Daily Hit Archives - Green Market Report

StaffStaffAugust 21, 2019
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4min950

It’s time for your Daily Hit of cannabis financial news for August 21, 2019.

On The Site

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) reported that its second-quarter revenue rose 253% to $29.9 million over last year in its unaudited financial results for the second quarter ending June 30, 2019. The revenue rose 42% sequentially. The company attributed the increase in revenue to new market expansion and continued growth in existing markets with a higher revenue generated in Pennsylvania, Illinois, and California.

Cresco Labs also delivered a net loss of $3.9 million versus last year’s net income of $1.6 million for the same period. The net loss was blamed on an income tax expense of $5.6 million, primarily driven by discrete tax items related to the legal close of the acquisitions of MedMar Inc. and PDI Medical.

IRS

IRS Updates CTR Exams – The IRS has recently provided interim guidance to clarify actions IRS Examiners must take to analyze and document Currency Transaction Report (CTR) data during an audit.  The Guidance, which is effective immediately, will be incorporated into IRM 4.10.4, Examination of Returns, Examinations of Income.

Prior to incorporation, IRM 4.10.4 provided very little guidance on when and how to use the Financial Crimes Enforcement Network’s (FinCEN) Currency Transaction Reports [See Structuring Rules ]. However, this new guidance assists examiners during an audit of a taxpayer’s returns and income.

In Other News

Indus Holdings

Indus Holdings, Inc. (CSE:INDS) announced its financial results for the fiscal second quarter ending June 30, 2019.  The company generated second quarter record revenue of $9.7 million, 183% year-over-year and 51% sequential growth. It added 87 new dispensaries during the quarter. Announced acquisitions of CBD brands Shredibles and Humble Flower Co. Entered Nevada and Oregon markets through its pending acquisition of W Vapes, a licensed multi-state manufacturer and distributor of cannabis products

Cansortium

Cansortium Inc. (CSE: TIUM) (OTCQB: CNTMF), a vertically-integrated, global provider of premium-quality medical cannabis operating under the Fluent brand, announced today that it will begin trading today on the OTCQB Venture Market under the ticker “CNTMF”.  This is an upgrade from the Company’s previous classification on the Pink Open Market.

Cansortium Chief Executive Officer Jose Hidalgo emphasized, “We are very pleased to begin trading on the OTCQB Venture Market less than five months after our initial public offering on the Canadian Securities Exchange, adding valuable visibility and additional liquidity for the benefit of our shareholders. We are intently focused on executing our growth strategy by expanding our cultivation capacity and dispensary platform in our home state of Florida and establishing our Fluent™ brand of cannabis products as a leader in each market where we choose to compete.”

ManifestSeven

ManifestSeven California’s first integrated omnichannel platform for legal cannabis, today announced it has acquired the Haven (formerly operating as ShowGrow) dispensary in Santa Ana, California.

“This acquisition represents the first dispensary in our B2C strategy, as unveiled last week under the Weden retail dispensary and delivery brand” The dispensary will be rebranded Weden Santa Ana to serve as the flagship location for Weden, M7’s new business-to-consumer brand that encompasses brick-and-mortar retail and delivery operations throughout the state, as supported by the 1-800-CANNABIS customer service center.


StaffStaffAugust 20, 2019
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7min1340

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

On The Site

iAnthus

Multi-state operator iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) said that it has entered into a senior secured term loan of up to $50 million from one or more investment funds managed by Torian Capital Partners. The loan will be doled out in two tranches of $25 million each with similar terms.

iAnthus said it will use the money for its expansion efforts in Florida and the company’s new Be. retail locations in Nevada, New Jersey and New York. The company is expected to report its second-quarter earnings on August 27.  Last month the company noted that its CBD For Life products will be sold in Dillards Department Stores.

BDS Analytics

Cannabis data company BDS Analytics announced that it closed on $7 million in new financing, led by KEY Investment PartnersAltitude Investment Management, and 7thirty, with participation from other investors. A part of the financing deal, Pete Karabas of KEY Investment Partners will be joining the board of directors. BDS said it will use the money to expand coverage of emerging cannabis markets and strengthen its operating infrastructure with investments in machine learning, marketing and sales, and strategic partnerships.

