Harvest Health & Recreation Archives - Green Market Report

Debra BorchardtOctober 1, 2021
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It’s official. Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) and Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) have completed their deal and are now the largest U.S. cannabis operator across a combined retail and cultivation footprint. The deal was valued at $1.2 billion and was announced in May 2021.

Harvest shares will be delisted from the Canadian Securities Exchange at the close of trading on October 4, 2021. Harvest shareholders each received 0.1170 of a subordinate voting share of Trulieve for each subordinate voting share of Harvest held.

“The closing of this transaction marks a transformational milestone in our company’s history and positions Trulieve as the leading medical and adult-use cannabis operator in the U.S.,” stated Kim Rivers, Chief Executive Officer at Trulieve. “I thank all our employees, both Trulievers and Harvesters, for their tireless efforts during this process. The combined footprint provides Trulieve with a solid foundation for continued growth and scale. We look forward to fully integrating Harvest as we continue to execute on our hub strategy in the U.S., creating an unrivaled brand and reputation in the marketplace and value for our shareholders.”

Largest Revenue

The combination of the two companies leads to one of the largest revenue producers in the cannabis industry. Trulieve alone delivered revenues of $215.1 million in the second quarter. It is one of the few large producers that are also profitable having reported net income of $40.9 million in the second quarter and an adjusted EBITDA of $94.9 million. For its part, Harvest reported revenues of $102.5 million, while its net loss before non-controlling interest was $19.2 million, and Adjusted EBITDA2 of $28.0 million. Together the two could have reported $317.6 million in revenue for the second quarter, the highest among U.S. public reporting cannabis companies. The combined companies are also sitting on a comfortable cushion of cash. Harvest brings to the table a solid cash booty of $289.0 million, as of June 30, 2021, while Trulieve brings a recently announced $350.0 million debt financing. Harvest is also contributing $55 million in proceeds from the sale of its Florida license.

“This combination brings together two companies with depth and scale in key markets, providing a platform for growth for years to come,” said Steve White, CEO of Harvest. “Trulieve’s customer centric values match well with Harvest’s dedication to improving lives through the goodness of cannabis.”

After the market closed on Thursday, Trulieve nnounced that it had received commitments for a private placement of 8% Senior Secured Notes due 2026 for aggregate gross proceeds of $350.0 million. Rivers said,“Our strong balance sheet and profitability allowed us to secure a cost of senior debt which we believe is the lowest for a public cannabis company to date. This financing will provide capital to retire a portion of Harvest’s debt when we complete our acquisition and will allow us to use our combined cash on hand to aggressively pursue strategic growth initiatives across key markets post-closing.”

Huge Footprint

Together the combined companies will command a retail network of 149 dispensaries across 11 states and three strategic regional hubs, with market-leading positions in ArizonaFlorida, and Pennsylvania. Trulieve will also be able to feature Harvest’s products in its stores. 


StaffSeptember 1, 2021
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Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) is buying a subsidiary of Harvest Health & Recreation Inc. (OTC: HRVSF) in an all-cash deal valued at $55 million. The company will be named Planet 13 Florida Inc. and will purchase a license to operate as a Medical Marijuana Treatment Center issued by the Florida Department of Health to the seller. The acquisition is dependent on the successful close of the Trulieve Cannabis Corp./Harvest arrangement transaction and the Florida Department of Health’s Office of Medical Marijuana Use approval for Planet 13 Florida.

“Florida has long been one of our most coveted markets with over 20 million residents, 130 million annual visitors and incredible consumer demand already demonstrated in the medical program. It was important for us to enter the market prior to a transition to adult-use to put the pieces in place to capitalize on this market in both the short and long term,” said Larry Scheffler, Co-CEO of Planet 13. “We are excited to introduce our best-in-class retail experience and portfolio of popular products to the Florida market and to continue to build the Planet 13 brand across the United States.” Planet 13 is known for its adult-use cannabis superstores in Las Vegas and Orange County. This will be a medical-use only location.

As of August 26, 2021, there were 22 companies with MMTC licenses with 371 dispensing locations across Florida. License holders are not subject to restrictions on the number of dispensaries that may be opened or on the number or size of cultivation and processing facilities they may operate.

