CV Sciences Archives - Green Market Report

William SumnerWilliam SumnerAugust 7, 2019
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6min5690

It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site

LeafLink

Online cannabis wholesale marketplace, LeafLink announced the completion of a $35M Series B round of funding. The round was led by Thrive Capital. Current investors Nosara Capital, Lerer Hippeau, Wisdom VC, and Thought Into Action Ventures also participated in the round alongside L2 Ventures.

Columbia Care

Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) reported financial results for its second quarter ending June 30, 2019, with revenue increasing 102% to $19.3 million and 50% sequentially. The net losses grew to $33.7 million versus $4.2 million for the same time period in the previous year. The company blamed the losses on the “recognition of listing fee and share-based compensation expense, as well as higher operating expenses related to the company’s expansion in both new and existing markets.”

The Green Organic Dutchman

The Green Organic Dutchman Holdings Ltd. (TGOD)  (TSX: TGOD) (US: TGODF) has submitted an application to list its common shares on the NASDAQ according to a statement from the company. “This is an important step in the growth of TGOD, one that will broaden our investor base and increase access for international investors as we build the leading global organic cannabis brand”, commented Brian Athaide, CEO of TGOD.

Guest Post: The Legal Status of CBD Oil in Italy

The issue of legalisation of cannabis and its derived products has been under discussion for decades in Italy. However, with each passing year, the legal status of cannabis and CBD products only gets murkier.

In Other News

Pasha Brands

Pasha Brands Ltd. (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD) announced that it has secured eligibility from the Depository Trust Company (DTC) to list its shares on the OTC Markets. “We are very pleased to have obtained DTC eligibility,” said Patrick Brauckmann , Executive Chairman of Pasha Brands. “This status will make the process of trading our stock in the United States much easier. We expect that this will make our shares available to a larger percentage of the investment market, which should improve the liquidity of our shares and therefore benefit Pasha and our shareholders.”

GW Pharmaceuticals

After the market close yesterday, GW Pharmaceuticals (NASDAQ: GWPH) announced that it has released its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $72 million, the vast majority of which was generated from sales of CBD-based drug Epidiolex ($68.4 million). Net income was $79.7 million, up from a net loss of $84 million in the same period of the previous year. “We are pleased to report a strong second quarter of sales of Epidiolex in the US, reflecting high demand by US patients, increased prescribing by healthcare providers, and ongoing progress in payor coverage determinations,” said GW CEO Justin Gover. “In Europe, we are pleased to have recently received the positive opinion from the CHMP which clears the way for an expected approval in October.”

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) announced the release of its financial results for the second quarter, ending on June 30, 2019. Revenue for the quarter was $16.9 million, representing an increase of 36% over the same period in the previous year. The gross margin improved slightly, rising from 70.8% to 70.9%. Operating income was $1.3 million. “We remain highly confident in the long-term growth of hemp-based CBD and will continue to lead the industry in quality, innovation and both regulatory adherence and support as the market develops,” commented CV Sciences CEO Joseph Dowling.


StaffStaffAugust 6, 2019
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8min6960

It’s time for your Daily Hit of cannabis financial news for August 6, 2019.

On The Site

GW Pharmaceuticals

British biotech firm GW Pharmaceuticals pls (NASDAQ: GWPH) second-quarter net sales of $68.4 million of the company’s cannabis-related drug Epidiolex, which is prescribed for children with rare epilepsy diseases. For the first half of 2019, GW Pharmaceuticals has sold $109 million of the drug. The good news sent the stock higher by over 10% in aftermarket trading to lately trade near $170.

The company delivered $72.0 million in revenue for the quarter ending June 30, 2019 versus $3.3 million for last year’s quarter for the same time period. Net income for the quarter was $79.7 million versus a net loss of $84.0 million for last year’s quarter. The cash and cash equivalents on June 30, 2019, were $583.7 million.

Zynerba

Australian-based Zynerba Pharmaceuticals Inc. (ZYNE) delivered second-quarter results and updates on the company’s drugs including its CBD (cannabidiol) gel. The general and administrative expenses for Zynerba during the second quarter of 2019 were $3.3 million, including stock-based compensation expense of $0.8 million. The net loss for the second quarter of 2019 was $11.1 million with a basic and diluted net loss per share of $(0.50).

