Marijuana Money Archives - Green Market Report

Video StaffVideo StaffJuly 3, 2020

4min410

It’s a shortened trading week as markets are closed on Friday to celebrate the Fourth of July. The good news is that 2020 is half over.

 

Despite the continued pressure on cannabis stocks, investors continue to pour money into the industry. The companies most favored are those with consistent and reliable sources of revenue. This week Innovative Industrial Properties, Inc. (IIP) (NYSE:IIPR)  priced its underwritten public offering of $225 million. The deal is expected to close on or about July 2, 2020. The underwriters also have a 30-day option to purchase up to an additional 402,504 shares of its common stock.

 

GrowGeneration Corp. priced an underwritten public offering of roughly $42 million and that’s up from the originally planned $35 million.

 

Bhang reported that it had revenue of $4.7 million in 2019, but net losses of $15 million. 

 

There was also a lot of news from the pharma side. GW Pharmaceuticals outlined its plans for its other cannabis drug Sativex. It has a strategy to use the drug as a treatment for MS Spasticity. PTSD and spinal cord injury.

 

Zynerba unfortunately had to report that its trial for its Zygel drug as a treatment for Fragile X failed to produce the necessary threshold for positive results. 

 

Cresco Labs Inc. and Innovative Industrial Properties, Inc. (IIP) have closed on the acquisition of a property in Massachusetts with a leaseback agreement. The property is valued at $7.8 million and is the fifth such deal the two have done.

 

Harborside said it won’t be able to file its financial reports on time. A cease trade order is expected until the company can get those results published.

 

And finally, HBO Max has become the latest production company to use cannabis products as a marketing tool for an animated show called Close Enough that will begin streaming on July 9. The company is partnering with Sunderstorm’s Kanha Cannabis Infused Gummies and online cannabis marketplace Eaze to launch a collection of character-inspired CLOSE ENOUGH edibles. 


Video StaffVideo StaffJune 26, 2020

6min3270

Happy Pride weekend everyone. Celebrate safely. 

Canopy Growth Corporation (NYSE: CGC) and Acreage Holdings, Inc. (OTCQX: ACRGF) stunned markets when the two companies agreed to an unusual deal in 2019. The agreement was that when cannabis was legalized in the U.S., Canopy would buy Acreage. It was called the “triggering event.” A lot has changed since then and now the deal has changed accordingly.  Acreage shareholders will now get an initial up-front payment of $37.5 million in connection with the modification of Canopy Growth’s rights. That’s a big drop from the original price tag of $3.4 billion.  In addition to that CEO Kevin Murphy is resigning from the company.

Aurora Cannabis Inc.  (NYSE: ACB) is the latest cannabis company to destroy the job argument as a reason for legalization. The Canadian cannabis company laid off 25% of Aurora’s SG&A staff, most of those to take place immediately and a roughly 30% reduction in production staff over the next two quarters. The cuts went to the highest levels including a restructuring of the executive leadership team and the recently announced retirement of President Steve Dobler. Aurora said it has initiated a plan to close operations at five facilities over the next two quarters in order to focus production and manufacturing at the Company’s larger scale and highly efficient sites.

Jushi Holdings Inc. (OTCQX: JUSHF) is planning on buying Vireo Health’s (OTC:VREOF) Pennsylvania Medical Solutions, LLC as the company looks to strengthen its position in the state’s market. Jushi will pay Vireo $16.3 million in cash, a $3.8 million seller note, and assume a $17 million facility associated with a long-term lease obligation. The $37 million deal is expected to close by the end of August 20.

GW Pharmaceuticals plc (Nasdaq: GWPH) said that the UK Home Office has reclassified Epidiolex, the company’s cannabidiol medicine as a Schedule 5 drug. A big relief to patients and pharmacists. 

TILT Holdings Inc. (OTCQB: TLLTF) reported Quarterly revenue of $42.4 million, up 27% Quarter over Quarter and 23% over Q1 2019. The company reported a positive net income of $50,925.  

