Marijuana Money Archives - Green Market Report

Video StaffSeptember 24, 2021

4min16163

First big news. Green Market Report is being acquired by Crain Communications. We are excited to join the team and expect to grow and expand. I will continue as Executive Editor and we will keep bringing you the quality journalism you’ve come to expect.

And speaking of acquisitions Michigan-based SKYMINT, is buying 3Fifteen Cannabis and also closing its $70 million Senior Secured Term Loan from Tropics LP, an affiliate of SunStream Bancorp, a joint venture sponsored by Sundial Growers and its $8 million equity investment from Merida Capital Holdings. The acquisition will bring Skymint’s workforce to 730 employees and a combined retail portfolio of 27 locations totaling 101,000 square feet, with an additional 18+in the 2021-2022 pipeline.

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) paid $1.35 million for a property in Missouri and entered into a long-term lease with CPC of Missouri – Smithville, LLC (CPC), a subsidiary of Calyx Peak, Inc. (Calyx). CPC is expected to construct approximately 83,000 square feet of industrial space at the property, for which IIP has agreed to provide reimbursement of up to $26.72 million. 

Stem Holdings, Inc., also known as Driven by Stem (OTCQX: STMH) (CSE: STEM), is buying an Oregon-based extraction company called Artifact Extracts and two dispensaries. The deal is valued at $2.9 million 

The (SEC)  filed charges against three individuals and one issuer on a crowdfunding scheme for two cannabis companies that raised $2 million. The money was supposed to be used to buy and invest in cannabis properties, but no money was ever used for those purposes. Instead, the money was siphoned off for personal use. In addition to that, the SEC also charged the registered crowdfunding portal, TruCrowd, and its CEO Vincent Petrescu, who placed the offerings on the portal’s platform.

This week Stifel analysts issued a huge report updating investors on their outlook for the cannabis industry. The group lowered estimates and price targets on several companies. They also noted they have a negative outlook on the Canadian cannabis industry and Canopy Growth in particular. With regards to the U.S. market, the analysts don’t believe the current administration will change the legality of the industry but believe this is actually a positive thing.


Video StaffSeptember 17, 2021

4min15311

On Tuesday, the Food & Drug Administration (FDA) issued a warning about Delta-8 THC noting that the product hasn’t been evaluated or approved by the agency. Granted the FDA’s opinion on anything cannabis-related is received with a healthy dose of skepticism. The FDA still hasn’t made any determination on CBD after years of discussion and research. The notice described 22 hospitalizations from side effects, while the Poison Control Center reported over 600 cases. 

It’s a sign of how difficult it is to be a CBD-only company. This week Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) filed for the Canadian version of bankruptcy. According to Plus’ filing, it has secured court protection from its creditors under the Companies Creditors Arrangement Act or “CCAA”, in order to restructure its business and financial affairs. Plus Products has canceled its Annual General Meeting previously scheduled for September 14, 2021.

Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) has closed its previously announced acquisition of Massachusetts-based Nature’s Remedy in a deal valued at $91.2 million. Jushi also noted that the deal was revised resulting in 4.3 million fewer shares issued to Nature’s Remedy.

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced that revenue for the fiscal 2nd quarter rose 51.4% to $43.3 million over last year’s $28.6 million. Fire & Flower delivered a net income of $19 million versus last year’s net loss of $29 million.

High Tide Inc. (NASDAQ: HITI) reported its revenue increased by 99% to $48.1 million for the third fiscal quarter versus $24.1 million in the same quarter last year.

In acquisitions this week,

Acreage Holdings, Inc. (OTC: ACRHF, ACRDF) is selling its four Oregon dispensaries to Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF).  The deal is valued at $6.5 million. Acreage’s four Oregon retail dispensaries are branded as Cannabliss and the sale will end the company’s presence in the state. The company said in a statement that the Oregon stores were negatively affecting the company’s bottom line.

WM Technology, Inc., better known as Weedmaps  (Nasdaq: MAPS) is buying Sprout, a leading, cloud-based CRM & marketing platform for the cannabis industry. Weedmaps did not disclose the valuation of the deal. 

Akerna (Nasdaq: KERN) is buying 365 Cannabis, a cannabis business management software system built on Microsoft’s Dynamics 365 Business Central in a $17 million deal at 2.1x LTM revenue. 