“As the global cannabis economy continues to expand, it is imperative that we’re able to scale alongside it to remain an indispensable asset for key decision-makers in the industry,” said Roy Bingham, CEO, and Founder of BDS Analytics. “We’re excited about this new round of funding, which will allow us to further enhance our GreenEdge platform and expand our capabilities to the entire addressable cannabinoid market.”

In Other News

Organigram

Organigram Holdings Inc. (NASDAQ: OGI) (TSX VENTURE: OGI) received final approval for the listing of its common shares on the Toronto Stock Exchange (“TSX”). Organigram’s common shares will commence trading on the TSX at the opening on Thursday, August 22, 2019, continuing to trade under the symbol OGI. To ensure continued and seamless trading for the Company’s shareholders and as a result of the graduation, there will be no further trading on the TSX Venture Exchange after Wednesday, August 21, 2019. Organigram’s common shares will be delisted from the TSX Venture Exchange at the commencement of trading on the TSX.

Empower Clinics

Empower Clinics  (CSE: CBDT) (OTC: EPWCF) a vertically integrated and growth-oriented CBD life sciences company, and a multi-state operator of medical health & wellness clinics in the U.S., announced that its common shares will begin trading on the OTCQB Venture Market at the opening of the market on August 20th, 2019 under the stock symbol (OTC: EPWCF). “Our listing on the OTCQB Venture Market in the United States complements Empower’s listings on the Canadian and Frankfurt Stock Exchanges, respectively, broadening our investment base as we accelerate our growth strategy in the global medical cannabis and wellness sectors,” said Steven McAuley, Empower CEO.  “This is a timely milestone, as we have a robust pipeline of activity tied to product development, business development, M&A and, overall company expansion.”

Acquired Sales Corp.

Acquired Sales Corp. (OTC Pink: AQSP) announced that it has signed a definitive merger agreement to acquire 100% of CBD LION LLC (www.CBDLION.com), Mundelein, Illinois, for consideration of $2 million in cash, plus 5 million shares of Acquired Sales Corp.’s common stock. Acquired Sales Corp. also announced that it has loaned $300,000 to CBD LION LLC that will be used as growth capital.


Debra BorchardtDebra BorchardtAugust 19, 2019
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6min1920

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

On The Site

MidAtlantic States

New Jersey May Renew Push to Legalize Marijuana in 2019

Recent comments from Governor Phil Murphy and Senate President Steve Sweeney suggest one final legislative effort to legalize marijuana in 2019.

“I think I’ve been consistent that I hoped we could have one more shot at this,” Murphy told reporters last week. “Getting something to happen sooner, if we have a real shot at that, I’d be all in. … Count me all in to try and work toward that.”

The New York legislature passed a decriminalization bill in June. Governor Andrew Cuomo signed the bill into law in late July. The law both expunges many past convictions for marijuana possession and reduces penalties in the future. Advocates initially proposed full legalization but shifted strategy after it became clear they lacked enough votes.

“It does do two good things,” said Emma Goodman, a staff attorney in Legal Aid Society’s special litigation unit. Goodman worked with legislators to lobby for legalization.

Florida’s Medical Marijuana Program Part 9

Through late July, the 2019 Cannabis Crusade saw daily cannabis-related news and a literal state of medical marijuana commotion. A timeline of Florida’s battle for solid ground has been outlined in depth throughout my previous articles.

While the strong Florida medical marijuana Crusaders marched forward, the state itself and the legislators who comprise the Rear Battalion lost some footing.

On July 11, 2019, a Florida Appellate Court ruled in the highly-publicized Florigrown lawsuit that the state’s vertical integration was unfair and unconstitutional.

