General Cannabis Archives - Green Market Report

Debra BorchardtDebra BorchardtOctober 28, 2019
Colorado-1280x854.jpg

3min5090

General Cannabis Corp. (OTCQX: CANN)  entered into a non-binding term sheet to acquire substantially all of the assets of a licensed recreational cannabis retailer in Boulder, Colorado. This comes two months after the company said it was buying a Denver-based dispensary.  In August, General Cannabis made its move saying it was taking these actions based on the signing of Colorado House Bill 1090, a recently approved law allowing public companies to own Colorado-licensed cannabis companies.

The company’s statement said that it will pay half of the deal in cash and half in common stock.  Once the regulations surrounding the implementation of the law are finalized, the Company plans to enter into binding transactions for the licensed cannabis entities, including the business.

“We are pleased to announce our plans to acquire a fourth licensed Colorado cannabis operator,” said Michael Feinsod, Executive Chairman and Chief Executive Officer of General Cannabis.  “This planned acquisition would expand our retail business to Boulder. The Business we plan to acquire would provide another strong piece to our expansion strategy.  This facility would pair us with a premier retailer and expand our customer base, allowing us to leverage our skill set as HB-1090 is implemented.  We look forward to completing the transaction and integrating this facility, and its employee team, into the General Cannabis family.  This acquisition would bring our anticipated cultivation space to approximately 45,000 square feet, our anticipated owned dispensaries to three, and one infused products manufacturer license within the state of Colorado.

“We have been working hard looking for suitable acquisition candidates.  We approach the possibilities created under HB-1090 with a methodical and detailed plan for expansion into Colorado licensed assets,” said Hunter Garth, Vice President for Corporate Development.  “This potential acquisition is another carefully selected asset to add to our distribution portfolio.  We plan to continue to acquire additional licensed cannabis assets within Colorado and other regulated markets.  Our strong corporate platform can create a synergistic opportunity for Colorado operators looking to grow with us.”

Garth continued “We have built a strong corporate culture in Colorado that focuses on profitable growth while supporting the growth of our employees.  We continue to actively seek acquisition candidates in Colorado and other states with regulated marijuana systems.  General Cannabis’ ‘Succeed Here’ platform has proved to be an excellent way for entrepreneurs to grow their cannabis-related business in a multi-faceted challenging environment.”


StaffStaffAugust 8, 2018
daily_hit004-1280x533.png

7min7620

It’s time for your Daily Hit of cannabis financial news for August 8, 2018:

On The Site

Insys Therapeutics Inc.

Insys Therapeutics Inc. (INSY) delivered its earnings today after the market close and following an earlier announcement that it had settled with the Department of Justice. Insys said that it had agreed to pay $150 million over five years and “with the potential for contingency-based payments associated with certain events that, if they were to occur, management estimates would require additional payments ranging from $0 to $75 million.”

With regards to the company’s second-quarter earnings, Insys delivered gross revenue of $38 million versus last year’s $58.2 million for the same time period. Net revenue was $23.5 million, which missed analyst estimates by $2.4 million and fell dramatically from last year’s $42.5 million. The drop was blamed on lower gross revenue and returns of expired product.

Cannabis Lawsuit

There’s something rotten, it seems, in the state of CBD Naturals and its CBD-related claims. When Jared Berry’s brand CBD Naturals was recently selected as the exclusive distributor of a premier hops/humulus CBD isolate in the United States, he may or may not have expected that he would soon be served with a lawsuit.

The lawsuit comes off the heels of a contentious debate about the origin and trademark rights to extracting CBD from hops (the process trademarked humulus kriya), for which credit is to go to Peak Health Center. The process proves to be promising for CBD medicine as it as a derivative of a legal substance, promising consumers access to CBD in states that have laws against hemp or cannabis CBD.

Isodiol International Inc.

