48North Archives - Green Market Report

Video StaffVideo StaffOctober 4, 2019
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7min3810

Green Market Report thanks the ArcView Group for allowing us to tape Marijuana Money from their event this week. 

Constellation Brands (NYSE: STZ) wrote down its Canopy Brands (NYSE: CGC) investment to the tune of almost half a billion dollars. Constellation, which also owns Modelo beer and Robert Mondavi wines, said its share of equity losses from its roughly $4 billion investment came to $484.4 million. 

 Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC)  has completed an all-cash transaction to purchase a majority stake in sports nutrition company BioSteel Sports Nutrition Inc. The amount of the acquisition was not disclosed. The deal gives Canopy a significant entry into the sports nutrition and hydration category and lays the groundwork for cannabidiol (CBD) products to be sold in the U.S.

Venture capital firm Canopy Rivers Inc.  (TSX: RIV)(OTC: CNPOF) completed a $10 million investment ( in TerrAscend Canada Inc., a subsidiary of its portfolio company.

Gotham Green Partners has invested an additional $20 million in iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) through the purchase of senior secured convertible notes. Green Gotham said it was part of a broader $100 million financing plan to support the buildout of all existing markets in which iAnthus currently operatesTerrAscend Corp. 

TILT Holdings Inc.  (CSE: TILT) (OTCQB: TLLTF) has negotiated an agreement with six of its remaining founders regarding the immediate forfeiture of all 60,217,088 stock options granted at the time of the merger. Adjusting for the subsequent forfeiture, TILT’s Q2 2019 net loss of $48.9 million would have been almost entirely reduced, bringing the Company close to break-even.

Fire & Flower Holdings Corp. (TSX: FAF) its financial results for the second fiscal quarter ending August 3, 2019, with total revenue of $11.1 million versus $9.5 million for the same time period in 2018. The net loss for the quarter was $6.4 million.

High Tide Inc. (CSE:HITI) (OTCQB:HITIF) announced financial results for the third fiscal quarter of 2019 ending July 31. Revenue in the third quarter increased by 281%, to C$8 million from C$2 million last year. 

48North Cannabis Corp. (TSXV: NRTH) delivered net revenue of $4.8 million marking 48North’s first full year of revenue, but a net loss of $8.1 million. In fiscal 2019, the company raised over $48 million and at the end of the year had $52.7 million in cash and cash equivalents on hand.

Arizona-based DNA testing technology company PathogenDx, Inc. announced $7.5 million in Series B funding. 

And finally HeavenlyRx Ltd. Acquired CBD company PureKana. 


William SumnerWilliam SumnerMay 21, 2019
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5min4880

It’s time for your Daily Hit of cannabis financial news for May 21, 2019.

On the Site

New Regime Will Impact Aphria Stock

No one who follows Aphria Inc. (NYSE: APHA ) stock should have been surprised that the company’s president, Jakob Ripshtein, resigned on May 14. Ever since interim CEO Irwin Simon was appointed Independent Chair of Aphria’s board in December,  it was only a matter of time before Simon, the entrepreneurial founder and former CEO of Hain Celestial (NASDAQ: HAIN), would play a more prominent role at the Canadian cannabis company.

Australis Capital

Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) entered into an asset purchase agreement with Green Therapeutics, LLC and affiliated companies, to acquire its Tsunami, Provisions, and GT Flowers cannabis brands in a deal valued at $8 million. The deal is expected to close in late 2019.

In Other News

Innovative Industrial Properties

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced that it had closed the acquisition of a property containing two buildings totaling approximately 266,000 square feet of industrial space for $13 million. IIP has also entered into a long-term, triple-net lease agreement with a subsidiary of Green Leaf Medical, LLC (Green Leaf Medical). Green Leaf Medical has already redeveloped roughly 103,000 square feet of the space for medical cannabis cultivation and processing.

Body and Mind

Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) has closed a previously announced private placement offering. M Partners Inc. acted as lead agent on behalf of a syndicate of underwriters, which included PI Financial Corp. Body and Mind sold 11,780,904 units of the company at a price of C$1.25 per unit for gross proceeds of C$14.72 million. “The financing was originally planned for gross proceeds of up to CAD$10 million and we are extremely pleased with the increased interest which will allow us to accelerate our growth as a multi-state operator,” commented Body and Mind Director Robert Hasman.

48North

After the markets closed yesterday, 48North Cannabis Corp. (TSXV: NRTH) released its financial results for the three and nine month period on March 31, 2019. Revenue for the quarter was C$689,000 and C$4.3 million for the nine months period. EBITDA was C$78,000 for the quarter and C$696,000 for the nine month period. The net loss for the nine month period was C$3.3 million.

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) today announced the release of their financial results for the first quarter of 2019. Year-over-year, revenue grew by 63% to approximately $2 million. Driving much of this growth was an increase in product sales, which rose from $459,335 to $1.5 million. The net loss for the quarter was $2.9 million. “With the recent progress of HB19-1090 and the strong overall momentum within the cannabis industry, we came in this quarter with record revenues and strong sales from our products division,” said Andy Williams, Co-Founder and CEO of Medicine Man Technologies. “Looking ahead, we have several significant events that include our pending acquisitions of Medicine Man Denver and MedPharm Holdings, LLC, which will put us on a major growth trajectory and create compelling value add for our shareholders.”


