Daily Hit Archives - Green Market Report

StaffStaffDecember 9, 2019
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4min1880

It’s time for you Daily Hit of cannabis financial news for December 9, 2019.

On The Site

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) named David Klein as the company’s Chief Executive Officer effective January 14, 2020. The company said that Klein has served in a number of senior leadership capacities over the past 14 years at Constellation Brands. His background includes extensive CPG and beverage alcohol industry experience, strong financial orientation, and experience operating in highly regulated markets in the U.S., Canada, Mexico and Europe. However, Klein has zero experience in the cannabis industry.

Cresco Labs

Cresco Labs (CSE:CL) (OTCQX:CRLBF) has completed its first harvest from its expanded cultivation facility in Lincoln, IL. The state will begin sales of legal adult-use cannabis on January 1 and is projected to be a $2-4 billion dollar market once it has matured and is expected to be one of the largest cannabis markets in the country.

Cresco has an advantage in the marketplace as the only operator in the state with three cultivation facilities and currently has 25% of the share in the medical market. It has 35,000 square feet of cultivation space across the three facilities.

In Other News

Holistic

Holistic Industries said it will make a $20 million investment in Madison Heights for its Michigan headquarters. The investment includes transforming the currently neglected property at 29600 Stephenson Highway, the vacant Fairlanes Bowling property, into a beautifully landscaped, environmentally friendly source of pride and an engine of economic development for the city and its residents.

Holistic Industries will soon break ground on the 65,000 square foot medical cannabis cultivation, processing and provisioning center. The facility will house Holistic’s flagship retail location, which will be a desirable destination for customers and patients from across the metro Detroit area and the state of Michigan.

MCOA

Marijuana Company of America, Inc. (OTCQB: MCOA), an innovative hemp and cannabis corporation, today announced the resignation of Donald J. Steinberg as Chairman of the Board, Chief Executive Officer, and Treasurer. Going forward, Mr. Jesus Quintero will serve as the Principal Executive Officer and Chairman of the Board of Directors of the Company along with Board Members Robert Coale and Edward Manolos. Mr. Quintero was already the Chief Financial Officer of the Company.

The new focus and goal of the Company will be to enter strategic acquisitions with various operational cannabis and hemp companies that are distressed in order to expand the Company’s vertical model. Additionally, the Company intends to expand its hempSMART™ branded product lines and marketing channels as well as launch other CBD brands using a direct to consumer sales approach.

iCan/Tress Capital

iCAN Israel-Cannabis and Tress Capital announced a strategic investment by Tress into iCAN.

Tress’s investment will align its mostly North American strategic cannabis investments with that of iCAN, an international cannabis incubator corporation based in Israel. The companies are working on joint strategic initiatives that create an unmatched global canvas of cannabis industry coverage and capabilities.

 


Kaitlin DomangueKaitlin DomangueDecember 5, 2019
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6min2290

Its time for your Daily Hit of cannabis financial news for December 5th, 2019.

 

On the Site

 

Greenlane Brings Keith Haring Artwork To The World of Cannabis

The company mostly known for Pax and Juul sales, Greenlane Holdings Inc.(NASDAQ: GNLN) is now producing a line of functional glassware with legendary graffiti artist Keith Haring’s work. The smoking accessories include small glass pipes, larger water pipes ashtrays and regular rolling trays.  The K.Haring Collection launches November 21, 2019, in Higher Standards stores and will be available online on November 25th at haringglass.com.

“As a longtime admirer and supporter of Keith Haring, his art, and his legacy, I am thrilled to introduce the K.Haring Collection,” said Sasha Kadey, Chief Marketing Officer of Greenlane and Creative Director for the K.Haring Collection. “The art world has long had an intertwined relationship with cannabis and has in many ways been instrumental in the advancement of the industry. The K.Haring Collection will help our mission to destigmatize and elevate the cannabis experience.”

Haring passed away in 1990 at the age of 31 in Manhattan from the AIDS disease. The Haring Foundation wants to continue to promote the artwork, but is also known for supporting not-for-profit organizations that help underprivileged children, as well as organizations involved in education, prevention, and care related to AIDS. Haring doesn’t have any cannabis images in his artwork, but his skateboard images are loved by the skateboard community which does support the cannabis community.