Isodiol International Inc. (ISOLD), a manufacturer of pharmaceutical grade CBD and CBD-based products, announced that its subsidiary, Iso-Sport, has entered into an agreement with ALTIS LLC. Based out of Arizona, ALTIS is a company dedicated to promoting Track & Field through multi-disciplinary unification of the sport and provides elite athletes a variety of services such as coaching, integrated support services, and education.

In Other News

General Cannabis Corp.

General Cannabis Corp (CANN) announced financial results for the quarter ended June 30, 2018. The company delivered a net of $3.6 million for the quarter a 130% drop from the previous year’s loss of $1.5 million for the same time period. The loss per share was ($0.10) versus last year’s loss of ($0.08). Revenues jumped to $1.1 million from last year’s $833,000.

SinglePoint Inc.

SinglePoint Inc. (SING) reported revenues of over $188,000 for the first quarter of 2018, which represents a significant increase as compared to the first quarter of 2017.  This revenue increase has been generated by successful acquisitions continuing to grow and operate, including DIGS and JAG. Acquisitions have been a key factor in starting to build a solid financial base.

Sugarmade, Inc.

Sugarmade, Inc. (SGMD), one of the largest publicly traded cannabis-related hydroponics supply companies returns to the OTCQB Venture Market trading venue as a fully reporting company with the U.S. Securities & Exchange Commission. Additionally, the Company makes comments relative to the strong revenue growth it is experiencing within the cannabis supplies marketplace.

Kush Bottles, Inc. 

Kush Bottles, Inc. (KSHB) acquired Summit Innovations in May of 2018, and now, with the launch of Kush Energy, has successfully completed a full integration. Kush Energy will focus on servicing the rapidly growing concentrates category, which in many primary cannabis markets now account for nearly half of all sales.  Kush Energy will operate eight hazmat compliant distribution facilities across the country, including a new location in Humboldt County in Northern California. Kush Energy’s core products are high purity butane, propane, iso-butane, ethanol, dry-ice and blends. The new division will also work closely with cannabis manufacturers and extraction facilities to ensure cleanliness, product quality, reliable supply, safety, and compliance during the extraction process.

Bespoke Extracts Inc.

Bespoke Extracts, Inc. (BSPK) has named JOH as the exclusive broker of Bespoke CBD products in the Northeastern Region of the United States. Founded in 1956, JOH (www.johare.com) is a national food broker recognized as one of the strongest brokers in the country with 17 offices and strategic partnerships across the U.S.  JOH will market Bespoke Extracts’ line of high quality, hemp-derived CBD products direct to retailers through its Specialty Natural channel.


Debra BorchardtDebra BorchardtJune 26, 2018
shutterstock_377287183.jpg

6min13500

Merger and acquisition activity in the cannabis industry is lit this year. So far in 2018, Viridian Capital reports that there have been 106 public and 26 private M&A deals in the cannabis industry for a total of 132 deals for the week ending June 8. Compare this to only 73 deals for the same time period for 2017 – an increase of 80%.

Cultivation and retail accounted for the most deals made, while the investment sector came in second and infused products & extracts were the third most popular sectors for deals.

“It seems to be a land grab based on valuations,” said Joe Hodas, COO of General Cannabis  (CANN). Some of the companies are putting up big numbers like MedMen (with a billion dollar valuation) that is leaving microcaps behind.”

The smaller companies are trying to compete with a market that is quickly leaving the small caps behind. Canopy Growth (CGC) is the leader in Canadian medical marijuana with a 15% market share according to a new report from Stifel. Aurora Cannabis (ACBFF) is acquiring MedReleaf and that is making them almost an equal player to Canopy. This means that two companies will own a third of the market for medical marijuana in Canada.

Looking ahead to the recreational market, the two leaders have signed supply agreements that would give them 46% market share. “The report said, “The consolidation in the category that would support a thesis of an oligopoly like structure prevailing that could benefit first movers and the category leaders.”

