Debra BorchardtOctober 24, 2023
The case revolved around a process for synthesizing cannabinoids.
Aurora Cannabis Inc Archives - Green Market Report
Debra BorchardtOctober 24, 2023
StaffAugust 25, 2022
The Daily Hit is a recap of cannabis business news for August 25, 2022.
ON THE SITE
Aurora Buys $45 Million Majority Stake in Bevo Farms
Bevo will take over the shuttered Aurora Sky facility as part of the completed deal. Aurora Cannabis (Nasdaq: ACB, TSX: ACB) acquired a majority stake in grow giant Bevo Farms in a bid to consolidate and offload one of its largest greenhouses. Read more here.
New York Opens Adult-Use Retail Application
OCM said that it would distribute up to 150 conditional adult-use retail dispensary permits. New York’s Office of Cannabis Management is now accepting applications for those directly affected by the war on drugs in a first-round distribution of state adult-use retail licenses. Read more here.
SLANG Forms M&A Division as Revenues Rise
SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) revenues rose in the second quarter as the company looks toward snapping up new opportunities through a new M&A commission. The cannabis consumer packaged goods company released financial results for the second quarter ending June 30, 2022. Read more here.
Feds Agree to Create Task Force to Help Psychedelics Development
The task force would address issues associated with the approval and rollout of medical psychedelics to treat mental health disorders. Earlier this month, the U.S. government took a significant step toward legitimizing psychedelics as a therapeutic treatment by announcing the formation of an interagency task force around the issue. Read more here.
IN OTHER NEWS
POSaBIT Systems Corporation
POSaBIT Systems Corporation (CSE: PBIT, OTC: POSAF), the leading provider of payments infrastructure in the cannabis industry, today announced its financial results for the three months ended June 30, 2022. Read more here. Read more here.
Blueberries Medical Corp.
Blueberries Medical Corp. (CSE: BBM) (OTC: BBRRF) (FRA: 1OA), the Canadian parent of Blueberries S.A.S., a Latin American licensed cultivator and producer of medicinal cannabis and medicinal-grade cannabis extracts, reported its financial results for the quarter ended on June 30, 2022. Read more here.
Cannabis Global, Inc.
Cannabis Global, Inc. (OTC: CBGL), a licensed Los Angeles-based manufacturer and distributor in the cannabis sector, today made comments on expected corporate growth and unique products launching into the California Cannabis marketplace. For the fiscal year ending on August 31, 2022, the company expects to report strong growth, driven by new product introductions and multiple new distribution partnerships. Read more here.
Far & Dotter
Far & Dotter, the inclusive cannabis dispensary franchise model from Curio Wellness, has announced its intentions to support entrepreneurs applying to enter New York’s complex cannabis industry. Read more here.
Abaca, Pacific Valley Bank
Abaca, a financial platform for cannabis operators, and Pacific Valley Bank (OTC Pink: PVBK), are partnering to expand access to cannabis banking in the California market. Read more here.
Cannabix Technologies Inc.
Cannabix Technologies Inc. (CSE: BLO) (OTC PINK: BLOZF), developer of marijuana breathalyzer devices for law enforcement and the workplace, reports it continues to successfully test a supplemental version of its FAIMS technology for detection of ∆9-tetrahydrocannabinol (THC) and related analytes in human breath in new comprehensive multi-analysis study of subjects under the influence of marijuana in the southern United States. Read more here.
Ascend, Teamsters Local 25
Workers at Ascend in Boston voted overwhelming this week to join Teamsters Local 25, becoming the first cannabis dispensary in New England to organize with the union. 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 natural, scalable, and accessible psychedelic and functional mushrooms, announced that it has finalized three new Canadian retail and e-commerce distribution agreements for its Optimi Life nutraceutical mushroom products. Read more here.
Debra BorchardtJune 28, 2022
Two analysts have begun warming up to Aurora Cannabis (NASDAQ: ACB) but for two entirely different reasons. Stifel analyst W. Andrew Carter upgraded his rating on Aurora from Sell to Hold and lowered his target price from C$2.50 to C$2.15. Cantor Fitzgerald analyst Pablo Zuanic upgraded his rating from Neutral to Overweight and increased his price target from C$3.90 to C$4.05. The stock is currently trading around C$2.00 ($1.55).