“After a lot of planning on how we wanted to approach this market, now is the time for action. We are well-capitalized to complete the initial buildout of our cultivation and retail plan which includes a network of neighborhood stores in priority metro areas to support future SuperStores in Miami, Orlando, and other tourist destinations, said Bob Groesbeck, Co-CEO. We have a successful track record of completing large retail and cultivation buildouts on time and on budget. This expertise combined with our differentiated, experience-driven retail and diverse product portfolio gives us confidence moving into the Florida market.”

 


StaffAugust 10, 2021
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Harvest Health & Recreation Inc. (CSE: HRVSF) reported its financial and operating results for the second quarter 2021. The company delivered total revenue in the second quarter was $102.5 million, an increase of 84% from $55.7 million in the second quarter of 2020, and up 15% compared to $88.8 million in the first quarter of 2021.

The net loss before non-controlling interest was trimmed to $19.2 million for the second quarter, compared to $23.0 million in the first quarter of 2021.

“Our second quarter results demonstrate continued momentum as Harvest builds scale and expands in its core markets” said Chief Executive Officer Steve White. “We are focused on our key operational and financial priorities in 2021 as we work toward closing the pending acquisition by Trulieve.”

Harvest said it was keeping its full year 2021 revenue target of at least $400 million. Reported gross margins are expected to be at or above 50% and will likely continue to fluctuate from quarter to quarter.


Debra BorchardtJanuary 25, 2021
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Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) is getting a lift in its stock after the company announced the closing of a sale-leaseback transaction with Innovative Industrial Properties, Inc. (NYSE: IIPR) that will bring the company roughly $35 million. Harvest sold an industrial property totaling approximately 292,000 square feet for $23.8 million. The company also noted on Friday that it began adult-use sales in Arizona.  The stock rose by over 8% on Friday to lately sell at $3.40.

Along with the sale of the property, Harvest entered into a triple net lease with IIP.  Harvest said it plans to continue to operate the property as a licensed cultivation and processing facility and expects to recover up to approximately $10.8 million in tenant improvements from IIP.

“We are pleased to secure real estate financing to support expansion activities at our Alachua cultivation and processing facility,” said Chief Executive Officer Steve White. ” Florida is one of our core markets with a rapidly growing medical patient population. We look forward to opening new retail locations in Florida after additional capacity at Alachua comes online.”

Arizona

On Friday, Harvest also announced that it had begun its adult sales in Arizona. According to AZCentral, the Joint Legislative Budget Committee said that the 16% excise tax plus the regular sales taxes on recreational marijuana products would generate $250 million in revenue. Another study by Smart and Safe Arizona estimates the figure to be $300 million a year.

“We are thrilled to record the first sale and begin offering access to regulated and legal cannabis products to recreational customers on this historic day in Arizona,” said Chief Executive Officer Steve White. “Initial sales commenced only 80 days from the election and 54 days after the election was certified, representing by far the fastest launch to date in history. The Department of Health Services did an incredible job expediting this process, helping operators like Harvest sell recreationally to Arizonans 21 years of age and older. We look forward to serving both medical patients and recreational customers across the state at our retail stores.”

Harvest currently operates 15 dispensaries in AvondaleCasa GrandeChandlerCottonwoodGlendaleGuadalupe, Lake Havasu, MesaPeoriaPhoenixScottsdaleTempe, and Tucson supported by cultivation facilities in Camp VerdeEl MiragePhoenix, and Willcox and processing facilities in Flagstaff and Phoenix.


Debra BorchardtJune 23, 2020
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Harvest Health & Recreation Inc. (OTCQX: HRVSF) said that it has completed the initial closing of certain retail properties in California to Hightimes Holding Corp. as previously announced on April 28, 2020, and June 12, 2020. The deal was recently amended from the original 13 operational and pending properties to ten. Those terms have now been reduced to a deal now valued at $67.5 million. The terms are now $1.5 million in cash and a $4.5 million one-year promissory note with 10% interest and $61.5 million in Series A Preferred stock issued by Hightimes Holding Corp.