Further explanation and clarity was offered by Beau R Whitney, Vice President and Senior Economist at New Frontier Data, with his insightful Florida Court Rules Vertical Integration Unconstitutional: So, What Now? :

In Other News

CannTrust

CannTrust Holdings Inc. (TSX: TRST)(NYSE: CTST) has received a notice from the Ontario Cannabis Store, the Crown corporation in charge of wholesale distribution of cannabis products to licensed cannabis retailers in Ontario and the operator of Ontario’s online recreational cannabis store, advising the company that the OCS has determined that some of CannTrust’s products sold to the OCS are Non-Conforming Products under the terms of the Master Cannabis Supply Agreement between the Company and the OCS has elected to return these products to the Company.  Under the terms of the Master Agreement, any product that does not comply with applicable law is considered to be Non-Conforming Product and the OCS may elect to exercise its right, among others, to return such product to the Company at the Company’s expense.

The products listed in the OCS return notice constitute all or substantially all of the Company’s products currently held at the OCS and are valued at approximately $2.9 million in the aggregate.  The Company intends to fully perform its obligations under the Master Agreement.  The OCS operates independently of Health Canada.  Health Canada has not ordered a recall in respect of any of the Company’s products.

Kona Gold

Kona Gold Solutions, Inc. (OTC Pink: KGKG) said it has beat Second Quarter projected revenue of $400,000 by $329,000 on revenue of $729,000. Sales from the Company’s Kona Gold Hemp Energy Drinks and HighDrate CBD Energy Waters beat Company estimates by a huge margin.

Valens GroWorks

Valens GroWorks Corp. (TSXV: VGW) (OTCQX: VGWCF)  has qualified to trade on the OTCQX® Best Market in the U.S. The Company’s shares will begin trading, at market open today, on OTCQX under the ticker symbol “VGWCF”. Quotes and market information are now available at: www.otcmarkets.com/stock/VGWCF/quote

“We are excited to begin trading on the OTCQX Best Market.  Access to trading on OTCQX, combined with the current work underway to finalize the Company’s DTC eligibility, will increase Valens’ presence with United States investors, providing increased liquidity to the Company’s growing shareholder base,” says Tyler Robson, Valens CEO.


Debra BorchardtDebra BorchardtAugust 12, 2019
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8min2110

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

On The Site

CannTrust

After the market closed on Friday, CannTrust Holdings Inc. (NYSE: CTST)said it received a report from Health Canada telling the company that “Its manufacturing facility in Vaughan, Ontario has been rated non-compliant with certain regulations.”CannTrust stock is dropping over 25% to lately trade at roughly $2.26 in pre-market trading as shareholders learn about the continuing problems with the facilities causing more uncertainty.

The news that the company’s facility has failed a recent inspection is troubling because it was supposed to have addressed problems from previous inspections in which the company was found to be growing cannabis in rooms that hadn’t received licenses.  Health Canada has said that it is currently unable to provide any guidance about the timing or content of its decisions regarding CannTrust.

Saving Money

On August 6th we published an article that illustrated the savings for consumers and additional profits for cultivators that could be produced through the use of a properly organized Cannabis Cooperative Association (“CCA”). This article describes the savings for consumers and the additional profits for cultivators in the movement of cannabis in the form of extracted oil.

As we have said on multiple occasions, a CCA is the most financially efficient structure for engaging in business in California’s cannabis industry. The utilization of a CCA for the movement of cannabis as extracted oil produces even greater price reductions for consumers and increased profits for cultivators than with flower. This occurs because more costs are incurred between the cultivator and the consumer in the movement of extracted oil than in the movement of flower.

Novel?

It was announced on January 2019 that the European Food Safety Association, EFSA is about to make a decision in order to classify CBD oil and other CBD products as a novel food. This decision was announced at the Novel Food Commission meeting which was held in Brussels in 2016. This led to a final imminent decision very soon and EFSA considered CBD products as Novel Food.

In recent times, there has been tremendous growth in food products available in the market which eventually included Cannabidiol. And, according to reports, it is clear that the European CBD Market is going to encounter a boom in the near future. Eventually, the regulators started taking a closer look at the CBD products and oil available in the European market.

