Marijuana Money Archives - Green Market Report

Video StaffVideo StaffMarch 5, 2021

4min510

The week kicked off with the news that Virginia legislators agreed on a compromise in order to legalize cannabis. Before everyone gets too excited, it will be some time before sales can begin. The next stop for the legislation goes to Democratic Gov. Ralph Northam, who supports legalization and then once he signs, sales won’t begin until January 1 2024. 

Alimentation Couche-Tard Inc. or ACT, the owners of Circle K has increased its equity stake in Canadian cannabis company Fire & Flower Holdings Corp.  (OTCQX: FFLWF). ACT announced that it plans to convert all of its approximately $28.5 million in debt to equity and ACT will hold almost 20% of the outstanding shares of Fire & Flower.

This week has been unusually active as cannabis companies have been on a major buying spree. Schwazze, which used to be known as Medicine Man Technologies Inc. (OTCQX: SHWZ)  closed on the asset purchase of the five Star Buds dispensaries located in Colorado that it had not already previously bought.

Greenlane Holdings, Inc. (Nasdaq: GNLN) has bought the specialty silicone smoking accessory company Eyce for an undisclosed amount. 

Terra Tech Corp. (OTCQX: TRTC) said it was buying cannabis company  UMBRLA, Inc., which was recently rebranded as Unrivaled for an undisclosed amount. 

Well-known hemp CBD company Charlotte’s Web Holdings, Inc.  (OTCQX: CWBHF) is expanding beyond its current model with a planned acquisition of privately-held Stanley Brothers USA Holdings. It’s a 5 year option to buy with the payment all in stock that values the deal at $8 million. 

In earnings:

High Tide Inc., (TSXV: HITI) (OTCQB: HITIF) reported a 118% increase in revenue to $24.9 million for the fourth quarter. $75 million in total revenue was generated by retail in fiscal year 2020

Columbia Care Inc.  (OTCQX: CCHWF)  released preliminary results saying revenue rose 228% in the fourth quarter to $76 million versus $23 million in 2019. The company’s guidance for combined revenue in 2021 is in the range of $500 million to $530 million.beganAnd finally, 

Israeli-based IM Cannabis Corp. began trading this week on the NASDAQ using the symbol “IMCC”.


Video StaffVideo StaffFebruary 26, 2021

6min2600

On Monday, New Jersey’s Democratic Governor Phil Murphy signed legislation that legalizes adult-use marijuana possession and licenses retail marijuana sales. The new law caps the number of state-licensed cultivators at 37 for the first two years. Existing state-licensed medical cannabis producers will be among those eligible to provide to the retail market. It has been estimated that adult-use retailers may be operational within six months.

James Patterson, the former CEO of California cannabis delivery platform Eaze pleaded guilty to one count of conspiracy to commit bank fraud according to a report at Law360. The plan was a scheme to deceive banks into processing more than $100 million worth of credit and debit payments for marijuana purchases. The major banks and credit card companies like Visa (NASDAQ: V) and Mastercard (NYSE: MA) refuse to work with cannabis companies as the product is still federally illegal. So any transactions using these products or lying to banks about the nature of the transactions is illegal. It is being suggested that the plea could be an indication that Patterson is with prosecutors and could testify against other defendants in an effort to lower his punishment

Privately-held multi-state cannabis operator Parallel and special purpose acquisition corporation (SPAC) Ceres Acquisition Corp.  (OTCQX: CERAF) have entered into a definitive business combination agreement involving a transaction that, if completed, would result in Parallel becoming a public company. The investors have an over-subscribed private investment in public equity (PIPE) of $225 million. The deal is expected to close in Summer 2021.The deal values Parallel at an implied enterprise value of $1.884 billion with expected net revenues of $447 million in 2021. 

Green Thumb Industries Inc. (OTCQX: GTBIF) announced it has raised approximately $56 million by selling 10 million of its subordinate voting shares, which was declared effective by the U.S. Securities and Exchange Commission (SEC) as of February 8, 2021.  Green Thumb said it had received and accepted offers from investors to purchase 1.6 million registered subordinate voting shares at $35.50 per share for a total of approximately $56 million. 

