Canopy Growth Corp. Archives - Green Market Report

Debra BorchardtSeptember 18, 2023


It seems investor interest in the cannabis sector is returning. Cannabis heavyweights Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) and Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) both inked large private placements with institutional investors. Capital has been especially tight in the industry for the past two years and these deals could indicate that investors are feeling more positive about the future of cannabis companies.

Canopy Growth

Canopy Growth reported it entered into subscription agreements, dated September 18, 2023, with certain institutional investors in a private placement offering of 22,929,468 units at a price per Unit of $1.09 to raise approximately $25 million. In addition to that, the investors also hold an over-allotment option to buy up to an additional 22,929,468 at the same price for another $25 million on or before Nov. 2, 2023.

Canopy Growth said the money would be used to further strengthen its financial position and is expected to be used for working capital and other general corporate purposes.

Columbia Care

Columbia Care announced that it also entered into subscription agreements with institutional investors for the purchase and sale of 22,244,210 units at a price of C$1.52 per Unit to raise C$33.8 million or approximately $25 million. Columbia Care said it plans to use the proceeds from the offering to reduce its outstanding indebtedness and for general corporate purposes.

In addition to the first $25 million, the investors will have the option to buy another $25 million in additional units at a price equal to the Issue Price, upon written notice to the Company at any time up to 45 days following the initial purchase. The units will be subject to limited lock-up requirements.

Columbia Care also entered into a non-binding agreement with the investors with respect to the repurchase by the company of up to $25 million of the principal amount of their holdings in the 6.0% senior secured convertible notes due June 2025, the purchase price of which would be payable in common shares.

In addition, Columbia Care said it is in continued discussions with certain holders of its 13% senior secured notes due May 2024 to exchange their 2024 Notes for the 9.5% senior secured notes due February 2026 on a one-for-one basis.

StaffSeptember 14, 2023


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

On the Site

Canopy Growth Bows out of BioSteel

Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) will cease funding for its BioSteel Sports Nutrition unit. Following this, BioSteel has initiated proceedings under Canada’s Companies’ Creditors Arrangement Act. Read more here.

Oklahoma Supreme Court Declines to Rule on MMJ License Fee Hike

The Oklahoma state Supreme Court passed on a chance to rule on the legality of a 2022 bill approved by the state legislature that dramatically raises many medical marijuana business permit fees. The high court instead sent the case back down to a lower district court. Read more here.

High Tide Revenue Increases Again, But Still Losing Money

Canada-based High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) pulled in record revenue of C$124.4 million and free cash flow of C$4.1 million, but still posted a C$3.5 million loss in its third quarter, which ended July 31. Read more here.

MAPS Inches Closer to Federal New Drug Application for MDMA

The Multidisciplinary Association for Psychedelic Studies announced the successful completion of Phase 3 clinical trials for an MDMA treatment to help patients suffering from post-traumatic stress disorder, and said it brings the group a major step closer to filing a federal request to bring the treatment to market. Read more here.

Green Market Report Names New York Cannabis Award Winners

Navigating the New York cannabis market these days requires resilience and creativity – just a few of the characteristics shared by the winners of the first ever Green Market Report New York Cannabis Awards. The awards were announced at the GMR New York Cannabis Summit in New York City on Sept. 13. Read more here.

In Other News

Eastern Band of Cherokee Indians

Over the next few weeks, hundreds of medical cannabis patient cards will be headed to North Carolinians who’ve applied to the Eastern Band of Cherokee Indians medical cannabis program. The EBCI’s Cannabis Control Board’s application form requires documentation of one of 18 conditions and a health professional’s signature. More than 750 people have applied. Read more here.

New York Cannabis Growers Showcase

Saratoga Springs’s first Cannabis Growers Showcase, which took place Sunday, Sept. 3 and Tuesday, Sept. 5 returned over $70,000 in gross sales, city Accounts Commissioner Dillon Moran said. Nine farms presented their products in addition to a processor – who essentially makes edible goods and drinks – during the Saratoga Springs showcase, which returned more than 300 transactions on each of its first two days. Read more here.

Oaksterdam University and REEFORM

Oaksterdam University has forged a partnership with the socially conscious cannabis brand REEFORM to offer scholarships aimed at rehabilitating the lives of those beleaguered by the shadows of Cannabis Prohibition and the overarching War on Drugs. Read more here.

StaffAugust 17, 2023


The Daily Hit is a recap of the top financial news stories for Aug. 17, 2023.

On the Site

Shinnecock Tribe Dispensary Still on Track Despite Tilt Comments

This week, Tilt Holdings (OTC: TLLTF) stunned many in the cannabis community when it decided to cut several social equity brands. During the conference call to discuss the latest earnings, interim CEO Tim Conder said Tilt’s partnership with the Shinnecock tribe was also “undergoing a deep analysis,” with construction of the retail store paused. The tribe says: Not so fast. Read more here.