In Other News

Class Action Lawsuit Filed Against HEXO Corp.

 

The Schall Law Firm has announced a class action lawsuit has been filed against HEXO Corp., and encourages investors with losses in excess of $250,000 to contact them. The company is in hot water for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.

 

CBD Sparkling Water Company Makes a Splash in the Beverage World

 

Infuzed Brands is a zero-sugar, zero-calorie, all-natural CBD-infused sparkling water brand. The brand is blowing up on Instagram, and within a few short months, the product is now in shelves in over 100 independent retail stores across the United States. It is quickly growing into reaching the convenience store shelves, which is considered the “make or break” sector for emerging beverage brands.

 

Zenabis Stock Drops After Facility Fails EU Quality Inspection

 

Zenabis stock trading is down following reports that one of their facilities did not comply with the EU’s GMP requirements during an inspection last year. European Union regulators published a “statement of non-compliance with [GMP] good manufacturing practice” against Zenabis on November 27th. The inspection was conducted last December when it was determined that Zenabis did not meet the EU’s requirements.

 

 

 

 


Kaitlin DomangueKaitlin DomangueDecember 4, 2019
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5min2320

Its time for your Daily Hit of cannabis financial news for December 4th, 2019. 

On the Site

Banks Cleared For SARS Reports With Hemp Farmers

On Tuesday, The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), and the Office of the Comptroller of the Currency issued a statement clarifying banking rules around hemp customers.

The key takeaway from the statement is that banks no longer need to file the onerous Suspicious Activity Report, known as SARS for hemp farmers. The statement said, “Because hemp is no longer a Schedule I controlled substance under the Controlled Substances Act, banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if indicia of suspicious activity warrants.”

Sunniva Racking Up Default Notices As Turmoil Continues

Sunniva Inc.  (CSE: SNN) (OTCQB: SNNVF) has been named in a lawsuit, along with its wholly-owned subsidiary, 1167025 B.C. Ltd., co in connection with loans made by Matrix Venture Capital Management Inc.  to Sunniva on August 28, 2019 and October 11, 2019, respectively, in the aggregate amount of $7 million. According to the company’s November 26 finance statement, it said that in June 2018, Sunniva, through its subsidiary 116, entered into a $3.4 million mortgage to finance the purchase of land for the greenhouse facility in Okanagan Falls, British Columbia. “The mortgage is repayable on October 31, 2019, and has an interest rate of 5% per annum. This balance has been reclassified to Liabilities associated with assets held-for-sale (note 7). The Company has repaid $400,000 as of September 30, 2019, but is currently in default on the remaining balance.

Separately, in the company’s lastest MD&A dated November 26, Sunniva said that on November 25, 2019, it received a 30-day notice of termination and a notice of default from SPCL “for items related to payment of outstanding balances and failure to meet certain conditions of the Build to Suit Lease. In addition, the Company received a notice of default from a promissory note holder for not applying a certain portion of the note proceeds to agreed-upon outstanding amounts.

Additionally, the company has had many of its executives resign for various reasons, and the stock fell another 13% to lately trade at 23 cents. The 52-week high was $4.30.

In Other News

Canopy Growth Launches CBD Consumer Line in the U.S.

Canopy Growth has quietly launched its hemp-derived CBD brand, First & Free, in the 31 U.S. states that allow such sales. Company spokesperson Jordan Sinclair says early signs are “positive” with some orders successfully placed.

Exactus, Inc. Announces Closing of $2 Million Convertible Note

Extractus, Inc., industrial hemp farmer and manufacturer of hemp-derived products, announced today the closing of the initial tranche of a $2 million senior secured convertible note financing from a single institutional investor. The total net proceeds from the note are approximately $1.94 million, after deducting the initial purchaser’s discount, commissions and estimated offering expenses. The note consists of three tranches where the initial financing consists of the issuance of a note in the principal amount of $833,333.33, to be followed by a $277,777.77 tranche upon the filing of an S-1 and concludes with the remaining $833,333.33 to be distributed pending the S-1 becoming effective with 25% warrant coverage priced at 105% of the closing price on the subsequent closings. 

