Daily Hit Archives - Green Market Report

StaffStaffJune 17, 2019
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8min1030

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

On The Site

Akerna Approved For Nasdaq

Today MTech Acquisition Corp. and MJ Freeway LLC announced the completion of their merger to form the Akerna Corp. MTech Acquisition Corp. (NASDAQ: MTEC), the first US-listed Special Purpose Acquisition Company (SPAC) focused on acquiring a business ancillary to the cannabis industry, and MJ Freeway, a leading seed-to-sale regulatory compliance technology provider and developer of the cannabis industry’s first enterprise resource planning (ERP) platform, has now become the first compliance technology company in the cannabis space to be traded on Nasdaq. Jessica Billingsley also becomes the first female CEO from the cannabis industry to lead a company that will trade on the exchange.

Colorado

“It’s crazy to think how much money states are flushing down the toilet by keeping marijuana in an illegal market,” said Mason Tvert, VP of Communications at Vicente Sederberg, LLP upon the release of a report that detailed how the over $1.2 billion raised in cannabis tax revenue has helped the state thrive.

According to the report released this week from Vicente Sederberg, LLP, since regulating cannabis for adult use in 2014, the Colorado government has collected more than $1 billion in cannabis-related taxes and fees, which have gone into local and state improvement programs.

Breath of Life

Israeli medical cannabis producer Breath of Life International Ltd. (BOL) cut its valuation for a pending Toronto Stock Exchange initial public offering by about 17%. According to a Canadian regulatory filing on June 14, the company is seeking to list 14% of its shares at a fully allotted valuation of CAD 1.02 billion (USD 827 million), compared to a previous valuation estimate of about $1.19 billion, following its May 23, 2019 prospectus.

Breath of Life produces medical cannabis and cannabis products — including 99%-pure cannabinoids — distributed primarily through pharmacies. The company currently supplies 48 pharmacies from its single facility in the southern Israel kibbutz of Revadim. It is targeting export markets in the E.U., Canada and Australia.

Amersterdam

The Netherlands’ on-off love affair with cannabis has taken another twist as three of its largest cities have backed out of a government experiment to end the legal grey areas that exist around the country’s famous coffee shops.

The weed experiment, or Wietexperiment, would allow 10 licensed producers to legally grow and distribute cannabis to Netherlands coffeeshops, which would then sell and serve their customers without fear of sanction.

However, Amsterdam, Rotterdam and The Hague have all dismissed the plans and pulled out of the project, leaving just Utrecht to sign up. Despite their willingness to go ahead, officials in Utrecht have also complained of the plan to force all of its coffee shops to take part, however.

In Other News

Probiotic

Probiotic Holdings, LLC and its subsidiaries Proviera Biotech, LLC and SCD Probiotics announced closing an additional $6 million investment. This includes UMB Bank providing a credit facility and AltCap providing financing through the use of federal New Markets Tax Credits that were purchased by U.S. Bank to facilitate debt financing. The latest round of financing brings the total to $9.3 million since January 2019.

“Through strategic capital and industry partnerships over two decades in business, Probiotic Holdings has developed a broad range of cost-effective bio-based products,” said Probiotic Holdings CEO Matt Wood. “Our cutting-edge technology enables us to produce fermentation products from renewable resources that ultimately perform better and are healthier for people and the planet than traditional petrochemicals.”

Valens

Valens GroWorks Corp. (CSE: VGW) (OTC: VGWCF) received conditional approval to list the common shares and warrants of the Company on the TSX Venture Exchange as a Tier 1 life sciences issuer. The listing is subject to the company fulfilling certain requirements of the TSXV in accordance with the terms of its conditional approval letter dated June 14, 2019.

Wildflower

“Wildflower Brands Inc. (CSE: SUN, OTC: WLDFF)  announced that it has received and fulfilled an opening purchase order from Dillard’s department stores that will place Wildflower wellness products in Dillard’s stores across the US.”

“Wildflower’s premium hemp CBD infused products can now be seen throughout 292 Dillard’s locations across the U.S. and the company’s retail presence throughout the country continues to expand. Rooted in transparency and best practices, Wildflower is looking forward to entering new key markets such as Florida and Texas to educate new consumers on salable products in the region. Wildflower has received subsequent purchase orders from Dillard’s and is fulfilling orders as they are received.”

