Videos Archives - Green Market Report

Video StaffVideo StaffSeptember 16, 2019

1min1010

The Green Market Summit held its first event titled “The Economics of Branding” in Los Angeles, California last week. Sponsors and attendees were both thrilled with the networking and business opportunities the event afforded. Many described the keynote interview between PLUS Products CEO Jake Heimark and CNBC’s Jane Wells as one of the best ever. One attendee remarked, “I’ve gone to so many of these conferences, but I actually walked away from this one having learned something new.”

Green Market Report will be publishing videos of the panels over the next two weeks. Stay tuned for more videos and subscribe to our YouTube channel.


Video StaffVideo StaffSeptember 6, 2019

3min2790

Next week is the Green Market Report’s first Summit in Los Angeles. We’ll be doing a deep dive on the topic of cannabis branding. The number one selling product in California, PLUS products will be talking with CNBC’s Jane Wells, we’ll have singer Melissa Etheridge speaking about her company Etheridge Farms and on Day 2 Athletes for Care will be bringing several professional athletes who have started their own cannabis companies. You can still get tickets at www.greenmarketsummit.com.

Now on to the news,

Markets were closed on Monday to observe the Labor Day holiday.

Aurora Cannabis (ACB) sold off its remaining shares in The Green Organic Dutchman giving the company roughly $86 million. Aurora had a 50% internal rate of return for the investment. It no longer owns any shares, but still has over 16 million warrants to purchase more shares. TGOD also said this week that it received approval from Health Canada to expand operations in its new greenhouse in Hamilton Ontario.

Medicine Man Technologies, Inc. had a very busy week for acquisitions. The company is going to acquire Colorado Harvest Company which has two dispensaries in Denver and one in nearby Aurora. They are paying $4 million in cash and $8.5 million in Company stock. Then after they announced that, Medicine Man said it was buying four additional dispensaries in Colorado for $36 million. Still not done, it said it would buy five dispensaries operating under the Starbuds brand in Colorado paying $31 million for the group.

 Diego Pellicer bought a dispensary in Denver that did over $8 million in sales in 2018.

 GrowGeneration picked up Grand Rapids Hydroponics located in Michigan and now has four locations in the state.

WeedMD did a bought deal for 10,000 convertible debentures netting the company $10 million.


Video StaffVideo StaffAugust 30, 2019

2min2960

We have just two weeks to go until the Green Market Summit called The Economics of Branding in Los Angeles on Sept. 11-12. Go to www.greenmarket summit.com for tickets. You’ll see CNBC’s Jane Wells interview PLUS products CEO Jake Heimark talk about the importance of creating your brand, while singer Melissa Etheridge makes an appearance on a panel about celebrity branding. You won’t want to miss this deep dive conference.

Ok, moving on to the news. There were lots of earnings this week as we close out summer and from many of the major players in the industry. We’ll hit the highlights here.

Green Thumbs Industries of GTI said its second-quarter revenue increased 228% to $44.7 million and jumped 60% sequentially. GTI also closed this week on its purchase of NY cannabis company Fiorello Pharmaceuticals. Still, GTI delivered a net loss of $22.2 million versus a net loss of $9.7 million in the first quarter.

TILT Holdings delivered revenue of $39 million in its second-quarter but also reported a whopping net loss of $48.9 million.

Curaleaf Holdings reported revenue of $35.25 million in its second-quarter as its net loss came in at $24.5 million.

iAnthus delivered second-quarter revenues of $19.2 million, an increase of 100% as the company trimmed its net losses to $9.3 million from $16.5 million in the first quarter.

Slang Worldwide delivered second-quarter revenue that increased sequentially by 44% to $7.2 million better yet, Slang reported a net income of $17.5 million in the quarter versus a net loss of $13 million for 2018 as options valuations increased.

Tilray announced it was buying the Alberta dispensary chain Four20 in a deal valued at C$110 million. Four20 has 6 licensed retail stores and an additional 16 locations available.

Hound Labs raised $30 million for a dual-purpose breathalyzer that tests for alcohol and cannabis.

This weekend is Labor Day and markets will be closed on Monday. Everyone enjoy your three day weekend.


Video StaffVideo StaffAugust 23, 2019

3min2980

Just a heads up, our next conference is in Los Angeles September 11-12. It is called The Economics of Branding and it will do a deep dive into all the facets of branding in the cannabis industry. Go to www.greenmarketsummit.com for more details and to buy tickets.

