Aleafia health Archives - Green Market Report

StaffAugust 23, 2023
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BusinessDaily Hit

The Daily Hit: August 23, 2023

3min00

The Daily Hit is a recap of the top financial news stories for Aug. 23, 2023.

On the Site

New York Regulators Name 30 Dispensaries Eligible to Open Under Court Order

Only 30 conditional adult use retail dispensary licensees in New York would be eligible to open in coming weeks under conditions outlined in a preliminary injunction issued by state judge Kevin Bryant recently, state officials noted in a court filing on Tuesday. That’s out of 463 CAURD licenses approved prior to the injunction. Read more here.

Related: At Least a Dozen New York Cannabis Farmers Markets Scheduled

Glass House Leadership Talks Numbers, Hurdles, Federal Cannabis Reform

CEO Kyle Kazan and CFO Mark Vendetti sat down with Green Market Report after the company released its second quarter earnings to share some of their thoughts on market trends and where the national marijuana industry may be headed in the not-too-distant future. Read more here.

Red White & Bloom Gets Green Light for Aleafia Acquisition

The Ontario Superior Court of Justice approved a stalking horse asset purchase and share subscription agreement in which RWB could buy certain assets from Aleafia and subscribe for shares of certain subsidiaries of the company. Read more here.

Missouri Cannabis Regulators Crack Down on ‘Lab Shopping’

The demand for potent cannabis products has put labs under pressure to guarantee high THC levels, and now Missouri’s state health department is stepping up to ensure standardized and accurate reporting in marijuana potency and safety testing. Read more here.

Vext’s Revenue Hits $9.2M as Ohio Expansion Looms

Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) reported revenue of $9.2 million for the second quarter ended June 30, up from $8.76 million last year. Net income totaled $535,454 in the period versus $1.59 in the same time last year, according to filings. Read more here.

In Other News

Twilio

Twilio, one of the nation’s largest communications-service providers for retailers, is prohibiting cannabis companies from using its software to reach customers. Read more here.

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StaffJuly 25, 2023
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BusinessDaily Hit

The Daily Hit: July 25, 2023

4min00

The Daily Hit is a recap of the top financial news stories for July 25, 2023.

On the Site

Maryland Hemp Companies Sue State Over Adult-Use Marijuana Rules

A group of hemp companies in Maryland have filed suit against the governor and several state officials, claiming that the regulatory plan lawmakers authorized for the recreational cannabis industry will put them out of business. Read more here.

Hemp Hearing on FDA Inaction to Be Held Thursday

The Subcommittee on Health Care and Financial Services will host a hearing to look at the Food and Drug Administration’s failure to regulate hemp-derived and cannabidiol products under existing authorities for years. Read more here.

Aleafia Health Files for Creditor Protection After Investors Axe RWB Deal

Toronto-based Aleafia Health Inc. (TSX: AH) (OTCQB: ALEAF) filed for creditor protection under the CCAA – akin to bankruptcy proceedings in the U.S. – in response to recent financial struggles, complicated by a cancelled acquisition proposal by Red White & Bloom Brands Inc. (CSE: RWB) (OTC: RWBYF), which was officially sacked on July 14, a month after the deal was announced. Read more here.

Parallel, IIP Duel Over Insolvency Claims in $6M Dispute

Atlanta-based multistate operator Parallel’s subsidiary, Goodblend Pennsylvania LLC, is attempting to avoid a near $6 million payment relating to a failed grow facility by declaring insolvency, according to a recent complaint filed in a Pennsylvania court. Read more here.

Detroit to Open 2nd Wave of Recreational Cannabis Licenses

The city of Detroit on Monday said it will start accepting applications for limited marijuana business licenses on August 1. These licenses will include dispensaries, microbusinesses, and consumption lounges. Read more here.

In Other News

Flora Growth

Flora Growth Corp. (Nasdaq: FLGC) will sell its Colombian-related subsidiaries and assets to a private company for C$800,000. The sale is expected to close by July 31. The company intends to maintain a presence in Latin America through Just Brands’ distribution relationships. Read more here.

MIRA Pharmaceuticals

Baltimore-based MIRA Pharmaceuticals filed a registration statement with the U.S. Securities and Exchange Commission announcing its plan to go public on the Nasdaq under the symbol MIRA. The proceeds from the initial public offering will fund the clinical studies necessary for MIRA’s synthetic cannabis drug to receive approval from the Food and Drug Administration, the filing said. Read more here.

