Charlotte's Web Holdings Archives - Green Market Report

StaffSeptember 27, 2022
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5min7940

The Daily Hit is a recap of cannabis business news for Sept. 27, 2022.

ON THE SITE

10 Multistate Cannabis Companies Owe Half a Billion in Federal Taxes

All told, the 10 multistate operators owe the Internal Revenue Service an eye-popping $507,193,000, according to their second quarter financial reports. Much, or perhaps all, of the tax debts have been deliberately not paid by companies so that the businesses can use the cash to fund operations or other plans, multiple sources said. Read our analysis here.

Canadian Cannabis Giant Canopy Growth Quits Retail Game

The once-high-flying Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) announced Tuesday that it’s selling off all of its retail cannabis stores across Canada in order to focus on “its path to profitability.” That path means being more of a core consumer packaged goods business instead of a vertically integrated cannabis company, according to a news release from the company. Read more here.

Real Brands to Buy Boulder Botanical for $12 Million

Real Brands (OTCQB: RLBD) agreed to acquire Boulder Botanical & Biosciences Laboratories, a manufacturer of white-label and private-label wellness and sports medicine herbal supplements and CBD products, from Frankens Investment Fund LLC, which acquired Boulder Botanical in April 2022. Read more here.

IN OTHER NEWS

Charlotte’s Web Signs Distribution Agreement with Southern Glazer’s Wine & Spirits

Charlotte’s Web Holdings, a manufacturer of hemp-derived cannabidiol extract wellness products, has signed a multiyear distribution agreement with Southern Glazer’s Wine & Spirits, a distributor of wine and spirits. Charlotte’s Web CBD gummies, capsules and oil tinctures will be available through Southern Glazer’s retail customer network. Read more here.

The Parent Co. Completes Acquisition of Calma

TPCO Holding Corp. (The Parent Co.) (NEO: GRAM.U) (OTCQX: GRAMF) completed its acquisition of the remaining 15% equity of its Calma Weho LLC dispensary following receipt of all necessary regulatory approvals. Located in the Los Angeles metropolitan region, the 3,250 square foot dispensary is one of only 11 stores in the West Hollywood area licensed for storefront retail. Read more here.

Entourage Launches Medical Cannabis Marketplace

Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE), a Canadian producer and distributor of cannabis products, has launched Syndicate, a direct-to-patient medical cannabis marketplace. The Syndicate marketplace showcases a variety of specially curated products and formats made in-house and/or sourced from microcultivators looking for a medical distribution outlet. Read more here.


Adam JacksonAugust 9, 2022
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8min4520

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) missed expectations as the CBD company continues to struggle amid a patchwork regulatory landscape. The company reported its financial results for the second quarter ending June 30, 2022.

For the key metric of total revenue, Charlotte’s Web missed expectations as it delivered approximately $18.9 million during the period — missing the Yahoo Finance Average analyst estimate for revenues of $27.13 million. The revenue decreased 21.8% versus $24.2 million in the same period last year. The company said that the decrease was primarily due to lower comparable customer shipments, consumer shift to lower priced formats, a return reserve as well as lower comparable online traffic.

Charlotte’s Web also reported a second-quarter net loss of $7.9 million compared to a net loss of $5.9 million in the same period last year. The company said that the net result was primarily impacted by “lower net revenues, higher return reserves and increased inventory provisions, which were offset by significantly reduced operating expenses.” The earnings were for a loss of five cents per share, a cent below analysts’ loss estimates of four cents a share.

“While we are disappointed with the second quarter revenue, we achieved significant distribution and customer wins consistent with our growth priorities to expand our coverage in existing channels and enter new vertical,” CEO Jacques Tortoroli said. “We’re also focused on improving operating cash flow as we progress through the second half of the year. Operating expenses were down over 31.5% year-over-year in the second quarter. In July, we further lowered our staffing levels and administration expenses. In aggregate, our focus on right-sizing our business is bringing operating expenses below $70M on an annualized run rate.”

The company also saw a $2.4 million decline in the e-commerce platform versus $15.7 million at the same time last year. Charlotte’s Web maintains the largest e-commerce business in the CBD industry; and e-commerce represents the largest channel in the industry with an approximate 40% market share, according to the Brightfield Group.

