Marijuana Money Archives - Green Market Report

Video StaffVideo StaffApril 19, 2019

2min2210

The big news this week was the acquisition of acreage holdings by canopy growth in a deal valued at $3.4 billion. Following approvals from shareholders, acreage will immediately get $300 million and ultimately access to Canopy’s Tweed and Tokyo Smoke brands. Acreage also entered the Nevada market this week with its acquisition of Deep Roots Medical bringing the company’s state footprint up to 20 and making it the largest cannabis company in the U.S.

NASDAQ finally approved a US-based cannabis related company to list on its marketplace. Vape distributor Greenlane Holdings upsized its IPO and priced the shares at $17, above its planned range of $14-$16. The symbol is GNLN. The company reported revenue of $178 million in 2018.

Aphria reported its earnings with a $108 million loss and once again rejected the Green Growth acquisition. Aphria also priced $300 million in convertible debentures this week.

Horizons ETF announced it was launching a US-based ETF that began trading on Thursday using the symbol HMUS

iAnthus will be selling CBD for Life products in Urban Outfitters.

Of course, it’s the big 4/20 celebration this week. This year the April 20 holiday falls on a Saturday for the first time and coincides with Easter Weekend. All of the data providers are projecting big sales on Friday and Saturday as many dispensaries are running promotions and legal states are hosting events.

The Green Market Summit is on May 7 in Chicago. This exciting conference will feature panels on hiring and recruiting in the cannabis industry, a review of hemp pricing in preparation for futures trading and a deep dive into the vape business of Slang Worldwide. Visit www.greenmarketsummit.com for tickets.


Video StaffVideo StaffApril 12, 2019

5min3970

Are you in the Chicago area and interested in working in the cannabis industry? We will have a panel with a top cannabis recruiter at the Green Market Summit on May 7 in Chicago. Buy your tickets here.

Vape distribution company Greenlane Holdings, Inc. filed for an IPO of 5.3 million shares with a price ranging between $14 and $16 per share. The company said that it hopes to list on NASDAQ on  April 18th. The IPO is valued at $80 million and the symbol is expected to GNLN.

In earnings this week, Green Thumb Industries (GTII.CN) or GTI reported its the fourth quarter results with an increase in revenue by 237% to $20.8 million. For the year, GTI made $62.5 million in revenue. The company experienced a net loss of $3.1 million for the quarter and $7.7 million for the whole year.

Trulieve Cannabis Corp. (CSE: TRUL) reported its fourth quarter and 2018 full-year results with revenue rising 172% to $35.9 million from last year’s $28.3 million for the same time period. The company’s net income grew a whopping 3,467% in the fourth quarter to $10.7 million from last year’s $0.3 million for the same time period.

Following the taping of Marijuana Money, KushCo Holdings (OTCQB: KSHB) announced the release of their financial results for the second fiscal quarter of 2019, which ended on February 28, 2019. Quarter-over-quarter, the company’s revenue rose by 39% to $35.2 million. The net loss for the quarter was $8.9 million. Adjusted EBITDA was $5.2 million. As of February 28, the company had $17.9 million in cash. “Our focus remains the build-out of a scalable, sustainable business, as we cement our presence as the primary supply chain partner to the cannabis, CBD and related industries,” said KushCo CEO Nick Kovacevich. “As a result of a strong first half of the year, including the signing of a number of long-term supply arrangements-in-principle with several new large, well-known customers, we are raising our revenue guidance from between $­110 million and $120 million for fiscal year 2019 to between $140 million and $150 million.”

Harvest Health & Recreation, Inc. (CSE: HARV, OTCQX: HRVSF) is acquiring CannaPharmacy, Inc. in a deal with undisclosed value. CannaPharmacy owns or operates cannabis licenses in Pennsylvania, Delaware, New Jersey, and Maryland. Harvest recently announced the private placement of $500 million in convertible debentures to continue to finance acquisitions and corporate growth.

U.S. based investment fund Northern Swan Holdings has completed $58 million in Series D financing, bringing the total amount of capital raised to date to $96 million. The company will be using the funds to expand its existing Latin American operations including Clever Leaves, a licensed producer of medical cannabis in Colombia.

MPX International Corporation  (CSE: MPXI; OTC: MPXOF) entered into a definitive agreement to purchase all outstanding shares of HolyWorld SA for roughly C$13 million.  

