Marijuana Money Archives - Green Market Report

Video StaffVideo StaffJanuary 17, 2020

3min2240

There’s just one more week until our first Psychedelic Investing event. After that, our next cannabis conference will also be held in NYC on April 3. You can get all the information at www.greenmarketsummit.com.

GW Pharmaceuticals plc said that it expects total net product sales to be approximately $108 million for the fourth quarter and approximately $309 million for the year ending December 31, 2019. The bulk of the fourth quarter sales comes from the epileptic drug Epidiolex, which is expected to be roughly $104 million for the fourth quarter and approximately $296 million for the full year.

Organigram Holdings Inc. reported that its first-quarter 2020 revenue rose by 102% over last year to $25.15 million, which beat analyst estimates by $10.24 million. The company cautioned that it is pumping the rakes on cultivation as Canada is moving at a much slower pace on store openings.

Aphria Inc. reported revenue for adult-use cannabis increased 46% sequentially to $29 million. Total net revenue decreased sequentially by 4% to $120.6 million but jumped 457% over last year’s second quarter. Aphria delivered a net loss of $7.9 million

This week High Times announced that it was getting into the dispensary business. The company has plans for 2 flagship locations in Las Vegas and Los Angeles. In addition to that, High Times named Paul Henderson as its new CFO. This will be the third CFO for the company in just one year.

ManifestSeven (formerly known as MJIC) has acquired San Francisco-based legal cannabis delivery service company Lady Chatterley Health, which is focused on high-end women’s products for an undisclosed amount.

Rogue Station Companies, Inc. (OTC Pink: RGST) has acquired Brahman LLC, d/b/a Terpp Extractors, a Fort Collins, Colorado-based manufacturer of cannabis processing equipment in an all-stock transaction. 

Carlos Santana announced his partnership with Left Coast Ventures to develop premium cannabis and hemp CBD brands. 

And finally, Cultivar Holdings said its shares have been listed on the Canadian Securities Exchange using the symbol CULT.


Video StaffVideo StaffJanuary 10, 2020

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Green Market Report is getting closer to its first event focusing on the Investment Opportunities for Psychedelic companies. Psychedelics are gaining attention as a treatment for conditions like drug-resistant depression. We’re super excited to present this Summit on January 24 in New York City. Go to www.greenmarketsummit.com for more details. 

A new Ontario-based limited partnership created to buy cannabis-based real estate businesses called Subversive Real Estate Acquisition REIT closed on its initial public offering by raising $200 million.

Bhang Inc. (CSE: BHNG) (OTCQX: BHNGF) and CannaRoyalty Corp. d/b/a Origin House have terminated a deal to combine. Bhang will get royalty payments, input materials, manufacturing equipment, Bhang-branded finished goods, and Origin House shares, collectively valued at approximately $1.1 million.

GrowGeneration Corp. (NASDAQ: GRWG) reported revenue of $80.0 million for the 2019 fiscal year-end, an increase of $51.0 million or 176% versus 2018. The revenue for the fourth quarter of 2019 was $26 million versus $9.1 million for the same time period in 2018.

KushCo Holdings Net revenue increased 38% from last year’s fiscal first quarter to $35.0 million. The net loss was roughly $12.5 million versus last year’s $8.6 million. The company also said it was off to a positive start with the recently launched hemp trading desk, which is on pace to achieve $25 million in revenue for fiscal 2020

Emerald Health Therapeutics, Inc. has agreed to the second tranche of funding for the company for approximately $4.5 million.

Hightimes Holding Corp. told investors that it accepted the resignation of Kraig G. Fox as the Company’s Chief Executive Officer and President Effective December 24, 2019. On January 6, 2020, Stormy Simon, one of the Company’s independent directors and former President of Overstock.com Inc., was appointed to the position of Chief Executive Officer of the company by the board of directors.

Vireo Health International, Inc. (CNSX: VREO)(OTCQX: VREOF) announced that workers at its Maryland MaryMed voted overwhelmingly to ratify a Collective Bargaining Agreement and officially join the ranks of United Food and Commercial Workers Local 27 (UFCW27).