The company announced that the U.S. Patent and Trademark Office issued U.S. Patent No. 10,314,792 titled “Treatment of Autism Spectrum Disorder with Cannabidiol” which includes claims directed to methods of treating autism spectrum disorder by administering a therapeutically effective amount of synthetic cannabidiol. This new patent expires in 2038 and is part of an expanding intellectual property portfolio covering Zygel.

Aurora Cannabis

Aurora Cannabis Inc.  (NYSE | TSX: ACB) gave an update on selected financial metrics for the fourth quarter of the company’s fiscal 2019 period ending June 30, 2019. While the information is selectively limited, Aurora said it feels it is being transparent by releasing the data and that the full results will be published prior to September 15, 2019. The company did not report any expense figures or any data relating to net profits or losses. The stock seemed to get a boost as the price was lifted by 5% in premarket trading.

Credit Unions

Last week Ohio Gov. Mike DeWine signed a bill that will allow credit unions and other financial institutions to service businesses that cultivate hemp and sell cannabidiol products as long as there is no more than 0.3% of THC. This week, NCUA (National Credit Union Association) Chairman Rodney Hood said that credit unions won’t be sanctioned for servicing cannabis-related accounts as long as they adhere to money laundering rules.

“It’s a business decision for the credit unions if they want to take the deposits,” Hood told the Credit Union Times. He added, “We don’t get involved with micro-managing credit unions.” Hood also told the CU Times that Congress could remove all ambiguity if it enacted legislation to declassify marijuana.

In Other News

CV Sciences

CV Sciences’ Q2 earnings release: https://ir.cvsciences.com/press-releases/detail/124/cv-sciences-inc-reports-second-quarter-2019-financial. The company reported revenue of $16.9 million for the second quarter of 2019, an increase of 36% over the same quarter in 2018. 14 consecutive quarters of sequential revenue growth. Gross margin improved to 70.9% from 70.8% in the first quarter of 2019. Retail distribution increased to 4,591 stores as of June 30, 2019, a 39% increase from March 31, 2019.

Broadened retail presence into the food, drug and mass channel and in active discussions for further expansion of the PlusCBD™ Oil brand. Generated $2.7 million of cash from operations, with total cash balance increasing to $15.7 million at quarter-end. Dismissal of class action suit which was originally filed in 2014. Announced planned 500% increase in production capacity with the addition of new 45,500 square foot facility. Initiated domestic sourcing efforts, committing to more than 500 acres of U.S. Hemp Production to support future sales.

TerrAscend

TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) signed a definitive agreement to acquire Ilera Healthcare, one of five vertically-integrated cannabis cultivator, processor, and dispensary operators in Pennsylvania, with such vertically-integrated licenses, also referred to as “Super Licenses” in the state.

TerrAscend has agreed to acquire 100% of the equity of Ilera for total consideration of between US$125-$225 million, paid in a combination of cash and TerrAscend shares. On closing, TerrAscend will pay to the sellers US$25 million in cash, subject to customary closing adjustments, and an additional US$25 million worth of proportionate voting shares in the equity of TerrAscend equivalent to approximately 5,059.102 proportionate voting shares (which are each exchangeable for 1,000 TerrAscend common shares, being issued at an issuance price of US$ 4.94 per share, based on the 45 day volume-weighted average trading price of TerrAscend’s common shares as of Monday, July 29, 2019 of C$6.5307 and an exchange rate of C$1.3216 per US$1.00). The additional cash consideration of up to US$175 million2 in aggregate may be paid to the sellers based on Ilera achieving certain specified revenue and profitability targets, with staged payments being made in 2020 and 2021. The transaction is expected to close in the 4th quarter of 2019, subject to regulatory approvals by the Pennsylvania Department of Health as well as certain customary closing conditions.

Louisiana

Medical marijuana is now legally available to Louisiana patients, with Baton Rouge’s Capitol Wellness Solutions recording the state’s first-ever regulated medical-cannabis sales transaction at the dispensary’s grand opening today. Three patients were the first to benefit from the state’s new regulated medical program, including two cancer patients and the first veteran in the state to be able to utilize medical marijuana to treat symptoms of PTSD.