Missouri

The Missouri Department of Health and Senior Services will begin accepting cannabis microbusiness applications on Thursday, July 27. The application window will be open through Aug. 10. Applications can be submitted through the online portal. The lottery to select winners will take place no later than Sept. 1. Read more here.

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StaffJune 14, 2023
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BusinessDaily Hit

Daily Hit: June 14, 2023

4min00

The Daily Hit is a recap of the top financial news stories for June 14, 2023.

On the Site

Hexo Shareholders Greenlight Tilray Deal, Company Warns of Possible Default

Canadian licensed cannabis producer Hexo Corp. (TSX: HEXO) (Nasdaq: HEXO) is set to be acquired by Tilray Brands, following a formal sign-off on Wednesday by Hexo shareholders in a near-unanimous vote. If the deal doesn’t go through as planned by the end of the month, Hexo could wind up in default, the company warned. Read more here.

Maryland Regulators Shut Down Cookies Baltimore Over Advertising, Security Breaches

Cookies Baltimore, formally known as MIMD Operating 1 LLC, opened its doors on May 15 and found itself in hot water less than a month later. The court document obtained from the Maryland Cannabis Administration details alleged breaches of both the Cannabis Reform Act and Code of Maryland Regulations. Read more here.

High Tide Revenue Rises, But Company Still in the Red

Canada-based High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) drastically improved its revenue for its second fiscal quarter, which ended April 30, by a whopping 46%, but the company still fell short of profitability, with a $1.6 million net loss. Read more here.

Aurora Cannabis Revenues Rise as Cash Burn Rages

Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) reported total net revenue for its fiscal third quarter was $64 million, which rose sequentially from the second quarter’s revenue of $61.7 million and topping last year’s revenue of $50.4 million. The company attributed the increase to the contribution of $10.8 million from Bevo, which was acquired in August 2022. Read more here.

Aleafia Revenue Increases Slightly Ahead of RWB Acquisition

Aleafia Health Inc. (TSX: AH)(OTCQB: ALEAF) delivered its audited financial results for the quarter and fiscal year ending March 31 in Canadian dollars. During the fourth quarter, total revenue increased 9% to $11.7 million from $10.7 in the 2022 fourth quarter. Read more here.

In Other News

Pineapple

Pineapple Inc. (OTC Pink: PNPL), a legal cannabis industry operator focused on non-plant touching activities, such as leases to licensed cannabis operators, online, and in-store hemp-derived CBD transactions, and cannabis business licensing and consulting services, has acquired Pineapple Wellness Inc. and its e-commerce platform, PineappleWellness.com. Read more here.

PRODUCT RECALL: Kind Care of Colorado & Elevated

Another marijuana recall over mold and yeast concerns has hit Colorado, with the latest safety notice impacting dispensaries in Fort Collins and Longmont. According to a June 14 recall notice from the Colorado Marijuana Enforcement Division, Kind Care of Colorado in Fort Collins and Longmont dispensary Elevated sold potentially unsafe marijuana flower, shake and pre-rolled joints from February 10 to June 6 of this year. Both medical and recreational marijuana harvests were included in the recall. Read more here.

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StaffJune 7, 2023
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BusinessDaily Hit

Daily Hit: June 7, 2023

5min00

The Daily Hit is a recap of the top financial news stories for June 7, 2023.

On the Site

Red White & Bloom to Buy Financially Troubled Aleafia

Red White & Bloom Brands Inc. (CSE: RWB)(OTC: RWBYF) is buying Aleafia Health Inc. (TSX: AH)(OTCQB: ALEAF) in a deal that gives RWB 76% of the combined company, leaving Aleafia shareholders with 24%. The company believes there will by $10 million in synergy savings. Read more here.

No New Cannabis Business Licenses in San Francisco Until 2028

Under the terms of the measure approved unanimously by the city Board of Supervisors on Tuesday, no new cannabis business license applications will be eligible for consideration until New Year’s Eve in 2027 at the earliest, and that will only be if the board that year decides to let the new moratorium expire. Read more here.

Allegations of Ponzi Scheme, Forged Documents Plague Cannabis REIT IIPR

Cannabis real estate investment trust Innovative Industrial Properties Inc. (NYSE: IIPR) is facing more legal fury from its shareholders. The plaintiffs in the latest case allege that the REIT’s directors neglected to properly vet two of its largest tenants, Southern California-based Kings Garden and Parallel, resulting in considerable financial losses when the tenants became embroiled in scandal. Read more here.

