Marijuana Money Archives - Green Market Report

Video StaffVideo StaffMarch 27, 2020

3min4871

The COVID19 pandemic continues to rage on. Unfortunately for Massachusetts recreational dispensaries, what had been the silver lining in the clouds, meaning increased sales, has been taken away. The state decided to stop all adult use cannabis sales and now only medical marijuana sales can take place.

Despite the virus crisis, companies are still making key decisions.

The Harvest Health and Verano deal is over. The deal which was once valued at $850 million when Harvest stock was trading at roughly $8 has been terminated. Harvest stock is now trading just over a dollar.  

Charlotte’s Web announced an agreement to acquire Abacus and the combined entity is anticipated to represent nearly 35% of U.S. CBD sales withing the Food/Drug/Mass Retail channel. The deal is valued at $99 million.

Curaleaf Holdings, Inc. said it will acquire three Arrow Alternative Care (AAC) dispensaries in the state of Connecticut. AAC operates three out of 18 total stores currently operational in the state. 

Organigram Holdings Inc. gave good news and bad news on Monday morning. The company stated that it had received approval from Health Canada for its expansion, but then also said its workforce would be reduced due to Covid-19. The company noted that not all of the jobs at its Moncton facility can be done remotely and that in order to protect employees it was expecting temporary layoffs. 

Private cannabis company Leafly laid off 91 employees this week amid the COVID-19 pandemic. 

And finally, last week Green Market Report published an exclusive story about Green Growth Brands not paying its laid-off workers. The company said it was able to find the money to pay the workers and noted that the resigning CEO did not collect a severance package.

That’s it for this week, everyone stay safe and healthy.


Video StaffVideo StaffMarch 20, 2020

2min2710

In some towns in California, cannabis was deemed an essential item allowing many dispensaries to remain open. If a dispensary didn’t have a drive-thru, then several got creative with online ordering and curbside service. Delivery companies were reporting they many quarantined people were taking advantage of the service. Sales have been strong at most places as consumers stocked up on cannabis supplies.

 Canopy Growth Corporation made the decision to temporarily close all corporate-owned Tokyo Smoke and Tweed retail locations across Canada. It is e-commerce only for now.

There were some earnings this week.

Hemp CBD company CV Sciences delivered total revenue of $53.7 million for the fiscal year 2019. During the fourth quarter of 2019, sales declined 34% to $9.4 million. CV Sciences said that it expects revenue to drop sequentially to the range of $6-8 million in the first quarter of fiscal 2020.

Aleafia Health Inc. reported a 22% sequential increase in quarterly net cannabis revenue to $6 million but the net loss was $9.8 million. For the fiscal year, net revenue was $16.4 million

And finally,

Acreage Holdings former president George Allen has invested in Indus Holdings. Indus said it received a $2.3 million loan with lenders that included Allen’s Geronimo Capital and Merida Capital Partners. The financing could go up to $14.5 million. It seems one of the plans for the new team is to bring the focus back to California after spreading out to Oregon and Nevada and also reducing the number of products. 


Video StaffVideo StaffMarch 13, 2020

4min3400

Coronavirus is infecting the markets as well as people. Stocks continued to sell off as more cannabis events were canceled. Green Market Report is moving its April 3 event to a virtual conference and we’ll have the details on that shortly.

The virus doesn’t mean that business has ceased operating so here are this week’s stories

Harvest Health & Recreation is buying Interurban Capital Group, Inc. or (ICG) in a deal valued at $85 million The founder Jason Vedadi is resigning from his role as Executive Chairman of the Board of Directors. Current independent Board member Mark Barnard will assume duties as Chairman 

 TerrAscend Corp. and its wholly-owned subsidiary  TerrAscend Canada Inc. has entered into a loan financing arrangement with Canopy Growth Corporation in the amount of C$80.5 million in the form of a secured debenture. TerrAscend is a Canopy Rivers portfolio company. That’s convenient!

We have some earnings this week 

The Green Organic Dutchman Holdings reported its for the fourth quarter and year with quarterly revenue at a paltry $3.25 million and $11.16 million for the year. The company delivered a quarterly net loss of $144.75 million in the quarter and a net loss of $195.75 million for the year 

Columbia Care reported fourth-quarter revenue of $24.5 million and full-year revenue of  $78.8 million The net loss for the quarter was $28 million and the net loss for the year was $106 million

Vireo Health International closed on a non-brokered private placement offering of  $10 million.