Business-to-business net revenue was $5.6 million after a $0.9 million returns reserves — representing $2.9 million, or 33.9%, lower year-over-year “primarily due to lower comparable shipments to some of the company’s largest retail customers.”

“Charlotte’s Web holds the number one share position across major retail channels including food/drug/mass retail, natural grocery & vitamin retailers, and e-commerce, based on market share data from leading third-party analysts such as The Nielsen Company and Brightfield Group,” the release said.

Gross profit was $9.3M, or 49.4% of revenue versus $15.8 million and 65.5% of revenue respectively in same period last year. The company said the decrease was primarily related to lower net revenue “including a $0.9 million customer return reserve, and $1.9 million of inventory provisions.” Excluding the return reserve and inventory provisions, gross profit was 61.0% of revenue, it said.

Adjusted EBITDA fell to $5.4 million in the second quarter, versus a loss of $5.1 million in the same period last year.

Net cash used from operations during the first half of the current fiscal year was $4.3 million versus $16.2 million for the same period last year.  The company’s cash and working capital as of the second quarter were $14.8 million and $64.6 million, respectively, versus $19.5 million and $75.6 million in the latter half of the previous fiscal year.

Total selling, general and administrative expenses of $17.3 million improved 31.5% year-over-year due to a $7.9 million reduction versus the second quarter last year. The company said the improvement reflects lower staff levels and compensation as well as increased operating efficiencies “resulting from actions implemented year-to-date.”

New Pathways For CBD

As companies in the cannabis sector suffer from a lack of regulatory guidance from the federal government, new opportunities are opening up for CBD companies.

Overseas, the company’s original CBD oil formula has been placed on the Foods Standards Agency list of products allowed to be sold in the U.K — making Charlotte’s Web the only substantially vertically-integrated U.S. company with a full-spectrum hemp extract to have passed the validation phase and advance to the safety assessment phase in the United Kingdom, it said.

Also, the Scientific Advisory Committee for Health Canada unanimously agreed CBD is “safe and tolerable for short-term use” — recommended hemp CBD products should be considered for mainstream retail availability.

Cory Pala, Director of Investment Relations, told The Green Market Report at the time that the company is “particularly excited” about the recommendation.

The company cannot legally export its products to Canada under current law “which is sort of ironic” considering it is federally legal in both countries, he said, so it has partnered with cultivators in the country instead. The new recommendation presents a juncture for the company.

“In the US, we have 2,500 different competitors that have similar products,” Pala said. “But in Canada, we have maybe half a dozen, if that. And so it’s really, really compelling to us as a market opportunity. This is big for multiple reasons.”

The health board will take consultation with stakeholders and advocates to hash out regulation guidelines and figure out whether it actually wants to move in that direction before seeking approval from the Canadian government.


Debra BorchardtDecember 17, 2021
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3min2630

Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) made major leadership changes in the company’s c-suite. Jacques Tortoroli, the former Chief Administrative Officer of Bacardi Ltd., the world’s largest privately-held spirits company, has been appointed Chief Executive Officer of Charlotte’s Web, replacing outgoing CEO, Deanie Elsner.

Elsner joined the company in May 2019, but in the last few quarters the company has suffered from falling revenue. A combination of FDA delays on defining the usage of CBD products to massive competition in the CBD space has conspired to hurt one of the original medical marijuana companies.

In addition to the resignation of Elsner, Wes Booysen, Charlotte’s Web Chief Financial Officer, is assuming expanded responsibilities under the title of Chief Financial & Operating Officer. In last month’s earnings release Booysen said “Temporary supply chain disruptions affected some product availability, dampening revenue growth for the quarter. We substantially resolved these issues in October and are back on our growth trajectory with the holiday buying season in the fourth quarter. In parallel, we are streamlining operations and reducing expenses to position the business for positive Adjusted EBITDA in 2022.”

Jared Stanley, Charlotte’s Web Co-founder and Chief Cultivation Officer, will assume an expanded role as Chief Cultivation and Innovation Officer responsible for hemp cultivation, extraction, cannabinoid R&D and product development.