Stifel Upgrade
The Stifel report focuses mostly on Aurora’s recent bought deal offering. The original announcement of the offering and attached warrants caused the stock to sell off by 40%. The analyst believes the stock’s valuation properly reflects the 31% dilution caused by the offering that will bring Aurora’s share count to 297 million. However, the plus side to the offering is that it brings in an estimated C$240 million. Carter wrote, “We estimate Aurora will have just over C$500 million of cash at the end of 4Q22 with C$450 million of available cash.” Stifel also pointed out that the company could have as much as C$90 in cost savings as it right sizes its expenses to recognize the limitations of Canada’s adult-use market. Carter’s report says Aurora will generate positive EBITDA in the first half of 2023.
Cantor Upgrade
While the Cantor Fitzgerald analyst Pablo Zuanic touched on Aurora’s offering, his analysis zeroed in on the company’s potential in the German market. He wrote, “We expect Europe and more specifically Germany, to be a relevant potential catalyst and sentiment driver for cannabis stocks over the next 12-18 months.” Only Aurora and Tilray have licenses to produce in Germany and it is questionable whether the country will allow imports and may limit country licenses. “We believe that Germany is likely to legalize rec sometime in 2023 and sales could begin in 2024,” wrote Zuanic. Meaning this theme could take some time to play out.
The current medical market in Germany is about 30 tons or 480 million euros. Cantor thinks that the German adult-use market could reach $4 billion in the first year. The report points out that Germany has a population of 83 million versus New York’s population of 20 million, suggesting a bigger market than what is expected to be the largest state market in the U.S. However, the cultural comparison isn’t addressed, i.e. the overall liberal nature of New Yorkers versus the relatively conservative nature of Germans. The analyst acknowledged the uncertainty of the situation but still believes the potential for the German market is not reflected in Aurora’s valuation. Cantor thinks the German market could double Aurora’s sales.
Cantor’s take on the offering was that it was just “poorly timed.” Zuanic thinks the 40% selloff for just 20% dilution signaled a buying opportunity. Plus, even though the company did dilute shares through the offering, it also bought back $20 million of its outstanding convertible debt. The analyst wrote, “We expect the company to continue to buy back debt. Also, as fundamentals improve, we assume the company will be able to refinance part or all of the convertible debt.”
The price target is also worth addressing since it is much more generous than Stifel’s. Cantor wrote, “To set the price target for ACB, we use ‘normalized EBITDA margins’ by division and assign different multiples to the various units using a sum-of-the-parts approach for our FY24 estimates….Our method yields a June 2023 price target of C$4.05 taking those FY24 (June) numbers.”
In Closing
Cantor doesn’t think cannabis stocks will move very much without some sort of legislative reform in the U.S. Whether it’s banking legislation or something else, they see that as the catalyst to move the group. They don’t think the addition of new market states like New Jersey and New York will actually move the needle for the overall group.
StaffMay 26, 2022The Daily Hit is a recap of the top cannabis business stories for May 26, 2022.
ON THE SITE
Cannabis Executives Go On Stock Buying Spree
As the cannabis industry matures, certain patterns are beginning to be established not unlike other retail industries. The one that just occurred is the first-quarter dip in sales. As companies are delivering their first-quarter results, many told investors that sales dipped after the fourth quarter, but that the second quarter was picking up. Read more here.
Ayr Wellness Inc.
Ayr Wellness Inc. (OTCQX: AYRWF) reported financial results for the first quarter ending March 31, 2022 with revenue rising 90% to $111.2 million over last year’s $58 million. Sales did slip a tiny bit from the fourth quarter’s revenue of $111.8 million. Ayr is forecasting $250 million of Adjusted EBITDA, $100 million of operating income, and $800 million of revenue for the fourth quarter of 2022. Read more here.
Decibel Cannabis Company Inc.
Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) released its first-quarter financial results for the first quarter ending March 31, 2022. Decibel reported $23 million in total sales for the quarter, with strong growth over the fourth quarter and topping last year’s revenue of $14 million in the same time period in 2021. The company said that net revenue growth was driven by the launch of Decibel’s new infused pre-roll lines and continued growth in demand for flower, vape and concentrate products, despite the first quarter historically being a seasonally weak period. Read more here.
