GrowGeneration Archives - Green Market Report

StaffStaffDecember 18, 2019
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4min4970

GrowGeneration Corp. (NASDAQ: GRWG) has purchased the assets of Portland, Oregon-based GrowWorld for an undisclosed amount. GrowWorld was founded in 2011 and is the largest retail and warehouse garden space by square footage in the state. In addition to that, it has the highest sales volume of a hydroponic store in Portland and the highest revenue in the state.

A GrowGen statement said that “The GrowWorld acquisition is our 8th in 2019, adding an accretive $5.0 Million in revenue to our Company.  GrowWorld is one of the largest hydroponic stores in Oregon and strengthens our position in the Pacific Northwest region, that currently includes our Seattle location. With over 700 commercial cultivation licenses and a strong medical caregiver program, we feel we can capture a large market share of the Oregon hydroponic supply market.”

GrowGen owns and operates 26 stores, which include 5 locations in Colorado, 5 locations in California, 2 locations in Nevada, 1 location in Washington, 4 locations in Michigan, 1 location in Rhode Island, 4 locations in Oklahoma,1 location in Oregon and 3 locations in Maine. GrowGen also operates an online superstore for cultivators, located at HeavyGardens.com.

Oregon Market

Oregonians will spend more than $1 billion on cannabis products in 2020, according to a new forecast.  That will rank the state fifth behind California ($3.1 billion), Washington ($2.28 billion), Colorado ($1.83 billion) and Massachusetts ($1.05 billion). In addition, there are more than 63,000 acres of hemp registered statewide.

Domination

Last month, GrowGen reported its earnings with net revenue increasing 159% to $21.8 million for the third quarter ending September 30, 2019, versus last year’s $8.4 million for the same time period. The company attributed the increase in revenues to the addition of 10 new stores opened or acquired after October 1, 2018, which delivered sales of $3.9 million in Q3 2019. Sales also increased as a result of the acquisition of a new store in mid-July 2018 that had sales of $2.3 million in the quarter and the new e-commerce site acquired in mid-September 2018  which had revenues of $1.4 million in the quarter.


StaffStaffNovember 25, 2019
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7min4260

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.”


Debra BorchardtDebra BorchardtNovember 11, 2019
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5min6310

Hydroponic and organic garden center chain GrowGeneration Corp. (OTCQX: GRWG) reported that its net revenue increased 159% to $21.8 million for the third quarter ending September 30, 2019, versus last year’s $8.4 million for the same time period. GrowGeneration also delivered a net income of $1,049,699 for Q3 2019 compared to a net loss of $(784,573) for Q3 2018, which was an increase of $1.8 million.

The company attributed the increase in revenues to the addition of 10 new stores opened or acquired after October 1, 2018, which delivered sales of $3.9 million in Q3 2019. Sales also increased as a result of the acquisition of a new store in mid-July 2018 that had sales of $2.3 million in the quarter and the new e-commerce site acquired in mid-September 2018  which had revenues of $1.4 million in the quarter.

Darren Lampert, Co-Founder and CEO, said, “The Company’s third-quarter financial results reflect our continued focus on revenue growth and EBITDA expansion. Our same-store sales were up 48% versus Q3 2018. We generated triple-digit growth in ColoradoMichigan and Nevada and double-digit growth in all other markets. Our online business rose over 1000% for the same period year over year.”

Lampert also noted that GrowGeneration Management Corp. is now approaching a $5.0 million per quarter segment of our business. Gross profit margins increased 420 basis points, to 29.9%. He added, “With our significant top and bottom-line growth, we were able to reduce our store operating expenses by 25% and our corporate overhead by over 25 % as a percentage of our revenue.” He said the company continues the rollout of its new ERP platform and is adding the California, Michigan, Maine, Oklahoma, Nevada and Rhode Island stores to the ERP system in 2019.  The GrowGen ERP platform is designed to lower costs, improve departmental productivity, integrate our online and store sales and supply channels and provides forecasting and reporting tools.

