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StaffStaffMay 14, 2019
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2min1670

Columbia Care Inc. (NEO: CCHW) reported revenue of $12.9 million for the first-quarter of 2019, an increase of 45% over last year’s $8.8 million. The net loss of $25.1 million increased over last year’s loss of $9.7 million for the same time period. The company attributed the increase to its investment in its growth initiatives.

“Our strong year over year growth in 2018 has continued into 2019 with the launch of our state-of-the-art dispensary in Brooklyn as well as our entry into two of the largest medical cannabis markets in the United States, California, and Florida,” said Nicholas Vita, Chief Executive Officer of Columbia Care. “Access to the public capital markets will allow us to accelerate growth as we expand operations in 12 of our 14 existing jurisdictions and enables us to expedite the commercialization of our hemp-based CBD brands into traditional consumer retail channels. By leveraging our extensive patient data and institutional experience, we are committed to delivering products, services, and brands designed to meet the needs of consumers in markets where we believe we can have the largest impact.”

The adjusted EBITDA of ($10.4) million compared to ($2.3) million for the prior year period, reflected the company’s new market expansion, pre-opening facility expenses, organizational growth and expenses related to Columbia Care’s becoming a publicly traded company. Luckily the company is sitting pretty on pro-forma cash of $169.6 million including proceeds from the closing of the company’s go-public transaction on April 26, 2019 with zero debt.

Post Quarter News

Subsequent to the end of the first quarter 2019, Columbia Care has launched a new line of industrial hemp-based CBD products in conjunction with the opening of its newest dispensaries in Brooklyn, NY and San Diego, CA. Additionally, since the beginning of the year, Columbia Care has entered into lease agreements for dispensaries in Delaware, the District of Columbia and 13 new facilities in targeted markets in Florida.


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5min2420

Located along the central coast of California you’ll find farms of berries, lettuce, and garlic. That is, until you hit Sparx Cannabis in Monterey County. The family-owned and vertically-integrated cannabis lifestyle company has recently announced the acquisition of multiple licenses that allow the company to cultivate and distribute cannabis and cannabis-derived product across the state of California.

Who is Sparx Cannabis?
Sparx Cannabis sets out to be the premium flower producer for the everyday cannabis consumer. Dedicated to being a leader in the industry, the company plans to do so by implementing multiple unique and sustainable practices throughout its technologically-advanced and solar-powered greenhouses.

“We have some of the most advanced technologies and greenhouses on our Sparx Cannabis properties, and these licenses will help us not only create and grow our products but distribute it statewide,” said Sparx Cannabis Co-founder Chandler Halpern. “We have incredible locations in one of the most fertile areas in the entire country to grow and greenhouses that are unlike anything that has been built on the central coast of California. With these licenses, we are planting our flag in the rapidly evolving cannabis industry.”

With the distribution licenses, Sparx Cannabis plans to sell various high-quality sativa and indica-based products through dispensaries state-wide.

Environmentally-controlled automated cannabis facilities

Sparx Cannabis has over 100,000 square feet of cultivation space that is divided between two environmentally-controlled automated cannabis facilities. The first, Harkins Grow, is currently in the fifth harvest and each harvest has been producing approximately 600 pounds of high-quality cannabis flower. At Harkins Grow, the facility also has the ability to produce clones.   

At this cultivation site, the 3,800 plants are trimmed by hand to ensure the high standards Sparx Cannabis has for its products is met. The site also utilizes state-of-the-art drying containers that are able to dry the product more efficiently than other methods on the market.

Sparx Farms is the second sustainable cultivation site the lifestyle cannabis company operates. This location has one of the newest state-of-the-art greenhouses and over 10,000 clones. The company plans to harvest every two weeks.

Along with producing quality cannabis flower for California, Sparx Cannabis has a commitment to the community. The company looks forward to creating jobs in the Monterey County and adding open positions to the booming industry. According to a recent report more than 10,000 jobs will be added to California’s cannabis market in 2019.

The Sparx Cannabis Plan for the Future

Sparx Cannabis Co-founder and President Jared Helfant said, “The newly acquired licenses for cultivation and distribution will allow Sparx Cannabis to truly expand our presence in the cannabis sector with the high-quality cannabis flower that we strive to provide to our customers. With these licenses we have acquired, we are excited to demonstrate to the cannabis community the quality of our products and further establish our everyday cannabis lifestyle brand.”