Acreage Holdings, Inc. (OTCQX: ACRDF, ACRHF) announced its subsidiary, High Street Capital Partners was selling Acreage Florida, Inc. to Red White and Bloom Brands, Inc.  (OTCQX: RWBYF) for $60 million. Acreage Florida is licensed to operate medical marijuana dispensaries, a processing facility, and a cultivation facility in the state of Florida. Last summer, Acreage had announced it was scaling back from its initial plan to be the cannabis company in the most states to one that was more focused on core-markets in just nine states in the Northeast, Mid-Atlantic, and Midwest. 

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) released results for the fourth quarter and year ending December 31, 2020. Innovative Industrial delivered a fourth-quarter FFO of $1.36 missed by $0.07 and the revenue of $37.09 million missed by $1.41 million despite increasing by 110%. 

High Tide Inc. (OTCQB: HITIF) announced the closing of its previously announced “bought deal” offering that raised over  $22 million.

That’s the big news for the week.


Video StaffVideo StaffFebruary 19, 2021

4min2990

The trading week was a little shorter as markets celebrated President day on Monday. However, there was still big news this week.

 

Verano Holdings began trading on the CSE this week using the symbol VRNO after closing the reverse takeover of Alternative Medical Enterprises better known as AltMed and sometimes referred to as AME. The stock quickly shot up from its listed price of $10 to $30 in canadian dollars. On a pro forma basis, the nine months of revenue would be $241 million and the net income would be $172 million making this one of the largest cannabis companies out there.

 

HEXO Corp. (TSX: HEXO; NYSE: HEXO) is buying Zenabis Global Inc.  (TSX: ZENA) in an all-stock deal valued at approximately $235 million. Zenabis had hinted that such a deal was in the making during its fight with Sundial.  In January, the company had said it had started talks with another significant licensed cannabis producer, so it seems Hexo was the company. 

 

five-time NBA All-Star Chris Webber announced a partnership with Jason Wild and JW Asset Management, LLC to launch a $100 million private equity cannabis fund that will invest in companies led by entrepreneurs of color pursuing careers in the cannabis sector.

 

GW Pharmaceuticals plc (Nasdaq: GWPH) reported total revenue for the fourth quarter of $148.2 million. The net loss for the quarter was $29.1 million. The total revenue for the full-year 2020 was $527.2 million, a 69% increase over last year.

 

Tilray, Inc. (Nasdaq: TLRY) said that total revenue in the fourth quarter increased 20.5% to $56.6 million. For the full year of 2020 total revenue increased 26% to $210.5 million. The net loss for the year decreased to $(271.1) million versus last year’s loss of $(321.2) million 

 

MedMen Enterprises Inc. (OTCQX: MMNFF) reported its net revenue was $33.8 million for the second quarter, up 0.3% sequentially excluding Evanston. Still, the company delivered a net loss of $68.9 million. The company reported that the general and administrative expenses were $33.8 million in the second quarter, a 47% decrease from the same period last year. However, revenues are barely covering the company’s expenses.

 

California-based cannabis company Harborside Inc.  (CSE: HBOR), (OTCQX: HBORF) has been fighting the IRS over tax payments related to IRC Section 280E. The company announced that the United States Tax Court ruled in favor of the Commissioner of Internal Revenue with respect to The SJW case which refers to San Jose Wellness which had two pending tax court cases. 


Video StaffVideo StaffFebruary 12, 2021

4min2530

Canopy Growth (NASDAQ: CGC) announced its third quarter fiscal 2021 results with net revenue of $153 million, an increase of 23% versus Q3 2020. Canopy Growth said that $99 million of that revenue was driven by an increase in Canadian recreational and International medical cannabis revenue. Despite the increase in revenue, the company also recorded an eye-popping net loss of $829 million. Canopy said that this was a $720 million wider loss than the previous quarter and blamed the loss on impairment and restructuring charges and other related charges of $416 million.

