Emblem Archives - Page 2 of 2 - Green Market Report

StaffMay 14, 2018
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It’s time for your Daily Hit of cannabis financial news for May 14, 2018.

On The Site

Canopy Growth

Canadian-based medical marijuana company Canopy Growth (TWMJF) announced that it has applied to the New York Stock Exchange (ICE) to list its shares. The company said that it expects to begin trading at the exchange by the end of May using the ticker symbol CGC. The company currently trades in Canada on the Toronto Stock Exchange using the symbol WEED and also on the OTC Markets with the symbol TWMJF. The New York Stock Exchange has been reluctant to engage with cannabis companies citing the legality of marijuana in the United States, although a handful of entities like Innovative Industrial Properties (IIPR) and India Globalization Corp. (IGC) have squeaked in. It seems Canadian-based companies pass the smell test since marijuana is legal in that country.

In other news, Canopy said that it planned to acquire 33% of BC Tweed Joint Venture Inc., which are the shares that it didn’t already own. That deal is expected to close in July and as a result, Canopy said it will issue $374 million worth of its common stock.

Aurora Cannabis

After denying rumors last week about a potential acquisition, Aurora Cannabis (ACBFF) announced that it was entering an agreement to acquire MedReleaf (MEDFF) in a deal valued at C$3.2 billion. The acquisition brings together two leading producers in Canada’s medical marijuana community enabling them to deliver a capacity of over 570,000 kg of cannabis a year. MedReleaf is known for its ability to reduce the cash cost per gram while still delivering a premium product, Aurora is equally known for its automated greenhouses and low production costs.

According to a company statement, MedReleaf shareholders will get 3.575 common shares of Aurora for each share they own of MedReleaf. The statement read, “Upon completion of the transaction, existing Aurora and MedReleaf shareholders would own approximately 61% and 39% of the pro forma company, respectively, on a fully diluted basis. The Exchange Ratio implies a price of C$29.44 per MedReleaf common share and a premium of approximately 34%, based on the 20-day volume weighted average prices of Aurora and MedReleaf common shares on the Toronto Stock Exchange as of May 11, 2018 .”

In Other News

iAnthus Capital Holdings

After the market closed on Monday,  iAnthus Capital Holdings (ITHUF) announced that it received $50 million investment from Gotham Green Partners, which management believes to be the largest investment to date by a single investor in a publicly traded U.S. cannabis operating company. The company plans to allocate the proceeds of this financing by repaying $20 million of a one-year note and accrued interest to VCP Bridge LLC, continued cultivation and dispensary build-outs in New York and Florida markets and potential expansion activities consistent with iAnthus’ strategic objectives.

Gloucester Street Capital

Gloucester Street Capital, an owner of one of only 10 medical cannabis cultivation and dispensary licenses in New York State, has closed a $6.5 million growth capital round. Viridian Capital Advisors, through its broker-dealer Pickwick Capital Partners, LLC,  served as the placement agent for the Company.

General Cannabis

General Cannabis (CANN)  announced first quarter financial results with revenues of $942,482, a 31% increase over 2017 first quarter revenues of $719,105.  The stock fell over 2% as the net losses rose 70% year over year to $4.4 million versus last year’s net loss of $2.6 million.
“We continue our focus on organic growth and driving each business segment to profitability,” said Joe Hodas, Chief Operating Officer of General Cannabis.  “We have an aggressive, but achievable, plan to grow revenue in each of our existing business segments, while also evaluating opportunities for operational efficiencies. Hodas continued, “While California’s regulated market’s rollout has been slower than anticipated, we made great progress in the quarter developing several key relationships that we believe will generate revenue for both our Security and Operations segments in the second quarter and throughout 2018.”

Emblem Corp.

Emblem Corp.  (EMMBF) and Canntab Therapeutics Limited (CSE: PILL) announced the receipt of Health Canada approval for research and development activities on oral sustained release formulations of cannabinoids, which are the proprietary products conceived by Canntab representing significant progress in Emblem and Canntab’s partnership to develop long-acting cannabis formulations.