Organigram Holdings Inc.  (NASDAQ: OGI) issued a very brief announcement stating that the company was facing a lawsuit and that it was changing its newly launched Trailer Park Buds brand. Organigram said it wouldn’t comment on the case, which was started in the Court of Queen’s Bench in Alberta. It is a class-action case that seeks damages from many cannabis companies including Organigram. 

A Cease Trade Orders have been issued by one or more securities commissions. 

Alternate Health Corp.  AHG  Ontario Securities Commission 
Champignon Brands Inc.  SHRM  British Columbia Securities Commission 
CIM International Group Inc.  CIM  Ontario Securities Commission 
iAnthus Capital Holdings Inc.  IAN  Ontario Securities Commission 
Ionic Brands Corp.  IONC  Ontario Securities Commission 
Sunniva Inc.  SNN  Ontario Securities Commission and British Columbia Securities Commission 

Video StaffVideo StaffJune 19, 2020

3min2730

We wish everyone a Happy Juneteenth. We stand with the protestors and Green Market Report has made donations to a variety of charities. We will strive to make more efforts at covering minority executives in our Executive Spotlight and authors in our Friday Book Club as well as in our general reporting.

 

Earnings continue to roll in. MJardin Group, Inc.  (OTCQX: MJARF) reported results  fiscal year ending December 2019, with revenue falling to $26.7 million versus $27.5 million in 2018. In addition to the drop in revenue, MJardin delivered a 2019 net loss of $267.5 million versus $81.4 million in 2018.

 

Fire & Flower Holdings Corp. (OTCQX: FFLWF) reported total revenue of $23.1 million for the first-quarter fiscal 2020 ending May 2, versus revenue of $9.5 million in the first quarter of fiscal 2019  

 

Multi-state operator 4Front Ventures (OTC:FFNTF) reported fourth-quarter revenue increased 525% to $17.5 million over last year’s revenue for the same time period. 2019 revenue increased 786% to $31 million. first quarter looks to be increasing 36% sequentially to $23.8m.

 

High Tide Inc. (OTCQB: HITIF)  reported its financial and operating results for the second quarter of fiscal 2020 ending April 30, 2020 with revenue increasing by 197%, to $19.57 million from $6.60 million for the same quarter last year.

 

 MedMen (MMNFF)co-founder Adam Bierman, has stepped down as a member of the board of directors. His co-founder Andrew Modlin, has also stepped down as an observer to the company’s board of directors.

 

Black Tie CBD filed a lawsuit against High Times for the canceled Hemp Cup. Black Tie was a sponsor and had apparently forwarded $25,000 for the event, which was canceled due to COVID. High Times has not refunded the money despite saying publicly it would do so. 

 

Mydecine (MYCO.CN) (NLBIF) is quickly upping its fungi authority. The mycology-focused company has signed an agreement with Applied Pharmaceutical Innovation (API), a translational commercial drug institute at the University of Alberta’s Faculty of Pharmacy and Pharmaceutical Sciences.

 


Video StaffVideo StaffJune 12, 2020

4min3900

Schwazze(OTCQX: SHWZ) formerly known as Medicine Man Technologies is buying 14 Star Buds locations in the state of Colorado as part of the company’s pending acquisitions. The deal is valued at $118 million and the locations are said to have earned $50 in annual revenue.

HEXO Corp. (NYSE: HEXO) reported that its revenue increased 30% sequentially to $30.9 million in the third quarter fiscal. The net losses fell to $19.5 million from the second quarter’s kitchen sink net losses of $298 million. Revenues beat analyst estimates while earnings per share missed by two cents. 

Troubled cannabis company Namaste Technologies Inc. (OTCMKTS: NXTTF) continues its hard journey on the road to recovery as the company reported a 16% increase in net revenues to $5.3 million for the first quarter. Namaste said it was its highest quarterly revenue in two years. The company also reported that its net losses had been trimmed to $7.4 million from last year’s $10.3 million for the same time period.

Grow Generation Corp. (NASDAQ:GRWG) announced a $35 million stock offering and gave hints of potential COVID troubles ahead.

