Daily Hit Archives - Green Market Report

StaffStaffNovember 25, 2020
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4min630

It’s time for your Daily Hit of cannabis financial news for November 25, 2020.

On The Site

Predictions for Green Wednesday 2020

Headset

Headset forecasts an even larger than usual uptick in recreational cannabis sales on Green Wednesday this year for several reasons:

–  In all adult use cannabis states tracked by Headset, the total market has grown by at least 20% in total revenue over last year (when comparing October 2019 to October 2020).

Akerna

“On average, Thanksgiving tends to be one of the Top 5 sales holidays of the year, and we expect that trend to continue this year,” said James Ahrendt, Business Intelligence Architect, Akerna (NASDAQ: KERN). “In the past, we’ve seen huge spikes in sales on Wednesday and Friday since most dispensaries are closed on Thursdays.”

Akerna anticipates that the average order total will be around $82.30 for adult-use customers and $128.46 for medical consumers, representing an increase of approximately $13 compared to the average order total on any other given day of the year.

Planet 13

Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) reported that revenues rose 36.5% to $$22.8 million for the third-quarter ending September 30, 2020, versus last year’s $16.7 million. The company also delivered a net income of $0.2 million as compared to a net loss of $1.7 million in 2019. The net income before taxes was $3.4 million as compared to a net income of $0.3 million last year for the same time period. The operating expenses, excluding non-cash compensation expense and depreciation and amortization, was $7.2 million in the quarter versus $6.7 million in 2019, an increase of 7.9%.  The third-quarter 2020 adjusted EBITDA of $6.2 million was higher than the 2019 Adjusted EBITDA of $3.4 million.

Vireo Health

Vireo Health International, Inc. (OTCQX: VREOF) reported that its revenue rose 67% to $11.9 million for its third quarter ended September 30, 2020 versus $7.1 million for the same time period in 2019. Net income in the third quarter was $122,252 versus a net loss of $14.6 million in the 2019 third quarter.  Vireo said the favorable improvement in net income was primarily driven by the one-time gain of $16.4 million on the divestiture of the company’s former PAMS subsidiary.

In Other News

Driven Deliveries, Inc.  (OTCQB: DRVD), one of California’s fastest-growing online cannabis retailers and direct-to-consumer logistics companies, today announced its financial results for the three months ended September 30, 2020.

  • Gross Revenue for the third quarter ended September 30, 2020 totaled record sales of $7.2 million.
  • Net Revenue for the same period was $6.0 million, +393% Y/Y.
  • Gross Revenue Fiscal YTD totaled record sales of $16.6 million, +1,193% Y/Y.
  • Net Revenue Fiscal YTD was $13.8 million, +998% YTD Y/Y.
  • The company announced its pending acquisition by Stem Holdings, Inc. (OTCQX: STMH CSE: STEM) is expected to close in CY20/Q4.

 


StaffStaffNovember 16, 2020
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5min900

It’s time for your Daily Hit of cannabis financial news for November 16, 2020.

On The Site

Neptune Wellness

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) reported revenue increased 155%  sequentially to $28 million for the second quarter ending September 30, 2020.  Revenues in the first quarter were restated to $11.2 million. It was a big jump over last year’s total revenues of $6 million for the 2019 second quarter. The stock was jumping over 15% in after hours trading to sell near $2.18.

The company delivered a net loss $21 million slightly more than last year’s net loss of $20 million. All figures are canadian dollars unless otherwise stated.

MediPharm Labs

MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF)  announced its revenues fell to $4.9 million for the third quarter ending September 30, 2020, versus $13.9 million for the second quarter of 2020. This was a massive decline from last year’s revenue of $43 million for the same time period. The company also delivered a net loss before tax of $15.4 million, compared to a net income of $5.3 million for last year’s third quarter. It also increased sequentially from a loss of $3.7 million in the second quarter.

Strimo

Before there was the iPhone, there was the Blackberry. Everyone who was anyone had a Blackberry. It was a status symbol and a very functional piece of technology. It was also groundbreaking until it wasn’t. First-generation technology has its place as a pioneer, but it’s the next generation that is typically a better consumer experience.

Cannabis tech company Strimo is a textbook example of next-generation software that is better than its predecessors. CEO Helkin Berg learned that many cannabis companies were unhappy with the existing first-generation software options on the market. In the early days of the cannabis industry, Berg says the pioneers were creating frankensoftware to address the industry’s specific compliance requirements. “Seed-to-sale” didn’t exist before legal cannabis came along. So the pioneers were tasked with creating a new product in a short amount of time. This cobbled-together software, while somewhat functional, was in Helkin’s mind, flawed.