Golden Leaf

Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF) announced that the company’s Board of Directors has appointed John Varghese, presently a Director of Golden Leaf, to succeed Karyn Barsa as Interim President and CEO of the Company and lead the Company through a strategic assessment of its management and operations. Ms. Barsa is no longer with the company. Mr. Varghese is mandated to lead the search for a new CEO and a new CFO immediately.  Company Controller Jason Benedict will serve as Interim CFO until a qualified replacement has been hired by the company.

Choom

Choom (CSE: CHOO)(OTCQB: CHOOF) announced that Choom Niagara, the first legal, adult use cannabis store to operate in Niagara Falls, ON has produced over $49,000 in sales on its opening day.”

“We are really happy with the turnout we had for Choom Niagara’s opening day.” states Chris Bogart, President and CEO of Choom “We’ve had a lot of support from the local community, and we’re excited to bring Choom to Niagara Falls. The feedback from our customers has been fantastic, and that is a testament to our dedicated staff and in-store experience.  Doing over $49,000 in sales on the first day of operation is a great milestone for us and our team who have worked so hard to get where we are today.”


StaffStaffJune 11, 2019
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6min1380

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

On the Site

HempFusion

US hemp-based CBD company HempFusion has a distribution with over 3,400 retailers and is now partnering with RADD Capital to advise the company on strategic fundraising initiatives including multiple staged private financings and a future Canadian Initial Public Offering.

The company is FDA compliant and one of two companies with pending Self-Affirmed GRAS Affirmation. HempFusion has 31 products launched and 25 in the pipeline with two unique brands. It is one of the first 13 companies certified by the US Hemp Authority (GMP Verification).

C21 Investments

C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF) announced unaudited revenue of $3.2 million for the month ended May 31, 2019. Unaudited Gross margin (before fair value adjustments) is estimated to be 50%. This amount reflects revenue from the Company’s operations in Nevada and Oregon. These figures include revenue from Swell Companies, starting from the closing date of the acquisition of May 24, 2019.

According to the company statement, the company delivered $7.7m in first quarter reported sales, Q1 had 89 days which is an average of $86,500 per day.  The company’s May sales increased averaging $103,000 per day. During the month, C21 Investment’s retail dispensaries completed a record 53,120 customer transactions compared to 38,076 for May 2018, prior to their acquisition by C21.

In Other News

Trulieve

Trulieve Cannabis Corp.  (CSE: TRUL) announced that it has priced its previously announced public offering of units of the company comprised of an aggregate principal amount of $70 million of 9.75% senior secured notes maturing in 2024 and an aggregate amount of 1,470,000 subordinate voting share warrants.

The company will issue an aggregate of 70,000 Units at a price of $980 per unit for gross proceeds of $68.6 million. Each unit will consist of one Note and 21 Warrants. Each Warrant will be exercisable for three years to purchase one subordinate voting share of the Company at an exercise price of C$17.25 per share, subject to adjustment in certain events.

Cresco Labs

Cresco Labs Inc.  (CSE: CL) (OTCQX: CRLBF) provided an update on its acquisition of CannaRoyalty Corp. d/b/a Origin House (CSE: OH) (OTCQX: ORHOF). Under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended Cresco Labs is required to file a notification to U.S. antitrust authorities and observe a waiting period before completing the Transaction. On June 10, 2019, pursuant to the HSR Act, the Company received a request for additional information from the United States Department of Justice Antitrust Division. The Second Request extends the HSR Act waiting period for up to 30 days after Cresco Labs and Origin House have each substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the Department of Justice.

Shareholders have approved the deal.

Sparx Cannabis

Sparx Cannabis, a vertically-integrated, family-owned and California-grown cannabis lifestyle company, announced today the completion of the Company’s Series A funding round with $10 million raised through private funding.

The funding comes at a vital time in Sparx Cannabis’ growth strategy. The Company plans to utilize the funds raised in their Series A round to continue to build out facilities and further their reach within the state of California to serve more customers. Funds raised will go toward the build-out and management of a manufacturing building called Sparx Distillery and the build-out of a distribution center. Additionally, the funds will be utilized to further promote the Sparx Cannabis brand as well as upgrading and running current Sparx Cannabis cultivation sites.

The Series A funding will also allow Sparx Cannabis to employ more residents of California’s central coast as additional employees will be needed to fill the infrastructures once build-out is complete.


StaffStaffJune 10, 2019
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5min1400

It’s time for your Daily Hit of cannabis financial news for June 10, 2019.

