination of MDMA and LSD in the Phase 1 clinical trial. The Phase 1 MDMA-LSD trial is scheduled to start in Q4 of this year in Basel, Switzerland. They are studying whether MDMA will reduce the potential effect of a “bad trip” experienced by someone during an LSD treatment.

There were numerous earnings announcements this week.

TILT Holdings Inc. (OTCQB: TLLTF) reported that its revenue fell 9% sequentially to $38.6 million and dropped 1% from last year’s second quarter in 2019. The company blamed the decline on “COVID-19 related headwinds including decreased sales at the Company’s inhalation technology subsidiary, Jupiter Research, as well as lower wholesale demand in the cannabis segment due to the temporary suspension of adult-use sales in Massachusetts from March 24th to May 25th.”

Vireo Health International, Inc. (OTCQX: VREOF) reported that it generated revenue including contributions from discontinued operations, of $12.2 million. This was an increase of 70% over $7.2 million in the second quarter of 2019. Vireo reported revenue, excluding discontinued operations, increased 59% to $10.8 million, over $6.7 million in the 2019 second-quarter. The second-quarter net loss grew to $8.9 million, versus a net loss of $1.8 million in the 2019 second-quarter.

Canadian-based Inner Spirit Holdings Ltd. (CSE: ISH) (OTC:INSHF)known for its national network of Spiritleaf retail cannabis stores reported system-wide retail sales of $20.5 million in the second quarter of 2020, an increase of 343% compared with $4.6 million in the second quarter of 2019. This was a 19% increase sequentially from the first quarter’s $17.1 million.

Hollister Biosciences Inc. (CSE: HOLL), (OTC: HSTRF) reported that its revenue for the second quarter ending June 30th, 2020 was $8.47 million versus $0.2 million for the same time period last year. the company attributed the revenue growth to the sale of concentrates, pre-rolls, and contract manufacturing services.

Ayr Strategies said its revenue fell 16% to $28 million in the second quarter from $33 million. The company reported a net loss of $7.5 million which was the opposite of the net income in the first quarter of $1.6 million.


Debra BorchardtDebra BorchardtAugust 21, 2020

3min4240

Maine’s Office of Marijuana Policy announced that retail sales of adult-use marijuana to consumers 21 years of age or older will be permitted starting on Friday, October 9, 2020. The office, which is a part of the Maine Department of Administrative and Financial Services, intends to issue the first active licenses to recreational cannabis businesses on Tuesday, September 8, 2020.

Despite the challenges of COVID-19 in Massachusetts and Nevada, Curaleaf (OTC:CURLF) reported an impressive quarter and gave an even sunnier forecast. CEO Joe Lusardi said on the company’s earnings call that it took a $25 million hit to revenue in the quarter as a result of the pandemic. The tourist traffic in Nevada disappeared and the adult-use stores were closed in Massachusetts for weeks. Lusardi also pointed out that unlike Massachusetts’ quick recovery, Nevada’s recovery is painfully slow.

The company reported Total revenue of $117.5 million, which grew 142% year-over-year and 22% sequentially. The net loss for the second quarter of 2020 was $2.0 million, compared to a net loss of $24.5 million in the second quarter of 2019. We expect to generate Q3 managed revenue of approximately $190 million to $200 million, 

 

Golden Leaf Holdings announced second-quarter revenue of $5.5 million a 40% increase over the same period last year, with a 16% growth over the first quarter of 2020. 

We have some capital raises to go over this week

It’s one of the least known cannabis companies for people outside the industry, but e-commerce company Dutchie is quickly making a name for itself. The company just completed a $35 million Series B funding round, bringing its total funding to $53 million to date.

Sundial Growers closed on a $20 million Series A offering. 

Avicanna, announced the closing of a $2.7 million private placement. 

Mydecine Innovations Group, Inc., (CSE:MYCO) (OTC:MYCOF) announced that it is the first organization to exercise its cGMP capabilities under a special license to legally produce, transfer, sell, and export pharmaceutical-grade psilocybin, naturally derived from whole-mushroom extraction.


Video StaffVideo StaffAugust 14, 2020

3min5471

We are back on the grid after losing power for a week due to the tropical storm. 2020 right? Thanks for sticking with us as we were operating at a diminished capacity.