GrowGeneration said it has nearly $16 million in cash, which will allow it to close new acquisitions targets expected to close in the fourth quarter of 2019 and into 2020. The company has filed for a NASDAQ application and expects to have an update shortly. “We are raising our revenue guidance for 2019 revenue to $74M-76M and non-GAAP adjusted EBITDA of $.14-$.18 per share, based on 35.7 million shares outstanding.”

Management Changes

Last week, the company named Tony Sullivan as Executive Vice President and Chief Operating Officer of GrowGeneration, responsible for all operating departments and divisions, including Finance, Store Operations, E-commerce, Commercial, HR, Supply Chain / Logistics, Purchasing / Merchandise Planning, IT / IT Operations, Real Estate, Lease Administration, Store Maintenance, New Store Growth & Construction, and Administration. As of today, Joe Prinzivalli will be stepping away from his current role as the Chief Operating Officer and transitioning into a new role as Chief Technology Officer, continuing to lead our successful ERP implementation.

Tony most recently served as Executive Vice President and Chief Operating Officer of Forman Mills, a $300 million Private Equity sponsored business, prior to that Senior Vice President Operations for Dollar Express, a $500 million carve-out of 330 Family Dollar stores in 36 states, Private Equity sponsored business. Prior to Dollar Express, he was employed at Anna’s Linens for 9+ years where he served in several operating roles, most recently as SVP, Chief Operating Officer. Previously Tony served for 20+ years at Foot Locker Inc. leading 2100 + stores, 3 Divisions (Foot Locker, Kids Foot Locker, and Foot Action) over $2.5B in sales as VP Store Operations.


William SumnerWilliam SumnerAugust 8, 2019
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5min7640

It’s time for your Daily Hit of cannabis financial news for August 7, 2019.

On the Site

Cronos Group

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) reported financial results in Canadian dollars for the second quarter and first-half ending June 30, 2019, with net revenue climbing 202% to $10.2 million over last year’s $3.4 million. The revenue increased 58% sequentially from $6.5 million in the first quarter of 2019. The company attributed the increase to sales in CBD oil, which carries no excise tax reduction and increased sales of dry flower.

GrowGeneration

Today, GrowGeneration Corp. (OTCQX: GRWG) announced the release of the financial results for the fiscal quarter ending on June 30, 2019. Net revenue for the quarter was $19.48 million, up from $7.15 million in the same period of the previous year. The company attributes the increase in revenue to the addition of 14 new retail stores

SOL Global

SOL Global Investments (CSE: SOL)(OTCPK: SOLCF) is changing from an international cannabis investment company to a U.S. multi-state cannabis operator (MSO) under the Life Sciences category of the Canadian Securities Exchange. In addition to the business designation change, the company is also changing its name to Bluma Wellness.

In Other News

Diego Pellicer

Diego Pellicer Worldwide, Inc. (OTCQB: DPWW) announced that its Denver licensee reported record sales for the month of July and that its sales average has risen by 8.56%. “Diego Pellicer – Colorado has clearly proven that premium products plus outstanding customer service and a world-class shopping experience is a winning formula for success,” said Diego Pellicer CEO Ron Throgmartin.

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) announced that in July it served on average 1,937 customers per day with an average sale of $90.41 from the Planet 13 Las Vegas Cannabis Entertainment Complex. In May, the company accounted for roughly 10% of all cannabis sales in the state of Nevada, with a customer conversion rate of 60%. “We continue to drive impressive results from the SuperStore’s original 16,000 sq. ft. dispensary footprint in advance of the Phase II,” said Larry Scheffler, Co-CEO of Planet 13. “In May we reached an impressive milestone, the SuperStore accounted for 10% of all dispensary sales in Nevada. I’m optimistic we will see this trend continue once the department of taxation releases June and July numbers.”

C21 Investments

C21 Investments Inc. (CSE: CXXI) (OTC: CXXIF) released its unaudited financial results for the quarter ending on July 31, 2019. Unaudited revenue grew from $7.7 million to $9.8 million, representing a quarter-over-quarter increase of 27%. The unaudited gross margin rose from 43% to 49%. The company will release its certified financial results on or around September 12, 2019.