Humble & Fume Inc.
Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) reported its third-quarter fiscal 2022 financial results for the fiscal third-quarter ending March 31, 2022. Revenue fell to $16 million in the quarter versus last year’s revenue of $18 million for the same time period. Humble & Fume said that the revenue decreased as a result of management’s focus on selling higher-margin products and moving away from lower-margin sales channels. Read more here.
Biotech Investors are Circling Around Psychedelics
Investment in a biotech company is a tricky move for any seasoned investor. It’s always challenging, with great potential wealth tied up for years while the results of clinical trials get published and the approval process of the Food and Drug Administration (FDA) slogs on. To really understand it, there is complicated medical jargon to figure out amidst starry-eyed promises being promoted of treating a human illness or disease for the first time with a new life-changing drug. Read more here. Read more here.
IN OTHER NEWS
Aurora Cannabis Inc.
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), a Canadian cannabis company, today has announced that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity and BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 51.1 million units of the Company, at a price of US $2.45 per Unit for gross proceeds of approximately US $125.2 million. Each unit will be comprised of one common share of the company and one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share of the company for a period of 36 months following the closing date of the offering at an exercise price of US $3.20 per warrant share, subject to adjustment in certain events. Read more here.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF), an international provider of consumer products in cannabis, announced the launch of Endless Coast Cannabis-Infused Seltzers, a highly sociable line of low-calorie, low-sugar and low-carb beverages which will be available tomorrow at Curaleaf dispensaries in Massachusetts. Read more here.
The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF), a sustainable global cannabis company, reported its financial results for the quarter ended March 31, 2022. “We continued our momentum from Q4 2021 with strong Q1 2022 results, including another record month in March. These results can be attributed to the launch of new products and our existing products gaining further traction, affirming the strategic approach we have taken,” commented Sean Bovingdon, CEO of TGOD. Read more here.
Akerna Corp.
Akerna Corp. (Nasdaq: KERN) announced today the results of its reconvened 2022 annual meeting of stockholders held Wednesday, May 25, 2022, at 9 a.m. Mountain Time with respect to all proposals described in Akerna’s definitive proxy statement filed with the U.S. Securities and Exchange Commission on April 19, 2022. Read more here.
Icanic Brands Company, LEEF Holdings, Inc.
Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF), a brand operator of California cannabis brands, provided the following corporate update and revenue forecast for the three-month period ending July 31, 2022 and for the fiscal year ending July 31, 2023. These financial results reflect the first full quarter and fiscal year of Icanic Brands combined with its recent acquisition of LEEF Holdings, Inc., a California based extractions company. Read more here.
Kiaro Holdings Corp.
Kiaro Holdings Corp. (TSXV: KO) (OTC: KIARF), is today pleased to announce its fourth quarter and year-end financial results for fiscal year 2022 ended January 31, 2022. Significantly expanded retail channel, from 7 to 17 stores, and the addition of experienced results-driven leaders to drive new and expanding revenue channels has delivered record results. Read more here.
Rubicon Organics Inc.
Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) announces that in accordance with the Company’s equity incentive plan, it has amended the terms of 778,500 incentive stock options and granted 40,000 incentive stock options to employees of Rubicon. Read more here.
Debra BorchardtDecember 16, 2020Aurora Cannabis Inc. (NYSE: ACB) provided a business update amending the company’s credit facility. The shares were falling in price on the news and were lately down 1% and selling at $10.01.
The company said that there are no changes to the commitment amounts under the facility which currently stand at $101.2 million under the term loan and $15 million under the revolver (currently $2 million drawn). The second amended and restated credit facility has a first ranking general security interest in the assets of Aurora and can be repaid without penalty at the company’s discretion.
“Our substantial liquidity position has enabled us to revise our credit facility terms by extending maturity and transitioning us from a minimum EBITDA covenant to a minimum liquidity covenant, thereby providing us with the financial flexibility we need to execute our business transformation plan. We are already seeing progress with improving cashflow and product successes such as the recent relaunch of our vapour portfolio. We are also driving our consumer strategy that will serve as a foundation for sustainable revenue growth and profitability over the long-term” stated Miguel Martin, Chief Executive Officer of Aurora.
