It’s time for your Daily Hit of cannabis financial news for August 22, 2018.
On The Site
Namaste Technologies Inc. (NXTTF) signed a wholesale supply agreement with Manitoba-based licensed producer, Bonify Inc. Namaste will buy bulk cannabis products through the wholly-owned subsidiary, Cannmart Inc.
Bonify is a leading provider of medical marijuana and it operates a large-scale cultivation facility. The company said it will expand capacity to over 350,000 square-foot to accommodate Namaste’s growth trajectory. The site in Winnipeg, Manitoba has over one million square feet of potential production capacity and could be capable of growing over 100,000kg.
Namaste also signed a revenue sharing agreement with cannabis business tech company Cannvas MedTech Inc. with the two companies sharing revenue generated through co-branding and marketing efforts between NamasteMD and the Cannvas.me cannabis education platform.
Toronto-based Emblem Corp. (EMMBF) reported second-quarter revenues of $1.5 million for the quarter ending June 30, 2018, an increase of 180% over the same time period in 2017. The company also delivered a gross loss of $159,000 for the quarter versus last year’s zero amount and a let loss of $4.7 million versus last year’s net loss of $2.9 million.
The company said that higher revenues and unrealized gains on changes in fair value of biological assets were offset by rising production costs that had ramped up to meet those rising sales volumes.
In Other News
Acreage Holdings has hired Robert (“Bob”) Daino as Chief Operating Officer. In this role, Daino will be responsible for ensuring the effective and efficient operations at the corporate headquarters and throughout Acreage’s growing footprint of vertically-integrated growers, processors, and dispensaries throughout the United States. His management experience spans multiple industries and sectors, including software and systems engineering, information technology, program management, facility construction and management, and process engineering and change management.
Cannabis Strategic Ventures, Inc.
Cannabis Strategic Ventures, Inc. (NUGS) acquired The Asher House Pet CBD brand from The Asher House LLC. Under the terms of the brand acquisition agreement, Cannabis Strategic Ventures will acquire the controlling interest in the Asher House Pet CBD line, a line of U.S. hemp derived cannabidiol (CBD) supplements for pets.
The Agreement between the companies calls for Asher House to continue promoting the Asher House CBD brand nationwide while Cannabis Strategic provides the infrastructure to support enhanced marketing programs and the expected increases in product sales.
MedMen Enterprises Inc.
MedMen Enterprises Inc. (MMNFF) signed an exclusive license agreement with Woodstock Ventures LC and its affiliate The Woodstock Cannabis Company granting MedMen rights to use the iconic Woodstock brand on cannabis products manufactured and sold in six states: California, Nevada, Massachusetts, Florida, Illinois and Arizona.
The Agreement grants MedMen the right to manufacture and distribute Woodstock branded cannabis products to MedMen stores or third-party retailers in those six states and anticipates additional states should Woodstock decide to enter them. The Agreement also gives MedMen premium placement of cannabis products at Woodstock music festivals and promotions. Medical marijuana is currently legal in the six states covered by the agreement, adult-use is legal in California, Nevada and Massachusetts.
Hemp, Inc. (HEMP) announced that the company has entered into a Letter of Intent with a California seed company that positions Hemp, Inc. to purchase one hundred million organic, cannabidiol (CBD)-rich hemp seeds.
Per the LOI, Hemp, Inc. will purchase these seeds on a yearly basis for five consecutive years with the first right of refusal to buy 100 percent of the seeds produced above that amount. As Hemp, Inc. continues to expand its footprint across the United States (and now across the globe), the company is focused on ensuring it has enough hemp seeds to meet the marketplace demand.
Hydrofarm and Bountea announced a strategic distribution partnership to serve the growing indoor horticulture and legal cannabis industries across North America.
The Bountea Growing System has been tested in the field for more than twenty years with a proven track record of providing growers a complete holistic approach to soil fertility and plant vitality. Using a premium compost tea formulation plus specialty bio-organic nutrients, Bountea revitalizes soil with essential microbes and minerals, resulting in plants that grow faster, stronger and healthier.
The corporation previously referred to as 10552763 Canada Corporation, a partnership of Avana Canada Inc. of Ontario, Fisher River Cree Nation of Manitoba, Chippewas of the Thames of Ontario, of MediPharm Labs Inc. of Ontario, and retailer Native Roots Dispensary announced its name as “Garden Variety,” along with plans to open four stores in Manitoba. One of four organizations awarded licenses to operate retail cannabis stores in the province, the corporation has remained quiet until now about activities and development efforts while conducting intensive research and market analysis before selecting its name, design and retail strategy.
“A great deal of thought and research was done prior to the development of the plans,” said Zubin Jasavala, President and CEO, Avana Canada Inc. “Garden Variety will be comfortable for our customers, break down barriers that might intimidate people from exploration and bring a bit of everyday magic to the experience of shopping for cannabis.”