Cansortium Archives - Green Market Report

StaffStaffJuly 7, 2020
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6min2350

It’s time for your Daily Hit of cannabis financial news for July 7, 2020. 

On the Site 

Jushi Holdings 

Jushi Holdings Inc. (JUSHF) announced its financial results for the first quarter ending March 31, 2020, and pre-announced its second-quarter 2020 revenues. Total revenue for Jushi increased 43% sequentially to $8.6 million, while the company delivered a net loss for the quarter of $15.8 million. The net losses were down slightly from the fourth quarter’s net losses of $17 million. 

The company attributed the increase in revenue to the acquisition of two medical marijuana dispensaries in Illinois, one of which began serving adult-use customers in March, and strong revenue growth at the Company’s BEYOND/HELLO stores in Pennsylvania. 

CannaGlobal 

Despite the continuing opportunities for the cannabis industry, many companies have decided that they don’t want to miss out on the emergence of the mushroom industry. The latest entry to the psilocybin race is CannaGlobal Wellness. 

This company is a combination of CannaGlobal, Sansero Life Sciences, and Rise Wellness. The new company said it will focus on psilocybin and other natural compounds to promote emotional, mental, and physical wellness. The company believes that its assembled team of cannabis executives will prove to be a winner in the increasingly crowded space for psilocybin, which is still an illegal substance. 

California 

The Santa Barbara County Grand Jury issued its 2019-2020 Final Report on June 30, 2020. The last section of this report is devoted to the County’s actions relating to the cannabis industry. This last section of the Report is a scathing indictment of the manner in which greed for money and power influenced the governance of Santa Barbara County in its adoption of ordinances relating to cannabis. 

The following is an introductory summary of the Report. 

“The action taken by the Santa Barbara County Board of Supervisors to certify the development of a robust cannabis industry as the primary objective of the cannabis ordinances has altered the quality of life in Santa Barbara County, perhaps forever.”

In Other News 

Cansortium Inc. (OTCQB: CNTMF) announced financial results for its first quarter ended March 31, 2020, and reiterated its full-year 2020 outlook. Consolidated revenue increased 84 percent to $10.2 million, compared with revenue of $5.5 million. Consolidated net loss totaled $(13.9) million, or $(0.07) per diluted share, compared to consolidated net loss of $(16.3) million, or $(0.10) per diluted share. 

The Company reiterated its full-year 2020 outlook for consolidated revenues in the range of $55 million to $60 million and Adjusted EBITDA of more than $15 million. The forecast is based on projected revenues of at least $45 million for Cansortium’s Florida operations with additional revenue from the Michigan, Pennsylvania and Texas markets.  

The Company expects to open up to six additional Florida dispensaries during the remainder of 2020, contingent upon timing of construction and final permitting. These locations include Coral Gables, Kendall, and Coral Springs. In addition, the Company expects to develop two new dispensaries in the south-central region of Pennsylvania during 2020 that will begin operating by early 2021. 


William SumnerWilliam SumnerAugust 29, 2019
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5min6700

It’s time for your Daily Hit of cannabis financial news for August 29, 2019.

On the Site

Tilray

Tilray, Inc.  (NASDAQ: TLRY) will be buying Alberta-based dispensary chain FOUR20 through its wholly-owned subsidiary of High Park Holdings Ltd. The recreational retail brand provides adult-use cannabis consumers with a premium retail experience focused on high-quality product selection, education, and community. FOUR20 currently operates six licensed retail locations and has 16 additional high-traffic locations secured in desirable locations in Alberta, including Canmore, Calgary, and Edmonton.

Food, Drug or Something Else: What is Hemp-Derived CBD?

It has been just over a month since the public comment period closed in the wake of the public hearing held by the FDA, “Scientific Data and Information about Products Containing Cannabis or Cannabis-Derived Compounds”. Over 4,000 comments were docketed, ranging from controlled scientific data submissions to tales of miracle cures to horror stories. It will be interesting to see what the agency gleans from the docket.

Los Angeles Bringing Back The “War on Drugs” for Illegal Commercial Cannabis Activity

Bringing Back The War – A bit of background on illegal storefront dispensaries tells us And the enforcement in California will come from both state and local authorities. The City of Los Angeles recently launched a massive crackdown on unlicensed, illegal cannabis businesses, filing misdemeanor charges against more than 500 people and shutting down 105 illegal cannabis businesses, including cultivation operations, extraction labs, and delivery companies across the city

In Other News

Cansortium

Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) reported its second quarter revenue today. Consolidated revenue increased to $6.1 million. The consolidated net loss was $5.3 million. Consolidated EBITDA was $1.8 million. “While we continued to execute our strategy to expand cultivation, processing, and dispensaries during the second quarter, a combination of unexpected delays in construction needed in order to secure final regulatory approvals at our Tampa cultivation Phase 2 expansion, as well as delays in opening certain previously planned Florida dispensaries, led to second quarter revenues that were lower than originally anticipated. As a result, we are experiencing an approximate six-month delay on our plans presented earlier in the year,” said Cansortium CEO Jose Hidalgo.

