Daily Hit Archives - Green Market Report

StaffStaffApril 17, 2019
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4min1150

It’s time for your Daily Hit of cannabis financial news for April 17, 2019.

On The Site

MariMed

MariMed Inc. (OTCQB: MRMD) reported its fourth-quarter and 2018 results. For the quarter ending December 31, 2018, revenues grew 118% to $3.44 million versus $1.58 million for the same time period in 2017. The company did not break out additional details for the quarter, opting instead to just release the details for the full year.

Full Year 2018

For the full year 2018, revenues grew to $11.85 million, up 95% over $6.07 million reported for 2017; Adjusted EBITDA grew 53% to $2.4M. The company delivered a net loss for the year of $13.6 million which they attributed to the result of non-cash amortization relating to equity compensation granted during the year ($13.97 million). Loss per share was $0.71 for the full year.

New Book

The cannabis consumer is typically characterized as a “stoner” – a lovable, slacker with no ambition wandering around in a high stupor. So, it’s pretty unusual to read the account of a sober millennial working in one of the biggest cannabis companies in the country.  Jackson D. Tilley’s full-time job is the vice president of strategic partnerships and communications for Organa Brands, a vape company that has sold over $100 million in cannabis products.  Somehow, he has found time to write this book Billion Dollar Dimebag: An Insider’s Account of America’s Legalish Cannabis Industry.

Managing Taxes

The key to the long-term success of every medical or adult-use cannabis business in California will be found in the management of tax liabilities. The usual reasons for long-term success in business – creativity, perseverance, experience, business acumen and connections – are important. The management of the direct and indirect impact of the multiple taxes to which California cannabis businesses are subject, and the preparation and maintenance of the financial records required for the management of these tax liabilities, will, however, prove to be the single most important factor in the success of a California cannabis business in the long-term.

In Other News

Acreage Holdings

Acreage Holdings (ACRG.U) stock rose over 9% on rumors of an acquisition by Canopy Growth (CGC). Both CEO’s Bruce Linton and Kevin Murphy are scheduled to be on CNBC tomorrow morning at 6:50am.

Medicine Man

Medicine Man Technologies, Inc. (OTCQX: MDCL) announced its financial results for the year ended December 31, 2018. The company generated operating revenues of $9,442,555, an increase of approximately 168%, compared to revenues of $3,529,584 in the year ended December 31, 2017. Revenues for the year ended 2018 included a one-time consideration for an intellectual property license agreement with Abba Medix Corp. (AMC), a wholly-owned subsidiary of publicly-traded Canada House Wellness Group, Inc. (CHV) for $1.15 million in cash.

Other income for 2018 increased to $573,875, compared to $145,222 in 2017. The increase in the company’s overall revenue was driven by an increase in new clients, and new states adopting cannabis legislation and initiatives. The company reported cost of goods and services totaling $6,865,045 during 2018. This is compared to $2,227,303 during the same time period in 2017. The increase is primarily due to an increase in overall product sales volume.

Gross profit during the year ended December 31, 2018, increased 208% to $6,865,045 from $2,227,303 for the year ended December 30, 2017. Operating expenses during 2018 decreased by 37% to $4,694,704 from $7,463,253 during 2017, due primarily to stock compensation.


StaffStaffApril 17, 2019
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7min1040

It’s time for your Daily Hit of cannabis financial news for April 16, 2019.

On The Site

Horizons

Horizons ETFs Management (Canada) Inc. said that it has filed its final prospectus to launch the Horizons US Marijuana Index ETF. Units of the exchange-traded fund have been conditionally approved for listing by the NEO Exchange and are slated to begin trading on April 18, 2019, under the ticker symbols HMUS (Canadian dollar units) and HMUS.U (U.S. dollar units).

The company said that HMUS will be the first ETF in the world that is solely focused on providing exposure to companies with significant business activities in, or significant exposure to, the United States marijuana or hemp industries. HMUS is an index  ETF, which seeks to replicate, to the extent possible, the performance of the US Marijuana Companies Index, net of expenses.

4/20

For the first time since Colorado legalized adult-use cannabis in 2014, the holiday 4/20 will fall on a Saturday. To celebrate the occasion, the cannabis data intelligence firm Headset has partnered with Nielsen to release a report detailing how consumers respond to the annual holiday.

“No matter how you participate in the cannabis industry, you should pay attention to 4/20,” reads the report. “It is consistently the single biggest day in cannabis each year, with at least double the sales of an average day.”

