hemp Archives - Green Market Report

Debra BorchardtDebra BorchardtAugust 4, 2020
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4min750

Arkansas-based beer distributor Premium Brands of Northwest Arkansas is adding a hemp beverage to its lineup. Premium Brands currently have distribution agreements with MillerCoors (NYSE:TAP), Corona (NYSE:STZ), Yuengling, Pabst Brewing, Boston Beer, Mike’s, Seagram’s, and Heineken USA to name a few.

Good Hemp, Inc. (OTC: GHMP) makes Good Hemp Fizz and CannaHemp beverages, which is a line of naturally flavored waters infused with 10mg of THC-free hemp extract and prebiotic fiber. The company says that unlike other hemp-infused beverages that contain CBD, its products are made with hemp seed oil which is categorized as “GRAS” (under sections 201(s) and 409 of the Federal Food, Drug, and Cosmetic Act, and therefore not subject to FDA review and approval).

“Hemp Infused beverages is a growing category, and we are excited to add a solid brand like Good Hemp Fizz and CannaHemp to our non-alcoholic portfolio,” said Heath Sutherlin, GM at Premium Brands. Sutherlin continued, “We look forward to working with the Good Hemp reps for a strong Labor Day rollout and building a long-term successful partnership in the territory.”

Premium Brands will distribute Good Hemp Fizz and CannaHemp throughout 11 counties in northwest Arkansas servicing approximately 900 C-stores, grocers, and liquor stores.

Beverage Market

Mazakali wrote a white paper on cannabis drinks and it stated, “Infused drinkables currently hold a market share of under 1% in the US, a figure that is far too low when compared with industry estimates for a $2.8 billion global cannabis beverage market by 2025. Advances in cannabis science along with the thirst for a healthier alternative to alcohol are but two factors behind this anticipated growth.”

The market is being flooded with hemp drinks of all sorts these days.  The hemp-infused beverage market is expected to reach $2.8B by 2025 with a CAGR of 18%.

Constellation Brands had been expected to create its own line of cannabis drinks with its investment in Canopy Growth. Its current slate of drinks includes a Houseplant-branded Grapefruit beverage with 2.5 milligrams of THC, Tweed’s Bakerstreet & Ginger and Houndstooth & Soda drinks containing 2 milligrams THC as well as a high-potency Deep Space cola with 10 milligrams of THC, the maximum under Canadian regulations.

“We are excited to add Premium Brands to our distribution network,” said Rise’ Meguiar, VP Sales and Innovation at Good Hemp. “They are a well-established distributor in NW AR, and by adding them to our network, our products will now be widely available across the northern part of the state.”

 

 


StaffStaffJune 22, 2020
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4min5600

The environmentally-safe hemp apparel line DRIHP  has chosen actress/philanthropist, Bella Thorne as an ambassador for the clothing line. Influencers Rachel Cook and model and social media personality, Jay Alvarrez have also joined as Brand Ambassadors.

Thorne said, “It’s important for me to use my voice to spread the beauty and knowledge of this world.  It was mind-blowing to find out that so many people when you discuss hemp put it in the same category as cannabis. It was crazy to watch how their minds would automatically shut down to the concept.  When Luke approached me about DRIHP, I was like, yes, yes… Let’s save the planet dude and let’s educate the world on this wonderful, amazing product, that we can make clothes out of, build houses with, eat when we are hungry, the uses for it are virtually limitless!  Hemp is the answer to saving the planet and I am stoked to be able to play a small part of that education. If you can change one person’s mind… you can help change the world.”

DRIHP was founded by a millennial entrepreneur, Luke Dandrea, who is also the founder of the hemp flower, hemp seed and hemp crop insurance company, Clone Connect.  With its multiple uses, Dandrea’s mission is to educate the consumer one product at a time on how industrial hemp is the game-changing component in the science of global warming. One of the many uses of industrial hemp is textiles, which is what DRIHP is focused on.

