Marijuana Money Archives - Green Market Report

Video StaffVideo StaffJune 15, 2018

6min1600

Green Thumb Industries

Chicago-based cannabis company Green Thumb Industries (GTI) began trading on June 13 under the ticker symbol “GTII” on the Canadian Securities Exchange. GTI’s owner VCP23 did a reverse take over of Bayswater Uranium Corporation raising $67 million through a private placement. VCP reported that its total revenue for the year ending December 31, 2017, was $16.5 million with a net loss of $4 million.

48North

Toronto-based 48North began trading on Monday on the TSX Venture Exchange with the ticker NRTH. Led by Chief Executive Officer Alison Gordon, this cannabis company is a vertically-integrated house of brands focused on women’s health and wellness. So far the company has raised $27M between 2014-2016 via non-brokered private placements.

22nd Century Group

22nd Century Group, Inc. (NYSE: XXII) announced that it will be added to the Russell 2000, Russell 3000, and Russell Global Indexes when FTSE Russell (Russell) reconstitutes its U.S. and global equity indexes on June 22, 2018.

Aurora Cannabis

Aurora Cannabis Inc. (ACBFF) has signed a binding term sheet to acquire all the shares of private company Anandia Laboratories Inc. in an all-stock transaction valued at C$115 million. Anandia Labs is led by cannabis expert Jonathan Page, Ph.D., the company’s CEO and Co-founder. Dr. Page was the first scientist to sequence the cannabis genome and provide deep insights into the biosynthesis of cannabinoids and the interplay between cannabinoids and terpenes.

PRØHBTD

PRØHBTD, the leading cannabis lifestyle media, and brand platform have raised $12 million in funding, $8 million of which was recently secured from a Series A round of investment. The company plans to go public in Canada this year.

In other cannabis news…

Farm Bill

The Farm Bill passed with the attached hemp legalization language.  The Senate Agriculture Committee passed the 2018 farm bill in a 20-1 vote despite an attempt to tighten farmer subsidies. Sen. Chuck Grassley, R-Iowa, cast the sole “no” vote, because his amendment to limit subsidy payments wasn’t added to the proposed bill.

And finally

A new report from the Alaska Alcohol and Marijuana Control Office and the Department of Environmental Conservation found that labs testing marijuana for potency were delivering very different results.

Different labs using similar methodology should have reported similar results, instead, the results came back and they weren’t even close. For example, the test took a marijuana muffin, and brought it to the only two testing labs in the state. The results delivered a large margin of error between the two. They can’t even tell which lab is the accurate one.

 


Video StaffVideo StaffJune 8, 2018

4min2470

The nation of Canada is on the precipice of a historic moment as the country’s legislature stands poised to pass cannabis legalization. On June 7, 2018, the Senate will hold a vote on Bill C-45, a measure legalizing recreational cannabis nationwide. If passed, Canada will become the first G7 nation to legalize cannabis for recreational purposes.

Aphria (APHQF) announced that it has entered into an agreement with Clarus Securities to raise $225 million on a “bought deal” basis, as it looks to expand its production facilities. An over-allotment option could lift the deal to C$258 million. The shares are being priced at C$11.85. The deal is expected to close on June 28.

The Green Organic Dutchman Holdings Ltd. (TGOD) is getting into the beverage businesses. On June 6, 2018, the company announced the official launch of its global division focused solely on the beverage industry, appropriately named The Green Organic Dutchman Beverage Division. Also, The Green Organic Dutchman Ltd. (TGODF) entered into an engagement letter with Canaccord Genuity Corp. to purchase 3,910,000 special warrantsof the company, on an bought deal basis. The price per special warrant is $6.40 generating an aggregate gross proceed of approximately C$25 million.

Organigram Holdings Inc.  (OGRMF) has taken a 40% stake in Canadian cannabinoid product company Eviana Health for C$10 million. In addition to that Organigram has signed a separate agreement with Eviana for five years to purchase up to 50% of the cannabidiol (“CBD”) production of Eviana.