SOL Global Investments Corp.’s  (CSE: SOL) (OTCPK: SOLCF) CannCure Investments Inc. will be going public through a reverse merger with  Goldstream Minerals. CannCure will be called “Bluma Wellness Inc.” with operations in Florida via One Plant Florida which is also known as 3 Boys Farm and in California with premium flower cultivator Northern Emeralds. It’s expected to close on or about March 31.  

Ericka Pittman is officially joining Viola as its new CMO. The new c-suite appointment marks the first hiring of an African American female CMO of a multi-state cannabis operator.


Video StaffVideo StaffJanuary 3, 2020

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The Green Market Report is hosting its first Psychedelic Investing conference on January 24 in New York City, head over to www.greenmarketsummit.com to buy your tickets now. This half-day conference is titled The Economics of Psychedelic Investing and features some of the top emerging companies in this field. Held in the beautiful ballroom of the WeWork space by Bryant Park, investors will learn about this up and coming industry from some of the key players. 

Markets were closed on Wednesday for the New Year holiday, but the dispensaries in Illinois were open. Illinois became the 11th state to legalize the sale of adult-use marijuana.

Green Thumb Industries (GTI)  had four stores open for sales, while Cresco Labs had five stores open for business. Cresco said that it served 3,145 people on New Year’s Day and sold 9,258 cannabis products with an average ticket price totaling $135.

Harvest Health acquired Mjardin’s Cheyenne property in Nevada in a deal valued at $35 million. 

TerrAscend increased its private placement to $30 million from a previously planned $24 million. It will be used to help pay for the Ilera Healthcare acquisition.

1933 Industries Inc. reported first-quarter revenues of $3.9 million, down 26% from its previous quarter, mainly due to the decline in market share for vape and distillate sales in the recreational market in Nevada. The company said that vaping accounts for 25% of cannabis sales in Nevada while the nationwide decline was 15% during the first week of September, at the state level, Nevada saw a drop of 32% in vape sales.

C21 Investments Inc. delivered third-quarter revenue of $10.58 million, a sequential increase of 7.5% over the second quarter and a big jump over last year’s $305,011 for the same time period. The net loss for C21 was $5.1 million for the third quarter.

That’s it for this week. Have a happy new year everyone and let’s look forward to positive things for this year. 


Video StaffVideo StaffDecember 13, 2019

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This week was the 2019 MJBiz conference. This year there are over 1300 exhibitors and 36,000 attendees.

TerrAscend Corp. (CSE: TER) announced its intention to complete a private placement offering. The company plans to offer approximately 10.77 million units of the company at a price of CAD$2.45 per share,  which will generate gross proceeds of US$20 million. the company will use the proceeds of the offering to speed up the completion of its New Jersey cultivation and processing facility and to make a purchase price payment for the acquisition of Ilera Healthcare. 

MedMen executed a term sheet for its non-brokered offering of subordinate voting shares for aggregate gross proceeds of US$27 million at a price per share of US$0.43 with a new strategic investor and an existing investor, Wicklow Capital. Basically Andrew Modlin is granting a limited proxy to Ben Rose, the Executive Chairman of the Board  his Class A Super Voting Shares for a period of one year. The company also agreed to additional cost reductions and amending the maturity date for a term loan. The company is also forecasting 2020 revenue in the range of $225-$245 million and in 2021 a range of $450-$50m. 

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) named David Klein as the company’s Chief Executive Officer effective January 14, 2020. The company said that Klein has served in a number of senior leadership capacities over the past 14 years at Constellation Brands.

Cresco Labs (CSE:CL) (OTCQX:CRLBF) has completed its first harvest from its expanded cultivation facility in Lincoln, IL. The state will begin sales of legal adult-use cannabis on January 1 and is projected to be a $2-4 billion dollar market once it has matured and is expected to be one of the largest cannabis markets in the country.  The company also announced this week that it was going to shore up its balance sheet by selling off one of its properties. Cresco said that it would sell its Lincoln, Illinois cultivation facility to GreenAcreage Real Estate Corp. (GreenAcreage), for $50 million.