Cresco Labs

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced that it has received approval to acquire 100% 100% of the membership interests of Gloucester Street Capital, LLC, the parent company of Valley Agriceuticals (Valley AG). Valley AG is one of ten vertically integrated medical cannabis license holders in the state of New York. The license will give Cresco the right to operate one cultivation facility and four dispensaries in the state. The acquisition is expected to close by the end of the August.


William SumnerWilliam SumnerAugust 8, 2019
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3min7230

Today, GrowGeneration Corp. (OTCQX: GRWG) announced the release of the financial results for the fiscal quarter ending on June 30, 2019.

Net revenue for the quarter was $19.48 million, up from $7.15 million in the same period of the previous year. The company attributes the increase in revenue to the addition of 14 new retail stores, some of which were acquired or recently opened after April 1, 2018, as well as the launch of the company’s new e-commerce site. When combined, the new stores and the e-commerce platform contributed approximately $12.7 million in revenue. Gross profit also rose from $1.7 million to $5.8 million. As a percentage of sales, gross profit was 29.9%.

The cost of goods sold rose approximately 152%, from $5.4 million in the previous year to $13.7 million. The increase of costs was attributed to increased sales and the increase in the number of retail stores. Year-over-year, net income rose from a loss of $929,959 to a net positive of $1.06 million.

As of June 30, 2019, the company has approximately $17.9 million in cash and cash equivalents and a working capital of $29.6 milliom.

Operational Highlights

In the last quarter, the company appointed former Home Depot CEO Bob Nardelli as Senior Strategic Advisor and completed a $12.8 million financing round  led Gotham Green Partners, Merida Capital Partners and Navy Capital. GrowGeneration acquired six new retail locations in Denver, Colorado; Palm Springs, California; Reno, Nevada; and Manchester, New Hampshire. The company also opened new stores in Maine and Oklahoma.

“The Company’s second quarter financial results reflect our company’s continued focus on revenue growth and EBITDA expansion. We improved the financial performance of the Company in all areas.” said GrowGeneration Co-Founder and CEO, Darren Lampert. “The newly acquired stores and new store openings are all performing better than expected and have been successfully integrated into the operations of the overall company. The Company has nearly $18.0 million in cash, which will allow the Company to continue to grow at a rate of 100% year over year.”


Debra BorchardtDebra BorchardtApril 1, 2019
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6min7760

GrowGeneration 

GrowGeneration Corp. (OTCQX: GRWG) reported revenue of $29.0 million or 102% over 2017 revenues of $14.4 million. The company delivered a net loss of $5 million for 2018 a big increase over 2017’s net loss of $2.5 million. Gross profits were $6.4 million for 2018, as compared to $3.3 million for 2017, an increase of approximately $3.1 million or 97%. The company’s same-store sales, in the 4th quarter increased by 12.4%.

Darren Lampert, Co-Founder, and CEO, said, “This was our 5th consecutive year of record growth for GrowGeneration, with revenues growing over 100% year over year. GrowGen is now EBITDA profitable, starting in Q1 2019. We are forecasting 2019 revenue of $52M58M and adjusted EBITDA of $.12$.16 per share for 2019.”

Since the quarter ended, GrowGeneration made the following moves:

  • Q1 2019, acquired certain assets and product trademarks from the 3rd largest hydroponic distributor.
  • Q1 2019, we acquired 3 additional stores, in Denver, COPalm Springs, CA and Reno, NV.
  • Opened stores in Brewer, ME and Tulsa, OK.

Nutritional High

Nutritional High International Inc.  (CSE: EAT) (OTCQB: SPLIF) reported revenue of $6.1 million for the second quarter of 2019 from the sale of Cannabis related products in California primarily via its wholly owned distributor, Calyx Brands Inc. The company also reported a gross profit of $1.5 million, but a net loss of $6.8 million. At the end of January 31, 2019, the company has now recognized a trailing-twelve-month revenue from Cannabis sales of approximately $17.6 million.

Jim Frazier, Nutritional High’s CEO said, “With Q2 2019, we continue to deliver on our results. We have maintained and increased our revenue base in California, while also successfully executing on margin enhancing initiatives. Our plan to expand in other major US jurisdictions are starting to take further shape. Green Therapeutics continues to make strides towards vertical integration in Nevada and we are also laser-focused on expanding our product and commercial footprint in Oregon and Washington.”