On The Site

Harborside Health

The much-anticipated Reverse Takeover for Harborside Health began trading on the Canadian Securities Exchange using the symbol HBOR on Monday. The plan to go public was originally announced back in August of 2018. At that time, Toronto-based Lineage Grow Co. said it would acquire Oakland-based FLRish – which manages Harborside’s retail and dispensary operations – in exchange for newly issued common shares of Lineage worth roughly 200 million Canadian dollars or $152.2 million.

Harborside was a pioneer in the medical marijuana world. It made the first legal cannabis sale in California and has been serving over 300,000 patients and generating over $400 million in sales since those early days. Harborside currently commands 3% of the entire CA retail market, which is by a landslide the biggest market in the country.

Jushi Holdings

Jushi Holdings Inc. began trading on the NEO Exchange on Monday, June 10 under the symbol (NEO:JUSH). The company is fairly new and is known for its recently launched a full spectrum CBD – hemp-derived product line called Mend. The company has plans to build out a significantly large hemp processing facility, Sound Wellness, a Jushi subsidiary to execute on the hemp opportunity.

Tilray

When Tilray, Inc. (NASDAQ: TLRY) shares first began trading the stock blew up in price sparking a rally in all cannabis stocks, but also causing concern over a cannabis stock bubble. One of the main reasons why the stock skyrocketed in those early days was a lack of tradable shares. Privateer Holdings Inc. owned a majority of the shares and they weren’t available to the market until now.

Tilray has signed a non-binding Letter of Intent (LOI) with Privateer that will extend the lock-up on and provide for the orderly release of the 75 million of its shares held by Privateer to Privateer’s equity holders. According to the company, these shares currently represent 77% of Tilray’s total shares outstanding.

In Other News

Green Growth

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) (“GGB” or “the Company”) announced today an arrangement through which the Company will open over 70 prime shop locations with potential for more at Brookfield Properties’ shopping centers throughout the United States. These exciting plans will further expand GGB’s physical footprint to approximately 280 total locations by the end of 2019.

Ventura Cannabis

Ventura Cannabis and Wellness Corp. (CSE: VCAN) announced today that it has entered into a binding agreement to acquire a cannabis dispensary based in Oakland, California that specializes in delivery of cannabis to the entire Bay Area. The business is expected to generate $1,000,000 in annual revenue with EBITDA of $100,000, not including the revenues and profits generated from selling Ventura Cannabis branded product lines through the dispensary. The total combined cost, including all fees and expenses, of the transaction, is expected to be a cash outlay of $1,000,000 at closing. Additional payments of $375,000 cash and $295,000 stock will be paid over time depending upon performance. The management will retain operational control of the dispensary.

MJ Freeway

MJ Freeway announced that it has retained Cowen and Company, LLC as a strategic and financial advisor pending the consummation of the proposed business combination with MTech. Following the closing of the business combination, Cowen’s Information & Technology Services Investment Banking team will assist with MJ Freeway’s strategy of pursuing strategic, accretive acquisition opportunities.


StaffStaffMay 28, 2019
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7min1680

It’s time for your Daily Hit of cannabis financial news for May 28, 2019.

On The Site

Charlotte’s Web

Charlotte’s Web Holdings, Inc. (CSE:CWEB) (OTCQX:CWBHF) reported financial results for the first quarter ended March 31, 2019 with revenue growing 66% to $21.7 million. The net income dropped to $2.3 million from last year’s $3.1 million. The company delivered earnings per share that fell to $0.03 and diluted EPS of $0.02 versus last year’s $0.04.

Operating expenses doubled from last year’s $6.4 million to this year’s $13.2 million. Just a couple of weeks ago the company named Deanie Elsner as the new Chief Executive Officer.

AYR Strategies

Cannabis Strategies Acquisition Corp. which will now be known as AYR Strategies Inc. began trading today on the NEO Exchange in Canada under the symbols NEO: AYR.AAYR.RT and AYR.WT. AYR is the first recreational cannabis-focused company with an enterprise value over a billion dollars to list on NEO.

As part of its qualifying transaction to be listed on the NEO Exchange, CSA acquired five distinct cannabis businesses operating in Nevada and Massachusetts consisting of three cannabis cultivation and production facilities and eight dispensaries.

Acquired Sales

Acquired Sales Corp. (OTC Pink: AQSP) signed a letter of intent to acquire 100%  Illinois-based Warrender Enterprise Inc. also known as Lifted Liquids for approximately $7.5 million in cash, plus 4,545,455 shares of Acquired Sales Corp.’s common stock. Those shares were lately trading at $2.45.