Influencers

Advertising in the cannabis industry is difficult. In most U.S. states where cannabis is legal, rules regarding cannabis advertising are complicated and extremely restrictive. For example, in California, businesses can only run ads in areas where “71.6 percent of the audience is reasonably expected to be 21 years of age or older.” The advertising landscape online is even far less forgiving. Most online ads platforms, such as Google Ads or Facebook Ads, explicitly prohibit the advertisement of cannabis products.

In the absence of reasonable advertising regulations for the cannabis industry, many business owners have turned to a new and rapidly growing form of advertisement: Social Media Influencers.

In Other News

NAC

National Access Cannabis Corp. (TSXV: META), the largest private retailer of recreational cannabis in Canada, today announced its financial results for the second quarter ended February 28, 2019. Q2-2019 total revenue of $16.2 million represents a 328% increase versus prior quarter total revenue. The company also delivered a net loss of $5.6 million for the quarter.

IIPR

Innovative Industrial Properties, Inc. (IIPR) closed on the acquisition of a five-property portfolio in southern California, which comprises approximately 102,000 square feet of industrial space. This acquisition marks IIPR’s second investment in California, following on IIP’s acquisition in Sacramento earlier this year.

The purchase price for the southern California portfolio was approximately $27.1 million in the aggregate. In addition to the purchase, IIPR entered into a long-term, triple-net lease at each property with a licensed operator, which intends to continue to operate the properties as licensed cannabis cultivation, manufacturing, processing and distribution facilities in accordance with California regulations.

Acreage

Acreage Holdings, Inc. (CSE: ACRG.U) and Form Factory, Inc. announced the closing of the merger that was previously announced on December 6, 2018 in which Acreage acquired all of the issued and outstanding shares of Form Factory.

According to the terms of the merger, Acreage issued 6.280 million subordinate voting shares at a deemed value of $25.00 per share.  The transaction brings Form Factory’s expertise as a one-stop-shop to develop, manufacture, and distribute cannabis products of any form factor to Acreage’s 19-state footprint of cannabis-based consumer and medical products. It sets the stage for Acreage to become the first national cannabis Consumer Packaged Goods (CPG) company, capable of creating and distributing predictable and scalable proprietary brands nationally, delivering those capabilities on a contract basis to other cannabis brands, and offering a turnkey cannabis industry solution to traditional non-cannabis CPG companies such as Nestle, Mars or Procter & Gamble.

iAnthus

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) announced that CBD For Life, a top-ranked, national CBD brand in the U.S. which the company agreed to acquire on March 29, 2019 has entered into an agreement with Urban Outfitters, a lifestyle-oriented general merchandise and consumer products store with 245 locations throughout the United States, Canada and Europe. The agreement places CBD For Life products in Urban Outfitters’ e-commerce platform and top 6 retail locations in the U.S. The CBD For Life products are expected to launch in the select Urban Outfitters stores later this month.

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) completed an all-cash acquisition of Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. The acquisition lays the foundation for Canopy Growth to expand its European production footprint into one of the most ideal growing regions in the world, complementing the Company’s existing 430,000 square foot licensed production site in Odense, Denmark, as well as its world-class ISO 13485 internationally certified Storz and Bickel facility in Tütlingen, Germany.


StaffStaffApril 15, 2019
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6min1160

It’s time for your Daily Hit of cannabis financial news for April 15, 2019

On The Site

Aphria

Aphria Inc. (TSX: APHA(NYSE: APHA) reported its results, for the third quarter ending February 28, 2019. The company delivered net revenue of $73.6 million up 240% from the prior quarter and 617% from the prior year. Still, the company reported a net loss of $108 million versus last year’s net income of $12 million for the same time period.

The company issued a separate press release and said it continues to recommend that Aphria shareholders reject the Green Growth Brands (GGB) Offer and to not tender Aphria shares to the GGB Offer. Simon said, “We plan to use the $89.0 million in proceeds from the transaction to fund our strategic global expansion initiatives. On behalf of our Board of Directors and management team, we continue to recommend that Aphria shareholders reject the GGB offer and do not tender their Aphria shares to the GGB offer.”

Organigram

Organigram Holdings Inc. (TSX: OGI) (OTCQX: OGRMF) announced its results for the second quarter ending February 28, 2019, with net revenue of $26.9 million, a 693% increase over last year’s net income $3.3 million. The net loss from continuing operations was $6.4 million or $(0.05) per share on a diluted basis versus $1.2 million net income, or $0.01 per share on a diluted basis for the same time period in the previous year.