This week was about earnings. We got financial reports from some of the biggest operators in the industry and it was a mixed bag with some companies crushing it while others still struggle with big losses. We will just hit the highlights here

Trulieve who reported eye-popping revenue of $120 million for the second quarter. Still, the company’s net income fell dramatically to just $6.6 million from last year’s $57 million due to adjustments.

Canopy Growth Corporation reported first-quarter fiscal 2021 net revenue increased 22% to $110 million. The net loss of $128 million was lower than last year’s net loss by $66 million, but they are still losing more than they are making. 

Harvest Health and Recreation increased their total revenue by 109% from 2019’s second quarter. This year, the company generated $55.7 million as opposed to $26.6 million in Q2 of 2019. Net loss for the second quarter was $18.3 million.

Acreage Holdings reported second-quarter revenue of $27.1 million, a 53% increase compared to the same period in 2019. Like Canopy, its eventual owner the Net loss was $37.2 million, so still losing more than making

Hydroponic store chain GrowGeneration Corp. reported revenues of $43.5 million for the second quarter and is raising its guidance for 2020 revenue between  $170 million–$175 million. Revenue guidance for  2021 is $245 million–$260 million.

Despite a tightened capital market, HEXO managed to raise almost $35 million in an at the market offering of shares. 

Cannabis tech company Fyllo raised another $10 million as it plans to expand beyond the cannabis industry. 

In psychedelics’ news Revive Therapeutics is introducing dissolvable, oral psilocybin film-strips to their portfolio.


Video StaffVideo StaffJuly 31, 2020

3min5580

 Scotts Miracle-Gro Company reported fiscal third-quarter sales increased 28% to $1.49 billion, beating analyst estimates for $1.3 billion. Hydroponic subsidiary Hawthorne sales increased 72% to $302 million versus $176 million for the same time period a year ago. Scotts to increase its guidance for full-year sales, adjusted earnings, and free cash flow

Aphria Inc. reported net revenue of $152.2 million in the fourth quarter, an increase of 18% from the prior-year quarter. This number also beat the analyst estimate of $149 million. However, the stock was getting beaten up after the company also reported a $98.8 million net loss for the fourth quarter, which was much worse than last year’s net income of $15.7 million. The losses were attributed to the COVID-19 pandemic.”

PotNetwork Holdings, Inc. (OTC PINK:POTN)  filed its 2019 Annual Report and reported that its revenues fell 41% to $15 million versus $25.5 million in 2018. The company attributed the drop in revenue to “distribution contraction as a result of the FDA Warning Letter, along with the paring and streamlining of the product lines in mid-2019.”

MYM Nutraceuticals Inc. is buying Biome Grow Inc. for roughly C$12 million. Biome is a Canadian-based company with national and international business interests in the cannabis industry. Its wholly-owned subsidiary Highland Grow Inc. is licensed to cultivate, process, and sell cannabis.

As announced in early June, Clever Leaves International is continuing to make its way onto the NASDAQ through the Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA). The deal is expected to close in the fourth quarter and will be known as Clever Leaves Holding Corp. 


Video StaffVideo StaffJuly 24, 2020

4min6410

Curaleaf (CURLF) closed on a $34 million offering earlier this week and then announced it was closing the previously announced Grassroots acquisition. That deal was first made public a year ago. With the closing of the Grassroots deal, Curaleaf has quickly risen to the top of the charts for cannabis companies. 

Organigram Holdings Inc. (OGI) reported its third-quarter net revenue fell to $18.0 million from last year’s $24.8 million for the same time period ending in May. The net loss increased 783% to $89.8 million from last year’s net loss of $10 million. The company blamed the drop in sales to customers wanting more value-priced products, which it rolled out late in the quarter. 

The FDA issued draft guidance for clinical research related to the development of drugs containing cannabis or cannabis-derived compounds. The FDA is taking comments and suggestions for the next 60 days. 

Lots of legal stuff this week to cover

 MariMed lost a round over the efforts to gain control over the bankrupt Kentucky hemp company GenCanna. MariMed was one of the largest equity shareholders and tried to assert its weight, but the courts disagreed and said since Gencanna had already sold its assets, MariMed was left with no position of power.

Irth Communications and Andrew Haag may not ring a bell for many cannabis stock shareholders, but the group was hired to promote stocks and they did not disclose that information. The two received a cease and desist order from the SEC and told to pay fines totaling roughly $74,000

In Nevada, the new regulator, the Cannabis Compliance Board, signed off on the agreement with CWNevada LLC, whose majority owner is attorney Brian Padgett this past Tuesday. CWNevada will pay $1.5 million in back taxes, $1.25 million in fines, lose six licenses, and must sell its remaining eight licenses.