Debra BorchardtSeptember 3, 2021

5min15050

It was the last week of summer and you would think the news cycle would quiet down, but not in the cannabis industry. This week we saw some of the biggest deals happen.

 

But before we get to that, New York’s new Governor Kathy Hochul wasted no time in kickstarting the legal adult use program in the state. She named Chris Alexander as the Executive Director for the Office of Cannabis Management and Tremaine Wright was named the Chair of the Cannabis Board. 

 

The biggest deal announced this week was TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF)  buying Michigan-based Gage Growth Corp.  (CSE: GAGE) in a deal valued at $545 million. Gage’s portfolio includes the city and state approvals for 19 “Class C” cultivation licenses, three processing licenses, and 15 provisioning centers (dispensaries). Once the deal is closed, the combined business will have operations in 5 states and Canada, including 7 cultivation and processing facilities and 23 operating dispensaries serving both medical and adult-use cannabis markets in the U.S. and Canada.

 

Ayr Wellness Inc. (OTCQX: AYRWF) is buying Pennsylvania-based PA Natural Medicine, LLC, which operates three licensed retail dispensaries in the Commonwealth of Pennsylvania. The deal is valued at $80 million but could see an extra $40 million if milestones are met. 

 

Planet 13 Holdings Inc. (CSE: PLTH)(OTCQX: PLNHF) is buying a subsidiary of Harvest Health & Recreation Inc. (OTC: HRVSF) in an all-cash deal valued at $55 million. The company will be named Planet 13 Florida Inc

 

The Valens Company Inc.  (OTCQX: VLNCF) is buying  Citizen Stash Cannabis Corp. (formerly Experion Holdings Ltd) (TSXV: CSC) (OTCQB: EXPFF) in an all-stock deal valued at approximately $54.3 million.

 

Green Thumb Industries Inc. (GTI) (CSE: GTII) (OTCQX: GTBIF) has bought Massachusetts-based GreenStar Herbals, Inc. The value of the transaction was not disclosed.

 

Harborside Inc.  (CSE: HBOR) (OTCQX: HBORF) reported its financial results for the second quarter ending June 30, 2021, as revenues were essentially flat year over year, but up sequentially. The revenue for the quarter was $16.19 million versus last year’s $16.14, but an improvement over the first quarter’s total revenue of $12.9 million. 

 

And in psychedelic news, Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) and Creso Pharma Limited (ASX: CPH) (OTCQB: COPHF)  have mutually agreed to terminate the previously announced plan to merge

 

Markets will be closed on Monday in celebration of Labor Day.


Video StaffAugust 20, 2021

4min12530

This week  Tilray, Inc. (NASDAQ: TLRY) bought the majority of the outstanding senior secured convertible notes of MedMen  (OTCQX: MMNFF) that were originally held by Gotham Green Partners. The transaction is valued at $165.8 million. Tilray said the purchase sets the company up to own a significant equity position in MedMen. In connection with the sale of the Notes, MedMen and GGP amended the restrictive covenants and extended the debt maturity to 2028 to provide MedMen some flexibility.

In addition to the Tilray purchase, MedMen announced that investors, led by Serruya Private Equity are buying $100 million of units of MedMen at a purchase price of $0.24 (C$0.32) per Unit.

Ayr Wellness Inc. (OTCQX: AYRWF) reported revenue rising 222% to $91.3 million. This was a 56% increase sequentially. Ayr is raising its revenue guidance for 2022 revenue to $800 million, up from $725 million. Ayr’s net losses increased to $24.9 million over last year’s $5.4 million. Also this week Ayr said it was buying beverage company Cultivauna, LLC, the owner of Levia branded cannabis-infused seltzers in a deal valued at potentially $40 million.

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported that second-quarter revenues increased 72% to $58.7 million over last year’s $32.4 million. Notably, TerrAscend withdrew its previous 2021 guidance due to temporary yield declines of quality flower in Pennsylvania related to ongoing construction and expansion. In addition to that, the company has decided to increase its allocation of the company’s branded products to its own Apothecarium dispensaries in New Jersey. Last quarter the company raised its full-year guidance to $300 million versus the previous guidance of $290 million.

Greenlane (Nasdaq: GNLN) reported second quarter revenue increasing 7.1% to $34.7 million from last year’s $32.4 million. It was a slight miss for Greenlane. The net loss fell 7.5% to $5.8 million from last year’s $6.3 million net loss. The company said that core revenue (defined as non-nicotine revenue) grew 14.9% to $34.5 million.

