Marijuana Money Archives - Page 2 of 15 - Green Market Report

Video StaffVideo StaffMay 22, 2020

4min6380

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

4min3730

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

4min6470

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

3min7780

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. 

 


Video StaffVideo StaffApril 24, 2020

5min7780

The week started out with a very different 420 celebration as all events went online as virtual parties or fundraisers for various charities. The early indication seems to show that despite the virus, deliveries were strong and edibles were the big sellers. 

Driven Deliveries Inc. said it reached its third consecutive sales record and noted that during its 420 sales campaigns it exceeded previously set sales records by another 31%.

High Tide Inc. announced  it had approximately $789,000 in systemwide gross revenues from April 18-20, 2020 , which is a 79% increase over last year

Companies are still raising money despite the lockdown

The Flowr Corporation (OTC: FLWPF) raised C$20 million in a non-brokered private placement with the option to upsize the amount to C$25 million. The company said it expects to use the proceeds for general working capital purposes.

Fire & Flower Holdings Corp.  announced that it has entered into a commitment letter to obtain up to an aggregate amount of $10 million (with an option for an additional $5 Million)

Organigram established an at-the-market equity program that allows the Corporation to issue up to C$49 million  of common shares 

There are a couple of acquisitions to note

CB2 Insights (OTCQB: CBIIF) completed the terms of the purchase agreement of Colorado-based Rae of Sunshine Health Services.

Stillcanna Inc. (OTC:SCNNF) has signed a comprehensive Letter of Intent to acquire Sativa Group PLC, one of the United Kingdom’s (UK) first medical Cannabis Companies. 

Mineral Hill Industries Ltd. listed on the TSX Venture Exchange under the trading Symbol MHI, but the company had to unwind the capital it raised and step back form cannabis investments. 

 Neptune Wellness Solutions entered into an exclusive partnership with legendary wildlife conservationist, Dr. Jane Goodall to co-develop natural health and wellness products under the Forest Remedies™ brand, 

 Tetra Bio-Pharma Inc. said it received an (FDA) Orphan Drug Designation for secondary cannabidiol (CBD) formulation of its cannabinoid topical drug PPP004 in the treatment of epidermolysis bullosa.

Medicine Man Technologies Inc. has switched its name to Schwazze (pronounced SHHwahZZ). OTC ticker symbol SHWZ.

That’s it for this week, stay safe out there. 


Video StaffVideo StaffApril 17, 2020

3min9350

The mighty seem to have fallen this week in the cannabis industry so let’s get the bad news out of the way first. Canopy Growth made major organizational changes this week including its decision to end its New York hemp farming and just use its stockpile of CBD. It is stopping its growing in South Africa, Columbia and is closing another indoor facility in Saskatchewan. 

Aurora Cannabis’ stock fell so low that the company was forced to do a reverse split to jump start the price to  move over a dollar so it would be delisted by the NYSE. This was right after it issued shares. 

Organigram reported that its second-quarter net revenues fell to $23 million from last year’s $26 million. The company also said it was not in compliance with its debt covenants. 

CannTrust gots its cease trade order from the Ontario Securities Commission. The company decided to throw in the towel and quit fighting to get its licenses back. The lawsuits and expenses to ramp back up would have easily eaten up the war chest of $145 million.

It wasn’t all bad.

Aphria delivered a solid quarter with net cannabis revenue of $55.6 million in the third quarter, an increase of 65% from the prior quarter. The total net revenue was $144.4 million and the company beat analyst expectations. But they still pulled previous guidance due to the pandemic.

Despite tight capital conditions some companies managed to raise some money. Software company Greenbits snagged $23 million from Tiger Global and Casa Verde. 

Licensed producer Clever Leaves raised $14 million in a Series E round. 

In psychedelic news Biotech holding company Orthogonal Thinker, Inc. said that it has completed filing a provisional application for the Company’s flagship natural product, Psilly. This is the first step before filing for a patent.

That’s it for this week, stay safe out there. 


Video StaffVideo StaffApril 10, 2020

3min8091

Charlotte Figi came to fame as the sweet little girl who suffered hundreds of seizures a day from a rare condition called Dravet Syndrome. She was the patient that inspired the Colorado-based Stanley Brothers to create the cannabidiol (CBD) heavy version of cannabis to treat her condition back in 2011. Unfortunately, Charlotte has passed away at the age of 13. A family friend posted on Facebook “Charlotte is no longer suffering. She is seizure-free forever.” 

The DEA confirmed that the GW Pharmaceutical’s cannabidiol drug Epidiolex is no longer subject to the Controlled Substances Act. The DEA’s letter means that all federal controlled-substance restrictions have been removed for Epidiolex. This change takes effect immediately. prescriptions for Epidiolex will now be valid for one year and can be easily transferred between pharmacies.

Trulieve reported revenues of $252 million for 2019, a 146% increase over 2018’s revenue of $102 million. Net income for the year was $178 million. 

Harvest Health & Recreation reported Full-year revenue increased by 149% to $116.8 million in 2019 but the Net loss for the full year was an eye-popping $173.5 million 

KushCo Holdings, Inc. its Net revenue decreased 14% in the fiscal second quarter to $30.1 million. The net loss was approximately $44.4 million

The price of HEXO Corp. plunged another 22% after shareholders learned that the company announced a $40 million offering. The stock was falling from its close of 69 cents to roughly 54 cents, down from its 52-week high of $8.40. 