Canopy Growth Sells Hershey Facility for C$53 Million

Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) is selling its Hershey Drive facility in Smiths Falls, Ontario, as part of its move to become a simplified, asset-light operating model. Canopy Growth said it will retain its Smiths Falls-based post-harvest manufacturing facility. The facility will be sold to Hershey Canada Inc. for cash consideration of approximately C$53 million. Read more here.

AYR Wellness Revenue Increases, Expands in Florida and Ohio

Multistate cannabis operator AYR Wellness Inc. (OTCQX: AYRWF) reported a revenue increase of 18% year over year, reaching $116.7 million for the second quarter ending June 30. Read more here.

Adastra Sees Three-fold Rise in Q2 Revenue

Canadian extracts processor Adastra Holdings Ltd. (CSE:XTRX)(FRA:D2EP) reported its second-quarter financial results ending June 30, marking a three-fold rise in revenue from the previous year. During the period, Adastra recorded revenue of C$10.9 million, a 205% hike from the second quarter of 2022. Read more here.

Decibel Maintains Canadian Market Share, Cash Flow Tightens

Decibel Cannabis Company Inc. (TSX: DB) (OTCQB: DBCCF) reported notable gains for its second quarter sending June 30, with net revenue of C$30.9 million, a sequential rise of 14% from the previous period and an impressive year-over-year surge of 66%. Read more here.

In Other News

MTL Cannabis Corp.

MTL Cannabis Corp. (CSE: MTLC) received final approval to list its common shares on the Canadian Securities Exchange under the trading symbol MTLC. It will commence trading on the exchange at the opening of Monday, August 21.

Evogene Ltd.

Evogene Ltd. (Nasdaq: EVGN) (TASE: EVGN) reported revenues for the second quarter of 2023 of approximately $654,000, more than double the $312,000 for the same period the previous year. The revenue increase was primarily due to the collaboration agreement of Evogene’s subsidiary AgPlenus with Corteva and from sales of Lavie Bio’s ThrivusTM product. Read more here.

Vertical Peak Holdings

Vertical Peak Holdings Inc. (CSE: MJMJ) (OTC PINK: SPLIF) entered into binding letter of intent dated August 9 to sell all its California operations to Downwind Holdings Inc. Total aggregate net purchase price, including the deposit and assumed obligation, is estimated at CAD $12.3 million. Read more here.

Debra BorchardtAugust 17, 2023


Canopy Growth Corporation (TSX: WEED) (Nasdaq: CGC) is selling its Hershey Drive facility in Smiths Falls, Ontario, as part of its move to become a simplified, asset-light operating model. Canopy Growth said it will retain its Smiths Falls-based post-harvest manufacturing facility. The facility will be sold to Hershey Canada, Inc. for cash consideration of approximately C$53 million.

Canopy Growth’s massive Hershey Drive facility.

So far, Canopy Growth has sold a total of seven properties for an aggregate gross amount of approximately C$155 million since April 1, 2023. The company said that net proceeds from the sale of the facility will be used primarily to pay down its senior secured credit facility.

“We are pleased to have reached an agreement with Hershey on this important sale. This is the latest milestone in our focused effort to reduce costs and further enhance our balance sheet,” said David Klein, Chief Executive Officer of Canopy Growth. “Each of the steps we have taken as part of our transformation to a simplified, asset-light operating model supports our ability to deliver in-demand products from brands our customers love, with greater agility and less execution risk. ”

Outsourcing Cultivation

Canopy Growth announced in February that it was closing the facility. The company swelled as it built massive cultivation operations and loaded up on debt, only to decide to dump all the growing facilities it spent millions creating. Canopy decided to exit cannabis flower cultivation in its Smiths Falls, Ontario, facility, ceasing the sourcing of cannabis flower from the Mirabel, Quebec, facility, and moving to a third-party sourcing model for cannabis beverages, edibles, vapes, and extracts.

The changes were in addition to multiple cost reduction activities planned for the year, including the divestiture of Canopy Growth’s Canadian retail operations, the organizational restructuring of certain corporate functions, and the closure of the Scarborough, Ontario, research facility.

The sale of the facility follows the centralization of post-harvest manufacturing at the company’s former beverage facility in Smiths Falls and the consolidation of all flower cultivation in the company’s purpose-built sites in Kincardine, Ontario, and Kelowna, British Columbia.

“Our intent to purchase the Hershey Drive property in Smiths Falls is another example of the strategic investments we’re making in our supply chain network and our Canadian operations to support growth,” said Jason Reiman, Chief Supply Chain Officer, The Hershey Company.

In 2017, Canopy Growth closed on the acquisition of the property at 1 Hershey Drive that housed Canopy Growth’s headquarters and the Tweed Inc. (Tweed) production facilities. The building, property, and chattels were acquired for C$6.6 million. 

At the time, CEO Bruce Linton said, “The future looks bright for Tweed and Canopy Growth’s operations in this facility. It might even be time to reopen the famous Visitor Centre and start training tour guides.”