Luxury cannabis product company BR Brands LLC has joined forces with long time cannabis beverage company Dixie Brands Inc.with an implied value of $43 million for Dixie. 

Psychedelic medicine company Mindbloom has opened its first location in New York City. The company has plans to expand rapidly, with a new state-of-the-art flagship space set to open in the city later this year. Additional Mindbloom locations are planned for Los Angeles, San Diego, San Francisco, and Austin.

Headset released a new report saying the cannabis shoppers are enjoying bigger and better bargains. Discounts are increasing and prices are falling for shoppers at the dispensaries. 

 


Video StaffVideo StaffMarch 6, 2020

4min3070

Green Market Report’s New York cannabis conference called The Economics of 2020 Cannabis is being held on April 3 this year and this will be our most diverse event yet. Zilera Health is our keynote and we will give you more details as they come. Save the date. With the challenges facing the industry, it is more important than ever to hear from experts in the field.

We also published our first report on Psychedelic Investing Trends and its available for purchase on our website.

This week we had sobering news from Canopy Growth. The cannabis giant said it was closing two indoor grow facilities, laying off 500 employees and taking a charge of between $700 and $800 million dollars. The company said it had made these indoor grow investments before it got cleared for outdoor grows, which are much cheaper. There will certainly be a ripple effect from this move throughout the industry. 

Tilray, Inc.  (Nasdaq:TLRY) stock got slammed after its fourth-quarter earnings of -$0.62 missed by $0.24. Revenue of $46 million increased 202 % over last year but also missed estimates by $8.58 million. The net loss for the quarter was an eye-popping $219 million

Cronos Group said it would be late delivering its earnings

It isn’t all gloom and doom out there.

Ceres Group Acquisition Sponsor and Ceres Acquisition Corp. closed on its initial public offering (IPO) of $120 million SPAC. It began trading on the Neo Exchange Inc. using the symbol “CERE.UN

Bruce Linton is starting a SPAC as well. Collective Growth Corporation intends to trade its units on the NASDAQ with the symbol “CGROU”, The company plans to raise $150 million 

Curaleaf Holdings, Inc. (CSE:CURA) (OTCQX:CURLF) said it will acquire Colorado-based edibles company BlueKudu for an undisclosed amount.

Halo Labs Inc. is acquiring Cannalift Delivery Inc. in exchange for C$3.41M common shares of Halo at a deemed price of C$0.11 per share. The Cannalift vendor is also helping Halo secure a non-brokered private placement of up to C$700,000. 

 Village Farms International, and Emerald Health Therapeutics said that they have entered into a settlement agreement that will settle their prior disputes over Pure Sunfarms joint venture

 


Video StaffVideo StaffFebruary 28, 2020

5min5520

The broader markets hit the correction zone this week as stocks sold off in a major way over corona virus fears. That certainly didn’t help cannabis companies as this industry begins its earnings season. Some companies actually had good reports, but you wouldn’t know it by the selling we saw.

Here are the good earnings releases:

GW Pharmaceuticals plc reported Total revenues of $109 million for the fourth quarter easily beating the S&P Capital IQ estimate for revenue of $80 million. the company also trimmed its net losses to $24.9 million, but it missed the estimates for losses per share.

 Valens GroWorks delivered a solid fourth quarter and fiscal year earnings report. revenue increased to $58.1 million for the fiscal year 2019. For the fourth quarter of 2019 revenue increased to $30.6 million, an 86.0% increase over the third quarter and above the high-end of the guidance range

Innovative Industrial Properties generated total revenues of approximately $17.7 million in the quarter, representing a 269% increase from the prior year’s quarter. The REIT paid a quarterly dividend of $1.00 per share a 186% increase over last year and a 28% increase sequentially.

Next are the company that had nice revenues, but they were dwarfed by the net losses.

Acreage Holdings, Inc. (ACRG-U.CN) (ACRGF) delivered fourth-quarter revenue of $21.1 million and full-year 2019 revenue of $74.1 million. The net loss was a whopping $65 million for the quarter and a staggering $195 million for the year. The company recently made a new complicated financing deal, but on the earnings call CEO Kevin Murphy said they planned to raise even more money.

