CSE Archives - Green Market Report

William SumnerWilliam SumnerMay 1, 2019
daily_hit004-1280x533.png

6min1640

It’s time for your Daily Hit of cannabis financial news for May 1, 2019.

On The Site

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) is going to acquire Cura Partners, Inc. the owners of the Oregon-based Select brand, in an all-stock deal valued at C$1.27 billion or $948.8 million. The company said that the acquisition includes Select’s manufacturing, processing, distribution, marketing, and retailing operations and all adult-use cannabis products marketed under the Select brand name, including all intellectual property. The deal is expected to close in 2019.

Emerald Health

Emerald Health Therapeutics, Inc.  (TSXV: EMH) (OTCQX: EMHTF) delivered fourth quarter and 2018 results along with an update of its first-quarter sales. The revenue in the fourth quarter was $1.1 million versus last year’s $279 thousand for the same time period. The net loss in the fourth quarter was $13.9 million, higher than the third quarter’s losses of $6.4 million.

WeedMD

The licensed cannabis producer and distributor WeedMD Inc. (TSX-V: WMD) (OTCQX: WDDMF) announced its financial results for the fiscal year ending on December 31, 2018. WeedMD’s revenue for the full year grew from $1.4 million to $8.2 million, representing an increase of 456%. The company’s net and comprehensive loss declined dramatically, falling from $8.8 million to just $895,128.

In Other News

Golden Leaf

Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) has reported its financial results for the 2018 fiscal year. Full-year revenue was $16.5 million, up 43% from $11.5 million in 2017. Gross profit declined slightly from 15% of total revenue ($1.7 million) to 13.3% of revenue ($2.2 million). The company’s comprehensive loss declined significantly, falling from $55.9 million in 2017 to $4.4 million, and its net loss was $4.6 million.  “Looking forward, we remain focused on growing revenue by expanding our retail footprint, product array and cultivation presence throughout the U.S. and Canada. At the same time, we are committed to growing responsibly while improving our margin growth and EBITDA. Towards that end, we have taken several measures this year to increase efficiencies throughout our organization to lower costs, increase cash flow and improve our overall financial performance,” said Golden Leaf CEO William Kulczycki.

Dixie Brands

Today, Dixie Brands Inc. (CSE: DIXI.U) (OTC: DXBRF) (Frankfurt: 0QV) announced their financial results for the fiscal year ending on December 31, 2018. Revenue for the year was $5.7 million, up 73% from $3.3 million in the previous year. Fourth quarter revenue was $1.5 million. The gross profit margin was 52% ($3.01 million), up from 47% ($1.5 million) in 2017. Net losses rose significantly, climbing from $4.3 million in the previous year to $21.23 million. Company management attributes the steep climb to “significant increase in operating and other expenses,” such as its reverse takeover of Academy Explorations Limited and public listing activities.  “The financing and public listing we completed in the final weeks of 2018 set the stage for a breakout year in 2019,” said Chuck Smith, President and CEO, Dixie Brands. “Dixie accomplished a lot as a private company, building up an industry-leading portfolio of more than 100 commercialized products.  We are very excited by our opportunities to invest our capital into strengthening our distribution network and market presence to accelerate our growth.”

Weekend Unlimited

Weekend Unlimited Inc. (CSE: POT) (FSE: 0OS1) (OTCQB: WKULF) today announced the appointment of Chris Backus as Interim President and CEO, effective immediately. Backus was appointed to the company’s Board in March of this year and previously served as a former Senior Officer and Manager with the Royal Canadian Mounted Police (RCMP). Backus will focus on the launch of the company’s wknd! brand product line, generating revenues with CHAMP and Verve beverages in the USA, and the ramp-up of the Northern Lights Organics hemp farm in Canada. “’I am energized to accept this leadership role with Weekend Unlimited. Working with the Board and the team, my focus is entirely toward harnessing the Company’s assets to deliver results for shareholders,”’ said. Backus. “This means an immediate mandate to execute on ready-to-go initiatives that will drive revenues while building strong consumer awareness of the Company’s brands. Simultaneously, we will responsibly advance our initiatives supporting growth in the longer term.”