Cannabis Wheaton Income Corp. 

Cannabis Wheaton Income Corp. (CBWTF) announced that it entered into a definitive licensing agreement with Dixie Brands, Inc. pursuant to which Cannabis Wheaton will have the exclusive license to Dixie’s intellectual property, product branding and formulation methodologies related to over 100 cannabinoid-infused products in Canada and Mexico.


StaffApril 27, 2018
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Here is your Daily Hit of cannabis news for April 27, 2018:

On The Site

Emblem Corp. 

Emblem Corp. (EMMBF) reported its fiscal 2017  results for the fiscal 2017 year with C$2.69 million in revenues versus C$277,000 in 2016 an increase of 873%. The company reported gross profits of C$490,000 versus a loss of C$260,000 in 2016. Emblem expects to generate a steady increase in gross profit during 2018 as it now has a total of five grow rooms completed and received a license in late 2017 for the sale of cannabis oil.

Still, the company delivered a loss per share of 14 cents, but this was an improvement over 2016’s loss per share of 44 cents. The net loss for 2017 was C$12.1 million, but this was lower than 2016’s net loss of C$17.3 million.

Cannabis Advertising Could Be Stricter Than Alcohol According To The NACB

In an effort to stay ahead of regulators and encourage ethical advertising practices in the industry, the National Association of Cannabis Businesses (NACB), the only self-regulatory organization for the U.S. licensed cannabis businesses, published advertising guidelines for industry players. The NACB Advertising National Standard was published Wednesday, April 25, 2018; the organization is accepting comments from members and the public until May 25, 2018. Comments will be reviewed and considered, and it’s possible that the standard will change as a result of public comment.

In Other News:

The Green Organic Dutchman Holdings Ltd.

The Green Organic Dutchman Holdings Ltd. announced that its common shares as well as the common share purchase warrants it issued pursuant to a warrant indenture dated November 1, 2017”) will begin trading under the trading symbol “TGOD” and “TGOD.WT”, respectively, on the Toronto Stock Exchange at market open on May 2, 2018.

The TSX previously provided approval to list the common shares and the November Warrants on the TSX. Detailed information about the listing is available in the Company’s amended and restated final long form prospectus dated April 20, 2018, which is available under TGOD’s profile on SEDAR (www.sedar.com).

The Cannabist Team Laid Off

Embattled Colorado newspaper The Denver Post is no longer staffing its groundbreaking, first-of-its-kind marijuana news vertical The Cannabist, newsroom leadership confirmed Friday—a decision that is surprising cannabis and journalism circles today.

The Cannabist was founded in 2013 by veteran journalist Ricardo Baca as the world’s first adult-use cannabis market was about to launch in Colorado. As The Post’sfirst-ever Marijuana Editor, Mr. Baca and his team created the site from scratch and developed a robust national readership that appreciated the unique vertical’s journalism-first approach to covering the newly legal industry, the policy surrounding it and the culture that grew from legalization.

Marcum Joins Green Rush

Marcum LLP, a top national NYC accounting and advisory firm, recently established its Cannabis Services Group. Cannabis companies need support, objectivity, and expertise, and Marcum is helping them establish their footing and support those who want to enter and succeed within this emerging sector.

Marcum is one of the first national accounting firms to venture into the cannabis industry (none of the Big 4 accounting firms have taken on cannabis clients) and they are already involved in deals, capital raises, and are helping a host of businesses such as dispensaries, growers, vape retailers, etc. on key issues. To date, much of Marcum’s efforts have been on the capital markets side –  serving as an auditor and advisor to companies entering (or considering entering) the public markets, raising private capital, and helping clients advance their business plans.