There are a couple of acquisitions to mention

Akerna acquired Trellis in an all-stock deal valued at $2 million. 

NewLeaf Brands Inc. (CSE: NLB) (OTC: NLBIF) has signed a letter of intent to purchase Colorado-based  Mydecine Group in an all-stock deal valued at $850,000.  Mydecine is a company that works with mushrooms. 

That’s it for this week. Everyone stay safe out there.


Video StaffVideo StaffApril 3, 2020

4min7730

The pandemic rages on with one CBD company getting a warning letter from the FDA for making unfounded claims. NeuroXPF said it could prevent COVID19 with no science to back up that claim. The FDA quickly responded and told the company to stop or risk legal action.

Despite the pandemic, there were several earnings announcements this week.

HEXO Corp. reported a staggering net loss of C$289 million for fiscal 2020 second-quarter on  net revenue of just $17 million.

Under the cover of darkness Zenabis Global Inc. (TSX:ZENA) delivered its earnings It was 1 am when the company  issued its press release reported that its 2019 net revenue was $66.5 million, while its net loss for the year was $127 million 

 High Tide Inc. reported that Revenue for the quarter increased by 173%, to $13.6 million and The company managed to trim its operating losses to $1.9 million.

MariMed Inc. quarterly revenues increased 50.9% to  $5.19 million, For the full year total revenues grew to approximately $45.6 million.  Net loss for the full year 2019 was $81.2 million due to the bankruptcy of its investment in GenCanna.

In Psychedelic News, MindMed signed a multi-year deal on LSD studies with the laboratory of Professor Dr. Matthias Liechti with the University Hospital Basel in Switzerland.

And Medicinal mushroom company Champignon Brands Inc. (CSE: SHRM) has entered into a definitive agreement to acquire Tassili Life Sciences Corp. in an all-stock deal. Tassili will receive 16 million shares, which is roughly C$7.3 million.

That’s it for this week. Everyone keep up with your physical distancing and stay safe out there.


Video StaffVideo StaffMarch 27, 2020

3min12111

The COVID19 pandemic continues to rage on. Unfortunately for Massachusetts recreational dispensaries, what had been the silver lining in the clouds, meaning increased sales, has been taken away. The state decided to stop all adult use cannabis sales and now only medical marijuana sales can take place.

Despite the virus crisis, companies are still making key decisions.

The Harvest Health and Verano deal is over. The deal which was once valued at $850 million when Harvest stock was trading at roughly $8 has been terminated. Harvest stock is now trading just over a dollar.  

Charlotte’s Web announced an agreement to acquire Abacus and the combined entity is anticipated to represent nearly 35% of U.S. CBD sales withing the Food/Drug/Mass Retail channel. The deal is valued at $99 million.

Curaleaf Holdings, Inc. said it will acquire three Arrow Alternative Care (AAC) dispensaries in the state of Connecticut. AAC operates three out of 18 total stores currently operational in the state. 

Organigram Holdings Inc. gave good news and bad news on Monday morning. The company stated that it had received approval from Health Canada for its expansion, but then also said its workforce would be reduced due to Covid-19. The company noted that not all of the jobs at its Moncton facility can be done remotely and that in order to protect employees it was expecting temporary layoffs. 

Private cannabis company Leafly laid off 91 employees this week amid the COVID-19 pandemic. 

And finally, last week Green Market Report published an exclusive story about Green Growth Brands not paying its laid-off workers. The company said it was able to find the money to pay the workers and noted that the resigning CEO did not collect a severance package.

That’s it for this week, everyone stay safe and healthy.


Video StaffVideo StaffMarch 20, 2020

2min9690

In some towns in California, cannabis was deemed an essential item allowing many dispensaries to remain open. If a dispensary didn’t have a drive-thru, then several got creative with online ordering and curbside service. Delivery companies were reporting they many quarantined people were taking advantage of the service. Sales have been strong at most places as consumers stocked up on cannabis supplies.

 Canopy Growth Corporation made the decision to temporarily close all corporate-owned Tokyo Smoke and Tweed retail locations across Canada. It is e-commerce only for now.

There were some earnings this week.

Hemp CBD company CV Sciences delivered total revenue of $53.7 million for the fiscal year 2019. During the fourth quarter of 2019, sales declined 34% to $9.4 million. CV Sciences said that it expects revenue to drop sequentially to the range of $6-8 million in the first quarter of fiscal 2020.

Aleafia Health Inc. reported a 22% sequential increase in quarterly net cannabis revenue to $6 million but the net loss was $9.8 million. For the fiscal year, net revenue was $16.4 million

And finally,

Acreage Holdings former president George Allen has invested in Indus Holdings. Indus said it received a $2.3 million loan with lenders that included Allen’s Geronimo Capital and Merida Capital Partners. The financing could go up to $14.5 million. It seems one of the plans for the new team is to bring the focus back to California after spreading out to Oregon and Nevada and also reducing the number of products. 



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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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