Employees allege that store managers pocketed more than $125,000 in stolen tip jar money.
Employees allege that store managers pocketed more than $125,000 in stolen tip jar money.
From debt defaults to ousted leaders, the cannabis industry had its fair share of scandals in 2022.
Curaleaf met revenue expectations but saw losses increase.
The real estate investment trust acquired a grow facility in Massachusetts for $21.5 million to lease to Curaleaf.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) posted positive results on Monday — driven by new retail store openings in key emerging states and the green light for adult use in New Jersey. The company reported its financial results for the second quarter ending June 30, 2022.
For the key metric of total revenue, Curaleaf beat expectations as it delivered approximately $338 million during the period — beating the Yahoo Finance Average analyst estimate for revenues of $334.15 million.
Revenue from retail sales rose 13% totaling $252 million — 75% of total revenue — an 8% uptick versus $226 million in the same quarter last year. The company said that growth in retail revenue was primarily due to the opening of 28 stores over the year — seven dispensaries since the last quarter alone — in emerging states such as Arizona (including the acquisition of Bloom Dispensaries), Florida, Maine, and Pennsylvania and the commencement of adult-use in New Jersey.
However, the company also saw wholesale revenue fall 6% to $84 million versus $89 million during the same time last year. The decline in wholesale revenue during the quarter was largely due to the company’s continued assessment of the wholesale marketplace in California and Colorado, it said.
Curaleaf also reported a second-quarter net loss of $28 million compared to a net loss of $7 million in the same period last year. The company said that the net result was primarily impacted by an “unfavorable net change in fair value of biological assets coupled with the increase in operating expenses, which were partially offset by higher revenues.”
Gross profit on cannabis sales was $175 million for the quarter, versus $155 million the year before. Gross profit margin reached 51.9%, versus 49.6% last year — largely resulting from the increase in vertically integrated products sold in its dispensaries and the mix of revenue from higher margin states, the company said.
The earnings were for a loss of four cents per share, which met analysts’ estimates.
Adjusted EBITDA rose to $86 million in the second quarter, versus earnings of $84 million in the same period last year. The year-over-year gain was “primarily driven by solid revenue growth combined with operating leverage,” the company said, adding that “The year-over-year decrease in Adjusted EBITDA margin reflects greater SG&A expenditures due to increased headcount in support of new store openings, higher levels of expenses related to research and development activities, as well as higher sales and marketing spend and an increase in professional fees.”
This quarter, Curaleaf had $187 million of cash and $587 million of outstanding debt net of unamortized debt discounts, which had a weighted average interest rate of 7.3% per annum.
During the first half of 2022, Curaleaf invested $60 million net in capital expenditures during the first half of the year — mostly for cultivation, processing, and retail site development activities. The company said it expects to invest approximately $125 million in capital expenditures in total this year.
“Our record-breaking second quarter got off to a great start with the launch of adult use in New Jersey and a historic 4/20,” said Boris Johnson, Curaleaf’s executive chairman. “We bounced back from earlier headwinds to grow revenue 8%, and AEBITDA 18% sequentially while continuing to execute on our growth strategy for Europe, a key differentiator for Curaleaf and a significant advantage over our competitors. I am also very pleased to report that thanks to our vertical penetration and operating efficiencies, Adjusted EBITDA margins expanded to 26%. The fundamentals of our business are strong, and our leadership team is moving with speed and discipline, continuing to set-up 2022 as another milestone year.”
In newly-minted CEO Matt Darin’s bid to reorganize the company at the top, Curaleaf today said that it has tapped Ed Kremer and Camilo Lyon as new CFO and CIO, respectively. Mitch Hara was named new CSO and started last week.
Ed Kremer has served as a public CFO and held leadership positions at Oakley, Beats by Dre, and Oliver Peoples. Neil Davidson, Curaleaf’s Interim CFO, will work closely with Mr. Kremer during the transition period, the company said.
Lyon most worked as a managing director at BTIG covering the consumer and cannabis sectors.
“Ed, Camilo, and Mitch all bring robust industry experience; track records of business discipline, growth, and success; and smart strategic insights that will drive Curaleaf towards fulfilling our long-term goals,” Darin said at the time. “I’m thrilled to welcome them to the leadership team, and I’d like to thank Neil Davidson for his continued commitment and contributions to Curaleaf.”