$4.5 million was due at the initial closing according to the SEC filing. The second closing, though is subject to various closing conditions and contingencies including third party and regulatory approvals. Harvest and its affiliates said they plan to sell additional equity and assets with respect to two planned dispensaries in California for a total consideration of $6 million in Series A Preferred Stock issued by Hightimes.

One of those third parties, Alexis Bronson says he hasn’t heard from High Times Chairman Adam Levine since the deal was originally announced. The property that he has gotten his license for is on Geary Street in San Francisco next to a Chanel boutique. The rent for the high-end location is an eye-popping $2.1 million a year. Bronson said that another cannabis MSO (multi-state operator) expressed interest in the location until seeing the rent and then backed out saying it was too rich.

High Times is well aware of the challenge it faces in trying to convince Bronson to come on board. In the purchase agreement, High Times acknowledged that “Harvest Health is currently engaged in litigation in the State of Washington with Kunkel which may affect the ability of Seller to obtain the Third-Party Approvals.” Ryan Kunkel is Bronson’s former business partner. He sold his half of the property without Bronson’s approval to Harvest Health, who in turn sold it to High Times. Several of the other Have A Heart dispensary properties have third parties in addition to Kunkel and there is no indication from these parties as to whether they are on board with High Times or not.

Original Terms

In the original purchase agreement, High Times was supposed to pay at the closing (a) USD$12,500,000 in cash inclusive of the Contract Deposits and (b) 675,000 shares of Hightimes’ 16% Series A voting convertible preferred stock. The Series A Preferred Stock has a value of $100.00 per share or $67.5 million. Other shareholders might not know that the Series A Preferred Stock has a priority on liquidation or a change of control of Hightimes over any
other series of preferred stock created by Hightimes or its Common Stock. Beginning in September 2020, the Preferred Series A was to begin the 16% payments. High Times paid $1 million in the initial deposit and owed $4 million 45 days from the effective date.

Publisher Woes

High Times has not reported any financial information on the company since June 2019. Due to the pandemic, all in-person events have been canceled. This was the main revenue producer for the company. The publisher also hasn’t printed a Dope or Culture magazine in months and this also accounted for a respectable source of advertising income. The flagship publication High Times is up-to-date online with its stories, but the last print edition looks to be April 2020. The company laid off writers and said that the loss of walk-in traffic to dispensaries caused it to suspend printed editions for now. Print magazines in general have struggled as the costs outweigh the consumers buying magazines.

The company has also experienced a revolving door of executives in the C-Suite with former Green Growth Brands CEO Peter Horvath becoming the latest to take on the role. His retail experience is seen as a strong point as the company pivots from publishing to retail.

Harvest Health Keeps Four

Harvest will retain four operating dispensaries located in Grover BeachNapaPalm Springs, and Venice and select licenses for potential retail locations in California following completion of this planned divestment.

 


Debra BorchardtApril 28, 2020
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High Times Holding Company has announced that it is buying 13 planned and operational California dispensaries from Harvest Health & Recreation Inc. (OTCQX: HRVSF) in what the company described as a “mostly stock deal” and is valued at $80 million. Hightimes said it intends to fully transform the cannabis retail stores to become High Times destinations. Hightimes Holdings plans to revamp the existing design and rebrand each dispensary to fit the High Times.

This follows High Times’ previous announcement to buy two dispensaries, one in Los Angeles and one in Las Vegas. However, neither of those announced acquisitions has closed just yet.

According to the statement, the Harvest Health parties are aiming to close the acquisitions no later than June 30, 2020, subject to the parties’ mutual agreement to extend the closing date. “This transaction allows Harvest to invest in one of the most iconic brands in the industry,” said Steve White, Harvest’s Chief Executive Officer. “As one of the pioneers of the regulated cannabis ecosystem, we have always admired the work of High Times and are excited to watch the High Times brand flourish, as they poise themselves to enter the cannabis distribution and retail spaces.”

Harvest Health Reshuffling

Harvest Health has been frantically reshuffling its strategy as the company called off its enormous Verano acquisition last month. That deal was originally valued at over $800 million. At the time White said, “We remain focused on the continued development of assets in our core markets including ArizonaFloridaMaryland, and Pennsylvania. Recent capital raising efforts have afforded the company sufficient resources to continue to invest in strategic projects while moving toward profitability.”