The fibers from the stalks of a hemp plant create eco-friendly hemp apparel and the H in DRIHP stands for Hemp. DRIHP textiles use 1/20 of the water that is required to grow and process traditional cotton fabrics. The line will carry men and women’s clothing and accessories. DRIHP is currently giving away 20,0000 breathable and stylish hemp face masks to customers that go to the website and sign up.

Thorne a long-time cannabis enthusiast is the co-founder of her own very successful cannabis and CBD brand line called Forbidden Flowers, which launched through Glass House Group in October 2019.  Understanding the history of hemp, she thought it was important to jump on board to this project to help educate her fans, etc. about the environmental benefits of hemp and clear up some of the misconceptions of placing hemp in the same category as cannabis.

 


StaffStaffApril 6, 2020
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8min23710

Editors Note: This is a guest post by Jonathan Davies of Beeco.

They are both natural plant fibers. Yet, in this article, we will see that natural doesn’t always mean eco-friendly!

On one hand, we have cotton, the king of the fashion industry. But does being the most used fiber for clothing worldwide make it the best option?

Hemp, on the other hand, doesn’t know the same popularity. But again, does that lack of use make it a bad clothing alternative? By the way, if you still see hemp as rough, stiff fabric, let these hemp hats convince you of the opposite!

In the current economy, we all know popularity doesn’t always mean the best. Low production costs, low retail prices, and good marketing are often the main ingredients of success.

But let’s take popularity out of the equation and compare both fabrics for their inherent qualities.

Actually, let’s add a third contender in that competition: organic cotton.

Which of the three fabrics is the best for the environment?

You may already have an idea of the answer, but read until the end… you will see that as it’s often the case, eco-friendly goes hand in hand with quality!

Cotton, does it deserve the throne?

Cotton has been used to make clothes for more than 7000 years. Useless to say that it’s here to stay!

It’s understandable….

Cotton is natural, biodegradable and makes a great clothing fabric as it is soft, breathable and lightweight.

However, the king of the clothing fabrics has a huge environmental issue at the growing level.

Firstly, the amount of water required to grow the cotton plant is tremendous when compared to the amount of usable cotton produced by the plant.

In fact, it takes around 2700 liters of water to grow enough cotton to make one simple t-shirt…

Then, while the manufacturing process of the cotton fabric itself doesn’t require intensive use of chemicals, it doesn’t mean those are out of the picture. Actually, chemical dyes are often used for regular cotton.

Finally, the fabric is a victim of its success.

Being the most common clothing fabric worldwide, demand is huge and cotton producers often have to rely on chemical fertilizers and pesticides to grow cotton faster in order to meet that demand.

And where do most of these fertilizers and chemicals end up? In rivers…

Considering that India is the largest producer of cotton in the world, and that the country is facing a crisis in terms of availability and quality of drinkable water, cotton fabric isn’t only creating environmental issues, but ethical concerns as well!

What about organic cotton?

Organic cotton has been created as an eco-friendly alternative to traditional cotton.

The difference?

Organic cotton producers fix the environmental issues at both the growing and manufacturing steps.

This means organic cotton is grown from non-GMO seeds and without the use of fertilizers. When it comes to pest control, insects are used instead of harmful pesticides.

Also, way less irrigation is required as a clever soil rotation system is used by the farmers in order to maintain soil fertility. In terms of numbers, this system needs around 85% less water than the traditional growing way.

Then, the bad chemicals used during the traditional cotton’s manufacturing process are replaced by environmentally-friendly alternatives such as water-based dyes.

Organic cotton also generally offers a much better textile quality than traditional cotton. The crops are not only healthier, but they are also harvested by hand, which preserves the softness of cotton much better than when harvested by machines (like it’s the case with traditional cotton).

Why don’t we replace traditional cotton with organic cotton then?