Tyneeha Rivers — who joined as the company’s first Chief People Officer in June — has made an immediate impact on organizational dynamics and leadership culture, the release said.
The Daily Hit is a recap of the top cannabis business stories for May 26, 2022.
Cannabis Executives Go On Stock Buying Spree
As the cannabis industry matures, certain patterns are beginning to be established not unlike other retail industries. The one that just occurred is the first-quarter dip in sales. As companies are delivering their first-quarter results, many told investors that sales dipped after the fourth quarter, but that the second quarter was picking up. Read more here.
Ayr Wellness Inc.
Ayr Wellness Inc. (OTCQX: AYRWF) reported financial results for the first quarter ending March 31, 2022 with revenue rising 90% to $111.2 million over last year’s $58 million. Sales did slip a tiny bit from the fourth quarter’s revenue of $111.8 million. Ayr is forecasting $250 million of Adjusted EBITDA, $100 million of operating income, and $800 million of revenue for the fourth quarter of 2022. Read more here.
Decibel Cannabis Company Inc.
Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) released its first-quarter financial results for the first quarter ending March 31, 2022. Decibel reported $23 million in total sales for the quarter, with strong growth over the fourth quarter and topping last year’s revenue of $14 million in the same time period in 2021. The company said that net revenue growth was driven by the launch of Decibel’s new infused pre-roll lines and continued growth in demand for flower, vape and concentrate products, despite the first quarter historically being a seasonally weak period. Read more here.
Humble & Fume Inc.
Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) reported its third-quarter fiscal 2022 financial results for the fiscal third-quarter ending March 31, 2022. Revenue fell to $16 million in the quarter versus last year’s revenue of $18 million for the same time period. Humble & Fume said that the revenue decreased as a result of management’s focus on selling higher-margin products and moving away from lower-margin sales channels. Read more here.
Biotech Investors are Circling Around Psychedelics
Investment in a biotech company is a tricky move for any seasoned investor. It’s always challenging, with great potential wealth tied up for years while the results of clinical trials get published and the approval process of the Food and Drug Administration (FDA) slogs on. To really understand it, there is complicated medical jargon to figure out amidst starry-eyed promises being promoted of treating a human illness or disease for the first time with a new life-changing drug. Read more here. Read more here.
Aurora Cannabis Inc.
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), a Canadian cannabis company, today has announced that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity and BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 51.1 million units of the Company, at a price of US $2.45 per Unit for gross proceeds of approximately US $125.2 million. Each unit will be comprised of one common share of the company and one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share of the company for a period of 36 months following the closing date of the offering at an exercise price of US $3.20 per warrant share, subject to adjustment in certain events. Read more here.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF), an international provider of consumer products in cannabis, announced the launch of Endless Coast Cannabis-Infused Seltzers, a highly sociable line of low-calorie, low-sugar and low-carb beverages which will be available tomorrow at Curaleaf dispensaries in Massachusetts. Read more here.
The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF), a sustainable global cannabis company, reported its financial results for the quarter ended March 31, 2022. “We continued our momentum from Q4 2021 with strong Q1 2022 results, including another record month in March. These results can be attributed to the launch of new products and our existing products gaining further traction, affirming the strategic approach we have taken,” commented Sean Bovingdon, CEO of TGOD. Read more here.
Akerna Corp. (Nasdaq: KERN) announced today the results of its reconvened 2022 annual meeting of stockholders held Wednesday, May 25, 2022, at 9 a.m. Mountain Time with respect to all proposals described in Akerna’s definitive proxy statement filed with the U.S. Securities and Exchange Commission on April 19, 2022. Read more here.
Icanic Brands Company, LEEF Holdings, Inc.
Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF), a brand operator of California cannabis brands, provided the following corporate update and revenue forecast for the three-month period ending July 31, 2022 and for the fiscal year ending July 31, 2023. These financial results reflect the first full quarter and fiscal year of Icanic Brands combined with its recent acquisition of LEEF Holdings, Inc., a California based extractions company. Read more here.
Kiaro Holdings Corp.
Kiaro Holdings Corp. (TSXV: KO) (OTC: KIARF), is today pleased to announce its fourth quarter and year-end financial results for fiscal year 2022 ended January 31, 2022. Significantly expanded retail channel, from 7 to 17 stores, and the addition of experienced results-driven leaders to drive new and expanding revenue channels has delivered record results. Read more here.