Anne-Marie FischerAnne-Marie FischerJuly 31, 2019
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8min69250

According to Brightfield Group, the CBD market in the U.S. has grown over 700% in 2019.

The CBD industry is becoming much more saturated than it was before the passing of the U.S. Farm Bill late last year, with new products entering the market, threatening to take a slice of the CBD pie that the early producers of CBD have enjoyed until this time.

Nevertheless, the top 20 CBD companies still hold a majority of the even bigger pie that is CBD in the cannabis industry. 

Brightfield Group listed the Top 5 CBD Companies that the research group says “continue to make a name for themselves” within the growing CBD market. Here’s what we know about these various companies:

 

  • CW Hemp (Charlotte’s Web)

 

Earlier this summer, Charlotte’s Web Holdings (TSX:CWEB)(OTCQX:CWBHF) announced that their total acres of hemp planted for the 2019 growing season had increased 187% due to interest and demand for the products. Prior to that, the company reported its earnings for the first quarter with revenue growing 66% to $21.7 million. 

“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” stated Deanie Elsner, CEO of Charlotte’s Web. “Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan.”

Brightfield Group remarked of the company: “By deeply understanding who they are as a brand and identifying the consumers that resonate with their messaging, they have built the foundation for potentially life-long customers and advocates.”

  1. PlusCBD Oil (CV Sciences)

PlusCBD Oil by CV Sciences (OTCMKTS: CVSI) has found success largely due to their low-dose capsule and softgel formats that Brightfield Group referred to as “a safe bet for more conservative users”. Green Market Report has been watching the steady increase in CV Science’s company value following last year’s impressive sales jump of 203% in the second quarter. 

The company is expected to announce its second-quarter results for 2019 on August 6. 

        3. Green Roads World

Green Roads offers unique, high-dose products, and have built their success on effective social strategies. With a growing employee base of over 100 the company had an estimated value of $45 million in 2018, according to co-founder Arby Boroso. 

The company sells CBD-infused products such as tinctures and balms, online and in 6,000 stores and 2,000 doctors’ offices across the country. Brightfield attributes their “values-based marketing” to their success and prominence in the CBD industry. 

  1. Medterra

Medterra’s growth is largely due to its effective SEO strategy and marketing. With a site that is full of engaging content that manages to get past the limitations of search engines, Medterra gets itself in front of the eyes of consumers.

The company recently announced a foray into the sports, fitness and golf communities, by partnering with Worldwide Golf Shops, the parent company to Edwin Watts, Roger Dunn, and some of the most well-known and established golf retail stores in the United States. 

  1. Irwin Naturals

Irwin Naturals turned heads when Klee Irwin, the founder of the company announced the company would be giving away $1M worth of CBD products to honor the passing of the Farm Bill. 

The company is concerned with making the cost of CBD products affordable, saying “Our mission is to spread health to the world through plant medicine. Our nation is on the edge. And I am worried about the future of our children. If we can make CBD affordable and accessible to the masses, it just might help our country avoid a meltdown.”

Groups of Competitors in the CBD Market

Brightfield Group laid out the different types of companies and brands that are continuing to lead the pack when it comes to innovative marketing, advanced products, and ways to stick out in the market. These companies are those who are:

  • CBD-only companies that have established brand loyalty, improved marketing strategies, and grow larger and more diverse customer bases
  • Cannabis companies including multi-state operators that leverage networks and infrastructure to build brand recognition and raise capital to expand CBD lines
  • Supplement brands existing in the natural food store and retail chain space
  • Disruptor brands that were little-known prior to this year and have risen up in the ranks as they’ve been picked up by large retail chains

As it is only still summer, it remains anyone’s game as to who will end up at the finish line in the CBD brand race by the end of the year.  


StaffStaffMarch 12, 2019
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4min5790

It’s time for your Daily Hit of cannabis financial news for March 12, 2019.