MedMen Enterprises Inc. said its revenue increased to $44.1 million for the quarter, up 50% year-over-year and 11% sequentially. Still, The net loss for the quarter was a staggering $96 million versus last year’s $64 million. The company added two new board members and sold off its rights to licenses in Illinois that it received as part of the Pharmacann termination. 

AYR Strategies’ full-year total revenue increased 75% to $124.2 million, but the net loss for the year was another jaw-dropping $164 million. 

Ok, that’s enough earnings, in other news,  

Green Growth Brands Inc. announced that The BRN Group Inc. has agreed to acquire the company’s cannabidiol business.  The company also said in a statement that at least two-thirds of the independent members of the Board have determined that Green Growth Brands is in serious financial difficulty with limited alternatives. The company will just focus on the MSO business. You may recall GGB is made up of retail experts from Victoria’s Secret who said they would teach the cannabis industry how to sell. 

 Eaze said it has raised $35 million in a Series D round and could raise an additional $20 million. The company was said to be running out of money and it now pivoting to becoming a plant-touching business.

That’s it for this week. Stay healthy folks, wash your hands.


Video StaffVideo StaffFebruary 21, 2020

3min6331

This was a shortened trading week with President’s day on Monday. So we only have a few days of stories to cover. Australis Capital Inc. (CSE: AUSA) (OTC: AUSAF) terminated a proposed merger with Folium Equity Holding. Australis had sent warning signs that the company may not move forward with the deal in corporate meeting notes that surfaced on Google. The company suggested that once it had more data on the company it decided against moving forward. 

Back in October Gibraltar Industries (NASDAQ: ROCK) purchased CO2 extraction company Apeks Supercritical, paying $12.55 million for the Ohio-based company that reported trailing annual revenue through June 2019 of $17.7 million. At the end of last week, the company said it was paying $50 million for California-based ethanol-based extraction systems Delta Separations. Gibraltar disclosed that the acquired company generated 2019 revenue of $46 million. 

NewLake Capital Partners, Inc. closed of its sale-leaseback transactions with affiliates of Grassroots for six of the ten properties within this portfolio located in six states. The Company anticipates the second closing for the four remaining properties to occur within the next forty-five days.

Cannabis testing and analytics firm Digipath, Inc. (OTCQB: DIGP) reported a 26% increase in revenue to $808,930 for the first quarter of 2020. The company was also able to trim its first-quarter net loss to $220,427 versus $462,174 for the same time period in 2018.

SOL Global Investments Corp. (CSE: SOL) (OTCPK: SOLCF) portfolio company CannCure Investments has entered into a definitive business combination agreement with Goldstream Minerals Inc.  The deal was previously announced in January and the companies are planning a reverse takeover of Goldstream by CannCure.

TILT Holdings has appointed interim CEO Mark Scatterday as the permanent CEO of the company. Tim Condor has been appointed as Chief Operating Officer, adding the title of President.

GL Brands uplisted to the OTCQB Venture Market, the ticker will remain GRLB.


Video StaffVideo StaffFebruary 14, 2020

4min8270

Happy Valentine’s day to everyone. Did you know that a BDS Analytics report found that in 2019, sales in the recreational cannabis markets of California, Florida, and Oregon were 3.3 percent higher on Valentine’s Day than any other day in February, while Eaze reports a 20 percent spike in orders on Valentine’s Day. So, give your special someone a different kind of flower this year!

This week, Aurora Cannabis gave a disappointing earnings report for the second quarter. total net revenue fell 26% to $56 million in the second quarter from $75 million in the first quarter of 2020. The company also reported that the adjusted EBITDA loss was $80.2 million in the second quarter versus $39.7 million in the first quarter of 2020. The interim CEO warned that the third quarter was going to show little to no growth.

Supreme Cannabis joined the layoff club this week when the company announced a 33% reduction in employee headcount at a corporate level.

Kentucky hemp farmer filed for bankruptcy.  GenCanna Global USA, Inc. filed a petition for voluntary Chapter 11 reorganization

CLS Holdings USA, Inc. (OTCQB: CLSH)(CSE: CLSH) said it saw a drop in its January sales. Still, the 2020 January sales were better than in 2019. Revenue increased 49% from last year’s $0.73 million to this year’s $1.5 million. 