“I am delighted to be able to work closely with Wes, Jared and the broader team and excited about the opportunities we have in front of us,” said Tortoroli. “Domestically, Charlotte’s Web continues to innovate and grow market share, but internationally – where we are increasing our focus – markets present even more attractive opportunities for accelerated growth.”  Tortoroli has little experience in the cannabis industry but was also former President of Bacardi International Limited and brings significant global executive leadership experience. His 40-year career includes launching ecommerce platforms, global finance, mergers & acquisitions, and strategic partnerships through various senior executive roles at Bacardi, Viacom Inc., Young & Rubicam Inc., PepsiCo Inc., and KPMG.

“Jacques’s strong track record of driving international brand equity through product innovation and customer relationships will be invaluable to Charlotte’s Web,” said John Held, Chairman of the Board.

 


Kaitlin DomangueDecember 2, 2020

12min1980

To make at least one thing easy in 2020, we are kicking off the Green Market Report holiday gift guide series with the best gift sets to purchase for all of the cannabis enthusiasts in your life this year! Gift sets are the perfect choice for anyone trying to work smart, not hard this year and let’s face it, we all need to take it easy this holiday season! These gift sets are great, just order, wrap, and gift – you’re done and you don’t have to stress.

There is something on this list for everyone, so if you are buying a gift for a cannabis/CBD lover – read on! 

Nugg Club

First up on our list is Nugg Club. This is a very unique gift set, and the only one on our list that has marijuana, and not hemp-derived, products! Because of this, Nugg Club delivers only locally to Orange County and most of Los Angeles, California. The cool thing about Nugg Club is that it is a subscription service, you can get a box of awesome cannabis products delivered to your door each month – no dispensary line hassle! 

They’ve put together a holiday subscription service that makes gifting a box to your friends in California so much easier. Choose between a one, two, or three month membership – or you have the option to give them a $65 gift card! 

A sample box received by the Green Market Report came with some really cool products, like cannabis-infused pineapple syrup with 200 total milligrams of THC by Cannavis, a box of full-sized pre-rolls, a box of mini pre-rolls, a king sized pre-roll infused with oil and kief by Cali Green Gold, spicy passion fruit cannabis-infused gumdrops by Serra, cannabis-infused hard candies by Oasis, vegan gummies by Flav with 100 milligrams of THC, as well as a Coda chocolate bar and some watermelon gummies by Elefante. 

Nugg’s holiday box is a $225 value, but priced at $99 a box plus tax! Keep in mind, California has a cannabis sales tax, too, so it might come out to around $120 with tax depending on how much you purchase. 

NuggClub’s Holiday Box

Charlotte’s Web

The famous CBD brand really went above and beyond this year to provide a gift set for everyone. The company has released four gift sets for the 2020 holiday season. All gift sets can be purchased directly on Charlotte’s Web’s website. Right now, they are actually having a 30% off sale on their gift sets – so run, don’t walk, and grab your set! They are all customizable and allow you to choose products that best meet yours (or your recipient’s) needs! 

Charlotte’s Web Gift Sets

Calm Set

The Calm gift set is the set to choose for the one who has been working hard all year long. It features three CBD products: CBD gummies, an oil, and a CBD roll-on. The Calm gummies have delicious lemon balm extract infused with CBD, and the lemon balm addition is perfect for melting your stress away. 

Choose a 60 milligram bottle of CBD oil in your recipient’s desired flavor, plus a hemp-infused roll-on! The Calm gift set starts at $164.97 when there isn’t a sale happening. This is the perfect set for anyone dealing with extra stress, and you’d be hard-pressed to find someone who doesn’t need a little calm right now!

Sleep Set

The Sleep gift set is perfectly designed to help the ones in your life who need a good night’s rest – or a few good nights of rest! Give the gift of great sleep this year, who wouldn’t appreciate that? 

This contains delicious CBD gummies infused with melatonin and you can choose between a 30, 60, or 90 count! You can also choose 60 milligram CBD oil in orange blossom, lemon twist, or mint chocolate. Select a hemp-infused roll-on with the choice of two soothing scents: lavender or mint. The sleep set retails at $164.97 without the sale! 

Recovery Set

The Recovery set is the gift for anyone needing a little R&R! Choose between a CBD balm or a stick version of the balm for on-the-go recovery. The balms are thicker in consistency than the roll-ons in the other set, so it’s perfect for lathering on those sore muscles. Like the other sets, you can choose between a 30, 60, or 90-count jar of gummies and your choice between a lemon twist, orange blossom, or mint chocolate flavored CBD oil. 