Auxly Cannabis (TSX.V – XLY) (OTCQX: CBWTF)  reported total revenue of $29.5 million for the second quarter.

MariMed, Inc. (OTCQX: MRMD) reported its revenue increased 239% to $32.6 million versus last year and the company also increased its revenue guidance in 2021 to $118 million.

 


Video StaffAugust 13, 2021

5min15930

Earnings season was in full stride this week as some of the biggest cannabis companies reported their numbers. Unfortunately, record revenue reports didn’t push cannabis stock prices much higher.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced its revenue rose 78% to $215.1 million. Trulieve delivered a net income of $40.9 million, an increase of 116% over last year’s $18.9 million and a sequential increase of 36%.

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported its total revenue jumped by 85% to $221.9 million and beat the average analyst estimate per Yahoo Finance of $205 million. Net income for the second quarter was $22.1 million.

Columbia Care Inc.  (CSE: CCHW) (OTCQX: CCHWF)  reported revenue grew 232% to $109.7 million. This was a sequential increase of 19% and in line with the average analyst estimate from Yahoo Finance for revenue of $109 million. The company reaffirmed its 2021 revenue guidance of $500 – $530 million and adjusted EBITDA guidance of $95 – $105 million. 

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its total revenue of $97.5 million which increased 28.5% quarter-over-quarter and 236.2% year-over-year. In addition to the solid revenue gains, Ascend said it was increasing its full-year guidance for 2021 from a range of $320 million to $340 million to a range of $330 million to $350 million. This revised range represents growth of approximately 130% to 145% year-over-year.

Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF)  reported that revenues increased 164% from the second quarter of 2020 to $198 million. The company missed analyst expectations.

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its revenue in the second quarter reached $312 million, increasing 20% sequentially and 166% YoY. The company’s net losses were trimmed from $17.2 million in the first quarter to just $7.2 million in the second quarter.

Cannabis online marketplace company Leafly Holdings Inc. and the SPAC (Merida Merger Corp. I (NASDAQ: MCMJ) sponsored by Merida Capital Holdings have signed a definitive agreement for a business combination. When the transaction is complete, Merida will adopt the Leafly name, and its common stock is expected to be listed on the NASDAQ under the ticker symbol LFLY. The combined company’s transaction values at an implied, fully diluted enterprise value of approximately $385 million and equity value of approximately $532 million. 

And finally, Cannabis industry folks are hopeful that the resignation of Governor Andrew Cuomo this week will mean legalization efforts will get back on track. The Governor often signaled he was in favor of full legalization, but often behind the scenes, he seemed to slow the process. While the incoming governor Lieutenant Governor Kathy Hochul hasn’t signaled whether it will be a key issue for her, many are feeling positive that the April 2022 goal may be back in play. She does come from the more conservative area of the state, but she is also a pragmatic politician and one known for getting things done.

 

 


Video StaffJuly 30, 2021

5min18230

Earnings season is just getting underway as July winds down.

It was a big week for Turning Point Brands, Inc. (NYSE: TPB) who reported with sales increasing 16.8% to $122.6 million in the second quarter. The average analyst estimate for revenues was $106 million according to Yahoo Finance. Net income increased by 49.2% to $15.4 million. The company also announced it was buying the cigarillo company Unitabac. Cigarillos are typically short, narrow cigars so maybe the company is planning on offering baby blunts in the future.

 Verano Holdings Corp. (CSE: VRNO) (OTCQX:  VRNOF) is buying WSCC, Inc., also known as Sierra  Well. This will add two operational dispensaries and an active cultivation and production facility in Nevada along with two real estate properties in Carson City and Reno. The acquisition is a cash and stock deal valued at $29 million. 

Tilray, Inc. (Nasdaq: TLRY) reported its net revenue increased 25% to $142.2 million in the fourth quarter. Cowen & Co. had estimated revenue to be $163 million for the quarter making this a fairly large earnings miss. Investors though seemed pleased with the results as the stock was trading higher by over 10% in early trading

Red White & Bloom Brands Inc. (OTCQX: RWBYF) delivered its first-quarter financial results as revenue fell to $11.8 million from the fourth quarter’s revenue of $15.7 million. The company blamed the decrease on the manner in which it recognizes revenue under IFRS in the state of Michigan for its Platinum Vape branded product sales and the strengthening Canadian dollar over the fourth quarter.

