John SchroyerNovember 10, 2023
The company is facing several ongoing legal actions.
iAnthus Capital Holdings Archives - Green Market Report
John SchroyerNovember 10, 2023
StaffAugust 15, 2023
The Daily Hit is a recap of the top financial news stories for Aug. 15, 2023.
On the Site
Tilt Cuts Social Equity Brands With No Warning
In a surprise move by the company’s new leadership, Tilt Holdings (OTC: TLLTF) cut its social equity brands. These include: Her Highness, a female-centric brand based in New York and founded by Laura Eisman and Allison Krongard; Highsman, founded by former professional football player Ricky Williams; and Black Buddha Cannabis, founded by Roz McCarthy, who is also the founder and CEO of Minorities for Medical Marijuana Inc. Read more here.
Halo Collective to Delist from CBOE Following Disastrous Q2
International cannabis company Halo Collective Inc. (Cboe: HALO) (OTC Pink: HCANF) (FSE: A9K0) reported a punishing second quarter for 2023, including a 48% drop in revenue to just $3.5 million for the quarter that ended June 30, due to oversupply in its core markets of California and Oregon. The company announced it was delisted from the Cboe Exchange as of Monday. Read more here.
New Missouri Auditor Launches Review of Cannabis Bureaucracy
The newly elected Missouri state auditor, Scott Fitzpatrick, launched a formal investigation into how the state oversees its medical and recreational marijuana industries, fulfilling a campaign pledge he made last year in his run for the office. Read more here.
Greenlane Paints Profitability Roadmap Amid Q2 Revenue Miss
Florida-based Greenlane Holdings, Inc. (NASDAQ:GNLN) reported a slump in revenue for the second quarter ending June 30, but outlined a strategy for real returns in the near future. The company’s second-quarter revenue stood at $19.6 million, marking a decrease from the $24 million in the previous quarter. Read more here.
iAnthus Revenue Continues Downward Slide in Q2
Late Monday evening after the markets closed, iAnthus Capital Holdings Inc. (CSE: IAN) (OTCPK: ITHUF) reported its second quarter financial results ending June 30, showing deepened losses as the Canadian producer tries to crawl out of sweeping legal and financial crises. Read more here.
In Other News
RECALL: Missouri Cannabis Products/Delta Extraction
The Division of Cannabis Regulation in Jefferson City, Missouri, has issued a public product recall for nearly 63,000 manufactured marijuana items distributed by Delta Extraction LLC. This recall happened after a result of the products failing to meet compliance standards and posing a potential threat to the health and safety of consumers. Read more here.
Unrivaled Brands
Unrivaled Brands, Inc. (OTCQB: UNRV) reported that revenue for the quarter ended June 30 was composed of retail revenue of $8.4 million and cultivation revenue of $0.4 million. While sales for the company have been stable, Unrivaled also noted that it had reduced its workforce by 39% over the past year, from 238 a year ago to 145 as of June 30. Read more here.
Organigram Holdings
Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) expanded its global footprint by entering into a supply agreement to provide dried medical cannabis flower to 4C Labs in the United Kingdom. Read more here.
Adam JacksonAugust 15, 2023
The company responded to recent federal racketeering allegations in filings.
Adam JacksonJune 22, 2023
The suit claims iAnthus unlawfully benefited at the cost of LMS.
StaffMay 16, 2023
The Daily Hit is a recap of the top financial news stories for May 16, 2023.
On the Site
PharmaCann Store Workers Get 20% Raises in First Contract
More than 100 unionized workers at five Illinois cannabis stores owned by PharmaCann have approved a deal that will give them 20% raises over three years. Teamsters Local 777 declined to say how much workers are currently making. But workers at some other dispensaries are paid hourly wages in the mid- to high-teens. Read more here.
iAnthus Q1 Revenue Drops as Legal Woes Continue to Mount
iAnthus Capital Holdings Inc. (CSE: IAN) (OTCPK: ITHUF) reported a first-quarter decline in both revenue and gross profit, along with a substantial net loss, for the period ending March 31. Meanwhile, the company is grappling with several legal battles that pose risks to its operational future and financial health. Read more here.