Vireo Health

Today, Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) reported its financial results for the second quarter. Operating revenue totaled $7.2 million, and the net loss was approximately $1.9 million.  EBITDA and adjusted EBITDA were $0.8 million and $2.3 million, respectively. “Increasing patient enrollment in Minnesota and New York continued contributing to organic revenue growth during the second quarter, and wholesale demand trends in Maryland and Pennsylvania have also been encouraging signs that our products can compete effectively within a broader marketplace,” said Vireo Founder and CEO, Kyle Kingsley.

Gabriella’s Kitchen

Gabriella’s Kitchen Inc. (CSE: GABY) also released their financial results for the quarter. Revenue was $2.5 million, up from $319,737 in the same period in the previous year. The gross loss declined from $264,607 to $49,712. As of June 30, 2019, the company has $11.5 million in cash and $37.3 million in assets. “When we announced our target on May 7, 2019 of $35 million in pro-forma revenue for the fiscal year, we took into account that Q2 would be a slower quarter due to the delayed closing of our $20 million raise, the company’s short-term decision to allocate available capital to maintain relationships and shelf space with dispensaries, and the transitioning from a shared distribution model in Southern California to a sole distribution model, staffed with our internal salespeople,” said Margot Micallef, Founder and CEO of GABY.


StaffStaffAugust 21, 2019
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4min7070

It’s time for your Daily Hit of cannabis financial news for August 21, 2019.

On The Site

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) reported that its second-quarter revenue rose 253% to $29.9 million over last year in its unaudited financial results for the second quarter ending June 30, 2019. The revenue rose 42% sequentially. The company attributed the increase in revenue to new market expansion and continued growth in existing markets with a higher revenue generated in Pennsylvania, Illinois, and California.

Cresco Labs also delivered a net loss of $3.9 million versus last year’s net income of $1.6 million for the same period. The net loss was blamed on an income tax expense of $5.6 million, primarily driven by discrete tax items related to the legal close of the acquisitions of MedMar Inc. and PDI Medical.

IRS

IRS Updates CTR Exams – The IRS has recently provided interim guidance to clarify actions IRS Examiners must take to analyze and document Currency Transaction Report (CTR) data during an audit.  The Guidance, which is effective immediately, will be incorporated into IRM 4.10.4, Examination of Returns, Examinations of Income.

Prior to incorporation, IRM 4.10.4 provided very little guidance on when and how to use the Financial Crimes Enforcement Network’s (FinCEN) Currency Transaction Reports [See Structuring Rules ]. However, this new guidance assists examiners during an audit of a taxpayer’s returns and income.

In Other News

Indus Holdings

Indus Holdings, Inc. (CSE:INDS) announced its financial results for the fiscal second quarter ending June 30, 2019.  The company generated second quarter record revenue of $9.7 million, 183% year-over-year and 51% sequential growth. It added 87 new dispensaries during the quarter. Announced acquisitions of CBD brands Shredibles and Humble Flower Co. Entered Nevada and Oregon markets through its pending acquisition of W Vapes, a licensed multi-state manufacturer and distributor of cannabis products

Cansortium

Cansortium Inc. (CSE: TIUM) (OTCQB: CNTMF), a vertically-integrated, global provider of premium-quality medical cannabis operating under the Fluent brand, announced today that it will begin trading today on the OTCQB Venture Market under the ticker “CNTMF”.  This is an upgrade from the Company’s previous classification on the Pink Open Market.

Cansortium Chief Executive Officer Jose Hidalgo emphasized, “We are very pleased to begin trading on the OTCQB Venture Market less than five months after our initial public offering on the Canadian Securities Exchange, adding valuable visibility and additional liquidity for the benefit of our shareholders. We are intently focused on executing our growth strategy by expanding our cultivation capacity and dispensary platform in our home state of Florida and establishing our Fluent™ brand of cannabis products as a leader in each market where we choose to compete.”

ManifestSeven

ManifestSeven California’s first integrated omnichannel platform for legal cannabis, today announced it has acquired the Haven (formerly operating as ShowGrow) dispensary in Santa Ana, California.

“This acquisition represents the first dispensary in our B2C strategy, as unveiled last week under the Weden retail dispensary and delivery brand” The dispensary will be rebranded Weden Santa Ana to serve as the flagship location for Weden, M7’s new business-to-consumer brand that encompasses brick-and-mortar retail and delivery operations throughout the state, as supported by the 1-800-CANNABIS customer service center.



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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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