 


Debra BorchardtDebra BorchardtDecember 3, 2019
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5min2000

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

On The Site

Cresco Labs

Cresco Labs Inc.  (CSE:CL) (OTCQX: CRLBF) said that it has entered into an equity distribution agreement with Canaccord Genuity Corp. in which the company may sell up to C$55 million of subordinate voting shares. Cresco Labs said that it will use the money “for general corporate purposes (including funding ongoing operations and/or working capital requirements), to repay indebtedness outstanding from time to time, discretionary capital programs and potential future acquisitions.”

The deal is called at “At The Market” since the shares will be distributed at trading prices at the time of the sale, prices may vary between purchasers and during the period of distribution. The company said that the volume and timing of sales, if any, will be determined at the sole discretion of the company’s management and in accordance with the terms of the Equity Distribution Agreement.

Michigan

Over a year has passed since Michigan voted to legalize recreational cannabis for those 21 and older. Sales for adult-use cannabis began on December 1st and the Michigan Regulatory Agency reported that consumers spent $221,000 on their first day. People lined up for blocks in the cold to have a chance to buy legal marijuana for the first time.

Michigan already had a strong medical cannabis program already in place, bringing in approximately $970 million in sales this year. Though they have a strong medical program, at this time, Ann Arbor is the only place in Michigan where customers can purchase cannabis recreationally. Exclusive Brands, Arbor Wellness and Greenstone Provisions are currently the only three shops in operation in the state.

In Other News

Isodiol

Isodiol International Inc. (CSE: ISOL)(OTCQB: ISOLF) reported its FY2020 second-quarter results with revenues of $1.878M. The company attributes the decrease in revenue primarily to management restructuring and the continued focus on the long term, higher-margin growth. The company is in the process of adapting to the volatile market through a focus on rebranding strategies and restructuring our product line to better address changing market needs. The company reported a net loss of $3.2 million.

Willow Biosciences

Willow Biosciences Inc. (CSE: WLLW)(OTCQB: CANSF) announces that it has received final approval from the Toronto Stock Exchange to list its common shares on the TSX. The Common Shares will commence trading on the TSX effective as of the open of the market on Thursday, December 5, 2019. Upon listing on the TSX, the Common Shares will continue to trade under the symbol “WLLW”. In conjunction with listing on the TSX, the Common Shares will concurrently be delisted from the Canadian Securities Exchange.

Jushi Holdings Inc. (NEO: JUSH.B) (OTCQX: JUSHF) has received approval to begin trading its common shares on the Canadian Securities Exchange under the ticker symbol “JUSH.” The company expects to commence trading on the CSE as of the market open on Monday, December 9, 2019. In conjunction with the new listing, its common shares are expected to be voluntarily delisted from the NEO Exchange at the close of trading on or about Friday, December 6, 2019. Jushi’s shares will continue to trade on the OTCQX under the symbol “JUSHF.”

 

 

 

 


StaffStaffDecember 2, 2019
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9min2260

It’s time for your Daily Hit of cannabis financial news for December 2, 2019.

On The Site

Lil Wayne

The cannabis industry continues to see a crossover of rap artists entering the space. The latest is Lil Wayne who announced on Monday the launch of GKUA Ultra Premium. The GKUA Ultra Premium will offer a line of high-potency cannabis products designed to provide consumers with ‘the best high of their lives.’

“I used to just want to get high, now I smoke to get inspired,” said Lil Wayne. “With GKUA, I’m sharing a feeling that I love.”

SOL Global

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) delivered its second-quarter results in Canadian dollars with a net loss of $51.3 million loss and no revenues only a loss of $57 million versus last year’s loss of $17 million for the same time period. The second quarter of 2018 also experienced a net income of $179 million due to the gain on the sale of a subsidiary.

Hemp Farmers

Currently, there is a bit of confusion regarding the legalization of hemp as an industry in the States. This confusion leads the local government to ban new farmers from attending to their hemp gardens for fear of being penalized under the new law.

The next few paragraphs will hopefully clear all the confusion away and allow new farmers to work on their land without much hesitation and limitation.

Giving Back

Last week was Thanksgiving and many cannabis companies and dispensaries ran holiday promotions. However, some cannabis companies though treat every day like its Thanksgiving as they make giving back to the community part of the company mission. These are some of the cannabis companies who give back every day and not just at the holiday.