Cannara Biotech Inc. (OTCQB: LOVFF) announced its third-quarter results with total revenue of $7.2 million, including $5.9 million in cannabis sales, net of excise tax. this was a huge gain over last year’s $763,906.

And finally, Seth Rogen’s cannabis company Houseplant and Canopy Growth Corporation (NASDAQ: CGC) have decided to end their relationship after three years. It won’t affect the company’s U.S. business and the product is expected to remain on some shelves through September 2021

 


Video StaffJuly 23, 2021

4min20850

July 10 or Dab Day is turning into a dud day. It’s also called “oil” day and the idea is that 710 upside down spells oil. This year total US cannabis sales decreased by -10.4% over an average of the previous four Saturdays. concentrates sales increased by 24.1% and were the only category that enjoyed positive growth.

Ayr Wellness Inc. (OTC: AYRWF) is buying Nevada-based Tahoe Hydroponics Company, LLC in a deal valued at $17 million. It is a cash and stock deal that will consist of $5 million in cash, $3.5 million in debt, and approximately $8.5 million in stock. Tahoe Hydro operates roughly 33,000 square feet of total cultivation and manufacturing space in its facilities in Carson City, Nevada, and Sparks, Nevada.

Entourage Health Corp. (formerly WeedMD Inc.) (TSX-V:ENTG) (OTCQX:WDDMF) announced preliminary unaudited revenues of $13.6 million for the three months ending June 30, 2021. The company said this was another sequential quarter of record sales growth across its adult-use and medical sales channels.

Clever Leaves Holdings Inc. (Nasdaq: CLVR) closed on $25 million in financing from Catalina LP, an affiliate of SunStream Bancorp Inc., a joint venture initiative sponsored by Sundial Growers Inc. (Nasdaq: SNDL).

Empower Clinics (OTC: EPWCF) is selling its legacy cannabis assets for $1 million and said it plans to fully focus on its integrated healthcare business. 

Michigan-based Gage Growth Corp. (CSE: GAGE) has added another high-profile name to its dispensaries. Gage and Pure Beauty have entered into an exclusive five-year partnership agreement to launch Pure Beauty’s line of premium cannabis products in Michigan, pending Michigan. Pure Beauty is a California-based boutique cannabis brand that combines art, culture, and style with sustainable and social justice practices.

And finally, Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) announced that Peter Bilodeau has been asked to step down from his role as Interim Chief Executive Officer effective immediately, and Matt Hawkins, Chairman, will assume the position of Interim CEO while the company completes its search for a successor.


Video StaffJuly 16, 2021

5min13420

The big news this week was that  Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR), and Sen. Cory Booker (D-NJ) released the full text of their federal draft marijuana legalization bill called the Cannabis Administration and Opportunity Act. This massive piece of legislation is clocking in at a hefty 163 pages. In general, the legislation aims to deschedule cannabis, expunge prior records, fund equity programs, remove collateral consequences, and transfer regulatory authority for marijuana to the Food and Drug Administration and other federal agencies. Only consumers over the age of 21 would be allowed to buy legal cannabis and adults would be limited to purchases of up to 10 ounces. The bill would also impose a federal tax on marijuana products and put some of that revenue toward grant programs meant to support people from communities most impacted by prohibition who want to participate in the industry.

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) released its results for the third quarter ending May 31, 2021, with revenue growing 31% over last year to $29.1 million. This was an increase of 51% from the second quarter. The net loss fell 96% to just $4 million from last year’s $89 million

EVIO Inc. (OTC: EVIO) has entered into a Letter of Intent to acquire Leading Edge Pharms, Inc. (LEP) of Henderson, Nevada. LEP is a biotechnology company focused on the research, development, and commercialization of novel cannabinoid therapies and innovative drug delivery systems that provide safe and effective topical solutions for pain management.

High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) is buying a dispensary chain with six stores owned by 102105699 Saskatchewan Ltd. for C$2,900,000. High Tide will acquire a portfolio of six retail cannabis locations in Regina, Saskatchewan, out of which one is operational and five are in various stages of construction and development and are all expected to be operational by the end of 2021.