William SumnerWilliam SumnerMay 1, 2019
daily_hit004-1280x533.png

5min1150

It’s time for your Daily Hit of cannabis financial news for April 30, 2019.

On The Site

Sunniva

After the market closed on Monday, Vancouver-based Sunniva Inc.  (CSE: SNN) (OTCQB: SNNVF) reported its fiscal 2018 results for the year ending December 2018 in Canadian dollars. The company delivered$18.8 million in revenue versus 2017’s $16.1 million. The net losses for 2018 rose to $29.0 million versus last year’s $17.5. The company attributed the increase in net losses to SG&A expenses increasing by $10.5 million during the year.  The increase was primarily due to the company’s growth in 2018 as US operations

Texas Continues To Take Baby Steps Towards Legalization

The Texas Tribune reported on Monday that the House of Representatives approved a bill that would decriminalize possession of cannabis. Rep. Joseph Moody (D), the chief sponsor of the bill, still had to amend it in order to get the bill approved. His original version had a lower fine of $250 and it would have dropped down low-level possession to a civil infraction instead of a class C misdemeanor.

How Risk Management Can Make Marijuana Businesses Bulletproof

Envision managing the risk of a volatile, staggeringly lucrative, 100 percent federally legal enterprise?   Toss in ridiculously inconsistent federal, state and local regulations, insanely evolving technologies and efficiencies, and an industry-wide disinclination to ever “play by the rules.” However, when armed with decent risk management fundamentals, a marijuana related business can diminish most horrible outcomes, fortify the enterprise’s sustained growth, and maybe even get rich along the way.

In Other News

Driven Deliveries

Driven Deliveries Inc. (OTCMKTS: DRVD), the only publicly traded cannabis delivery company, has announced that it has entered into a non-binding Letter of Intent to acquire Ganjarunner, Inc., a Los Angeles-based cannabis delivery company. Ganjarunner has an existing customer base of over 10,800 customers, 82% of whom are repeat customers. “This acquisition will provide us with a stable revenue base from which we can continue to grow our revolutionary cannabis delivery platform,” commented Mr. Brian Hayek, President of Driven Deliveries. “Driven will continue to target similar acquisition candidates which we believe to be accretive to our business and provide our partners and us with strategic advantages in this industry.”

Indus Holdings

Today, Indus Holdings Inc. began trading on the Canadian Securities Exchange under the symbol INDS. Indus is a vertically integrated cannabis company based in Salinas, California. The listing was made possible through a reverse takeover of the Toronto-based company Mezzotin Minerals Inc. “This long-anticipated move to the Canadian Securities Exchange creates a world of opportunities for Indus to build upon our success in California and expand into new markets,” said Indus co-founder and CEO Robert Weakley in a statement. “Having access to additional capital will allow us to grow at a more rapid pace, furthering Indus’ position in the cannabis industry.”

KushCo

KushCo Holdings, Inc. (OTCQB: KSHB) announced that it has entered into a definitive agreement with an institutional investor for a private placement of $21.3 million. Canaccord Genuity LLC is acting as the sole placement agent. The Note will be an unsecured senior obligation of the company and will mature 18 months following the closing data. The offering is expected to close on or around April 30, 2019. ‘”We are thrilled to announce this unsecured, non-dilutive financing structure to support our company’s rapid growth. The terms of this note represent a dramatic improvement in our ability to secure financing with a lower cost of capital and is indicative of more attractive financing alternatives within the cannabis industry,” said KushCo’s CEO Nick Kovacevich.


William SumnerWilliam SumnerApril 29, 2019
daily_hit004-1280x533.png

6min1680

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

On The Site

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) reported that its 2018 total revenue was $3.3 million versus zero in 2017. The pro-forma combined Aleafia Health and Emblem revenues in 2018 were $11.3 million an increase of 327% over a combined Aleafia Health and Emblem 2017 revenues of $2.7 million. Still, the company delivered a net loss from operations in 2018 of $9.7 million.