Having said all that Neptune Wellness actually reported a solid quarter. The company reported that total revenues for were $9.1 million, a sequential increase of $2.6 million or 41% over the second quarter ended September 30, 2019. The company also delivered net income of $5.6 million for the quarter versus a net loss of $3.6 million for the same time period in 2019

TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) and its vape subsidiary Jupiter Research, LLC  has partnered with vape device company The Blinc Group, LLC. Perhaps trength in numbers for vape companies

Old Pal announced that Kiva Sales and Services (KSS), the states’ leading distribution operator, will be their exclusive distribution partner and the first to service the entire state of California for Old Pal. This brand took Nevada by storm and quickly became a top selling brand. 

If you’d like to sponsor the Marijuana Money video just email us at info@greenmarketreport.com.

 

 


Video StaffVideo StaffFebruary 7, 2020

3min7023

Hey folks, the Northeast Cannabis Business Conference is only a couple of weeks away in Boston. If you use the code NECBC130 you’ll get a 30% discount on your ticket. This is a 2-day event with over 150 exhibitors and over 100 speakers. From seed to sale to educational to regulatory issues, this is an encompassing conference. Check it out.

One of the OG’s of legal cannabis Tilray announced this week that the company was restructuring and laying off 10% of its workforce. The company said its focus is on becoming profitable and it will target its domestic recreational markets and its Manitoba Harvest hemp food acquisition.

Tilray wasn’t alone on the layoff announcement, Aurora Cannabis also said it was cutting its workforce by 10% too and the company also laid off its founder Terry Booth. The company is also restructuring and cutting back on expenses across the board.

In sad news, Whoopi & Maya has closed its doors. Apparently there was a conflict between the founders Whoopi Goldberg and Maya Elisabeth that couldn’t be resolved.

Ok, on to some cheerier news

GW Pharmaceuticals said it was applying to use its cannabis-based drug Epidiolex to treat a condition called tuberous sclerosis, a disorder known for causing non-cancerous tumors on an afflicted person’s body.

Lift & Co. reported that its total revenues for the third quarter increased 11% to $926 thousand. Revenue increased for the last nine months by 41% to $4.6 million. The company’s well-known trade show reported income of $3.5 million for the past nine months and net income for its evens of $1.1 million, beating last year’s numbers.

Golden Leaf is acquiring Oregon’s extract company Tozmoz for roughly $2.8 million.

Planet 13 said that its café and event space is paying off. The Las Vegas dispensary said January sales remained strong with an average ticket price of $100.

And Field Trip Ventures closed on its Series A fundraising round of $8.5 million. 


Video StaffVideo StaffJanuary 31, 2020

3min6600

The Northeast Cannabis Business Conference is sponsoring this week’s Marijuana Money video. It is Feb 19 and 20th in Boston. Get your tickets now and if you use the promo code NECBC130 you get 30% off. Heck of a deal. You can spend your savings at a local dispensary.

And building on that, Curaleaf is going to be opening the first adult-use dispensary in Cape Cod, the facility is set to have its grand opening on February 6th, 2020.

 Sunniva said it is closing its wholly-owned subsidiary Full Scale Distributors in February. The CEO said it will focus on the preservation of available funds to actively defend Sunniva under the dispute related to the Build to Suit Lease of the Cathedral City Glasshouse. 

EcoGen Labs is continuing to expand and grow as it successfully closes on a $40 financing arrangement through private placement. 

Emerald Health Therapeutics had entered into a shares for debt transaction with Emerald Health Sciences.

TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) has named the company’s Executive Chairman Jason Ackerman as the interim CEO, replacing the current CEO Michael Nashat.

Driven Deliveries has announced its decision to purchase Humboldt Heritage Inc., a cannabis company based in Northern California.

On our Hemp Market Report web site we reported that there is such a glut of hemp that prices are falling and some farmers can’t sell their harvests. Has the bubble already burst for CBD? Check it out. 

And High Times Chairman Adam Levine sent out a letter to shareholders saying the company was going to extend its capital raising offering again. This time the company wants to raise $5 million. The letter also reviewed the latest decision to move into the dispensary business and the changes in the C-Suite. 


Kaitlin DomangueKaitlin DomangueJanuary 30, 2020
daily_hit004-1280x533.png

5min3860

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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