In addition to producing high-quality cannabis for the everyday consumer, the company wants to eliminate the stigma that has followed the industry for decades. They plan to do so by being a community-focused company that strives to be as eco-friendly as possible. They are proud to be one of the first farms to have technologically-advanced greenhouses and state-of-the-art LED lighting that provides the highest-quality nutrients for the plant.

 


StaffStaffApril 10, 2019
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5min1900

New Funding to Support Expansion of Cannabis Operations and Investments in Latin America and Europe

NEW YORK, April 10, 2019 /AxisWire/ Northern Swan Holdings, Inc. (“Northern Swan” or “the Company”), an investment firm focused on making transformative investments in the international cannabis industry, announced today the successful completion of a USD$58 million Series D financing, bringing the total amount of capital raised to date to USD$96 million. The oversubscribed round, which represents the largest capital raise to date for a Latin American-focused cannabis operation, was led by leading global institutional investors with a demonstrated track record in the industry.

“The closing of our Series D round validates our investment thesis, providing the capital necessary to fund rapid expansion and to capitalize on our key competitive advantages as a first-mover in the global medical cannabis market. Federally compliant in all jurisdictions in which we operate, Northern Swan is well-positioned to expand and diversify our cultivation assets as well as accelerate our mission to revolutionize the trade flows in the global medical cannabis industry,” noted Kyle Detwiler, CEO of Northern Swan.

Northern Swan will use the new funds to expand its existing Latin American operations, to invest in new low-cost, large-scale cannabis cultivation and processing centers and to build out distribution channels and brands in Europe, Latin America and North America. Northern Swan has invested in several companies spanning the global cannabis value chain including Clever Leaves, a leading vertically integrated licensed producer of medical cannabis in Colombia, Cansativa GmbH, a German cannabis distribution company and Lift & Co., a Canadian marketing and data company.

Cowen served as exclusive placement agent for the financing.

About Northern Swan
Northern Swan is an investment firm focused on transformative investments in the international cannabis industry in geographies where it is federally legal. With offices in New York, Toronto, Bogota, and Frankfurt, Northern Swan invests in and assists emerging companies in developing low-cost production capacity and distribution capabilities to improve distribution globally and generate brand value. Prior to founding Northern Swan, its management team has collectively invested in excess of $3 billion of capital at Blackstone, KKR, and Och-Ziff.

Forward-Looking Information
This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management’s reasonable assumptions, the Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors.

Media Contact:
Gretchen Gailey
KCSA Strategic Communications
+1 347-487-6186
ggailey@kcsa.com


William SimpsonWilliam SimpsonJuly 17, 2018
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3min7450

With President Trump signaling his likely support for the bipartisan Congressional effort to ease the U.S. ban on cannabis in legal markets, the country as a whole could benefit immensely.

By giving states the rights to determine the best course with cannabis, business valuations could go through the roof. For example, under the current laws, Golden Leaf Holdings, a cannabis company with cultivation, production, and retail operations that is publicly traded in Canada, is unable to be publicly traded on the Nasdaq. Conversely, Canadian cannabis companies are already allowed on the Nasdaq, giving them a significant advantage in the globally booming market.

The most significant progress for businesses would come with the easing of Internal Revenue Code 280E, which has, by and large, blocked cannabis businesses from tax deductions, credits and banking in general. The passing of this bill would be a tremendous step for states with legalized markets. American cannabis entities struggle daily to make retail an efficient platform, while barely breaking even under the current regulations. The Treasury Department demanding money from a market they deem illegal needs to end.

Most significantly, ending the federal ban could represent a step in the right direction towards addressing systemic criminal justice issues that unjustly target minorities, which is far more important than any business-related outcome.

This measure is far from a single, fix-all solution. Even if the bill became law tomorrow, businesses wouldn’t be able to reap the benefits right away. If cannabis remains a Schedule 1 narcotic, banks will continue to be hesitant to opening accounts for businesses. The same goes for standard business practices like shipping across state lines.

Furthermore, nothing federally-approved changes local and state laws. This means issues stemming from occupancy, zoning, packaging and other regulations will still loom over businesses. Too many voices in cannabis could leave the industry at the whim of political agendas and powerful competitor lobbies, including tobacco, alcohol and pharma.

While the bipartisan bill does provide the U.S. a step in the right direction for both the cannabis industry and its citizens, we must remember that it still is just one incremental step in the process. Plenty of work is left to be done on federal, state and local levels to revise regulations for businesses and citizens in states with legal markets. That said, the possible passing of the bill should be championed for the huge victory it would represent. With hope, it would be far from the last one to come.