On The Site

Corbus Pharmaceuticals

Synthetic cannabis pharmaceutical company Corbus Pharmaceuticals Holdings Inc.(CRBP) reported earnings for the fourth quarter and the full year ending in December. For the quarter, Corbus delivered a net loss of approximately $17,306,000 or a net loss per diluted share of $0.30, compared to a net loss of approximately $10,694,000, or a net loss per diluted share of $0.20, for the same time period last year.

Revenue from awards for the quarter was $1.9 million. For the full year, revenue from awards increased by approximately $2.4 million to $4.8 million due to revenue recognized from the up to $25 million Development Award Agreement with the Cystic Fibrosis Foundation.

In Other News

CV Sciences

CV Sciences, Inc. (OTCQB:CVSI) reported its financial results for the year ended December 31, 2018.The company delivered revenue of $48.2 million for 2018, an increase of 133% over 2017. The company also reported net income of $10.0 million, or $0.09 per fully diluted share. The adjusted EBITDA of $14.0 million or 29.0% of net revenue for 2018, was an increase of $12.4 million from $1.6 million for 2017.

Retail distribution increases to 2,238 stores as of December 31, 2018, a 45% increase over the prior year. The company generated $12.6 million of cash from operations, with cash balance increasing to $12.7 million at year-end.

“We finished 2018 with strong sales momentum and enter 2019 well positioned to capitalize on the rapidly growing consumer awareness and broad-based demand for hemp CBD products. We generated 133% revenue growth during 2018 and expanded the availability of the PlusCBD™ brand to over 2,200 stores nationwide,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.

KushCo

KushCo Holdings, (KHSB) the cannabis industry’s largest and most respected distributor of packaging, supplies, and accessories for the regulated cannabis industry, announced today it has signed a long-term development and distribution agreement with IEKO Corporation for the production of compostable and biodegradable packaging products for use in the cannabis and CBD industries.

Choom

Choom Holdings USA Inc., (CSE: CHOO) (OTCQB: CHOOF) has signed a letter of intent to purchase an equity interest in a New Jersey-based medical retail dispensary applicant in New Jersey’s upcoming Request of Applications that also intends to enter into recreational cannabis retail upon legalization, which is anticipated in 2020.

Pao

PAO Group, Inc. (OTC: PAOG), announced that itis moving forward with the acquisition of a cannabis grow and processing lab operation in Romulus, MI. PAOG announced it officially appointed Andres Fernandez as our new Chief Marketing Officer.

CannAmerica

Cannamerica Brands Corp. (CSE: CANA) (OTCQB: CNNXF)  entered into a binding letter of intent to create a joint venture with Sericea Labs S.A. de C.V.and CBDistribution Company Ltd.  with the intention of building a facility in Mexico for importing and warehousing licensed CBD products as well as CBD oils and tinctures destined for refining.


Debra BorchardtDebra BorchardtAugust 28, 2018
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5min9880

CV Sciences, Inc. (CVSI) issued a statement denying that it had violated securities laws. The statement stemmed from a claim by Citron Research that CV Sciences had a patent application rejected by the United States Patent and Trademark Office (USPTO).

Initially, CV Sciences stock popped 25% in one day prompting Citron to release the negative report on August 20. The stock actually jumped around considerably over a few days. On August 17, the stock opened at $5.62 and then closed up at $6.61 on a normal volume of roughly six million shares.

The following trading day when the report was released on August 20, the stock plunged from an open of $6.91 down to $4.21 on 29 million shares traded. On the following day, the stock opened at $4.05 to close at $5.58 on 11 million shares.

According to a company statement, the Citron report alleges that CV Sciences violated securities laws by failing to disclose that it had received notice from the USPTO that its pending patent application, U.S. Patent Application No. 15/426,617, had been “finally rejected” by the USPTO.  The complaint draws the conclusion that this notice from the USPTO terminated the company’s patent application, and that the company’s efforts to obtain patent protection for the inventions disclosed in the ‘617 Application have therefore failed.

Citron sent a Tweet that said,

misrepresentation by management. The total bull case is based on REJECTED patents the company has never disclosed and continues to hype. Securities Fraud? Another IRTH special

Following the Citron report, a class action lawsuit was filed on behalf of shareholders that alleges that same violation.

“We believe that any claims alleging violations of securities laws by the Company are without merit and we intend to vigorously defend our position,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.