The adjusted EBITDA of $13.3 million or 49% (of net revenue) was positive for the third consecutive quarter and increased from an adjusted EBITDA loss of $0.3 million in Q2-2018 driven by exponentially higher unit sales.

420 Sales

With 10 states having legalized recreational cannabis and 33 states having legalized medical cannabis, the prospects for increased legal cannabis sales in America this April 20, the original cannabis holiday, are greater than ever.

According to a recent report from Flowhub, a Colorado-based provider of point-of-sale software for dispensaries, with April 20 falling on a Saturday and new consumers continually entering the legal market, this year’s holiday will be the biggest sales day for retailers in 420 history.

Flowhub came to this conclusion by examining the growth of 420 from 2017 to 2018, with cannabis sales on April 20, 2018, growing by more than 30% compared to April 20, 2017.

In Other News

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) announced unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019. Across the Company’s operations in California, Nevada, New York, Arizona and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%1, compared to 53% in the previous quarter. The company is expected to post its fiscal 2019 third quarter results in May 2019.

Australis Capital Inc. (CSE: AUSA)(OTCQB: AUSAF) is pleased to announce the Company has been approved for DTC eligibility for its common shares traded on the OTCQB exchange under symbol “AUSAF”.

Marijuana Company of America Inc. (OTCQB: MCOA) announced its financial results for the year ended Dec. 31, 2018, as reported in its annual report on Form 10-K. Total revenues of hempSMART products were $252,135 for the year ended Dec. 31, 2018, as compared to $26,830 from the prior year, representing a significant 840% increase year over year. Net loss from operations decreased by 82% from $21,262,798 for the year ended Dec. 31, 2017, to $3,814,949 from the prior year.

INSYS Therapeutics (NASDAQ:INSY) President & CEO Saeed Motahari has resigned. CFO Andrew Long has been promoted to CEO effective immediately. Corporate Controller Andrece Housley has been promoted to CFO. Dr. Venkat Goskonda has been promoted to Chief Scientific Officer.

1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF), a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp-derived CBD wellness products, has executed an exclusive licensing agreement between Gotti’s Gold Ex LLC and Alternative Medicine Association LC, for the launch of Gotti’s Gold in Nevada, a new line of branded cannabis products in partnership with legendary hip-hop artist Kurupt.


StaffStaffApril 10, 2019
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7min1510

It’s time for your Daily Hit of cannabis financial news for April 10, 2018.

On The Site

Northern Swan

U.S. based investment fund Northern Swan Holdings has completed $58 million in Series D financing, bringing the total amount of capital raised to date to $96 million. The company will be using the funds to expand its existing Latin American operations including Clever Leaves, a leading vertically integrated licensed producer of medical cannabis in Colombia.

The company will use some of the funds to invest in new low-cost, large-scale cannabis cultivation and processing centers and to build out distribution channels and brands in Europe, Latin America and North America such as Cansativa GmbH, a German cannabis distribution and Lift & Co., a Canadian marketing and data company.

In Other News

MPX

MPX International Corporation  (CSE: MPXI; OTC: MPXOF) entered into a definitive agreement to purchase all outstanding shares of HolyWorld SA from Romain Gruner, Bernard Rappaz and Laurent Rappaport. This acquisition represents a major step in MPXI’s expansion strategy, adding a highly recognized brand to its portfolio, as well as one of the largest Western European outdoor cultivators of high-CBD flowers.

MPXI will acquire all of the HolyWeed Shares for a total purchase price of CHF10,000,000 (CDN$13,384,000 calculated using a deemed exchange rate of CDN$1.34 for each CHF1.00 for the purposes of this resolution which number shall be adjusted upwards or downwards to the extent necessary using the exchange rate posted at the close of business by the Bank of Canada five (5) days prior to closing) through the issuance of common shares of MPXI at price of CDN$0.53 per MPXI Share. MPXI will issue approximately 25,252,830 MPXI Shares to the shareholders of HolyWeed which number shall be adjusted upwards or downwards to the extent necessary using the exchange rate posted at the close of business by the Bank of Canada five (5) days prior to closing.

Ionic

Ionic Brands Corp., formerly Zara Resources Inc. (CSE: IONC) has entered into a Letter of Intent to acquire licensed cannabis volatile extraction and manufacturing assets of Kavry Management LLC.

Ionic BRANDS signed an LOI dated April 4, 2019, with Kavry subject to definitive documentation and for a purchase price of US$2,900,000 in cash and shares, with the shares valued based on the closing price of the Company’s shares immediately preceding the date of closing.