REX Shares (REX) has launched the MJO, the first leveraged exchange-traded product in the U.S. linked to the cannabis industry. MJO is an Exchange-Traded Note (ETN), is linked to MSMJ, the Indxx MicroSectors™ North American Cannabis Index, and will seek to provide 2x leveraged exposure to the Index. 

 

Holistic Industries said it will make a $20 million investment in Madison Heights for its Michigan headquarters. 


Video StaffVideo StaffDecember 6, 2019

3min5720

The state of Michigan began sales of adult-use cannabis on Sunday. People waited in long lines in cold weather for a chance to buy recreational marijuana. There weren’t a lot of dispensaries open for the first day, but the state’s regulatory agency said that $221k was spent on Day 1.

Four government agencies teamed up to make a statement regarding banking and hemp growers. The key takeway was that the banks would not need to fill out Suspicious activity reports known as SARS for companies engaged in the growth or cultivation of hemp. The narrow interpretation is that this only applies to farmers, but many in the industry believe it applies to all hemp producers and brands.

Rapper Lil Wayne announced he was launching his own cannabis brand called GKUA. If you were wondering what the initials stand for, it doesn’t stand for anything They just liked the letters.

Sunniva continues to spiral downward. The company is being sued by Matrix Venture who is claiming default on a loan and wants the Okanagan Falls facility as repayment. Sunniva says it will the lawsuit, but it did concede in a filing that it was in default and there is another financial instrument the company is in default on. You may recall, the C-suite has been in great turmoil as the CFO and other departed.

Cresco Labs entered an at the market agreement with Canaccord for C$55 million in shares.

Indus Holdings reported revenue of $10 million for its fiscal third quarter, still, the EBITDA loss was $16 million.

4Front Ventures reported third-quarter revenue of $16 million and a net loss of $7 million.

SOL Global reported a second-quarter net loss of $51 million on no revenues.

Isodiol Reported revenue of $1.8 million for the second quarter, but a net loss of $3.2 million. The company said it would be rebranding and restructuring its product lines.

In stock moves, Willow Biosciences received approval to trade on the Toronto Stock Exchange. The symbol will remain WLLW.

Jushi Holdings received approval to trade on the Canadian Securities Exchange using the symbol JUSH, they will leave the Neo exchange.


Video StaffVideo StaffNovember 22, 2019

2min7440

It was a big week in Washington for the industry and I don’t mean the debates or the impeachment hearings. The House Judiciary Committee passed the MORE Act, which is legislation to remove cannabis from the controlled substances act and decriminalize it. It will also remove prior and pending marijuana convictions. The next step would be for the legislation to go to a full house vote and then on to the senate. After that, it would still need to be signed by the president. It’s the most comprehensive cannabis reform bills introduced in Congress.

We started the week absorbing the news released after the market close on Friday that MedMen was slashing its ranks and scaling back its expansion plans. 190 employees got pink slips and the company is selling off its assets.

It was another big week for earnings. We’re just going to hit the high notes here.

Trulieve announced Q3 revenue of $70 million which beat estimates and a nice net income of $57 million.

Green Thumb Industries reported third-quarter revenue of $68 million, but a net loss of $17 million.

Harvest Health delivered revenue of $33 million for its third quarter, but a net loss of $39 million.

Beleaguered TILT Holdings turned a corner and delivered net income for the quarter of $26 million on revenue of $46 million.

iAnthus delivered $22 million in revenue, but also a net loss of $15 million.

Aurora Cannabis reported a drop in revenue and said it suspended construction at two of its largest greenhouses.

HEXO reported that it was growing plants in unlicensed rooms, but unlike CannTrust, Health Canada said they were okay with the company’s actions.

And Sunniva took a big hit as the company’s president resigned, just one week after the CFO quit.


Video StaffVideo StaffNovember 15, 2019

4min4130

This is the Green Market Report’s Marijuana Money for the week ending November 15, 2019.

It was a heavy week for earnings as some of the top players delivered the most recent quarterly numbers.