Couples Set

This set retails for $139.97 when the gift sets aren’t on sale. You have your choice between a 60 or 90-count bottle of the Recovery or Sleep gummies, a few different sizes of CBD oils and flavors, as well as your choice of a cream or balm CBD topical. This is perfect for couples to enjoy the experience of using CBD – together. 

LEVEL SELECT

LEVEL SELECT is the gift set to choose for any athlete in your life! Seasoned athletes, beginner athletes, and weekend warriors alike will treasure this gift set like gold. All of the products are hemp-derived, so no worries about getting any sort of psychoactive effect like with marijuana. This set features Level 2 CBD oil drops and the brand’s Level 3 Sports Cream. 

This brand is a favorite of many athletes, including PGA golf pro Rickie Fowler, former NFL quarterback Carson Palmer, and WNBA legend Ann Myers Drysdale. The LEVEL SELECT gift set retails for just under $100 at $99.99, a fabulous deal for anyone!  

Be Merry and Well by Caliva

Caliva’s Be Merry and Well gift set is the perfect one for the amazing people in your life who need self-care. You know the ones. The hardworking, never stopping, hustling people in your life, they are the ones who need this set. 

This set is truly an unbeatable price, retailing for only $50 – making it the lowest price gift set on this list! 

For just $50 you’ll receive a CBD moisturizing serum to refresh and soften skin, a luxurious CBD bath bomb, and a fun tote and a cosmetics bag! This is also the perfect Secret Santa gift that requires you to stay under $50! Skip the traditional candles and holiday coffee mug this year and grab this gift set instead for your next holiday party. 

Caliva’s Be Merry and Well Gift Set

Martha Stewart’s CBD Sampler

Who doesn’t love Martha Stewart?! She has an incredible CBD gummy sampler pack featuring a whopping 15 different flavors. The set retails for $64.99 and the 60 gummies feature a CBD isolate extract, so no worries of THC! 

Each gummy is 10 milligrams and comes in a delicious, gourmet fruit flavor. There are some truly mouthwatering flavors like red raspberry, green apple, and strawberry, as well as some more unique flavors like rhubarb, persian lime, passionfruit, and grapefruit. 

This is the perfect set for any Martha Stewart fan in your life, or simply someone that loves a great, thoughtfully-crafted CBD gummy! The gourmet flavors are sure to be a hit for any palate, and the box is so beautifully designed that it would even look nice on your countertop. 


Debra BorchardtNovember 12, 2020
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4min1380

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) reported financial results for the third quarter ended September 30, 2020, with revenue rising to $25.2 million versus $25.1 million in 2019 and on target for the Yahoo Finance average estimate. The net loss was $6.6 million which was high than last year’s net loss of $1.3 million. The company also reported that the earnings per share were ($0.05) which was in line with the Yahoo Finance average analyst estimate.

The company blamed lower B2B sales which were 29.2% lower year-over-year, accounting for 33.7% of total revenue in the quarter. On a positive note, DTC (direct to consumer) net sales grew by 27.5% year-over-year as online traffic and high conversion rates increased through ongoing marketing and social media programs. Charlotte’s Web said year-over-year new consumer acquisitions increased 52% and conversion rates increased 98%. DTC net revenue accounted for 66.3% of total revenue in the third quarter compared to 52.2% for the same period in the prior year. Sequentially, though, the third quarter was an improvement over the second quarter as revenue increased for both DTC by 8% and B2B by 39%.

“The strength of our leading e-commerce sales continued to offset slower B2B retail sales during the pandemic,” said Deanie Elsner, CEO of Charlotte’s Web. “Within our B2B business, we are seeing signs of improvement with a return to consecutive quarterly revenue growth of +36%, led by the natural channel +20%, and the health care practitioner channel +101% quarter-over-quarter.  In addition, we continued to expand our footprint in terms of distribution in Q3 by adding nearly 1000 new doors to our retail footprint, including natural retailers, nearly 300 independent pet stores and approximately 500 new F/D/M retail doors.”