Rubicon Organics Inc.
Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) announces that in accordance with the Company’s equity incentive plan, it has amended the terms of 778,500 incentive stock options and granted 40,000 incentive stock options to employees of Rubicon. Read more here.
After the market closed on Monday, Curaleaf announced that it has received commitments for a private placement of 8.0% Senior Secured Notes due 2026 for aggregate gross proceeds of $425 million. It’s the largest single debt financing of any publicly-traded US cannabis company in history and at a rate that is also one of the lowest seen within the industry.
Joseph Bayern, Chief Executive Officer of Curaleaf (OTC: CURLF) said, “This offering will allow us to refinance our existing debt at a materially lower interest rate and provides us with additional financial flexibility to execute our strategic growth initiatives. While this initial offering provides more than enough liquidity to refinance our existing debt and meet current needs, the new Indenture provides us a new degree of flexibility to raise debt financing to ensure we have ample liquidity to meet our needs now and into the future.”
Stifel analyst Andrew Partheniou issued a note on the debt saying he maintains a buy rating on the company and a C$31 ($24) price target. His report stated, “We estimate the MSO could save roughly ~$20m of annual cash flow from refinancing (the largest outstanding rate at 13.0%), which translates to a ~13% accretion to our existing 2023e EPS forecast. Overall, we see the favorable terms as fruits of the company’s expansive footprint with the only MSO having a national presence, an attractive exposure to three REC market conversions in the tri-state area, and international optionality with the incoming German government indicating the desire to legalize cannabis.”
Partheniou went on to add that Curaleaf could issue additional notes as needed under a trust indenture for up to $200m, subject to leverage ratios among other conditions. “The transaction is expected to close Dec. 15, 2021 with proceeds expected to be used for refinancing and working capital,” he noted. “Proforma this deal, refinancing its entire existing debt of ~$360m, repayment/financing fees and previously announced M&A, we estimate CURA’s proforma cash balance at ~$200m excluding potential proceeds of ~$155m from ITM securities. Its debt position paints an equally favorable picture at an estimated proforma ~$400m and a healthy ~8.5x interest coverage ratio or 1.4x debt/EBITDA. As a result, we believe the company could take on that additional financing and retain a strong balance sheet, providing for continued ammunition for further M&A or to fund organic growth initiatives across its vast platform.”
Stifel further illustrated the interest rate Curaleaf scored by comparing it to other MSOs and the rates they have been subject to. Some rates not are much better than a traditional credit card.
The analyst went on to state that his positive outlook on CURA is based on: “1) CURA being the largest cannabis company in the world, providing the benefit of not only ideal diversification with respect to state markets and the only company with a true national presence but also an attractive volume of deal flow; 2) a strong M&A track record with over $1b in deployed capital while also completing every transaction announced; and 3) best-in-class access to capital with the largest equity financing in the history of the US industry.”
The Green Market Report sat down with Curaleaf’s CEO Joe Lusardi at last week’s MJ Biz conference in Las Vegas NV. This interview has been edited for grammatical purposes.
Debra Borchardt: The Select deal – you brought those numbers I guess to a new reality. Where are you now with that transaction? Because you’ve pretty drastically changed the valuation on that.
Joe Lusardi: I’m not sure I’d characterize it that way. What I would say is that we reduced the base consideration. The transaction, if they do what we think they’re going to do, will be 90 million shares. So it’s just, we restructured it to de-risk it and make some of the consideration an earnout. And we thought that that was the prudent thing to do given what was going on in the vape environment.
Now you’re maybe aware that the Massachusetts vape ban lifted today. The CDC is saying that we’ve already reached the peak of people showing up with lung disease. And that started the decline, which all points to the fact that the problem is largely from the black market. So we’re actually pretty confident in that category overall, and that consumers are going to come back to that form factor, and we feel pretty good about the transaction, to be honest. And I think it’s also important to know that the Select brand is not just the vape brand, it’s a family of products. So you’re going to be seeing a number of new products from Select over the coming months. One is a gummy that’s now available in a couple of markets. You’re going to see a spray, a tincture, and a couple of other novel form factors in the Select brand. So we feel good about the transaction.