In Other News

Indus Holdings

Indus Holdings, Inc. (CSE:INDS)(OTCQX: INDXF), a leading, vertically-integrated cannabis company, announced its financial results for the fiscal third quarter ending September 30, 2019. All figures stated are in US Dollars. Revenue generated for the three-month period ending September 30, 2019, was $10.1 million; 94% year-over-year growth. Revenue for the nine-month period ending September 30, 2019, was $26.2 million; 140% year-over-year growth.

EBITDA for the three-month period ending September 30, 2019, was ($16.8 million), EBITDA for the nine-month period ending September 30, 2019, was ($22.9 million). EBITDA included ($5.4 million) in write-offs of certain inventory in net loss, foregoing any future remediation, labor, and sales costs required. The inventory adjustments included revaluation and write-offs driven by the company’s decision to discontinue certain emending processes as a result of enhancing internal quality metrics, changes in materials requirements, inconsistent laboratory testing in California, and the overall economics of re-blending and reprocessing.

Chief Executive Officer, Robert Weakley, stated, “The Company achieved a new revenue record – $10.1 million in Q3. While that represents a 94 percent year-over-year increase, we did expect more. Our projections were impacted by a cultivation contract that was not fulfilled in Q3 – we had contracted for 2,000 pounds of flower in the quarter, which did not pass our lab tests and pricing agreement, resulting in more than a $3 million negative revenue impact. At the same time, our own harvest, which we planned to have two weeks of sales in Q3, got pushed to the beginning of Q4.”

4Front Ventures

4Front Ventures announced the company’s Q3 2019 earnings. As previously reported, Systemwide Pro Forma Revenue, a non-IFRS measure, of $16,902,029, an increase of more than 20% over the previous quarter’s $14,058,442. As previously reported, IFRS Revenue of $7,517,621. The company also reported a net loss of $7 million.

True Leaf

True Leaf Brands Inc. (CSE: MJ) (OTCQX: TRLFF) announced its operating and financial results for the fiscal 2020 second quarter ended September 30, 2019. True Leaf Pet division reported revenues from global sales totaling $706,752 (CAD), a 70% increase over the first quarter of fiscal 2020 and a 24% increase year over year. The company also reported a loss of $1.8 million.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF)  reached a definitive Cannabis Material Purchase Agreement on November 29, 2019, with a Canadian Licensed Producer. Under the terms of the Agreement, Aleafia Health will sell 2,840 kg of dried cannabis flower at a price per gram of $2.50, generating $7.1 million in revenue. The transaction will include up to three shipments, all of which will be completed before January 31, 2020.

The dried flower was cultivated at Aleafia Health’s Port Perry Outdoor Grow facility, which yielded 10,300 kg in 2019. The yield figure is limited to dried flower only, and excludes stems or other parts of the cannabis plant.

Aurora Cannabis

Aurora Cannabis Inc.  (NYSE: ACB), the Canadian company defining the future of cannabis worldwide, today announced that one of the Company’s oil products has now been approved for use under Ireland’s new Medical Cannabis Access Programme (MCAP). Aurora’s High CBD Oil Drops received approval from the Irish authorities and have now been added to a regulatory schedule by the Irish Minister of Health enabling importation, prescribing and supply under the scheme and is to date, one of only two products to gain such authorization.

Aphria

Aphria Inc.  (TSX: APHA)(NYSE: APHA) announced that its subsidiary Aphria Diamond secured a credit facility, on November 29 2019, with a major Canadian chartered bank as sole arranger, sole book runner and administrative agent on behalf of a group of lenders for a committed senior secured credit facility of $80 million.


StaffStaffNovember 27, 2019
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6min3340

It’s time for your Daily Hit of cannabis financial news for November 27, 2019.

On The Site

Green Wednesday

While most people are starting to do Thanksgiving cooking on the Wednesday before, cannabis industry professionals prepare for one of the biggest sales days of the year. It’s known as Green Wednesday. Consumers stock up on cannabis for the holiday weekend that might be fraught with family tension.

According to new data by BDS Analytics, “In 2018, November 23rd had the highest cannabis sales of any other day during the entire month of November with over $6.2 million in sales on that day alone, which is 60% higher than the average daily sale day in November 2018 and accounted for over 5% of that month’s revenue.”

Busted Deals

The bear market for the cannabis industry is leading to the unwinding of deals that had great promise. Cannabis companies are no longer willing to write big checks with fingers crossed that the market will just continue to boom. Two of these deals were terminated after great fanfare.