Expenses Jump

Charlotte’s Web did say that operating expenses jumped 44% to $28.3 million over last year’s $19.6 million. The company attributed the increase to its investments in capacity expansion and transition to a consumer-packaged goods operating company capable of supporting mass retail channel growth. In response, management said it has taken actions to better align operating expenses and initiated an expense optimization program targeting reductions of more than 10% of the consolidated expense run rate by the end of 2020. The company used $21.5 million of cash in operations during the third quarter of 2020 compared to $9.6 million of cash used in operations during the third quarter of 2019, primarily due to the increase in changes in working capital.

The company’s cash and working capital on September 30, 2020, were $65.9 million and $128.6 million, respectively, compared to $68.6 million and $116.9 million on December 31, 2019. 

The stock was lately trading at $3.80, far below its 52-week high of $12.99.


William SumnerOctober 9, 2019
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4min1050

It’s time for your Daily Hit of cannabis financial news for October 9, 2019.

On the Site

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) is looking for a new source of funding to complete construction at its Ancaster, Ontario facility. The company had planned on using a traditional commercial bank facility but said that as market conditions have changed, the terms were no longer acceptable.

Kosher Cannabis For The Holidays

Can cannabis be kosher? The short answer is yes, at least if you smoke it. According to Chabad.org, “The answer really depends on how you define the word “kosher. Most narrowly defined, kosher means that it contains no ingredients that were from non-kosher animals, milk and meat, or other substances proscribed by Jewish law.”

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) announced today that it is partnering with the data and measurement firm Nielsen (NYSE: NSLN) to provide analytical coverage of the U.S. hemp-CBD retail market. Recently, Nielsen has been dipping its toes into the hemp and cannabis space by entering into strategic partnerships with cannabis-focused data and analytics firms like Headset and by developing a suite of cannabis measurement capabilities

In Other News

Innovative Industrial Properties

Innovative Industrial Properties, Inc. (IIP) has closed on an acquisition of a 156,000 square foot property in Warren, Michigan for $19 million. Following the closing of the acquisition, the company has also entered a long-term, triple-net lease agreement with LivWell Michigan, LLC, a licensee of LivWell Holdings, Inc. LivWell will make approximately $42 million worth of improvements on the property and IIP has agreed to provide reimbursement of up to $23.0 million.

Zelda Therapeutics

Zelda Therapeutics Limited (ASX: ZLD) (OTCQB: ZLDAF) announced a proposed merger with Ilera Therapeutics LLC, which entered into a strategic partnership with Zelda in March of this year. Under the proposal, Zelda would acquire 100% of Ilera Therapeutics through an all-scrip transaction. If the proposed merger goes through, the companies will rebrand as  Zelira Therapeutics Limited. “The merger will create one of the world’s leading medicinal cannabis companies with a rich pipeline of clinically validated products under development and unique access to the world’s largest and fastest growing cannabis markets,” says Zelda Therapeutics Chairman Harry Karelis.

New Frontier Data

New Frontier Data has reached an agreement to acquire Zefyr Inc. , a cannabis-focused data discovery and profiling platform, for $10 million. Zefyr acquires data from various sources and ingests, normalizes, analyzes, and deploys data and associated informational solutions through artificial intelligence. “Today, as mature market entrants move beyond examining investment risks and opportunities to connecting with the cannabis consumer, Zefyr enables us to expand and deepen our data services to support these evolving cannabis data needs,” said New Frontier Data Founder and CEO Giadha Aguirre de Carcer.


William SumnerAugust 14, 2019
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6min1480

It’s time for your Daily Hit of cannabis financial news for August 14, 2019.

On the Site

Zenabis Global

Zenabis Global Inc. (TSX: ZENA) (OTC: ZBISF) reported that its second-quarter net revenue rose 78% to $25 million from last year’s $4.1 million for the period ending June 30, 2019. The company said that the results were achieved “despite being negatively impacted by temporary price reductions on inventory sold to provincial counterparties designed to help Zenabis to capture a larger share of the recreational cannabis market.”

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF), a producer of whole-plant CBD hemp extract products, reported its financial results for the second quarter ending June 30, 2019. The company’s revenue grew 45% to $25 million over last year’s $17.2 million for the same time period. The net income fell to $2.2 million from last year’s $3.7 million.

Who’s Really Buying CBD? And Why?

If you’re asking yourself who’s buying CBD products, just take a stroll to your local grocery store and mosey over to the vitamins and supplements section. Prepare to be overwhelmed by the thousands of nutraceutical “wellness” products filling the shelves – everything from melatonin chocolates for sleep-aid to echinacea for immune support – and yes, very recently products containing the compound that’s outshined Beyonce in popularity, CBD.