SAFE Act Gave Stocks a Slight High, Earnings Harshed That Buzz
Just the whiff of a potential piece of federal banking legislation was enough for cannabis stocks to get a boost. In the run up to the Senate Banking Committee hearing last week, the MSOS ETF started at 5.75 at the beginning of May and jumped to 6.26 on May 8. Read more here.
Planet 13 Reports Q1 Loss, Maintains Nevada Market Share
Las Vegas-based Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) posted a 3% decline in revenue for the first quarter ended March 31, which it primarily attributed to a significant drop in the average price of cannabis in Nevada. Read more here.
More Earnings:
• Ayr Wellness Revenues Rise in First Quarter
• Glass House Loses $39M Despite Increasing Revenue
• Greenlane Posts Revenue Growth, Product Expansion Despite Gross Margin Dip
• Indiva Posts $1.7M Loss, Focuses on Cutting Costs
• Red White & Bloom Takes Hit on PharmaCo Deal
In Other News
California
Cannabis operators Kiva Sales & Service, Lowell Farms, Nabis, Sunderstorm, and other key industry players in the world’s largest legal market, formally launched Financial Stability for California Cannabis, a new coalition composed of industry stakeholders. Between wholesalers, consumer brands, and producers, the FSCC represents dozens of operators and brands representing roughly 45% of the state’s industry by sales volume, and seeks to raise awareness and offer solutions to severe credit issues that threaten the industry’s stability. Read more here.
New York
When Brian Stark found out his application for a cannabis retail dispensary license was one of the first to be approved in New York, he was thrilled. Then came zoning limbo. Out of the few Long Island towns that did not opt-out of having dispensaries, many of them have local zoning restrictions that make setting up shop nearly impossible, Stark said. Read more here.
Oregon
Anyone hoping to run a cannabis dispensary in Oregon will be required to prove they’ve paid their state taxes before receiving a license or having an existing license renewed, under changes announced by Gov. Tina Kotek on Tuesday. Read more here.
Adam JacksonMay 16, 2023iAnthus is grappling with several legal battles that pose risks to its operational future.
Debra BorchardtMarch 30, 2023
Executives are handsomely paid despite company problems.
Debra BorchardtMarch 18, 2022
iAnthus Capital Holdings, Inc. (OTCPK: ITHUF) reported its financial results for the fourth quarter and year-ended December 31, 2021. In the fourth quarter, revenue rose 4% to $47.7 million. iAnthus also reported a net loss of $25.7 million, or a loss of $0.15 per share, compared to a loss of $26.7 million, or a loss of $0.16 per share, in the same quarter in the prior year.
iAnthus reported revenue rose 34% for the full year of 2021 to $203.0 million, up 34% from the prior year. The company also recorded a net loss of $76.2 million, or a loss of $0.44 per share, compared to a loss of $313.4 million, or a loss of $1.83 per share, in the prior year.
Due to liquidity constraints, iAnthus said it did not make applicable interest payments due on its 13% senior secured convertible debentures and its 8% convertible unsecured debentures due during 2020. As previously disclosed, the non-payment of interest in March 2020 triggered an event of default with respect to these components of the Company’s long-term debt, which, as of December 31, 2021, consisted of principal amounts of $97.5 million and $60.0 million, and accrued interest of $30.9 million and $9.6 million, on the Secured Notes and Unsecured Debentures, respectively. In addition, as a result of the default, as of December 31, 2021, the company has accrued additional fees and interest of $15.4 million in excess of the aforementioned amounts that are further detailed in the company’s financial statements.
After the quarter ended, on January 7, 2022, the New Jersey Cannabis Regulatory Commission approved iAnthus New Jersey, LLC’s acquisition of 100% of the equity interests of New Jersey license holder MPX New Jersey, LLC. On February 1, 2022, the company closed on its acquisition of MPX NJ.
Delayed Annual Meeting
The company still hasn’t held its annual meeting from 2020 and when the BC Registrar declined the company’s request to delay it again, iAnthus filed an appeal. The company wants an extension to June 30, 2022 or some later date. With regards to the 2021 annual meeting, that deadline was extended to June 30, 2022.