Harvest Health had started 2020 with breakup news from Falcon International. In January Harvest filed suit against Falcon International, Inc. asking to terminate the planned merger agreement and return the money Harvest paid to Falcon under the Merger Agreement. Falcon has said that Harvest owes the company $50 million in a breakup fee.

Just a few weeks ago Harvest announced that it would acquire Interurban Capital Group for approximately $85.8 million payable to acquire controlling interests in five Washington cannabis dispensaries or alternatively $12.4 million to acquire substantially all of the assets of these dispensaries. ICG’s assets include direct and indirect licenses and rights to acquire entities with licenses in CaliforniaIowa, and Washington. In addition, ICG is a service provider to these entities.

High Times Unfinished Business

High Times forges ahead despite turbulent times in the market. The decision to acquire the dispensaries also comes on the heels of yet another push to raise money from investors. In the throes of the COVID-19 pandemic, High Times was flooding email inboxes with almost daily requests to invest in the company. So, perhaps the company raised enough money to make this latest deal? The opportunity to invest has been extended again – this time to May 15, 2020. This latest press release also suggests interested investors call the company’s hotline. The minimum investment was bumped up from $99 to $220.

“We’ve long supported Harvest and the other cannabis-retail-trailblazers as they pushed forward despite changing legislation, insurmountable licensing fees, political stigma and, frankly, through a process that was designed to be difficult,” said Adam Levin, Hightimes Holding Corp.’s Executive Chairman. “We have enormous respect for the Harvest brand and look forward to ushering in the next generation of retail experience with Harvest as a significant shareholder in our company.”

This latest deal comes right after High Times said it had begun the process to acquire California-based cannabis holding company Humboldt Heritage Inc. and its subsidiaries Humboldt Sun Growers Guild and Grateful Eight LLC.

Hightimes Holding Corp. said it had inked a letter of intent to acquire Humboldt, which will give it “cannabis growing, processing and product manufacturing capabilities direct from the most coveted cannabis community in the world, Humboldt County.” The value of that was also not disclosed.

High Times Debt

High Times has total liabilities of $68 million according to the company’s latest filing. For the last six months ending in 2019, High Times brought in $10 million in revenue, but its operating expenses were $14 million. The bulk of that revenue came from events that accounted for $6.7 million. With the pandemic lockdown putting an end to events that revenue stream is all but gone for now. The company reported a net loss of $11 million for those six months.

“As of June 30, 2019, these outstanding debt obligations totaled $49,514, of which $1,490 is now in default and due on demand. However, of the $49,514 in debt obligations, upon consummation of our trading on the OTCQX or listing on another national securities exchange, more than $33,000 of the Company’s debt will be eligible for conversion into Class A Common Stock as follows: $15,362 of the above outstanding indebtedness will automatically convert into shares of our Class A Common Stock at $11.00 per share and up to $18,000 of such outstanding indebtedness is convertible, at the option of the holder, into shares of our Class A Common Stock pursuant to their respective agreements.”

More Shares Issued

Despite pricing the shares at $11 each and currently have roughly 24 million shares outstanding, on April 3, 2020, Hightimes Holding decided to do an 11-for-1 forward split of all shares of its outstanding Class A Common Stock effective on June 1, 2020, and (b) amend and restate the Company’s certificate of incorporation, effective as of June 1, 2020, to increase the number of shares of the Company’s authorized Class A Common Stock from 100,000,000 shares to 1,000,000,000 shares of Class A Common Stock.

24 million shares priced at $11 a share places the company’s market cap at $264 million.

Pivoting In A New Climate

Certainly, it makes sense in this COVID-19 climate to shift away from what had been a lucrative event space. The Cannabis Cup in Michigan last year by all accounts was a successful event in which thousands attended. However, it is unclear when events will be returning. The company’s other revenue stream of magazine advertising had also been lucrative, but the company has temporarily closed its Dope and Culture magazines due to Covid-19 issues and broken supply chains. The company plans on re-opening the magazines once the isolation and quarantine period has completely subsided.