It was suggested that Citron is a short seller who would benefit if the stock price fell.

“The conclusions in the complaint and in the ‘report’ by Citron Research are outright false, and demonstrate either an ignorance, a disregard, or both, of the basics of patent prosecution,” stated Mr. Dowling.  “A ‘final rejection’ in the context of patent prosecution is anything but final.  It by no means indicates that the applicant has failed in its efforts to obtain an issued patent.” We will continue to prosecute the ‘617 Application and plan to file and prosecute several more applications related to the inventions described in the ‘617 Application.”

Mr. Dowling continued, “While the end result is not assured, both the Company and our patent counsel at Banner & Witcoff continue to have comfort that we will obtain an issued patent pursuant to the ‘617 Application.”

CV Sciences didn’t address whether it had properly disclosed the patent application transaction history. The stock fell an additional 13% on the denial and was lately trading at $4.30.


William SumnerWilliam SumnerAugust 1, 2018
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3min8470

CV Sciences (CVSI), a company dedicated to developing CBD oil products and novel therapeutics utilizing synthetic CBD, today announced its financial results for the second quarter, which ended on June 30, 2018. The stock popped almost 5% on the news sending the price to approximately $3.31 for a 52-week high. Most recently the company announced that it has applied to list its stock on the NASDAQ Capital Market.

Overall results were positive. Sales for the quarter rose to $12.3 million, representing a 203% increase compared to the same period last year and a 53% increase over the previous quarter.

Gross profit for the quarter was $9.06 million, compared to $2.8 million in the same period last year, and its GAAP net income was $3.1 million. The company’s EBITDA for the quarter was $3.3 million, and its Adjusted EBITDA was $3.8 million. During the same quarter last year, the company’s EBITDA was $811,488, and its Adjusted EBITDA was 280,939.

Over the last quarter, the company increased its retail distribution channels by 11% to 1,968 stores nationwide. The company increased its cash position by $3.3 million in the second quarter, with approximately $6.4 million in unrestricted cash and $7.2 million in total cash.

On August 1, 2018, the company will hold a conference call, led by CV Sciences CEO Joseph Dowling, to provide an operational and financial summary of the second quarter and year-to-date results. The call begins at 4:15 PM EDT and will be available for live stream on the company’s website. For those unable to attend, a recording of the call will be made available for the following two weeks.

“CV Sciences delivered strong financial results for the second quarter of 2018, including our second consecutive quarter of profitability. We also reported record key performance metrics that include triple-digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison,” said CV Sciences CEO, Joseph Dowling, in a statement. “To date, we have been able to successfully execute our planned strategy of aggressively and consistently growing our sales distribution channels, further penetrate the market and increase our market share within the natural products industry…”


StaffStaffJuly 25, 2018
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6min7580

It’s time for your Daily Hit of cannabis financial news for July 25, 2018.

On the Site

New Mexico Sales

Though marijuana remains illegal in New Mexico for recreational use, the growth seen for medicinal purposes has surged in 2018, surpassing $50 million in sales, due in large part to a huge rise in patient enrollments.

According to data compiled by the New Mexico Department of Health (NMDOH), the 35 commercial cannabis producers in the state reported $51 million in sales in the first six months of the year. That marks a 27 percent increase year-over-year.

Nutritional High

On July 3, Nutritional High International Inc. (SPLIF) published a press release boasting Q3 revenues of $2,680,444 CAD, an increase of 408% over Q3 2017. That figure, however, differs from the Q3 financial statements Nutritional High filed with SEDAR. Nutritional High’s formal financial statements show lower 2018 Q3 earnings and the discrepancy remains unaccounted for. Nutritional High did not respond to a request for comment.

In March, Nutritional High acquired Calyx Brands Inc., a California-based distributor, for $3,433,784 CAD. In Q3, Calyx Brands posted sales $1,674,269 CAD, accounting for the majority of Nutritional High’s Q3 2018 revenue. This number is not misstated in Nutritional High’s July 3 press release.

In Other News

MedMen Enterprises

MedMen Enterprises Inc. (MMEN.CN) (MMNFF) and The Hacienda Company announced that MedMen has completed a strategic investment in The Hacienda Company, which owns Lowell Herb Co., a California-based cannabis brand known for its pack of pre-rolls called Lowell Smokes.