Cultivator and producer  1933 Industries Inc. signed a licensing agreement with House of Hawk, which is famous skateboarder Tony Hawk’s company and the company’s subsidiary, Infused MFG for the launch of several co-branded CBD wellness products f

Seattle-based fintech company, POSaBIT began trading on the CSE under the ticker PBIT.  The company that serves cannabis retailers by delivering bitcoin-enabled payment processing and point-of-sale systems, with built-in compliance features customized to the state each retailer operates in.  


Video StaffVideo StaffApril 5, 2019

4min4780

The biggest news this week was the announcement that Cresco Labs is acquiring Origin House, formerly known as CannaRoyalty in a $1.1 billion deal. The combined company would make Cresco one of the largest multi-state operators in the U.S. Cresco would be in 11 states with 23 facilities and licenses to operate 51 dispensaries. Cresco Labs brands will eventually be sold in over 725 dispensaries across the country. The combined company will be one of the largest vertically-integrated multi-state cannabis operators in the U. S.; a leading North American cannabis company, by footprint; and one of the largest cannabis brand distributors.

Aurora Cannabis (ACB) filed a prospectus to raise $750 million although the company stressed that it wasn’t immediately going to tap into using that money. “Although we have no immediate intention of drawing capital against this Shelf Prospectus, we have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy,” said Michael Singer, Executive Chairman.

Earnings season is upon us.

iAnthus (IAN.CN) delivered fourth-quarter revenue of $2.2 million, the pro forma was $14.8 million and the net loss was $15.9 million.  iAnthus reported full-year fiscal 2018 revenue and other income of $4.5 million (an increase of 88% over 2017) and a pro forma revenue* of $49.3 million for the full year fiscal 2018. The full year fiscal 2018 net loss of approximately $62.0 million included $44.1 million of non-cash charges used to derive adjusted EBITDA primarily due to accretion expense, fair market value adjustments, depreciation, and share-based compensation. Adjusted EBITDA loss was $17.9 million for the full year fiscal 2018.

GrowGeneration (GRWG) reported revenue of $29 million an increase of 102% over last year. The company’s same-store sales increased by 12.4% in the fourth quarter. The company delivered a net loss of $5 million for 2018 a big increase over 2017’s net loss of $2.5 million. Gross profits were $6.4 million for 2018, as compared to $3.3 million for 2017, an increase of approximately $3.1 million or 97%.

Nutritional High reported revenue of $6.1 million for the second quarter, but a net loss of $6.8 million. The company also reported a gross profit of $1.5 million, but a net loss of $6.8 million. At the end of January 31, 2019, the company has now recognized a trailing-twelve-month revenue from Cannabis sales of approximately $17.6 million.

1933 Industries delivered revenue of $3.7 million for the second quarter with a net loss of $2.9 million.

Vertical Companies raised $58 million in a Series A round.

Ionic Brands began trading on the Canadian Securities Exchange using the symbol IONC.

Vibe Bioscience Ltd. Announced that its common shares began trading on the CSE as well  under the symbol “VIBE.” Vibe also executed a purchase agreement to acquire all of the membership interests in the outstanding securities of EVR Managers, LLC, which holds a license for an adult use cannabis retail operation located in Redding, California.


Video StaffVideo StaffMarch 22, 2019

3min5370

Tilray Inc. (TLRY) delivered its earnings on Monday with Revenue increasing to $15.5 million, up 203.8% versus the fourth quarter of last year and beating the Yahoo! Finance estimate for $14.15 million. Net loss for the quarter was $31.0 million or $0.33 per share compared to $3.0 million or $0.04 per share for the prior year period. Net loss includes non-cash stock-based compensation charges of $4.1 million compared to $34 thousand in the prior year period.

Curaleaf Holdings, Inc. (CSE: CURA) (OTC: CURLF) reported its results for The fourth quarter with total revenue of $32 million increasing 49% sequentially and 408% over the 2017 fourth quarter. Curaleaf delivered a net loss of $16.5 million, but this was a steep drop from the previous quarter’s loss of $33 million. The company also said it was acquiring Nevada-based Acres Cannabis in a deal valued at $70 million that is expected to close in 2019.

TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) reported its fourth-quarter revenue that increased to C$4.8 million and full-year revenue for 2018 C$6.6 million.

Grassroots launched its convertible note financing round back in December with the plan to raise at least $40 million in proceeds. However, due to strong demand, the financing round was ultimately increased to accommodate $90 million.

California-based  MJIC, Inc. successfully closed a private round of financing resulting in gross proceeds of U.S. $15 million.

Valens GroWorks Corp. (CSE: VGW)  entered into an agreement with AltaCorp Capital Inc. under which AltaCorp has agreed to purchase shares valued at $30 million.