Australis Capital Inc., operating as Audacious (CSE: AUSA) (OTC: AUSAF) is buying a cannabinoid-infused shot beverage company called LOOS.

MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) said that it has decided to suspend construction and certain business activities at the company’s Warman facility effective July 12, 2021. Additionally,  MJardin said in a statement that it has launched a Sales and Investment Solicitation Process related to the company, and all its Canadian and US assets.

And finally

Sacha Baron Cohen, the creator of the character “Borat” has sued privately-owned Massachusetts cannabis company Solar Therapeutics Inc. and the company’s President Edward Dow III for $9 million. Cohen is angry that his likeness as the character Borat was used without his permission on a billboard that was placed on a busy highway. The lawsuit claims that by using Cohen’s image it looks as if he is endorsing cannabis products.


Video StaffJuly 9, 2021

3min12110

This is your Marijuana Money Minute for the week ending July 9. It was a shortened trading week with markets closed on Monday for the 4th of July holiday. It was also fairly quiet for the cannabis industry. 

 

 Agrify Corporation (NasdaqCM:AGFY) entered into a definitive agreement with current customer Nevada Holistic Medicine for the build-out of their 12,400 square foot state-of-the-art facility that should result in about $12,000 in fees. The company has also signed a definitive Collaboration Agreement forming a long-term research and development partnership with Curaleaf Holdings. Agrify will supply its software platform for three years at Curaleaf’s primary R&D facility located in Massachusetts.

 

Gage Growth Corp.  (CSE: GAGE) (OTC: GAEGF) now has an exclusive partnership agreement with multi-platinum-selling, GRAMMY Award and Golden Globe Award-nominated recording artist Wiz Khalifa’s brand, Khalifa Kush (“KK”), to develop and launch a line of premium cannabis products in the state of Michigan. Gage will be the exclusive producer, processor, and retailer of KK branded products in Michigan.

 

 WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) is changing its name to Entourage Health Corp. over the next few months. The company said that throughout the transition it will continue doing business as Entourage Health Corp., its Health Canada license will continue under its wholly-owned subsidiary WeedMD RX Inc.

 

Terra Tech Corp. (OTCQX:TRTC) has changed its name to Unrivaled Brands following its completed merger with UMBRLA, Inc. As part of its rebranding, Terra Tech will start trading under its new ticker symbol, “UNRV”, on the OTCQX market at the market opening on Thursday, July 8, 2021.

 

Khiron Life Sciences  (OTCQX: KHRNF) has agreed to sell 27 million units of the company for gross proceeds of $12 million. 


Video StaffJuly 2, 2021

5min17060

Akerna (NASDAQ: KERN) is predicting the 4th of July will bring in over $206 million in legal cannabis sales across the United States. The report predicts July 2nd to be the second highest sales day of the year, just after 4/20. 

TPCO Holding Corp. also known as The Parent Company (OTCQX: GRAMF) is buying a West Hollywood, CA dispensary named  Calma West Hollywood in a deal valued at $11.5 million. It is expected to close in the third quarter of 2021.

There were a few earnings to discuss this week. 

High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) said its revenue increased by 99% to $40.9 million in the second quarter versus $20.6 million in the same quarter last year. 

Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF) reported first quarter revenue rising 53% to $13.9 million over last year’s $8.8 million. This topped the previous guidance from Flower One of $13.5 million and was a big jump sequentially over the fourth quarter’s $9.7 million.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) announced preliminary unaudited revenue results for the quarter ending in  May. The Company expects total revenue to be approximately $7.1 million, representing a $5.1 million increase compared to the second quarter of 2021.

CBD company Exactus, Inc. (OTCQB:EXDI)  acquired Panacea Life Sciences which was founded by Leslie Buttorff, in 2017 as a woman-owned business Buttorff will lead the newly merged company.

It seems like capital raising is back with a vengeance. 

 Kadenwood, a leading plant-based wellness company has raised $50 million of cash and media value in a Series B fundraising round. 

Nabis, California’s largest licensed cannabis wholesale marketplace platform, announced it raised $23 million in a Series B funding round.

Columbia Care Inc.  (OTCQX: CCHWF) closed its previously announced private placement raising $75 million.

Markets will be closed on Monday in the U.S. to celebrate the fourth of july holiday. Everyone have a safe and happy weekend.

 


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