Hodas said General Cannabis is one of those companies that continues to look at acquiring microcaps. “We’re able to be flexible and opportunistic. We do a pretty aggressive due diligence and we bring valuations back in line with reality.” He said there is tremendous opportunity to acquire many smaller companies that started life at the beginning of the legalization effort a few years ago.

“The founders are tired and they are running out of money,” he said. “We provide some cash and liquidity and help them move the ball forward.” Some of the reasons why these companies make themselves so available for acquisition is that they underestimate the amount of capital and time to return money on investment and debt.

Hodas also noted that companies needed to have the right leadership in place and mentioned the implosion of wholesale cannabis broker Tradiv. Hodas was referring to Tradiv closing shop following the companies’ CEO admission of talking to God while tripping on acid in Alaska and in the process, investors lost their money on the investment.

Of course, Tradiv isn’t the only cannabis company that has flamed out. Hodas left the booming Smashburger franchise to join cannabis beverage company Dixie Elixirs. Dixie grabbed early attention in the cannabis product world and was expected to be a brand leader, but the company faced several challenges in 2017. Both Hodas and CEO Tripp Keber left the company, which recently secured new funding and licensing deals. “I hope Dixie succeeds and frankly I have equity in it,” said Hodas.

Many small companies see the valuations of much larger companies and feel they too should be awarded these outsize valuations. “We talk to companies that aren’t predicting crazy numbers and are back down to earth,” Hodas said. “The biggest issue with the industry and microcaps companies is they don’t have good proforma spreadsheets.”

This complaint was recently echoed by Emily Paxhia of Poseidon Asset Management. However, she said that as the industry has matured,  the small companies are becoming better prepared with their business documents. The weak spot that she has noticed is those small companies are good at getting started, but then management struggles at the growth stage. “I find I am often stepping into companies that we’ve invested in,” she said.

Tahira Rehmatullah of Managing Director at Hypur Ventures and CFO of MTech Acquisition agrees with Paxhia and said that she is also having to give hands-on help when she invests in small companies. “The CEO’s are doing everything themselves and that isn’t a roadmap for success,” she said.

Still, spreadsheets and management challenges haven’t kept these small cannabis companies from attracting the attention of investors or acquirors. The “Green Rush” is alive and active and while the unicorns may be getting all the attention, the microcaps are still in the game.


StaffStaffMay 14, 2018
daily_hit004-1280x533.png

7min9270

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.


StaffStaffApril 25, 2018
daily_hit004-1280x533.png

5min15350

Here’s your Daily Hit of cannabis financial news for April 25, 2018:

On The Site:

Zynerba Pharmaceuticals Inc. 

Zynerba Pharmaceuticals  (ZYNE) announced 12-month results for its cannabidiol (CBD) gel to treat adults with epilepsy. The data is being presented today at the Emerging Science session of the 2018 Annual Meeting of the American Academy of Neurology (AAN) in Los Angeles, CA. The company is saying that the data show over the long term that seizures are reduced, yet the placebo effects in the study weren’t published.

Weed Inc. 

Weed Inc (BUDZ) is a cannabis company based in Arizona and is operated by Martin, his daughter Nicole Breen and her husband Ryan Breen. The company says it is focused on the development and application of cannabis-derived compounds for the treatment of human disease. CEO Glenn Martin is now facing a new complaint by Travis Nelson, a former employee, and shareholder of Weed. He is being accused of insider trading an transporting cannabis across state lines.

In Other News:

Golden Leaf Holdings Ltd.

Golden Leaf Holdings Ltd. (GLDFF), a leading cannabis oil solutions company built around recognized brands appointed Karl R. “Rick” Miller, Jr. to the Company’s Board of Directors, effective April 17, filling a previously vacated board position. With his addition to the Board, he will join the Audit and Nomination and Compensation Committees.