The company continues to expand its California product portfolio by signing a letter of intent in January 2019, to purchase a controlling 51% interest in Tres Ojos Naturals, LLC d/b/a SolDaze. In January 2019, the Company entered into a license and trademark agreement with Docklight, LLC of Seattle, Washington, providing Nutritional High the rights to produce, market and sell inhalable cannabis products (whole flower, pre-rolls and oil cartridges) in the state of Washington and Oregon, under the iconic brand Marley Natural, which is the official cannabis brand of Bob Marley. Additional brands secured as part of the Docklight License include Dutchy, Headlight, Irisa, Grail, and Martian Gardens, which together with Marley Natural, are the “Branded Products”. In Washington, Nutritional High will sublicense the rights to manufacture the Branded Products to a locally-licensed facility, while production of Marley Natural will begin in short order in Oregon.

1933 Industries

1933 Industries Inc.  (CSE: TGIF) (OTCQX: TGIFF) reported that for the second quarter FY2019, the company had consolidated revenues of $3,720,993, gross margin of $2,088,740 and a net loss of $2,926,981. 

Mr. Chris RebentischUSA COO and Founder of Infused, said, “Year to date, the Company has experienced a steady 54% growth in sales revenues over the same period last year. Sales in Q2 were lower than in the previous quarter due to the performance of our AMA subsidiary, which experienced slower than expected sales due to challenges with yield and access to supply. We are seeing dramatic increases in yield and quality since appointing an experienced master grower.”

On March 13, the company announced a non-brokered private placement of 10,000,000 units at $0.45 per Unit for total proceeds of $4.5 million and subsequently announced its close on March 15th as the Offering was fully subscribed by one place.


StaffStaffAugust 14, 2018
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3min8540

GrowGeneration Corp.

GrowGeneration Corp. (GRWG), one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets, with currently 18 locations, reported financial results for its 2nd quarter ended June 30, 2018.

The company delivered revenue of $7.15 million, up 74% compared to revenue of $4.1 million for the 2nd quarter of 2017. Store operating costs have declined 13% from 18.2% for the 2nd quarter 2017 to 16.1% for the 2nd quarter of 2018. YTD revenue of $11.5 million, up 72% compared to YTD revenue of $6.7 million for 2017. YTD store operating costs have declined from 19.4% for the six months ended June 30, 2017, to 17.6% for the six months ended June 30, 2018.

The company had $17.4 million in cash and cash equivalents at June 30, 2018. As of June 30, 2018, the company had working capital of $24.5 million compared to working capital of $5.6 million at December 31, 2017.

Surna Inc.

Surna Inc. (SRNA) announced operating and financial results for the three and six months ended June 30, 2018.  Surna Inc. designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada.

The company reported that its Q2 2018 revenue was $2,008,000, a decrease of $47,000, or 2%, compared to Q1 2018.  It had Q2 2018 net bookings of $3,867,000, a decrease of $756,000, or 16%, compared to Q1 2018.  The ending backlog as of June 30, 2018, was $8,883,000, an increase of $1,859,000, or 26%, compared to the March 31, 2018 backlog, and its largest quarter-end backlog. The Q2 2018 gross profit margin was 26%, an increase of seven percentage points from its Q1 2018 gross profit margin.

CannTrust Holdings Inc.

CannTrust Holdings Inc. (TRST), a Canadian licensed producer of medical announced financial and operating results for the three and six months ending June 30, 2018. All amounts expressed are in Canadian dollars.

Revenue for the three and six month periods ended June 30, 2018 was $9,050,239 and $16,890,086 respectively, compared to $4,541,378 and $7,574,623 in the comparable 2017 periods. Net income for the three and six month periods ended June 30, 2018, was $104,905 and $11,547,015respectively, compared to a net income of $754,864 and a net loss of ($23,040) in the comparable 2017 periods.

Earnings for the current period were impacted by approximately $1.5 million of increased costs associated with the ramp-up of the Niagara Perpetual Harvest Facility. Earnings per share for the three and six month periods ended June 30, 2018, was $Nil and $0.12 respectively, compared to earnings per share of $0.01 and $Nil in the comparable 2017 periods.