The bad news just keeps coming for CannTrust. This week the company said that Ontario informed them that some of its products are “non-conforming” under the Master Cannabis Supply Agreement. It has opted to return the product valued at C$2.9 million. CannTrust did note that Health Canada has not ordered a recall of its products.

iAnthus secured a $50 million loan, which will be doled out in two tranches of $25 million each with similar terms. iAnthus said it will use the money for its expansion efforts in Florida and the company’s new Be. retail locations in NevadaNew Jersey and New York. The company is expected to report its second-quarter earnings on August 27.  Last month the company noted that its CBD For Life products will be sold in Dillards Department Stores.

BDS Analytics closed on a $7 million round of financing as did Helix BioPharma.

There were still some earnings coming out this week.

Cresco Labs reported that its revenue rose 253% to $29.9 million year over year and 42% sequentially. The net loss was $3.9 million with the blame going to tax items related to acquisitions.

TerrAscend reported second-quarter revenue of $17.6 million and raised guidance for the full year to $141 million from $135 million. Having said that the net loss jumped to $21 million from last year’s $5 million.

Indus Holdings reported second-quarter revenue rose 183% to $9.7 million over last year and a 51% jump over the first quarter.

ManifestSeven acquired the Haven dispensary in Santa Ana, while Acquired Sales is acquiring CBD Lion.

Some stock moves to cover for this week:

Organigram got approval from the Toronto Stock Exchange to begin trading this week and will keep the symbol OGI.

Cansortium began trading on the OTCQB with the symbol CNTMF along with Empower Clinics using the symbol EPWCF.

Valens GroWorks began trading on the OTCQX exchange this week with the ticker VGWCF.


Video StaffVideo StaffAugust 16, 2019

3min6200

We are in the throes of earning season and in the midst of all this information, the broader market went into a tailspin as equities slid over 800 points one day and bonds signaled recessionary fears.

It wasn’t much better over in the cannabis sector either.

Canopy Growth Corporation (CGC) stock dropped over 10% after the company announced first quarter with net losses of C$1.28 billion which dwarfed last year’s losses of C$91 million. The loss was attributed to a non-cash charge of $1.2 billion in Canopy’s extinguishing warrants related to the Constellation Brands Inc. (NYSE: STZ)  investment.

Zenabis Global Inc. (TSX:ZENA) (OTC: ZBISF) reported that its second-quarter net revenue rose 78% to $25 million from last year’s $4.1 million but The company also delivered a net loss of $18.5 million. Zenabis said that it expected net cannabis revenue to be in the range of $10 to $12 million but the actual net cannabis revenue for the period was $7,2 million.

Charlotte’s Web Holdings, Inc. revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. Unfortunately, the net income fell to $2.2 million from last year’s $3.7 million

Tilray’s second-quarter revenue increased 371.1% to $45 million but the company reported a net loss of $35.1 million compared to a loss of $12.8 million last year.

MedMen (MMNFF) reported that its revenue rose 15% sequentially to $42.0 million not counting pending acquisitions. The company also had to amend its deal with Gotham Green to reflect the company’s much lower stock price.

One of the brightest earnings for the week was Trulieve which reported revenue of $57.9 million, an increase of 30% sequentially and net income of $57 million. Not a net loss!

CannTrust  said it received a report from Health Canada telling the company that “Its manufacturing facility in Vaughan, Ontario has been rated non-compliant with certain regulations.” The stock is dropped over 25% on the news that the company has continued to have issues with facilities failing inspections.


Video StaffVideo StaffAugust 9, 2019

3min6150

Colorado Department of Revenue’s Marijuana Enforcement Division (MED) released its 2018 annual update for the fifth straight year. The adult-use market accounted for 66% of the total pounds of marijuana flower sold to consumers in 2018 and accounted for 86% of the total units of edibles sold to consumers

It was a busy week for earnings announcements from some major cannabis companies. British biotech firm GW Pharmaceuticals pls reported second-quarter net sales of $68.4 million of the company’s cannabis-related drug Epidiolex. For the first half of 2019, GW Pharmaceuticals has sold $109 million of the drug. The good news sent the stock higher by over 10% in aftermarket trading and the better news is that 12,000 patients are taking this drug and describing good results.

Columbia Care reported that its second-quarter revenue rose 102% to $19.3 million year over year and that was up 50% sequentially.

GrowGeneration reported that its revenue was up 172% year over year to $19.5 million.  same-store sales were up 23% over last year as well.

CV Sciences reported revenue of $16.9 million for the second quarter of 2019, an increase of 36% over the same quarter in 2018. 14 consecutive quarters of sequential revenue growth.