The deal is subject to several conditions including the completion of an acceptable due diligence investigation and audit of Lifted Liquids, completion of a capital raise of at least $9 million by Acquired Sales Corp., execution of definitive acquisition documents, receipt of a tax opinion on the transaction, obtaining all necessary approvals, and the completion of all necessary securities filings.

Bulgaria

Bulgaria has become the first European Union state to officially allow a CBD distribution company to sell openly on the market. Kannaway, a subsidiary of Medical Marijuana Inc, said it has been issued with a Free Sale Certificate to produce hemp-derived CBD products from Bulgaria’s Ministry of Agriculture, Food and Forestry, and the Bulgarian Food Safety Agency.

The products “comply fully with relevant requirements of the Law on Foodstuffs of Republic of Bulgaria and of Regulation (EC) No 852/2004 of European Parliament and the Council on the hygiene of foodstuffs,” according to documentation, and the compliance also extends to exports.

In Other News

HEXO

HEXO Corp  (TSX: HEXO)(NYSE-A: HEXO) and Newstrike Brands Ltd. announced that they completed the previously announced arrangement in which HEXO acquired all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario). Following the Arrangement, HEXO has ownership or control over 558,971,064 common shares in the capital of Newstrike representing 100% of the total issued and outstanding share capital of Newstrike.

MediPharm

MediPharm Labs Corp. (TSXV: LABS) (OTCQX: MEDIF) entered into an agreement with Scotiabank, in which the underwriters have agreed to purchase on a bought deal basis 10,815,000 common shares of the company at a price of $5.55 per Share for gross proceeds of $60 million. The company has granted the Underwriters an option to purchase up to an additional 1,622,250 Shares on the same terms and conditions, exercisable at any time, in whole or in part, for a period of 30 days following the closing of the Offering for over-allotment and market stabilization purposes.

MichiCann

MichiCann Medical Inc., operating as Red White & Bloom, has signed an LOI to acquire the world’s largest indoor premium hemp facility, located in Granville, Illinois. In operation since 1978, the greenhouse has been granted its Hemp Grower License and Hemp Processor Registration from the Illinois Department of Agriculture.

FLRish

FLRish Inc. d/b/a/ Harborside, announced that it has closed an approximately C$19.65 million private placement of subscription receipts. AltaCorp Capital Inc. and Foundation Markets Inc. served as co-lead agents on behalf of a syndicate of agents which included Cormark Securities Inc., Beacon Securities Limited and Haywood Securities Inc. (collectively with AltaCorp and FMI, the “Agents”). The net proceeds from the financing, following release from escrow, are expected to be used to provide the Company with general working capital and to support the Company’s initiatives throughout California.


StaffStaffMay 20, 2019
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4min1070

It’s time for your Daly Hit of cannabis financial news for May 20, 2019.

On The Site

Organigram

Canadian-based Organigram Holdings Inc. (TSX VENTURE: OGI) (OTCQX: OGRMF)  will begin trading on the NASDAQ Global Select Market on May 21, 2019. The company will continue to list its common shares on the TSX Venture Exchange under the symbol “OGI.”

“As a management team we are seeing increased interest from investors in the U.S. and internationally and believe that having a listing on the NASDAQ will facilitate trading,” said Paolo De Luca, Chief Financial Officer of Organigram. “In addition, based on precedents in the cannabis space, we expect trading volumes to increase which should result in increased liquidity for all investors.”

Five Tips For Selling

Legal cannabis sector fundamentals have strengthened in recent months thanks to new markets coming online and rising sales in existing markets. As a result, there has been a wealth of M&A activity lately, as existing operators increase their pace of acquisitions and new investors flock to the industry, buoyed by these investment opportunities. This has led to smaller operators selling their businesses to the larger players who are looking to consolidate or enter the market or both. This can be a smart move if properly executed, but there are also plenty of ways in which it can go awry.

Here are five crucial tips for operators thinking about selling their businesses in the coming years. This is the first part of a two-part series. In part two, we will provide five additional tips focused on the regulatory issues cannabis companies need to understand.

In Other News

Body & Mind

Body and Mind Inc. (CSE: BAMM) (OTC Pink: BMMJ) has closed its previously announced private placement offering with M Partners Inc., as lead agent, together with a syndicate of agents including PI Financial Corp. for 11,780,904 units at a price of CAD$1.25 per Unit for gross proceeds of CAD$14,726,130.