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) announced a key milestone in establishing its Hemp Industrial Park in the Southern Tier region of New York State. It has secured a 308,000 sq. ft. facility on a 48-acre property in Kirkwood, NY. The company said that design development would begin immediately with construction expected to start this summer.

Origin House

Canada-based Origin House (once known as CannaRoyalty Corp.) (CSE: OH) (OTCQX: ORHOF) reported its fourth quarter and year-end results ending in December 2018 in Canadian dollars. The fourth quarter saw revenues of $7.9 million an increase of 638% over last year’s $1.1 million for the same time period. The net loss for the quarter was $6.1 million.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings Inc. (CSE: CWEB) (OTCQX: CWBHF) has a new CEO. The company announced today that Adrienne “Deanie” Elsner would sign on as its Chief Executive Officer effective May 15, 2019.  Elsner previously served as President of Kellogg’s $3 billion Snack Business Unit. Before joining Kellogg, Elsner worked at the Kraft Foods Company and held various leadership positions, including Executive Vice President and Chief Marketing Officer. Elsner was also named by Forbes as one of the 50 Most Influential Global CMOs. “Deanie’s appointment is timely and aligns perfectly with our corporate evolution from the early stage organization we were just two years ago into a professionally managed public company with top-tier executive talent,” said Hess Moallem, current President and CEO of Charlotte’s Web. Moallem will stay on with the company in an advisory position.

New Leaf Data Services

New Leaf Data Services (NLDS), and the Cannabis Mercantile Exchange (Cannamerx) have signed a data-sharing agreement, upon which Cannamerx will provide NLDS with real-time data generated by its international cannabis and hemp trading platform. NLDS will incorporate the platform into its Cannabis Benchmarks® and Hemp Benchmarks® wholesale price assessments. NLDS will help Cannamerx market its international wholesale cannabis & hemp products auction platform, which includes informing its business partners and subscribers about the benefits of using Cannamerx platform. “We are pleased to have entered into this agreement with Cannamerx, which will expand and deepen the wholesale pricing data that is the foundation for our institutional grade Cannabis Benchmarks and Hemp Benchmarks,” commented NLDS CEO Jonathan Rubin.

Cannara Biotech

Cannara Biotech (CSE: LOVE) (FRA: 8CB) has announced its financial results for the three month and six-month periods ended February 28, 2019. Cannara ‘s revenue for the three-month period was $518,438 and for the six-month period was $1,036,881. The net loss for the three month period was $4,011,926 or $0.01 loss per share. The net loss for the six-month period was $6,317,152 or $0.01 loss per share. The company also raised $37,375,268 via private placement in exchange for 207,640,375 common shares. “Financially, Cannara is very solid, with all costs associated with Phase one construction fully funded and most stabilized operating costs offset by lease revenue,” said Lennie Ryer, CFO of Cannara. “Built for the long run, the next few quarters will be eventful as we complete construction and advance towards the goal of ongoing revenues from our state-of-the-art production and processing facility.


William SumnerWilliam SumnerApril 25, 2019
daily_hit004-1280x533.png

4min2100

It’s time for your Daily Hit of cannabis financial news for April 25, 2019.

On The Site

Bank of America Merrill Lynch Initiates Coverage On Cannabis Industry

It was a significant move for the financial industry and the cannabis industry when Bank of America Merrill Lynch (BAML) released a 62-page report entitled “A cannabis world… and more people are living in it.” Green Market Report combed through this detailed report to find some poignant highlights brought forth by Bank of America Merrill Lynch in their analysis of the growing global cannabis market.

SOL Global

SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF), the owner of 3 Boys Farms, which holds one of Florida’s original 14 operating and vertically integrated medical marijuana treatment center licenses, has entered into a binding letter of intent with cannabis-focused private equity firm Merida Capital Partners  to acquire Merida’s Michigan subsidiary, MCP Wellness, Inc. in a deal valued at $150 million.