Debra BorchardtApril 27, 2018
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Emblem Corp. (EMMBF) reported its fiscal 2017  results for the fiscal 2017 year with C$2.69 million in revenues versus C$277,000 in 2016 an increase of 873%. The company reported gross profits of C$490,000 versus a loss of C$260,000 in 2016. Emblem expects to generate a steady increase in gross profit during 2018 as it now has a total of five grow rooms completed and received a license in late 2017 for the sale of cannabis oil.

Still, the company delivered a loss per share of 14 cents, but this was an improvement over 2016’s loss per share of 44 cents. The net loss for 2017 was C$12.1 million, but this was lower than 2016’s net loss of C$17.3 million.

Revenues

The company said in a statement that revenues of $1,740,000  were generated from dried flower sales to registered medical patients and $362,000 from sales to other licensed producers. The average selling price of total product sold to medical patients during 2017 was $8.24 per gram which was higher than 2016’s $7.01 per gram. Emblem received its license to sell cannabis oil during late 2017 and generated revenue from cannabis oil products of $18,000. During 2017, GrowWise Health Limited generated education fee revenue from other licensed producers of $514,000.

Management Comments

“2017 marked a transformational year for Emblem, as it achieved many milestones against product development (oils license received in Q4) and cultivation expansion. We are incredibly encouraged by the growth achieved through our patient acquisition efforts, the strategic partnerships formed with both Dosecann and Canntab, which position Emblem as a leader in product innovation, and the professional leadership team we began to assemble,” said Nick Dean, Chief Executive Officer and President of Emblem. “The revenue and gross profit achieved in 2017 is a testament that Emblem is building a company focused on achieving fundamental business objectives that will drive long-term value for our shareholders.”

Looking Ahead

Emblem said that in the first quarter of 2018 the company had already generated record revenues of C$1.2 million and increased the patient count by roughly 3,300 patients. The company signed an agreement to become a medical cannabis supplier to Shoppers Drug Mart Inc. and entered into a 3-year preferred supplier agreement with Fire & Flower Inc., a company it invested in as well. In addition to those items, Emblem raised C$53.8 million. in equity and debt financings. The company has a cash balance of approximately $80 million available to support its growth plans for 2018.

Stock Performance

Three analysts cover Emblem according to Yahoo Finance with an average target price of C$2.19. There were two buy ratings and one hold rating. The stock trading on the Canadian Exchange was lately selling at C$1.50 and the stock trading on the OTC Markets was lately selling at $1.15, down from its 52-week high of $2.21.


StaffApril 23, 2018
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This is your Daily Hit of cannabis news for April 23, 2018:

On The Site:

Maricann & Broken Coast Add More Capacity

Aphria Inc. (APHQF) announced that its subsidiary, Broken Coast Cannabis received a license amendment from Health Canada that provides Broken Coast with an additional 18,000 square feet of production space as part of its Phase III expansion, bringing total production space to 44,000 square feet.

In addition to Broken Coast, Maricann Group Inc. (MRRCF) announced that it received all of the necessary approvals from Health Canada to commence cultivation in Phase One of the company’s new facility in Langton, Ontario, Canada. This is Maricann’s third license issued by Health Canada. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft.  build out, with a designed expected capacity of producing 95,000 kg (based on conservative estimates) of dry cannabis flower per year to support existing and future patient growth.

Is YouTube Blocking Spanish Cannabis Channels?

For many Spanish-speaking cannabis users, Marihuana Television is their go-to source for all things cannabis. Featuring how-to guides and up-to-date news, Marihuana Television looks like any other mainstream YouTube channel but with cannabis; which is why many were shocked to find that the channel had been deleted with no explanation.

In Other News:

Nutritional High International Inc.

Nutritional High International Inc. (SPLIF) announced that it signed an agreement to purchase California-based Pasa Verde, LLC. a leading cannabis extraction and toll processing facility in Sacramento, California. Pasa Verde operates a 17,600 sq ft extraction facility in Sacramento’s “Green Zone” and was the first operator in Sacramento to receive its Conditional Use Permit. Pasa Verde’s large-scale facility is located in a fully-serviced industrial area and has excellent space and infrastructure to house a significant extraction and marijuana-infused products operation – capable of production volumes suitable for the California market which is expected to reach US$6.5 billion in annual sales by 2020.

