Daily Cannabis Hit: September 28, 2021

It’s time for your Daily Hit of cannabis financial news for September 28, 2021.

On The Site

Village Farm

Village Farms International, Inc.  (NASDAQ:VFF) (TSX:VFF) has entered into an option agreement to buy an 80% ownership interest in Netherlands-based Leli Holland B.V. for EUR50,000. Leli is one of the ten applicants selected by lottery to receive a license to legally cultivate and distribute cannabis to retailers (known as “coffee shops”) when the Dutch government implements its Experiment to Investigate Closed Cannabis Supply Chains, also known by the Dutch acronym “WECG”). The Dutch Supply Chain Experiment, which is scheduled to operate for a minimum of four years with the potential for national expansions, is expected to be the first legal recreational cannabis market in Europe.

Goodness Growth

Goodness Growth Holdings, Inc.  (CSE: GDNS)(OTCQX: GDNSF) closed on a sale/leaseback deal with Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) in New York. Goodness Growth reported that it sold IIP approximately 92.3 acres of land for $1.2 million. The site is next to Goodness Growth’s existing cannabis cultivation and processing facility in Johnstown, New York, which was formerly the site of a juvenile detention center. IIP said it plans to provide a tenant improvement reimbursement to Goodness Growth of roughly $55 million for the construction of a new 324,000 square foot cannabis cultivation, processing, and research and development facility.

SEC

The Securities and Exchange Commission has filed a lawsuit against Wyoming-based VerdeGroup Investment Partners, Inc. and its principal Thomas Gaffney (Gaffney), who is a repeat securities fraud offender. The SEC also included the company’s investor relations contact, Lisa Gordon. They are accused of raising more than $600,000 from over two dozen investors for a cannabis investment that never occurred. The SEC noted that Gaffney has done this before having been previously charged by the SEC and prosecuted by criminal authorities for securities fraud.

In Other News

C21

C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) announced unaudited results for its second-quarter ending July 31, 2021.   Revenue for the second quarter was $9.0 million, down 1.9% from Q1, in line with similar industry trends seen in the Western markets (the State of Nevada reported a 6% decline in cannabis sales from April to June 20212). Despite market conditions, C21 remained focused on sustaining the efficiency of its operations, with the Nevada segment continuing to deliver highly profitable results, including $7.8 million adjusted EBITDA year-to-date. The company reported a Net Income of $3.7 million for Q2 or $0.03 Earnings Per Share and $0.06 EPS year-to-date. This included changes in the fair value of derivative liabilities (see MD&A). Excluding the changes in derivative liabilities, Adjusted Net Income1 was $1.0 million for Q2 or $0.01 Earnings Per Share.

“C21 continues to deliver strong, profitable bottom-line performance with one of the leading cash flow margins in the industry. Cash Flow from Operations was up 32% over Q1 resulting in a reported $0.03 in Earnings per Share, and enabling a further significant reduction in Total Liabilities,” said Sonny Newman, President, and CEO of C21. “We completed our first phase buildout of our cultivation expansion on budget, and expect its first harvest next week, which we anticipate will increase top-line results and further strengthen operating margins going forward. We continue to work diligently to deliver greater scale for the Company.”

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


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


READ MORE



Recent Tweets

@GreenMarketRpt – 1 day

We will be live blogging from all week. Head to the website – link in bio – if you didn’t m…

@GreenMarketRpt – 1 day

⁦@PelorusEquityGr⁩ Upsizes Offering To $1 Billion

Back to Top

Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.