Canopy Rivers said it is completing a reverse takeover with AIM2 Ventures and separately said it is raising $60 million ahead of an eventual public listing.  As part of the deal, Canopy will take over AIM2 Ventures, which trades on the TSX Venture Exchange under the ticker symbol “AIMB.P.” Canopy Rivers, which was formed just over a year ago on April 26, 2017, will use its investment and operating expertise to look for additional opportunities in the cannabis sector, the company said in a statement.

Also, MedMen Enterprises (MMEN)  is acquiring Treadwell Nursery in a $53 million deal where MedMen will receive a cultivation facility situated on 5 acres in Eustis, Florida and the right to open 25 medical marijuana dispensaries in the State of Florida.


Video StaffVideo StaffJune 1, 2018

3min1350

The big news this week was that California cannabis retailer MedMen began trading on the Canadian stock exchange (MMEN) . The company has a billion valuation, which has come under some criticism for being a bit frothy as compared to the current state of revenues. However, the company hasn’t reported any earnings since before the California stores came online so that picture could change quickly once the market sees those sales numbers. The stock has fallen 23% since it began trading and has endured withering comments from a site called equity guru as well as from many of the better-known marijuana stock traders.

There were some earnings out this week.

Golden Leaf Holdings (GLDFF) said first-quarter revenue soared, thanks to its 2017 acquisition of Chalice Farms and highlighted the progress it’s making in expanding its cannabis operations in California. Golden Leaf said its revenue jumped 42 % year-over-year to $3.2 million. It also generated $353,000 in gross profit, up from $238,000 in the year-ago quarter.

Emblem Corp. (EMMBF) reported that its revenues for the first quarter increased 41% to $1,277,000 in Q1 2018 from $903,000 in Q1 2017. Gross profits increased 304% to $182,000 compared to a gross loss of $89,000 for the same time period in the previous year.

Sunniva  (SNNVF) released its financial results with $5.2 million in revenue from its two subsidiaries, Natural Health Service Ltd. and FSD, which contributed $2.7 million and $2.5 million, respectively. Net loss for the period ended March 31, 2018, was $6.3 million as compared to $1.0 million during the period ended March 31, 2017.

Hiku (HIKU) reported revenue for the first quarter and it was relatively small, totaling C$246,143. The vast majority of that revenue was gobbled up by the retail cost of sales, which totaled C$202,431. The company managed to squeak out a gross profit of C$15,554. Overall, Hiku posted a net loss of $9.1 million for a loss per share of eight cents versus last year’s loss per share of one cent.

On The Acquisition Front

Canopy Growth Corporation (CGC) is staking a claim in the African medical cannabis market. On May 30, 2018, the company announced that it has acquired Daddy Cann Lesotho PTY Ltd., which trades under the name Highlands.

And in the research world…..

BMO Capital Markets, a North American financial services provider, has initiated coverage on both Aphria Inc. (APHQF) and Canopy Growth (CGC) with a rating of Outperform.


Video StaffVideo StaffMay 25, 2018

3min2160

It’s actually been a fairly quiet week for cannabis financial news.

In political news, the New York Democratic Party said it is endorsing legalizing marijuana. The party recently held its primary and while actress Cynthia Nixon made a big splash, Governor Cuomo overwhelmingly won the race. Nixon was pushing hard for legalization and managed to nudge Cuomo into a more accommodating stance towards legalization.

Cannabis Wheaton (CBWTF) landed a gigantic C$100 million deal with a group of underwriters led by BMO Capital Markets. The group has the option for an over-allotment that could bring in an additional C$15 million. The deal is expected to close near May 31.

Newstrike Resources (NWKRF) snagged a private placement deal valued at $40 million. The net proceeds will be used for growth and working capital.

Aurora Cannabis (ACBFF) is continuing its acquisition push with its latest decision to take a 9% ownership stake in CTT pharmaceutical Holdings valued at $1 million. The company has been on a spending spree as it builds an empire to compete in the Canadian market.

Leafbuyer Technologies (LBUY) was flagged by the OTC Markets group for heavy stock promotion. The company has spent thousands for promotion while reporting a million dollar loss in the last quarter. In fact, most of the company’s revenue has been spent on promotion. The company said its insiders haven’t sold any stock and said the promotions haven’t increased the stock price. The flagging is part of an OTC Markets push to make sure investors are informed about stock promotions.