Stifel analyst Andrew Carter said, “Our outlook suggested difficulty in conforming to outstanding covenants, but the delay in achieving positive EBITDA suggests downside to our estimates. We continue with our Sell rating, and we will update our outlook.”
The company said in a statement that this strategy will delay its ability to achieve positive Adjusted EBITDA as management invests in its consumer business; a strategy that the company believes will serve as a foundation for sustainable growth and profitability in the future. Also contributing to the profitability delay is the unpredictability of the current demand environment, including the resurgence of COVID-19. However, with ~$450 million in cash on hand as of December 15, 2020, management is confident in its liquidity position and its ability to fund its current plan while maintaining optionality for future opportunities.”
Closing Aurora Sun
In addition to the change in the company’s revised credit facility, Aurora it is closing the Aurora Sun facility and has reduced production at its Aurora Sky facility by 75%. Aurora Sky is testing new processes and methodologies proven successful at other cultivation sites in Aurora’s leading network, combined with an increased focus on innovation led by deep plant science and genetics expertise.
Mr. Martin concluded “These hard decisions are being taken to improve cash flow and provide agility to our business. We will continue to make decisions and transform Aurora in the long-term best interests of our shareholders. We look forward to 2021 and providing updates on our business transformation.”
“We are moving to a more variable cost structure in cultivation by expanding our network of external supply and responsibly scaling back production from our fixed asset network. Specifically, in November we closed our Aurora Sun facility and are now scaling back production at Aurora Sky to 25% of its previous capacity. At this level of production, we intend to transform the Sky facility into a high-value cultivation center for our premium strains, and in turn, better align production with current demand for premium flower.”
“Our plan to address the opportunities in the Canadian consumer market, combined with a formidable balance sheet, positions Aurora to remain the leader by revenue in the high-margin Canadian medical market. It also allows the Company to invest in the international medical business, which is exhibiting solid growth. Lastly, we will be able to build on our CBD brand Reliva, which is #1 ranked by Nielsen in U.S. CBD.”
Debra BorchardtJune 24, 2020
Aurora Cannabis Inc. (NYSE:ACB) announced several difficult moves from the company including the layoffs of numerous employees and the closing of several facilities. The Canadian cannabis company laid off 25% of Aurora’s SG&A staff, most of those to take place immediately and a roughly 30% reduction in production staff over the next two quarters. The cuts went to the highest levels including a restructuring of the executive leadership team and the recently announced retirement of President Steve Dobler.
Aurora said it has initiated a plan to close operations at five facilities over the next two quarters in order to focus production and manufacturing at the Company’s larger scale and highly efficient sites. The company will take a charge of $60 during the fourth quarter in order to make these changes. Certainly, it was awful news for the workers at the company who are losing their jobs during a pandemic, but it seemed to cheer the analysts covering the company as ratings were changed.
Stifel Upgrade
Stifel analysts upgraded Aurora Cannabis to hold from sell following the news and said that the company has “weathered the storm.” The stock price target was also raised from C$6.20 to C$17.50 ($12.89). “We believe ongoing cash needs, potential equity dilution, and risk around debt covenants remain as impediments to a more constructive approach with the shares enjoying a still robust valuation (C$2.5 billion enterprise value),” the analysts wrote. “But with the reiteration of the F1Q21 positive EBITDA target, market share gains by Aurora, and stronger Canadian market trends, we believe the fundamental outlook and potential for capitalizing on the global cannabis category’s development are back in focus.”
With regards to the closures of the facilities, analyst Andrew Carter wrote, “We believe the ongoing costs from these facilities are well ahead of the sales associated with them, and the facilities targeted for closure are not producing second generation products. Aurora suggested these actions will be accretive to
the gross margin overall. We believe these savings will provide fuel for remaining competitive against continued price compression in the Canadian dried flower market. Aurora outlined C$200 million in total expected charges: C$60 million in asset impairment charges and $140 million in inventory, primarily trim, 60% from capitalized costs. The latter illustrates the significant burden and associated risk from inventory, and the facility closures will aid the company’s goal of working capital as a benefit, though we remain cautious given the demands of the evolving category.”
