It’s time for your Daily Hit of cannabis financial news for January 28, 2019.
On The Site
Slang will be going public this week on Tuesday on the Canadian Securities Exchange in an IPO with an implied market value of $541 million using the ticker SLNG. The company was previously known as Fire Cannabis Inc. Slang is a combination of National Concession Group, better known as Organa Brandsand Firefly vape pens. Organa is based in Denver, CO and is best known for its product called O.penVAPE. In addition to the O.penVAPE line, Organa makes the Magic Buzz cannabis beverages, District Edible gummies and a line of dab products called Bakked.
The real key to the company though is Organa Labs, the part of the company that houses its custom extraction process. The company earns royalty payments through its ability to turn other company’s cannabis products into premium vape pens.
Organigram Holdings Inc. (OTCQX: OGRMF) reported its first fiscal 2019 quarter results with net sales for the three months ending November 30, 2018, of $12.4 million, up 419% from $2.4 million in Q1’2018. Sales rose 287% sequentially as the impact of legal adult use sales in Canada continues to be felt on the income statement. Net income for the quarter was $29.5 million, or $0.195 per share on a diluted basis versus a net loss of $(1.2) million, or $(0.012) per share in Q1’2018. It was also a big jump sequentially from the fourth quarter net income of $18.0 million, or $0.152 per share on a diluted basis.
Where Israeli firms once bought farms abroad to serve other markets, frustrated by a domestic ban on exports from Israel itself, this is now all set to change. The Middle East state is set to pass a law allowing exports of medicinal cannabis, the Finance Ministry said last week, as the county ramps up its attempt to woo more investment and bolster state coffers. The bill passed its third reading in the Israel parliament in December and is now waiting for the cabinet and Prime Minister Benjamin Netanyahu to sign it into law. The legislation allows the export of medicinal marijuana cannabis to countries that permit its use after receiving licenses from the health regulator.
In Other News
Driven Deliveries, Inc., (DRVD), previously, Results Based Outsourcing Inc. (RBOS) announced that FINRA has completed its review of the company’s ticker symbol change and established that the company will now trade on the OTC under the new stock ticker symbol “DRVD.” Additionally, the common stock has been assigned a new CUSIP number of 26209D105, in connection with their previously announced name change.
Delta 9 Cannabis Inc. (TSXV: NINE) has entered into a definitive agreement to sell its 50% interest in the Delta West extraction facility to Westleaf Inc. (TSX-V: WL). Westleaf has agreed to issue an aggregate of 5,600,000 common shares in the capital of Westleaf in consideration for the acquisition of Delta 9’s 50% interest in the project. Closing of the transaction is expected to occur on or about January 31, 2019.
Innovative Properties Inc. d/b/a Nabis Holdings (CSE: NAB) (OTC: INNPF) has entered into a binding letter of intent to invest in a 70% interest of Hivemind Refinery, an established wellness product line of CBD-based wellness products in the United States. The investment into HIVEMIND expands Nabis’ investment portfolio to CBD edibles, water, drops, lotions, and other CBD wellness products across the spectrum and will fall under the Company’s lifestyle brand.
Village Farms International, Inc. (TSX:VFF) (OTCQX: VFFIF) announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada the sixth amendment to the cultivation license for its 1.1 million square foot greenhouse in Delta, BC (the Delta 3 facility). This amendment permits Pure Sunfarms to expand its cannabis production area by approximately 138,000 square feet to a total of approximately 825,000 square feet. With this amendment, the entirety of the first three quadrants of the 1.1 million square foot Pure Sunfarms facility is now licensed for cultivation. The newly licensed area is expected to be fully planted and in production this week.