In Other News

Vireo Health

Vireo Health International, Inc. (CSE: VREO) announced that its patent application titled, “Tobacco Products with Cannabinoid Additives and Methods for Reducing the Harm Associated with Tobacco Use” has been approved by the United States Patent and Trademark Office (USPTO). The patent application covers the use of cannabinoids as a “harm reduction agent” in certain tobacco products such as cigarettes, pipe tobacco, or smokeless tobacco products.

MariMed

MariMed Inc. (OTCQB: MRMD) announced that its subsidiary MariMed Hemp will acquire a 70% of MediTaurus, which owns the CBD health and wellness brand Florance, which has an established retail presence in both the United States and the European Union. The acquisition is part of MariMed’s strategy to optimize its investment in the Kentucky-based CBD producer GenCanna Global Inc. Terms of the transaction were not disclosed. “We at MediTaurus are extremely pleased to be joining the MariMed family and combining our expertise to further develop innovative products and processes and creating world-class brands with fully compliant and transparent supply and production,” said MediTaurus CEO and co-Founder Dr. Jokūbas Žiburkus. “The current dynamic growth of hemp and medical cannabis presents unprecedented opportunities for synergies among scientists, medical practitioners, consumers, and the financial marketplace.”


William SumnerWilliam SumnerApril 24, 2019
daily_hit004-1280x533.png

5min1950

It’s time for your Daily Hit of cannabis financial news for April 24, 2019.

On The Site

Cresco Labs

Chicago-based Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) released its unaudited financial results for the fourth quarter and full year ending December 31, 2018. The fourth quarter revenue was $17.0 million, an increase of 411% over last year for the same time period and up 33% sequentially. The company trimmed its net losses to $2.6 million versus the net loss of $3.0 million for 2017 fourth quarter. The quarter’s pro forma revenue was $22.5 million.

Federal Legalization – Then What?

It is fascinating to step back and observe how the mindset of many in the cannabis industry seems to work. Let’s think through a couple of scenarios and have a peek at the landscape in a post-legalization world. Let’s begin with the following

After the Drama, Where Is Aphria Headed Now?

Even in a space with as much excitement as marijuana stocks, Aphria (NYSE:APHA) stood out for having as much drama as a cable TV show. After all the excitement, what’s next for APHA stock? And have the company’s recent moves made it investable again, or is Aphria only appropriate for the most steel-nerved traders?

In Other News

Grown Rogue

Grown Rogue International Inc. (CSE:GRIN) (OTC: NVSIF), a vertically integrated multi-state cannabis operator, announced that it has entered into a binding letter of agreement to acquire Decibel Farms, Inc., an organic cannabis producer and processor. Under the terms of the transaction, the acquisition will be structured as a tax-free merger and shareholders of Decibel will receive $2 million. Decibel owners Shawn Bishop and Buddy Wilson will join Grown Rouge as Vice President of Manufacturing and President of Sales, respectively.

Aphria

Aphria Inc. (TSX:APHA)(NYSE:APHA) announced that it has closed a $300 million private placement offering to institutional investors. The initial investors exercised their option to purchase an additional $50 million in notes, making the deal worth $350 million. The notes are senior unsecured obligations of Aphria with an interest rate 5.25% per year, payable semiannually on June 1 and December 1 of each year, beginning on December 1, 2019. The notes will mature on June 1, 2024.

TerrAscend

TerrAscend Corp. (CSE:TER)(OTCQX: TRSSF) today released its financial results for the fourth quarter ending on December 31, 2019. Revenue for the quarter was $5 million, up from $1.8 million in the previous quarter. Net loss was $11.7 million or $0.13 per share. The company has $21.7 million in cash and cash equivalents. “We are pleased with our performance in the fourth quarter and have laid the groundwork for success in 2019,” said Michael Nashat, CEO of TerrAscend, in a statement. “We are experiencing strong sales momentum in Canada and are making substantial progress towards becoming a leading US multi-state operator.”


William SumnerWilliam SumnerApril 22, 2019
daily_hit004-1280x533.png

5min1550

It’s time for your Daily Hit of cannabis financial news for April 22, 2019.