Increased Sales Estimate
The analyst also increased his estimates for sales and EBITDA bringing the F1Q21 EBITDA estimate in-line with company guidance. “We are increasing our F4Q20 revenue estimate to C$75 million (from C$67 million) with a stronger performance in the Canadian Consumer segment. Aurora has gained market share
(outlined below) positioning the company well against a Canadian market that has performed above our expectations with April sales flat from the surge in March. We now estimate flat F4Q20 Canadian adult-use sales with robust consumption tempered by wholesale/retail inventory reductions and dried flower pricing compression. We estimate C$487 million in FY22 sales, +70% from our FY20 estimate driven by growth of the Canadian Consumer business. Our outlook considers Aurora keeping pace with the growth of the Canadian adult-use market with narrow but steadily improving EBITDA, an outlook we believe affords room for error in an increasingly competitive/fragmented Canadian market.”
Other Analyst Changes
Cantor Fitzgerald reiterated its overweight rating on the stock late Tuesday. Canaccord Genuity dropped its price target from C$24 to C$21 (roughly $17 to $15.) Analyst Bobby Burleson wrote, “On the back of Tuesday’s corporate updates, although we believe the rightsizing of Aurora’s operations is a crucial step in the company’s path to profitability, with >C$1.2B of announced write-offs so far in the first six months of 2020 (or ~25% of the book value of ACB’s net assets), a high degree of uncertainty still clouds this name. As a result, we have lowered our pricing assumptions for dried bud and added a 100bp premium to our adult-use valuation for execution risk. As a result, we are lowering our PT to C$21.00 (from C$24.00).”
According to CNN Business, 15 analysts offering 12-month price forecasts for Aurora Cannabis Inc have a median target of $10.33, with a high estimate of $19.31 and a low estimate of $7.10. The median estimate represents a -24.00% decrease from the last price of $13.59. The current consensus among 17 polled investment analysts is to hold stock in Aurora Cannabis Inc. This rating has held steady since June when it was unchanged from a rating.
StaffJune 23, 2020
Aurora Cannabis Inc. (NYSE: ACB) is the latest cannabis company to destroy the job argument as a reason for legalization. The Canadian cannabis company laid off 25% of Aurora’s SG&A staff, most of those to take place immediately and a roughly 30% reduction in production staff over the next two quarters. The cuts went to the highest levels including a restructuring of the executive leadership team and the recently announced retirement of President Steve Dobler.
“Across our organization, we continue to take decisive action and execute on our previously announced Business Transformation Plan,” stated Michael Singer, Executive Chairman and Interim CEO of Aurora. “With today’s announcement, we have achieved our stated SG&A run-rate target and expect to operate at approximately $42 million for the first quarter of fiscal 2021. The further cost savings and margin improvement to be realized from our facility rationalization plan is another example of our commitment to deliver greater efficiency throughout the business.”
Mr. Singer further elaborated, “This has not simply been a cost-cutting exercise. We have undertaken a strategic realignment of our operations to protect Aurora’s position as a leader in key global cannabinoid markets, most notably Canada. Both the Canadian facility rationalization and inventory revaluation are expected to improve gross margins and accelerate our ability to generate positive cash flow. We believe that we now have the right balance for the long-term success of Aurora – market leadership, financial discipline, operational excellence, and strong execution. We remain focused on making Aurora a profitable and robust global cannabinoid company.”
The company said that with a new SG&A run-rate of approximately $42 million the company could still support significantly higher levels of revenue in the future without a corresponding level of growth in SG&A.
Consolidation of Production Activities
Aurora said it has initiated a plan to close operations at five facilities over the next two quarters in order to focus production and manufacturing at the Company’s larger scale and highly efficient sites. The company will take a charge of $60 during the fourth quarter in order to make these changes. The affected facilities are the smaller scale facilities, Aurora Prairie, Aurora Mountain, Aurora Ridge, Aurora Vie and Aurora Eau. Aurora expects that part of the Aurora Vie facility in Quebec will remain operational to allow for the manufacturing of certain higher-margin products.