Debra Borchardt: Were you surprised at all with any of the Select sales numbers when you really started to peel back some of the layers on Select? Because I had heard a lot of rumors out in the market about Select before you guys got interested in them.
Joe Lusardi: There’s no manipulation of the numbers. I mean we did a pretty thorough diligence of the business. What I would say is that they clearly felt the impact of the vape crisis. We did a thorough vetting of the transaction before we did the deal. We’re very optimistic. Again, I said that consumers are becoming more aware that they should buy regulated products. Select’s whole brand ethos is about safety and quality, and I think you’ll continue to see that as they pioneer new hardware and new products. So I think we felt very good with the transaction. We’re trying to close it on January 2nd. We’re working with regulators right now. We’ve cleared the DOJ HSR review, which is a pretty big event. So everything looks to be on track for early January close.
Debra Borchardt: You just put in a new executive, Joe Bayern, a president that was from INDUS Holdings, but he seemed like he had mostly a CPG background. We’re seeing a lot of that within the cannabis industry, this whole hiring of CPG executives. What is the thought process for you guys behind that?
Joe Lusardi: I would characterize Curaleaf as an early-stage consumer product company. And I think people that come out of that industry, that have a depth of knowledge and building brands, building infrastructure and taking companies from small to bigger is highly relevant for where we are in our growth curve. So I’m ecstatic that he joined the team. He’s a bit of a unicorn in that he also had cannabis experience. But that’s not why we hired him. We hired him for his experience before cannabis.
It’s helpful that he’s been in the industry for 11 months and we don’t have to explain Cannabis 101. But we hired him because he has worked on some very significant transformations of businesses, including Cadbury, Dr. Pepper, Snapple, he was on the senior team that built VOSS Water, which is now a premier global water brand. So he’s a very capable executive, has skills that I certainly don’t have. And it’s going to be a huge addition to the team.
Debra Borchardt: So you just mentioned that Select has got new products coming out. What’s really your strategy then for 2020?
Joe Lusardi: The marketing people would kill me if I say too much more. But what I’ll tell you, we really think that consumers are coming to cannabis and they’re looking for a variety of form factors. So you know, flower already represents less than half the sales and in most states, vapes are coming out strong and the edible category continues to grow. And so I think that’s where you’re going to see a lot of development in 2020, particularly for brands like Select. And I think that those products are really exciting because they’re consumer packaged goods, right? And so they lend themselves to marketing, form factors, predictability, consistency, and really brand building. So that’s why we’re really excited about what we have ahead of us.
What makes Curaleaf unique is that when we close Grassroots in the spring, we will have a platform unlike any other cannabis company really in the world. And what’s really exciting is we’re going to take the number one brand from the West Coast and move it all across the United States. So Select will be the number one brand in most major markets in the country for 2020, and no one else is going to do that.
Debra Borchardt: When you look at Illinois and Michigan, everybody’s saying Michigan is going to be the next big market. Oh no, it’s Illinois. Which is it?
Joe Lusardi: It’s Illinois.
Debra Borchardt: Illinois?
Joe Lusardi: That’s not debatable, it’s 13 million people in 55 stores. The numbers stack up really well. It’s just math, I’m not a genius.
Debra Borchardt: But I’m sure you’ve heard people say the same thing like, “Oh, Michigan is going to be the big one.”
Joe Lusardi: Look, I think Michigan is a really interesting market. It has a very prolific caregiver market that has a huge amount of patients in the state. It’s really, really going to come down to how the market structurally changes, because you have a lot of what I would say, activity, that hasn’t always necessarily fit within the framework or the regulations. There’s been a lot of caregivers and a lot of dispensaries that are operated that were not fully licensed by the state. And so if they can corral all that activity and really push it out through the regulated channel, unlike California, then Michigan has a chance to be a very big market, a regulated market. There’s no denying that both Michigan and California are big cannabis markets, that’s for sure undeniable, but can they be good regulated markets? We’ll see. California clearly is struggling with that concept.
Debra Borchardt: And Massachusetts recently started their adult-use sales. Everybody was saying, “Oh, all the New Yorkers are going to go across the state lines, and that really doesn’t seem to be happening. I think a lot of people thought that Massachusetts was going to be the domino that was going to tip a lot of the other Northeastern states. And that doesn’t really seem to have happened.