Lots of stock moves this week

Vireo Health International, Inc., a multi-state cannabis company, listed on the Canadian Securities Exchange under the stock symbol.

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF)  said that its common shares began trading today on the Toronto Stock Exchange. The common shares will continue to trade under the symbol “ALEF.”

and

Vape distributor Greenlane Holdings, Inc., a filed to go public. The company wants to list its Class A common stock on the Nasdaq Global Market under the symbol “GNLN.” But so far the Nasdaq has turned almost every cannabis company down.


Video StaffVideo StaffMarch 15, 2019

6min6760

It’s time to buy your tickets to the Green Market Summit in Chicago on May 7, head to the website for more details.

Lawmakers and regulators in Alaska have signed off on new regulations explicitly permitting adults to consume cannabis at specially licensed retailers. “When these rules go into effect, Alaska will be the first state to finalize and approve statewide rules for on-site consumption.”

Harvest Health & Recreation, Inc. (CSE: HARVOTCQX: HRVSF) has entered into an agreement to buy  VeranoHoldings, LLC in an all-stock deal valued at approximately USD $850 million based on a share price of C$8.79. Harvest Health stock jumped over 15% on the news to lately trade at C$9.56. The deal is expected to close in the first half of 2019.

We are in the midst of earnings season, so let’s jump in.

Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) delivered fourth-quarter revenue of $10.5 million for an increase of 380% over the previous year’s $2.1 million. The fourth-quarter net loss of $217.6 million. The pro forma revenue* for the fourth quarter was $22.9 million and the pro forma adjusted net loss*, was $10.8 million. The company has been on a tear with its expansion During the fourth quarter of 2018, Acreage opened two dispensaries under its The Botanist brand in Buffalo, NY and Worcester, MA, and acquired one dispensary in Thames Valley, CT, ending the year with 19 dispensaries (as of today, Acreage has 24 operational dispensaries).

HEXO Corp (TSX: HEXO; NYSE: HEXO) delivered its financial results for the second quarter of the 2019 fiscal year with gross revenue of $16.2 million an increase of 1,269% versus the same time period for last year. Revenues increased by 114% sequentially. The company reported a net loss for the quarter of $4.3 million, which was a big improvement over last year’s net loss of $8.9 million for the same time period. This week the company also said it was acquiring Newstrike Brands in an all-stock deal valued at approximately $263 million.

Innovative Industrial Properties, Inc. (NYSE: IIPR) announced results for the fourth quarter and year ended December 31, 2018. IIPR generated rental revenues of approximately $4.7 million in the quarter, representing a 111% increase from the prior year’s quarter and in line with the Yahoo! Finance analyst estimate.

Zynerba (ZYNE)  reported a net loss for the fourth quarter of 2018 of $7.8 million with a basic and diluted net loss per share of $(0.44). That beat analyst estimates by $0.21 cents.

CV Sciences, Inc. (OTCQB: CVSI) reported its financial results for 2018. The company delivered revenue of $48.2 million for an increase of 133% over 2017. The company also reported net income of $10.0 million, or $0.09 per fully diluted share.

“The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) has entered into a multi-year extraction services contract with Valens GroWorks Corp. (CSE: VGW) (OTC: VGWCF).

 


Video StaffVideo StaffMarch 8, 2019

4min7360

Namaste Technologies Inc. continues to see its troubles compounded following the recent scandal involving the company’s founder and former CEO Sean Dollinger. On Wednesday the company confirmed that its auditor PricewaterhouseCoopers, LLP resigned and will no longer be acting as the company’s auditor and the company will miss filing its financial documents. In addition to that, the company ran afoul of advertising restrictions in Brazil and separately, decided to stop several company initiatives. Oh, and it bought a company called Choklat.

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) made a statement claiming it wasn’t aware of stock promotion activity by a company it hired for public relations. MedMen acknowledged that the OTC Markets had made inquiries about promotional activity relating to promotional materials encouraging investors to buy the company’s Class B Subordinate Voting Shares. MedMen said it thinks that an announcement about earnings that sparked the trading activity, either way, it had the offending article removed.

CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) filed and a prospectus to offer up to C$700,000,000 of debt securities, warrants, subscription receipts, units or common shares.

Flower One Holdings Inc. (FLOOF) is offering up to 50,000 convertible debentures for an offering size of up to $50,000,000

Cannex Capital Holdings Inc. (CSE: CNNX)(OTCQX: CNXXF) moved beyond the interim agreement from November and as of March 1, 2019 officially agreed with 4Front Holdings, LLC to merge the two companies. The new company will initially trade under Cannex’s symbol “CNNX”, although the company said it expected to receive a new ticker in connection with the transaction.