Zig-Zag maker Turning Point Brands, Inc. (NYSE: TPB) announced financial results for the fourth quarter and full-year ending December 31, 2020. For the fourth quarter, the company said net sales increased 31.2% to $105.3 million and the net income increased from $25.0 million to $12.7 million. Turning Point beat expectations as the average analyst estimate for the quarter according to Yahoo Finance was $0.76 and the average estimate for revenues was $101 million. For the full year. net sales increased 11.9% to $405.1 million and the net income increased $19.3 million to $33.0 million.

The Green Organic Dutchman Holdings Ltd.  (TGOD) (OTC: TGODF) announced unaudited consolidated gross revenue for the fourth quarter of 2020 is expected to be approximately $10.9 million, reflecting growth of 235% over the prior year. Still the company revised its Canadian net revenue forecast to a range of $40 million to $45 million from the previous forecast of $61 million. 

cbdMD, Inc. ( NYSE: YCBD) announced its financial results for its first quarter ended December 31, 2020. Net sales for the first quarter of fiscal 2021 increased by 22% year-over-year to a record of $12.3 million from $10.1 million from the prior year’s quarter.

Canopy Rivers Inc. (OTC: CNPOF) reported an operating income of $3.0 million for the fourth quarter. The net income was $1.4 million.  Other comprehensive income was $80.8 million for the quarter and that led to a total comprehensive income for the quarter of $82 million. 

Zenabis Global Inc. (TSX:ZENA) announced that it has established an at-the-market equity program that allows the Company to issue up to C$15 million of common shares 

Columbia Care Inc. (OTCQX: CCHWF) has entered into an agreement with Canaccord Genuity Corp. for 2.8 million common shares at a price of C$9.00 per share for aggregate gross proceeds of C$25 million It is expected that the offering will be primarily sold to one large institutional investor. The deal is expected to close on or about February 25, 2021. 

And that’s the big news this week, on Monday the markets will be closed for President’s Day.


Video StaffVideo StaffFebruary 5, 2021

5min3080

The Scotts Miracle-Gro Company (NYSE: SMG) reported that company-wide sales increased 105% to a record $748.6 million in its fiscal first-quarter primarily driven by strong retailer support in the U.S. Consumer segment as well as continued momentum in Hawthorne, the company’s hydroponic subsidiary.  The real shining star though is the indoor growing company Hawthorne whose sales increased 71% to $309.4 million driven by strong demand in all categories of indoor growing equipment and supplies. Hawthorne sales guidance was increased to a range of 20 to 30% from a previous range of 15 to 20%.

Jazz Pharmaceuticals plc (Nasdaq: JAZZ) is buying GW Pharmaceuticals plc (Nasdaq: GWPH) in a deal valued at $7.2 billion or $6.7 billion net of GW cash. Jazz is a global biopharmaceutical company whose focus is in neuroscience, including sleep and movement disorders, and in oncology, including hematologic malignancies and solid tumors. Everyone knows GW Pharma for its epilepsy drug Epidiolex. Beyond Epidiolex, GW has a scientific platform and deep pipeline of cannabinoid product candidates. The stock jumped over 46% on the news.

Anthus (OTC: ITHUF) stock popped over 57% to lately sell at 29 cents after the company was able to close on an $11 million bridge financing. The company has had several decisions turn in its favor lately. The Monmouth County Superior Court decided to allow iAnthus to continue construction at the Pleasantville NJ facility despite a legal battle with MPX New jersey. .Last week, the company announced that in a unanimous decision, the British Columbia Court of Appeal dismissed the appeal of shareholders on the recapitalization plan. 

It seems a month doesn’t go by without  GrowGeneration Corp . (NASDAQ: GRWG ) making another acquisition. February is only just starting  and the hydroponic store chain has said it is buying Grow Depot, a two-store chain in Auburn and Augusta, Maine. The acquisition brings the total number of GrowGen hydroponic garden centers in Maine to five.

Power REIT (NYSE: PW) has acquired a 37,000 square foot state-of-the-art greenhouse cannabis cultivation facility located in Riverside County, California through a wholly-owned subsidiary for $7.685 million. The property is leased to luxury cannabis brand Canndescent, which has over 50% store penetration in California. 