Dispensaries have been the winners of the pandemic crisis, so if High Times can make that jump quickly, it could save the company.


StaffMarch 11, 2020
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Harvest Health & Recreation Inc. (CSE: HARV)(OTCQX: HRVSF)  announced the execution of a definitive merger agreement of the previously announced acquisition of Interurban Capital Group, Inc. (ICG), the resignation of Jason Vedadi from his role as Executive Chairman of the Board of Directors. Current independent Board member Mark Barnard will assume duties as Chairman of the Board. He brings significant leadership experience gained through executive roles with Diageo PLC and Unilever, among others.

ICG Acquisition

Harvest has said it would acquire ICG for consideration of approximately $85.8 million payable by issuance of 309,452 multiple voting shares, assumption of approximately $19.1 million of debt convertible into 205,594 multiple voting shares and payment of an additional $9.3 million upon exercise of a call option agreement to acquire controlling interests in five Washington cannabis dispensaries or alternatively $12.4 million to acquire substantially all of the assets of these dispensaries. ICG’s assets include direct and indirect licenses and rights to acquire entities with licenses in CaliforniaIowa, and Washington. In addition, ICG is a service provider to these entities.

“We are excited to welcome the Have a Heart dispensaries into the Harvest family,” said Harvest Chief Executive Officer Steve White. “The merger provides access to capital and a new set of shareholders that will provide Harvest with greater financial flexibility and resources to invest further in key markets such as ArizonaFloridaMaryland, and Pennsylvania.”

ICG will add to Harvest’s existing retail footprint with three open retail locations and seven potential retail licenses in California, five open retail locations in Washington state and two open retail locations in Iowa.

As of February 29, 2020, Harvest had US$50.9 million in cash and equivalents. Harvest expects to report fourth-quarter and full-year 2019 financial results during the week of April 6, 2020.

In addition to Vedadi leaving the board, Scott Atkison will be appointed to the Board. The company said that Atkison has decades of executive experience in the timber and cannabis industries and brings valuable expertise, networks and fundraising skills to Harvest


Debra BorchardtJanuary 21, 2020
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Two weeks ago, Harvest Health & Recreation Inc. (CSE: HARV)(OTCQX: HRVSF) filed suit against Falcon International, Inc. asking to terminate the planned merger agreement and return the money Harvest paid to Falcon under the Merger Agreement. That lawsuit alleged that Falcon’s principals stalled due to the falling share price of Harvest. Harvest went on to suggest that Falcon International engaged in illegal activities.

Today, Falcon has said that Harvest owes the company $50 million in a breakup fee. In addition to that Falcon said, “Amounts previously funded by Harvest to Falcon are convertible into Falcon equity at Harvest’s or Falcon’s option and, accordingly, are unlikely to be paid.”

Headed To Divorce Court

The original merger agreement dates back to February 2019, when cannabis stocks were still firmly in green territory, but then the bear market took hold and the entire sector saw stock valuations plummet. There was no provision in the merger agreement with regards to a stock selloff and according to the lawsuit, Falcon executives  James Kunevicius and Edlin Kim wanted to renegotiate the Merger Agreement which resulted in the June
7, 2019 Amendment. This increased the stock consideration to $240 million.

Harvest stock was trading roughly around $7.47 a share in February 2019, by August it was down to $3.19. It has lately recovered and was recently trading near $3.51, above its 52-week lows of $2.03.

Harvest said that by August and September, it had loaned Falcon roughly $47 million and still hadn’t closed the merger. Falcon began demanding more money according to Harvest suggesting Harvest would be in breach if it didn’t pay. Harvest was now questioning the use of the money that had already been sent. Despite that, it still looked like the merger would close in October 2019. This is when Falcon began filing “standstill agreements” and essentially stalled the closing process.

The two companies met at the MJ Biz Conference in Las Vegas in December. Harvest described it in this manner, ”

“The business meetings at the convention were non-productive, with one Falcon representative (Edlin Kim) appearing at the meeting with visibly large amounts of cash in his front pocket and back pocket and in a bag, and wearing what appeared to be many tens of thousands of dollars in men’s jewelry made of gold, and with both Falcon representatives (Edlin Kim and James Kunevicius) expressing no interest in doing any work to move the planned transaction with Harvest forward and, instead, stating openly that Falcon would not close the Merger Agreement, as amended, due exclusively to the decline in Harvest’s stock price.”