Cronos Group (CRON) uplisted its stock from the Toronto Venture Exchange to the Toronto Stock Exchange. The stock began trading at its new home on Wednesday.

Practically taking its place is Khiron Life Sciences, which will begin trading on Friday at the Toronto Venture Exchange under the symbol KHRN. It’s the first cannabis producer with core operations in Columbia.


Video StaffVideo StaffMay 18, 2018

5min4510

Aurora Cannabis/MedReleaf

After denying rumors last week about a potential acquisition, Aurora Cannabis (ACBFF) announced that it was entering into an agreement to acquire MedReleaf (MEDFF) in a deal valued at C$3.2 billion. The acquisition brings together two leading producers in Canada’s medical marijuana community enabling them to deliver a capacity of over 570,000 kg of cannabis a year.

MedReleaf is known for its ability to reduce the cash cost per gram while still delivering a premium product, Aurora is equally known for its automated greenhouses and low production costs. While Aurora paid a premium for MedReleaf, critics say that they needed this company. Aurora isn’t known for having a high-quality product and MedReleaf is. i.e. you’re only as good as your product.

Canopy Growth

Canopy Growth (TWMJF) announced that it applied to the New York Stock Exchange (ICE) to list its shares. The company said that it expects to begin trading at the exchange by the end of May using the ticker symbol CGC. The company currently trades in Canada on the Toronto Stock Exchange using the symbol WEED and also on the OTC Markets with the symbol TWMJF.

New York Cannabis Market

On May 15, 2018, New York City Comptroller Scott Stringer published a report estimating the potential size of the state’s legal cannabis market and how much tax revenue it would generate for both the city and the state. According to the report, the New York state cannabis market could see up to $3.1 billion in annual sales, with up to $1.1 billion being generated in New York City alone. In terms of tax revenue, legal cannabis could generate up to $436 million for New York state and $336 for New York City.

Cronos Group Inc.

NASDAQ-listed Cronos Group Inc. (CRON) reported that its first-quarter total sales rocketed 473% to $2.9 million versus last year’s $0.5 million. Sequentially, sales jumped by 83% from the fourth quarter of 2017 to $1.3 million in the first quarter of 2018.

CV Sciences, Inc.

CV Sciences, Inc. (CVSI) announced its financial results for the first quarter ended March 31, 2018. Record Q1 2018 Sales of $8,071,000, an increase of 114% compared to Q1 2017.

Surna Inc. 

Surna Inc. (SRNA) announced its financial and operational results for the quarter ending on March 31, 2018. The company’s net bookings rose 88%, increasing from $2,454,000 in the previous quarter to $4,623,000. Revenue declined sequentially by 11%, falling from $2,309,000 in the previous quarter to $2,055,000.

MariMed Inc.

MariMed Inc. (MRMD) stock jumped 13% after it reported its first-quarter financial results for 2018 with revenues increasing 81% to $2.08 million compared to $1.15 million first quarter of 2017.  The company attributed the increase to the expanding operations of MariMed’s medical marijuana clients from real estate revenue, management fees and licensing fees. Unfortunately, the company delivered a net loss of $1.83 million in the quarter versus net income of $0.11 million for the quarter last year.

GrowGeneration

Denver-based hydroponic retailer GrowGeneration (GRWG) reported that its revenue for the first quarter of 2018 increased 70% to $4.4 million versus $2.6 million for the 1st quarter of 2017. Gross profits rose 75% to approximately $1.2 million compared to approximately $.68 million for the same time period. Still, the company delivered a net loss of $953,430 versus last year’s net loss of $283,309.


Video StaffVideo StaffMay 4, 2018

3min3520

May the fourth be with you!

The DEA won the case regarding Cannabidiol or CBD from the Hemp Industries Association. The Ninth Circuit appeals court ruled in favor of the DEA that wants to classify CBD as a schedule 1 controlled substance. The DEA has long believed that CBD is a marijuana extract and since marijuana is schedule 1 then so is CBD. The agency made a rule change in 2016 that worried CBD makers at the time, which the DEA talked down. Now it looks as if the DEA is setting itself up to go after CBD makers.