In Other News

Jushi Holdings

Today, Jushi Holdings Inc. released its financial results for the second quarter. Year-over-year, revenue for the quarter increased to approximately $200,000, and the gross profit was roughly $200,000. The net loss increased to $11.8 million, up considerably from $100,000 in the same period of the previous year. Despite low earnings and high losses, the company has a net working capital of $95.4 million, of which $86.7 million is in cash.

Sundial Growers

Sundial Growers Inc. (NADAQ: SNDL) has released their financial results for the second quarter. Gross revenue was $20.3 million. The net loss declined from $16.6 million in the first quarter to $12.4 million. Adjusted EBITDA was a loss of $500,000, up from a loss of $5.5 million. “Sundial accomplished great things this past quarter and our team’s solid execution across key areas of our business resulted in significant revenue growth,” said Torsten Kuenzlen, CEO of Sundial. “We are very confident in our go-to-market strategy, our strengthened balance sheet and our ability to execute upon organic growth opportunities.”

The Green Organic Dutchman

After the close of the market yesterday, The Green Organic Dutchman Holdings Ltd. (TSE: TGOD) reported their financial results for the second quarter. Revenue rose 20% over the previous quarter to $2.9 million. The net loss rose from $8.5 million in the previous year to $16.6 million.  “Q2 was pivotal for the Company as we began commercial production in the second phase of our Hamilton site and expanded our product line for the Grower’s Circle,” commented Brian Athaide, CEO of The Green Organic Dutchman.

Helix TCS

Today, Helix TCS, Inc. (OTCQB: HLIX), announced the release of its financial results for the second quarter. Quarterly revenue was $3.9 million. The gross profit was $1.9 million, with a gross margin of 49%. “We feel that we are still deeply undervalued due to our focus on execution as opposed to publicity, and are working to tell the simple truth of our constantly improving business and strong results,” said Helix TCS CEO and Executive Chairman, Zachary L. Venegas.

HempFusion

HempFusion, Inc. closed a brokered and non-brokered private placements of a total of 28,800,000 units of the Company at a price of US$1.25 per Unit for gross proceeds of US$36 million. The brokered portion of the Offering consisted of the sale of 26,227,650 Units for aggregate gross proceeds of US$32,784,563 and was completed by a syndicate of agents led by Canaccord Genuity Corp. and including Haywood Securities Inc. and PI Financial Corp. Due to demand, the Offering was upsized from US$20 million to US$36 million.


William SumnerJune 19, 2019
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5min1250

It’s time for your Daily Hit of cannabis financial news for June 19, 2019.

On the Site

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc.  (TSX:CWEB)(OTCQX:CWBHF) reported its final hemp planting for its 2019 growing season. The company said that in order to meet growing demand the total acres planted for 2019 has been increased to 862, an 187% increase from 300 acres planted in 2018.

CannTrust Holdings

CannTrust Holdings Inc. (NYSE: CTST) shares popped over 5% in early trading on news that the company had formed a joint venture with California hemp grower Elk Grove Farming Company. CannTrust is a Canadian cannabis company founded by pharmacists and this would be the company’s entry into the United States. The company said it expects to invest roughly $20 million in the operation by the end of 2020. The shares were lately trading at $5.22.

Executive Spotlight: Kraig Fox, President & CEO of High Times Holdings

A veteran media and entertainment executive, Kraig Fox oversees High Time’s day-to-day operations, which now include Dope Magazine, Culture Magazine, Green Rush Daily, and a number of events, including the Cannabis Cup Festivals.

Not Even Close To OK !!! California, Cannabis & IBI (Inherent Bureaucratic Ineptitude)

The Times article describes yet another band-aid the Legislature is slapping on California’s maladroit roll-out of cannabis regulation. This particular band-aid is an emergency extension of time through a budget Trailer Bill. The Bill, which is opposed by environmental groups, extends provisional licensing.