Cronos Group reported that its Net revenue jumped 202% to $10.2 million in the second quarter. A gain from the revaluation of derivatives caused the company to record a net income of $250 million

In acquisition news, TerrAscend has agreed to acquire 100% of the equity of Ilera for a total consideration of between US$125-$225 million, paid in a combination of cash and TerrAscend shares.

LeafLink raised $35 in a Series B round led by Thrive Capital.

Henry’s Original (Henry’s) closed on an $11million Series B investment led by New York-based private equity firm Merida Capital Partners.

Medical marijuana is now legally available to Louisiana patients, with Baton Rouge’s Capitol Wellness Solutions recording the state’s first-ever regulated medical-cannabis sales transaction at the dispensary’s grand opening today.

 


Video StaffVideo StaffAugust 2, 2019

2min6611

The week New York state Governor Cuomo signed a law that reduces the penalties for cannabis possession. NY actually decriminalized small possessions back in 1977, but that didn’t stop law enforcement from arresting over 300,000 people since then with the majority of those people being black or brown. This law reduces possession to a fine and allows some people to be able to expunge their records of previous marijuana charges.

CannTrust announced it was considering selling the company this week. It has been nonstop scandals for them since they admitted to growing cannabis in unlicensed rooms. Top executives apparently knew about it and condoned it. The CEO was terminated “with cause” just last week. Plus, there is the talk of insider trading among board members who may have known about the illegal grows. No word yet on any interested parties.

Speaking of beleaguered cannabis companies. Harvest Health entered a deal to secure a loan of $225 million at 8% interest. The company said it will use the money to fund expansion. Harvest Health has also come under fire for its aggressive expansion moves as Ohio questioned the company’s ownership claims with regards to minority status. All of those licenses are on hold and may be revoked. Harvest may also lose its license for a facility in Carmichael in Pennsylvania.

TILT Holdings refiled amended and restated management discussion and analysis documents for the year ending in December 2018 and the quarter ending March 2019. That company caught a lot of flak for taking a $500 million write-down weeks after going public.

 

SOL Global reported net income of $94.9 million for the year ending March 2019. Most of the money came from the company’s sale of its LATAM assets which went for $297 million.

Nextleaf Solutions common shares began trading on the OTCQB market this week using the symbol OILFF, while on last Friday CannBioRx began trading at the NASDAQ after being acquired by KBL Mergers. The symbol will be KBLM.


Video StaffVideo StaffJuly 26, 2019

4min3750

This is the marijuana money for the week ending July 26, 2019.

This week the FDA sent a warning letter  to Curaleaf saying that the company made unsubstantiated health claims on its CBD products. “You should take prompt action to correct the violations cited…” reads the letter. “Failure to promptly correct these violations may result in legal action without further notice, including, without limitation, seizure and injunction.” Curaleaf has 15 days to respond to the FDA’s letter and take corrective actions. CVS then decided to pull the products from its shelves and this comes just 4 months after CVS made a big deal about selling the products. Curaleaf stock plunged from roughly $8 to below $7 in one day.

Sundial Growers, an early-stage Canadian cannabis producer, announced today the terms of its initial public offering (IPO). Hoping to raise $130 million, the company is offering 10 million shares ranging in price between $12 and $14

Amplify ETF’s announced the launch of Amplify Seymour Cannabis ETF (NYSE Arca: CNBS), an actively managed ETF covering the cannabis industry. Tim Seymour, CIO of Seymour Asset Management and CNBC Fast Money co-host, will act as the fund’s portfolio manager.

The Flowr Corp. was originally thought to be listing shares last week on the NASDAQ Marketplace, but that was shelved. Instead, the company announced on Monday that it agreed to sell 10 million units of the company at a price of C$4.10 per unit for approximately C$43 million in proceeds.

CannTrust (CTST) stock took another turn for the worse after it was disclosed that the top executives were very well aware of the illegal grows happening in the companies unlicensed rooms.

After taping the video, this news was announced: Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF) said that the international tobacco company Imperial Brands PLC will make a $123 investment in the company through a convertible debenture.


Video StaffVideo StaffJuly 22, 2019

9min5290

This interview was recorded on June 25, 2019, at the MJ Link Micro Investor conference in New York. 

Debra Borchardt, Editor-in-Chief, Green Market Report:

Dixie Brands Inc. (OTCPK:DXBRF) just got approved for Oklahoma, its sixth state. Joining me now is the CEO, Chuck Smith. So, very exciting, Oklahoma, your number six state and a pretty good patient population there, right?

Chuck Smith, CEO Dixie Brands:

It sure is, Debra. It’s about 130,000 patients, very broad qualifying conditions, so that makes it kind of perfect for a company like ours, has a very big product portfolio. We can really serve a lot of different patient needs with our existing product set.

