It’s time for your Daily Hit of cannabis financial news for June 21, 2018.
On The Site
The Hydropothecary Corporation
The Hydropothecary Corporation (TSX-V:THCX) announced that it has received approval from the Toronto Stock Exchange to uplist from the TSX Venture Exchange to the regular Toronto Stock Exchange. The Canadian-based cannabis company will list its common shares and common share purchase warrants expiring January 30, 2020, on the TSX and begin trading on June 22.
In addition to the uplisting, the company is changing its corporate name from The Hydropothecary Corporation to HEXO Corp. In connection with the name change, it will need to call a special meeting of its shareholders to seek shareholder approval for the change of its corporate name. As a result of the new company name, the shares will change the ticker and will trade under the symbols “HEXO” and “HEXO.WT” respectively.
In Other News
India Globalization Capital, Inc.
India Globalization Capital, Inc. (IGC) announces financial results for the fiscal year ended March 31, 2018. Total revenue is approximately $2.19 million for FYE 2018, as compared to approximately $580 thousand for the FYE 2017. This revenue is generated from our legacy business that includes trading of steel and iron ore and rental of heavy equipment. The increase year-over-year is attributable to an increase in the volume of trading commodities. Our plan for the legacy business is to maintain annual trading revenue between $3 and $5 million and work on increased margins. In the second half of calendar 2018, we expect to add revenue from Hyalolex with a goal of introducing the product into 10 states by the end of 2018.
Selling, general and administrative expenses are about $1.87 million for fiscal 2018, as compared to about $2.27 million for fiscal 2017. The decrease in SG&A is attributable to decreased depreciation and other SG&A expenses.Net loss is approximately $1.79 million in the fiscal year 2018, as compared to approximately $1.85 million in the fiscal year 2017. The decreased loss is attributed to lower SG&A.
At the end of the fiscal year 2018, the Company reported approximately $1.65 million in cash and cash equivalents and working capital of approximately $860 thousand.
Ascent Industries Corp.
Ascent Industries Corp. announced that it has closed a private placement of subscription receipts for gross proceeds of $19.2 million. A total of 48,085,500 Subscription Receipts were sold at a price of $0.40 per Subscription Receipt. Each Subscription Receipt will convert to one unit of the Company upon the satisfaction of certain conditions, including the completion of the previously announced reverse take-over of Paget Minerals Corp by Ascent and approval of the listing of the common shares of the resulting issuer under the Transaction on the Canadian Securities Exchange, expected to be completed late July or early August 2018. Each unit consists of one common share and one common share purchase warrant of Ascent exercisable at a price of $0.60 per share for a period of 24 months following the date hereof.
The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. (TGOD.TO) (TGODF) announced that it decided to add a 287,245 sq ft purpose-built facility on its Valleyfield property capable of producing 40,000 kgs of premium organic cannabis. This facility will be dedicated to TGOD’s Beverage Division and increases the company’s fully-funded capacity to 170,000 kgs.