On The Site

CannTrust

Ontario-based CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) reported preliminary estimates for the quarter ending  March 31, 2019, with net revenue expected to be approximately $17 million, an increase of 116% versus the $7.8 million for the same time period in 2018. CannTrust also announced that it had begun an underwritten public offering of $200 million common shares, in which approximately 85% of the common shares are to be sold in the offering by the company and about 15% of the common shares to be sold in the offering by certain shareholders.

FDA Public Hearing On Hemp – Uncle Sam Wants You To Talk

The FDA is however finally allowing the public to weigh in, with the announcement of a Public Hearing to take place on May 31, 2019. What’s more, is that the Agency is allowing submission of public comment until July 2, 2019 and seems to earnestly want feedback from the hemp industry.

In Other News

PAX Labs

PAX Labs Inc., a consumer technology company that specializes in cannabis vaporizers, announced that the company had raised $420 million in equity financing from institutional investors, including Tiger Global Management and Tao Capital Partners. Pax Labs is best known as the vaporizer company from which the popular e-cigarette brand Juul originally spun off of. Speaking with Tech Crunch, a Pax Labs spokesperson said that the post-money valuation of the company is now $1.7 billion.

Cannabis One

Cannabis One Holdings Inc. (CSE: CBIS) announced that is executed three definitive agreements to acquire certain assets of the Nevada-based cannabis brand house Evergreen Organix. The agreements include the acquisition of cultivation and manufacturing licenses in the state of Nevada, intellectual property rights, product formulations, logistic operations, etc…The president of Evergreen Organix, Jerry Velarde, will also join Cannabis One as Chief Marketing Officer following closing. “Having already established a reputation centered around brand quality and consistency in the minds of cannabis consumers – we are now excited to jointly announce the contribution of our Evergreen Organix suite of brands, which includes the substantial cultivation and manufacturing infrastructure we have been building since 2015 in the Nevada marketplace, to Cannabis One’s growing ‘House of Brands’,” Velarde said in a statement.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) announced today that it is launching a cannabis genetics company and has pledged to invest approximately $14 million to develop a research facility for the new company. Named Cambium Plant Sciences, the company will focus on researching and developing new cannabis strains for the adult-use and medical markets, as well as health and wellness applications. Dr. Alan Darlington, who previously served as Director of Special Projects for Supreme’s subsidiary 7ACRES, will lead Cambium as General Manager.


William SumnerWilliam SumnerApril 11, 2019
daily_hit004-1280x533.png

4min1720

It’s time for your Daily Hit of cannabis financial news for April 11, 2019

On The Site

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) received approval from the Illinois Department of Financial and Professional Regulation (IDFPR) for Cresco’s previously announced acquisitions of licensed medical cannabis dispensaries MedMar Rockford and MedMar Lakeview, located in the popular Wrigleyville neighborhood of Chicago.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) reported its fourth quarter and 2018 full-year results with revenue rising 172% to $35.9 million from last year’s $28.3 million for the same time period. The company’s net income grew a whopping 3,467% in the fourth quarter to $10.7 million from last year’s $0.3 million for the same time period.

In Other News

KushCo Holdings

KushCo Holdings (OTCQB: KSHB) announced the release of their financial results for the second fiscal quarter of 2019, which ended on February 28, 2019. Quarter-over-quarter, the company’s revenue rose by 39% to $35.2 million. The net loss for the quarter was $8.9 million. Adjusted EBITDA was $5.2 million. As of February 28, the company had $17.9 million in cash. “Our focus remains the build out of a scalable, sustainable business, as we cement our presence as the primary supply chain partner to the cannabis, CBD and related industries,” said KushCo CEO Nick Kovacevich. “As a result of a strong first half of the year, including the signing of a number of long-term supply arrangements-in-principle with several new large, well-known customers, we are raising our revenue guidance from between $­110 million and $120 million for fiscal year 2019 to between $140 million and $150 million.”