Emblem Corp. 

Emblem Corp. (EMMBF) announced that it purchased C$2.5 million of units of Fire & Flower Inc. at a price of C$0.80 per unit as part of a larger unit offering conducted by Fire & Flower. According to the company statement, each unit consists of one common share in the capital of Fire & Flower and one common share purchase warrant entitling the holder thereof to acquire one (1) additional Fire & Flower Share at a price of C$1.05 per share for a period of two (2) years, subject to adjustments in certain events.

General Cannabis Corp.

General Cannabis Corp. (CANN) announced that it completed the closing of a private placement transaction with various private parties, including existing and new investors in General Cannabis. The company issued $5.54 million of senior secured promissory notes and an aggregate of 4,432,000 warrants to purchase common stock at the closing.  The notes bear interest at 8.5% per annum and are secured by all of the Company’s assets.  The warrants have an exercise price of $2.35 per share.  The proceeds of this debt raise will be used primarily to fund the company’s expansion and for working capital.

ABCD Cannabis Data

ABCD, a data-driven media campaign outlet, has released new data which reveals the number of marijuana head and grow shops in 120 cities around the world. This research, which builds on the 2018 Cannabis Price Index released earlier this year, reveals which locations around the world are ready to embrace cannabis legalization.

  • With a total of 156, Los Angeles, USA has the most headshops.
  • Madrid, Spain has the largest amount of grow shops, with a total of 68.
  • Tokyo, Japan has the most expensive cannabis, at 32.66 USD per gram, while Quito, Ecuador has the least expensive marijuana, at 1.34 USD per gram.
  • Based on the average US marijuana tax rates currently implemented, New York City could generate the highest potential tax revenue by legalizing weed, with 156.40 million USD per year. New York City also has the highest consumption rate of cannabis, at 77.44 metric tons per year.

 


StaffApril 16, 2018
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7min13680

This is your Daily Hit of cannabis news for April 16, 2018:

On The Site

Medicine Man Technologies 

Medicine Man Technologies (MDCL) announced today the preliminary financial resultsfor the quarter ending on March 31, 2018, and provided an update to shareholders on recent client activity. The company reported approximately $1.2 million in revenue for the quarter, a 122% increase over the same quarter last year and representing the fifth consecutive quarter of revenue growth. Expecting to reach the profit/loss breakeven point this quarter, the company has repaid all of its outstanding debt.

Aphria Inc.

Ontario-based Aphria Inc. (APHQF) reported that its revenues for the third quarter ending February 28 were C$10.2 million versus last year’ C$5.1 million for the same time period, an increase of 100%. Revenue increased 20% sequentially from C$8.5 million. Gross profits for the quarter were C$8.5 million over last year’s C$3.5 million. The net income for the quarter was C$12.9 million, a nice increase over last year’s C$4.9 million. The increase in net income relates to the strength of Aphria’s investment portfolio, including its realized gain on sale of its non-escrowed shares in Liberty Health Sciences, Ltd. in the quarter. 

 

MedReps

According to a March survey done by MedReps, 46% of pharmaceutical sales representatives reported that they expect medical marijuana legalization and stricter opioid laws to have a positive impact on their jobs.

MedReps, an online healthcare sales job site, conducted a survey of 500 sales professionals in medical and pharmaceutical sales, as well as non-medical and non-pharmaceutical sales.

 

In Other News

Veritas Pharma Inc. 

Veritas Pharma Inc.  (VRTHF) announced it entered into an agreement to acquire 50% of 3 Carbon Extractions Inc. The remaining 50% equity interest can be acquired by Veritas based upon a value to be decided by a qualified independent business valuator. The purchase price for which shall be paid in cash or in fully paid and non-assessable common shares of Veritas, or in a combination thereof, as may be determined by the Company in its discretion. The shareholders of 3 Carbon will receive aggregate consideration of $300,000 US and 1,500,000 common shares in the capital of the company.