In Other News

AQSP

Acquired Sales Corp. (OTCQB: AQSP) announced that it achieved third quarter net revenue and positive net income of $1,509,437 and $95,823, respectively. Third quarter net revenue exceeded second quarter net revenue by 19%, and the company expects its fourth quarter net revenue to continue to grow.

Nicholas S. Warrender, AQSP’s COO and the CEO of its wholly-owned subsidiary Lifted Made, Zion, IL, said, “So far this quarter, Lifted Made’s sales are surging. Under Lifted Made’s flagship Urb Finest Flowers brand, our delta 8 THC cartridges and gummies, CBD moon rocks, caviar cones, and our private label products are experiencing a tremendous reception from our distributors and customers. We are also developing new and exciting SKUs that are launching throughout the rest of this year and early Q1 2021 that we expect will be picked up by our existing and growing distribution channels throughout the country.”

Captor Capital

Captor Capital Corp. (CSE: CPTR) announced its common shares will no longer be traded through the facilities of the OTC in the United States. The U.S. Securities and Exchange Commission has revoked the registration of the Company’s securities under Section 12(j) of the Securities Exchange Act of 1934 for not filing continuous disclosure documents.  Captor remains a reporting issuer in good standing in each of British Columbia, Alberta and Ontario, and its common shares remain listed for trading on the Canadian Securities Exchange under the symbol CPTR.

 


StaffStaffNovember 9, 2020
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9min940

It’s time for your Daily Hit of cannabis news for November 9, 2020

On the Site

Canopy Growth

Canopy Growth Corporation (NYSE: CGC) reported net revenue of $135.3 million for the second quarter fiscal 2021 ended September 30, 2020, causing the stock to jump in early trading. This was a 77% increase over last year’s fiscal second-quarter revenue of $76.6 million. Still, Canopy delivered a net loss of $96.6 million versus last year’s net income of $242 million for the same time period.

The company also reported a loss per share of ($0.09) which beat the MarketWatch estimate for a loss of ($0.28). The stock was lately trading at $26, an increase of 13%. The company attributed the revenue growth to an increase in Canadian recreational revenue, continued strength in Storz & Bickel vaporizer sales and ThisWorks, and contribution from BioSteel, which was acquired in October 2019 . The net loss was driven by lower other income. Canopy also said that the increase versus the prior year period also benefited from favorable comparison, as Q2 2020 results included a $32.7 million charge for returns, return provisions, and pricing allowances primarily related to restructuring the company’s recreational softgel & oil portfolio.

Tilray

Tilray, Inc. (Nasdaq: TLRY) reported that its total revenue for the third quarter was flat at $51.4 million and up 2.0% sequentially. Net losses fell to  $(2.3) million versus last year’s net loss of $(36.4) million and fell sequentially from $(81.7) million in the second quarter. The most significant driver of the change in net loss during the period was the revaluation of the outstanding warrants associated with the equity offering completed in March. Tilray stock was slightly higher in after-hours trading.

The company attributed the disappointing results on the discontinuation of bulk sales and a slight decrease in Canada medical sales which caused cannabis segment revenue to fall by 11% to $31.4 million. Total cannabis kilogram equivalents sold decreased 53% to 5,107 kilograms from 10,848 kilograms in the prior year’s third quarter. Adult-Use and International Medical sales grew 26% and 42%, respectively. Excluding the year-over-year impact related to bulk sales, total cannabis revenue increased by 24%. Hemp segment revenue increased 28% to $20.0 million (C$26.5 million).

Aurora Cannabis

Canadian-based cannabis company, Aurora Cannabis (NYSE: ACB) reported their Q1 earnings this morning. The results were mixed at best, with shares rising 21% on the potential for cannabis legalization under a Biden administration. Unless otherwise stated, these figures are in Canadian dollars. 

The company’s adjusted gross margin before fair value adjustments on total cannabis net revenue didn’t waver much quarter to quarter, with Aurora Cannabis reporting a 48% adjusted gross margin compared to 50% in Q4 2020. Before fair value adjustments, the company’s adjusted gross margin on cannabis net revenue was 52%. 

Canopy Rivers

Canopy Rivers Inc. (OTC: CNPOF) today released its unaudited condensed interim consolidated financial statements in Canadian dollars and acknowledged taking a $112 million hit for its PharmHouse investment.  The total comprehensive loss for the quarter was $87.0 million. On a positive note, its investment into TerrAscend has appreciated implying an investment value of $214 million.