StaffJuly 19, 2023


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

On the Site

Tobacco Giant Philip Morris to Buy Israeli Cannabis Company

Tobacco titan Philip Morris International Inc. (NYSE: PM), the maker of Marlboro cigarettes, is poised to spend up to $650 million on an Israeli cannabis company that specializes in metered-dose inhalers for pain management. The deal will proceed in stages, with the first being a $120 million investment by Philip Morris in Syqe Medical. Read more here.

New York Nearly Doubles Legal Cannabis Retailers, Approves Farmers Market Rules

The New York Cannabis Control Board meeting Wednesday morning was full of laughter and celebratory tears as over 200 more marijuana entrepreneurs received conditional permits for dispensaries and the state’s legal cannabis growers got the first regulatory layout of how proposed farmers markets will work. Read more here.

10 Predictions for Cannabis for 2024

A new report from cannabis analyst Pablo Zuanic, founder of Zuanic & Associates, outlined 10 predictions for the industry over the next 18 months. Ultimately, Zuanic said he is playing the long game and not being swayed by the noise of the short-term players. Read more here.

Catch Pablo Zuanic at the Green Market Report Finance Summit in New York City on August 3. Learn more here.

Fitch Upgrades Then Withdraws Ratings for Canopy

Fitch Ratings has taken the Canopy Growth Corp. (Nasdaq: CGC) and subsidiary 11065220 Canada’s long-term issuer default ratings on a roller coaster ride of downgrades and upgrades, finally ending the saga in a complete withdrawal of all ratings. Read more here.

Avant Brands Scores Record Profits, Faces $1M Lawsuit over Acquisition Spat

Avant Brands Inc. (TSX: AVNT) (OTCQX: AVTBF) delivered another quarter of record revenues and positive cash flow for the period ending May 31, marking the fourth consecutive quarter of momentum. Read more here.

In Other News

San Francisco

An oversaturated market has pushed the cannabis industry and city leaders in San Francisco to try to slow down the number of businesses opening up over the next four years. An ordinance approved by the board of supervisors and signed by the mayor will create a moratorium on new businesses beginning July 23. Read more here.

BYND Cannasoft

BYND Cannasoft Enterprises Inc. (Nasdaq: BCAN) (CSE: BYND) closed a firm commitment underwritten public offering with gross proceeds to the company of approximately $2.6 million, before deducting underwriting discounts and other estimated expenses payable by the Company. The company intends to use the net proceeds for product design and manufacturing, sales and marketing campaigns, patent prosecution, and working capital. Read more here.

StaffJune 29, 2023


The Daily Hit is a recap of the top financial news stories for June 29, 2023.

On the Site

Canopy Growth Sells Property, Assets in Bid to Raise Cash

Beleaguered Canada-based Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) announced Thursday that it sold one of its California facilities in the town of Modesto. The sale brings Canopy to C$81 million in income from unloading five total properties since April 1, as the company scrambles to deal with a massive debt load and billions in losses. Read more here.

Tantalus Labs Lays Off ‘Majority’ of Staff, Files for Restructuring

Company founder Dan Sutton announced Wednesday that he had had to lay off a “substantial majority” of staffers from the British Columbia-based greenhouse cultivation business, which was founded in 2018. He said the regulatory and tax system in the nation was to blame for Tantalus’ and many other companies problems. Read more here.

Canadian Cannabis Sales Growth Sputters

Canada’s still-nascent cannabis industry is facing an existential dilemma. On one hand, the market has seen impressive sales growth and an expanding ecosystem of brands since the nation legalized recreational cannabis in October 2018. On the other, the industry is far from immune to macroeconomic woes as it grapples with slowing demand, tightening competition, and pricing pressures. Read more here.

Wisconsin Lawmakers Nix Marijuana Legalization Proposal – Again

Eisconsin GOP lawmakers in control of the state Senate have for the second time in two months voted down a proposal to legalize marijuana in their state. The state Senate on Wednesday killed a last-minute bill from Minority Leader Melissa Agard that would have legalized cannabis on a party-line 22-11 vote. Read more here.

Reunion Neuroscience Posts $48 Million Loss Ahead of Acquisition

Toronto-based Reunion Neuroscience (Nasdaq: REUN) (TSX: REUN) reported a $48 million net loss for its 2023 fiscal year, which ended March 31, but the company expressed optimism on its development of a psychedelic treatment for postpartum depression. Read more here.

In Other News


All of Curaleaf’s New Jersey retail locations have elected to unionize as members of United Food and Commercial Workers (UFCW) Local 360. The company’s retail locations in Edgewater, Bellmawr, and Bordentown serve both medical and adult-use clients. Read more here.

CanadaBis Capital Inc.

Vertically integrated Canadian cannabis company CanadaBis Capital Inc. reported net revenue of C$6.1 million for the fiscal third quarter ended April 30. Net income totaled C$1.2 million for the period, an increase of 874% over Q3 2022. Read more here.

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