Northern Swan

Global cannabis firm, Northern Swan appointed Former Majority Leader Tom Daschle and Representative Joe Crowley to its Advisory Board. Daschle was one of the longest serving Senate Democratic leaders in history and one of only two to serve twice as both Majority and Minority Leader.

Crowley in the U.S House of Representatives – New York’s 14th Congressional District, which includes Crowley’s hometown of Woodside, Queens, but he lost that seat to Alexandria Ocasio-Cortez.

Northern Swan has raised approximately $100 million of financing to date for their cannabis initiatives which include expanding existing Latin American operations, invest in new low-cost, large-scale cannabis cultivation and processing centers and build out distribution channels and brands in Europe, Latin America and North America. Northern Swan has invested in several companies spanning the global cannabis value chain including Clever Leaves, a leading vertically integrated licensed producer of medical cannabis in Colombia, Cansativa GmbH, a German cannabis distribution company.


Debra BorchardtDebra BorchardtMay 14, 2019
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12min2250

It’s time for you Daily Hit of cannabis financial news for May 14, 2019.

On The Site

Tilray

Tilray, Inc. (Nasdaq: TLRY) reported that its net loss for the quarter was $30.3 million or $0.32 per share compared to a loss of $5.2 million or $0.07 per share for the prior year period. Even though the revenue increased by 195.1% to $23.0 (C$31.0) million, versus last year’s $7.8 million – it was less than the net loss. The non-GAAP adjusted net loss for the quarter was $25.2 million or $0.27 per share for the first quarter of 2019.

The company attributed the increase in revenue to the legalization of Canadian adult-use in 2018 and the addition of hemp food sales from the Manitoba Harvest acquisition. Tilray attributed the rise in net losses to non-recurring acquisition-related charges. The company reported that the adjusted EBITDA grew to a loss of $14.6 million versus last year’s loss of $3.2 million for the same time period. period.

Columbia Care

Columbia Care Inc. (NEO: CCHW) reported revenue of $12.9 million for the first-quarter of 2019, an increase of 45% over last year’s $8.8 million. The net loss of $25.1 million increased over last year’s loss of $9.7 million for the same time period. The company attributed the increase to its investment in its growth initiatives.

The adjusted EBITDA of ($10.4) million compared to ($2.3) million for the prior year period, reflected the company’s new market expansion, pre-opening facility expenses, organizational growth and expenses related to Columbia Care’s becoming a publicly traded company. Luckily the company is sitting pretty on pro-forma cash of $169.6 million including proceeds from the closing of the company’s go-public transaction on April 26, 2019 with zero debt.

Hemptown

Hemptown Organics Corp. raised  C$24 million in a round of financing from Canaccord Genuity Corp. who served as the lead agent on the brokered portion of the financing on behalf of a syndicate of investors that included Sprott Capital, Beacon Securities, and Pacific International.

The investment will allow Hemptown to embark on a multi-state expansion, purchase $5.5M in Oregon CBD seeds, begin the build-out of its processing and extraction facilities, research team, as well as planting and harvesting of its 2019 crop of feminized hemp seeds.

CannTrust

CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.

Surna

Surna Inc. (OTCQB: SRNA) reported revenue of $1,771,000 for the first quarter versus $2,055,000 for Q1 2018, a decrease of $284,000, or 14%. The company also noted that its fourth-quarter 2018 revenue was $2,195,000, representing a quarter-over-quarter decrease of $424,000, or 19%.

GrowLife 

GrowLife, Inc. (OTC: PHOT) reported a 216% increase in revenue for the second quarter to $2,244,279 from $708,936. Still, the company reported a net loss of $2.3 million, an improvement over last year’s loss of $4.2 million for the same time period.

Halo Labs

Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.

In Other News

SLANG Worldwide Inc. (CNSX: SLNG) entered into an agreement to acquire LBA Global Corporation and its Lunchbox Alchemy brand portfolio and subsidiary Hydra Distribution. The proposed transaction will bolster SLANG’s position in the Pacific Northwest by adding a complementary portfolio of top-selling products in Oregon and California and robust supply chain and distribution capabilities. The acquisition price was not disclosed.

Aphria Inc. (TSX: APHA and NYSE: APHA announced several new executive appointments including James Meiers to the role of Chief Operating Officer, Aphria Leamington, Tim Purdie as Chief Information Officer & Chief Information Security Officer, and Maureen Berry as Vice President, Corporate Human Resources.