StaffStaffMay 16, 2018
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6min8210

It’s time for your daily hit of cannabis financial news for May 16, 2018:

On The Site

NY Cannabis Taxes

On May 15, 2018, New York City Comptroller Scott Stringer published a report estimating the potential size of the state’s legal cannabis market and how much tax revenue it would generate for both the city and the state. According to the report, the New York state cannabis market could see up to $3.1 billion in annual sales, with up to $1.1 billion being generated in New York City alone. In terms of tax revenue, legal cannabis could generate up to $436 million for New York state and $336 for New York City.

MariMed Inc.

The U.S.-based medical marijuana company MariMed Inc. (MRMD) stock jumped 13% after it reported its first-quarter financial results for 2018 with revenues increasing 81% to $2.08 million compared to $1.15 million first quarter of 2017.  The company attributed the increase to the expanding operations of MariMed’s medical marijuana clients from real estate revenue, management fees and licensing fees.

Unfortunately, the company delivered a net loss of $1.83 million in the quarter versus net income of $0.11 million for the quarter last year.  MariMed said that the loss was blamed on non-cash equity compensation and debt settlements in 2018 that it said would have no impact on operations/cash flow. MariMed happily reported $251,166 of operating income in first quarter of 2018, an increase from $228,552 for the same time period in 2017.

GrowGeneration Corp.

Denver-based hydroponic retailer GrowGeneration (GRWG) reported that its revenue for the first quarter of 2018 increased 70% to $4.4 million versus $2.6 million for the 1st quarter of 2017. Gross profits rose 75% to approximately $1.2 million compared to approximately $.68 million for the same time period. Still, the company delivered a net loss of $953,430 versus last year’s net loss of $283,309. The stock fell over 7% to $4.70 on the earnings announcement.

After a rocky start at the beginning of the year, the North American Marijuana Index is starting to show some signs of a recovery. In the month of April, the North American Index gained 3%, led primarily by the huge gains in the U.S. market. The U.S. Marijuana Index gained approximately 19% in April; six companies on the index gained 20% or more and another ten companies gained more than 10%. The average trading volume on the U.S. Index also increased by 77%, compared to the previous month.

In Other News

Merida Capital Partners 

Merida Capital Partners a private equity fund targeting fundamental growth drivers underpinning the rapid development of the cannabis industry announced it has crossed $50MM in assets under management (AUM) and closed transactions in nine companies in its second Fund. With the full deployment of Merida’s first tranche of Fund II and the opening of the firm’s second investment tranche, Merida Fund II will continue its focus on high-conviction investments in leading companies that have crossed the ‘fragmentation gap’ yet need strategic capital to profoundly accelerate their respective growth curves. Merida will also focus on businesses implementing capex-lite models in the traditionally capital-intensive verticals of cultivation, dispensing, and life sciences.

Invictus MD Strategies Corp.

Invictus MD Strategies Corp. announced that it has entered into a binding letter of intent for an option to acquire 100% of the outstanding shares of an applicant under the Access to Cannabis for Medical Purposes Regulations from OptionCo current shareholders. OptionCo has two properties. One is located in Delta, British Columbia (“Delta Facility”) and is a state of the art, pharmaceutical grade, cannabis production and research facility, which has been submitted to Health Canada for final review and approval under the ACMPR. The Company expects to receive its cultivation license for the Delta Facility in Q2 of 2018.  The other property is located in Mission, British Columbia


StaffStaffMay 16, 2018
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4min7361

Denver-based hydroponic retailer GrowGeneration (GRWG) reported that its revenue for the first quarter of 2018 increased 70% to $4.4 million versus $2.6 million for the 1st quarter of 2017. Gross profits rose 75% to approximately $1.2 million compared to approximately $.68 million for the same time period. Still, the company delivered a net loss of $953,430 versus last year’s net loss of $283,309. The stock fell over 7% to $4.70 on the earnings announcement.