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) fell over 9% on news that the company’s second-quarter earnings missed analysts’ estimates. The Canadian-based cannabis company reported (in Canadian dollars) gross revenue of $118 million, a 6% increase sequentially and a 408% increase over last year’s $23 million for the same time period ending in September. The net revenue of $76 million fell 15% sequentially and missed estimates by $29 million. It did increase by 229% over last year’s $23 million. The stock was lately trading at USD$16.68.

The net loss decreased sequentially from $1.2 billion in the first quarter to $374 million in the second quarter. It also increased by 13% from last year’s net loss of $330 million.

Charlotte’s Web Holdings, Inc. (TSX: CWEB)(OTCQX: CWBHF)  reported that its revenue rose 41.8% to $25.1 million in the third quarter that ended September 30, 2019, versus $17.7 million for the same period in 2018. Still, the company delivered a net loss of $1.3 million versus last year’s net income of $1.8 million.

The operating expenses soared to $19.6 million over last year’s $9.8 million for the same time period. The company said in a statement that its “third-quarter operating expenses were $4.7 million”, but that isn’t the number that appeared in the financial table. The company did say that the rising expenses were “to support the Company’s growth and transition to a consumer-packaged goods operating company.

Acreage Holdings, Inc. (CSE: ACRG.U) (OTCQX: ACRGF) reported third-quarter revenue of $22.4 million, a 307% increase over last year’s $5.5 million for the same period in 2018. The company also reported a net loss of $39.9 million versus last year’s net loss of $4.5 million and the EBITDA loss was $44 million.

Organigram Holdings Inc. (NYSE: OGI) saw its stock plunged by almost 20% after the company slashed its guidance for the fiscal fourth quarter that ended in August after the market close on Monday. The stock was lately trading $2.74. The company said it will report earnings before the market opens on November 25. Organigram said it now expects fiscal fourth-quarter net revenue of C$16.3 million or $12.3 million, a huge drop from the third quarter revenue of C$24.8 million.  FactSet had analyst estimates at C$27.9 million for the fourth quarter.

IM Cannabis Corp became the first Israeli medical cannabis operator to list its shares in Canada. It now trades under the ticker “IMCC” on the Canadian Securities Exchange. This listing follows Israeli-based IMC Holdings Ltd’s recent reverse takeover of IMC, formerly known as Navasota Resources Inc., that included a private placement offering of approximately CAD$20.4 million. The subscription receipts from the private placement purchase were converted into 19,460,527 Common Shares and 9,730,258 Common Share purchase warrants.


Video StaffVideo StaffNovember 8, 2019

3min5230

Earnings season is underway and with the sector in a bear market, there seems to be a lot of pressure on companies to deliver solid results. GW Pharmaceuticals managed to do that but the stock still tumbled confusing shareholders. The company reported third-quarter net sales of $86 million in the cannabis drug Epidiolex. Revenue for the quarter was $91 million beating estimates. The losses were cut to $13 million versus last year’s $79 million, still, the stock sold off.

Innovative Industrial Properties beat analyst estimates with revenue that rose over 200% to $11 million and earnings per share of 55 cents. The dividend increased by 30% to 78 cents per share. The stock jumped over 9% on the news. 

CV Sciences (OTCQB:CVSI) reported revenue of $12.6M (-7.4% Y/Y) which missed estimates by $6.01M. Third-quarter sales were impacted by increased market competition in the natural product category, and the continued impacts on retail customers as a result of the uncertain regulatory environment for CBD. The third quarter Non-GAAP EPS of -$0.01 missed by $0.02 and the GAAP EPS of -$0.02 missed by $0.03. The decline in operating income is primarily related to reduced sales and additional investment in sales, marketing, and R&D activities.

For fiscal year 2019, the company expects revenue to be in the range of $55 million to $57 million.

Merida Priced its IPO to form a $120 million special purchase acquisition company. The units will commence trading November 5, 2019 on Nasdaq under the symbol “MCMJU” and are expected to commence trading on the Neo Exchange Inc. on or about November 8, subject to satisfying certain listing conditions, under the symbol “MMK.UN”.

TILT Holdings closed on a $35 million private placement which will be used to pay off a high-interest rate bridge loan. The company also agreed to board changes.