Organic cotton takes more time than traditional cotton to grow, to harvest and to manufacture. Which means that the demand for cotton couldn’t possibly be met with organic cotton.

Plus what makes traditional cotton so attractive is its low price, and organic cotton being more complex, it is also more expensive.

Hemp, marijuana’s cousin

Here comes the last contender, and let’s cut to the chase, it is our clear winner here!

Actually, hemp is considered one of the most eco-friendly clothing fabrics you can get.

And maybe this is the fabric that should be king.

Why?

As we stated in the title, hemp comes from the cannabis Sativa plant. Yes, the same plant that is used to produce marijuana and hashish. Yet, the psychoactive effects of the plant are not the reason behind that coronation. (In fact, industrial hemp has a really low concentration of THC).

Hemp is actually one of the fastest-growing plants in the world as it takes only 3 to 4 months to reach maturity. And a single hemp plant yields 220% more fiber than a cotton plant!

Moreover, it needs very little water to grow and it is naturally pest resistant. And the best? Hemp’s roots are actually beneficial to the soil as they protect it from toxins and erosion.

In three words: hemp is strong!

And your clothes will be stronger as well. Plus, that fabric is perfect for hot climates as it is very breathable and has great antibacterial properties.

So hemp grows fast, without the need for much water or chemicals and it provides much more fiber than cotton… all that while being beneficial to the soil…

Then why isn’t hemp everywhere?

We like to believe that hemp will rule the fashion industry soon. In reality, hemp’s popularity is growing as more and more brands are including the fabric in their collections.

The fabric suffered from a few drawbacks and that’s mostly the reason for its delayed popularity.

Indeed, it’s only in the 1980s that experts managed to manufacture a hemp fabric soft enough to be an alternative to cotton.

Then most people don’t differentiate industrial hemp to marijuana as a drug, and the fabric suffered from this reputation. For example, it’s only up to recently that the ban on hemp farming has been lifted in the US.

Hemp is also currently more expensive to produce than both traditional cotton and organic cotton, which doesn’t help.


Kaitlin DomangueKaitlin DomangueFebruary 26, 2020
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10min8770

It’s time for your Daily Hit of cannabis financial news for February 26th, 2020. 

On the Site

U.S. Hemp Could Benefit from the Coronavirus

As a major supplier of cut-rate hemp fiber and CBD for the world market, China has proven stiff competition for United States’ suppliers both domestically and internationally. The disruption of that supply chain by the coronavirus outbreak means that U.S. producers could finally gain an advantage in domestic and international markets.

MedMen Reports Revenue Of $44 Million, But A Net Loss Of $96 Million

MedMen Enterprises Inc.  (CSE: MMEN) (OTCQX: MMNFF) delivered its financial results for the second quarter of 2020 ending December 28, 2019. Revenue across MedMen’s operations in California, Nevada, New York, Illinois, and Florida increased to $44.1 million for the quarter, up 50% year-over-year and 11% sequentially. 

The net loss for the quarter was a staggering $96 million versus last year’s $64 million. The loss per share was ($0.09) versus last year’s ($0.23), so some improvement there.

Surviving Legalization 

Green Market report republished a story from Cannabis Law Report, diving into what has happened to the Emerald Triangle, and specifically Humboldt County, since legalization. The article is a response to the article “Cannabis Regulation: The Struggle of Small Farmers,” written by Lance Griffin. The responding article notes that legalization has been a disaster for Humboldt County, but not necessarily for their growers and shifts some of the blame of the financial crisis of Humboldt County since legalization to the Board of Supervisors and the Planning Commission, and pins the greatest responsibility of Humboldt County’s financial disaster on the “cadre of consultants, experts and advisors who took so much money for knowing only a little more than their clients.”

 

Acreage Holdings Reports 2019 Revenue Of $74 Million, Net Loss Of $195 Million

 

Acreage Holdings, Inc. (ACRG-U.CN) (ACRGF) delivered fourth-quarter revenue of $21.1 million and full-year 2019 revenue of $74.1 million, a 101% and 251% increase, respectively, compared to the same periods in 2018.

