Marijuana Money Archives - Green Market Report

Video StaffVideo StaffFebruary 15, 2019

4min2050

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The state of Colorado reported that In  2018, marijuana revenue came in at $266.5 million. This compares to $247 million in 2017.

On Wednesday this week, Congress held a hearing on banking services for the cannabis industry. This is the first hearing to be held by the new Congress that will begin tackling the issue of banking for cannabis companies.

This week, we got earnings from Aurora Cannabis and Canopy Growth.

Canopy Growth Corp. (CGC) reported earnings after the market close on Thursday. Net income for the quarter was $74.9 million compared to a net income of $11.0 million for the same time period during last year. Net revenue increased 282% to $83 million over last year’s $21.7 million for the same time period. Total gross revenue increased 350% to $97.7 million. The company reported that the adjusted EBITDA in the third quarter fiscal 2019 amounted to a loss of $75.1 million compared to a loss of $5.7 million in the same period last year. The net loss per diluted share was $0.38.

Aurora Cannabis (ACB) reported that its net revenue rose 363% to $54.2 million over last year’s $11.7 million. However, losses jumped a whopping 3,179% to $237 million versus last year’s gain of $7.7 million for the same time period. The company said in a statement that “Non-cash expenses including the December 31, 2018 mark-to-market adjustments of approximately $190 million primarily on the company’s derivative investments contributed significantly to a net loss of $240 million.”

The San Francisco-based cannabis dispensary chain, The Apothecarium, has been acquired by TerrAscend Corp. (CSE: TER) for $118.4 million in cash and stock. Included in the purchase are three retail dispensaries in San Francisco; one vertically integrated cannabis operation which includes cultivation, edibles manufacturing, and a retail dispensary location; and the edibles brand Valhalla Confections.

Green Growth Brands Inc. or GGB (OTCQB: GGBXF)  entered into an agreement to gain access to 108 prime shop locations in U.S. malls owned and operated by the Simon Property Group, Inc. (NYSE: SPG). GGB will expand its chain of CBD shops under the Seventh Sense Botanical Therapy. Simon is the biggest mall operator in the country.

Barney’s New York Inc. is opening a luxury cannabis store at its Beverly Hills store next month. Bloomberg reported that the luxury store known for its cutting edge fashion will open a department called “The High End.” And is partnering with Beboe on the effort. Since Barney’s isn’t a licensed dispensary, it will be limited to selling cannabis accessories like pipes, rolling papers, and stash boxes.

The Supreme Cannabis Company, Inc.  (OTCQX: SPRWF) reported a 359% increase in revenue to $7.72 million for the second quarter. This was a 50% sequential increase over the first quarter. The company trimmed its losses by delivering a net loss for the quarter of $1.55 million versus a loss of $2.03 million for the same time period last year.


Video StaffVideo StaffFebruary 8, 2019

4min1960

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This week, Namaste Technologies Inc. (NXTTF) terminated its CEO Sean Dollinger. The company said that a special committee found cause to terminate. Dollinger, who co-founded the company has filed a counter lawsuit. Dollinger is still on the board and owns 6% of the company’s shares. The investigation seemed to confirm a short-seller report from Citron Research that had alleged impropriety involving the sale of a company asset.

FSD Pharma and Auxly terminated their agreement to work together. Auxly said that FSD breached the agreement and when notified and asked to comply with the agreement, FSD didn’t and then tried to control the message by announcing it had terminated first.

In another divorce in the cannabis industry, MedMen Enterprises Inc. (MMNFF)  former CFO James Parker filed a lawsuit against the company late last week. The company said it will fight the lawsuit and considers it to be a meritless case from a disgruntled ex-employee.

Green Thumb Industries Inc. (OTCQX: GTBIF) is acquiring For Success Holding Company, the owner of Los Angeles-based Beboe branded cannabis products for an undisclosed amount that will be paid in GTI stock.

