ABcann Archives - Green Market Report

StaffMay 3, 2018


ABcann Global Corporation (ABCCF) reported net sales of C$922,030 in 2017 versus C$525,940 in 2016.  The annual report or business update did not provide much in the way of standard financial reporting with regards to profits or losses.

The company did report that bulk sales to other Licensed Producers represented approximately 21% of its sales by dollar value versus 65% in 2016. In the filing, the company stated that the remaining 79% of sales by dollar value was made to clients and that the reliance on bulk sales in 2016 was to accelerate revenue and, as expected, declined substantially in 2017 as ABcann’s client base continued to grow. Patient count and sales grew steadily throughout the year and show no signs of seasonality.

ABcann’s 2017 audited annual financial statements showed a cash balance on December 31, 2017, of $70.8 million and operating expenses totaling C$27.5 million. The report stated, “These expenses included very substantial one-time costs related to taking ABcann public and internal restructuring matters. While the restructuring continued into Q1 of 2018, the impact of these costs is expected to have a far lesser impact on the Company’s financial statements for that period.”

“Over the past two quarters, we have enhanced our leadership team, strengthened our balance sheet, improved operational effectiveness, and made significant commercial advancements.  ABcann is well-positioned, with approximately $130 million in cash, to accelerate the growth of our business,” commented Barry Fishman, Chief Executive Officer of ABcann.

In The Pipeline

ABcann said that its 2018 capacity would be 800 kilograms of indoor grown premium dry flower and 1,500 kilograms of seasonal greenhouse cannabis. The 2019 capacity is expected to be 1,500 kilograms of indoor grown premium bud and 14,000 kilograms of seasonal greenhouse cannabis to be used primarily in finished medical and adult-use products

The company’s Vanluven expansion which is targeted for the third quarter includes state-of-the-art areas for cultivation, extraction, formulation, and packaging. ABcann is expecting to receive GMP certification in late Q4 2018 or early Q1 2019, facilitating the export of products to certain international markets.

The company also plans a rebranding which is planned for mid-year 2018 and the introduction of new consumer brands. Harvest Medicine to open a second clinic in Edmonton in early Q3 2018 and Harvest Medicine is to launch a telemedicine platform in Q3 2018 to provide access to patients seeking medical cannabis in underserved communities.

Stock Performance

The stock was lately trading at $1.18 on the OTC Markets, down from its 52-week high of $3.29. It traded at C$1.50 on the Toronto Exchange, down from its year high of C$4.06.

William SumnerJanuary 29, 2018


ABcann Global Corporation (ABCCF) has announced that it has entered into an agreement with Canaccord Genuity Corp. and Eight Capital, on their own behalf and on behalf of a syndicate of underwriters.

Under the agreement, the underwriters will purchase on a bought deal basis, pursuant to the filing of a short form prospectus, a total of 11,500,000 units of the Company at a price of $3.50 per unit, totaling $40,250,000. One unit of the company consists of one common share of the company and one half of one common share purchase warrant of the company. The stock fell over 11% to $2.74 on the OTC Marketplace. It is down from its 52-week high of $3.29.

Additionally, the underwriters will purchase 30,000 unsecured convertible debentures of the Company, at a price of $1,000 per Convertible Debenture, for $30,000,000; bringing the total value of the deal to just over $70,000,000.

Each warrant will be exercisable as one common share of the company for up to two years following the closing date at a price of $4.25 per share. If common shares have a daily volume weighted average $7.00 or more for a period of 15 days, the company may accelerate the exercise period of the warrants for a period of no less than 30 days after the company gives written notice of the acceleration.

The Convertible Debentures will have a maturity date of three years, bearing an interest rate of 6% from the date of the closing, and made payable semi-annually on June 30 and December 31 of each year. At the holder’s discretion, the convertible debentures will be convertible into common shares, at a price of $4.00, at any time prior to the maturity date.

The company has also given the underwriters an over-allotment option to purchase 1,725,000 additional units of the company and 4,500 additional Convertible Debentures. The option would be exercisable on or at any time before the 30th day following the close date of the agreement. If the underwriters exercise the option, an additional $10,537,500 would be raised; bring the total value of the agreement to $80,787,500.

The proceeds from the agreement will go towards construction and development at the company’s Vanluven facility and planned Kimmett facility, general working capital, corporate development, and product development.

StaffNovember 27, 2017


Ontario-based ABcann Global Corporation (ABCCF) announced that it has entered into a binding interim agreement for a  proposed private placement of convertible senior unsecured debentures in the aggregate principal amount of $30,000,000. ABcann plans on using the money to make strategic acquisitions in the cannabis industry and for general working purposes.

“This financing will provide ABcann further capital to evaluate additional accretive opportunities as we strengthen our cash position to over $70 million,” commented Barry Fishman, CEO, and director of ABcann. “The stronger cash position will give us greater flexibility to execute our growth strategy, complete our current construction, and obtain larger-scale, cost-effective production capacity, which may include a greenhouse approach.”

The debentures will mature in 36 months and bear interest at 7% annually. It will be convertible ay $1.50 per share and be convertible, “at the option of the Company, into Shares if, at any time commencing four months plus one day following the closing date of the Financing, the daily volume weighted average trading price of the Shares on the TSX Venture Exchange  for any consecutive 10 day trading period is greater than $2.25 per Share.” Shares on the OTC Market were lately trading at $1.15, down from the 52-week high of $1.25.

ABcann recently strengthened the board by adding Mr. Richard Fitzgerald, who was Chairman of Diageo Canada Inc. until 2008, having previously served as Executive Director of Diageo’s Global Commercial Roadmap Initiative, and as President and CEO of Diageo for eight years. During his tenure, he was responsible for Diageo’s global category-leading brands, including Smirnoff®, Johnnie Walker®, Baileys®, and Guinness® in Canada.

The company also named Dr. Michael Bumby as the Chief Financial Officer of the Company, effective December 1, 2017. He brings extensive public company CFO, global pharmaceutical, and M&A experience to ABcann. Dr. Bumby succeeds Jenny Guan, who has been appointed Vice President and General Manager, Napanee Operations.

ABcann holds production and sales licenses from Health Canada. Its flagship facility in Napanee, Ontario contains proprietary plant-growing technology, centered on its specially designed, environmentally-controlled growing chambers. This approach results in the production of pharmaceutical-grade cannabis products.

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