In Other News

MediPharm Labs

MediPharm Labs (MEDIF) reported that its second-quarter revenue was $31.5 million, a 43% increase over Q1 2019, reflecting Canadian cannabis extraction-only industry and the ramp-up of new committed contracts. Gross Profit was $11.3 million, a 65% increase over Q1 2019, while Gross Margin was 36% compared to 31% in Q1 2019, reflecting increased production and production efficiency that continues to improve as the Company realizes economies of scale. Adjusted EBITDA was $7.7 million, 79% higher than Q1 2019, while Adjusted EBITDA margin was 24% compared to 20% in Q1 2019. Net income before tax was $4.1 million compared to a net loss of $0.3 million in Q1 2019

MariMed

MariMed (MRMD) report that its revenues for the second quarter of 2019 were $25.7 million, up 774% compared to $2.9 million in the same year-ago quarter. The increase in revenue was primarily the result of hemp seeds sales totaling $25.2 million dollars, of which $22.0 million was recognized in the quarter. The remaining revenue is expected to be recognized in the third and fourth quarters of 2019 upon payment from the buyer. Revenues excluding the hemp seed sales increased 24% to $3.7 million versus the year-ago quarter.

Gross profit for the second quarter of 2019 was $8.9 million or 34.8% of revenues, up 341.1% from $2.0 million or 68.9% of revenues in the same quarter from a year ago. Gross profit in MariMed’s core businesses as a percentage of revenues increased to 72.4% in the second quarter of 2019 from 68.9% in the year-ago quarter. Net income for the second quarter of 2019 was $4.7 million or $0.02 per fully diluted share, improving from a net loss of $393,000 or $(0.00) per basic share in the year-ago quarter.

Medicine Man Tech

Medicine Man Technologies, Inc. (OTCQX: MDCL) announced that it has entered into a binding term sheet to acquire Colorado-based Dabble Extracts, an award-winning cannabis concentrate company that specializes in processing medical and recreational marijuana into premium-grade extracts.

Under the terms of the term sheet, the company will pay $3,750,000 for Dabble Extracts. The purchase price will consist of $750,000 in cash and 996,678 shares of common stock priced at $3.01/share, which is the average closing price of the Company’s stock for the five trading days prior to August 6, 2019. The terms can also be referenced in the 8-K, which outlines the closing conditions. The obligations of the Company and Dabble Extracts under the term sheet are conditioned upon the satisfaction of mutual waiver of certain conditions, including regulatory approval.

Nabis

Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF has entered into a Definitive Agreement for the acquisition of 100% of the membership units of a licensed medical marijuana business in the state of Arizona.

The Asset, licensed under the provisions of the Arizona Medical Marijuana Act, operates a dispensary in Phoenix, Arizona. The dispensary in Phoenix has been operating since 2015 with proprietary branded products and wholesale operations, including an established distribution network serving more than 50% of the dispensaries in Arizona.

The audited sales for 2017 and 2018 were USD $7.4 million and $8.7 million respectively.  2019 unaudited revenue is on pace for sales of USD $9 million. The dispensary specializes in top-tier flower, vape pens, concentrates, edibles, tinctures, and CBD products.

 


StaffStaffAugust 6, 2019
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8min2200

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.


Debra BorchardtDebra BorchardtAugust 5, 2019
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9min1770

It’s time for your Daily Hit of cannabis financial news for August 5, 2019.

On The Site

The GMR Index

The Green Market Report Cannabis Company Index started 2019 on a high note as the first quarter jumped 40%, but the air came out of the market during the second quarter and the entire group took a tumble. Many of the cannabis stocks slid as much as 20%. This happened despite the number of large deals announced during the quarter that set the stage for massive consolidation.

The Green Market Report Index fell 21% in the second quarter but is still up by 19% for the six months of 2019. To get an idea of how poorly the cannabis stocks performed, the S&P 500 rose by 4.3% in the second quarter. Worries over the trade war with China did dampen the broader market and funds are flowing more into the bond market, but the equities still managed to squeak out a positive performance.

Henry’s Original

California-based cannabis company Henry’s Original (Henry’s) closed on a Series B investment led by New York-based private equity firm Merida Capital Partners. Henry’s said it plans on using the money to expand its cultivation, processing, sales and marketing operations.

Henry’s has created a reputation for Clean Green-certified flower and pre-roll products that are cultivated entirely in Mendocino County, California. The company stated that it holds thirteen state licenses including a nursery, cultivation, processing, distribution and a retail dispensary license. The company said it has more than 100,000 square feet of cultivation in California.