Emblem Corp.

Emblem Corp. (EMMBF) appointed Maria Guest as Chief Marketing Officer to its executive team. The company also named Kim Horrill as Vice President of Medical Marketing and Tim Andrews as Vice President, Creative Director. The foregoing appointments remain subject to the approval of the TSX Venture Exchange. Prior to joining Emblem, Maria Guest spent 20 years building brands and developing new products and innovations within the highly regulated and competitive alcohol industry. Ms. Guest most recently led marketing efforts behind iconic brands like Corona, Stella Artois, Bud Light, Michelob Ultra, and Alexander Keith’s.

Aurora Cannabis Inc.

Aurora Cannabis  (ACBFF), CanniMed Therapeutics Inc. and CTT Pharmaceutical Holdings, Inc., announced that the three companies have entered into an agreement that provides Aurora, through its ownership of CanniMed, with joint exclusivity on the distribution in Canada of CTT’s novel, patented drug delivery technologies. This collaboration includes the licensing by CTT to CanniMed and Aurora of six patents related to cannabinoid delivery for pain management that will enable CanniMed and Aurora to exclusively develop and commercialize this unique, sub-lingual (beneath the tongue) wafer, drug delivery system in Canada.

Maricann Group Inc.

Maricann Group Inc. (MRRCF)  announced that it received an export permit from Health Canada for a shipment of dried cannabis flower to Germany. This is the first export permit that Maricann has received.


Debra BorchardtApril 11, 2018
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Here are your daily cannabis news briefs for April 11, 2018:

On The Site

Acreage Holdings

The big news this week is that former Speaker of the House John Boehner and former Massachusetts governor Bill Weld have joined the board at the up & coming Acreage Holdings. The company was formerly known as High Street Capital and initially got into the cannabis industry to make investments. It has pivoted from investor to owner and now has ownership of properties in 11 states. The company focuses on medical marijuana but expects to transition to adult-use as legality permits.

Altitude Investment Management

Altitude Investment Management raised  $18.7 million in capital from more than 50 investors for its fund Altitude Investment Partners, which invests in a range of early-stage to growth companies in the emerging legal cannabis industry. This is a major step toward the $50 million target the firm has set for the next 11 months.

WURK

Cannabis workforce software company Wurk announced that it has raised $3.2 million in a bridge funding round. The funding round included participation from both new and returning investors, including Poseidon Asset Management, which led the round, as well as Phyto PartnersAltitude Investment Partners, Arcview Investor Network and Arcadian Fund.

Other News

MedMen

MM Enterprises USA, LLC, better known as MedMen Enterprises, announced today that it has entered into a binding “Letter of Intent” outlining the proposed terms and conditions pursuant to which MedMen Enterprises will effect a reverse takeover of OutdoorPartner Media Corporation. MedMen Enterprises will become a publicly traded company through a reverse takeover, or RTO. In an RTO, the security holders of a private company that aims to become publicly traded take over an existing public company. OutdoorPartner Media Corporation is an unlisted Canadian public company.

 

Kush Bottles

Kush Bottles (KSHB) entered into a merger agreement to acquire Summit Innovations, LLC. As per the merger agreement, Summit Innovations, LLC will merge into a wholly-owned subsidiary of Kush Bottles in exchange for 1.28M shares of Kush Bottles common stock and $3.2M in cash, a portion of which will be held back to satisfy certain post-closing obligations.

MedReleaf Corp.

MedReleaf announced that it has completed a supply agreement with Société des alcools du Québec (“SAQ”) to supply the future Société québécoise du cannabis (SQDC) with high-quality adult recreational-use cannabis products in accordance with the previously announced Letter of Intent. Under the terms of the agreement, MedReleaf is committed to supplying the Quebec market with 8,000 kilograms of cannabis products per year with a minimum three-year term.