Debra BorchardtDebra BorchardtFebruary 25, 2019
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5min6040

48North Cannabis Corp.

48North Cannabis Corp. (TSXV: NRTH) released its financial and operating results for the three and six months ended December 31, 2018, with revenue for fiscal second-quarter of C$2.4 million. This was an 88% sequential increase over the first quarter. The company reported a net loss of C$872,628, down from the first quarter loss of $1 million.

48North successfully achieved all of the milestones it targeted in Q2. These included: sustained revenue growth; closing both the Good & Green acquisition and the $10,000,000 private placement,” said Alison Gordon, co-CEO of 48North.

The company repaid $2,300,000 in mortgage debt for the Morton Avenue Good & Green facility and closed a $7,045,000 non-brokered private placement bringing a total of $10 million in new equity to the Compan

“Our strong business performance throughout the quarter drove positive EBITAO and a significant increase in revenue growth quarter over quarter,” Ms. Gordon continued. “Subsequent to the end of the quarter, 48North completed the operational build-out and license application for the Company’s 100-acre outdoor cannabis farm in Brant County, Ont. In addition, the Company signed a supply agreement for organic sun-grown cannabis with the SQDC — the first agreement of its kind in Canada — a significant milestone that demonstrates 48North’s position as the industry leader with respect to the expected development and distribution of next-generation cannabis products, including topicals, cosmetics, vape pens, edibles and beverages.”

James E. Wagner Cultivation Corp.

 James E. Wagner Cultivation Corporation (TSX VENTURE: JWCA) reported its unaudited financial and operational results, for the first quarter of fiscal 2019 ending December 31, 2018. The company reported $549,000 in operating revenue, but a net loss of $2.3 million.

“The first quarter of 2019 saw marked improvements in several operational capacities at JWC,” said Nathan Woodworth, President, and Chief Executive Officer. “Additional staff were added to ensure training is completed before the move to JWC 2. The pilot facility was in full production for the quarter, following the upgrade of the HVAC system to a new highly advanced more customized solution. This allowed for a rapid increase in yields. For the quarter JWC produced a variety of strains at an average yield per plant of 210 grams. Very low crop loss numbers were recorded, at less than 1% of flowering plants. A new product was introduced to our online store front to overwhelmingly positive reviews, and 4 new products were prepared for active production in the following quarter. JWC is excited about the coming months as we take these advancements and begin to scale up in to our second facility, JWC 2.”

James Wagner said that it finished the quarter with approximately 172 kg of dried cannabis and 14 liters of formulated cannabis oil in its storage vault. During Q1 2019, JWC focused on preparing to move into its second, large-scale facility, while beginning to ramp up sales both direct to patient and through the Canopy Growth Corporation’s (CGC)  CraftGrow store.

Work continues at the Manitou Drive facility. Construction has continued on phase 2, and phase 1 is ready to begin cultivation activities as soon as a license is granted by Health Canada. JWC continues to work with Health Canada and has received a Confirmation of Readiness for JWC 2, one of the last hurdles before receiving a license to cultivate. Phase 2 is expected to be completed and ready for cultivation during Q3. Once the second phase comes online, JWC will have the capacity to increase production by more than 400% from the end of calendar 2018.


Debra BorchardtDebra BorchardtJune 11, 2018
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3min28610

Toronto-based 48North is set to begin trading on Monday on the TSX Venture Exchange with the symbol NRTH. Led by Chief Executive Officer Alison Gordon, this cannabis company is a vertically-integrated house of brands focused on
women’s health and wellness.

So far the company has raised $27M between 2014-2016 via non-brokered private placements. $16M was raised in January 2018 via
bought deal private placement of units. It is going public transaction by way of three-cornered amalgamation with Kramer Capital Corp., a capital pool company listed on the TSX Venture Exchange

“48North is a future-focused company on track to serve the female health and wellness cannabis market with innovative next-generation products and brands,” said CEO Alison Gordon. “As Canada’s first female CEO of a now publicly-traded licensed producer of cannabis, 48North will provide an intrinsic and authoritative view to a valuable demographic that is currently underserved in this industry.”

It is the parent company of DelShen Therapeutics Corp., an ACMPR licensed producer with a 40,000 sq ft state-of-the-art facility in Kirkland Lake, ON with 2,500 kg/yr production capacity. In addition to that, it has 800 acres of owned land with a two-phase expansion
plan for an additional 200,000 sq ft with 40,000 kg/yr production capacity.

“In addition to our market position, we have an exciting and unique strategy that aims to leverage 48North’s cultivation facilities with our expertise in the consumer packaged goods space,” continued Ms. Gordon. “The TSXV was built to facilitate entrepreneurial companies like us and within this reputable and highly regulated environment, our public listing will increase visibility and access to capital, while providing liquidity for our shareholders.”

As of March 31, 2018, 48North has C$14 million in cash, no outstanding debt and approximately 77 million shares outstanding. The company said in a statement that its goal is to have licensed CPG products available in Canadian retail upon legalization of adult recreation in accordance with the Cannabis Act.

While the company stated it is targeting the female market, there was little information as to the products it plans to produce.

 



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