In stock moves…

Europe’s largest independent cannabis company EMMAC Life Sciences Limited will become a publicly-traded company on the NASDAQ following a merger with Andina Acquisition Corp. III (NASDAQ: ANDA). 

Willow Biosciences Inc.  (OTCQX: CANSF) is approved to start trading on the OTC under the symbol “CANSF”.


Video StaffVideo StaffJuly 17, 2020

3min5070

 

According to the state Department of Revenue data, Colorado’s cannabis dispensaries sold almost $192.2 million worth of marijuana products in May. the state reported $42.9 million in medical marijuana sales and $149.1 million adult-use cannabis sales.

 

So far the state has collected $167 million in tax revenue in 2020 from January to June. If the tax collection remains consistent, the state could end up collecting roughly $334 million in taxes for 2020. 

 

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) reported First Quarter 2020 Financial Results Highlights with revenue for the first quarter of 2020 at $16.9m. Net losses were $8.1 million. Gross profit for the first quarter was $9.7m. Adjusted EBITDA for the first quarter was a loss of $2.8m. 

 

MJardin Group, Inc.  (OTCQX: MJARF) reported first-quarter revenue dropped to $2.2 million versus last year’s revenue of $10.7 million for the same time period in 2019. The company also delivered a net loss of $8.1 million, which was lower than last year’s first-quarter loss of $14.8 million (all figures in Canadian dollars).

 

Mydecine Innovations Group Inc. (CSE: MYCO) (OTC: MYCOF) has entered into an agreement to buy Canadian-based NeuroPharm Inc. in a deal valued at roughly $6.3 million. NueroPharm is a  developer of natural psychedelic-based treatments for mental health disorders.

The dispensary credit card fraud scheme looks like it will move forward. In March, Ruben Weigand and Hamid “Ray” Akhavan were charged with conspiracy to commit bank fraud over charges that occurred between 2016 and 2019. They are alleged to have created a bunch of fake companies to trick banks into processing credit and debit payments for marijuana products from legal sellers. The two asked the court to dismiss the indictment saying that no one was harmed in the scheme. While the judge hasn’t ruled, it does look like the prosecution has made a strong case not to dismiss.

ManifestSeven, said it has received conditional approval for the listing of its common shares on the Canadian Securities Exchange. the Company’s common shares will commence trading on the CSE under the ticker symbol “MSVN”

 


Video StaffVideo StaffJuly 10, 2020

3min5621

KushCo Holdings Inc. reported that its revenue had dropped by 46% as the company shifted gears to focus on larger, more financially stable customers. The compare reported revenue of $22 million, which missed analyst estimates and was far lower than what even the company had forecast it would report. Net losses increased to $13 million, but the company’s expenses fell by 50%. The drop in expenses was partly due to the pandemic. 

Jushi Holdings Inc.  reported that its Total revenue increased 43% sequentially to $8.6 million in the first quarter, while the company delivered a net loss for the quarter of $15.8 million. The net losses were down slightly from the fourth quarter’s net losses of $17 million. Jushi said that it expects to report total revenue of $15.0 million in the second quarter, an increase of 74% sequentially. Jushi said it is also reaffirming its 2021 revenue guidance of $200 to $250 million.

A story from the Cannabis Law Report broke the news that the SEC has told High Times to stop selling its shares until it files its annual report. The two year long offering was recently extended again to September. High Times hasn’t reported any financial information since June 2019. The company requested a delay due to COVID-19.

It seems that the day that convenience stores could be selling cannabis is getting closer as Fire & Flower announced the openings of its first two cannabis retail stores adjacent to Circle K locations in the province of Alberta. Fire & Flower’s plan is that it will gain from the high traffic at these Circle K locations that will be convenient for cannabis customers. 

Cannabis tissue culture company Conception Nurseries has raised $15 million in a Series A offering.

And finally, more psilocybin companies have launched this week. CannaGlobal Wellness is a combination of CannaGlobal, Sansero Life Sciences, and Rise Wellness. The new company said it will focus on psilocybin and other natural compounds to promote emotional, mental, and physical wellness. Lorne Gertner the founder of Tokyo Smoke islisted as the Chairman. CEO Susan Chapelle has launched Havn Life which will be developing a range of standardized, quality-controlled psilocybin products to be used by researchers.



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