The net loss was a whopping $65 million versus last year’s $29 million for the same time period. The net loss for the full year was a staggering $195 million versus the fiscal year 2018’s loss of $32 million. 

 

Nevada Publishes List of Cannabis Test Failures

The Nevada Department of Taxation issued a Public Health and Safety Notice Advisory 2020-05 on February 21, 2020, advising consumers and patients to avoid consuming marijuana which was listed in the notice. The affected marijuana failed secondary microbial testing conducted by an independent testing laboratory. The cannabis was tested for yeast and mold, bile-tolerant gram-negative bacteria, coliforms, and Aspergillus. The products were sold at the following dispensaries: 

  • Rise (owned by GTI or Green Thumb Industries)
  • Essence
  • Thrive Cannabis Marketplace
  • MMJ America
  • Fine Cannabis Dispensary
  • Jardin Premium Cannabis Dispensary
  • Curaleaf
  • ShowGrow
  • Blum
  • Nevada Made Marijuana
  • Jenny’s Dispensary
  • Las Vegas ReLeaf
  • Sahara Wellness
  • Top-Notch Health Center
  • Deep Roots Harvest
  • Acres Cannabis
  • The Source
  • Thrive Cannabis Marketplace
  • Exhale
  • Silver Sage
  • The Grove
  • Oasis Cannabis and The Dispensary NV

Products were from various strains and the statement said that there was no reason to believe that the dispensaries or cultivators had any knowledge that the products exceeded allowable limits.

In Other News

3 Sixty Announces Interim CFO

3 Sixty, a Canadian company that works closely with the cannabis industry offering security solutions, has announced Candice Matthews as the interim CFO of the company alongside her current duties as the Director of Finance. 

“The Board and I have full confidence in Ms. Matthews’ ability to lead our finance operations in the short term, and we expect a seamless transition once the new CFO has been recruited in the near future,” said Thomas Gerstenecker, Founder and Chief Executive Officer.

Nutritional High Announces Non-Binding Letter of Intent with Calyx Brands, Inc. 

Nutritional High International Inc, a cannabis oils and edibles company has announced its non-binding letter of intent to sell a controlling interest in Calyx Brands, a cannabis distribution and logistics company based in California. Closing is expected in the second quarter of 2020. 

“Current challenges in the capital markets have been especially acute for distributors, who require working capital to grow their business,” commented Dakota Sullivan, CEO of Calyx. “We see this as an opportunity to combine our distribution reach with our new Partner’s supply chain and flower business to form a powerful, end-to-end brand.”

Harvest One Announces Sale of Non-Core Interest in Burb and Lillooet Property Totaling Proceeds of $2.3 Million

Harvest One Cannabis Inc. has announced its entry into a definitive agreement to sell its interest in Burb Cannabis Corp, a British Columbia based cannabis retailer, along with its interest in the Lillooet, British Columbia based 398-acre site, dubbed the “Lillooet Property.” Harvest One has agreed to sell its 19.9% equity stake in Burb back to the founders of Burb and has forgiven a shareholder loan with a face value of $250,000 in exchange for total cash consideration of $1,512,600. Per the Lillooet Transaction, Harvest One has entered into a contract to sell the Lillooet Property for cash consideration of $770,000. The transaction is scheduled to close on March 31, 2020.

AYR Strategies Q4 Revenue Increases to $32.3 Million 

Vertically-integrated cannabis company AYR Strategies reported a total revenue increase of 75% to $124.2 million compared to $70.9 million, and an Adjusted Gross Profit increased 78% to $63.0 million compared to $35.5 million. 

Enviva Reports Q4 Earnings 

Enviva has announced its Q4 earnings. For the fourth quarter of 2019, the company reported a net income of $0.9 million, adjusted net income of $17.2 million, and adjusted EBITDA of $53.3 million. 