CB2

CB2 Insights  (CSE: CBII) closed its previously-announced acquisition of MedEval Clinic, LLC, a multi-state medical cannabis clinic group with operations in Arizona and Colorado.

“With the completion of this additional 2019 acquisition, CB2 continues to solidify our position as the leading group of multi-state medical cannabis evaluation and education centers in the US,” said Prad Sekar, CEO, CB2 Insights.  “We continue to focus on executing against our clinical consolidation strategy.  These acquisitions not only bring meaningful lift to our top line revenue, they are key to growing our data pool as more and more stakeholders are looking for clinically-validated, evidence-based data to assess the true efficacy of cannabis treatment globally.”

Quantum Capital

QUANTUM CAPITAL, INC. (PINKSHEETS: LTSN) is pleased to announce that it has entered into a Letter of Intent (“LOI”) to form a Joint Venture with Hemp Kings, Corp., a company with significant cannabis assets in Canada, with retail operations currently generating over $1 billion in cannabis sales.

Upon completing the transaction, Quantum will assist Hemp Kings, corp. in creating a network of branded cannabis products. Quantum’s digital business platform will also help Hemp Kings, corp. better interact with their customers, our business plan will boost Hemp Kings, Corp. sales.

In the coming weeks, Quantum will keep its shareholders and investment community completely informed of the entire process, watch for regular press releases about the Company’s progress.

WeedMD

WeedMD Inc. (TSX-V: WMD) (OTCQX: WDDMF) has closed on the purchase of an additional 60 acres of prime land located directly adjacent to its 98-acre Strathroy property. WeedMD’s outdoor grow now has the potential to increase to more than 100 acres. As previously announced, the company has applied to Health Canada for an amendment to its Strathroy licence to expand beyond its greenhouse cultivation with an initial 25-acre, low-cost, outdoor grow operation in 2019. Link to release here. An additional 25 acres had previously been planned to come online as Phase II in 2020. With today’s announcement, Phase II will increase to 75 acres for an overall outdoor cultivation of 100 acres online by 2020.

Nabis Holdings

Innovative Properties Inc. dba Nabis Holdings (CSE: NAB)(OTC: INNPF) completed its investments in strategically located properties that have municipal approvals for provisioning centres in Battle Creek and Constantine, both located in Michigan. The company is currently targeting to complete three additional provisioning center acquisitions in the coming weeks, bringing the total to seven provisioning centers in Michigan. Nabis is currently evaluating ten to fifteen additional municipally-approved locations in Michigan which will substantially increase the Company’s overall presence in the U.S. cannabis space.

Evio

Evio, Inc. (OTCQB: EVIO) has closed an initial tranche in its offering of Units in the Company, for an aggregate amount of $586,000. The bulk of the Offering was completed on a best efforts basis through the lead agent and bookrunner Dominick Capital Corporation of Toronto, Canada.


StaffStaffApril 8, 2019
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4min1510

It’s time for your Daily Hit of cannabis financial news for April 8, 2019.

On The Site

POSaBIT

Seattle-based fintech company, POSaBIT began trading this morning on the CSE under the ticker PBIT.  The company that serves cannabis retailers by delivering bitcoin-enabled payment processing and point-of-sale systems, with built-in compliance features customized to the state each retailer operates in.

For the nine months ending Sept. 30, 2018, the company generated $1.39 million in revenue, a 266% increase over the prior year for the same time period. The company said that pursuant to private placement financings undertaken in conjunction with the listing, POSaBIT generated gross proceeds of $1.3M. The company’s footprint includes California, Nevada, Oklahoma, Colorado, and Washington.

In Other News

1933 Industries

Cultivator and producer of cannabis flower 1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF) signed a licensing agreement dated April 3, 2019 between House of Hawk, LLC and the company’s subsidiary, Infused MFG, LLC for the launch of several co-branded CBD wellness products for a two-year term in North America.

Chris Rebentisch, USA COO and Founder of Infused stated, “It’s truly an honor to be working with Tony Hawk’s Birdhouse Skateboards™ brand and their incredible organization. Birdhouse team members Clive Dixon, Ben Raybourn, David Loy and Clint Walker will help support the new partnership via social media. The opportunity of offering our sports recovery products under a partnership with Hawk’s brand Birdhouse adds credence to our brand. Tony is an internationally recognized action sports figure and responsible for fuelling the growth of skateboarding as a professional sport.” Mr. Rebentisch added, “Infused recognizes that the action sports vertical is an underserved market. Our mission is to offer the best of breed recovery products in the market today and we look forward to working with Birdhouse in this endeavour.”