LB Equity has raised $50 million for a portfolio titled LB Equity Emerging Growth Fund, which will be concentrating its investments in cannabis companies that are involved in beauty, health, and wellness. The company’s first investment is with the platform Standard Dose,

Canopy Rivers Inc. (TSXV:RIV) entered into an agreement with CIBC Capital Markets and Eight Capital to purchase, for a $55.0 million bought deal.

Illinois-based Verano Holdings, LLC has acquired Four Daughters Compassionate Care Inc. of Sharon, Massachusetts and its provisional medical cannabis licenses for an undisclosed amount. The first cultivation and dispensary facilities in Sharon are expected to open in six to nine months. The company said it would hire 50-75 employees locally and train them for these sites in 2019.

The Supreme Cannabis Company, Inc. (FIRE) began trading on Toronto Stock Exchange on February 4, 2019.


Video StaffVideo StaffFebruary 1, 2019

3min6331

SLANG Worldwide went public this week using the symbol SLNG and trading on the Canadian Securities Exchange. The shares were priced at $1.50 and jumped 33% on the first day of trading to $1.99. The company is a merger between Slang and Organa Brands, the vape powerhouse that has done over $100 million in sales since 2014. Firefly is also included in the new company.

Organigram Holdings Inc. 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

Sproutly Canada, Inc. announced financial results for the quarter ending November 30, 2018. The company reported a net loss of C$2.8 million or $0.02 per diluted share for the quarter versus last year’s net loss of C$473,405 for the same time period. In the filing, Sproutly noted that it has not generated any revenues from operations and has incurred losses since inception. The company has an accumulative deficit of $12,312,832

Innovative Properties Inc. d/b/a Nabis Holdings entered into an agreement with Canaccord Genuity Corp. and Eventus Capital Corp. for a brokered private placement of debenture units of up to C$30,000,000.

Dixie Brands Inc.  (CSE: DIXI.U) and Khiron Life Sciences Corp. (OTCQB: KHRNF) have signed a binding letter of intent to establish a 50/50 joint venture to introduce a full line of cannabis-infused products to the Latin American market.

Israel 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.

 


Video StaffVideo StaffJanuary 25, 2019

3min5810

It was a shortened trading week with Martin Luther King’s day celebrated on Monday.

Still, we’ve got a couple of acquisitions to report this week.

Tilray (TLRY) acquired Natura Naturals in a deal valued at $70 million. Natura gets $35 million at the closing, but if they hit certain milestones it could go higher. Last July Emblem said they were buying Natura for $75 million but that deal never went through.

High Times is buying the European cannabis event called Spannibis that is held in Spain. The company is paying $3 million in cash and $4 million in company stock.

Cronos Group (CRON) closed on a $65 million credit facility.

KushCo Holdings (KSHB) closed on a $34 million offering.

Doyen Elements International, Inc., announced its rebranding and renaming itself to Covalent Collective, Inc. In addition, the Company announced Bill Gregorak as Chief Executive Officer, effective immediately.

The news that took this week was an announcement by Acreage Holdings (ACRG.U) that it had tried to place an ad advocating for patients of medical marijuana to the Super Bowl. It was rejected by CBS who said it wouldn’t run cannabis ads. The ad featured three patients who told their stories of being helped by medical marijuana, not necessarily Acreages. It wasn’t promoting Acreage or suggesting you buy their product. Even though CBS won’t allow the ad, the stadium in Atlanta Georgia will be running a promotion for a CBD coffee product. So, that could be interesting if the cameras accidentally broadcast the stadium ad. That could get tricky

 


Video StaffVideo StaffJanuary 11, 2019
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3min6390

Cannabis packaging company KushCo Holdings, Inc. (OTCQB: KSHB) reported that revenue rose 186% in the fiscal first quarter of 2019 to $25.3 million. The company said it had to weather several challenges. Cash dropped to $3 million due to rapid demand for product and timing of inventory purchases leading up to Chinese New Year.

On Tuesday,  Brent Cox and Omar Mangalji who hold a significant stake in MedMen Enterprises (MMEN.CN) management company MMMG, LLC filed a $20 million lawsuit against Adam Bierman; Andrew Modlin and various MedMen Enterprises entities for alleged breaches of fiduciary duty. Cox is a former board member. On Wednesday, a Los Angeles Superior Court denied a request from the plaintiffs for a temporary restraining order and a preliminary injunction.