For the full year of 2019, it reported a net loss of $2.9 million, an adjusted net income of $33.4 million, and adjusted EBITDA of $141.3 million. 


Kaitlin DomangueKaitlin DomangueFebruary 24, 2020
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4min10100

The Trump Administration has proposed the removal of a rider provision protecting state-legal cannabis businesses from the federal government’s interference. 

This comes with the release of his fiscal year 2021 budget plan.

The rider in question specifically states the Justice Department can’t use federal funding to prohibit states or territories “from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana.”

Removing this provision would leave a lot of room for government interference, potentially destroying many state-legal businesses.

This action comes contrary to many things President Trump has said and expressed in the past. Most famously, declaring that cannabis legalization should be a state issue. What he is pushing now directly negates that previously spoken belief.

“I think it certainly has to be a state—I have not smoked it—it’s got to be a state decision … I do like it, you know, from a medical standpoint … it does do pretty good things,” Trump said on the 2016 campaign trail. “But from the other standpoint, I think that it should be up to the states.”

Donald Trump also previously spoke in favor of the STATES Act, a bipartisan bill that protects legal cannabis states from federal interference.

When asked if he supported the legislation filed by Democratic senator Elizabeth Warren and Republican Senator Cory Gardner, he said “I really do. I support Senator Gardner.” Trump said in 2018. “I know exactly what he’s doing. We’re looking at it. But I probably will end up supporting that, yes.”

To add fuel to the already ablaze fire, President Trump was heard in a leaked audio clip say that he believes smoking cannabis makes you lose IQ points, though experts seem to disagree.

This rider has been renewed every year since 2014, however, it has faced scrutiny in the past, with President Obama asking for it to be removed during his time in office.

Trump is choosing to take it a step further than Obama by stating he could ignore any medical marijuana protections provided by Congress. This was revealed in his large-scale spending legislation released in December.

The President wrote in a signing statement “Division B, section 531 of the Act provides that the Department of Justice may not use any funds made available under this Act to prevent implementation of medical marijuana laws by various States and territories.” Trump continues by saying “My Administration will treat this provision consistent with the President’s constitutional responsibility to faithfully execute the laws of the United States.”

By calling out this rider specifically, Trump is vaguely saying he believes his administration can enforce federal drug laws that interfere with the state’s laws, even though there is a provision saying he can’t.

Trump’s fiscal year 2021 budget also includes a rider that prohibits Washington D.C. from using local tax dollars to regulate the legal sale of cannabis.

Donald Trump has given the cannabis community good reason to believe that he supports them and their cause. These recent actions and statements may prove otherwise.


Video StaffVideo StaffFebruary 24, 2020

1min9900

Front Range Biosciences is sending hemp tissue cultures to space. CEO Dr. Jonathan Vaught met with Green Market Report during the Northeast Cannabis Business Conference in Boston to explain why the company was involved with the studies on hemp in space. Thank you for watching the Green Market Report! Be sure to subscribe to stay up to date on all of GMR’s videos.


Julie AitchesonJulie AitchesonFebruary 21, 2020
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5min12310

Editor’s Note: This story was originally published on our sister site Hemp Market Report.

Amidst concerns on the federal and state levels about violations of FDA regulations regarding CBD products, efforts are being made to allocate more money in the upcoming fiscal year to further define and more stringently enforce CBD laws. President Trump’s proposed budget for the fiscal year 2021, should he gain re-election and have the opportunity to present it to Congress, allocates an additional $5 million to the Food and Drug Administration specifically for further regulation and law enforcement pertaining to cannabis and cannabis-derived products. This is the first time that CBD has been mentioned in a federal budget proposal, which suggests that hemp and CBD may be buzzwords cropping up in Presidential debate topics alongside marijuana leading up to the election.