White Label Liquid

White Label Liquid, Inc. (OTC: WLAB) today released their financial results for the 2018 fiscal year. Revenue for the year was $7,006,110. The company experienced a net loss of $149, 285. “We had a great year, but it’s only just the beginning,” said White Label Liquid CEO Yaron Elkayam in a statement. “These numbers reflect not just the hard work of our partners all along our supply chain; they are also a reflection of the growing strength of the CBD industry.”

Eve & Co Incorporated

Eve & Co Incorporated (TSX-V: EVE) has entered into an engagement letter with Haywood Securities Inc. Haywood Securities has agreed to purchase 20 million special warrants of the company, at a price of $0.50 per warrant, for a total of $10 million. The offering is expected to close on or around May 10, 2019.


William SumnerWilliam SumnerApril 4, 2019
daily_hit004-1280x533.png

4min3040

It’s time for your Daily Hit of cannabis financial news for April 4, 2019.

On the Site

Merida Capital

Cannabis private equity fund Merida Capital Partners has launched its third fund for $200 million, which will focus on concentrated, high conviction investments in leading companies in the cannabis ecosystem. The company said that since launching its first fund in late 2016, it has deployed nearly $80 million across its first two funds and now has more than $125MM under management.

McConnell & Wyden Pen Letters To US Federal Banking Finance Regulators Over Financial Services For Hemp Producers

The letters were sent to the U.S. Federal Deposit Insurance Corporation (FDIC), the Farm Credit Administration, the Federal Reserve System and the Office of the Comptroller of the Currency. The letters read as follows.

Marijuana Stocks Look Frothy, But Aurora Stock Is Well-Prepared

Over the long run, I remain net bullish on legal marijuana. However, my optimism for the sector doesn’t cloud reality. I can see as plain as daylight that the honeymoon phase is over. Now, companies like Aurora Cannabis (NYSE: ACB) must provide the goods. If not, ACB stock could face serious trouble.

In Other News

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) announced that it has entered into a brokered private sale of up to 500,000 convertible debentures of the company, at a price of $1,000 per debenture. The sale is expected to raise $500 million and will be closed in five tranches over a period of no more than 18 months. The first tranche is expected to close on May 1, 2019. Proceeds from the sale will go towards general corporate purposes and working capital.

Halo Labs

The cannabis extraction company Halo Labs Inc. (OTC: AGEEF) announced that it has raised $18,143,000 in a convertible note offering. The proceeds of the offering will go towards leasehold improvements, the purchase of extraction equipment, working capital and general corporate purposes.

Aurora Cannabis

Aurora Cannabis Inc. (NYSE: ACB) announced that it has appointed Carey Squires as its Executive Vice President of Corporate Development and Strategy. Squires recently served as Managing Director and Co-Head of Equity-Linked Capital Markets for BMO Capital Markets. In his new role, Squires will focus on developing strategic partnerships, growth initiatives, and investor development.


William SumnerWilliam SumnerApril 3, 2019
daily_hit004-1280x533.png

4min1940

It’s time for your Daily Hit of cannabis financial news for April 2, 2019.

On the Site

iAnthus Capital Holdings

iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQX: ITHUF) reported its fiscal fourth quarter and full year unaudited results for 2018, however, the company did not release any financial statement to accompany the press release.

Jacana Exported Medical Marijuana Out Of Jamaica, But Is That Legal?

The Minister of Ministry of Industry, Commerce, Agriculture, and Fisheries, Audley Shaw, recently lauded Cannabis company, Jacana, for making a multi-million-dollar investment in the cannabis industry as the first local entity to export cannabis flowers from Jamaica… There remains one issue with this export; there does not seem to be in existence a law in Jamaica supporting the export of cannabis flowers.

In Other News

IONIC Brands Corp.

IONIC Brands Corp. (CSE: IONC), a company focused on developing luxury cannabis brands, announced today that it has begun trading on the Canadian Securities Exchange (CSE) under the trading symbol IONC. “We are excited that IONIC BRANDS is listed on the Canadian Securities Exchange.  This is a critical step in the Company’s growth plans,” said John Gorst, CEO & Chairman of IONIC BRANDS in a statement. “We look forward to the access of the capital markets to build IONIC BRANDS and our premium brand portfolio.”