Mr. Tony Hawk remarked, “We’re excited to be a part of this new movement that is becoming more recognized as a healthy alternative to recovering from the aches and pains that we regularly incur in the action sports world. And we couldn’t be happier to join forces with Canna Hemp™, an established and trusted partner with an expertise in this market.”

Greenlane

Greenlane Holdings, Inc.  has commenced an initial public offering of 5,333,333 shares of its Class A common stock, of which Greenlane will be offering 4,666,666 shares and the selling stockholders will be offering 666,667 shares. In addition, the selling stockholders will also grant the underwriters a 30-day option to purchase up to an additional 800,000 shares. The price range for the initial public offering is currently estimated to be between $14.00 and $16.00 per share. Greenlane has applied to list its Class A common stock on the Nasdaq Global Market under the ticker symbol “GNLN.”

Cowen and Canaccord Genuity are acting as joint-lead bookrunners for the proposed offering. Ladenburg Thalmann & Co. Inc., Roth Capital Partners and Northland Capital Markets will act as co-managers for the proposed offering.


StaffStaffApril 3, 2019
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6min1960

It’s time for your Daily Hit of cannabis financial news for April 3, 2019.

On The Site

Aurora Cannabis

Aurora Cannabis Inc.  (TSX: ACB) (NYSE: ACB)  filed a preliminary short form base shelf prospectus $750 million during the 25 month period that the shelf prospectus is effective.

“Although we have no immediate intention of drawing capital against this Shelf Prospectus, we have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy,” said Michael Singer, Executive Chairman. “With our recent listing on the NYSE, our successful financing in January 2019 led by U.S. institutional investors, and as we work with Nelson Peltz to explore potential partnership opportunities, this filing is a natural evolution for our company as we rapidly mature into a global and profitable organization.”

High Times

Hightimes Holding Corporation has hired Kraig Fox as President and Chief Executive Officer. Fox will oversee the company’s portfolio of global media, events and licensed properties. Adam Levin, who has served as High Time’s CEO since its acquisition by Hightimes Holding Corp in 2017, will now serve as the company’s Executive Chairman.

The announcement of Mr. Fox comes as High Times is raising capital through its Regulation A+ funding initiatives in cannabis history in preparation for the public listing of its shares, expected later in 2019.

In Other News

MediPharm Labs Corp.

MediPharm Labs Corp. (LABS.V) (MLCPF) (MLZ.F) reported fourth-quarter 2018 revenue of C$10.2 million, commencing November 12th after receipt of sales license from Health Canada. Gross profit of C$4.0 million, gross Margin 39% and adjusted EBITDA(1) of C$2.1 million, Adjusted EBITDA(1) margin of 21%. The net loss for the quarter was C$3.5 million. The revenue for the full-year 2018 was C$10.2 million, but the net loss for the full-year 2018 was C$8.5 million.

2019 Year-to-Date Highlights

  • Executed Private Label Sales Agreements in place valued in excess of $85 million over the 15-month period from December 2018
  • Executed large Private Label cannabis oil sale for $35 million with an additional $13.5 million purchase option over 13-month period
  • Signed a 3-year Tolling Agreement with TerrAscend Corp.

Vibe Bioscience Ltd.

Vibe Bioscience Ltd. Announced that its common shares began trading on the Canadian Securities Exchange under the symbol “VIBE” at market opening on April 3, 2019.

Vibe also executed a purchase agreement to acquire all of the membership interests in the outstanding securities of EVR Managers, LLC, which holds a license for an adult use cannabis retail operation located in Redding, California.

Vibe Highlights

  • Two cash flow positive adult-use dispensaries in Sacramento and Stockton, California with two additional dispensaries set to open in the second half of 2019;
  • A cultivation site in Sacramento and a distribution center under development in Sacramento with a distributor temporary license which provides authority to distribute cannabis products on a state-wide basis;
  • A purchase agreement to acquire all of the outstanding securities of NGEV Inc., which holds a cannabis cultivation and equipment facility in Crescent City, California that has historically produced cannabis flower, clones and seeds.

AgraFlora Organics International Inc.

AgraFlora Organics International Inc. (CSE: AGRA) (OTC: PUFXF), and Liberty Leaf Holdings Ltd. (CSE: LIB) (OTC: LIBFF) together have made significant advancement with respect to gaining entry into the medical cannabis market in the European Union and, as such, have formed a jointly owned Greek company, AgraLeaf SA, so as to formally capitalize on the opportunity. AgraFlora and Liberty Leaf will own an equal equity stake in AgraLeaf with specific details regarding the obligations of the Companies to be outlined in a shareholder’s agreement.  AgraLeaf has established a team in Greece consisting of personnel with expertise in commercial horticulture, government affairs, legal and finance.

iCan

iCAN: Israel-Cannabis has issued a secured convertible loan in the amount of CAD $4,000,000 to a group of investors led by Plaza Capital.