The company reported that its royalty, interest, and lease income (before provisions for credit losses) was $4.1 million for the quarter. It included income from its various royalty, convertible debenture, and loan agreements, among other items. Other comprehensive income was $23.4 million, net of tax, for the quarter, which included a net increase in the fair value of financial assets of $27.4 million attributed to the positive change in the fair value of the investment in TerrAscend. TerrAscend’s share value increase from $2.87 on June 30, 2020, to $9.75 as of the close of markets on November 6, 2020.

Zynerba

Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) reported a net loss of $9 million for the third quarter ending September 30, 2020, with a basic and diluted net loss per share of $(0.31). This beat the Yahoo Finance average analyst estimate for a loss of ($0.43). Six analysts have a Hold rating on the company, while two give it a Buy rating. The company still does not have a revenue-producing drug, but Zynerba said it has enough money until that time comes.

Planet 13

Planet 13 (CSE:PLTH) (OTCQX:PLNHF) is potentially one of the most well-known dispensaries around. They are incredibly innovative, massive in size, and just all around at the top of the dispensary game. Planet 13 is even more special because currently, they’re only located in Las Vegas, Nevada. For having operations in only one state, they sure do gain a ton of attention!

The cannabis megastore just announced their third consecutive month of generating over $7.5 million in revenue. The company’s October revenue clocked out at $7.6 million, with gross margins above 50%. Planet 13’s figures include sales for the SuperStore, as well as Nevada wholesale. 

In Other News

Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA, SAMAW, and SAMAU) and Clever Leaves International Inc. announced today that they have amended their definitive agreement, which was entered into on July 25, 2020 and is anticipated to become a NASDAQ-listed public company trading under the ticker symbol “CLVR”.

 Under the amended terms, the initial expected enterprise value has been reduced to $206 million from $255 million and the minimum cash condition for SAMA has been reduced to $26 million from $60 million. Additionally, the cash consideration payable to certain Clever Leaves’ shareholders at closing has been amended, thereby increasing the equity rollover consideration of the transaction to approximately 97% while Schultze Special Purpose Acquisition Sponsor, LLC agreed to restructure its’ equity ownership to better align with the capital retained at closing. In connection with these revised terms, institutional investors have committed over $10 million through a private placement to be funded at closing of the Business Combination. Additionally, select SAMA stockholders have agreed not to redeem their shares held thereby providing a path to over $16 million of additional committed capital and thus having adequate capital to consummate the transaction. When including SAMA’s cash in trust, the parties expect to have over $80 million of cash on its balance sheet following closing.

 


StaffStaffNovember 5, 2020
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4min1080

It’s time for your Daily Hit of cannabis financial news for November 5, 2020.

On the Site

Cronos

Cronos Group Inc. (NASDAQ: CRON) reported that its third-quarter net revenue of $11.4 million increased by $5.6 million from the third quarter in 2019. The stock was moving higher by over 7% in early trading as the earnings per share of $0.19 beat the analyst estimates by $0.25. In addition to the earnings, Kurt Schmidt was named President and Chief Executive Officer.

The company said the increase was due to continued growth in the adult-use Canadian cannabis market, the inclusion of the Redwood acquisition in its financial results and growth in the Israeli medical cannabis market. However, Cronos also said that the revenue increase was partially offset by non-recurring wholesale revenue in the Canadian market in the third quarter in 2019 and strategic price reductions on various adult-use cannabis products in certain Canadian provinces in the 2020 third quarter.

MJardin

MJardin Group, Inc.  (CSE: MJAR) (OTCQX: MJARF) reported revenue of $4.8 for its third-quarter ending September 30, 2020. This was lower than the $7.6 million in revenue that the company delivered in the 2019 third quarter. The net income for the quarter was $7.2 million All amounts are expressed in Canadian dollars unless otherwise indicated.

The company noted that its operating expenses were $6.7 million the quarter leading to a loss on operations of $4.2 million. This was higher than the $3.6 million in operational losses for the 2019 third quarter.  The general and administrative expenses of $3.7 million were higher than last year’s $3.0 million for the same period and mostly due to increased professional services expenses in Q3 2020.