Cresco Labs

Cresco Labs (CSE:CL) (OTCQX:CRLBF)  said it was ending its plan to acquire Florida-based VidaCann Ltd. which was originally announced on March 18, 2019. It was valued at $120 million when it was first announced.

SOL Global

SOL Global Investments Corp.’s (CSE: SOL) (OTCPK: SOLCF) said it decided against its deal with MCP Wellness to that was agreed to on April 23, 2019. SOL was to buy MCP Wellness for $35 million in cash and S$115 million in equity consideration in CannCure.

MCP is the Merida Capital Partners affiliate that owns the rights to own three Michigan cultivation licenses, a processing license, 9 licensed and operating dispensaries and 6 additional dispensary licenses, giving it the largest retail footprint in the state of Michigan.

Massachusetts

A year has passed since Massachusetts began sales its sale of legal adult-use cannabis and while the state showed no interest in rushing the matter, customers showed their interest as they rushed to the stores.

One year later, the state reported that licensees generated $393.7 million in gross sales and that 33 dispensaries had been licensed. The customer demand is high, but the inventory is low. There aren’t many licensed cultivators in the state of Massachusetts, leaving little room for excess.

In Other News

Dixie Brands

Dixie Brands Inc. (CSE: DIXI.U), (OTCQX: DXBRF) announced its third quarter 2019 financial results with revenue increasing 28% to $3,121,211 in Q3 2019, compared to $2,435,398 in Q3 2018. Sequential quarterly revenue increased, up from $2,995,310 in Q2 2019. Revenue growth was driven by sustained presence and increased dispensary penetration in established markets, increasing traction in the key California market, continued growth in Michigan, and the introduction of new products.

Net loss attributed to the Company in Q3 2019 of $4,915,807 was lower by $1,853,750 compared to the Q2 2019 loss of $6,769,557.  The lower net loss was due to more efficient general and administrative spending. The Q3 2019 net loss includes $2,245,413 of non-cash expenses resulting primarily from stock options issued as compensation for key management and external service providers. Dixie had $892,312 of cash at September 30, 2019.

MariMed

MariMed Inc. (MRMD:OTCQX) reported results for the quarter ending September 30, 2019. Filing of the Company’s 10-Q for the quarter was delayed awaiting receipt from GenCanna Global, in which MariMed, Inc. holds a 33.5% interest, of its operating results for the quarter., As previously reported, GenCanna experienced a major fire at its Kentucky facility in early November. Financial comparisons are to the same year-ago periods unless otherwise noted.

Total revenues increased 230.9% to $11.22 million compared to the same period of 2018. Of that total, cannabis revenues grew 24.1% to $4.21 million, while MariMed’s hemp division reported revenue primarily from seed sales, of $7.01 million in the quarter. Total operating income for the period increased to $973,000, up from an operating loss of $549,000. Overall, the Company reflected a loss for the quarter of $7.30 million primarily due to interest expense on short-term borrowings to fund hemp seed purchases, as well as the Company’s equity in the net loss reported by GenCanna. The GenCanna loss stems primarily from a one-time adjustment totaling $6.10 million relating to market value adjustments for product.


StaffStaffNovember 26, 2019
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7min2440

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

On The Site

FDA

On Monday, the U.S. Food and Drug Administration has issued warning letters to 15 companies for illegally selling products containing cannabidiol (CBD) in ways that violate the Federal Food, Drug, and Cosmetic Act (FD&C Act). The FDA also published a revised Consumer Update detailing safety concerns about CBD products more broadly. The FDA also indicated in the press release that it cannot conclude that CBD is generally recognized as safe among qualified experts for its use in human or animal food.

The warning letters sent to these companies were accused of using product webpages, online stores and social media to market CBD products in ways that violate the FD&C Act, including marketing CBD products to treat diseases or for other therapeutic uses for humans and/or animals. The FDA also noted that some of the products were marketed towards infants and children, which could have adverse reactions. Other violations include marketing CBD products as dietary supplements and adding CBD to human and animal foods.

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) reported first fiscal quarter revenue of $44 million, up 105% year-over-year and 5% sequentially. The company also reported an eye-popping net loss of $82 million. MedMen delivered an Adjusted EBITDA loss of $22.2 million for the quarter.