StaffStaffApril 1, 2019
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5min1290

Its time for your Daily Hit of cannabis financial news for April 1, 2019.

On The Site

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)  is acquiring CannaRoyalty Corp. also known as Origin House (CSE: OH) (OTCQX: ORHOF) in a deal valued at C$1.1 billion or C$12.68 per Origin House Share (based on the Exchange Ratio and the closing price of Cresco Labs Shares on March 29). The deal looks to be the largest public company acquisition in the history of the U.S. cannabis industry.

The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.

GrowGeneration

GrowGeneration Corp. (OTCQX: GRWG) reported revenue of $29.0 million or 102% over 2017 revenues of $14.4 million. The company delivered a net loss of $5 million for 2018 a big increase over 2017’s net loss of $2.5 million. Gross profits were $6.4 million for 2018, as compared to $3.3 million for 2017, an increase of approximately $3.1 million or 97%. The company’s same-store sales, in the 4th quarter, increased by 12.4%.

Nutritional High

Nutritional High International Inc.  (CSE: EAT) (OTCQB: SPLIF) reported revenue of $6.1 million for the second quarter of 2019 from the sale of Cannabis related products in California primarily via its wholly owned distributor, Calyx Brands Inc. The company also reported a gross profit of $1.5 million, but a net loss of $6.8 million. At the end of January 31, 2019, the company has now recognized a trailing-twelve-month revenue from Cannabis sales of approximately $17.6 million.

1933 Industries

1933 Industries Inc.  (CSE: TGIF) (OTCQX: TGIFF) reported that for the second quarter FY2019, the company had consolidated revenues of $3,720,993, gross margin of $2,088,740 and a net loss of $2,926,981.

In Other News

WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) has entered into a credit facility with Bank of Montreal. Under the terms of the credit facility, BMO will provide WeedMD up to $39 million of secured debt financing at a rate of interest that is expected to average in the low-to-high 5% per annum range over a three-year term.

The facility consists of a $33.1 million term loan, a $3.0 million equipment term loan and a $3.0 million revolving credit facility, all of which mature in 2022. WeedMD may, at its discretion, repay the balance of the Loans without penalty at any time during the term. Concurrently, WeedMD has exercised its option to purchase the Health Canada-licensed, 98-acre Strathroy property from Perfect Pick Farms. The Strathroy purchase includes the licensed 610,000 sq. ft. state-of-the-art hybrid-greenhouse, more than 100,000 sq. ft. of ancillary structures and all other infrastructure and equipment as well the 50 acres of land upon which the Company intends to cultivate outdoor cannabis.

Helix TCS, Inc. (OTCQB: HLIX) filed its fourth quarter and fiscal year 2018 financial results Friday, March 29, 2019. Highlights of the fourth quarter compared to the same quarter a year ago included total revenues that increased 189% to $3.45 million and gross profits for the quarter was $1.37 million, a 40% gross margin.

Curaleaf Holdings, Inc. (CSE: CURA)(OTCQX: CURLF), a leading vertically integrated cannabis operator in the United States announced that it completed the acquisition of EC Investment Partners, LLC.

 


StaffStaffMarch 26, 2019
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5min1680

It’s time for your Daily Hit of cannabis financial news for March 26, 2019.

On The Site

Cronos

Cronos Group Inc. (CRON.TO) (CRON.TO) stock rose over 6% on Monday ahead of the company’s earnings but was falling in pre-market trading once the numbers were released.

The Canadian-based cannabis company reported net revenues of $5.6 million in the fourth quarter of 2018 versus $1.6 million for the fourth quarter of 2017, representing an increase of $4.0 million, or 248%. The increase in revenue was driven by shipments to the Canadian adult-use market and growth in cannabis oil revenue. The company did not report its net profit or loss for the quarter.

UK

The UK’s first specialist medicinal cannabis center opened earlier this month, charging £200 ($264) per appointment, and between £600 ($792) and £700 ($925) per month for treatment.

Patients at The Beeches, in Greater Manchester, will only be given medicinal marijuana on a case-by-case basis if staff are happy that they have exhausted all other possibilities with over the counter medicine.

U.N.

