Chalice Farms Archives - Green Market Report

Jack SmithMay 31, 2018

Golden Leaf Holdings said first-quarter revenue soared, thanks to its 2017 acquisition of Chalice Farms and highlighted the progress it’s making in expanding its cannabis operations in California.

Golden Leaf, which trades on the Canadian Stock Exchange under the “GLH” ticker and is traded over-the-counter in the U.S., said revenue jumped 42 percent year-over-year to $3.2 million for the period ending March 31, 2018. It also generated $353,000 in gross profit, up from $238,000 in the year-ago quarter. The company said gross margins included a one-time charge of $377,000 for a write-off of obsolete packaging inventory.

Net income was a gain of 2 cents per share, compared to a loss of 2 cents per share in the first-quarter of 2017. However, the company said that it benefited from a $12.4 million benefit due to favorable changes in the fair value of its warrant and debt liabilities.

Golden Leaf’s CEO William Simpson called out the Chalice Farms acquisition, which took place in July 2017 in prepared marks, noting it’s opened more locations since the deal closed.

“Subsequent to quarter-end, we opened our seventh overall retail dispensary, and sixth Chalice Farms location, located in Happy Valley, Oregon, which has exceeded our expectations and is already our second highest selling Chalice location after just a few weeks since opening,” Simpson said.

He continued: “Our retail operations are a key component of our growth strategy and we are pleased to see our increased brand recognition among customers further entrench our position as a leading retailer in Oregon. We will continue to strategically invest in our retail strategy, adding stores in optimal locations.”

Golden Leaf also called out its new Fruit Chews edible line, which was launched in March in Oregon. The chews come in four flavors (Tangerine, Tropical Fruit, Kiwi Strawberry and Acai Berry) and are designed to “bring more variety to the Golden brand of products and aim to deliver delicious tasting edibles that are vegan-friendly, gluten-free and soy-free for the health-conscious, non-smoking cannabis consumer.”

At the end of the quarter, Golden Leaf had $22.1 million in cash, aided by a CAD $17.5 million private placement in January.

During the quarter, Golden Leaf also added Craig Eastwood as its CFO. Eastwood’s hire, along with raising the $17.5 million CAD, were “instrumental in fortifying the financial management side of the business, which underpins our growth initiatives,” Simpson added.

For the rest of 2018, Simpson said that Golden Leaf’s growth initiatives include building out its retail presence in Nevada and California, both of which have legalized cannabis for recreational use. Golden Leaf also wants to establish a franchise model for its Chalice Farms acquisition in the western part of the U.S. and Canada.

Simpson concluded by saying that the company is “making great strides” building the company that will allow it to take advantage of opportunities that presented to it in the future.

“We are pleased with the progress we have made laying the foundation for our entry into new geographies, across both our retail and cultivation operations,and look forward to continuing to drive revenue growth throughout 2018,” Simpson said.

Debra BorchardtApril 3, 2018

Here are today’s cannabis news briefs for April 3, 2018:

MariMed Inc.

MariMed (MRMD) reported revenue of $6.1 million in 2017, compared to $3.6 million in 2016, a year-over-year increase of 70.2%, primarily a result of higher sales at MariMed managed licensed cannabis businesses which in turn produce higher income for Company from fees, rents, and consulting. Gross profits were $ 3.5 million in 2017. Gross profits rose to 58% compared to 55% in 2016. Operating Income was $1.2 million in 2017, compared to $775,000 in 2016, a year-over-year increase of 55.5%.

MPX Bioceutical Corporation

MPX Bioceutical (MPXEF) has reported that its managed Arizona assets have recorded their best revenue month in March with sales of cannabis and cannabis concentrates hitting the US$4.0 (CDN$5.2) million mark for the first time. The revenue numbers are from assets under management in Arizona only and do not include operations in Nevada or those assets currently being developed in the States of Maryland and Massachusetts.

SinglePoint Inc.

SinglePoint (SING) announced the official launch of the freshly revamped SingleSeed.com website, focused on selling cannabidiol (CBD) based products direct to consumer. SingleSeed.com is now live and taking orders. Consumers can visit SingleSeed.com and use promo code SING on orders of $50 or more to receive a complimentary two-pack of the company’s hemp-based CBD capsules. The company is sourcing all of its CBD from U.S.-based hemp farms, all of which provide analysis of the product to ensure purity. SingleSeed is looking to position itself as the trusted, quality leader in the CBD market.