The Green Organic Dutchman went public this week as its shares began trading on the Toronto Exchange using the ticker TGOD. The company’s shares which were priced at $3.65 jumped almost 10% in the first three hours of trading as the company raised $115 million. The stock was lately trading at $4.06.

Earnings continue to roll out this week.

Cronos Group (CRON) reported fourth-quarter sales of $1.6 million and annual sales of $4.1 million. The company also delivered a gross profit for 2017 of $7.2 million versus last year’s gross profit of $1.9 million. The Nasdaq listed company has really turned a corner with net profits for 2017 of $2.4 million over last year’s loss of $1.1 million.

Namaste Technologies (NXTTF) reported sales for the fourth quarter were $5.6 million and gross profits of $1.9 million. The company also announced this week that it was acquiring Findify, an A.I. powered e-commerce platform. The idea is that the product will help Namaste recommend the right products for its clients.

Sunniva (SNNVF)  reported $16.1 million in annual revenue for 2017, but still delivered a net loss of $18.5 million. The losses stemmed from C$14.3 million in selling, general and administrative expenses and then the company also incurred costs of goods sold of C$9.4 million due to the contract physician compensation in NHS and product manufacturing costs in FSD.

 

 

 


Video StaffVideo StaffApril 27, 2018

9min2860

Zynerba Pharmaceuticals Inc. (ZYNE) announced 12-month results for its cannabidiol (CBD) gel to treat adults with epilepsy. The data is being presented today at the Emerging Science session of the 2018 Annual Meeting of the American Academy of Neurology (AAN) in Los Angeles, CA. The company is saying that the data show over the long term is seizures are reduced, yet the placebo effects in the study weren’t published.

Ontario-based medical marijuana company OrganiGram Holdings Inc.(OGRMF)  reported second-quarter results with record gross sales of C$3.2 million, a 123% increase over the same time period in 2017. The company also delivered net income in the second quarter of C$1.0 million over last year’s loss of C$5.7 million. Dried cannabis flower sales increased 68% in the quarter to 238 grams. But the real story was the 297% increase in sales in cannabis oil with 552 ml being sold versus last year’s 139ml.

MJIC Inc. announced that it had completed its quarterly rebalancing of the U.S. and Canadian Marijuana Index. Adding four companies in total, the company added General Cannabis Corp. (CANN) and Liberty Health Sciences (LHSIF) to the U.S. Index and added Hiku Brands Company Ltd. (HIKU) and Isodiol International Inc. (ISOL) to the Canadian Index.

Acquisitions continue

Golden Leaf Holdings (GLH) announced that is has signed a letter of intent (LOI) to acquire a cannabis dispensary in northern California. Included in this transaction are all of the dispensary’s assets; such as licenses and permits for cannabis cultivation, production, manufacturing, distribution, and retail. Under the agreement, Golden Leaf will pay $1.25 USD million upfront in cash, an additional $500,000 in stock, and earn-out payments of up to $8 million based on future revenue thresholds.

Cleartronic, Inc., (CLRI) announced today its subsidiary VoiceInterop, Inc. has signed a “Definitive Agreement” for the acquisition of the assets and intellectual property of CanniPlus Global, Inc., a Florida based medical CBD company.

Nutritional High International Inc. (SPLIF) announced that it signed an agreement to purchase California-based Pasa Verde, LLC. a leading cannabis extraction and toll processing facility in Sacramento, California. Pasa Verde operates a 17,600 sq ft extraction facility in Sacramento’s “Green Zone” and was the first operator in Sacramento to receive its Conditional Use Permit.

Emblem Corp. (EMMBF) announced that it purchased C$2.5 million of units of Fire & Flower Inc. at a price of C$0.80 per unit as part of a larger unit offering conducted by Fire & Flower.

Cannabis Strategic Ventures, Inc., which just completed the definitive agreement to acquire Worldwide Staffing Group, Inc.

General Cannabis Corp. (CANN) announced that it completed the closing of a private placement transaction with various private parties, including existing and new investors in General Cannabis. The company issued $5.54 million of senior secured promissory notes and an aggregate of 4,432,000 warrants to purchase common stock at the closing.