Joe Lusardi: Massachusetts. My home state has clearly not lived up to expectations in 2019. I would say that that was largely driven by factors out of the operator’s control. It was really driven by how the government rolled out the program. I think that only now the state has 30 stores open. So this…
Debra Borchardt: And they’re disappointing. I’ve been in a couple of them and I’m like, “You got to be kidding me.” But I’m used to going to California dispensaries, and such.
Joe Lusardi: I mean California has had a 20 years quasi-legal marijuana market. So you’re not going to get there tomorrow. But it’s also true that because Massachusetts has been, I’ll say deliberately in rolling out the program, it’s supply constraint. So you don’t have a diversity of manufacturers. You don’t have a diversity of growers. You don’t have a diversity of stores, there isn’t a really prolific wholesale market.
It’s a very challenging operating environment right now. The early numbers are promising. I think 2020 will be a big year for Massachusetts. It will be a big leap forward. We just opened our first adult-use store in November. We’re going to open up two more, one in Provincetown, we think in early 2020 and then another in the state. So it’s going to be a good year for Curaleaf and I think that as more operators get open, the market will develop, there’ll be more specialization in manufacturing. There’ll be more products, and the shelves will fill up, and it’ll be a more wholesome retail experience, but it’s unreasonable to expect it will be like California. It’s just, we don’t have that history. Right? The East Coast has been very deliberately rolled out with a limited number of players, very capital intensive.
Debra Borchardt: Very, very conservative.
Joe Lusardi: So it’s going to take time. But I mean anecdotally, if you go to the stores out in the Berkshires and you’d go in the parking lot, there’s a lot of New York license plates in those parking lots. And what I would also say is that I do think it will be a catalyst in 2020 because it’s putting a lot of pressure already on Connecticut. If it had rolled out the program faster, the pressure would have been greater. But Connecticut clearly needs to address a massive budget shortfall and I think they’re going to look to cannabis as one avenue.
Maine is going to go adult use this spring. Governor Mills has been fantastic and is really driving the program. So you’ll have two Northeast states, Connecticut is under a lot of pressure. New York, the dialogue is going to be very active in January through March, I mean the Lieutenant Governor came out today and said that it’s long overdue. So that’s interesting. And Governor Murphy in New Jersey said he’s going to take another crack at it, so it’s going to happen. Governor Wolf in Pennsylvania supports it. Progress is not linear or sometimes quick, but I genuinely feel like maybe the dominoes are falling, not as fast as people hope, but they’re going to fall.
Debra Borchardt: So it sounds like you’ll be ready to put a close to 2019. 2020 looks a lot more promising.
Joe Lusardi: I have to say for Curaleaf, despite the pain in the equity markets, this is a fantastic year for our business. We had a major inflection point in Q3 we showed 30% top-line growth for the second quarter in a row, we’re adjusted EDITDA positive two quarters in a row. We’re opening stores, we’re executing on our business. We’re turning all of the investment we’ve made into cash-generating assets. So this is the best year in our company history. I mean, it was really a great year, operationally. 2020 sets up to be even better.
It’s time for your Daily Hit of cannabis financial news for August 28, 2019.
SLANG Worldwide Inc. (CNSX: SLNG) delivered its financial results in Canadian dollars for the second quarter ending June 30, 2019, with revenue increased sequentially by 44% to $7.2 million and a big jump over last year’s $440,000 for the same time period. More importantly, Slang reported a net income of $17.5 million in the quarter versus a net loss of $13 million for the same time period in 2018. An even bigger accomplishment sequentially with a net loss of $16.1 million in the first quarter.
On August 19, 2019, the Supreme Court of California issued a unanimous opinion in Union of Medical Marijuana Patients, Inc. (“UMMP”) v. City of San Diego. Except for the parties and the limited number of individuals who follow litigation involving environmental law, this case has moved through the California court system with little notice.
In June 2013 Texas Cannabis Report launched as a premier news agency dedicated to covering the issue of cannabis activism and policy. Texans did not have a reliable source of news in this area, prompting our formation. Six years later there has been much progress made in ensuring this under-served community has access to quality and reliable information.
Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported that its second-quarter revenue increased 228% to $44.7 million for the period ending June 30, 2019, over last year’s $13.6 million. Revenue grew 60% over the first quarter of 2019. The company said that the revenue growth was driven by organic growth across GTI’s consumer products and retail businesses, strategic acquisitions and increased store traffic.