48North Cannabis Corp.

48North Cannabis Corp. announced that it has closed a previously announced bought deal short form prospectus offering, which includes the exercise of an over-allotment option granted to the underwriters. The company sold 21,139,760 units of the company at a price of $1.36 per unit, raising $28,750,073.60. 48North will use the proceeds of the offering to develop a 100-acre outdoor cultivation site in Brant County, Ontario and general corporate purposes.

Vertical Companies

Vertical Companies announced that it has raised $58 million in its Series A Financing Round. Originally the company set out to raise $35 million, but later raised the goal by $20 million due to investor demand. “Although early on we thought we might get broader institutional support based on their interest, the federal prohibition kept those funds out of our reach,” said Smoke Wallin, Vertical Companies President, in a statement. “In spite of those challenges, it is terrific that we have such broad-based investor support from the Merida team as well as high-net-worth individuals and family offices. Closing out at $58m with such investor momentum helps propel the company forward as we scale our commercial operations with a keen focus on execution.”


William SumnerWilliam SumnerJanuary 4, 2019
shutterstock_513689059-1280x854.jpg

4min3320

In the absence of sensible federal cannabis reform, a growing number of US-based companies are looking to do business in Canada, where adult-use cannabis is fully legal. Aside from the simple issue of legality, cannabis companies operating in Canada are also able to list themselves on publicly traded stock-exchanges, such as the Canadian Securities Exchange (CSE), whereas most US-based companies cannot.

For those cannabis companies hoping to do business north of the border, the question becomes: how does one take their company public in Canada and when is the right time to do it? A new report released by MGO-ELLO Alliance attempts to answer this question.

MGO-ELLO Alliance is a professional collaboration between MGO LLP, a company dedicated to CPA and financial advisory services, and ELLO LLC, which focuses on cannabis financial services. MGO-ELLO Alliance aims to help shepherd emerging companies through the increasingly complex cannabis industry.

“As the cannabis industry continues to experience massive growth, inevitable financial and operational challenges will develop and the MGO-ELLO alliance is uniquely positioned to provide the highest quality consulting and professional services needed,” said ELLO CEO, Evan Eneman, in a statement announcing the partnership.

In the report, MGO-ELLO Alliance weighs the pros and cons of going public. For example, one of the advantages of going public is that it is easier to raise capital and attract top talent. The tradeoff, however, is that publicly traded companies, especially those in the cannabis space, are under increased scrutiny and are subject to strict regulatory oversight.

The report also covers the differences between going public through an initial public offering (IPO) and a reverse takeover (RTO). Generally seen as the traditional way of going public, IPOs involve filing a preliminary prospectus form with securities regulators and allow companies to raise as much money as possible.

RTOs, which is where a company goes public by buying a publicly traded company, represents a growing trend among cannabis companies in the United States.  The reason why is that RTOs are quicker, cheaper, and subject to less oversight than traditional IPOs. The tradeoff, however, is that the purchasing company will have to issue a percentage of its shares to legacy shareholders of the purchased company. There also may be hidden liabilities that the purchasing company may have to deal with.

For US-based companies hoping to do business in Canada, the MGO-ELLO Alliance report provides a detailed walkthrough of how to go public through both an IPO and RTO, as well what the regulatory expectations are for publicly traded companies.

To view the full report, click the following link or visit the report section on Green Market Report.



About Us

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


READ MORE



Recent Tweets

@GreenMarketRpt – 6 hours

48 hours left to register! This week in 200+ owners, , , and medi…

@GreenMarketRpt – 9 hours

You built your company, now what? Five Tips for Cannabis Companies Thinking of Selling

@GreenMarketRpt – 3 days

Our biggest fans this week: mmlg_llc. Thank you! via

Back to Top

You have Successfully Subscribed!