CannaRoyalty (CNNRF) company AltMed closed on a $35 million private placement.

 


Video StaffVideo StaffApril 20, 2018

5min4040

Happy 4/20 everyone. It’s the day the cannabis industry likes to celebrate as their special holiday. It’s become a huge business deal for the industry.

A recent study done by LeafLink predicts that this 4/20 will be the first ever to have retail sales top $1B, even reaching as high as $1.2B, based on their wholesale marketplace figures. According to Flowhub, in 2017, total sales of cannabis by consumers on 4/20 represented a 44 percent increase from an average Thursday and 30 percent more than an average Friday.

The big news this week had to do with biotech company GW Pharmaceuticals. The company received very positive comments from the FDA. That left many market watchers with the feeling that the FDA will ultimately approve GW’s drug epidiolex for pharmaceutical sales in the U.S. While some believe this means that marijuana would immediately be removed from the controlled substances list. Think again. That still has to be done by Congress. However, it’s hard to argue that marijuana has no medicinal purposes, which is part of the schedule 1 designation if you can get a legal prescription for it.

Green Bits, headquartered in San Jose, announced it has raised a $17 million Series A funding round, led by Tiger Global, the New York-based investment firm, along with participation by Snoop Dogg’s Casa Verde Capital.

Medicine Man Technologies (MDCL) announced today the preliminary financial results for the quarter The company reported approximately $1.2 million in revenue for the quarter, a 122% increase over the same quarter last year and representing the fifth consecutive quarter of revenue growth.

Ontario-based Aphria Inc. (APHQF) reported that its revenues for the third quarter ending February 28 were C$10.2 million versus last year’ C$5.1 million for the same time period, an increase of 100%. Revenue increased 20% sequentially from C$8.5 million.

MassRoots filed its annual report on Tuesday but didn’t get around to the company’s financials in the filing until page 24. Gross revenue for the year fell 54% to $319,242, while the net losses ballooned 146% to $44 million. In all of this mess, CEO Isaac Dietrich awarded himself a bonus of $190,659 on top of his salary of $96,971. While Mr. Dietrich’s monthly salary was decreased from 2016, his total compensation jumped from $107,917 in 2016 to $287,630 in 2017.

Lots of acquisitions to report…..

MPX Bioceutical Corporation  (MPXEF)  signed a letter of intent to acquire all the issued and outstanding shares of private company Canveda Inc., a Licensed Producer under Health Canada’s Access to Cannabis.

CannaRoyalty  is buying FloraCal Farms (“FloraCal”), a licensed ultra-premium craft cannabis producer located in Sonoma County, California for US$1 million and 3,million + CannaRoyalty shares

Livewell Foods Canada announced that it entered into a C$10 million private placement deal.

Civilized Worldwide Inc. announced that it executed a strategic investment and collaboration agreement with Canopy Rivers Corporation where they will invest C$5 million in Civilized via a convertible debenture and the companies will work together on various online, media and event mandates relating to the cannabis industry.


Video StaffVideo StaffApril 13, 2018

4min4400

The big news this week is that former Speaker of the House John Boehner and former Massachusetts Governor Bill Weld have joined the board at the up & coming Acreage Holdings. The company was formerly known as High Street Capital and initially got into the cannabis industry to make investments. It has pivoted from investor to owner and now has ownership of properties in 11 states. The company focuses on medical marijuana but expects to transition to adult-use as legality permits.

Raising Capital

Altitude Investment Management raised  $18.7 million in capital from more than 50 investors for its fund Altitude Investment Partners, which invests in a range of early-stage to growth companies in the emerging legal cannabis industry. This is a major step toward the $50 million target the firm has set for the next 11 months.  

Cannabis workforce software company Wurk announced that it has raised $3.2 million in a bridge funding round. The funding round included participation from both new and returning investors, including Poseidon Asset Management, which led the round, as well as Phyto Partners, Altitude Investment Partners, Arcview Investor Network and Arcadian Fund.

Palo Alto-based cannabis-infused edibles brand Plus Products closed an approximately $6M in Series B financing to expand its operations. The money from the capital raise will be used to fund rapid production expansion, factory automation, working capital, and new product development.