By the end of fiscal Q2 2021, the company said it intends to consolidate Canadian production and manufacturing at Aurora Sky, Aurora River (EU-GMP certified), Whistler Pemberton, and Polaris. As previously stated, the Aurora Sun production facility has been scaled back to six grow bays and will allow for efficient scale production on an as-needed basis as market demand grows. As part of the transition, the Company also intends to immediately ramp up cannabis production at its Nordic facility in Europe from which it believes can adequately service the European market with EU-GMP certified products. The company also said it expects to record a charge of up to $140 million in the carrying value of certain inventory, predominantly trim, in order to align inventory on hand with near term expectations for demand. Approximately 40% of the expected inventory provision relates to the non-cash IFRS fair value adjustment within the inventory.
In addition to the company’s continued focus on production efficiencies and yield improvements, Aurora expects that the production facility closures will be accretive to gross margin as the move to large scale operations is expected to result in a material reduction in per unit cost of goods by Q3 2021. The reduction in inventory carrying value is also expected to be modestly accretive to future gross margins as older, higher-cost inventory is replaced with newer, lower-cost inventory and consequently reflected in gross margins.
Aurora plans to deliver its Q4 2020 full financial results in early September.
Kaitlin DomangueFebruary 13, 2020
Its time for your Daily Hit of cannabis financial news for February 13th, 2020.
On the Site
Meet the Weedy Award Finalists
The founder and Editor of WeedWeek, Alex Halperin, has created the Weedy Awards, with winners being announced on February 28th in Hollywood. Awards will be presented in categories like best grow, the most socially responsible company, the best delivery company, the best edibles, and the people’s choice cannabis celebrity.
Aurora Cannabis Stock Slides as Revenue Falls
Canadian-based Aurora Cannabis Inc. (NYSE: ACB) saw its shares falling in early trading after the company said that revenues fell in the second quarter of fiscal 2020 ending December 31, 2019. Aurora reported that its total net revenue reported in Canadian dollars fell 26% sequentially to $56 million in the second quarter from $75 million in the first quarter of 2020. It was higher than the 2018’s second quarter, which delivered net revenue of $54 million.
Neptune Wellness Delivers Solid Quarter as Sales Increase
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) announced its financial results for its fiscal third-quarter ending December 31, 2019. Total revenues for Neptune were $9.1 million, a sequential increase of $2.6 million or 41% over the second quarter ended September 30, 2019. This was also an increase of $2.6 million or 40% compared to $6,538 for the three-month period ended December 31, 2018.
In Other News
SLANG Worldwide Partners with Cali Cannabis Cookie Company
SLANG Worldwide Inc. (CNSX: SLNG), leading cannabis consumer packaged goods company, has partnered with Cookies, a leading California-based cannabis brand.
Pursuant to the deal, SLANG will bring Cookies’ products to the Oregon market.
Cresco Labs Expands C-suite
Cresco Labs will name marketer Greg Butler as its first-ever Chief Commercial Officer. Butler has past supported the brand in a CMO capacity, developing the commercial growth strategy for the brand. He has strong plans to develop Cresco’s market in 2020, as well as promoting diversity and social equity in the cannabis space.
William SumnerMarch 28, 2019It’s time for your Daily Hit of cannabis financial news for March 28, 2019.
On the Site
CannTrust Holdings Inc.
Sales are up, but profits are on the decline for CannTrust Holdings Inc. (NYSE: CTST) as the company releases their financial results for the fourth quarter and year ending on December 31, 2018.
SAFE Banking Act Advances As Committee Votes For Approval
The House Financial Services Committee voted 45 to 15 to advance the Secure and Fair Enforcement (SAFE) Banking Act. Currently, Federal law prohibits banks from providing banking services to cannabis companies since cannabis is illegal despite some states legalizing cannabis.
In Other News
MJIC Inc.
MJIC Inc. announced today that it would change its name to ManifestSeven. The company is rebranding itself as part of its preparation to go public in Canada in the first half of 2019. “Our new name – ManifestSeven – speaks to the evolution of our company and the destiny of legal, compliant cannabis in the United States,” said Sturges Karban, ManifestSeven’s Chief Executive Officer and Director. “As we prepare to enter the public markets, we are already seamlessly integrating fully compliant operations across California, creating the cannabis industry’s first omnichannel distribution and retail superhighway. Our name change speaks to our ambition to continue growing in California and other markets as they legalize across other states.”