Harvest Lawsuit

The lawsuit from Harvest claimed that Harvest had performed all of its legal obligations, but that Falcon did not produce auditable financial information or records concerning its business operations and revenue despite repeated requests. Harvest also accused Falcon of transporting cannabis across state lines and that the company was not complying with California state law regarding the regulation of sales of marijuana.

Harvest said in the lawsuit that it has paid over $50 million in cash and advances, but that Falcon executives complain about being unhappy about the deal. Harvest said it wants its money back. Harvest also claims that Kunevicius and Kim pocketed a $4 million payment that was supposed to go to the company and have no intention of paying the money back and believe they are entitled to it.

 


William SumnerAugust 15, 2019
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It’s time for your Daily Hit of cannabis financial news for August 15, 2019.

On the Site

Trulieve

Yesterday, Trulieve Cannabis Corp. (OTCMKTS: TCNNF) (CNSX: TRUL) announced the release of its second quarter financial results. Year-over-year, Trulieve’s increased 149% from $23.3 million to $57.9 million. Keeping pace with revenue, operating expenses also rose from $6 million to 14.8 million, representing a 146% increase. Gross profit was $37.6 million, and the gross profit margin was 65%. Adjusted EBITDA was $31.6 million.

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) has reported its financial results for the second quarter, ending on June 30, 2019. Revenue rose from $19.2 million in the previous quarter to $26.6 million, representing an increase of 39%. If one were to include Harvest Health’s completed and pending acquisitions, quarterly revenue would be $78 million.

Money Moves From Aurora Cannabis, Green Growth Brands

Aurora Cannabis Inc.  (NYSE | TSX: ACB) said that it has secured commitments from an expanded syndicate of lenders led by the Bank of Montreal to amend and upsize its existing C$200 million secured credit facility.

Green Growth Brands Inc. (CSE:GGB) (OTCQB:GGBXF) said that it has entered into backstop commitment letters with each of All Js Greenspace LLC, Park Lane Capital Limited, and Chiron Ventures Inc. in which they have committed to subscribe for and purchase up to C$102,796,241 in the aggregate or roughly $77 million of convertible debentures to support the Company’s operations and capital needs.

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) stock dropped over 10% after the company announced its financial results for the first quarter ending June 30, 2019. The worst of the news in the release was that the company’s fiscal first-quarter net losses of C$1.28 billion, or C$3.70 a share, dwarfed last year’s losses of C$91 million, or 40 cents a share. The loss was attributed to a non-cash charge of $1.2 billion in Canopy’s extinguishing warrants related to the Constellation Brands Inc. (NYSE: STZ) investment.

In Other News

Vireo Health

Vireo Health International, Inc. (CNSX: VREO) (OTCQX: VREOF) announced that its affiliate, Ohio Medical Solutions (OMS), has been granted a Certificate of Operation by the Ohio Department of Commerce. OMS, which was previously granted a provisional processing license, will begin operations immediately. The license will allow OMS to purchase plant material from cultivators and manufacture Vireo-branded medical cannabis products.  “We are delighted that Ohio Medical Solutions will begin manufacturing Vireo products for the benefit of Ohio patients,” said Vireo CEO, Kyle Kingsley, M.D. “The City of Akron has been great to us and as our business grows, we look forward to continuing to create new jobs and make a positive impact on the local economy.”

Front Range Biosciences

Front Range Biosciences (FRB) announced that it has entered a collaborative licensing agreement with Steep Hill, and that it will acquire Steep Hill’s Genomics Research & Development team. The agreement will help accelerate FRB’s marker-assisted breeding program and develop new traits and varieties of hemp and cannabis. “The Steep Hill R&D team is among the top three cannabis genomics groups in the world, and we are very excited to welcome them to FRB,” said Dr. Jonathan Vaught, CEO and Co-Founder of FRB. “This acquisition is a major value inflection point for FRB…”

Medical Marijuana Inc.