Acquisitions

Cannabis Wheaton Income Corp. (CWBTF) acquired Canadian private cannabis company Robinson’s Cannabis Incorporated in an all-stock deal. Cannabis Wheaton will acquire all of Robinson’s issued and outstanding shares.

Kush Bottles (KSHB) entered into a merger agreement to acquire Summit Innovations, a leading distributor of hydrocarbons.  This acquisition marks Kush Bottles’ entry into a new business vertical supplying gas to cannabis extractors that turn cannabis plants into oils. Kush also reported its second-quarter earnings with revenue rising 249% and gross profits increasing 270%. Still, the company’s expenses were more than the profits and so they ended up reporting a loss of almost a million dollars.


Video StaffVideo StaffApril 6, 2018

5min3890

The acquisition side of the business continues to be active.

Cannabis Wheaton Income Corp.

Cannabis Wheaton Income Corp. (CBWTF) announced that it entered into a definitive acquisition agreement to acquire licensed dealer Dosecann Inc. in an all-stock deal that is expected to close on or about April 30. Dosecann is a late-stage “Licensed Dealer” applicant pursuant to the Narcotic Control Regulations with a purpose-built 42,000 square foot facility located in Charlottetown, Prince Edward Island.

According to the company statement, Cannabis Wheaton will acquire all of the outstanding securities of Dosecann by way of a “three-cornered amalgamation.” Cannabis Wheaton will pay the holders of the Dosecann Securities an aggregate of up to $38,000,000, payable in common shares of Cannabis Wheaton subject to the satisfaction of certain post-closing time and performance-based milestones.

High Times Media

Long-time cannabis lifestyle publisher High Times (OACQ) announced the acquisition of Green Rush Daily. Terms of the deal were not released, but it was previously noted that it was an all-stock transaction. High Times said that Green Rush Daily would continue to operate independently, but would be considered part of the High Times stable of brands like the Cannabis Cup.

Green Rush Daily was founded in 2015 by Scott McGovern, who is also a Senior Executive Vice President at High Times. Prior to entering journalism, McGovern was a financial advisor with a company named Horner Townsend & Kent.

Open Source Health Inc.

The Canadian company and women’s health website Open Source Health is seeking approval from the Canadian Securities Exchange to acquire private cannabis company Weekend Unlimited Inc. in an all-stock deal.

Earnings

 CannaRoyalty Corp. (CNNRF) reported that its revenue for 2017 rose to C$3 million, but could only be compared to nine months of revenue for 2016 which was C$642,277. The same went for the company’s net losses, which were C$9 million versus a loss of C$10.3 million for nine months ending December 2016. The net loss per share was trimmed to C$0.22 for the 12 months ending in 2017 versus C$).41 for the nine months of 2016.

MariMed (MRMD) reported revenue of  $6.1 million in 2017, compared to $3.6 million in 2016, a year-over-year increase of 70.2%, primarily a result of higher sales at MariMed managed licensed cannabis businesses which in turn produce higher income for Company from fees, rents, and consulting. Gross profits were $ 3.5 million in 2017.  Gross profits rose to 58% compared to 55% in 2016. Operating Income was $1.2 million in 2017, compared to $775,000 in 2016, a year-over-year increase of 55.5%.

Emerald Health Therapeutics, Inc. (EMHTF)  and fourth quarter results. Revenue for the full year increased 270% from C$253,321 in 2016 to C$937,654 in 2017. Net losses for the year also increased from (C$2.9 million) in 2016 to (C$8.7 million) in 2017. The net loss per share went from five cents in 2016 to a net loss per share of ten cents in 2017.

Solis Tek Inc. (SLTK) today reported financial results for the year ended December 31, 2017. Revenue in 2017 increased by 5% to $8.98 million with a gross profit of $3.15 million. The net loss for the year was $14 million, compared to the previous year’s loss of $538,710. The loss increase was primarily driven by higher operating expenses as well as higher stock-based compensation expense, financing costs and changes in fair value of derivative liability. The company currently has $968,000 in cash-on-hand, which is higher than the previous year’s end total of $276,000.



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