Springbig announced its acquisition of BudTender. BudTender is a customer experience platform based in Canada. The acquisition will add over 200 clients to the existing customer base at springbig and will increase their market share to over 1,900 retail partners across Canada and the United States.

While many consumers put down the bottle this month for Sober January, some have picked up a cannabis-infused beverage instead causing sales to rise in this emerging category. Several cannabis beverage companies reported increases in sales in January, beyond what they experienced during the holiday season. 


Video StaffVideo StaffJanuary 29, 2021

6min2890

So many acquisitions happened this week. 

 

The Valens Company Inc. (TSX: VLNS) (OTCQX: VLNCF) entered into an agreement with ATB Capital Markets Inc. to raise C$35 million. Then following that announcement, Valens said it was buying LYF Food Technologies Inc. in a cash and share transaction for almost C$25 million, plus up to an additional C$17.5 million upon the business achieving certain earn-out EBITDA milestones. Valens said in a statement that the LYF Acquisition is expected to be accretive in 2021.

 

GrowGeneration Corp . (NASDAQ: GRWG ) is at it again. The hydroponic chain has acquired Indoor Garden & Lighting, a two-store chain of hydroponic equipment and indoor gardening supply stores serving the Seattle and Tacoma, Washington area. GrowGen said it will be consolidating its current Seattle operation into the acquired stores. This acquisition brings the total number of GrowGen hydroponic garden centers nationwide to 40 stores.

 

Ayr Strategies Inc. (OTCQX: AYRWF) has taken the next steps in its Arizona strategy by signing a Definitive Agreement to buy Blue Camo, LLC in a deal first announced in November 2020. the deal is valued at $75.4 million.

 

Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) is getting a lift in its stock after the company announced the closing of a sale-leaseback transaction with Innovative Industrial Properties, Inc. (NYSE: IIPR) that will bring the company roughly $35 million. Harvest sold an industrial property totaling approximately 292,000 square feet for $23.8 million. The company also noted on Friday that it began adult-use sales in Arizona.

 

Flower One Holdings Inc.  (OTCQX: FLOOF) completed an initial debt restructuring, closed on $10 million of a non-brokered convertible debenture offering that could rise to $25 million, and named a new CEO. The company recently defaulted on payments, so the debt has been modified and extended. Kellen O’Keefe was moved to the CEO spot from his previous position of Chief Strategy Officer

 

The doyen of lifestyle branding Martha Stewart has launched her line of hemp CBD products for dogs. Martha Stewart CBD for Pet was created in collaboration with Canopy Animal Health, a division of Canopy Growth Corporation (NASDAQ: CGC) which is focused on improving pet health through evidence-based CBD therapies.

 

And finally, This week the first psychedelic stock ETF (exchange-traded fund) began trading on the Canadian NEO exchange under the ticker PSYK. The base currency will be Canadian dollars. The ETF will be managed by Canadian financial services company Horizons ETF Management and it will be focused on the emerging psychedelics opportunity led by life science and pharmaceutical companies.


Video StaffVideo StaffJanuary 22, 2021

4min3312

It was a shortened trading week as markets were closed on Monday for Martin Luther King day. There was also the excitement this week with the inauguration on Wednesday for President Biden and Madame Vice President Harris. We wish our new administration great success. 

On Tuesday The Valens Company Inc.  (OTCQX: VLNCF)  said it made the strategic decision to liquidate the majority of its cannabis oil inventories at market-clearing prices in the fourth quarter of 2020. The stock fell over 10% on the news. This company said that the decision will lead to a related one-time financial statement impact in the fourth quarter of 2020 between $9.0 million and $10.0 million.

It was a big week for announcing capital raises.

California-based cannabis company Harborside Inc. (CSE: HBOR), (OTCQX: HBORF) upsized its previously announced brokered private placement of units of the company at a price of C$2.55 per SVS Unit for gross proceeds of approximately C$27 million, representing an increase of C$7 million, due to excess demand.  The stock was lately selling near $2.22, which isn’t far from the company’s 52-week high of $2.40.