 


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4min12592

Updated Streaming Video Platform Now Offer Free Access to 100’s Of Hours of New Expert-Led Cannabis Education Programs and New Original Content

 

Ventura, May 22, 2018/AxisWire/—Wanting to learn all that is possible about cannabis just became immensely easy.  The nation’s #1 cannabis learning platform, Green-Flower.com, is live and FREE with a brand-new streaming video platform and new library of original content designed to help people understand everything about cannabis.

With improved, more enriched entertaining video content featuring 600+ world renowned cannabis experts, users will discover an endless resource of facts and credible information about cannabis. Featuring a new “Cannabis for Ailments Series” designed to help people who are suffering from different health conditions like cancer, chronic pain, depression, anxiety, epilepsy, PTSD, Diabetes, ADD, and more, this new original series will safely and effectively show people how cannabis can help with their specific conditions.

“People around the globe are very interested in understanding the benefits of cannabis. Unfortunately, very few have enough trustworthy information about how it actually works for different ailments and conditions. Green Flower gives people unlimited access to renowned cannabis experts, doctors, scientists, and researchers delivered via video so you can watch anywhere in the world, right from the comfort of your home,” said Max Simon, CEO of Green Flower.

Other expert-led content being introduced on the new Green Flower platform includes “How to grow your own cannabis”, “Cooking with cannabis”, “Cannabis 101” “Understanding cannabis products”, “How cannabis interacts in the body”, “CBD 101”, and much more.

“Although there are changes taking place globally, with millions of people now gaining legal access to cannabis, it remains a fact that there continues to be an enormous amount of misconceptions, bad information, and stigma when it comes to marijuana,” said Max Simon, CEO Of Green Flower. “That’s why we created this streaming video platform. To stop the ignorance, spread trustworthy knowledge, and help people improve the quality of their lives through cannabis.”

New to the platform, and recently announced, is the “Showcases” segment. A place for cannabis companies to explicitly talk about their products and services without fear or censorship by social media platforms. Created for cannabis entrepreneurs and businesses seeking to ‘’showcase’’ their particular cannabis products or services, “Showcases” will allow cannabis companies a marketing platform that’s targeted, safe, and effective to advertise their solutions and reach their customers at scale.

Media Contact: Sabrina Propper; Director of Publicity: sabrina@green-flower.com

Established in 2014, Ventura-based Green Flower is the world’s largest video platform, maintaining 150+ affiliates to date.  Dedicated to introducing only trusted cannabis knowledge, the platform boasts over 1,000+ hours of high-quality video content featuring 600+ top cannabis industry experts, doctors, scientists, entrepreneurs, and thought-leaders.  Serving both consumers and professionals, Green Flower is the go-to platform for understanding every aspect of cannabis today.

 


William SumnerWilliam SumnerMay 8, 2018
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3min5170

Today, Aurora Cannabis Inc. (ACB) announced its financial results for the third fiscal quarter of 2018, ending on March 31, 2018.

The company completed the acquisition of CanniMed Therapeutics, one of the largest medical cannabis providers in Canada. Additionally, the company also completed strategic investments in Liquor Stores NA and The Green Organic Dutchman, in preparation for the launch of adult use cannabis sales in Canada later this summer.

“With production underway at Aurora Vie and Aurora Sky, yield enhancements being implemented at CanniMed, and significant new capacity coming online through 2018, we are targeting further, accelerated growth in subsequent quarters.,” commented Aurora CEO Terry Booth.

The company saw a large increase in the number of medical cannabis patients it served, surging 45,776 patients and representing a 249% increase. The sudden influx of medical cannabis patients was for the large part due to the company’s acquisition of CanniMed Therapeutics, which contributed 21, 327 patients.

The cost per gram to produce cannabis increased by 8.5%, from $1.41 to $1.53. Likewise, the cash cost of sales per gram also increased by 3.4%, from $1.74 to $1.80. Despite the increase in production and sales costs, the average selling price per gram declined by 4.4% to $7.99. Unsurprisingly, gross margins on cannabis produced by the company declined from 73.8% to 66%.

Revenue for the quarter was $16.1 million, representing a 37.6% increase compared to the previous quarter. Sales from cannabis rose by 11% to $10.8 million, with the majority of the coming from the Canadian market ($6.3 million). As of March 31, 2018, the company has approximately $338.5 million in working capital, compared to $170.1 million on June 30, 2017.