The general gist of the lawsuit is that the two gentlemen are upset that the restricted shares will be locked up for an additional year. MedMen said that decision was made by an independent committee. The lawsuit also said that MedMen would not receive a permanent adult use sales license for its flagship West Hollywood store.

Green Thumb Industries Inc. agreed to acquire Advanced Grow Labs LLC (AGL) and enter the Connecticut market. AGL is one of only four companies in Connecticut licensed to grow and process cannabis.

Acreage Holdings, Inc. (CSE: ACRG.U) closed the acquisition of Florida-based Nature’s Way Nursery of Miami, Inc. (“Nature’s Way”).

The DSW shoe chain (NYSE: DSW) has agreed to sell Green Growth Brands (GGB.CN) CBD products from the line Seventh Sense. Several Green Growth brands had previously worked at DSW so this combination was somewhat expected.

Aurora Cannabis Inc (NYSE: ACB) said it expects to report revenue between $50 million and $55 million for the fiscal second quarter ended Dec. 31. This figure is higher than the $11.7 million posted for the same period last year.

Cannabis data company Headset secured $12.1 million in funding in a Series A round of financing.


Video StaffVideo StaffJanuary 4, 2019

3min4680

Happy new year’s everyone and welcome to 2019. We hope you had a nice break from work over the holidays and that your batteries are recharged to tackle this new year.

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The acquisition race is already fired up this week with TILT Holdings’ (TILT.CN) plan to acquire Jupiter Research in a deal valued at $210 million. The acquisition is expected to close on January 31. TILT’s goal was to expand its technology ecosystem and B2B reach across the supply chain.

“Our latest acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production, and retail,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “Vaporization is increasingly becoming the preferred method for cannabis consumption. With Jupiter’s proprietary inhalation technology, our offerings in this category are going to be unparalleled.” TILT only just began trading last month and also announced that it was acquiring BlackBird in December.

Cannex Capital Holdings reported that its revenue rose 223% to $3 million for the second quarter ending in October. The company also reported net income of almost $700 thousand for the quarter.

The Horizons ETF added three new companies to its portfolio. The new names included Khiron Life Sciences, Auxly, and MediPharm. The ETF has lost 46% of its value since hitting a year’s high in October.

Biome Grow Inc. began trading on the OTC Markets Group this week with the symbol BIOIF. It will also continue trading on the CSE using the symbol BIO.

Xanthic Biopharma has officially changed its name to Green Growth Brands.

Sunniva completed its previously announced acquisition of LYTR Logistics.


Video StaffVideo StaffDecember 21, 2018

4min15964

The President was set to sign the 2018 Farm Bill on Thursday with the signing time repeatedly pushed back and after a long speech about the border wall, he finally signed it. And so thus ends hemp prohibition and it is legal.  

New York State Governor Andrew Cuomo presented his 2019 agenda on Monday morning to the New York Bar Association and it included his plan to legalize adult use cannabis. “Let’s legalize the adult use of recreational marijuana once and for all,” he said. There have been estimates that legalizing cannabis could bring in an additional $1.3 billion in annual tax revenues with $336 million for New York City alone.

Aleafia Health Inc. (TSXV: ALEF) is acquiring Emblem Corp. (TSXV: EMC, OTCQX: EMMBF)  are in an all-stock deal valued at approximately $173.2 Million. The combination will create Canada’s largest medical cannabis clinic network with 40 clinics and education centers.

Tilray Canada Ltd. a subsidiary of Tilray Inc. (NASDAQ: TLRY) entered into an agreement with Sandoz AG, which is a part of the Novartis group, to increase the availability of high-quality medical cannabis products across the world. Tilray has also signed a binding letter of intent (LOI) to purchase hemp-derived CBD isolate from LiveWell Canada Inc. (CSE: LVWL), which will be sourced from the United States and Canada.  Hemp CBD is estimated to be a $22 billion market in the U.S. and finally, big brewer AB InBev, and Tilray, announced a partnership to research non-alcohol beverages containing tetrahydrocannabinol (THC) and cannabidiol (CBD).