In Other News

Colorado

Colorado Department of Revenue’s Marijuana Enforcement Division (MED) released its 2018 annual update for the fifth straight year. The update provides an overview of Colorado’s legal marijuana industry using data taken directly from the state’s seed-to-sale marijuana inventory tracking system.

  • The adult-use market accounted for 66% of the total pounds of marijuana flower sold to consumers in 2018, and accounted for 86% of the total units of edibles sold to consumers.
  • Adult-use plants accounted for approximately 75% of the total plants cultivated in Colorado during the months of July to December.
  • An average of 1,316 new occupational licenses were issued each month. Approximately 30% of the employee licenses that expired in 2018 were renewed.

CannAcubed

Asia’s fastest growing ‘Cannabis’ company – ‘CannAcubed Pte Ltd’ delivered its first CBD supply order to one of Hong Kong’s most respected publicly listed pharmaceutical Companies – ‘Sanai Health Industry Group Company Limited’. An undisclosed volume of pure pharmaceutical grade 99.99% CBD isolate was successfully delivered to Sanai’s Head office in HK last week, with the 2 parties having already signed an exclusive supply deal between them several months prior.

Sanai Health Industry Group Company Limited is a listed company trading in the Hong Kong Stock Exchange (Stock code: 1889.hk).  The Group provides a range of comprehensive products and services across the health care industry.  In mainland China, the Group owns a GMP standard pharmaceutical plant, and maintain an extensive distribution network for pharmaceutical products nationwide.  Sanai Health also owns a genetic testing laboratory in Hong Kong and is heavily engaged in the cannabidiol (CBD) business.

MTrac

Global Payout Inc. (OTCPink: GOHED) and its wholly-owned subsidiary MTrac Tech Corporation are pleased to announce the launch of the MTrac payment platform in Louisiana’s newly operational medical cannabis industry. This launch is unique in that it is the first state in which the MTrac system will be deployed at every level of the supply chain at the moment the market goes live, which has officially been announced as this Tuesday, August 6, 2019.


William SumnerWilliam SumnerJuly 31, 2019
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4min1820

It’s time for your Daily Hit of cannabis financial news for July 31, 2019.

On the Site

Brightfield Group Names Top 5 CBD Companies

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…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…

TILT Holdings

Following the market close and at the end of the evening on Tuesday, TILT Holdings Inc.  (CSE: TILT) (OTCQB: SVVTF) said that it refiled amended and restated management’s discussion and analysis for the quarters and year ended December 31, 2018, and for the three month period ended March 31, 2019, and 2018  (the YE 2018 MD&A and the Q1 2019 MD&A together.  The documents were prepared following a continuous disclosure review by the British Columbia Securities Commission of the company’s disclosure records.

CannTrust

Following the disastrous revelation that the company began growing cannabis plants in grow rooms without licenses, CannTrust Holdings Inc. (TSX: TRST)(NYSE: CTST) said that its special committee has retained Greenhill & Co. Canada Ltd. as the Special Committee’s financial advisor, to assist in a review of strategic alternatives. Those options include a sale of the company, a merger or changes to the company’s strategy. The interim CEO has said the talks are happening at only a conversation level at this time.

In Other News

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV,) (OTCQX: HRVSF) announced that it has entered a term sheet for a secure term loan of up to $225 million. The loan comes from an investment fund managed by Torian Capital Partners, and will be made available to Harvest in three tranches of $75 million. Harvest will use the proceeds from the loan to fund expansion initiatives. “Harvest is in a strong financial position in the cannabis industry and this growth capital, which we believe is provided at an attractive financing cost will enable us to deliver on our commitment to enhance shareholder value,” said Steve White, CEO of Harvest. “With greater financial flexibility, we are better equipped to execute our strategy to aggressively expand our retail and wholesale footprint across the U.S. into key markets, while seeking to build and acquire brands for broad distribution,” White concluded.


StaffStaffJuly 30, 2019
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9min1700

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

On The Site

NY State

On July 29, 2019, New York Gov. Andrew Cuomo signed into law a measure that reduces the penalties for cannabis possession.