MediPharm Labs Corp. (OTCQX: MEDIF) closed a private placement with an institutional investor for gross proceeds of C$37,822,500. The company said it plans to use the money for general corporate purposes, including building on the launch of its Cannabis 2.0 offerings with new product formats and expanding its product and Active Pharmaceutical Ingredient exports.

Akerna Corp. (Nasdaq: KERN) has closed a $17 million debt financing with  two institutional investors.

Leading cannabis manufacturer in California, Procan Labs, announced its victory in a monumental lawsuit against the state of California. The company was found to have $2.6 million in “black market” cannabis oil as well as $620,000 in cash. The judge ultimately ruled the cannabis oil to be legally produced, as well as ruling that the Controlled Substances Act does not apply to licensed cannabis businesses in the state of California.

Vireo Health International, Inc. (OTCQX: VREOF) said that it has elected to terminate its employment agreement with Bruce Linton as Executive Chairman, on an entirely without-cause basis. Don’t feel bad for Bruce, he is also leading a $150 million SPAC

Aphria traded today for the first time on the NASDAQ this week with the symbol “APHA”


Video StaffVideo StaffJune 5, 2020

3min2140

It’s been a rough week for our country as peaceful protests sparked looting in some cities. Many dispensaries were targeted in the mayhem. As many as 43 stores reported looting in California, but retail in Oregon, Illinois, Pennsylvania and New York all experienced the robberies. Most pointed out that these were not protestors, but instead organized professionals taking advantage of a distracted police force. 

Green Market Report stands with the protestors and made a donation to the NAACP Legal defense fund.

Ok, on to the news

Smoking accessories e-commerce brand Greenlane Holdings, Inc. (GNLN) reported falling revenue for the first quarter ending March 31, 2020. Net sales fell 32% to $33.9 million in the first quarter of 2020 versus $49.9 million for the same time period in 2019.

Greenlane blamed the drop on the FDA’s restriction on the sale of certain products, primarily mint-flavored JUUL, and the execution of Greenlane’s plan to deliberately move away from low-margin JUUL sales, to focus on higher-margin products. The company also delivered a  first-quarter net loss of $16.8 million, slightly better than last year’s net loss of $17.7 million for the same period in 2019. 

Cannabis venture capital firm Canopy Rivers Inc. (OTC: CNPOF) reported its fourth-quarter results. Revenue was flat at $2.5 million for the quarter in 2020, while the net losses ballooned to $30 million from 2019’s net income of $3.5 million.

Multi-state operator Acreage Holdings, Inc. (OTCQX: ACRGF) said it has entered into two definitive funding agreements to receive up to $60 million. The announcement comes on the heels of Acreage saying it expects to take an $80-$100 million charge 

Acreage wasn’t the only company lining up capital. The Valens Company arranged for up to C$40 million of secured debt financing.

MJardin Group has terminated its previously announced acquisition of edible company Cannabella.

And finally  Clever Leaves will be listed on the NASDAQ (NASDAQ:NDAQ) as a result of its agreement with the Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA)

Stay safe everyone.


Video StaffVideo StaffMay 29, 2020

2min2170

It was a short trading week due to the Memorial holiday on Monday, however, there were still some earnings to report.

MedMen (OTC:MMNFF) warned that COVID had affected its sales beginning at the end of March although the company said that as restrictions begin to lift, sales look to be returning. The company reported revenue of $45 million in the third quarter and a net loss of $76 million. The losses have been trimmed a bit from $96 million in the previous quarter.

Zynerba Pharmaceuticals, Inc. (ZYNE) announced positive top-line results from the exploratory, open-label Phase 2 BRIGHT study The trial was designed to assess the safety, tolerability, and efficacy of the Zynerba drug called Zygel in pediatric and adolescent patients with autism spectrum disorder (ASD)

Organic cannabis company The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) reported revenue of C$3.06 million for the first quarter of 2020 ended March 31, 2020. The company also delivered a net loss of $73.4 million – a staggering amount when the revenues are so small, but it was at least an improvement over the fourth quarter’s net loss of $144 million.