The war between Terra Tech Corp. (OTC: TRTC) and its investor Heidi Loeb Hegerich is heating up. The first attack began with a lawsuit filed last week by the Reno, Nevada woman claiming fraud. Loeb Hegerich entered into a partnership with Terra Tech and became a co-owner of a Blum dispensary in midtown Reno. Loeb made some 50 different claims in the case and ultimately is unhappy that she hasn’t received any money back from her investment. Terra Tech said it will defend itself vigorously against the meritless claims filed in the State of Nevada. Golden Leaf Holdings Ltd. (CSE: GLH) (OTCQB: GLDFF)  said that it has decided not to pursue a potential transaction with Terra Tech Corp.

Cannabis loyalty software company springbig completed its latest Series A fundraise for $5 million bringing its total amount raised to $11.3 million.


Video StaffVideo StaffDecember 14, 2018
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5min5800

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The biggest news this week, was well, very big indeed. The Senate passed the 2018 Farm Bill that included language legalizing hemp. The next step is for the House to pass the bill and then on to the President’s desk to be signed.

The bill is very important for the industry because it amends the Controlled Substances Act to reschedule CBD from hemp. It also moved the regulatory authority from the Department of Justice to the Dept of Agriculture. When it comes to farmers, they would now be able to grow the crop for purposes other than “research” and would be able to get crop insurance.

In earnings this week:

Multistate operator Cresco Labs, Inc. (CSE: CL) reported third-quarter revenue of $12.2 million, representing a quarter-over-quarter increase of 51% and a year-over-year increase of 335%. Cresco’s net income nearly doubled from $2.0 million in the previous quarter to $3.9 million. At the end of the quarter, the company had approximately $149.5 million in assets, which included $93.9 million in cash and cash equivalents.

HEXO Corp. (TSX: HEXO) (OTC: HYYDF) reported its financial results for the first quarter of the 2019 fiscal year with gross revenue of  C$6.7 million versus last year’s C$1.1 million for the same time period. The revenue figure includes C$5.2 million from legal adult-use cannabis sales during the first two weeks of legalization. Still, the company delivered a net loss of C$14.7 million versus last year’s net loss of C$381,000.

 

Dixie Brands Inc. (CSE: DIXI.U)  reported Revenue of $2,435,000 in the third quarter of 2018, an increase of 110% over last year. However, Dixie delivered a net loss of $2,404,000 for the quarter versus $630,000 for the third quarter of 2017.

Harvest Health & Recreation, Inc. (CSE: HARV)  has formed a joint venture with Aina We Would (AWW), LLC for a real estate investment vehicle that plans to provide funding to purchase cannabis-related real estate assets. In addition to a Harvest subsidiary, AWW is made up of two family offices, Aina Advisors LLC and Stadlen Family Holdings, LLC.

Aphria Inc.  (TSX: APHA) (NYSE: APHA) continues to forge ahead with its international expansion in Paraguay despite coming under fire from a short seller recently. Last week, Hindenburg Investment Research and QCM released their short report on the company criticizing it for its international dealings.

GTEC Holdings Ltd. (TSXV: GTEC), a vertically integrated cannabis company, announced today that it had been approved for up-listing of trading onto the OTCQB Venture Market. Effective immediately, the company will start trading on the OTCQB under the symbol GGTTF.


Video StaffVideo StaffDecember 7, 2018

2min6240

The trading week was shortened as markets were closed on Wednesday to honor the funeral of the 41st president George HW Bush. Probably best since stocks took a beating on Tuesday.

On Monday, Cresco Labs became the latest multi-state operator to begin publicly trading on the Canadian Securities Exchange. Using the ticker CL, the stock opened at $8.50 and was lately trading at $C6.57.