A key international vote on cannabis rescheduling may not be held until March 2020, as governments continue to push for more time to decide on downgrading marijuana to a less harmful category.

The United Nations Commission on Narcotic Drugs (CND) has been due to rule on recommendations by the World Health Organization (WHO) that cannabis be removed from the Schedule IV of the 1961 Single Convention on Narcotics Drugs.

Such a move would free cannabis from international treaty restrictions and kickstart a global boom, leaving nations free to pursue research without fear of sanction.

In Other News

Plus Products

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) provides its unaudited revenue estimate for the fiscal period ended December 31, 2018, of US$8.4 million. This unaudited revenue represents substantial growth of 684% when compared to fiscal 2017 revenues of US$1.1 million.

Revenue estimates for the fourth quarter of 2018 were $3.4 million, representing an approximately 32% anticipated increase above the third quarter of 2018 and 776% above the fourth quarter of 2017. The revenue growth was driven by sales of Plus Products’ concentrated brand portfolio of four full-time SKUs and one rotating seasonal.

The Company’s unaudited cash balance climbed to $22.9 million at the end of 2018, up from $0.3 million at the end of 2017 and $11.1 million as of September 30, 2018, prior to the initial public offering in October.

Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (FRA: 8CB), an emerging vertically integrated cannabis company focused on cultivation and cannabis-infused products, today announced its subsidiary Global shopCBD.com Inc. has closed private rounds of financing for aggregate proceeds of $8,865,849.15.  Cannara remains the majority shareholder of the U.S. based online e-commerce platform with an approximately 61% ownership position.

Halo

Halo Labs Inc. (OTC: AGEEF)  announced it has secured eligibility by The Depository Trust Company (DTC) for its shares on the OTC.

SOL Global

SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF)has acquired 3,396,049 common shares of Jones Soda in the open market. SOL Global’s total investment represents approximately 8.19% of the total issued and outstanding common shares of Jones Soda which, based on publicly available information, makes it the company’s largest stockholder. SOL Global has filed a Schedule 13D with the United States Securities and Exchange Commission describing its investment in Jones Soda.

GB Sciences

GB Sciences, Inc. (OTCQB: GBLX)  announced that The LSU Agricultural Center (AgCenter) received confirmation from the Louisiana Department of Agriculture and Forestry (LDAF) that GB Sciences Louisiana is deemed suitable for full-scale operations.


StaffStaffMarch 25, 2019
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10min2280

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

On The Site

New Jersey

A vote was planned in New Jersey for the legalization of adult use cannabis, but a lack of votes caused the legislation to be postponed until a later date – possibly November. The proposed legislation, which many expected to be passed today, would have allowed adults 21 and over to consumer, purchase and possess cannabis from licensed retailers.

Last week, the Senate Judiciary Committee and the Assembly Appropriations Committee voted in favor of legalization bills. NJ Advance Media was the first to report Senate President Stephen Sweeney (D) called off the vote. Apparently, it became clear the Senate — the upper house of the Democratic-controlled state Legislature — would remain a handful of votes shy of the minimum 21 needed for passage.

Cronos Group Earnings Preview

Cronos Group (NASDAQ: CRON), the company faces a critical earnings report for its fourth quarter. Although CRON stock has gained 70% this year, shares have traded flat since late January.

Not only that, the company has incurred heavy volatility heading into fourth-quarter earnings. Further, significant movement in the options market suggests that traders anticipate a big move. Considering that technical momentum has dried up for nearly two months and that analysts are skeptical of the sector’s production capabilities, it’s critical that CRON delivers the goods.

iAnthus & MPX

iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) is redeeming its outstandingconvertible debentures of MPX Luxembourg SARL, a wholly-owned subsidiary of iAnthus, in the aggregate principal amount of $32,257,804.07. The redemption date of the Debentures will be April 24, 2019. In a separate transaction, MPX International Corporation (CSE: MPXI)  closed its previously announced non-brokered private placement offering of units of the Company. Due to increased demand, the previously announced offering was increased from C$20 million (approximately $15 million) to C$26,905,162 (approximately $20.2 million). The offering consists of the issuance of 56,052,421 Units issued at a price of C$0.48 per Unit.

In Other News

The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) announced that effective today sales of certified-organic cannabis have started with national distribution to medical patients. The Growers’ Circle is a select group of patients across Canada now receiving TGOD’s first certified-organic flower. The Growers’ Circle launch is a limited production rollout of the company’s premium product, allowing TGOD to perfect its distribution ahead of its production ramp-up and scaled rollout this year. TGOD is now shipping its Unite Organic strain to over 200 medical patients across Canada.