So where would it leave the future of CBD regulation if Trump is ousted from the White House? Democratic Presidential frontrunners Bernie Sanders and Elizabeth Warren both support the legalization of cannabis, with Sanders proposing to legalize within 100 days of his election to office. A historically outspoken proponent of the war on drugs, Joe Biden is sticking to a half-measure platform with a focus on decriminalization, allowing states to regulate hemp for themselves. Michael Bloomberg supports putting legalization in the hands of individual states, though he is personally opposed to legalization. Pete Buttigieg takes the side of veterans with PTSD who often use cannabis and its derivatives to deal with the aftermath of military service, advocating for the decriminalization of all controlled substances. 

As hemp has yet to be a talking point for presidential candidates, overshadowed as it is by the larger topic of marijuana as a flashpoint for racial justice issues (as criminalization disproportionately affects people of color), what Americans can expect from future budgetary support should a Democrat win office is unclear. What is clear is that the time for comprehensive, consistent regulations and enforcement of cannabis laws on the part of the FDA is long overdue.

  During his January 2020 testimony before the Subcommittee on Health, Committee on Energy and Commerce, and the U.S. House of Representatives, Douglas C. Throckmorton, Deputy Director for Regulatory Programs at the FDA, highlighted the current illegality (per the Food, Drug, & Cosmetic Act)  of interstate commerce of food with CBD additives. He also described in some detail concerns with current CBD marketing tactics that put consumers at risk, such as those products that claim to treat cancer or Alzheimer’s. Throckmorton also identified some particular concerns related to the potential negative health impacts of CBD use, such as liver damage, problematic drug interactions, male reproductive toxicity, and various ill side effects. 

While studies of these impacts are still ongoing and inconclusive, the FDA is clearly intent on taking them, and the future of CBD in the U.S. market, seriously. Whether the President-elect of the United States, whoever he or she may be, manages to pass a budget that supports the FDA in its mission to ensure public safety in regards to CBD is, in many respects, for voters to decide.


Kaitlin DomangueKaitlin DomangueFebruary 12, 2020
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5min15430

Amid layoffs appearing as a constant, The Supreme Cannabis Company is the latest in the industry to let a percentage of its staff go. Last night after the market’s close, the company announced a 15% layoff, releasing a third of corporate positions and 13% of its operational ones. This report comes after the announcements of companies like Tilray and Aurora also slashing jobs. 

All hope is not lost though in the ganja workforce. Leafly found 243,700 full-time-equivalent (FTE) jobs in the United States that are supported by legal cannabis as of January 2020. That is a 15% annual increase. 

This data was reported in Leafly’s fourth annual Cannabis Jobs Report. Even more encouraging, the report shows that the industry created 33,700 new jobs nationwide in 2019, effectively making it the fastest-growing job arena in the United States. 

According to the report, Massachusetts, Oklahoma, and Illinois are leading the fight in terms of employment expansion. Massachusetts recently celebrated the one year anniversary of legalizing cannabis for adult-use in the state and added 10,226 jobs to boot. Oklahoma saw a 221% growth in 2019, supporting 9,412 full-time jobs. Illinois adult-use market rolled out on the first of the year, and early 2020 data shows this is already a $470 million annual market supporting 9,176 jobs.

An interesting tidbit of information, Massachusetts has more cannabis industry workers than hairstylists and cosmetologists, and Illinois has twice the number of cannabis industry workers than they do meat packers. When compared to other industries, it is truly amazing to see the creation of jobs in the United States by the industry, as well as the cannabis industry’s growth in general. 

Though the previously mentioned states take the prize for the fastest job growth, California is still America’s largest cannabis employer. However, Colorado may be the nation’s biggest per-capita cannabis job market. With California offering one job per 980 residents, Colorado supplies one job per 165 residents. 

Colorado is also passing Washington state in terms of jobs. Though both states legalized cannabis for adult-use in 2012, Colorado supplies nearly 10,000 more jobs than Washington state, despite Washington’s population containing nearly 2 million more residents. 