“Lowell shares a similar vision with MedMen that recognizes cannabis as a consumer product,” said Adam Bierman, MedMen CEO and co-founder. “As we continue to build and promote the MedMen retail experience, we believe that investing in top cannabis consumer brands like Lowell furthers our efforts to secure a loyal consumer base in this nascent industry while delivering growth and long-term value to our shareholders.”

Radient Technologies Inc.

Radient Technologies Inc.  (TSXV:RTI) has released its financial results for the fiscal year ended March 31, 2018. The filing read, “The Company has incurred significant losses and generated no significant revenues in its recent history. The Company had a cumulative deficit of $62,010,103 as of March 31, 2018. As a growing business, Radient will likely need more capital than it currently has. The continued operation of the Company will be dependent upon its ability to generate operating revenues and to procure additional financing.”

Still, the company’s cash balance as of March 31, 2018, was approximately $21.9 million, up from $11.4 million on March 31, 2017. Long-term debt of over $8.1 million as of March 31, 2017, was extinguished through a series of pay-downs and restructuring initiatives. The Company completed a private placement with Aurora Cannabis Inc. (ACBFF) for gross proceeds of $6.2 million. Aurora also converted its $2 million convertible debenture into 14.2 million units comprising of one common share and one common share purchase warrant

Novus Acquisition and Development, Corp.

Novus Acquisition and Development, Corp. ( NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., is a diversified insurance entity in health, liability, annuity and accident, and, the nation’s first carrier/aggregator offering a cannabis health plan announced continued expansion of its cannabis dispensary network that carries Novus Cannabis MedPlan in the U.S. The company has successfully added 13 dispensaries, cultivators, and manufacturers that offer anywhere from 30% to 50% on cannabis medications to the Novus Cannabis MedPlan patient member base.

CV Sciences Inc.

CV Sciences, Inc. (CVSI) announced unaudited second quarter 2018 revenue and selected business highlights for the quarter ended June 30, 2018. Second quarter 2018 revenue is expected to be $12.3 million, up 203% compared to the second quarter of 2017, and a 53% sequential increase over Q1 2018. Company increased retail store count to 1,968 natural and organic health food stores as of June 30, 2018, representing an 11.1% sequential increase over the company’s retail store count for the first quarter.


StaffStaffJune 27, 2018
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9min7230

It’s time for your Daily Hit of cannabis financial news for June 27, 2018.

On The Site

Canopy Growth Corporation

Canopy Growth Corporation (CGC) reported that its fourth-quarter revenue rose 55% to C$22.8 million versus last year’s C$14.7 million for the same time period. Still, the company recorded a net loss of C$61.5 million or C$0.31 per basic and diluted share, which was dramatically higher than last year’s net loss of $12.0 million, or $0.08 per basic and diluted share for the same time period.

Revenues jumped 95% in the fiscal year ending March 31, 2018, to C$77.9 million over revenue of C$39.9 million for last year. For the fiscal year 2018, Canopy sold 8,708 kilograms at an average price of C$8.24 per gram compared to 5,139 kilograms at an average price of C$7.40 per gram for the previous year, representing an increase of 70% and 11%, respectively.

Oklahoma Makes That 30

Oklahoma became the 30th state to legalize medical marijuana after voters approved State Question 788 on Tuesday. The measure was leading 56-44 with 85 percent of precincts reporting when the New York Times called the election. According to StateImpact Oklahoma, The Oklahoma State Department of Health has already begun drafting rules for a Medical Marijuana Control Program.

MPP said that State Question 788 is the fourth medical marijuana initiative in a row to win in a state that went for Donald Trump, and that number could grow to as many as six by the end of the year. They were approved in Arkansas, Florida, and North Dakota in 2016, and they will appear on ballots in Missouri and Utah this November.

In Other News

CV Sciences, Inc.