In Other News

Canopy Rivers

Canopy Rivers Inc. (TSXV: RIV) (OTC: CNPOF) announced that has made a $10 million investment and has entered into a strategic collaboration with ZeaKal Inc. ZeaKal is a California-based company with with proprietary technologies that reportedly increase photosynthesis, improve plant yield and enhance nutritional profiles for a variety of crops. “Our investment in ZeaKal, the fifth consecutive international transaction for Canopy Rivers, builds on our thesis of selecting globally scalable and innovative processes, products, and technologies from complementary industries, and applying them to the cannabis and hemp economy,” said Mary Dimou, Director of Business Development at Canopy Rivers.

Green Flower Media

Green Flower Media today announced that it has closed a $20 million Series A financing round. The financing round was led by Tuatara Capital and additional funding came from Poseidon Asset Management and Phyto Partners. The proceeds from the round will go towards developing new certificate programs, creating new content for its subscription service, expanding the company’s team, and forming strategic partnerships.

Innovative Industrial Properties

Innovative Industrial Properties, Inc. announced that it entered into an amendment of the lease with Green Peak Industries, LLC, largest vertically integrated medical-use cannabis license holder in Michigan. The amendment will make available an additional $18 million for Green Peak to expand its cultivation and processing facilities at 10070 Harvest Park in Dimondale, Michigan. “We are thrilled to expand our real estate partnership with one of the premier medical-use cannabis operators in the state of Michigan, another example of our position as a long-term real estate capital partner that our tenant operators can count on,” said Paul Smithers, President and CEO of IIP.


William SumnerMay 29, 2019
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6min1610

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

On the Site

Acreage Holdings

Acreage Holdings, Inc.  (ACRG-U.CN) (ACRGF) reported financial results for the quarter ending March 31st, 2019 with revenue rising 487% to $12.9 million, but the company also delivered a whopping net loss of $31.2 million.  Looking at pro forma results, the revenue would have been $33.1 million and the adjusted net loss would have been $15.5 million.

Special Report: Current Issues in Marijuana Regulation – Veterans Struggle to Gain Access to Medical Marijuana

Thirty-three states and the District of Columbia have enacted medical marijuana programs. Despite this expansion military veterans often face greater obstacles to gaining access to medical marijuana than other groups.

Another Delay for New Jersey Cannabis Legalization

An ongoing political saga took another unpredicted turn this month. After over a year of building momentum, hopes for a legislative vote on legalizing the adult-use of recreational cannabis have once again faded.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings, Inc. (CSE: CWEB) (OTCQX: CWBHF) announced that it has received conditional approval to list its common shares on the Toronto Stock Exchange (TSX). The company anticipates that it will begin trading as of market open on May 31, 2019. As part of its listing on the TSX, the company will delist its stock on the Canadian Securities Exchange at the close of the market on May 30, 2019. “As the market leader in hemp CBD extract products, we are very proud to be the first US-based hemp company to receive a senior listing on a major exchange such as the TSX,” said Joel Stanley, Chairman and Co-Founder of Charlotte’s Web. “The TSX is Canada’s most senior exchange and a tremendous validator of our company’s corporate governance and evolution.”

Origin House

Origin House (CSE: OH) (OTCQX: ORHOF) released today their financial results for the first quarter of 2019. Revenue for the quarter was $11.2 million, the gross margin was $1.7 million, and adjusted EBITDA was $12.7 million. As of March 31, 2019, the company had $39.3 million in cash and approximately $269.4 million in assets. On Jun 11, 2019, Origin House will hold a special shareholders meeting regarding Cresco Labs Inc.’s previously announced acquisition of all of the company’s issued and outstanding shares.

TREC Brands

TREC Brands Inc. announced the launch of two brands, WINK and Blissed, and a $10 million private placement. Blissed is a female-focused cannabis oil brand and WINK is TREC’s second luxury cannabis brand. “We are proud of the premium nature of our organization and our actions to create an industry-wide movement around community support,” says Trang Trinh, CEO, TREC Brands. “With Blissed, the goal is to uplift the modern woman through education and content that complements her lifestyle, while giving back to causes in her neighborhood that matter.”

MedMen Enterprises

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) today released their financial results for the third quarter for the 2019 fiscal year. Revenue rose by 22% to $36.6 million. The gross profit margin  after biological asset adjustment was 53.7%. For the quarter, the company reported an adjusted EBITDA loss of $42.6 million and a net loss of $63.1 million. “Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said Adam Bierman, MedMen co-founder and chief executive officer. “We continue to march onward towards profitability.”


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