Although New York decriminalized the possession of 23 grams or less of cannabis in 1977, tens of thousands of New Yorkers have still found themselves arrested and charged with possessing small amounts of cannabis. Between 2008 and 2017, approximately 360,000 people have been arrested for cannabis possession, the majority of which have been persons of color.

Though the majority of New York residents support cannabis legalization, the state legislature failed this year to pass a full-legalization bill. The primary reason for the bill’s failure was to due to disagreements over diversity requirements for licensees. To many, the recently passed decriminalization bill is seen as a stop-gap measure while the legislature works out the details of full legalization.

SOL Global

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF)  released its financial results for the year ending March 31, 2019 with net income of $94.9 million or $2.30 per diluted share.

Most of the income was based on a September 2018 sale of its LATAM investment to Aphria. The fair market value of the transaction was $297 million and the cost related to the investment was $93 million leaving a gain on the sale of $204 million. The company disclosed that it was aware of two legal actions relating to the disposal of the LATAM assets but noted that no amounts have been accrued in the financial statements. SOL Global almost doubled its payroll costs going from $6.7 million in 2018 to $13.3 million in 2019.

True Leaf

Pet hemp brand True Leaf Brands Inc.  (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) announced its financial results for the fiscal year ending March 31, 2019, including revenues of $2.3 million all reported in Canadian dollars. This was a 65% increase over the previous fiscal year and a 54% increase of fourth-quarter sales year over year, from $386,733 to $595,261.

Revenue growth was driven primarily by the increasing number of top retailers selling True Leaf Pet products, which are now in more than 3,500 stores across North America and Europe, including at Pet Supplies Plus, Pets Corner (U.K.), Das Futterhaus (Germany), and PetSmart (Canada) locations. The company’s European operations contributed $412,551 of the total revenue for this annual period, a 148% increase compared to $166,320 the prior year.

In Other News

Choom (CSE: CHOO)(OTCQB: CHOOF), an emerging adult use cannabis company that has secured one of the largest retail networks in Canada, appointed Corey Gillon as President, effective August 26th, 2019. Gillon joins the company as a seasoned global retail executive to strengthen Choom’s management team as it prepares for rapid growth within the Canadian cannabis retail market.

Alternate Health Corp., (CSE:AHG) (OTCQB:AHGIF), an international leader in CBD extraction, product development and distribution, announced today that the company generated $1.9 million in Q2 revenue and a net loss of $2 million. Alternate Health expects an increase in revenue in Q3, since the quarter will include the full three-month period of Blaine Labs revenue. The Company also anticipates stronger results now that the agreement has closed, and the Company is not distracted with negotiation. Management can focus resources directly on generating revenues and launching new products.

Beleave Inc. (CSE: BE) (OTCQX: BLEVF) announced that it expects to file its audited annual financial statements and management’s discussion and analysis for the twelve months ended March 31, 2019, which were required to be filed by July 29, 2019, in the next thirty days

Rapid Dose Therapeutics Corp. (CSE: DOSE) today reported its financial results for the first quarter of fiscal 2020, which ended on May 31, 2019. The company had revenue of approximately $16 thousand and net losses of $3 million.

C21 Investments Inc. (CSE: CXXI)(OTC: CXXIF) today announced that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company, under the Company’s symbol CXXIF


Debra BorchardtDebra BorchardtJuly 29, 2019
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4min2520

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

On The Site

Nextleaf Solutions
Extraction technology company Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) said that its common shares will begin trading today on the OTCQB Market. Nextleaf will trade on the OTCQB under the symbol “OILFF” and the company’s common shares will continue to trade on the Canadian Securities Exchange under the symbol “OILS”. Nextleaf owns a portfolio of issued and pending patents pertaining to the company’s unique, industrial-scale process of extraction and purification of cannabinoids.

CannBioRx
Special Purpose Acquisition Company (SPAC) KBL Merger Corp. IV (NASDAQ: KBLM) signed a definitive agreement for the merger of a wholly-owned subsidiary of KBLM with CannBioRx Life Sciences Corp., a drug development company focused on treating inflammatory diseases. It began trading last Friday as a NASDAQ-listed cannabis biotech.