Tilray’s (TLRY) wholly-owned subsidiary High Park Gardens will close its doors over the course of the next six weeks. the company said it expects to realize annualized net savings of approximately C$7.5 million. Tilray acquired Natura Naturals Inc., in a deal valued at C$35 million and has since operated it as High Park Gardens.
We have some stock housekeeping changes.

Aphria Inc.has decided to throw in the towel on its listing at the New York Stock Exchange and is moving to NASDAQ effective Friday, June 5, 2020, after the market close.

Aleafia Health Changes TSX Ticker Symbols from ALEF.to to “AH”. The OTC ticker remains the same.


Video StaffVideo StaffMay 22, 2020

4min5550

This week, Massachusetts said that recreational sales could begin on May 25th or Memorial Day. Sales can only be curbside and customers won’t be allowed in the stores. Great news for the Massachusetts cannabis companies.

Green Growth Brands filed for insolvency this week. The company was already forced to close its chain of CBDstores called Seventh Sense in March. Then the company faced huge debt payments and defaulted on its debentures this month. Now it has essentially had to throw in the towel. It’s one dispensary asset The+Source in Nevada remains open.

We have a few big earnings to hit upon this week, 

Trulieve Cannabis Corp. (OTCQX: TCNNF) reported that its revenue increased 21% sequentially to $96 million in its first quarter of 2020 ending  March 31, 2020, versus $79 million in the fourth quarter. This beat the Yahoo! Finance average estimate for revenue of $90 million for the quarter. Revenue increased 116% over last year’s first-quarter revenue of $44 million. Trulieve also delivered a net income of $14 million in the first quarter. 

Curaleaf reported revenue increased by 174% to $96.5 million for the first quarter while the net loss for the first quarter was $15.5 million, The net losses declined from the fourth quarter which was $26 million.

Harvest Health & Recreation Inc reported total revenue in the first quarter of $45.0 million, an increase of 134% from $19.2 million in the first quarter of 2019 The net loss was $20.0 million

Acreage Holdings said it expects to record a pre-tax, non-cash charge of $80 to $100 million in the quarter ending March 31, 2020. Its also selling Acreage North Dakota, where it operated one medical marijuana dispensary and selling undeveloped real estate on the island of Nantucket in Massachusetts. 

HEXO stock plunged this week after the company announced a $50 million offering. The units were priced at 90 cents a share, but they quickly sold off to 73 cents a share in Canadian dollars. 

Aurora Cannabis Inc. (NYSE: ACB) is buying U.S. CBD company Reliva, LLC for approximately US$40 million of Aurora common shares.

 


Video StaffVideo StaffMay 15, 2020

4min2940

We are in the thick of it for earnings season with a lot of big names reporting this week. Despite the raging pandemic, many of the companies reported that it wasn’t really impacting results, other things were, but not necessarily covid-19.

We’re just going to hit the high points here

GW Pharmaceuticals plc (NASDAQ:GWPH) delivered total revenue of $120.6 million for the first quarter versus last year’s $39.2 million. The net loss for the quarter was $8 million versus last year’s net loss of $50.1 million. New studies are delayed due to the virus.

GrowGeneration Corp. (NASDAQ:GRWG) continued to crush it with record first-quarter sales of $33 million, but then reported a net loss of $2.1 million as it paid out shares in new executive agreements

Charlotte’s Web delivered revenue of $21.5 million, slightly below last year’s revenue of $21.7 million for the same time period in 2019. However, this beat the Yahoo! Finance average analyst estimate of $20.78 million. The company also reported a net loss of $11.5 million versus last year’s net income of $2.3 million for the same time period. B2B sales were down, while DTC was up. 

Covalent Collective raised millions of dollars from cannabis investors and planned to buy a property called the Colorado 16 (CO16). Now the company is asking those investors for more money to fight a lawsuit over the acquisition and is accusing its former director Geoff Thompson of being a co-conspirator with the CO16 sellers. It also comes to light that there is now an FBI investigation.

Aleafia Health Inc. is doing a “bought deal” basis for gross proceeds of $13 million.