Despite the increase of revenue, losses for the company were quite high. The company reported a net loss of $20.8 million. The quarterly loss was largely attributed to share-based payments and the costs associated with acquiring CanniMed Therapeutics. Aurora ended up paying a premium for CanniMed as the hostile takeover caused the price of the acquisition to rise. With such high losses, Aurora has placed a pretty big bet on their acquisitions; leaving many to wonder when, or if, they will start to see returns.


William SumnerWilliam SumnerApril 9, 2018
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4min6460

Here are the today’s cannabis news briefs for April 9, 2018:

Innovative Industrial Properties
Innovative Industrial Properties (IIPR), a provider real estate capital solutions for the medical cannabis industy, announced today that it has closed on the acquisition of a 89,000 square foot property in Scranton, Pennsylvania, for a price of approximately $5.8 million. The tenant of the property is a subsidiary company owned by Vireo Health, Inc., and is expected to reimburse Innovative approximately $2.8 million for improvements to the building. “We are very pleased to close on this third transaction with Vireo Health in Pennsylvania, projected by many to become one of the largest medical-use cannabis markets in the country,” said Ben Regin, Director of Investments and Finance for Innovative in a statement.

Canopy Growth Corporation

Canopy Growth Corporation (WEED) announced a partnership between its affiliate and biopharmaceutical research arm Canopy Health Innovations and drug research pioneer Lady Amanda Feilding and the Beckley Foundation (“Beckley”). Named Beckley Canopy, the partnership will work towards the research and development of clinically approved cannabis-based medicines. All profits from the work will go towards scientific research and policy work of the Beckley Foundation.”We are delighted to have formed this partnership with Beckley. They have been leading the way in drug policy reform and cannabis research for more than two decades and we feel that our skill-sets complement each other perfectly. This is a unique opportunity to expand our operations, conduct world-class research, and meet the needs of doctors and patients around the world,” said Canopy Health CEO, Marc Wayne.

Namaste Technologies Inc.
Namaste Technologies Inc. (N) announced that it has signed an amended Letter of Intent (LOI), dated April 4, 2018. Under the amended LOI, 2624078 Ontario Inc. will apply for an ACMPR license to cultivate medical cannabis and to sell medical cannabis oil. If the application is approve, the company will be able to test and develop its own cannabis strain for Cannmart. Additionally, 2624078 Ontario Inc. will rename itself Infinite Labz. “We’re pleased to have signed the amendment to the LOI as per our discussions with Namaste. We believe that our company and Namaste will see great value in this partnership and in operating both the LD and LP license from the same facility. There are many synergies that are evident between both parties and the addition of an ACMPR license to the facility at 7 Canso Road will solidify our position becoming a premier provider for medical and recreational cannabis oils and we look forward to a bright future with Namaste,” commented 2624078 Ontario Inc. president, Daniel Stern.


William SumnerWilliam SumnerFebruary 22, 2018
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3min8660

On Feb. 22, 2018, Freedom Leaf Inc. (FRLF) announced that it had filed its 10Q for the quarter ending December 31, 2017, yet the company included no financial information in the press release. In the filing, the company reported revenue for the quarter at $6,332 versus last year’s $448,566. Freedom Leaf delivered a net loss of $742,413 for the quarter versus last year’s loss $111,361 for the same time period.

In the filing, the company stated, “As of December 31, 2017, the Company had $0 in cash. We do not have sufficient resources to effectuate our business.” It went on to say, “We will have to raise funds to pay for our expenses. We may have to borrow money from shareholders or issue debt or equity or enter into a strategic arrangement with a third party. ” The company has an accumulated deficit of $6.3 million. It has also been issuing stock to pay for services, which is never a good sign.

Management’s Statement

The company also announced that it would soon launch its CBD product line, Hempology, in 10 US states; including California, Nevada, Washington, Oregon, Texas, Michigan, Georgia, and Alaska.

“Thanks to the efforts of our new CFO and our team, we now expect to move quickly into a new phase of the Company’s development as we continue to acquire and integrate additional revenue-producing companies,” said Freedom Leaf President and CEO, Clifford Perry, in a statement. “This 10Q is only a stepping stone to our goal to become debt free and move forward with our new revenue streams: Hempology and Leafceuticals.”

To meet production demands, the company’s wholly owned division, Leafceuticals, Inc. operates a NuAxon industrial CO2 supercritical extraction facility in North Las Vegas. So far the facility has produced 12 kilos, valued at $200,000, and expects to replicate those figures on a monthly basis.