The company said that the increase in the net loss from 2017 to 2018 of $670,121 was primarily due to increases in non-cash expenses, share-based compensation, and amortization of debt discount which accounted for $456,455 of the increase. Non-cash share-based compensation increased $139,200 and non-cash amortization of debt discount increased $317,255. Other increases in corporate overhead as discussed above accounted for the remaining $213,666 increase.

Darren Lampert, Co-Founder, and CEO said, “This was another great quarter of sales for GrowGeneration, clearly demonstrating the demand for our products and the scalability of our business as we continue our expansion plans.” Lampert went on to say, “Our company continues to attract capital, raising $10.2 million in debt and equity financing for the quarter ended March 31, 2018, strengthening our balance sheet to $8.8 million in cash and $14.3 million in working capital. Today, we have a strong balance sheet of almost $18 million in cash and strong strategic partners in Gotham Green Partners, Merida Capital Partners, and Navy Capital. Our acquisition pipeline is robust, totaling over $25 million. For 2018, the company has set revenue guidance at $37 million.”

Same Store Sales

GrowGeneration had the same 9 stores opened for the entire first quarter for 2018 and 2017. These same stores saw the sales increase 3.4% to $2.6 million in sales for the 2018 first quarter versus $2.5 million for 2017. The revenues in the first quarter tend to typically be lower due to shorter growing seasons.

Cash

The company also reported that it has working capital increased roughly $8.7 million to approximately $14.3 million versus approximately $5.6 million as of December 31, 2017. The company attributed the increase in working capital to the receipt of proceeds from a convertible debt offering of $9 million and proceeds from the exercise of warrants and options of $1.2 million. At March 31, 2018, we had cash and cash equivalents of approximately $8.8 million.


StaffStaffApril 16, 2018
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4min13960

The cannabis industry continues to see a lot of acquisition activity.

GrowGeneration Corp.

On Monday morning GrowGeneration (GRWG) said that it has purchased Michigan-based Superior Growers Supply. GrowGeneration said it will consolidate an estimated $4 million in revenue following the deal. SGS is a destination location with over 20,000 sq. foot of warehouse and retail space. SGS has retail stores in Lansing, South Lansing, and Livonia, with distribution facilities in the Lansing area.

GrowGeneration CEO Darren Lampert said, “SGS, one of the original hydroponic retailers, strongly positions GrowGen in the Michigan market and will add $4 Million to our top line revenue to our consolidated financial statements. Adding the team at SGS and its iconic stores is a major win for GrowGen’s portfolio.  We have a strong acquisition pipeline and look forward to continuing our rapid expansion plans in 2018.”

Canopy Growth Corporation

Canopy Growth Corporation (TWMJF) said that it has signed definitive agreements to acquire the Czech Republic’s Annabis Medical. This company currently imports and distributes cannabis products pursuant to federal Czech licenses, with products for sale through pharmacy channels across the Czech Republic. Its founder and CEO, Dr. Robin Kazík, will lead the Czech subsidiary as part of the larger Canopy Growth family. The deal is valued at C$2.5 million.

The acquisition of Annabis Medical will build on Canopy Growth’s position in the European medical cannabis space and follows the recent agreement with Spain’s Alcaliber S.A. Additionally, Canopy Growth currently supplies the German market through its subsidiary, Spektrum Cannabis GmbH, and has formed a partnership, Spectrum Cannabis Denmark ApS, which is licensed to cultivate cannabis in a 40,000 square meter greenhouse production facility located in Odense, Denmark.

Pivot Pharmaceutical Inc.

Pivot Pharmaceuticals  (PVOTF) announced that it has terminated the previously announced letter of intent that it had entered into for the acquisition of Agro-Biotech. According to the company statement, Pivot is currently reviewing the legal alternatives available to it to obtain recovery from Agro-Biotech of the amounts expended by it in the pursuit of this transaction, as well as further damages resulting from the non-completion of the transaction.

“Despite our extensive efforts, we have been unable to complete the acquisition of Agro-Biotech in accordance with the terms and conditions initially agreed upon by the parties. While we are extremely disappointed with this outcome, Pivot continues to pursue other value-enhancing opportunities for the Company and its shareholders,” said Patrick Frankham, CEO of Pivot.

 

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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