High Tide Inc. (HTDEF) filed its year-end 2018 financial results. Revenue for the fiscal year ended October 31, 2018, was $8,7 million down from last year and mostly due to the loss of a wholesale customer in the Famous Brandz business.

Harvest One Cannabis Inc. (TSXV: HVT) (OTCQX: HRVOF) and Delivra Corp. (TSXV: DVA) entered into a definitive arrangement agreement pursuant to which Harvest One will acquire all of the issued and outstanding common shares of Delivra.

CB2 Insights (CSE:CBII) has commenced trading on the Canadian Securities Exchange (CSE) under the symbol “CBII”.

Village Farms had its shares halted from trading because it turns out it was not DTC eligible yet and that of course is a requirement on Nasdaq.


Video StaffVideo StaffMarch 1, 2019

2min6970

This week, Martha Stewart agree to work with Canopy Growth Corporation (CGC) to create a CBD line of products for animals.

On the acquisition front, Curaleaf (CURA) bought Eureka Investment Partners in a deal valued at $30.5 million. Eureka operates a cultivation facility in the Salinas Valley and is developing three dispensaries across the state. The deal will be $10 million in cash, $20.5 million in Curaleaf stock, with a potential added bonus to be paid if certain goals are met. The deal is expected to close in March 2019.

SOL Global formed a new hemp subsidiary called Heavenly RX and its first investment was for $30 million into a  Tennessee-based company called Bluhen Botanicals.

Choom acquired Clarity Cannabis MD Holdings in a cash and stock deal valued at roughly $5.5 million. Clarity has 30 retail locations in Canada.

Cannex bought Pure Ratios Holdings as a way into the CBD market in a deal valued at $8 million.

It is certainly earnings season. We can’t cover them all here, but these are the major ones:

GW Pharmaceuticals(GWPH)  released its first earnings to include sales of its drug Epidiolex. Revenue for the quarter was $6.7 million, which beat analyst estimates and sales from Epidiolex whose sales began on November 1 were $4.7 million.

MedMen Enterprises (MMNFF) reported revenue of $29 million for its fiscal second quarter but net losses remained high at $64 million.  Most of the company’s revenue came from its Southern California stores.

In other news

Zynerba (ZYNE) received a patent for its CBD gel which covers the company’s ZYN002 drug.

CannTrust began trading on the NYSE using the symbol CTST. It will continue to trade on the Toronto Exchange using the symbol TRST.


Video StaffVideo StaffFebruary 22, 2019

2min5960

New Jersey has made progress with regards to full legalization. The state’s leaders agreed to tax cannabis by the pound versus taxing according to sales. While the agreement still needs to have a majority of representatives vote in favor, it’s a big step since they have been negotiating for months without any progress.

Tilray, Inc. (NASDAQ: TLRY) is buying the largest hemp-based food company Compass Group Diversified Holdings, LLC (NYSE: CODI) otherwise known as Manitoba Harvest. The company is paying $318 million in a cash and stock deal. It is Tilray’s sign that it plans on going big with hemp.

Ascend Wellness Holdings secured $37 million in a bridge round of preferred equity and $18 million in a senior secured cultivation note. The $55 million in raised funds will be used to build out market-leading operations in Massachusetts, as well as the continued expansion in limited license cannabis markets.

Canopy Growth Corp. (NYSE: CGC) restated its latest earnings and while the third quarter figures didn’t change, the nine months figures had to be restated. It seems the losses were actually double what the company previously reported. Instead of a C$69 million loss for the nine months ending in December, it was C$155 million. This was an C$86 million mistake that was blamed on a spreadsheet formula error. How did that even get past the audits? That’s not a little mistake folks.

Namaste Technologies Inc. reached a settlement with its founder and former CEO Sean Dollinger. Dollinger will end all his formal roles with the company, drop his lawsuit and vote with the board.

CannTrust Holdings Inc. (TSX: TRST) will begin trading the Company’s common shares on the NYSE on Monday, February 25, 2019, under the ticker symbol “CTST”. The Company’s common shares will continue to be listed on the Toronto Stock Exchange under the ticker symbol “TRST”.


Video StaffVideo StaffFebruary 15, 2019

4min6010

We have exciting news. Our next conference will be on May 7 in Chicago. Go to www.greenmarketsummit.com for details.

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

4min4420

If you like this news report, please help support the Green Market Report by becoming a Patron go to www.patreon.com/greenmarketreport and feel good about keeping unbiased news alive.

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.



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