Psychedelics

Investor interest in the emerging psychedelic medicine sector is on the rise, attracting significant attention from billionaire investorshigh profile celebrities, and dynamic entrepreneurs. As groundbreaking clinical research continues to bolster the momentum of the psychedelic industry, many are drawing important lessons from the “green rush” experienced by cannabis investors. Indeed, there are some critical cannabis takeaways that current psychedelic investors can benefit from reviewing. This guide will explore five things every psychedelic retail investor can learn from the cannabis industry.

In Other News

CV Sciences, Inc. (OTCQB:CVSI) announced its financial results for the quarter ended September 30, 2020. Sales for the third quarter of 2020 were $5.6 million, a decrease of 56% from $12.6 million in the third quarter of 2019. Third quarter sales were impacted by the current COVID-19 pandemic and increased market competition, which is largely due to the uncertain regulatory environment for CBD. The Company’s products were sold in 6,227 retail stores nationwide as of September 30, 2020, up from 5,435 stores as of September 30, 2019.

The Company recognized an operating loss of $3.2 million in the third quarter of 2020, compared to an operating loss of $1.8 million in the prior year. The company had a negative adjusted EBITDA for the third quarter of 2020 of $2.3 million, compared to negative adjusted EBITDA of $0.9 million for the third quarter of 2019.


Debra BorchardtDebra BorchardtNovember 4, 2020
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5min970

It’s time for your Daily Hit of cannabis financial news for November 4, 2020.

On The Site

Elections

The nation may not know who is president on election day, but the people have spoken when it comes to cannabis legislation. Arizona, Montana, New Jersey, and South Dakota have all legalized marijuana for adults 21 and older, as voters in each state approved their respective ballot initiatives at the ballot box. The Garden State has gone green as the closely watched state of New Jersey approved adult-use cannabis.

IIPR

Innovative Industrial Properties, Inc. (IIP)(NYSE: IIPR) reported total revenues of approximately $34.3 million for the third quarter ending September 30, 2020. This was a 197% increase from the prior year’s third quarter. It also beat the Yahoo Finance average analyst estimate for revenue of $29.63 million. The stock rose over 8% ahead of the company’s earnings to lately trade at $133.

IIP recorded net income available to common stockholders of approximately $18.9 million for the quarter, or $0.86 per diluted share, which beat the Yahoo Finance estimate for $0.78. The adjusted funds from operations (AFFO) were approximately $27.9 million, or $1.28 per diluted share. Net income available to common stockholders and AFFO increased by 205% and 192% from the prior year’s third quarter, respectively.

Ayr

Ayr Strategies (OTCQX: AYRSF) announced it is buying a vertically integrated operation in Arizona, including cultivation and processing facilities and three licensed dispensaries in a deal valued at $81 million. The deal will be made up of $10 million in cash, $41 million in stock (approximately 2.75 million shares priced at 10-day VWAP prior to announcement), and $30 million in seller notes. An additional 2 million shares may be payable upon the achievement of established cultivation targets through 2021 and 2022.

Psychedelics

Americans were decisive when it came to legislation on psychedelics, even if there wasn’t a clear winner in the presidential election. In Washington D.C., Initiative 81 secured enough votes from residents to pass. Initiative 81 needed to secure a simple majority to pass. The ballot initiative was originally proposed by Ward 6 resident and mother of two Melissa Lavasaniand will, when implemented, reform police priorities to ensure that DC residents benefiting from plant and fungi medicines are not police targets.

Oregon became the first state in the country to legalize psilocybin as voters in the state passed Measure 109. Oregon Live reported that Measure 109 was passing by 56.12% Tuesday at 8:50 p.m. with 1,832,513 votes counted. While D.C. decriminalized it, Oregon will be the first to permit supervised use statewide if that majority holds. The product will have to be stored and administered at licensed facilities.

In Other News

Aphria

Aphria Inc. (TSX: APHA) (Nasdaq: APHA) entered into an agreement of merger and acquisition to acquire SW Brewing Company, which is one of the largest independent craft brewers in the United States based on volume. Beginning with the flagship 420 beverage offerings, SweetWater has created an award-winning lineup of year-round, seasonal and specialty beers, a portfolio of brands closely aligned with a cannabis lifestyle. The approximately USD $300 million acquisition has been unanimously approved by Aphria’s Board of Directors and is expected to close before the end of December 2020 . Aphria expects this acquisition to be immediately accretive to EBITDA and diluted earnings per share. All dollar amounts in the press release are expressed in U.S. dollars, unless otherwise noted.

