After denying rumors last week about a potential acquisition, Aurora Cannabis (ACBFF) announced that it was entering into an agreement to acquire MedReleaf (MEDFF) in a deal valued at C$3.2 billion. The acquisition brings together two leading producers in Canada’s medical marijuana community enabling them to deliver a capacity of over 570,000 kg of cannabis a year.
MedReleaf is known for its ability to reduce the cash cost per gram while still delivering a premium product, Aurora is equally known for its automated greenhouses and low production costs. While Aurora paid a premium for MedReleaf, critics say that they needed this company. Aurora isn’t known for having a high-quality product and MedReleaf is. i.e. you’re only as good as your product.
Canopy Growth (TWMJF) announced that it applied to the New York Stock Exchange (ICE) to list its shares. The company said that it expects to begin trading at the exchange by the end of May using the ticker symbol CGC. The company currently trades in Canada on the Toronto Stock Exchange using the symbol WEED and also on the OTC Markets with the symbol TWMJF.
New York Cannabis Market
On May 15, 2018, New York City Comptroller Scott Stringer published a report estimating the potential size of the state’s legal cannabis market and how much tax revenue it would generate for both the city and the state. According to the report, the New York state cannabis market could see up to $3.1 billion in annual sales, with up to $1.1 billion being generated in New York City alone. In terms of tax revenue, legal cannabis could generate up to $436 million for New York state and $336 for New York City.
Cronos Group Inc.
NASDAQ-listed Cronos Group Inc. (CRON) reported that its first-quarter total sales rocketed 473% to $2.9 million versus last year’s $0.5 million. Sequentially, sales jumped by 83% from the fourth quarter of 2017 to $1.3 million in the first quarter of 2018.
CV Sciences, Inc.
CV Sciences, Inc. (CVSI) announced its financial results for the first quarter ended March 31, 2018. Record Q1 2018 Sales of $8,071,000, an increase of 114% compared to Q1 2017.
Surna Inc. (SRNA) announced its financial and operational results for the quarter ending on March 31, 2018. The company’s net bookings rose 88%, increasing from $2,454,000 in the previous quarter to $4,623,000. Revenue declined sequentially by 11%, falling from $2,309,000 in the previous quarter to $2,055,000.
MariMed Inc. (MRMD) stock jumped 13% after it reported its first-quarter financial results for 2018 with revenues increasing 81% to $2.08 million compared to $1.15 million first quarter of 2017. The company attributed the increase to the expanding operations of MariMed’s medical marijuana clients from real estate revenue, management fees and licensing fees. Unfortunately, the company delivered a net loss of $1.83 million in the quarter versus net income of $0.11 million for the quarter last year.
Denver-based hydroponic retailer GrowGeneration (GRWG) reported that its revenue for the first quarter of 2018 increased 70% to $4.4 million versus $2.6 million for the 1st quarter of 2017. Gross profits rose 75% to approximately $1.2 million compared to approximately $.68 million for the same time period. Still, the company delivered a net loss of $953,430 versus last year’s net loss of $283,309.