No sooner had Revive Therapeutics Ltd. (OTC: RVVTF) announced it had raised $10, then it stopped trading to say the deal was upsized to $20 million. Revive is a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders.

Auxly Cannabis Group Inc. (OTCQX: CBWTF) raised $15 million with a deal in which ATB Capital Markets Inc. and Cantor Fitzgerald Canada Corporation agreed to buy roughly 40 million Units of the Company at a price per unit of $0.37. 

Psychedelic publisher Delic Holdings Inc. has begun trading its shares on the OTC The process was through a reverse takeover of Molystar Resources. Many of the top executives at Delic are former High Times employees. Including  CEO Jackee Stang and  Director Kraig Fox was the former Chief Executive Officer and President of High Times

Cannabis software company Blackbird and payment processor company AeroPay announced a strategic partnership to bring cashless payments to cannabis businesses for online ordering. Blackbird was sold in November 2020 by its parent Tilt Holdings (OTC: TLLTF).  

And finally, Fyllo announced it has acquired DataOwl.


Video StaffVideo StaffJanuary 15, 2021

3min4540

On Monday, Governor Andrew Cuomo confidently stated that New York will legalize adult-use marijuana in his state of the state address.  Cuomo said in the speech. “This will raise revenue and will end the over-criminalization of this product that has left so many communities of color over-policed and over-incarcerated.”

Cresco Labs (CSE: CL) (OTCQX: CRLBF) is buying Florida-based Bluma Wellness Inc. (CSE: BWEL.U) (OTCQX: BMWLF) in an all-stock deal valued at $213 million. Bluma Wellness operates as “One Plant Florida” and has seven strategically located dispensaries with eight more locations under legal control with plans to open.

 KushCo announced financial results for its fiscal first-quarter ending November 30, 2020, with net revenue decreasing 23% from the prior-year period to $26.8 million. On a positive note, the net loss was trimmed to $4.5 million from $12.5 million in the prior-year period. 

Organigram (NASDAQ: OGI) delivered net revenue of $19.3 million for the first fiscal quarter of 2021 versus last year’s $25.2 million, which the company blamed on significantly lower wholesale revenue from licensed producers and a lower average selling price in the quarter. The company also delivered a first-quarter net loss of $34.3 million largely due to greater negative gross margin.

GW Pharma said it expects total net product sales to be approximately $148 million for the fourth quarter and approximately $526 million for the year ended December 31, 2020. 

And finally, According to data from Akerna (NASDAQ: KERN) the Christmas holiday period generated $427 million in cannabis sales. Typically, the Friday before Christmas is the biggest sales day of the holidays, but this year Christmas was on a Friday. So it was the Wednesday before Christmas that got the most significant bump in sales with a 76% increase in daily sales.


Video StaffVideo StaffJanuary 8, 2021

4min5080

Welcome to 2021. Of course this week has been crazy for our country as domestic terrorists incited by President Trump stormed the state capital. It’s really hard to stay focused but democracy prevailed and President-elect Biden’s win was officially certified. He will be inaugurated on January 20 and there will be a transition of power. Votes matter.

It was a fairly quiet week as cannabis companies are slowly waking after the holidays.

This week the battle heated up between Sundial Growers Inc. (Nasdaq: SNDL) and Zenabis Investments Ltd. (OTC: ZBSIF) as it appears that Sundial is looking to capture Zenabis by becoming its creditor. Sundial’s subsidiary owns $51.9 million of the debt of Zenabis Investments. Zenabis made a principal payment of $7.0 million on December 31, 2020 in accordance with the terms of the Senior Loan. Despite that payment, a notice of default was delivered to Zenabis, and is arguing that it isn’t in default. While Zenabis is fighting desperately to keep Sundial from taking over the company, it says it has started talks with another significant licensed cannabis producer but won’t say who it is.

The year started with a couple of new stocks.

HempFusion Wellness Inc. completed its (IPO) of 7 million shares at a price of $1.00 per share for gross proceeds of $7 million and 10,000,000 units of the company for gross proceeds of $10 million for a total of $17 million. The company will begin trading on the Toronto Stock Exchange with the symbol CBD.U.

