Agrify Archives - Green Market Report

StaffApril 19, 2023
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5min00

The Daily Hit is a recap of the top financial news stories for April 19, 2023.

On the Site

Cannabis Retailers Can Expect ‘Massive’ Sales Day on 4/20

The unofficial cannabis holiday of April 20 – better known as 4/20 – is tomorrow, and retailers should be prepared for a “massive” sales day, according to tech firms that have tracked sales in past years. Read more here.

Over 100 Employees at Rise Dispensaries in Chicago Set to Strike on 4/20 Eve

Workers at three Rise dispensaries in the Chicago area were set to go on strike Wednesday at 4:20 p.m. — a day before the popular industry sales event on April 20. According to union spokesman Matthew McQuaid, more than 100 employees between Niles and Joliet, Illinois, will participate in the open-ended strike. Read more here.

Blumenauer Makes Another Attempt to Repeal 280E

Oregon’s long-serving cannabis champion in Congress, Rep. Earl Blumenauer, this week again introduced the Small Business Tax Equity Act to exempt state-legal cannabis companies from the onerous 280E section of the federal tax code, which essentially prevents marijuana businesses from claiming standard business tax deductions and costs the industry untold millions per year. Read more here.

New York State Cannabis Tax Revenue Falls Short of Predictions

Cannabis tax revenues in New York state are both up and down at the same time, according to state data. State marijuana revenues were up for the month of March after being flat for most of the prior 12 months, to $1.8 million in tax collections from about $1 million per month previously. Read more here.

Agrify Warns Investors About Unreliable Financial Statements

Agrify Corp. (Nasdaq: AGFY) issued a press release about raising $1.84 million after it slashed the price of its warrants, but the company didn’t issue a release telling investors that its financial statements were not reliable. While shares popped 73% on Tuesday to 30 cents, they were plunging 30% in early trading on Wednesday to lately sell near 20 cents. Read more here.

In Other News

GS Holistic LLC

A California federal judge has awarded more than $151,000 to GS Holistic LLC in a default judgment against the owner of a Los Angeles smoke shop over claims the shop sold counterfeit versions of GS Holistic’s “Stündenglass” bong products. In a judgment filed Monday, U.S. District Judge R. Gary Klausner ordered Andrea Harris — an owner of Hollywood Zaza Smoke & Vape LLC, which runs Zaza Smoke Shop — to pay $150,000 in statutory damages plus $1,166 in costs to GS Holistic after failing to appear or defend herself in the suit. Read more here.

Curaleaf Holdings

Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) determined that it will make certain adjustments to the revenue figures reported for 2021 and 2022 after a review of certain purchases and sales of products through the company’s wholesale channel. Read more here.

Eastern Band of Cherokee Indians

Following more than an hour of discussion capping off months of debate, the Cherokee Tribal Council voted earlier this month to fully fund its cannabis enterprise’s eight-figure startup funding request. Qualla Enterprise will view the $64 million as a loan rather than an appropriation, eventually paying the tribe back. Read more here.


Debra BorchardtDecember 20, 2022
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3min00

Agrify Corp. (Nasdaq: AGFY) is heading into the holidays with a little more green after closing its previously announced underwritten public offering of 11,884,615 shares of its common stock and pre-funded warrants to purchase 1,500,000 shares of its common stock. The accompanying warrants would purchase 26,769,230 shares of common stock.

The combined offering price was $0.649, while the stock closed today at 29 cents.

The company said it would receive $8.7 million in gross proceeds from the deal, while the net proceeds will be $8.2 million. Agrify also said it plans to use the money for working capital and general corporate purposes, which may include capital expenditures and repayment of debt.

Agrify reported its earnings in November, saying at the time that revenue fell by 55% to $7 million for the third quarter, compared to last year’s $15.8 million for the same time period. The company said that the revenue drop reflected the deferral of $5.3 million of design and build revenue in connection with the Bud and Mary’s lawsuit.

The company’s net loss for the third quarter was $46.3 million, or $17.33 per diluted share, compared to a net loss of $9.8 million, or $4.68 per diluted share, in the prior-year period.

The company ended the third quarter 2022 with a combined amount of cash, restricted cash, and marketable securities of $12.5 million. However, expenses have been rising. Operating expenses totaled $27.4 million for the third quarter versus last year’s $9.4 million in the prior year period. The company said that the increase in the operating expenses was largely attributable to increases in reserves associated with loans receivable, increases in depreciation and amortization, and changes in contingent consideration related to the fair value estimates associated with ongoing acquisition-related earnout arrangements.

At the time of earnings, Simply Wall Street wrote, “It’s probably worth noting we’ve seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business.”


StaffOctober 6, 2022
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8min00

The Daily Hit is a recap of cannabis business news for October 6, 2022.

ON THE SITE

Biden To Pardon Marijuana Convictions, Calls For Classification Review

President Joe Biden on Thursday announced a sweeping directive that would alter the laws surrounding cannabis and its classification as a dangerous substance, as well as grant pardons to those who suffered from the War on Drugs. In a statement, the president stated that he plans to pardon all prior federal offenses and begin an administrative review alongside Justice Department to process pardons for simple marijuana possession. Read more here.

Floridians Stocked Up On Cannabis Ahead Of Hurricane Ian

Florida operators that had to temporarily shutter last week amid Hurricane Ian’s wrath are coming back online, though some companies are still reeling from its violent landfall. With the Sept. 30 cutoff date for the fiscal third quarter, some companies could see some additional padding to earnings reports, as patients throughout the state flocked to stores early last week to stock up on medicine ahead of the storm’s arrival. Read more here.