Cronos Group stock skyrocketed after the company confirmed that it was speaking with tobacco giant Altria. While there is no additional news of a deal, it is anticipated to be a big one. Tobacco companies have shied away from cannabis until now presumably waiting until it was federally legal. It seems these companies have decided that to snooze is to lose.

Conversely, Aphria, which had been rumored in October to be speaking with Altria came under short seller attack. The stock plunged after Gabriel Grego called the company worthless. Eight Capital also cut its price target from C$22 to C$7 and the securities lawyers are lining up for business.

TILT Holdings began trading this week on the CSE using the symbol TILT. It also acquired cannabis distributor Blackbird for $50 million. Blackbird works with 250 wholesale and retail cannabis companies in Nevada and California. The company plans to expand into Massachusetts and Arizona and further in California.

High Times came to an agreement with THC Holdings to convert $28.6 million worth of debt to Class A common stock. The debt has been hanging over High Times and this removes the pressure of making those payments.

Origin House acquired craft cannabis company Cub CityCity for roughly $7 million.

Money continues to flow into the sector.

Ascend Wellness raised $40 million and believes this is one of the largest raises in Massachusetts. The company will use the money for expansion into other states.

OG DNA genetics raised $35 million.


Video StaffVideo StaffNovember 30, 2018

4min6540

The week kicked off with New Jersey making a bold move towards adult use legalization. The state approved proposals in the Senate and Assembly with the next step to send to the full chambers for a vote. The market is estimated to bring in $300 million in additional tax revenues for the state.

We got some new stocks to trade this week. Dixie began trading on the Canadian Securities Exchange this week using the symbol DIXI. Grown Rogue also began trading on the CSE with the symbol GRIN.

It was a busy week for earnings.

(Editors Note – Following the taping of Marijuana Money on Thursday, the market saw major earnings releases from MedMen and Acreage Holdings. In order to produce this video for Friday, it must be written and taped in advance. In some cases this means major news can occur afterward.)

KushCo Holdings (KSHB) said its revenue jumped 177% to $52 million. The net loss, including $1.0 million in depreciation expense, was $23.9 million in SG&A, and $1.6 million in provisions for income tax, was approximately $10.2 million compared to net income of $69,000 in fiscal 2017.

MedMen Enterprises (MMEN) (MMNFF) reported that its fiscal year 2019 first-quarter revenue grew 1,094% to $21.5 million over last year’s $1.8 million for the same time period. Still, the company reported a net loss of $66.5 million, or a loss of $1.42 per share, a dramatic increase over last year’s loss of $5.7 million for the same time period. This was a slight improvement over the net loss of $78.7 million for the fourth quarter last year.

Acreage Holdings Inc. (CSE: ACRG.U) announced its unaudited financial results for the third quarter, which ended on September 30, 2018. Acreage reported quarterly revenue of $5.5 million, representing a 160% increase when compared to the same period in the previous year. The company’s year-to-date revenue increased by 92% to $10.6 million. The company’s net loss increased from $0.7 million in the third quarter of 2017 to $4 million.

Charlottes Web (CWEB) which delivered revenue of $17.7 million. Net income fell slightly to $1.8 million, but gross profits increased 54% to $13.8 million.

Green Thumb Industries (GTII) reported that its revenue jumped 344% to $17.2 million, but the company delivered a net loss of $3.3 million.

GW Pharmaceuticals (GWPH) reported that its revenue declined to $2.4 million missing analysts estimates for $2.9 million. The company also reported a net loss of $79 million.  It wasn’t all bad because at the beginning of the week GW Pharm also said it had positive study results on a phase 3 trial for Epidiolex.

Canopy Rivers (CNOPF) recorded a net income in the quarter of $10.9 million.

MJardin’s (MJAR) revenue increased 65% to $7 million with a net loss of $400k.

Sunniva reported revenue of $3.8 million, but a net loss of $6.7 million.

In financial moves, Cura Cannabis Solutions raised $75 million in a private placement.

Altitude Investment Management closed its fund after raising $30 million with plans for a second fund to raise $100 million.

Green Gotham invested $15 million in LA’s The High Note.



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