Green Market Report

Your product, I have to say, it tastes good. That’s one of the issues that we have with beverages.

Chuck Smith

So, you could say it tastes great.

Green Market Report

Ok, it tastes great. So many of the cannabis beverages, they just make me cringe, and they taste awful, but your product doesn’t. It tastes good.

Chuck Smith

Well, thanks very much for that. I think all of our products taste really good, and that’s something we’re proud of, but that’s also why we’ve been around for nine years. Having nine years to actually perfect the formulations, understand how to work with the oil, understand how to bring the right kind of flavor profiles together in a great responsible way, but also attractive packaging, I think that’s a cornerstone of Dixie Brands. As we evolve, the consumer is demanding that too. We have to continue to evolve that technology to make sure that the products are consistent, reliable, and taste great in every single state that we market it to.

Green Market Report

You recently reported your earnings. Your revenue’s phenomenal. It was up 137%, so your sales are growing tremendously. I did want to ask you about your net losses, $6.6 million. Quite high. A lot of that was compensation, but to your point, you said the company’s been around for nine years. You just went public, so a lot of people put in a lot of hours to get this company to the point of going public, right?

Chuck Smith

Sure, but to be clear on the compensation, the number is a component of that, and this is the crazy thing, unfortunately, I guess, about being a public company. When we issue stock options to our employees, we actually have to capture the expense of those options. It doesn’t mean that the employees are out now driving Ferraris because they’re locked up for a three-year vesting schedule, but the company has to actually book that loss associated with those options that we gave. So, that’s really a non-cash expense, but it’s expense nonetheless that we’re going to do because we want to incent our employees through options to make them part of the company and owners and rowing the boat in the same direction that we all are towards success.

Green Market Report

I think that’s great that you’re able to explain that because for a lot of people, they see that, and they see that net loss number, and it’s frightening, but when you explain it like that, it’s like, “Oh, okay. All right,” so everybody’s getting like you said, an investment within the company, which creates a lot of stickiness with your employees.

Chuck Smith

We want the employees to share in the upside of the great growth this company is going to have and the great success. It’s been nine long years, and this hasn’t been an industry that’s easy for anyone. So, now that we’re in the public eye and have access to capital markets, I expect a great growth for the company and ultimately, a great success. Like any company that’s building, you’re going to have to make investments. Those investments sometimes drop to the bottom line as losses, but the reality is every investment we make now in infrastructure or people or our routes to market are all designed to generate revenue. We’re not spending a lot of time having to do things just to catch up to others in the market. I think our portfolio is broader and more established than anybody else in the industry.

Green Market Report

Beverages. It seems like everyone’s slapping CBD oil in their beverage, and that now, they’re a CBD drink. What are your thoughts on that?

Chuck Smith

We’ve been in the CBD business for three years ourselves. However, our focus has been on dietary supplement formatted products both for humans, Aceso Hemp, and in that case, we have a couple of different types of product formats including an effervescent powder, which is kind of like an Emergen-C if you’ve ever had one of those.

Green Market Report

Love Emergen-C.

Chuck Smith

It’s a great product, indication-specific, high efficacy. On the other side, we have a great company that we own called Therabis, which targets CBD wellness to pets, primarily dogs, and we just introduced our cat treat. We’re very comfortable with these products because we’ve built them, Debra, against FDA supplement standards. Even though the FDA, as of today, doesn’t allow CBD in food and hasn’t made a ruling on supplements, we’ve built them from day one against that stringent level of standards. Now, we don’t have a CBD water yet, and frankly, the FDA is not giving us much comfort that they’re going to allow mass-market distribution of CBD in water and food, and I think that’s yet to come. As we get more guidance and clarity on that, you could expect Dixie to be at the forefront of that.

Green Market Report

So you’ve gotten Oklahoma. Is your goal more state expansion?

Chuck Smith

Yes, so we had said at the beginning of the year that we were going to open up between four and six new states that would be adding to the four states that we already have. So, our goal is really in between eight and 10 new states. Oklahoma is our sixth. We expect to be releasing product there by September, so that’s a pretty fast turnaround. In Michigan, we announced that deal at the beginning of February and had the product on the shelf the end of March, so we know what we’re doing, we know how to get the product into the market. With Oklahoma as our sixth state, you could expect to see one or two more announcements here probably over the next 30 to 60 days. That’ll really bring us into that eighth state and growing territory.

Green Market Report

Fantastic. We will keep an eye on Dixie and Therabis for our good pets.



About Us

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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