Canopy Growth

Canopy Growth (CGC) has announced that it will be transferring its U.S. stock exchange listing from NYSE to Nasdaq on November 13, 2020 after market close. Common shares of Canopy Growth are expected to begin trading as a Nasdaq-listed security on November 16, 2020, under the same symbol “CGC”. “By making the move over to Nasdaq, we are joining some of the world’s leading companies that share our passion and focus for innovation,” explained David Klein, Canopy Growth CEO.


StaffStaffOctober 29, 2020
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5min1120

It’s time for your Daily Hit of cannabis financial news for October 29, 2020.

On The Site

KushCo

KushCo Holdings, Inc. (OTCQX:KSHB)  reported financial results for its fiscal fourth quarter and full-year ended August 31, 2020. The company reported that its net revenue decreased 44% from the prior-year period to $26.5 million, primarily as a result of the company implementing its 2020 Plan, which has resulted in tighter credit terms being extended to smaller and less creditworthy customers. KushCo beat the Yahoo Finance estimates for revenues, which was $25.7 million.

On a sequential basis, KushCo‘s net revenue increased 19%, driven by an increase in sales to the company’s top customers, which includes leading MSOs, licensed producers, and brands. On a GAAP basis, the net loss was approximately $7.3 million, compared to approximately $11.5 million in the prior-year period. Basic loss per share was $0.06 compared to $0.13 in the prior-year period. The estimate from Yahoo Finance was for a loss of four cents, so KushCo missed this by two cents.

Field Trip

Field Trip Health Ltd. (CSE: FTRP) (OTC: FTRPF) provided an update on its in-vivo and in-vitro studies on FT-104, its lead drug candidate. FT-104 is a novel, synthetic psychedelic molecule developed by Field Trip. The company confirmed both the successful GLP synthesis of FT-104 and that FT-104 is a serotonin 5HT2A receptor agonist (the serotonin receptor believed responsible for psychedelic experiences).

Nabis

Troubled Canadian cannabis company Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) announced that its Arizona subsidiary Nabis AZ, LLC failed to fund its deferred payment obligation in respect of an asset purchase agreement for Perpetual Healthcare Inc. which is the operator of the Emerald medical marijuana retail dispensary located in Arizona.   Nabis AZ was required to make payment to the vendors of approximately $8.1 million, including accrued interest, which was due on October 25, 2020. That payment wasn’t made because Nabis failed to secure alternative financing to fulfill the Deferred Obligation.

Champignon

 Champignon Brands Inc. (CSE: SHRM) (OTCQB: SHRMF) has learned the hard way that public companies can’t deliver their homework late without suffering consequences. The company’s stock was unable to trade as of Wednesday as a result of the company not delivering the required financial documents on time. Champignon said it continues to work diligently with the British Columbia Securities Commission to address the ongoing continuous disclosure review and to coordinate the revocation of the existing cease trade order.

In Other News

Columbia

Columbia Care, Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) announced the completion of an add-on debt issuance under its existing senior secured indenture via a private placement of 20,000 units for aggregate gross proceeds of approximately US$20.4 million.

Subversive

Subversive Real Estate Acquisition REIT LP (OTCQX: SBVRF) announced that the REIT LP has qualified to trade on the OTCQX® Best Market. The REIT LP will trade under the symbol “SBVRF,” starting on October 28, 2020. The REIT LP continues to also trade on the Neo Exchange Inc. in Canada under the symbols “SVX.U” and “SVX.RT.U.” “We are pleased to announce that we have qualified to trade on the OTCQX market, which marks another milestone in our effort to provide investors with greater access to our securities. We believe that the combination of growth and an estimated 6.5% yield offered by the REIT LP’s initial portfolio of 15 industrial and retail assets, as well as our high-quality platform as the second cannabis REIT, will be attractive to investors worldwide,” said the REIT LP’s CEO Richard Acosta.


StaffStaffOctober 28, 2020
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5min1090

It’s time for your Daily Hit of cannabis financial news for October 28, 2020.

On The Site

Akerna

Akerna Corp. (Nasdaq: KERN) has priced a public offering of 5,000,000 shares of its common stock at a public offering price of $2.40 per share. The company said it expects that the gross proceeds of the offering of the shares will be approximately $12,000,000.  Akerna said it intends to use the net proceeds from the offering to fund its growth initiatives, including product development, sales and marketing, strategic acquisitions, working capital, and general corporate purposes.

The stock was falling in pre-market trading from $2.93 to $2.39, a decline of 18%. According to Yahoo Finance, the company’s price to sales is $3.56.