The company is also the publisher of Freedom Leaf magazine. For six months ending December 31, 2017, the magazine only recorded revenue of $5,826, while the costs related to the magazine were $68,850.

Stockwise, the company has been on a roller coaster over the last month. In mid-January, Freedom Leaf’s stock began to soar, peaking out at $0.43 per share before taking a precipitous tumble down to $0.22 per share. During that peak period, the company retired approximately $167,748 in debt and accrued wages through the issuance of approximately 5.4 million common shares.


Debra BorchardtDebra BorchardtNovember 24, 2017
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6min12410

Canadian-based Aurora Cannabis Inc. (ACBFF)  has gone a spending spree as the company continues to make acquisitions. Yesterday, while all of us Americans were bonding over turkey, Aurora announced it had entered into a binding share purchase agreement to acquire H2 Biopharma Inc.

The Lachute, Quebec-based H2 is currently completing a purpose-built 48,000 square foot cannabis production facility, less than an hour from Montreal, and near the Pierre-Elliott Trudeau International Airport. The Lachute Facility is expected to be completed by the end of the year and is projected to produce 4,500 kilograms of high-quality cannabis per year. The facility is located on 46 acres of land, which H2 has the right to acquire for $136,000. The Lachute facility has access to ample low-cost power, water and infrastructure to support a very significant capacity expansion – up to or beyond the scale of the Company’s 800,000 square foot Aurora Sky facility, currently under construction near Edmonton International Airport.

“This is another outstanding transaction that further extends Aurora’s lead in establishing advanced-technology, ultra-efficient, low-cost production via purpose-built facilities,” said Terry Booth, CEO. “The Lachute Facility, which is 80% complete and has the land and utilities required for significant additional expansion, is fully consistent with the Aurora Standard and will be instrumental in delivering high-quality products for the Quebec, Canadian and overseas markets.”

This latest Aurora acquisition will be the Company’s fourth production facility in Canada – and the second site in Quebec, in addition to its 40,000 square foot production “Aurora Vie” facility in Pointe-Claire, on the island of Montreal.

Larssen Acquisition

Aurora also announced that it has signed a definitive agreement for the acquisition of 100% of the issued and outstanding shares of Larssen Ltd., a Canadian company that has consulted on the design, engineering, and construction oversight of many greenhouse cultivation facilities.  Larssen will be integrated into a newly incorporated subsidiary, Aurora Larssen Projects Ltd. and will focus on providing a turn-key service offering to Aurora and its domestic and international partners.

Booth added, “The acquisition of Larssen is an immediately accretive, high-margin revenue generating opportunity that also extends our technological leadership in the cannabis sector. We know Thomas and his team very well, as they have been instrumental in the design and engineering of our revolutionary Aurora Sky facility. This will help make the integration of Larssen with Aurora seamless. The establishment of ALPS will add significant capacity to our project execution team, enabling us to further accelerate the expansion of our global presence.”

Hempco Deal Completed

Aurora Cannabis announced that it has completed a non-brokered private placement with Hempco Food and Fiber Inc. for gross proceeds of $3.2 million that was originally announced in September. In relation to the placement, Hempco issued 10,558,676 units, at $0.3075 per unit, to Aurora. According to the company statement, “Each unit consists of one Hempco common share and one non-transferable common share purchase warrant. Each Warrant entitles Aurora to purchase one additional Hempco Share at a price of $0.41 until the second anniversary of the closing date. Each Warrant includes an acceleration clause, providing that if at any time beginning four months and one day after the date the warrant was issued the volume weighted average price per Hempco share on the TSX Venture Exchange (“TSXV”) exceeds $0.65 for a period of 30 consecutive calendar days, Hempco will have a limited right to accelerate the expiration date of the Warrants.”

This all comes as Aurora formally launched its hostile takeover bid for CanniMed Therapeutics. CanniMed had said earlier that while Aurora had expressed interest in a takeover, it hadn’t received a formal request. Aurora disputed that, but today issued a statement saying, “Notice and advertisement of the Offer was placed in the November 24, 2017 edition of the Globe & Mail, and a takeover bid circular will be mailed to CanniMed shareholders. In addition, Aurora will file the offer and takeover bid circular and related documents on SEDAR. The Offer Documents will also be available on Aurora’s website at www.auroramj.com and shareholders are invited to visit cannimed.auroramj.com for further information.”

 



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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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