William SumnerSeptember 19, 2019iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF) has entered an agreement to acquire WSCC, Inc., better known as Sierra Well, for $27.6 million. iAnthus will pay for the acquisition price with $5.1 million in cash and $22.5 million in company shares, priced at the 10-day volume-weighted average price prior to closing of the transaction.
Sierra Well is a Nevada-based, vertically integrated cannabis company with two retail dispensary locations and two cultivation/production facilities in Reno and Carson City totaling a combined 20,000 square feet. The company has an unaudited annual revenue of approximately $16 million with an EBITDA (non-IFRS) margin above 20% and positive net income.
“Strengthening our foothold in one of the most successful adult-use cannabis markets is consistent with our strategy to deliver iAnthus’ nationally recognized products in premier markets,” said Hadley Ford, CEO of iAnthus. “This strategic transaction will allow us to scale our Nevada operations, add talent, and solidify both our retail and brand presence in both the Northern and Southern portions of the state.”
The acquisition will help increase iAnthus’ total Nevada footprint to six retail dispensary licenses and 50,000 square feet of cultivation and production space and increase the company’s retail presence to 29 stores nationwide. Once the acquisition closes, Sierra Well dispensaries will be renamed under iAnthus’ Be. brand, which will launch sometime next month.
“We’re excited to join the iAnthus team and look forward to expanding our business with the expertise of a tried and tested multi-state operator,” said Steven Nightingale, Chairman of the Board of Sierra Well. “We at Sierra Well see this partnership as a perfect fit, one that will allow our dynamic workforce to deepen their ability to provide top-notch service and products to the communities of Reno and Carson City.”
Pending approval from the Nevada Department of Taxation, the acquisition is expected to close in the first half of 2020.
William SumnerApril 3, 2019
It’s time for your Daily Hit of cannabis financial news for April 2, 2019.
On the Site
iAnthus Capital Holdings
iAnthus Capital Holdings, Inc. (CSE: IAN, OTCQX: ITHUF) reported its fiscal fourth quarter and full year unaudited results for 2018, however, the company did not release any financial statement to accompany the press release.
Jacana Exported Medical Marijuana Out Of Jamaica, But Is That Legal?
The Minister of Ministry of Industry, Commerce, Agriculture, and Fisheries, Audley Shaw, recently lauded Cannabis company, Jacana, for making a multi-million-dollar investment in the cannabis industry as the first local entity to export cannabis flowers from Jamaica… There remains one issue with this export; there does not seem to be in existence a law in Jamaica supporting the export of cannabis flowers.
In Other News
IONIC Brands Corp.
IONIC Brands Corp. (CSE: IONC), a company focused on developing luxury cannabis brands, announced today that it has begun trading on the Canadian Securities Exchange (CSE) under the trading symbol IONC. “We are excited that IONIC BRANDS is listed on the Canadian Securities Exchange. This is a critical step in the Company’s growth plans,” said John Gorst, CEO & Chairman of IONIC BRANDS in a statement. “We look forward to the access of the capital markets to build IONIC BRANDS and our premium brand portfolio.”
48North Cannabis Corp.
48North Cannabis Corp. announced that it has closed a previously announced bought deal short form prospectus offering, which includes the exercise of an over-allotment option granted to the underwriters. The company sold 21,139,760 units of the company at a price of $1.36 per unit, raising $28,750,073.60. 48North will use the proceeds of the offering to develop a 100-acre outdoor cultivation site in Brant County, Ontario and general corporate purposes.
Vertical Companies
Vertical Companies announced that it has raised $58 million in its Series A Financing Round. Originally the company set out to raise $35 million, but later raised the goal by $20 million due to investor demand. “Although early on we thought we might get broader institutional support based on their interest, the federal prohibition kept those funds out of our reach,” said Smoke Wallin, Vertical Companies President, in a statement. “In spite of those challenges, it is terrific that we have such broad-based investor support from the Merida team as well as high-net-worth individuals and family offices. Closing out at $58m with such investor momentum helps propel the company forward as we scale our commercial operations with a keen focus on execution.”
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