Canadian-based Eden Empire Inc. (CSE: EDEN) began trading common shares at the open of the Canadian Securities Exchange on Monday, January 4, 2021 using the ticker symbol “EDEN”. The company said it plans to expand its business to cannabis cultivation, extraction, and processing‎ and become a fully integrated cannabis product company in various states throughout the US. Eden Empire said it will operate retail cannabis stores in Canada and the United States.

NeonMind Biosciences Inc. (CSE: NEON) common shares began trading on the Canadian Securities Exchange under the ticker symbol “NEON”. NeonMind is a psychedelic drug development company and the company recently completed its oversubscribed Initial Public Offering on December 30, 2020, for gross proceeds of $4.6 million.

Columbia Care Inc. (OTCQX: CCHWF) is buying California-based dispensary The Healing Center San Diego (THCSD) for approximately $15.0 million. The deal consists of $3.0 million in cash, $6.0 million in Columbia Care stock, and $6.0 million in seller promissory notes.

And finally Harborside Inc.’s (OTCQX: HBORF) Co-founder Steve DeAngelo is parting ways with the company as the company said it is eliminating the role of Chairman Emeritus, effective December 31, 2020. A longtime activist and strong advocate for the cannabis reform movement, Mr. DeAngelo co-founded Harborside in 2006 as a non-profit medical cannabis dispensary. Harborside was granted one of the first six medical cannabis licenses in the United States and was one of the first in the nation to support comprehensive cannabis education for seniors, veterans, and families with severely ill children.

 


Video StaffVideo StaffDecember 18, 2020

5min4990

The big news this week of course was the announced merger between Aphria and Tilray. Aphria will own over 60% of the combined entity and Irwin Simon, Aphria’s CEO will take on the same role at the new company. However, it will be known as Tilray and use the Tilray symbol. 

Mind Medicine (MindMed) Inc. (NEO: MMED) (OTCQB: MMEDF) raised C$80 million in an upsized bought deal. the company said the net proceeds will be used for investment in Project Lucy, Albert (the company’s digital medicine division), additional microdosing research and development, Project Layla (18-MC) as well as general working capital. The original raise was planned for $50 million. 

California-based cannabis company Indus Holdings, Inc. (CSE: INDS)(OTCQX: INDXF) has filed a C$100 million offering in Canada. While the September quarter was good,  Indus said its December quarter is “expecting lower harvest yields due to plant stress experienced from sealing greenhouses to prevent poor air quality from entering due to wildfires in California that occurred in late summer. The company also said it expects net revenue to drop to a range of $9.5 million to $11.5 million. 

Aurora Cannabis extended its credit facility and said it was closing the Aurora Sun facility resulting in the layoffs of 200 employees. Still the company has ~$450 million in cash on hand.

HEXO Corp. (NYSE: HEXO) reported first-quarter fiscal 2021 financial results with gross revenue of $41.3 million, a sequential increase of 14% and 114% from the prior-year period first-quarter. Total net revenue increased $2.3 million to $29.4 million from the fourth quarter due mostly to an 8% growth in adult-use cannabis sales and a 54% growth in the adult-use beverage category.

GrowGeneration Corp . (NASDAQ: GRWG) has just announced its seventh acquisition of the year with its purchase of California-based Grassroots Hydroponics. It’s a three-store chain of hydroponic garden centers in Southern California and the purchase price was not disclosed but the company did say it has annual revenues approaching $20 million

Michigan-based Gage Cannabis Co. has secured an investment of $20 million from funds advised by JW Asset Management as part of the company’s Regulation A, Tier 2 capital raise. The company said it is hoping to go public by the end of the first quarter of 2021.

Numinus Wellness Inc.  (TSXV: NUMI) has acquired Montreal-based psychedelic programming company  Mindspace Wellbeing. The deal has an approximate value of C$3.7 million.

Since the next two holidays fall on Fridays, this will be the final marijuana money for 2020. We wish everyone a Merry Christmas and a Happy New Year. 



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