StaffStaffMay 13, 2019
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6min1260

It’s time for your Daily Hit of cannabis financial news for May 13, 2019.

On The Site

Acreage Holdings

Acreage Holdings Inc. (ACRG.U) (ACRGF) announced on Monday that it was carving off its real estate assets and selling them to a REIT called GreenAcreage Real Estate Corp. or GARE. GARE will purchase the assets and then lease them back to Acreage Holdings.

The arrangement is described as “arms length” transaction, which suggests a separation of parties, yet the REIT will be managed by GreenAcreage Management LLC, which Acreage Holdings owns a 20% interest in and CEO Kevin Murphy is also invested in. GARE is also described as remaining “independent” from Acreage, yet the management company has Acreage ownership involved.

MariMed

MariMed Inc. (OTCQB: MRMD) reported that in the first quarter ending March 31, 2019, revenues grew 69% to $3.5 million versus last year’s $2.1 million for the same time period. The company trimmed its net losses for the quarter to $23,211, a 99% improvement over the $1.9 million loss for the first quarter of 2018.

MariMed delivered a breakeven quarter on a per share basis versus the $.01 per share loss for the same period in 2018. Gross profits grew 90% to $2.2 million vs. $1.2 million for the first quarter of 2018 compared to the same period in 2018.

In Other News

Helix TCS

Helix TCS, Inc. (OTCQB: HLIX) announced that it has received a receipt from the British Columbia Securities Commission for the filing of its preliminary non-offering long form prospectus dated May 8, 2019. Listing of the shares will be subject to the Company fulfilling all the listing requirements of the CSE, including the receipt by the CSE of all final documentation and the company filing a final prospectus with the Commission.

“We are excited at the prospect of listing on the Canadian Securities Exchange in 2019,” Executive Chairman and CEO Zachary L. Venegas stated. “We believe the CSE listing will not only benefit our current and prospective Canadian-based investors but will also afford our existing investors, wherever they are located, increased liquidity by being dual listed on a Canadian stock exchange in addition to the OTCQB market.”

Vitalibis

Vitalibis, Inc. (OTCQB: VCBD), a technology-based formulator of premium hemp-based cannabidiol (CBD) wellness products, reported results for its first quarter ended March 31, 2019.

First Quarter 2019 Financial Results. Realized first commercial revenue in the first quarter of 2019, generating $140 thousand in revenue, primarily derived from the soft-launch of several Vitalibis products, as compared to no revenues in the first quarter of 2018. Gross profit in the first quarter of 2019 was $51 thousand, representing a 37% gross profit margin, primarily driven by a sales mix weighted towards lower-margin CBD powder sales. The company expects gross margins to steadily improve over time as consumer products, which carry an approximate 80% gross margin profile, become an increasingly large portion of the sales mix.

Cash used in operations in the first quarter of 2019 totaled $286 thousand as a result of the Company’s capital-light, low-overhead operating model. Cash and cash equivalents as of March 31, 2019, were $60 thousand compared to $171 thousand as of December 31, 2018. Subsequent to the closing of the first quarter of 2019, the Company raised $200 thousand via a convertible debenture.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) reported its first quarter 2019 financial results for the period ended March 31, 2019. Aleafia Health revenue was $1.5 million, compared to $0.1 million in Q1 2018, a 1,723 percent year-over-year increase. The company experienced a net loss of $20.2 million, or a $7 million net loss, excluding $13.2 million in one-time, non-cash payments resulting from the closing of the Emblem acquisition. The Company has $36.8 million cash on hand on March 31, 2019, compared to $26.4 million at December 31, 2018. Current assets, including cash, totaled $61 million at March 31, 2019, compared to $29.2 million at December 31, 2018.

Nabis Holdings

Innovative Properties Inc. d/b/a Nabis Holdings (CSE: NAB) (OTC: INNPF) has signed a definitive agreement to purchase certain assets from PDT Technologies LLC, including extraction and production equipment and rights to lease its current production facility in Port Townsend, WA. In addition, the Company will purchase the exclusive licensing rights throughout the state of Washington to Chong’s Choice brand products, one of the leading and most recognizable brands in the cannabis space.

The Chong’s Choice brand, as one-half of the legendary comedy duo Cheech & Chong, is a well-known brand in the cannabis space. The company expects that the rights it will acquire to the Chong’s Choice brand will provide it with new opportunities to forge licensing relationships with state-licensed Washington processors


StaffStaffApril 17, 2019
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4min2770

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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7min2240

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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6min2630

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.



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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