Investor Money Continues to Flow into Troubled California, New York Markets

Despite the dire situation in California and criticism of the New York adult-use market launch, investor money continues to flow into those states. As of June 2, Viridian Capital Advisors reported that in the last 12 months California led in the total number of investments with 28 total raises, and it still posts up at third place with $294 million in invested capital. Read more here.

Rhode Island Cannabis Growers Plead for More Retailers

During a Rhode Island state Senate hearing this week, some of the 60 licensed marijuana farmers begged regulators to increase the number of licensed dispensaries, since the current number of seven is far from enough to handle the amount of cannabis the farms have ready to sell. Read more here.

In Other News

Thrive Social Equity Manager XVIII LLC

A Los Angeles cannabis entrepreneur has agreed to settle her suit claiming she was duped into a deal that would saddle her with debts, having purportedly been pressured into an unfair contract with little time to read it before a deadline. Jami Burrows and Thrive Social Equity Manager XVIII LLC filed a notice Friday letting the Los Angeles County Superior Court know they’ve entered a settlement resolving the dispute. Terms of the settlement were not disclosed in the notice. Read more here.

Flora Growth Corp.

Flora Growth Corp. (Nasdaq: FLGC), a global cultivator, manufacturer, and distributor of cannabis products, will effect a reverse stock split, effective June 9, at a ratio of 1-for-20. Read more here.

Florida Adult-Use Initiative

The executive director of the Suncoast NORML chapter fears a proposed recreational marijuana initiative may be doomed because it offers little change for consumers, but provides a bigger market for the medical marijuana giant backing the proposal. Read more here.

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StaffFebruary 13, 2023
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BusinessDaily Hit

Daily Hit: February 13, 2023

4min00

The Daily Hit is a recap of the top financial news stories for February 13, 2023.

On the Site

SNDL Lays Off Alberta Grow Employees, Focuses on Premium, Alcohol Brands

SNDL Inc. (Nasdaq: SNDL) will wind down its Alberta operations and lay off 85 facility employees, the company announced on Monday. The Canadian grow giant said that it would be “rightsizing” its cannabis cultivation site in Olds, Alberta, in order to focus on premium products and brands. Read more here.

Aleafia Health Trims Workforce 20%, Despite Rising Revenue

Aleafia Health Inc. (TSX: AH) (OTCQB: ALEAF) touted its profitability as the Canadian licensed producer managed to grow its different revenue channels, despite having to shore up costs and lay off 20% of its full-time payroll. Read more here.

Washington D.C. Businesses Optimistic About Upcoming Industry Expansion

In coming months, the city’s seven licensed dispensaries and nine licensed growers will be joined by an unknown number of gray market “gifting” businesses that have been operating in a quasi-legal jurisdiction for years. Read more here.

Future Looks Bright for Small Cap Cannabis

The author of a year-end letter to cannabis investors expects smaller cannabis companies to have an easier path than multistate operators going forward. Read more here.

C21 Opts to Not Dilute Shares

While most cannabis companies issue shares like it’s Monopoly money, Canadian operator C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) is choosing to work against further share dilution instead. Read more here.

Alleaves Buys BioTrack for $30 Million to Enter Growing New York Market

Health care software provider Forian Inc. (Nasdaq: FORA) has sold its cannabis software subsidiary, BioTrack, to rising cannabis tech firm Alleaves Inc. for $30 million in cash. Read more here.

In Other News

Gage Cannabis Co./Cookies

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) launched adult-use cannabis sales at its Cookies Detroit retail location. Through its subsidiary Gage Cannabis Co., the company will now provide adult-use customers in Detroit with access to high-quality products. Read more here.

Auxly Cannabis Group

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) entered into an agreement with institutional investors pursuant to which the investors have agreed to purchase, on a private placement basis, 96 million common shares of the company at a price of $0.035 per common share and 96 million common share purchase warrants, with each warrant entitling the investors to purchase one common share at an exercise price of $0.045. Total gross proceeds will reach approximately $3.36 million, before deducting any applicable advisor or finder fees or offering expenses. Read more here.