General Cannabis

Lifestyle apparel manufacturer Chiefton Supply Co., a General Cannabis (CANN) company is surging into Spring 2018 with a distribution deal to supply national action sports retailer Tilly’s with its first hemp apparel brand. Customers can find the first run of Chiefton products in Tilly’s stores located in major malls from coast to coast, including Minnesota’s Mall of America, Dallas Texas’ The Galleria, Washington’s Tacoma Mall and Massachusetts’ South Shore Plaza, with more designs on the way as the season heats up.

MM Acquisition CO., LLC

MM Acquisition (MMAC) announced the official completion of its state-of-the-art indoor cultivation facility in Downtown Los Angeles. The $15.5 million, 36,000 square foot grow operation was completed in early 2018 and has just launched its first proprietary strain, Triple 7. The facility is currently growing 40 different strains and is able to produce 600-700 pounds of high-quality flower per month.

MMAC was founded by broadcasting, digital media and luxury automotive dealership entrepreneur Scott Ginsburg who saw a huge opportunity in the California cannabis market with LA at the epicenter. Ginsburg has made a significant personal investment combined with additional capital from a blue-chip group of investors that has now created a company with a state-of-the-art LA-based cultivation facility combined with its own retail dispensaries that will serve the Los Angeles market.

Honu Xpress, Inc.

Honu Xpress, Inc. announcde that on 4/20 the Company executed a binding Licensing and Service Agreement for exclusive rights to the  Mystabis inhaler technology. The rights activate after funding the transaction and meeting other customary terms.  The Mystabis Inhaler is a revolutionary patent-pending inhaler that provides pressurized metered-doses of cannabis oil directly to the lung’s capillaries with little to no exhale.


StaffStaffApril 23, 2018
daily_hit004-1280x533.png

6min12450

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.

 


StaffStaffMarch 13, 2018
GenCann.jpg

5min10810

General Cannabis (CANN) reported a 19% decrease in losses for the year ending December 2017 with revenue of $8.2 million versus last year’s revenue of $10.1 million. The loss per share was $0.40 versus last year’s loss per share of $0.66. The company said that as of December 31, 2017, it had an accumulated deficit of $34.8 million. Revenues for 2017 increased 18% to $3.5 million from $2.9 million. It had net cash of $5 million at the end of December 2017 versus $800,000 at the end of 2016.

“Fiscal 2017 was a transformative year for General Cannabis.  Our balance sheet has never been stronger.  Along with generating record revenues in 2017, we successfully paid down substantial amounts of debt, raised new equity, and significantly increased our book value,” said Robert Frichtel, Chief Executive Officer of General Cannabis.  “Our liquidity continued to improve in 2018, as we paid off all of our debt and generated an additional $4.2 million through the exercise of warrants and stock options.”

Chiefton Apparel

Revenues for the apparel line Chiefton recovered in the fourth quarter. The company said in its filing that in 2017 it experienced a drop in apparel sales and an increase in consulting revenue, as it dedicated resources to launching the design agency.   “Expenses for the design business during the first six months of 2017 were high, as we tried different approaches to establishing its operations, which negatively impacted costs and expenses.  We believe we now have an efficient model for Chiefton Design, with manageable, moderate recurring expenses.  In the third quarter of 2017, we hired a new managing director to drive Chiefton Supply’s apparel business, which contributed to increased sales in the fourth quarter of 2017.”

Security Segment

Revenues decreased 16% to $1.8 million in 2017 from last year’s $2.2 million due to the loss of a significant customer as a result of the drop in wholesale cannabis prices in Colorado. General Cannabis said that it was partially offset in the third quarter of 2017 by organic growth and our acquisition of Mile High.  The filing stated, “Costs and expenses typically vary with changes in revenue, however, the increase in costs and expenses in 2017 compared to 2016, relates primarily to overtime and training time for guards as our customer base recovered from the decline experienced during the first six months of 2017.  We also incurred additional expenses in 2017 for our expansion into California and overhead from the Mile High acquisition.”