TILT Holdings Inc. (CSE: TILT) (OTCQB: SVVTF) has released its financial results for the quarter ending on June 30, 2019. Revenue was $39 million, up 13% from the previous quarter. EBITDA was a loss of $4 million, up from a loss of $7.9 million. The net loss was $48.9 million. “The second quarter was a highly productive period for TILT. We continue to optimize our organization, including the dismissal and re-alignment of senior leadership, accelerate integration efforts, dramatically reduce overhead and instill an enhanced focus on profitable growth. TILT is making progress on our key initiatives to drive operational stability and progress toward profitability…” commented TILT Holdings interim CEO Mark Scatterday.
Origin House (CSE: OH) (OTCQX: ORHOF) released its financial results for the three and six month period ending on June 30, 2019. Revenue for the quarter was $21.4 million. The gross margin was $4.4 million and adjusted EBITDA was a loss of $21 million. The net loss was $34.9 million. “”I am very proud of the entire Origin House team for generating another quarter of record revenue growth, leveraging the California brand support and distribution platform we built over the past several years, to deliver results for shareholders,” said Origin House CEO Marc Lustic.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced the release of its financial results for the second quarter. Total revenue for the quarter rose from $35.25 million in the previous quarter to $48.48 million. Adjusted EBITDA was $3.35 million, up from a loss of $3.6 million. The net loss was $24.54 million. “With the industry’s largest operational footprint, we have the scale to rapidly accelerate growth across the country. I continue to believe Curaleaf is the best positioned operator in the cannabis space with the potential to create substantial shareholder value,” said Curaleaf CEO Joseph Lusardi.
TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced that it has signed a definitive agreement to purchase ABI SF, LLC, which operates a Bay Area cannabis cultivation facility and owns the premium cannabis brand State Flower. Initially, TerrAscend agreed to purchase 49.9% of State Flower for $2.85 million, along with extending a line of credit up to $3.75 million for cultivation facility improvements. The company has since upped its stake to 50.1%.
Vibe Bioscience Ltd. (CSE: VIBE) released its financial results for the three and six months ending on June 30, 2019. Quarterly revenue rose from $1.31 million in the first quarter to $3.09 million. The gross margin was $1.2 million and adjusted EBITDA was $113,322.
It’s time for your Daily Hit of cannabis financial news for July 24, 2019.
Nick Ortega is the Co-Founder and CEO of Claybourne Industries, a cultivator and distributor specializing in growing brands throughout California. Claybourne’s house brand, Claybourne Co, is known for its innovative flower products such as The Claybourne Power PackTM and the Claybourne Top Shelf 1oz jar.
You may not be able to purchase cannabis from your local gas station, but that hasn’t stopped the international convenience store chain Alimentation Couche-Tard (TSX: ATD.A ATD.B) from staking a claim in the industry. Today it was announced that the company would purchase a stake in Fire & Flower Holdings Corp. (TSXV: FAF) $25.9 million.
In a time of designer bags, jewelry, shoes, and a slew of other consumer goods being knocked off, the cannabis industry has also fallen victim to counterfeit products. Imagine going into what you believe is a legitimate cannabis dispensary or online shop and being sold what you think is a King Pen, Brass Knuckles, or Heavy Hitter vape, only to find that in comparison to what you’re inhaling, “you’re better chewing on lead paint.”
In the wake of the news that Curaleaf Holdings (OTCMKTS: CURLF) had received a warning letter from the United States Food and Drug Administration over “unsubstantiated health claims,” the national pharmacy retailer CVS has announced that they will no longer sell Curaleaf products. In a statement, Mike DeAngelis, CVS’ senior director, corporate communications, said that the company has no plans to resume selling Curaleaf products once they are pulled from the shelves. In response to the FDA letter, Curaleaf representatives say that the company “will work collaboratively with the FDA to resolve all issues addressed in the agency’s letter.”
Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) announced that it had raised C$50.2 million in a bought deal offering led by Canaccord Genuity Corp. At C$2.45 per unit, Green Growth Brands sold 20.5 million units of the company. Each unit is comprised of one common share and half of one common share purchase warrant. The company has also extended to the underwriters an over-allotment option to purchase an additional 3,075,000 units at the offering price, totaling C$7.53 million. The closing is expected to close on August 21, 2019.
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