North American Cannabis Holdings

North American Cannabis Holdings (USMJ) and Puration have been working together on a strategic acquisition in Canada and a second strategic acquisition in California. The two acquisitions are intended to enter USMJ and PURA into the legal recreational marijuana markets of Canada and California. Specifically, through the acquisitions, USMJ plans to establish a branded marijuana grow operation and PURA plans to establish local extraction operations and introduce new cannabis-infused beverages. At the same time, the two companies are finalizing details on the two acquisitions, their respective current operations are realizing major milestones. USMJ’s concept cannabis restaurant operations continue to grow, fast approaching a million-dollar annual revenue benchmark, and with a new flagship location opening on the horizon.

One Step Vending Corp.

One Step Vending Corp. (KOSK), a holdings company operating in the convenience, vending, and micro markets space, has been working actively on releasing a new web platform for the sale of innovative brands CBD products online. Within the next 30 days, the Company will start a pilot program into the emerging multibillion-dollar industry of CBD and hemp related products. The e-shop will showcase some of the brands CBD and Hemp infused collaborations, including hemp and avocado body moisturizer, hemp infused bar soap and exfoliates, CBD gummies as well as the exclusive “VassoVape”. One Step Vending, Corp., will release the brand identity and e-shop design under the domain www.cbdkiosks.com, which is currently under construction. The company seeks to combine the e-shop business with the actual kiosks in its current locations to provide consumers with the CBD and hemp related products.

Chalice Festival

Southern California’s massive cannabis-infused music and art festival Chalice will return for its fifth year on July 13-15, 2018 with A-list music acts, world-renowned street artists and the world’s most celebrated hash makers and glass blowers. The festival’s music lineup this summer drives that point home, featuring headliners Bassnectar, Ludacris, Sizzla, Bone Thugs-N-Harmony, and Curren$y—alongside Pharcyde, Cut Chemist and Thriftworks, with Chalice’s full musician and artist lineup to be announced soon.

New to Chalice this year: With the recent arrival of legal adult-use cannabis in California, and with recreational marijuana sales now allowed inside some state fairgrounds, attendees at Chalice 2018 will be able to purchase and consume cannabis onsite. (Entrance will be restricted to those ages 21 or over.)

William SumnerMarch 27, 2018

Cannabis oil solutions company Golden Leaf Holdings (GLH) announced today that it has signed a letter of intent (LOI) with BlackShire Capital Corp., a cannabis-based private equity firm, to start a franchise model in the cannabis industry.

“BlackShire Capital has been invested in the legal cannabis space for several years. In Golden Leaf and Chalice Farms we have found a proven and progressive partner that believes in a premium customer experience,” said BlackShire Chairman and CEO, Kevin Reed, in a statement. “We look forward to working with our partner on a definitive agreement that takes this exceptional brand to markets in Canada, the U.S. and the world.”

Dubbed Chalice Farms, the franchise would operate in U.S., Canadian, and international markets. Gold Leaf and BlackShire are currently negotiating the final terms to form a management company. Jointly owned, the company would own the franchise and be responsible for running its day to day operations. Terms currently being considered include BlackShire providing $10 million CAD in initial funding for operations in the Canadian market and an additional $15 million CAD for U.S. Operations. Future funding would be borne by both Golden Leaf and BlackShire, in proportion to their equity stake in the management company.

“Signing the LOI validates our strategic franchising initiative and allows us to advance this potential franchising and management partnership with BlackShire Capital towards definitive agreements,” commented Golden Leaf CEO, William Simpson. “Franchising Chalice Farms represents an attractive vehicle to execute on our growth strategy of replicating the Chalice Farms operating model in new territories, which we plan to begin in Canada where and when permitted, and which we envision extending to additional permitted U.S. markets, beyond our current Portland, Oregon footprint. In our view, Golden Leaf remains uniquely positioned to expand its retail brand-focused model and to build sustainable, long-term shareholder value.”

Golden Leaf has operations in multiple jurisdictions including Oregon, Nevada, and Canada is one of the largest cannabis oil and solution providers in North America. The company cultivates, extracts and manufactures and distributes its products through its branded Chalice Farm retail dispensaries, as well as through third-party dispensaries.