Saucey

Alcohol and logistics platform company Saucey and cannabis delivery platform have been acquired by the newly formed Pacific Consolidated Holdings (PCH). The two will debut as the vice platform centered on delivery, data insights, and logistics. PCH said its goal is to become the next generation, vertically integrated vice platform, with a focus on e-commerce, delivery logistics, and cross-industry behavioral insights that have yet to exist in the vice industry.

PCH said that the merger of Saucey and Emjay is a direct response to over 70% of Saucey respondents within the California market reporting that they’d strongly like the opportunity to purchase cannabis products, highlighting a consumer desire for ordering across vice-related commodities. To start, Saucey users in Los Angeles will be able to seamlessly create an Emjay account using their Saucey login. Customers will now able to toggle between and create accounts for Saucey and Emjay with the tap of a button, making the experience convenient, streamlined, and efficient.

Liberty Health

Liberty Health Sciences Inc. (CSE: LHS) (OTCQX: LHSIF ) announced that Victor Mancebo has resigned from the Board of Directors and his role as Chief Executive Officer, effective December 31, 2020. George J. Gremse, a member of the Board of Directors, has been appointed as Interim CEO during the process of identifying a permanent CEO.

This comes after shareholders expressed dissatisfaction with the company’s disappointing cannabis production in the state of Florida. A recent state report from the Office of Medical Marijuana dated October 16-22 showed that Liberty, with 26 dispensing locations, had produced only 3,937,111 mgs of medical marijuana with THC. AltMed Florida, which also has 26 locations, produced 14,854,911 mg. of medical marijuana with THC.

In Other News

Tilt

TILT Holdings Inc.  (OTCQB: TLLTF ) announced preliminary financial results for the third quarter ended September 30, 2020, the promotion of Gary Santo to President of TILT, and the appointment of Brad Hoch as TILT’s permanent chief financial officer. Third-quarter revenue is expected to be  $40 – $41 million, a 4% – 6% increase from Q2 2020 revenue of $38.6 million. Third-quarter adjusted EBITDA of $2.5 – $3.0 million, is a 108% – 150% increase from Q2 2020 Adjusted EBITDA of $1.2 million. The company did not report any net profits or losses.

The company also reported a new monthly record for total cartridges shipped by Jupiter Research, LLC in September. Expanded product offering at Standard Farms LLC, Pennsylvania contributing to a new monthly revenue record for Standard Farms in September. 31% quarter-over-quarter revenue increase at Commonwealth Alternative Care Inc., Massachusetts


StaffStaffOctober 27, 2020
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8min1590

It’s time for your Daily Hit of cannabis financial news for October 27, 2020.

On the Site

Hollister

California-based cannabis company Hollister Biosciences Inc.(OTC: HSTRF) gave an update on its third-quarter 2020 performance sales figures. The company said that for the quarter ending September 30, 2020, it generated record quarterly revenue of C$ 12.5 million and C$ 1.265 million in EBITDA from its product line of pre-rolls, concentrates, distillates, solvent-free bubble hash, pre-packaged flower, tinctures, and vape products. Hollister was clear that the revenue and EBITDA figures had not yet been audited and are based on reports prepared by management.

“We are very pleased with our ability to deliver record quarterly revenue in such a challenging market environment. We attribute our revenue growth to further penetration of the California and Arizona dispensary networks and successful new product launches with our joint venture partners.  We hope to continue this positive momentum into year-end” stated Carl Saling, CEO.

The company did not state whether there was any net loss or profits for the third quarter. These figures would be a sequential increase over the revenue from the second quarter ending June 30th, 2020, which was $8.47 million.

Aurora

Canadian cannabis company Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced it has completed the previously filed At-The-Market program. In addition to that, it has filed a new preliminary short form base shelf prospectus with securities regulators in each of the provinces of Canada, except Quebec, and a corresponding shelf registration statement on Form F–10  with the United States Securities and Exchange Commission. This filing will allow Aurora to make offerings of up to $500 million of common shares, preferred shares, warrants, subscription receipts, and debt securities, or any combination thereof during the 25-month period that the base shelf prospectus remains effective.

Aurora cannabis already had over 120 million shares outstanding and 19% of those shares are shorted – meaning those traders are betting the price per share will fall. Shares were lately selling at $4.37 in early trading, but the price to sales according to Yahoo Finance is $2.14. This is a tremendous drop from the company’s year high of $47 and not far from the 52-week low of $3.93.

With the completion of the previously filed ATM program, Aurora said it currently has available cash resources of approximately $272 million, in addition to an undrawn revolver capacity of approximately $11 million.

