AeroGrow Archives - Green Market Report

StaffAugust 13, 2018
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7min12440

It’s time for your Daily Hit of cannabis financial news for August 13, 2018.

On The Site

Cowen Initiates Coverage On Tilray

Cowen Research initiated coverage on Tilray Inc. with an Outperform rating and a $34 price target. Analyst Vivien Azer is forecasting total company revenues of $44 million in the fiscal year 2018, $163 million in the fiscal year 2019, $346 million in the fiscal year 2020 and $503 million in the fiscal year 2021. She believes the company will break even in early 2019 with EBITDA margins in the mid-to-high 20% by 2020, which would be similar to the alcohol companies that Azer covers.

The $34 price target is assuming a nine times equity value and compares to Canopy Growth’s (CGC) which is currently trading at 11 times Cowen’s CY3 revenue estimates. Tilray was lately trading at $26.90. It had expected to price its IPO in the range of $14-16 but ended up at $17. It closed at $22 on its first day of trading and has traded as high as $34 since going public in July.

Harborside

FLRish Inc., a California corporation d/b/a Harborside is entering into a binding letter agreement with  Lineage Grow Company Ltd.  (CSE:BUDD) for a reverse takeover in a deal valued at C$200 million. Lineage will acquire all of the outstanding shares of Harborside in exchange for newly issued shares of Lineage.

Harborside operates two flagship dispensaries in the San Francisco Bay Area as well as a cultivation facility in Salinas California, plus the Harborside brand. The move will help Harborside expand within the state and across the U.S. Combined, the two Harborside dispensaries have generated over CAD $400 million in sales since their opening, including over CAD $50 million sales in 2017. Harborside is currently structured as a private California corporation.

Gron Chocolates

C21 Investments Inc. (CSE: CXXI)  has entered into an agreement to acquire Oregon-based premium cannabis edible companies Grön Chocolate and Grön Confections. The deal is expected to close by November 1, 2018. C21 has agreed to pay Grön unitholders $6.8 million plus the bonus earn-out shares of $4.375 million

In Other News

AeroGrow International

AeroGrow International, Inc. (AERO) announced results for its first quarter ended June 30, 2018. The company recorded net revenue of $3.7 million, an increase of 52% over the same period in the prior year.  Loss from operations was $653K, improved from $729K in the prior year period.

“I am very pleased to report our results for the 1st Quarter of our Fiscal Year 2019,” said AeroGrow President & CEO J. Michael Wolfe.  “With sales up 52%, we continued – and in fact accelerated – the strong momentum we’ve had over the last year and realized particularly good results on our Amazon platforms as well with several other online retailers, notably Bed, Bath & Beyond, Home Depot and Kohl’s.  Loss from operations was improved year-over-year and I’m especially pleased with the nearly 500 basis point improvement in our gross margin vs. last year (from 33.4% to 38.3%).  Our cash position remained strong with $7 million in cash on hand as of June 30th and no debt.  We have also lined up a $6 million line of credit with our partners at Scotts Miracle-Gro to support our anticipated growth this fall.”

Auxly Cannabis Group Inc.

Auxly Cannabis Group Inc. (XLY) announced that it has entered into a strategic partnership with Cannabis OneFive, Inc., a provider of quality management and document control software systems for the cannabis industry. Auxly’s wholly-owned subsidiary, Dosecann Inc., will become a lead subscriber of C15’s software, and the Company expects the C15 software to be deployed at other Auxly facilities.

In connection with the strategic partnership, the company has entered into a share exchange agreement with C15. Pursuant to the Share Exchange Agreement, Auxly will issue 429,507 common shares and make a cash payment of $50,000 to C15, and Auxly will receive 9,000,000 common shares in the capital of C15 and a common share purchase warrant entitling Auxly to purchase 4,250,500 common shares of C15 at an exercise price of $0.075 per common share, representing a 30% ownership interest in C15 on a fully-diluted basis.

Namaste Technologies Inc.

Namaste Technologies Inc. (NXTTF) announced that the company’s wholly-owned subsidiary, Cannmart Inc., a licensed cannabis producer under the Access to Cannabis for Medical Purposes Regulations, has completed Health Canada’s Pre-Sales License Inspection at the Cannmart facility in Etobicoke, Ontario. On July 31 st, 2018, Health Canada inspectors were on-site to verify information submitted by Cannmart as part of its application and in assessing compliance with the applicable sections of the ACMPR prior to license approval. The Pre-Sales License Inspection is one of the last steps prior to the issuance of a Sales License under the ACMPR.


Debra BorchardtJune 28, 2018
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4min12450

It’s time for your Daily Hit of cannabis financial news for June 28, 2018.

On The Site

EVIO

EVIO Inc.  (EVIO) entered into an asset purchase agreement with Oregon-based MRX Labs. The company said that it has also formed a strategic alliance with MRX Xtractors which will develop and expand growth in existing and new markets.

According to the company statement, EVIO Inc. will acquire 100% of the assets of MRX Labs, LLC including equipment, real estate, customer lists, customer contracts, rental agreements, and equipment leases. EVIO Labs Portland will relocate its personnel and license to the Tigard facility. The transaction is expected to close on or before July 11, 2018.

CLS Holdings USA, Inc

CLS Holdings (CLSH) closed its acquisition of Oasis Cannabis. With this purchase, CLS is now active in the legalized cannabis market in Las Vegas, NV, generating $850,000 in gross monthly revenue.

According to the company statement, Oasis Cannabis had its best month ever last month in generating $200,000 in gross revenues. Due to increased demand and the additional capital that was just raised, CLS plans to triple the grow production capacity over the remainder of 2018. On the retail dispensary side, Oasis has steadily witnessed increased traffic over the past few months, is now up to 400 daily visitors, and is currently generating $650,000 of gross monthly revenue.

In Other News

Hemp Is Legalized

The Senate passed legislation Thursday legalizing hemp as an agricultural commodity as part of an $867 billion Farm Bill. The provision was included in a wide-ranging agriculture and food policy legislation passed by the Senate by a vote of 86-11.

Hemp will be removed from the federal list of controlled substances and the cultivation, processing and sale of industrial hemp will be legalized as part of the legislation. It also will allow researchers to apply for grants from the Agriculture Department and make hemp farmers eligible for crop insurance.

Senate Republican leader Mitch McConnell of Kentucky praised the passage of the bill. I have heard from many Kentucky farmers who agree it’s time to remove the federal hurdles and give our state the opportunity to seize its full potential and once again become the national leader for hemp production. That is why I strongly advocated for this measure to be included in the Farm Bill, McConnell said.

AeroGrow International, Inc.

AeroGrow International, Inc. (AEROannounced results for the fiscal year ended March 31, 2018. The Company recorded total revenue of $32.3 million, an increase of 37% over the prior year.   Operating Loss for the full year was $448K up slightly from the prior year primarily due to increased investments in marketing and R&D.

“I am very pleased to report our Fiscal Year 2018 results,” said President and CEO J. Michael Wolfe.  “With sales up 37%, increased channels of distribution and several successful product launches, I believe our FY 2018 continued to demonstrate the exceptional progress we are making.   Our balance sheet was also strong, which as of March 31, 2018, showed no debt, over $7.5 million of cash on hand, over $4.3 million in good Accounts Receivables and plenty of inventory.”


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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