Fake CBD
Hundreds of people have been benefited from using Cannabidiol (CBD) – a substance scientifically proven to be safe for human consumption – even for children!
It not only has a wide range of therapeutic benefits but also has been useful for treating numerous serious ailments and disorders. However, not all products touted as “natural CBD oil” are actually as natural they claim to be.

In Other News

SOL Global Investments Corp. (SOL.CN) (SOLCF) has purchased an additional 16,766,250 common shares in the capital of HeavenlyRx Ltd. at a price of $0.40 for an aggregate subscription amount of CAD$23,909,000.
The subscription is part of a larger private offering by HeavenlyRx of Heavenly Shares. As a result of this subscription, SOL Global now holds 44.53% of the issued and outstanding Heavenly Shares and the other shareholders of Heavenly Rx collectively hold the remaining 55.47%. The Heavenly Shares are subject to an indefinite hold period under applicable Canadian securities laws.

Radient Technologies Inc. (TSX Venture: RTI)(OTCQX: RDDTF) has issued an aggregate of 93,151 common shares to a third-party consultant for services provided during the quarter ended June 30, 2019, pursuant to the shares for service agreement previously approved by the TSX Venture Exchange. The common shares were issued at the TSX Venture Exchange 15 day VWAP share price of CAD $0.87.

Iconic Northern California cannabis company Harborside Inc. (CSE: HBOR) has appointed Mattio Communications as its investor relations advisors. Mattio is a New York-based communications firm which provides public and private cannabis companies with an array of services designed to maximize shareholder value through customized strategic investor relations programs (see https://www.mattio.com/). Harborside has also engaged Mattio to provide media and public relations support in an effort to build awareness of the Harborside brand and to capitalize on the company’s heritage as one of the oldest, largest and most respected cannabis retailers in the world.


Debra BorchardtDebra BorchardtJuly 22, 2019
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It’s time for your Daily Hit of cannabis financial news for July 22, 2019.

On The Site

The Flowr Corp.

The Flowr Corp.  (TSXV: FLWR.V) was originally thought to be listing shares last week on the NASDAQ Marketplace, but that was shelved. Instead, the company announced on Monday that it agreed to sell 10,610,000 units of the company at a price of C$4.10 per unit for approximately C$43,501,000 in proceeds.

The underwriters were led by GMP Securities L.P. The Flowr Corp. also agreed to an over-allotment option to purchase and additional 1,591,500 shares, which would bring in an additional C$6,525,150 in gross proceeds. If that happens, the gross proceeds will be C$50,026,150. The deal is expected to close on August 8, 2019.

Senate

Next week, the Senate will be holding a hearing on July 23 by the Committee on Banking, Housing and Urban Affairs. The Senate is making a move following a House cannabis banking bill that cleared that chamber’s Financial Services Committee with a bipartisan vote in March. Readers can follow the action on that bill for free on the Green Market Report under the Legislation tab.

That piece of legislation now has 206 cosponsors, almost half of the House while the Senate legislation has only 32 out of 100 senators signed on. The conservative politicians would prefer to stand down while cannabis is still federally illegal, but supporters of the legislation argue that forcing the industry to a cash system encourages theft and diversion.

Virginia

Under a new policy announced by the Northam Administration, the Commonwealth of Virginia will soon officially authorize hemp processors to produce hemp extracts for human consumption.

For months, Virginia hemp farmers and processors have been operating under a cloud of regulatory uncertainty despite the enactment of legislation last March authorizing commercial hemp production, including extracts, in Virginia.

On July 16, the Virginia Department of Agriculture and Consumer Services (VDACS)announced that Governor Northan has directed VDACS “to treat hemp-derived extracts intended for human consumption as approved food additives and to place qualifying Registered Industrial Hemp Processors under food safety inspection so that inspected and approved processors may manufacture a hemp-derived extract intended for human consumption.”

In Other News

CannTrust Holdings Inc. (TSX: TRST)( NYSE: CTST) announced that as a result of months of discussions, CannTrust has agreed to waive the exclusivity provision under the Brokerage Agreement between CannTrust and Kindred Partners Inc. It is expected that this revised arrangement will over time allow CannTrust to reduce the expenditures incurred by CannTrust under the Brokerage Agreement.



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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