Terra Tech is merging with the over the counter drug company OneQor and may spin off its cannabis holdings.

Sunniva lost its CFO but said its CannaPharmRx deal is still on.

MediPharm Labs filed to list on the NASDAQ.


Video StaffVideo StaffNovember 1, 2019

3min7840

This week the USDA released a draft for the regulation of hemp in the US. once the rules are released they will be temporary for the first year. This allows the states to participate in hemp cultivation and processing for the 2020 growing season. The rules also cover other important things like where hemp can be grown, THC testing standards, biomass transportation, licensing regulations, and more.

MedMen had a rough week. The company reported earnings and while it wanted the market to focus on the full-year revenue of $130 million, it was the $277 million in losses that caught everyone’s attention. In addition to that Gotham Green made changes to the company’s credit facilities and took majority control of the company’s board. Then Cowen & Co piled on as analyst Vivian Azer questioned the company’s cost-cutting goals.

Hexo stock took another beating. Last week the company announced layoffs, this week it reported earnings of $15.4 million versus last year’s $13 million but then delivered a net loss increase of over 400% coming in at $56 million for the quarter versus last year’s net loss of $10 million. The company also lowered guidance citing slower than expected store roll out across Canada and lower sell-through. 

So, let’s just keep going with the bad news, DionyMed is headed for bankruptcy or as the Canadians call it receivership. The company couldn’t pay the $24 million that its creditors were demanding and so the fat lady began to sing. 

The bear market forced Curaleaf to change its deal with Cura Partners. The share amount was cut by half and any additional shares will be payable upon the company meeting certain sales target goals. 

It was all terrible this week. In positive news, Liberty Health Sciences reported revenue of $10 million versus last year’s $2 million for the same time period and net income of $22 million over last year’s net loss of $5.6 million. 

The company 1906 raised $18 million in a round led by Navy Capital and General Cannabis bought a dispensary in Boulder.

Finally, presidential candidate and Vermont Senator Bernie Sanders released his plan for legalizing cannabis. He said he will remove cannabis from the controlled substances act and expunge all past convictions.


Video StaffVideo StaffOctober 25, 2019
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3min4130

After taping Marijuana Money, we learned that HEXO Corp. decided to layoff 200 employees after also postponing the release of its earnings results. The company said it is rightsizing its operations to adjust to a changing market and regulatory environment with a view towards profitability and long-term stability.

“This has been my hardest day at HEXO Corp,” said Sebastien St-Louis, CEO and co-founder of the Company. “While it is extremely difficult to say goodbye to trusted colleagues, I am confident that we have made sound decisions to ensure the long-term viability of HEXO Corp. The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020.”

We found out that the FDA and FTC joined forces to warn an online CBD merchant Rooted Apothecary about making unsubstantiated claims. The website claimed that its CBD infused products could be used to treat conditions like teething pain and earaches in babies. The letter also warned the company about describing the CBD products as dietary supplements. The letter was sent on October 10, but not made public until this week. The company has 15 days to correct the violations.

In Washington, a U.S. Senate Caucus on International Narcotics Control had a  hearing on the health impacts of marijuana, but it turned into a discussion on how cannabis’s current federal classification makes it harder for researchers to shed light on those effects.

Green Growth Brands reported revenue of $15.7 million for its fiscal fourth quarter, however, the company delivered a whopping net loss of  $31 million. The operating expenses for the quarter were $20 million. Most of the revenue came from one dispensary in Las Vegas called The Source and they brought in $5.5m. CBD revenue was $1.7 million and they are now running over 160 stores. That’s like what $10 grand a store? The company said it is shifting from building to executing in 2020.

Innovative Industrial Properties closed on a Florida property from Trulieve. Also, Trulieve was added to the OTCQX index trading under the symbol TCNNF.

Casa Verde led a $7m round of financing for cannabis lender Bespoke Financial.

Megan Rapinoe has signed on with the women-owned sports recovery CBD brand called Mendi. Rapinoe will lend her voice and vision to the company and it’s her first sponsorship since winning the world cup this year. Rapinoe became a breakout star during this year’s soccer championship.

 



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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