The week got off to a big start as Senate Majority Leader Mitch McConnell said he planned on introducing legislation to take hemp off the controlled substances list. This would be a huge boost to his home state of Kentucky whose farmers are looking for a crop to replace tobacco. McConnell hasn’t actually introduced the legislation yet and of course, there is no way of knowing whether his support will be enough for the law to be approved.
Innovative Industrial Properties Inc.
Innovative Industrial Properties (IIPR) reported fourth-quarter earnings of 7 cents a share and highlighted the steps it has taken since becoming a publicly traded company, perhaps paving the way for more small and mid-cap cannabis companies to do the same.
Innovative, which trades on the New York Stock Exchange under the ticker “IIPR,” said in a statement it earned 7 cents a share on $2.3 million in revenue. The commercial real estate company also said that adjusted funds from operations (AFFO), a widely used measure for real estate organizations, was 23 cents a share in the quarter.
CV Sciences Inc.
CV Sciences (CVSI) saw a 126% jump in revenue in its just reported fourth-quarter, due in large part to its continued push into the organic cannabis market. The company, which has offices in Las Vegas and San Diego, said fourth-quarter sales came in at $7.24 million, up 126 percent year over year. Gross profit also experienced a huge jump, rising 187 percent year-over-year to $5.21 million.
CannTrust Holdings Inc.
Canadian cannabis company CannTrust (CNTTF) delivered fourth quarter and full-year earnings with profits overcoming losses. Revenues for the fourth quarter were C$6.9 million versus last year’s C$2.0 million and for the full year, revenues were C$20.6 million as compared to C$4.3 million for 2016. Net income for the fourth quarter was C$6.2 million versus a net loss last year of C$8.2 million for the same time period. The net income for 2017 was C$6.8 million over 2016’s net loss of C$13.6 million.
GB Sciences, Inc.
GB Sciences, Inc. (GBLX) has signed a letter of intent (LOI) to purchase NevadaPURE’s Las Vegas operation for $28 million in cash and the assumption of approximately $5 million of outstanding liabilities.
The NevadaPURE acquisition will also provide GB Sciences with three additional licenses in the state, including a cultivation license, a production license, and a dispensary license. The company believes that margins will grow as the deal will effectively reduce the need for a middleman between the customer and the company.
Activist investor CannaRoyalty (CNNRF) is at it again, making another acquisition in the cannabis space, this time announcing its intent to acquire all of River Distribution, California’s largest cannabis retail network.