Medical Marijuana Inc. has filed its financial results for the second quarter. Revenue rose 30.8% to $20.7 million. Gross profit was $15.4 million and adjusted EBITDA was $1.5 million. General and administrative expenses decreased from 21% of sales in Q2 2018 to 16% of sales revenue. “We are excited to continue our tremendous sequential success with the second quarter of 2019 proving to be the largest sales revenue quarter in the history of our Company,” said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. “As the world continues to become more receptive to learning about the benefits of hemp-derived CBD, we are enthusiastic about being at the forefront of the global cannabis industry which, according to Arcview Market Research, could be worth $57 billion by 2027.”


William SumnerAugust 1, 2019
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It’s time for your Daily Hit of cannabis financial news for August 1, 2019.

On the Site

Executive Spotlight: Jamie Warm, CEO and Co-Founder of Henry’s Original

Jamie Warm is the CEO and Co-Founder of Henry’s Original. Despite the young age of the legal industry, Jamie has only had one career: growing cannabis. At Henry’s Original,  his responsibilities include setting the overall strategic vision of the company, driving retail penetration and nurturing the financial health of the company.

Tribune Publishing Enters Agreement With The Fresh Toast For Cannabis News

The medical and recreational marijuana industry just received a major boost with consumers.   Like Walmart, Kroger, CVS, Amazon, and other retailers embrace CBD, now mainstream media is working to give consumers the knowledge on how to use and where to shop.   Tribune Publishing Co. (NASDAQ: TPCO), the owner of the Chicago Tribune, NY Daily News, Orlando Sentinel, South Florida’s Sun-Sentinel, Hartford Courant and more along with syndicating content to over 500 United States newspapers, has entered a partnership with The Fresh Toast, one of the largest cannabis media companies in the industry.

Nielsen Predicts Legal Cannabis Sales In The U.S. To Reach $41 Billion By 2025

Cannabis was featured in Nielsen Company’s Total Consumer Report 2019, with the data and information company predicting the sales of cannabis consumer packaged goods to rise 5x that 2018’s sales. They forecast that the sales of all legalized cannabis products in the U.S. could reach $41 billion by 2025.

In Other News

Aphria

Today, Aphria Inc. (TSX: APHA) (NYSE: APHA) announced their financial results for the fourth quarter, ending on May 31, 2019. Net revenue was C$128.6 million, up 75% from the previous quarter. Revenue from adult-use cannabis was C$18.5 million. Adjusted EBITDA from cannabis operations was C$1.9 million. The net loss was C$15.76 million.  “It’s a new day at Aphria. Our team’s solid execution across key areas of our business resulted in strong adult-use revenue growth and a profitable fourth quarter,” stated Irwin D. Simon. “Over the last six months, our organization identified immediate priorities to help generate substantial progress near-term and long-term.”

Harvest Health & Recreation

Harvest Health & Recreation, Inc. (CSE: HARV) (OTCQX: HRVSF) today preannounced its unaudited revenue for the second quarter. Revenue is estimated to be between $26-$27 million, and between $75-$77 million when counting pending acquisitions of Falcon, Verano, CannaPharmacy and Devine Holdings and the closed acquisitions of Leaf Life and Urban Greenhouse. The company will release its full financial results on August 15, 2019.

Cadiz Inc.

Cadiz Inc. (NASDAQ: CDZI) announced that it has entered a joint venture partnership with Glass House Farms, which is a division of California Cannabis Enterprises. Operating under the name SoCal Hemp Co., up to 9,600 acres of hemp will be cultivated at Cadiz Ranch in San Bernardino County, California. “The sun-drenched, isolated natural environment at the Cadiz Ranch is ideal for the commercial production of organically sun-grown hemp and natural hemp-derived products, including CBD, which are presently driving market growth,” said Glass House Farms President Graham Farrar. “With plants already in the ground at the largest agricultural operation in San Bernardino County, we are working closely with the team at Cadiz to leverage our collective strengths. We look forward to bringing our full operation online and being a long-term, trusted partner and resource to the local community, our customers and clients.”


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