CV Sciences, Inc., (CVSI)  preeminent manufacturer and distributor of the industry-dominating brand of hemp extract products, PlusCBD Oil™, announced that it issued a letter to its shareholders, providing a business update. In the letter, CV Sciences said, “Sales for the first quarter of 2018 were $8.1 million, an increase of 114% compared to the first quarter of 2017 and a sequential quarterly
growth of 11.5% when compared to the fourth quarter of 2017. Our GAAP net income for the first quarter of 2018 totaled $619,000,
compared to a GAAP net loss of $3.8 million for the first quarter of 2017. This profitable quarter represents a $4.6 million improvement
compared to the first quarter of 2017. Our gross profit for the first quarter of 2018 was $5.6 million, an increase of 129% compared to
the first quarter of 2017. This represents a gross profit margin of nearly 69% for the first quarter of 2018, demonstrating our ability to
expand sales while maintaining strong margins.”

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (TGODF) has signed a letter of intent for a 50/50 joint venture (“JV”) with Queen Genetics/Knud Jepsen A/S based in Hinnerup, Denmark. The JV will initially consist of two facilities located within Knud Jepsen’s  1.3 million sq. ft. state-of-the-art automated greenhouses in Denmark. The approximately 200,000 square feet of advanced buildings to be dedicated to the JV were designed and engineered by Thomas Larssen of Aurora Larssen Projects Inc. and will provide an opportunity for TGOD to increase its total organic funded capacity by approximately 25,000 kgs. This will provide a consistent supply of high-quality organic cannabis grown in Europe, ready for the local European markets and increases TGOD’s funded capacity to 195,000 kgs.

 PotNetwork Holdings, Inc.

PotNetwork Holdings, Inc. (POTN)  is in the process of filing an amendment to its articles of incorporation with the state of Colorado for a name change from PotNetwork Holdings, Inc. to “BioTech Hemp, Inc.”. This name change reflects the company’s focus on Diamond CBD’s sales momentum and expanding product lines, which better reflects its current and future business strategy and industry scope. Following the filing with the state of Colorado, the company plans to file for a name listing and trading symbol change with FINRA.

As revenues year-to-date for 2018 already exceed $10 million, The company’s repositioning initiative is designed to signal to the market its mission to be a continually thriving, socially-responsible family of brands dedicated to strengthening its evolving leadership position in the distribution and marketing of CBD products. This filing follows the recent announcement that its Board of Directors has directed the company’s counsel to prepare a Form 10 to be filed with the Securities and Exchange Commission, to become a fully reporting issuer with the SEC.

CROP Infrastructure Corp.

CROP Infrastructure Corp. (CRXPF) entered into a joint venture agreement whereby CROP will own 30% under the name of Xhemplar to develop a 522,000 square foot project in the North-Eastern region of Italy. The joint venture and its principals have also been permitted to develop one of a few extraction and processing facilities currently present in the Country of Italy.

Novus Acquisition and Development Corp.

Novus Acquisition and Development Corp. (NDEV), through its wholly-owned subsidiary WCIG Insurance Services, Inc., announced its recently announced business collaboration is with cannabis technology company Enlighten.

Novus will utilize Enlighten’s interactive television technologies in a revenue sharing deal. Enlighten will place Novus’ message at the point of sales in 650 dispensaries across the country with advertising to engage and educate consumers on the Novus Cannabis MedPlan. When consumers are engaged Novus will get analytics of verified impressions from the consumer mobile devices for retargeting.

CLS Holdings USA, Inc.

CLS Holdings USA , Inc. (CLSH) closed its previously announced oversubscribed private placement offering of special warrants for aggregate gross proceeds of C$13,037,859 . Proceeds exceeded the originally announced target of C$10,000,000 due to high investor demand. Canaccord Genuity Corp. acted as the sole agent and sole bookrunner in connection with the Offering.

 


Jack SmithJack SmithMarch 29, 2018
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4min15690

CV Sciences (CVSI) saw a 126% jump in revenue in its just reported fourth-quarter, due in large part to its continued push into the organic cannabis market.

The company, which has offices in Las Vegas and San Diego, said fourth-quarter sales came in at $7.24 million, up 126 percent year over year. Gross profit also experienced a huge jump, rising 187 percent year-over-year to $5.21 million.

These numbers were boosted by a 57 percent year-over-year increase in the company’s retail channels, bringing its distribution size to 1,548 stores by the end of the year.

