Humboldt County Archives - Green Market Report

Kaitlin DomangueKaitlin DomangueFebruary 26, 2020
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10min10050

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. 


Video StaffVideo StaffDecember 13, 2018

1min8760

Humboldt County in California has seen its fair share of boom and bust cycles. From gold mining to logging, this county continues to reinvent itself. Now it’s cannabis that is fueling the county and specifically the town of Eureka’s latest boom. Rob Holmlund, the Director of Community Development in Eureka California tells the Green Market Report how the area has been transformed by the cannabis industry that has brought meaningful jobs to the residents.



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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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