Canopy Growth Corporation (TSX: WEED), (NYSE: CGC) received a cultivation license from Health Canada for its facility in Fredericton, New Brunswick. With this licensing, Canopy Growth predicts the facility will initially produce more than 5,000kg of cannabis annually, with first harvests expected to become available to the market within six months.

Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF)  received Florida Department of Health (DOH) approval to sell whole flower smokable products to patients in Florida, making it one of the first companies in the state to provide smokable medical marijuana in all of its dispensaries. The Company is awaiting DOH approval to provide pre-rolls to patients.

Helix TCS, Inc. (OTCQB: HLIX company BioTrackTHC, has been awarded a one-year contract extension with the State of Hawaii to continue providing the state’s medical cannabis traceability system through June 30, 2020. BioTrackTHC was awarded the Hawaii traceability contract in November of 2016 and launched Hawaii’s cannabis traceability system 72 days later, the first known government cannabis tracking system to be deployed in a FedRAMP authorized cloud-hosting environment. BioTrackTHC currently operates 9 government cannabis tracking systems across 7 states, Puerto Rico, and the city of Arcata, California. Last week, the company announced a 2-year extension for the state of Delaware’s government tracking contract.

Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) announced that it intends to expand into Florida.  Choom, through its wholly owned US subsidiary, Choom Holdings USA Inc., has signed a letter of intent to purchase a 95% equity interest in a Florida-based vertically-integrated cannabis applicant


StaffStaffMarch 20, 2019
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5min2710

It’s time for your Daily Hit of cannabis financial news for March 20, 2019.

On The Site

The Top 12 Cannabis MSO’s

Green Market Report has compiled a list of some of the largest MSO’s in the country. Many of the companies are in the middle of major acquisitions which haven’t technically closed, which makes ranking these companies difficult. These deals are being recognized for the most part and included in the company statistics. It’s also challenging to define which company is the largest as that depends on the metric being reviewed. Active states versus licensed states or operational dispensaries versus square footage of cultivation.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) reported its financial and operating results for the fourth quarter and full year ended December 31, 2018 after the market close on Wednesday. The fourth quarter total revenue of $32 million increased 49% sequentially and 408% over the 2017 fourth quarter. Curaleaf delivered a net loss of $16.5 million, a steep drop from the previous quarter’s loss of $33 million, but the company reported a gain of $600k in the fourth quarter of 2017.

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) signed a multi-year processing and extraction agreement HollyWeed Manufacturing & Extracts Inc. HollyWeed NorthCannabis Inc. is the parent company of HollyWeed Manufacturing & Extracts Inc., which is a female-led, LGBTQ2-positive company based in British Columbia that operates several subsidiaries specializing in the growth, manufacturing, licensing, and production of cannabis and other pharmaceutical grade products.

In Other News

Vireo Health

Vireo Health International, Inc., a multi-state cannabis company, listed on the Canadian Securities Exchange under the stock symbol, VREO. Vireo Health becomes the first multi-state medical cannabis company to go public this year. The company has grown to over 250 employees, operates in six states and manages a rapidly expanding national footprint of manufacturing facilities and retail dispensaries that will total 11 states year’s end. Vireo Health is one of the only physician-founded, physician-led cannabis grower/processors in the country.

Greenlane

Greenlane Holdings, Inc., a leading distributor of premium vaporization products and consumption accessories, announced that it has publicly filed a registration statement on Form S-1 with the Securities and Exchange Commission related to a proposed initial public offering of Class A common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Greenlane has applied to list its Class A common stock on the Nasdaq Global Market under the symbol “GNLN.”

DionyMed Brands Inc. 

DionyMed Brands Inc.  (CSE: DYME) signed a binding term sheet with MM Esperanza 2 LLC, doing business as “MMAC,” to acquire select MMAC assets, including the 1.83 acre Los Angeles cannabis campus that includes a dispensary storefront, distribution facility, manufacturing hub and direct-to-consumer fulfillment center. The acquisition includes all property, leaseholds, equipment and licenses for a purchase price of $19 million and enhances DionyMed’s brands distribution and direct-to-consumer footprint in Southern California.

Bangi

BANGI, Inc. (OTC: COBI), a diversified investment vehicle that acquires and leases specialized real estate assets, such as cannabis farms, announced that it expects its reporting status to be upgraded to “Current Information” on the OTC Pink Market, the highest level of the OTC Pink Market.  The Company expects to apply for a new ticker symbol with FINRA and corporate name change immediately following this expected upgrade.



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


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