Despite cannabis job expansion’s rapid growth in most of the country, California and Michigan suffered technical job losses. 

Leafly’s experts estimate that their job markets fell due to changes in laws and regulations. In California, an estimated 8,000 jobs moved from legal to non-legal status, but as mentioned before it is still America’s largest cannabis job provider. Michigan’s new regulatory processes pushed hundreds of legally operating dispensaries into illicit status. 

Leafly started their annual job counts four years ago, upon the discovery that federal and state labor economists do not account for state-legal cannabis jobs in their employment reports. The reason? Federal prohibition. The NAICS (North American Industry Classification System) codes classify cannabis retail stores in the same category as art supply stores, hot tub stores, and auction houses. While cannabis cultivators have the same job code as hay farmers and agave growers. 

It is important to note that this report does not include jobs created by CBD since it’s recent change in legal status. Because the regulations for CBD differ from state-legal cannabis, there is no data to build from yet.


Kaitlin DomangueKaitlin DomangueFebruary 6, 2020
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6min8140

It’s time for your Daily Hit of cannabis financial news for February 6th, 2020. 

On the Site

Planet 13 Cafe Is Paying Off As Sales Stay Strong

 

Las Vegas-based cannabis dispensary Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF) reported record-breaking January sales driven by strong traffic and attributed it to the company’s newly opened cafe and event space. The company said that the average ticket size was approximately $100. Planet 13 said that January revenue was ~10% higher than the seasonally slow months of November and December.

CBD Craze Sparks ‘Weed Washing’ Trend

 

Remember the term ‘pinkwashing’? Where companies slapped a pink ribbon on just about anything and claimed to be donating lots of money to breast cancer research? It’s happening again, but this time it’s in the cannabis industry.

“Weed washing” is a disturbing trend that appears to be most dominant in the beauty industry and refers to the act of adding hemp oil that does not contain CBD or only contains a minuscule, non-therapeutic amount to a product in order to capitalize on CBD’s popularity and high price point. 

Psychedelic Clinic Company Field Trip Raises $8.5 Million

 

Psychedelic clinic company Field Trip Psychedelics Inc. closed its oversubscribed Series A financing round. The financing, which was completed through a private placement, raised $8.5 million for the company.

The company said the funds will be used to execute the initial stages of Field Trip’s strategic plan to build out the world’s first network of medical centers focused exclusively on psychedelic-enhanced psychotherapy. In addition to that, the financing will help fund the final construction of its research and cultivation facility at the University of the West Indies in Jamaica. 

South Carolina Kicks Off Hemp Farming Season

 

The South Carolina Department of Agriculture (SCDA) said that it will begin accepting applications for hemp farming, handling and processing permits for the 2020 growing season starting Feb. 1, 2020. Now in its third year, South Carolina’s hemp farming program has grown from 20 farmers in 2018 to 114 permitted farmers and 43 processors at the end of the 2019 season. 

Requirements to receive a hemp farming permit include:

  • Proof of South Carolina residency
  • Criminal background check
  • $100 nonrefundable application fee and $1,000 permit fee
  • GPS coordinates of all locations on which hemp will be grown
  • Attending an SCDA orientation and signing a Hemp Farming Agreement prior to possessing any hemp, including clones and seeds

In Other News

Aurora Cannabis Appoints Two New Independent Directors

 

Lance Friedmann and Michael Detlefsen have been appointed as two new directors for the Canadian cannabis company, Aurora Cannabis. The two have held roles with Kraft Foods and Pomegranate Capital Advisors, respectively. 

Aurora Cannabis Executive Chairman and Interim CEO Michael Singer stated, “We are pleased to welcome Lance Friedmann and Michael Detlefsen as independent members to the board at this critical time in our transformation. We expect to see cannabinoids grow as a category in consumer products and believe their depth of experience and strong track records of successful brand development and operational business transformation will provide helpful insights to our executive team. With the addition of Messrs. Friedmann and Detlefsen, Aurora has expanded its Board, independent directors.”