Approximately $7.4 million of rent expense was not included in Adjusted EBITDA for the quarter due to the application of IFRS 16 Leases. Adjusted EBITDA loss under the previous methodology would have been $29.6 million compared to a $39.4 million loss in the previous quarter.

“We entered Fiscal 2020 on a mission to build a more nimble and financially flexible MedMen,” said Adam Bierman, MedMen co-founder and chief executive officer. “As we right-size our organization and implement an intensified focus on free cash flow generation, our business will become more efficient, in turn allowing us to better serve our stakeholders. Through the successful execution of these goals, we expect MedMen will be EBITDA positive by the end of calendar year 2020.”

Green Growth Brands

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) reported its results for fiscal first-quarter 2020 ending September 28, 2019. Revenues for the period totaled $12.7 million, a 77% increase over the previous quarter. However, the company delivered a whopping net loss of $30 million versus last year’s net loss of $2.8 million for a net loss of 15 cents per share over last year’s net loss per share of three cents per share.

Harvest One

Harvest One Cannabis Inc. (TSX-V: HVT)(OTCQX: HRVOF) announced a net revenue of $4.1 million for the three months ending September 30, 2019, representing a 34% increase over the previous quarter, and a 142% increase over the same period in 2018. The company also reported a net loss of $5.2 million, which was slightly less than last year’s net loss of $5.7 million for the same time period.

Slang

SLANG Worldwide Inc. (CNSX: SLNG) reported its 2019 third-quarter revenue in Canadian dollars of $9.3 million which rose 29% over the $7.2 million of revenue produced in the second quarter of 2019. It easily overshadowed last year’s net revenue of $1.6 million for the same time period.  The company said that the increase reflected ongoing business strength in core markets and a favorable shift in product mix, including accelerating sales of premium products in the SLANG portfolio.

Slang also delivered a net income of $0.4 million in third-quarter versus net income of $17.5 million in the second quarter.  The company reported a net loss of $16 million in 2018 for the same time period.

In Other News

Origin House

CannaRoyalty d/b/a Origin House (CSE: OH)(OTCQX: ORHOF) has closed its previously announced non-brokered financing. In connection with the Financing, Origin House issued approximately 9,800,000 common shares of Origin House at a price of C$4.08 per Common Share for aggregate net proceeds of approximately C$39,600,000.

TGOD

The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (US:TGODF) entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. to purchase, on a bought deal basis an aggregate of 29,334,000 units at a price of $0.75 per Unit for aggregate gross proceeds to the Company of approximately C$22.0 million.

 

 


StaffStaffNovember 25, 2019
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7min1820

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

On The Site

Organigram

Organigram Holdings Inc. (OGI) (OGI) reported that its gross revenue grew to $19.2 million for the fourth quarter ending August 31, 2019, versus $3.1 million for the fourth quarter in 2018. The net loss for the 2019 fourth quarter was $22 million versus last year’s net income of $18 million for the same time period. The larger loss was due to “non-cash fair value changes to biological assets and inventories.”

For the full year, Organigram delivered net revenue of $80.4 million, which grew 547% over 2018’s $12.4 million. The net loss for 2019 was $9.5 million versus 2018’s net income of $22.1 million.

Four Biggest Fibs

The Facilities Are Fully Funded

On Oct. 9, 2019, The Green Organic Dutchman (OTC: TGOD) said in a press release that it was updating the market on credit financing. In the statement, it noted that “The Company may revise the construction schedule for its Ancaster and Valleyfield projects if it is unable to obtain sufficient financing on reasonable terms, within the required timeframe. There can be no assurance that this review will result in the completion of any financing transaction.” Basically, TGOD said it needed money to finish the projects as planned.

Business on a Budget

Guest Post by Joseph Collins, Content Director at The Amsterdam

Ever since states began to legalize medical and recreational marijuana, the cannabis business is booming. Eleven states and the District of Columbia have passed laws making recreational marijuana use legal. Another 22 states have laws legalizing medical marijuana. The Farm Bill of 2018 legalized hemp for industrial purposes, including the production of CBD oil.

It is not too late to get in on the profits by starting your own cannabis business. If you’re thinking that too much startup capital is needed, then take a look at these cannabis entrepreneurs.