Agrify To Help Three Companies’ Grows Go Vertical

Agrify Corporation (Nasdaq: AGFY) said that three companies have decided to operate their cultivation businesses using the company’s rapid deployment packs (RDPs) — a prepackaged, quick-to-deploy alternative to traditional grow facilities. Prairie State Cannabis LLC in Illinois, LowKey LLC in Massachusetts and MediFlora Cultivation LTD in South Africa have all elected to use the tech, which the company said is able to provide “best-in-class” cultivation capabilities in potentially as little as 60-90 days. Read more here.

Recreational Psychedelics Enters The Conversation

The medical psychedelics decriminalization efforts are growing, with now 20 different states (or cities and counties within states) either decriminalizing or working on decriminalizing psychedelics. There have been pushbacks, with complaints that some decriminalization efforts include making them the “lowest law enforcement priorities,” a ruling that still effectively criminalizes psychedelics. That same ruling applied to the decriminalization of cannabis. Read more here.

Zynerba Gets Patent For Fragile X Drug

Zynerba Pharmaceuticals, Inc. (Nasdaq: ZYNE), the leader in innovative pharmaceutically-produced transdermal cannabinoid therapies for orphan neuropsychiatric disorders, today announced that the U.S. Patent and Trademark Office has issued Patent No. 11,458,110, titled “Treatment of Fragile X Syndrome With Cannabidiol,” which includes claims directed to methods of treating Fragile X syndrome with cannabidiol. Read more here.

Green Thumb Industries Sees Board Shakeup

Three of four independent board members of Green Thumb Industries (OTC: GTBIF), including Dorri McWhorter, resigned over what the marijuana company said was “a disagreement as to the company’s policies and practices related to personal misconduct.” Read more here.

IN OTHER NEWS

Agrify Corporation

Agrify Corporation (Nasdaq : AGFY), a provider of cultivation and extraction solutions for the cannabis industry, today issued the following statement relating to the default of its customer Bud & Mary’s Cultivation, Inc. under a construction loan facility extended by Agrify to Bud & Mary’s associated with an Agrify Total Turn-Key Solution project and the lawsuit brought by Bud & Mary’s in response to the default notice. Read more here.

Bespoke Extracts, Inc.

Bespoke Extracts, Inc. (OTCQB: BSPK) today announced that the Colorado Marijuana Enforcement Division (MED) has approved Bespoke’s application for “suitability”. This approval enables Bespoke to acquire, subject to final state and local approval, any business licensed by the MED. Read more here.

Merchants & Marine Bank, CannaFirst Financial

Merchants & Marine Bank, a century-old Mississippi-based banking institution, has launched CannaFirst Financial, the first banking division dedicated to business owners in Mississippi’s quickly emerging cannabis industry. CannaFirst will serve clients in platform integration, online and mobile banking, cash transport, and treasury solutions. It is overseen and staffed by seasoned banking professionals with significant experience and certifications in emerging markets and industries. Read more here.

Neuraxpharm Group, Panaxia

Neuraxpharm Group, a European specialty pharmaceutical company focused on the central nervous system, and Panaxia (TASE: PNAX), a global pharmaceutical company that develops, manufactures and markets advanced medical cannabis products of pharmaceutical quality, today announced the signing of two addendums to their agreement to expand their collaboration into the Czech and Swiss markets. Read more here.

F1SeedTech, NewBreedSeed

F1SeedTech and NewBreedSeed (NBS) announced that they have entered into a definitive agreement, with F1SeedTech acquiring 100% of the shares of NBS. The merger creates the industry leader in F1 hybrid varieties of cannabis, combining the day-neutral breeding activities of NBS and the short-day breeding activities of F1SeedTech in Israel and the Netherlands, respectively. Read more here.

Optimi Health Corp.

Optimi Health Corp. (CSE: OPTI) (OTCQX: OPTHF) (FRA: 8BN), a Canadian-based company licensed by Health Canada to produce and supply natural, EU-GMP grade psilocybin and other psychedelic substances, most notably MDMA, is applauding the government of Alberta’s decision to regulate some psychedelics for therapeutic use in the province. Read more here.

Cybin Inc.

Cybin Inc. (NEO:CYBN) (NYSE AMERICAN:CYBN), a biopharmaceutical company focused on progressing Psychedelics to Therapeutics®, provided an update on its intellectual property progress in support of its research and development strategy. The company continues to prioritize the development of in-house IP and licensing opportunities that support its active development programs and future novel drug candidates. Read more here.


Adam JacksonAugust 19, 2022
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6min00

XS Financial closed on a $24 million line of credit with Needham Bank committing $20 million and acting as the administrative agent. XS Financials’ existing $4 million line of credit with an FDIC-insured bank will be retired, and the same bank will contribute $4 million in the new loan.

“With many capital sources in the industry experiencing a near-term pullback in financing, we are thrilled to continue funding our target borrowers at scale for their critical expansion projects,” XSF CEO David Kivitz said.

XSF fully retired its $15 million line of credit with the Garrington Group concurrently with the closing of this loan.

The new loan has a term of two years, expiring in August 2024. Loans made under the line of credit will bear interest at an annual rate equal to the Wall Street Journal Prime rate plus 1%, with a floor of 6%, and may be prepaid with no penalty at any time.

This credit facility is a strong indication of James’ and our lenders’ ability to offer credit solutions tailored to the unique needs of a company and underscores the strength of our nationwide banking platform in the fast-growing cannabis market,” Needham Bank CEO Joseph Campanelli said.

IM Cannabis issues financing 

IM Cannabis also said that it will issue $5 million worth of nonbrokered financing – similar to a stock split. The company intends to use the proceeds from the offering for general working capital purposes.

Following the deal, the company may issue up to 10 million common shares at a price of 50 cents per common share. The deal is expected to close on or about Aug. 22.


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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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