In Other News

cbdMD

cbdMD, Inc. (NYSE American: YCBD) announced today that its CBD pet products brand, Paw CBD, has experienced another record quarter of net sales. Paw CBD’s September 30, 2020, estimated preliminary quarterly net sales are expected to range between $1.6 million and $1.65 million, or a sequential quarterly growth of between 30% and 34% from the $1.23 million in net sales in the prior quarter ended June 30, 2020.

“We are seeing an incredible growth trajectory in our Paw CBD brand. We now project total net sales of the Paw CBD brand to reach approximately $6 million for calendar 2020. Based on an article published on October 12, 2020, by Hemp Industry Daily, which used data provided by market analytics firm Nielsen Global Connect, estimated the hemp-derived CBD market for pets will total $40 million to $60 million in 2020. Therefore, based on these estimates, we expect Paw CBD will represent an approximate 10% to 15% market share in the pet U.S. CBD market in calendar 2020. This is an incredible achievement considering Paw CBD was launched less than one year ago,” said Martin A. Sumichrast, Chairman and Co-CEO of cbdMD, Inc.

Real Brands

Real Brands Inc. (OTCPK: RLBD) has completed a reverse merger to acquire Canadian American Standard Hemp Inc., (CASH) effective immediately. Real Brands’ name and trading symbol will be maintained, with CASH shareholders acquiring majority control of Real Brands. CASH will continue to operate as a wholly-owned subsidiary of Real Brands. Thomas Kidrin, CEO of CASH, has been named Chief Executive Officer (CEO) of Real Brands, replacing former Real Brands CEO Jerry Pearring. Real Brands’ new headquarters will be the newly renovated/constructed CASH headquarters and hemp processing facility at 12 Humbert St., in North Providence, RI.

Cultivera

Cultivera, cannabis-specific business management and track-and-trace software solution, just passed $1 billion in total sales orders since their launch in 2017. Cultivera launched in Washington and has expanded to eight states, with the ability to serve companies across the entire supply chain, in any state with a legal recreational or medical market, including those with Metrc as the tracking system. The Cultivera platform provides compliance, traceability, and other valuable, time-saving features that allow cannabis businesses to spend more time focusing on growth, processing, and sales while carrying the peace of mind that they are abiding by legal requirements.


StaffStaffOctober 26, 2020
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4min1100

It’s time for your Daily Hit of cannabis news for October 26, 2020.

On the Site

Elections

A recent report by analyst Bobby Burleson at Cannacord Genuity, an investment banking and financial services company, concluded that “the outlook for the legal US cannabis market is improving” both state and federal levels. Burleson cites polls that demonstrate strong support for ballot initiatives in states like Arizona and South Dakota, while governors of other states such as New York and Pennsylvania are making encouraging noises about rapid roll-outs for recreational programs. Burleson also references polling by aggregator FiveThirtyEight, which shows a 75% likelihood of a Democratic majority in the senate, boding well for cannabis legalization at the federal level. Recent statements by Vice Presidential candidate Kamala Harris about decriminalizing marijuana further improve the outlook.

Athletes

It seems that cannabis has never attracted this much attention. After decades of being outlawed for no valid reason, many states have legalized it again. The positive campaign attracted many users and informed the public on the positive effects of marijuana.

What role can this plant play for athletes? Are marijuana and bodybuilding connected, and can you hope to achieve fitness goals faster with this herb? Here is an overview of the potential benefits and other things you should know about THC if you are an athlete.

In Other News

Harborside

Harborside Inc. (OTCQX: HBORF) will propose an alternate slate of nominees for election as directors of Harborside at the Meeting. The desire for board renewal is focused on maximizing shareholder value and aligning the strategic vision for Harborside, including a review of the company’s management team. The Company, under the direction of the new board of directors, to be chaired by Matthew Hawkins, will establish a new committee chaired by Mr. Hawkins to immediately begin the process of identifying a new permanent Chief Executive Officer. The committee will conduct a comprehensive review of potential candidates and is seeking a sophisticated and experienced executive based in California. Peter Bilodeau will remain as interim Chief Executive Officer of the Company during this search process.

Dutch Love

Dutch Love Cannabis announced the opening of two additional retail locations in the Greater Toronto Area. Operating in accordance with the province’s COVID-19 health guidelines, the company’s new Danforth Village location (2480 Gerrard St. E) and Theatre District location (130 John St.) are now open to the public for business. Dutch Love currently operates 10 retail cannabis stores in Ontario, including five in Toronto.