In Other News

MJardin

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF), a leader in premium cannabis production, today announced its financial and operating results for the three and nine-month periods ending September 30, 2019. Revenue of $7.6 million, includes $0.8M contribution from Cheyenne since acquisition date; Generated positive Adjusted EBITDA of $0.5 million; Sequential revenue growth from AMI facility of 47% compared to the prior quarter.

”The third quarter results reflect another period of building out size and scale across our operational platform, which as expected comes with challenges in any business, however we continue to successfully tackle these issues as we execute against our strategic plans which are centred around growth and profitability in 2020,” commented Pat Witcher, CEO of MJardin. “We further reduced SG&A and have decreased those costs by 45% compared to Q2 2019. This allows us to focus on and effectively allocate resources to developing our product lines within Health Canada’s upcoming regulations around extraction, edibles and topicals. We continue to invest in these business lines on both sides of the border. Responsible deployment of capital to maximize shareholder value remains our top priority as we grow our operational footprint with accelerated revenue growth.”

GrowGeneration

GrowGeneration Corp. (NASDAQ: GRWG), the largest chain of specialty retail hydroponic and organic garden centers, with currently 25 locations, is pleased to announce that its common shares have been approved for listing on the Nasdaq Capital Market. GrowGeneration Corp. common shares will begin trading on NASDAQ on December 2, 2019 under the trading ticker symbol “GRWG.”

“This up-listing to NASDAQ is a major corporate milestone and reflects the financial performance of our Company. As the premier hydroponic supplier in the country, we continue to focus on expanding the number of garden centers, increasing our commercial portfolio of customers, focusing on the cutting-edge products, while expanding revenue and EBITDA. We believe our NASDAQ listing will increase long-term shareholder value by improving awareness, liquidity, and appeal to institutional investors” said Darren Lampert, CEO of GrowGeneration Corp.

True Leaf

True Leaf Cannabis Inc.  (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) has secured licenses from Health Canada to cultivate, process and sell cannabis for medical purposes pursuant to the Cannabis Act for its 18,000 square foot True Leaf Campus facility in Lumby, British Columbia.

The license allows True Leaf to begin cultivating, processing and selling medical cannabis from its facility immediately and to produce alternative cannabis products such as edibles, topicals, and capsules. True Leaf Campus sits on a 40-acre site of industrial zoned land wholly owned by True Leaf.

“Today marks an important milestone for True Leaf as becoming a licensed producer helps support the continued development of our therapeutic pet care products,” said Darcy Bomford, Founder and Chief Executive Officer of True Leaf. “Our facility is now licensed and meets EU GMP and HACCP standards. This is required for the ‘Cannabis 2.0’ market in Canada and also opens the door to export cannabis to the booming European market.”


Kaitlin DomangueKaitlin DomangueNovember 21, 2019
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3min3010

Its time for your Daily Hit of cannabis financial news for November 21st, 2019.

 On the Site

Tilt Secures More Funding, Not Out Of The Woods Yet

TILT Holdings Inc.  (CSE: TILT) (OTCQB: TLLTF) has closed an additional private placement of $10.2 million of senior secured notes from a syndicate consisting of existing shareholders and new investors, bringing to the total amount of the facility to $35.8 million, up from the previously announced maximum of $35 million. While Tilt has been quick to note that the company has reported net income for the quarter, unlike many other cannabis companies, it still isn’t completely out of the woods. Canaccord Genuity analyst Bobby Burleson pointed out that the company will continue to face vape headwinds. Jupiter is 70% of the company’s revenue and while sales have rebounded, Burleson said he expects the company crisis to continue to have an effect on fourth-quarter sales. Especially the ban that was recently lifted in Massachusetts.

In Other News

 GW Pharmaceuticals Stock Price To Recover After Adverse Effects Of Cannabis Collapse And Speculators

GW Pharmaceuticals produced excellent third-quarter results because of the steep decline in stock prices. There were some unrealistic expectations by some observers going into Q3 earnings, but the company is a strong buy for long-term play for active investors.