Full-year 2017 fiscal results also set records, with revenue, gross margin, adjusted EBITDA and cash flow all rising sharply, according to a statement.

“We ended 2017 with tremendous momentum by hitting record metrics for Q4 and an overall impressive and record year. Our operating performance further validates our ability to grow profitably and generate cash flow,” said CV Sciences CFO Joseph Dowling in a statement.

Dowling continued: “In every aspect, we set new financial performance records and laid the groundwork for continued profitable growth. On the drug development side, we continue to make steady progress in advancing CVSI-007 – our proprietary lead drug candidate – which addresses the multibillion-dollar smokeless tobacco use and addiction market.”

The company bills itself into two categories: a drug development company, focusing on developing and commercializing novel therapeutics and a consumer product company. It also has four subsidiaries, including US Hemp Oil, LLC, Plus CBD, LLC and CannaVest Europe, GmbH, all which operate in different locations around the globe and in the company’s two distinct categories.

CVSI-007 is an important part of the company’s future, with the synthetic-based cannabidiol to be potentially used for treating smokeless tobacco use and addiction.

CV Sciences said this market is a “multi-billion market with no currently FDA-approved drugs available to help patients.”

In addition to the more than 1,500 retail stores for its natural products, CV Sciences is going to continue to expand its retail sales channels and said its branded products are providing encouraging results, which “positions the [c]ompany as the #l selling hemp product line in the natural products industry.”

CV Sciences, which trades over-the-counter under the ticker symbol “CVSI,” jumped 11.2 percent in Thursday trading, closing at 50 cents prior to the announcement. Shares are down for the year, however, closing at 62 cents on Jan. 2.


William SumnerWilliam SumnerMarch 6, 2018
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mCig

mCig Inc. (MCIG) announced today that its subsidiary, NYAcres Inc. will conduct a joint venture with FarmOn! Foundation, which was just granted permission to participate in an Industrial Hemp Agricultural Research Pilot program through the New York State Department of Agriculture & Markets. The company expects that first harvests, which will be grown on an initial 40-acre plot, will yield approximately 1,000 to 1,500 plants per-acre and should generate approximately $4 million in revenue. “Our Joint Venture with FarmOn! Foundation, puts MCIG in the CBD business in a big way and opens the door for growing, researching, developing premium hemp and CBD oil,” said mCig CEO, Paul Rosenberg, in a statement.

MedReleaf

MedReleaf (LEAF) today entered into an exclusive licensing agreement with Woodstock Cannabis Company, allowing the company to utilize the famous Woodstock brand in the Canadian market. Per the agreement, the company will grow and sell cannabis strains under the Woodstock Brand. The agreement comes just in time for the 50th anniversary of the iconic Woodstock festival, which is set to take place on August 15, 2019. “Woodstock is known as one of the most significant cultural and societal events of the 20th Century…We’re thrilled to partner with Woodstock on this exciting initiative” said Darren Karasiuk, VP Strategy at MedReleaf, in a statement.

Organigram

Organigram Holdings (OGRMF) announced today that it has received approval from Health Canada for the remaining 13 grow rooms for the company’s planned Phase 2 expansion of its cannabis production facility; bringing the total number of grow rooms to 23. Harvests for the Phase 2 expansion are expected to take place in the third week of April.

Kush Bottles

KushBottles (KSHB) announced today that the company has been chosen as the exclusive distribution partner for FunkSac, LLC’s line of FunkGuard products. Under the agreement, Kush Bottles will distribute FunkGuard products across KushBottles’ national platform as well as to existing FunkSac customers. “We are pleased to be selected as FunkSac’s exclusive distribution partner and look forward to offering our customer base with an even greater range of brandable packaging and compliance solutions,” said Kush Bottles Chairman and CEO, Nicholas Kovacevich, in a statement.

CV Sciences

CV Sciences (CVSI) announced that it has paid its February and March 2018 installment obligations, as defined under its March 1, 2017, Convertible Promissory Note. Under the agreement, the company must pay the original principal of $770,000 in cash or converted shares. By paying their monthly installments in cash, the company was able to avoid stock dilution. The remaining balance of the company’s debt is $322,400.



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