Psychedelic medicine company Champignon Brands Inc.   (OTCQB: SHRMF) is acquiring California based ketamine treatment company Wellness Clinic of Orange County Inc. It is a cash and stock deal with Champignon paying  $600,000, plus 1 million common shares of Champignon and 500,000 common shares of Champignon.


Video StaffVideo StaffMay 8, 2020

4min5570

The news flow has generally quieted down during the COVID crisis, but this week things ramped right back up.

MassRoots faced industry backlash after the troubled cannabis platform company announced receiving a Payroll Protection loan of $50,000 through a press release. Many pointed out that by receiving plant-touching cannabis company money, MassRoots can’t actually get this loan. While there were social media demands the company return the money, CEO Isaac Dietrich refused to back down. 

Iconic publisher High Times hired its third CEO in a year. Board member Stormy Simon was promoted to CEO in January after Kraig Fox quit after being CEO for 9 months. Simon has now resigned and former Green Growth Brands CEO Peter Horvath is now the CEO. The company just announced a big acquisition of 13 pending and operation licenses from Harvest Health who is flipping the properties it bought from Interurban Capital Group.

Cannabis REIT Innovative Industrial Properties, Inc. reported its results for the first quarter ending March 31with total revenues of approximately $21.1 million. This was a 210% increase from the prior year’s first quarter. Innovative Industrial also delivered a net income of approximately $11.5 million. The company also noted that is deferring rents for some of its tenants and using deposits to pay what is due as a result of the COVID virus.

Multi-state operator Jushi Holdings Inc.  (OTC:JUSHF) delivered its fourth-quarter and full-year earnings. The company’s fourth-quarter revenues increased 68% sequentially to $6.0 million but reported a net loss of $17.1 million. For 2019, the company delivered total revenue of $10.2 million with a net loss of $30.8 million. The company also said its expansion plans would be delayed due to the pandemic. 

 

Flower One Holdings Inc. closed its previously announced non-brokered private placement. The company said it raised $7.8 million.    

And finally, data analytics firm BDSA said that March sales grew in states like California, Oregon, Colorado, Maryland, and Arizona. But sales dropped in Nevada as tourists stayed away and in Massachusetts after the governor closed adult-use dispensaries.

That’s it for this week. Happy mothers day to all the canna moms out there.


Video StaffVideo StaffMay 1, 2020

3min6710

iAnthus Capital Holdings Chief Executive Officer Hadley Ford has resigned from his position after an investigation by the board’s special committee. The company’s President and Co-founder Randy Maslow has been appointed as the interim CEO. The company was responding to accusations from an online research company that brought to light some undisclosed loans by Ford. The special committee confirmed some of the accusations were true resulting in the resignation.

High Times is buying 13 planned and operational California dispensaries from Harvest Health & Recreation in a deal valued at $80 million. High Times will pay $5 million in cash and the rest in stock. The deal is planned to close by June and is part of an overall company strategy by High Times to pivot into dispensaries in order to capitalize on the High Times brand name.

Cresco Labs Inc. (OTCQX: CRLBF) reported fourth-quarter 2019 revenue of $41.4 million, up 144% year-over-year and 14% sequentially. The increase in revenue was driven by expansion into new markets and continued growth in the states where the Company operates.  Net loss for the fourth quarter for 2019 was $45.2 million, compared to a net loss of $4.4 million for the prior-year period.

The cannabis e-commerce online vendor BudTrader is going public in a reverse takeover with Lake Victoria Mining, Inc. (OTCPINK:LVCA). The privately held Encinitas, CA-based P5 Systems Inc. has owned and operated the BudTrader.com since 2016. LVCA is a control affiliate of Grapefruit (OTCPINK: GPFT), which holds California permits and licenses to both manufacture and distribute cannabis products.

The holding company known for its predilection towards psychedelics, Orthogonal Thinker, Inc. has closed on a total of $6 million in a series of oversubscribed seed rounds. The proceeds will be used for its EI Ventures and to begin Phase 1 Clinical Trials for Psilly, the company’s flagship, psychedelic product.

Canopy Growth said it was laying off another 200 employees. The company has cut 1,000 jobs so far as it restructures the organization. 

 



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