Emblem Corp. 

Fire & Flower, a corporate retail cannabis store, announces that it has entered into a preferred cannabis supplier agreement with Emblem Corp.(EMMBF). Fire & Flower plans to launch retail cannabis stores across Canada. Within Alberta alone, Fire & Flower has applied for 37 retail store licenses with the Alberta Gaming and Liquor Commission (AGLC). Its experienced, industry-leading team will continue to aggressively pursue applications for retail licenses in other provinces at its earliest opportunity.

 


StaffJanuary 12, 2018
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Toronto-based Emblem Corp.  (EMMBF) announced that it has entered into a letter of engagement with Eight Capital  to purchase 12,195,123 units  and 25,000 convertible unsecured debentures on a “bought deal” basis at a price per unit of $2.05  for gross proceeds of $25,000,002 and a price per convertible debenture of $1,000.00  for gross proceeds of $25,000,000, for total gross proceeds of $50,000,002.

Emblem has agreed to grant Eight Capital an over-allotment option to purchase up to an additional 15% of the units at the unit issue price. If this option is exercised in full, an additional $3,750,001 will be raised bringing the aggregate proceeds to $53,750,003. The deal is expected to close on or about February 2.

The company intends to use the proceeds of the Offering to fund strategic growth opportunities and for general and corporate purposes. Emblem Corp. is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the ACMPR (Access to Cannabis for Medical Purposes Regulations). It is led by a team of cannabis experts and former healthcare and pharmaceutical executives. It has three distinct verticals – cannabis production, patient education centers, and pharmaceutical dosage form development. Emblem trades under the ticker symbol EMC on Toronto Venture Exchange (TSXV).

According to the OTC Marketplace, Emblem has a market valuation of $91 million and as of December 15, 2017 short interest fell by 45%. The stock was lately trading at $1.52 on the OTC Marketplace, down from its 52-week high of $3.60.

In December CEO Nick Dean said, “With our oils license now in place and the adult-use market on the horizon, we are looking to significantly increase our cultivation capacity, while at the same time maintaining our commitment to produce high-quality product at low cost. Ultimately it’s about being relentlessly driven to deliver a strong return on investment and a solid balance sheet. We will also be mindful of strategic transactions and other opportunities to accelerate our growth objectives in Canada and international markets.”


StaffOctober 17, 2017
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Toronto-based Emblem Corp. (EMMBF) announced that it has entered into an agreement with Eight Capital in which Eight Capital will buy 5,714,300 units and 15,000 convertible unsecured debentures of Emblem on a “bought deal” priced at $1.75 CAD per unit. Altogether the gross proceeds are approximately $25 million CAD.

In a statement, the company also said it agreed to, “an over-allotment option to purchase up to an additional 15% of the Units at the Unit Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, an additional $1,500,004 CAD will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be $26,500,029 CAD.” The deal is expected to close on or about November 7 assuming it receives all the appropriate approvals.

The money will be used to fund construction of the first 100,000 square feet production facility on the 80n acre property located in Paris, Ontario that was acquired in May. The plan is to use this production facility to meet the needs of the adult recreational market once the program is established.

Eight Capital (along with any additional underwriters included in a syndicate of underwriters in connection with the Offering) will receive a cash commission equal to 6.0% of the gross proceeds of the Offering. Emblem “will also issue to Eight Capital (along with any additional underwriters) non-transferrable compensation warrants in an amount equal to 3% of the gross proceeds of the offering divided by the Unit Issue Price.”

Emblem made the announcement on Monday following the market close. The stock is up over 3,000% on the Canadian Exchange and was lately trading at $1.96 CAD, down from its year high of $6.44 CAD. On the OTC Markets, the stock was lately trading at $1.57, higher than its 52-week lows of $1.14, but still down from its year high of $3.81.

Emblem is a licensed producer of medical marijuana and has not generated any revenues. The Company produces approximately 55 kilograms per month of dried flower marihuana.

 


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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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