Operations Consulting

Revenues in 2017 increased 193% to $1.2 million over last year’s $432,000 primarily due to General Cannabis’ assisting companies submitting applications to acquire licenses in states that recently legalized cannabis like California and adding a significant two-year contract in July 2017 to manage the cannabis grow facility for a customer.  Costs and expenses increased in 2017 primarily due to the company hiring new consultants to meet current and expected future demand for services, as well as the cost of the products sold.

Additional Management Comments

“Along with growth through acquisitions, we are also focused on organic growth and driving each segment to profitability,” said Joe Hodas, Chief Operating Officer of General Cannabis.  “I have spent extensive time with each of our segment leaders, diving into staffing models, revenue projections and challenges.  With initial analyses in hand and the existing General Cannabis infrastructure, I believe we can capitalize on new lines of business, cross-sale opportunities between segments, and operating efficiencies.  I am eager to work with the great team in place here at General Cannabis to drive strong top line and bottom line results.”

Michael Feinsod, Executive Chairman of General Cannabis, stated:  “Our business expanded during the year, which positions us for continued national expansion.  We will continue to hire talented executives to support our growth.  General Cannabis has never been in a better position to take advantage of our strong infrastructure and continue to focus on growth through acquisitions.  Our strong platform and corporate team can quickly help entrepreneurial cannabis companies achieve success.”

 


StaffStaffFebruary 20, 2018
Chiefton.jpg

4min12500

Colorado-based General Cannabis Corp (CANN), announced its highest quarterly revenue results for the fourth quarter ending December 31, 2017, and paid down its long-term debt.

The company delivered approximately $990,000 in revenues for an increase of 27% over last year’s fourth quarter. Annual revenues increased 15% to $3.5 million versus last year’s $2.9 million. The company did not report whether it had a profit or loss for the quarter or the year. There was no formal filing for the earnings, only a press release.

General Cannabis is the parent company for three underlying companies. Next Big Crop is a consulting firm, Iron Protection provides security services and Chiefton is cannabis clothing and graphic design.

Revenues

Iron Protection Group experienced decreases in revenue due to the drop in wholesale prices in Colorado. Revenues fell 11% for the quarter and 16% annually. The company acquired Mile High Protection Services in August 2017 to reduce its dependence on the cannabis industry. This company segment received a license to operate in California and hopes to see growth from this market in 2018.

Next Big Crop consulting was the most successful of the three companies with revenues increasing 323% for the quarter and 193% annually, although no sales figures were given in the press release.

Chiefton was reported to have a 95% increase in revenue for the quarter and a 26% increase for the year. The company said that it had added a new managing director in August 2017 to focus on its apparel business, which positively impacted revenues for both apparel sales and design revenue.

Elimination Of Debt

General Cannabis said in the press release that it had paid down all of its existing long-term debt.  The statement read, “In addition to raising $4 million through a capital raise in 2017, we have received an additional $3.5 million in funds through the exercise of warrants and stock options in 2018.  We used a portion of these funds to pay off the remaining $1,621,250 due under our 12% Notes in January 2018, and to pay off the $1,370,000 due under the Infinity Note in February 2018.”

“Our continued growth in revenue is a reflection of our ability to pursue opportunities from the expanded legalization of medical and recreational cannabis in numerous states,” said Robert Frichtel, Chief Executive Officer of General Cannabis.  “We also have achieved a significant milestone in the Company’s history, paying down our long-term debt.”

“We are now well positioned to continue our growth,” Frichtel added, “and focus on achieving profitability within each of our operating divisions.”



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


READ MORE



Recent Tweets

@GreenMarketRpt – 4 hours

Clever Leaves To List On NASDAQ $SAMA $NDAQ ⁦@clever_leaves⁩

@GreenMarketRpt – 7 hours

Leafs By Snoop Is Most Recognizable Brand Says New Study $CGC ⁦@SnoopDogg⁩ ⁦@MERRYJANE⁩ #LBS…

Back to Top

You have Successfully Subscribed!