Aurora Cannabis Inc.
Aurora Cannabis Inc. (NYSE: ACB) announced that the company has added product information numbers (PINs) to 78 medical cannabis products. The PINs are meant to help track insurance coverage for medical cannabis patients. Patients hoping to submit health insurance claims to third party providers will be able to specifically identify the products they use, which in turn will theoretically help speed up the coverage process.
Flower One Holdings Inc.
Flower One Holdings Inc. (CSE: FONE) announced that it has closed its previously announced public offering of unsecured convertible debenture units of the company. Issuing 50,000 units as a priced of $1,000, the company raised $50 million. The net proceeds of the offering will go towards working capital, general corporate purposes, finishing the development and construction of a production facility in Nevada, and the payment of outstanding notes.
Newstrike Brands Ltd.
Newstrike Brands Ltd. (TSXV: HIP) announced that it will invest $5 million in Green Tank Technologies, a manufacturer of cannabis vaporizer hardware and technology. “. Our strategic investment in Green Tank puts us in a strong position to become a preferred supplier of end-to-end vape solutions to the adult use recreational market,” said Mark E. Burton, Chief Strategy Officer, Newstrike Brands.
William SumnerOctober 26, 2018It’s time for your Daily Hit of cannabis financial news for October 25, 2018.
On the Site
MedMen Enterprises
MedMen Enterprises (MMNFF) reported fourth quarter revenues of $20.6 million, an increase of 1,317% over last year’s $1.5 million and a 44% sequential increase over the third quarter revenue of $14.3 million. The jump was attributed to the number of stores that came online during the quarter. However, operating expenses for the fourth quarter, including SG&A, was $72.6 million.
Canadian Cannabis Companies Report Record Sales Post-Legalization
It has been a little more than a week since recreational cannabis sales were launched in Canada, and already the policy has become a big hit. Millions of dollars in cannabis sales have already been recorded, and in the province of British Columbia alone there have been more than 21,000 transactions.
Cannabis Companies Are Navigating Trump’s Tariffs
Medical Marijuana, Inc. (OTC: MJNA) CEO Dr. Stuart Titus tells Green Market Report how his company has had to navigate the rapidly changing landscape when it comes to President Trump’s approach to international trade and tariffs.
In Other News
Aurora Cannabis Inc.
Aurora Cannabis Inc. (ACB) announced that the Polish Ministry of Health has given the company approval to import its first shipment of medical cannabis, which is expected to occur over the next several days. Aurora Deutschland GmbH will ship the product to a hospital and a pain treatment in Warsaw. “Becoming the first company to supply cannabis to Poland is validation of Aurora’s ability to do business in international markets with high barriers to entry,” said Neil Belot, Chief Global Business Development Officer for Aurora. “This is an important milestone for patient access in Poland…”
Namaste Technologies Inc.
Namaste Technologies Inc. (N) today closed its previously announced bough deal short form prospectus offering, which included the full exercise of the over-allotment option. In total, 17.25 million units of the company were sold at a price of $3.00 per unit; generating $51.75 million in funding. Each unit consisted of one common share and three quarters of one common share purchases warrant. Eight Capital and Canaccord Genuity Corp. acted as co-lead underwriters and joint book runners. The underwriters for the deal received a 6% commission of the gross proceeds. The proceeds from the offering will be used by the company to general working capital; as well as inventory and supplies, capital improvements, personnel and facility operations, etc.
4Front Holdings, LLC
4Front Holdings, LLC announced that it has closed a private placement of equity securities. Initially seeking $15 million, the company increased the initial amount to $31 million due to increased demand. Eight Capital acted as the lead underwriter and bookrunner. The proceeds of the offering will go towards the funding of ongoing investments, the buildout of its multiple Mission-branded dispensaries and cultivation facilities, and for merger and acquisition opportunities. “The success of the Offering demonstrates that our message of pursuing prudent yet aggressive growth is resonating with investors,” said Josh Rosen, 4Front CEO and co-founder. “I’m particularly excited by the caliber of our new investors, as well as the broad participation in the Offering by our existing investors.”
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