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Debra BorchardtMarch 25, 2021
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Business

Aleafia Health Takes Huge Write Down On Emblem

3min02

Aleafia Health Inc. (OTC: ALEAF) reported net revenue of $15.4 million in the fourth quarter versus $6 million for the same time period in 2019. The net loss though was a whopping $217.3 million versus last year’s net loss of $9.8 million. Aleafia wrote-down $176.0 million of goodwill associated with the acquisition of Emblem Corp., and $1.4 million of goodwill associated with the acquisition of Canabo Medical Corp.

For the full year, Aleafia Health reported net revenue of $44.5 million versus $16.3 million in 2019. Due to the losses in the fourth quarter, the full-year net loss clocked in at $247 million versus 2019’s $39.6 million.

The company said that the net loss was primarily due to non-cash items including fair value changes in biological assets and changes in inventory sold expense of $11.1 million for the quarter and $29.1 million for the full year. Included in the full year amount is a $17 million write-down to net realizable value of saleable inventory to reflect declining wholesale prices.

Aleafia Health CEO Geoffrey Benic said, “Notwithstanding certain non-cash, one-time expenses, our focus on disciplined, profitable growth has paid dividends with our first year of positive adjusted EBTIDA. The commercialization of our business is rapidly accelerating with the shift in revenue mix towards the sale of highly profitable packaged cannabis products providing a sustainable source of continued growth.”

Wholesale Business Climbs

The company said that the net bulk wholesale revenue received from sales to cannabis licensed producers for the quarter and full year was $10.0 million and $29.9 million, an increase of 256% and 783% respectively, over the same periods in the prior year. The increase was primarily due to the sale of flower harvested at the Port Perry Facility’s outdoor cultivation site to other LPs, and a larger harvest in 2020 relative to the prior year, yielding 31,200 kgs of dried flower.

Write Downs

Aleafia said that during the quarter, it incurred a $22.1 million write-down of intangible assets expense. This included a $10.6 million write-off associated with its 51% interest in the Flying High Brands joint-venture. The company said it is now primarily developing its brands and products in-house, rather than licensing them from other cannabis companies.

 

 

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Debra BorchardtMay 13, 2020
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Business

Aleafia Reports Rising Revenues As It Trims Losses

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Aleafia Health Inc. (OTC: ALEAF) reported its financial results for the first quarter ending March 31, 2020, with revenue increasing 143% sequentially to $14.6 million. Aleafia said that it was due to an $8.9 million increase in cannabis net revenue which was 859% more than the 2019 first quarter.

The company also delivered a net loss of $6.2 million, which has been trimmed sequentially from a net loss of $9.8 million. The company attributed the net loss to non-cash items including changes in the fair value of inventory sold, expenses of $6.2 million, amortization and depreciation expenses of $2 million, and a deferred income tax expense of $1.7 million.

“Our disciplined, sustainable growth has resulted in a breakthrough quarter for Aleafia Health. Our patient-centric approach remains at the core of our business as we build our cannabis health and wellness ecosystem,” said Aleafia Health CEO Geoffrey Benic. “The prudent allocation of capital instituted over the course of 2019 is reflected in streamlined expenses, a fifth consecutive quarter of solid revenue growth, and industry-leading gross margin among North American cannabis industry reporting issuers. ”

COVID-19

On April 17, 2020, Aleafia provided a comprehensive corporate update on business operations, including changes in operations due to the COVID-19 pandemic. The most significant change in operations to date has been the temporary closure of the physical offices of the company’s national network of cannabis clinics and education centers since March 16. The company noted that all patient consultations are now completed using virtual clinic services with no significant increase or decline in the number of patients seen due to the closure of physical locations.

Earlier this week, Aleafia announced that it had entered into an agreement with Eight Capital on a “bought deal” offering for shares priced at $0.65 for gross proceeds of $13 million. The company also reported that it had secured a Health Canada Licence Amendment for its Port Perry Facility’s outdoor cultivation expansion. The expansion adds an additional 60 acres of outdoor cultivation area, bringing the total to 86 acres (3.7 million sq. ft.) The amendment was granted on May 12, 2020, expires on October 13, 2020, and authorizes cannabis cultivation in “Outdoor Grow Area 5.

Benic added, “With a fully licensed infrastructure now in place, we look forward to leveraging our lean, integrated production ecosystem for operational and financial success. In the second half of 2020 we look forward to introducing  an exciting roster of new Cannabis 2.0 product formats tailored to health and wellness consumers while further expanding the reach of our existing product portfolio.”

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