KushCo Holdings Announces $16 Million Registered Direct Offering

 

KushCo Holdings has announced its entrance to a definitive agreement with investors purchasing stock in the company. The agreement includes 10,000,000 units, with each unit representing one share of common stock. The transaction was set for $0.001 per share, and a warrant to purchase half a share of common stock, at an offering price of $1.60 per unit, pursuant to a registered direct offering.


Kaitlin DomangueKaitlin DomangueJanuary 30, 2020
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5min5680

It’s time for your Daily Hit of cannabis financial news for January 30th, 2020.

On the Site

CLS Nevada Projects 2020 Revenue Of $17 Million

CLS Holdings USA, Inc (OTCQB: CLSH)(CSE: CLSH) released its 2019 calendar year-end statement for CLS Nevada, not long after the company reported its quarterly earnings on January 14. The company said in a statement that it was “forecasting CLS Nevada 2020 revenue of $17 million and positive EBITDA of $4 million.” The company will need to hustle if it wants to hit that $17 million goal. CLS said that it plans to increase sales by 100% at City Trees by eliminating low return on investment SKUs, re-branding and increasing visibility through better marketing channels. That includes expanding the  Oasis Cannabis parking lot and vault to allow it to efficiently serve 1250 customers a day. The company also wants to create new revenue streams by offering advertising opportunities to brands and partners.

High Times Tells Shareholders It Needs More Capital

It’s been a tumultuous two months for venerable cannabis publisher High Times following an equally bumpy road to going public. On Wednesday, Chairman Adam Levine sent a letter to shareholders of the private company stating that it would once again extend its fundraising campaign and abandon its efforts to list on the NASDAQ Marketsite Exchange (NASDAQ: NDAQ).

The latest extended offering will terminate on the first to occur of either the date on which all 4,545,454 shares are sold or March 31, 2020. These shares though are priced back at $11 with the goal of raising another $5 million. According to the most recent corporate presentation, High Times had 32,460, 313 issued shares and if all were valued at $11, that is a $357 million market cap. The company’s current total liabilities are $68 million.

The First Historically Black College Is Launching A CBD Line

The Southern University Agricultural Research and Extension Center in Baton Rouge, Louisiana, along with its partner Ilera Holistic Healthcare is launching a CBD product line called ALAFIA. Southern is the first HBCU (Historically Black College University) to start its own CBD product line that is available for sale at dispensaries and other retail locations.

“Southern has been a leader in agriculture and the sciences for 140 years while staying true to its mission of access,” said Ray Belton, the president of the Southern University System. “This CBD venture with Ilera encompasses all of that.”

Hemp Glut Causing Prices To Drop, Unsold Harvests

Hemp Benchmarks report for January was published on Wednesday at the Hemp Benchmarks website. Founder Jonathan Rubin noted that wholesale hemp markets continue to face significant challenges, including oversupply and declining prices.

The report stated, “We have in previous reports emphasized the current glut of biomass on the market, which has led to farmers being unable to move their harvests. Such market conditions continued in January, with numerous members of our Price Contributor Network reporting that relatively little buying and selling of biomass was taking place. Transactions that were reported showed high-CBD biomass prices continuing to sink, with the assessed rate for transactions of over 1 million pounds down 53% from last month.

In Other News

Two Kentucky Hemp Companies Facing Bankruptcy 

Two companies are facing financial trouble as GenCanna has had three separate creditors try and force the company to declare bankruptcy. The three creditors are owed $50,000 collectively. Separately, Sunstrand owner William “Trey” Riddle filed for Chapter 7 bankruptcy in a Louisville court. 

A creditors’ meeting is scheduled for February 6th in Louisville, KY. 



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


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