“We’ve enjoyed having front row seats to Canada’s ever-changing cannabis industry since it was federally legalized two years ago and feel optimistic about government regulations evolving to better support independent retailers like Dutch Love,” said Harrison Stoker, Vice President at Donnelly Group. “This week’s two new store openings give Ontario customers better access to Dutch Love and the cannabis retail experience we’ve curated since entering the market in 2019. This, paired with the Ontario Cannabis Store’s recent move to open a second distribution centre, unlocks our ability to deliver the products our communities want most. We’ve all come a long way in two years and are enthusiastic about what’s to come for Canada’s cannabis industry and community.”


StaffStaffOctober 21, 2020
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7min4430

It’s time for your Daily Hit of cannabis financial news for October 21, 2020

On The Site

The Flowr Corporation

The Flowr Corporation (TSXV: FLWR) (OTC:FLWPF) is buying  Terrace Global in a deal valued at $63 million. The proposed transaction provides a 47% premium to Terrace Global’s current share price and a premium of 76% to the last Terrace Global financing at $0.125 per share. Flowr said it has secured support from approximately 38% of the shareholders of Terrace Global. Once the deal is completed, existing Flowr and Terrace Global shareholders would own approximately 60.9% and 39.1% of the pro forma company, respectively, on a fully-diluted in-the-money basis (including the conversion of $11.9 million of Flowr convertible debentures).

Empower Clinics

Empower Clinics (OTC PINK:EPWCF) announced it buying Lawrence Park Health and Wellness Clinic Inc., 1100900 Canada Inc dba Atkinson, and Momentum Health Inc. collectively. The deal is contingent on Empower completing a debt or equity financing to raise minimum gross proceeds of C$750,000. The company has entered into an agreement with Mackie Research Capital Corporation for a private placement of up to C$1,100,000. The private placement is scheduled to close on or about the week of November 2, 2020, and the acquisition is expected to occur on or about November 10, 2020.

Conferences

At a time when it seems like no one can see eye-to-eye on anything, there is one undeniable fact that most can agree on: something needs to change. Industry leaders are hoping that 2021 will be the turnaround after a monumentally tragic year where the lingering effects of COVID-19 changed how business was done and how we communicate with one another in the online and offline worlds. Not only did this impact high-volume in-person trade show events, but also supporting industries such as hospitality, travel, arts, and leisure.

Toronto-based cannabis events and marketing firm, Lift & Co, (OTC: LFCOF) which produces Canada’s largest cannabis expo, recently stunned industry insiders when it declared bankruptcy after laying off employees in March and postponing their annual November event.

In Other News

Vibe Growth

Vibe Growth Corporation (CSE: VIBE) (OTC Pink: VBSCF) announced preliminary unaudited third quarter 2020 financial highlights for the period ending September 30, 2020. All dollar amounts in this press release are in U.S. dollars.

  • Q3 2020 revenue is expected to exceed $7.25 million, a 28% sequential increase over Q2 2020
  • Q3 2020 revenue is expected to increase 74% over the year prior period
  • Q3 same store sales are expected to increase 45% over the year prior period

Growth in the quarter continues to be driven primarily by higher sales volumes and operational efficiencies at the Company’s dispensaries delivering a superior customer service experience. The Company expects to continue to report positive EBITDA and adjusted funds flow in Q3 2020 due to the strategic initiatives implemented earlier this year which resulted in improved margins and operating efficiencies.

“The Third Quarter will be the highest quarterly revenue ever for Vibe”, said Mark Waldron, CEO of Vibe. “Vibe continues to be rewarded by our loyal customer base for our inexorable focus on providing outstanding customer experiences and premium marijuana products.”

Harvest Health

Harvest Health Recreation Inc. CSE: HARV ) has entered into an agreement pursuant to which Eight Capital, as lead agent and bookrunner, together with a syndicate of will purchase on a “bought deal” basis 13,274,400 units of the Company at a price of $2.26 per Unit for aggregate gross proceeds to Harvest of $30,000,144.

Each Unit shall consist of one common share of the Company and one-half of one common share purchase warrant. Each Warrant shall be exercisable into one common share of the Company at an exercise price of $3.05 per common share for a period of 30 months from the Closing Date. If the daily volume-weighted average trading price of the common shares of the Company on the Canadian Securities Exchange for any 10 consecutive days equals or exceeds $4.97, the Company may, upon providing written notice to the holders of the Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice.



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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