Why TD Ameritrade, HEXO, and L Brands Jumped Today

Despite the recent turbulent nature of cannabis stocks, some companies still gained. TD Ameritrade, HEXO, and L Brands were among the top performers. TD Ameritrade’s shares climbed 18% after investors learned they may be a possible acquisition target. HEXO saw a 33% jump after the judiciary committee voted to send legislation to the full chamber that would take cannabis off a list of illegal controlled substances. HEXO, in particular, has been hit hard with the illegalities surrounding cannabis lately, so investors will have a lot to gain with the company if the laws change. L Brands’ shares rose 10%, despite reporting tepid results from the third quarter.

 

 

 


Kaitlin DomangueKaitlin DomangueNovember 20, 2019
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8min3410

Its time for your Daily Hit of cannabis financial news for November 20th, 2019.

On the Site

House Judiciary Committee Approves MORE Act

In a 24-10 vote, the House Judiciary Committee approved the MORE Act that would effectively end marijuana prohibition on Wednesday. This is the first time that a congressional committee has approved a bill to make cannabis legal.

The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act was sponsored by House Judiciary Committee Chairman Jerry Nadler (D-NY) and would federally decriminalize and deschedule cannabis. In addition to that, the MORE Act contains strong social equity provisions with an emphasis on restorative justice for communities most impacted by cannabis prohibition.

TerrAscend Delivers Rising Revenue, Rising Expenses

TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF)  reported that its third-quarter for 2019 increased 53% sequentially to $26.8 million from $17.6 million in the second quarter. It was a large increase over the $1.8 million delivered in the third quarter of 2018.  All figures are reported in Canadian dollars. The company attributed the increase to higher overall sales in Canada as well as strong sales in the U.S. Late in the third quarter, TerrAscend acquired Ilera Healthcare, the owner of one of five fully vertically integrated licenses in the State of Pennsylvania.

Harvest Health Reports Earnings, New Financing, Changes CannaPharmacy Deal

Harvest Health & Recreation Inc. (CSE: HARV)(OTCQX: HRVSF) reported total revenue for the third quarter of 2019 of $33.2 million, an increase of 197% from $11.2 million in the third quarter of 2018. This was an increase of 25% sequentially. The net loss was $39.1 million for the quarter, which the company attributed to the cost of investments to support its growth initiatives, disclosed acquisitions and planned expansion. It was also announced that Harvest and CannaPharmacy, Inc. agreed to revise their pending transaction. “Under a new binding agreement, Harvest and CannaPharmacy have agreed to terminate their current agreement whereby Harvest would have acquired CannaPharmacy’s right to own or operate cannabis licenses in Pennsylvania, Delaware, New Jersey, and Maryland.”

In Other News

Green Thumb Industries Reports Increased Third Quarter Revenue 

GTI increased its 2019 third-quarter revenue increased 296% year-to-year to $68 million. The company’s EBITDA and adjusted operating EBITDA was $1.6 million and $14.1 million, respectively. Green Thumb Industries had a reported net loss of $17.1 million, as compared to the net loss of $22.2 million in 2019’s second quarter. Their current assets totaled $123.8 million and included cash and cash equivalents of $66.1 million, while total outstanding debt was $96.9 million. 

TILT Holdings Reports Earnings

TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) reported revenue of $46.1M in the third quarter of 2019, an 18% increase from the second quarter of 2019. The company also posted its first-ever positive adjusted EBITDA quarter, $2.7M, up from negative ($4.0M) in the second quarter of 2019. Third-quarter net income was $26.1M, compared to a net loss of ($48.9M) in the second quarter of 2019. When compared to the second quarter of 2019, the net income improvement reflects revenue growth, improved margins, and SG&A reduction to cost initiatives as well as a reduction in non-cash stock compensation expense due to forfeiture of legacy stock options.

iAnthus Earnings

iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) reported revenues of $22.3 million, up 16% from the prior quarter. The company recorded a third-quarter net loss of $15.3 million, compared to a loss of $9.3 million in the prior quarter. The company maintained expense discipline in the quarter, and began to see the results of planned procurement and expense control initiatives; adjusted EBITDA loss net of biological assets was $3.6 million, compared to a loss of $6.9 million in the prior quarter.

Canopy Growth Sued Again by Rosen Law Firm

Rosen Law firm filed a class-action lawsuit against Canopy Growth. The lawsuit seeks to recover damages for Canopy investors under the federal securities laws. According to the lawsuit, Canopy made false claims or failed to disclose that the company was experiencing a low-supply issue with its soft gel and oil products. 

 



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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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